SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
NUVEEN AMT-FREE MUNICIPAL INCOME FUND
(Name of Issuer)
VARIABLE RATE MUNIFUND TERM PREFERRED SHARES
(Title of Class of Securities)
670657881
(CUSIP Number)
James F. Powers
Senior Company Counsel
Wells Fargo & Company
301 South College Street, 30th Floor
Charlotte, NC 28202-6000
(704) 374-6611
With a copy to:
Patrick Quill
Ashurst LLP
7 Times Square, 19th Floor
New York, NY 10036
(212) 205-7000
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
December 10, 2013
(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box ¨.
* | The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. |
The information required in the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
SCHEDULE 13D
CUSIP No. 670657881 |
1. | Names of Reporting Persons
Wells Fargo & Company |
41-0449260 | ||||||
2. | Check the Appropriate Box if a member of a Group (see instructions)
a. ¨ b. x | |||||||
3. | SEC Use Only
|
|||||||
4. | Source of Funds (See Instructions):
WC |
|||||||
5. | Check Box if Disclosure of Legal Proceedings Is Required pursuant to Items 2(d) or 2(e).
x | |||||||
6. | Citizenship or Place of Organization
Delaware |
|||||||
Number of Shares Beneficially Owned by Each Reporting Person With:
|
7. | Sole Voting Power:
|
||||||
8. | Shared Voting Power:
1,510 |
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9. | Sole Dispositive Power:
|
|||||||
10. | Shared Dispositive Power:
1,510 |
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11. |
Aggregate Amount Beneficially Owned by Each Reporting Person:
1,510 | |||||||
12. | Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
| |||||||
13. | Percent of Class Represented by Amount in Row (11):
100% | |||||||
14. | Type of Reporting Person (See Instructions)
HC |
SCHEDULE 13D
CUSIP No. 670657881 |
1. | Names of Reporting Persons
Wells Fargo Municipal Capital Strategies, LLC |
45-2541449 | ||||||
2. | Check the Appropriate Box if a member of a Group (see instructions)
a. ¨ b. x | |||||||
3. | SEC Use Only
|
|||||||
4. | Source of Funds (See Instructions):
WC |
|||||||
5. | Check Box if Disclosure of Legal Proceedings Is Required pursuant to Items 2(d) or 2(e).
x | |||||||
6. | Citizenship or Place of Organization
Delaware |
|||||||
Number of Shares Beneficially Owned by Each Reporting Person With:
|
7. | Sole Voting Power:
|
||||||
8. | Shared Voting Power:
1,510 |
|||||||
9. | Sole Dispositive Power:
|
|||||||
10. | Shared Dispositive Power:
1,510 |
|||||||
11. |
Aggregate Amount Beneficially Owned by Each Reporting Person:
1,510 | |||||||
12. | Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
| |||||||
13. | Percent of Class Represented by Amount in Row (11):
100% | |||||||
14. | Type of Reporting Person (See Instructions)
OO |
Item 1 | Security and Issuer |
This Statement on Schedule 13D (this Statement) relates to the purchase of variable rate munifund term preferred shares (VMTP Shares) of Nuveen AMT-Free Municipal Income Fund (the Issuer or the Company). This Statement is being filed by the Reporting Persons (as defined below) as a result of the purchase of VMTP Shares by Capital Strategies (as defined below). The Issuers principal executive offices are located at 333 West Wacker Drive, Chicago, IL 60606.
Item 2 | Identity and Background |
This Statement is being filed on behalf of each of the following persons (collectively, the Reporting Persons):
i. Wells Fargo & Company (Wells Fargo)
ii. Wells Fargo Municipal Capital Strategies, LLC (Capital Strategies)
This Statement relates to the VMTP Shares that were purchased for the account of Capital Strategies.
The address of the principal business office of Wells Fargo is:
420 Montgomery Street
San Francisco, CA 94104
The address of the principal business office of Capital Strategies is:
375 Park Avenue
New York, NY 10152
Wells Fargo and its subsidiaries provide banking, insurance, trust and investments, mortgage banking, investment banking, retail banking, brokerage services, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the internet and distribution channels to individuals, businesses and institutions across North America and internationally. The principal business of Capital Strategies is to make investments and provide loans to clients.
Information concerning each executive officer, director and controlling person (the Listed Persons) of the Reporting Persons is listed on Schedule I attached hereto, and is incorporated by reference herein. To the knowledge of the Reporting Persons, all of the Listed Persons are citizens of the United States, other than as otherwise specified on Schedule I hereto.
Other than as set forth on Schedule II, during the last five years, none of the Reporting Persons, and to the best knowledge of the Reporting Persons, none of the Listed Persons, have been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction as a result of which such person was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws, or finding any violation with respect to such laws.
Item 3 | Source and Amount of Funds or Other Consideration |
The aggregate amount of funds used by the Reporting Persons to purchase the securities reported herein was approximately $151,000,000. The source of funds was the working capital of the Reporting Persons.
The Reporting Persons declare that neither the filing of this Statement nor anything herein shall be construed as an admission that such person is, for the purposes of Section 13(d) of the Exchange Act or any other purpose, (i) acting (or has agreed or is agreeing to act together with any other person) as a partnership, limited partnership, syndicate, or other group for the purpose of acquiring, holding or disposing of securities of the Company or otherwise with respect to the Company or any securities of the Company or (ii) a member of any group with respect to the Company or any securities of the Company.
Item 4 | Purpose of the Transaction |
Capital Strategies has purchased the VMTP Shares for investment purposes. Capital Strategies acquired the VMTP Shares directly from the Company pursuant to a Purchase Agreement, dated December 10, 2013, between the Company and Capital Strategies (the Purchase Agreement) on their initial issuance for a purchase price of $151,000,000.
The Reporting Persons have not acquired the subject securities with any purpose, or with the effect of, changing or influencing control of the issuer, or in connection with or as a participant in any transaction having that purpose or effect.
Item 5 | Interest in Securities of the Issuer |
(a) - (b) The responses of the Reporting Persons to Rows (7) through (11) of the cover pages of this Statement are incorporated herein by reference.
(c) The responses of the Reporting Persons in Item 3 and Item 4 are incorporated herein by reference.
(d) No other person is known by the Reporting Persons to have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, VMTP Shares that may be deemed to be beneficially owned by the Reporting Persons.
(e) Not applicable.
Item 6 | Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer |
The responses of the Reporting Persons to Item 4 are incorporated herein by reference. With respect to the VMTP Shares owned by Capital Strategies, on December 10, 2013, Capital Strategies assigned certain preferred class voting rights on the VMTP Shares to a voting trust (the Voting Trust) created pursuant to the Voting Trust Agreement, dated December 10, 2013 among Capital Strategies, Lord Securities Corporation, as voting trustee (the Voting Trustee) and Institutional Shareholder Services Inc. (the Voting Consultant). Voting and consent rights on the VMTP Shares not assigned to the Voting Trust have been retained by Capital Strategies. The Voting Trust provides that with respect to voting or consent matters relating to the voting rights assigned to the Voting Trust, the Voting Consultant analyzes such voting or consent matters and makes a recommendation to the Voting Trustee on voting or consenting. The Voting Trustee is obligated to follow any such recommendations of the Voting Consultant when providing a vote or consent. Capital Strategies has the right to cause the Company to register the VMTP Shares pursuant to a Registration Rights Agreement, dated December 10, 2013 between the Company and Capital Strategies.
Item 7 | Material to be Filed as Exhibits |
Exhibit | Description of Exhibit | |
99.1 | Joint Filing Agreement | |
99.2 | Limited Power of Attorney | |
99.3 | Voting Trust Agreement | |
99.4 | Registration Rights Agreement | |
99.5 | Purchase Agreement |
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
Date: December 19, 2013
WELLS FARGO & COMPANY | ||
By: |
/s/ Jane E. Washington | |
Name: |
Jane E. Washington | |
Title: |
Designated Signer | |
WELLS FARGO MUNICIPAL CAPITAL STRATEGIES, LLC | ||
By: |
/s/ Adam Joseph | |
Name: |
Adam Joseph | |
Title: |
President |
LIST OF EXHIBITS
Exhibit | Description of Exhibit | |
99.1 | Joint Filing Agreement | |
99.2 | Limited Power of Attorney | |
99.3 | Voting Trust Agreement | |
99.4 | Registration Rights Agreement | |
99.5 | Purchase Agreement |
SCHEDULE I
EXECUTIVE OFFICERS AND DIRECTORS OF
REPORTING PERSONS
The following sets forth the name and present principal occupation of each executive officer and director of Wells Fargo & Company. The business address of each of the executive officers and directors of Wells Fargo & Company is 420 Montgomery Street, San Francisco, CA 94104.
Name |
Position with Wells Fargo & Company |
Principal Occupation | ||
John G. Stumpf | Chief Executive Officer; Director | Chief Executive Officer of Wells Fargo & Company | ||
Patricia R. Callahan | Chief Administrative Officer | Chief Administrative Officer of Wells Fargo & Company | ||
David M. Carroll | Head of Wealth, Brokerage and Retirement | Head of Wealth, Brokerage and Retirement of Wells Fargo & Company | ||
Michael J. Heid | Head of Home Lending | Head of Home Lending of Wells Fargo & Company | ||
David A. Hoyt | Head of Wholesale Banking | Head of Wholesale Banking of Wells Fargo & Company | ||
Richard D. Levy | Controller | Controller of Wells Fargo & Company | ||
Michael J. Loughlin | Chief Risk Officer | Chief Risk Officer of Wells Fargo & Company | ||
Avid Modjtabai | Head of Consumer Lending | Head of Consumer Lending of Wells Fargo & Company | ||
Kevin A. Rhein | Chief Information Officer | Chief Information Officer of Wells Fargo & Company | ||
Timothy J. Sloan | Chief Financial Officer | Chief Financial Officer |
James Strother | General Counsel | General Counsel of Wells Fargo & Company | ||
Carrie L. Tolstedt | Head of Community Banking | Head of Community Banking of Wells Fargo & Company | ||
John D. Baker II | Director | Executive Chairman of Patriot Transportation Holding, Inc. | ||
Elaine L. Chao | Director | Distinguished Fellow The Heritage Foundation Washington, D.C. | ||
John S. Chen | Director | Executive Chairman, Interim CEO of BlackBerry Ltd | ||
Lloyd H. Dean | Director | President, CEO of Dignity Health | ||
Susan E. Engel | Director | Retired Chief Executive Officer of Portero, Inc. | ||
Enrique Hernandez Jr. | Director | Chairman, CEO of Inter-Con Security Systems, Inc. | ||
Donald M. James | Director | Chairman, CEO of Vulcan Materials Company | ||
Cynthia H. Milligan | Director | Dean Emeritus, College of Business Administration at University of Nebraska | ||
Federico F. Peña | Director | Senior Advisor of Vestar Capital Partners | ||
James H. Quigley | Director | Retired Partner of Deloitte | ||
Howard V. Richardson | Director | Retired Partner of PricewaterhouseCoopers | ||
Judith M. Runstad | Director | Of Counsel at Foster Pepper PLLC | ||
Stephen W. Sanger | Director | Retired Chairman, CEO of General Mills, Inc. | ||
Susan G. Swenson | Director | Retired President, CEO of Sage Software North America |
The following sets forth the name and present principal occupation of each executive officer and director of Wells Fargo Municipal Capital Strategies, LLC. The business address of each of the executive officers and directors of Wells Fargo Municipal Capital Strategies, LLC is 375 Park Avenue New York, NY 10152.
Name |
Position with Wells Fargo Municipal Capital Strategies, LLC |
Principal Occupation | ||
Joann Bertges | Executive Vice President; Manager | Executive Vice President of Wells Fargo Bank, NA | ||
Kristina Eng | Vice President | Director at Wells Fargo Bank, NA | ||
Daniel George | Senior Vice President | Managing Director at Wells Fargo Bank, NA | ||
Michael Hanna | Executive Vice President; Manager | Executive Vice President of Wells Fargo Bank, NA | ||
Adam Joseph | President | Managing Director at Wells Fargo Bank, NA (Head of Public Finance Capital Strategies) | ||
Jeffrey Ruehle | Executive Vice President; Manager | Executive Vice President of Wells Fargo Bank, NA | ||
Phillip Smith | Executive Vice President; Manager | Head of Municipal Products and Government and Institutional Banking | ||
Lisa DeCarlo | Manager | Managing Director at Wells Fargo Bank, NA | ||
Peter Hill | Manager | Managing Director at Wells Fargo Bank, NA | ||
Humbert Nelli | Manager | Managing Director at Wells Fargo Bank, NA |
Schedule II
AUCTION RATE SECURITIES (LEGACY WACHOVIA) Beginning in August 2008, Wachovia Securities, LLC, n/k/a Wells Fargo Advisors LLC (Wachovia Securities) and Wachovia Capital Markets, LLC, n/k/a Wells Fargo Securities LLC (collectively with Wachovia Securities, the Wachovia Securities Affiliates) entered into settlements agreements with state regulatory agencies, including the Secretary of State for the State of Missouri (as the lead state in the North American Securities Administrators Association task force investigating the marketing and sale of auction rate securities), relating to investigations of sales practice and other issues related to the sales of auction rate securities (ARS). Wachovia Securities also announced a settlement in principle with the Securities and Exchange Commission (SEC) of its similar investigation. Without admitting or denying liability, the agreements required that the Wachovia Securities Affiliates purchase certain ARS sold to customers in accounts at the Wachovia Securities Affiliates, reimburse investors who sold ARS purchased at the Wachovia Securities Affiliates for less than par, provide liquidity loans to customers at no net interest until the ARS are repurchased, offer to participate in special arbitration procedures with customers who claim consequential damages from the lack of liquidity in ARS and refund refinancing fees to certain municipal issuers who issued ARS and later refinanced those securities through the Wachovia Securities Affiliates. Without admitting or denying liability, the Wachovia Securities Affiliates also agreed to pay a total fine of $50 million to the state regulatory agencies and agreed to the entry of consent orders and Wachovia Securities agreed to entry of an injunction by the SEC.
AUCTION RATE SECURITIES (LEGACY WELLS FARGO) Beginning in November 2009, three broker-dealer subsidiaries (the Broker-Dealer Subsidiaries), Wells Fargo Investments, LLC, Wells Fargo Securities, LLC (as successor by merger to Wells Fargo Brokerage Services, LLC), and Wells Fargo Institutional Securities, LLC, of Wells Fargo & Company (Wells Fargo) entered into settlement agreements with state securities regulators regarding the Broker-Dealers Subsidiaries participation in the auction rate securities (ARS) market. Under the agreements, the Broker-Dealer Subsidiaries agreed to purchase Auction Rate Securities (ARS) from eligible investors that bought ARS through the Broker-Dealer Subsidiaries prior to February 13, 2008 and to cease and desist from certain activities. Without admitting or denying liability, Wells Fargo Investments, LLC, agreed to pay $1.9 million in fines and penalties and the Broker-Dealer Subsidiaries agreed to reimburse investigative expenses.
ULTRASHORT OPPORTUNITIES FUND INVESTIGATION On June 8, 2009, the SEC and the Massachusetts Securities Division entered administrative orders against two subsidiaries of Wells Fargo & Company, Evergreen Investment Management Company LLC and Evergreen Investment Services Inc., with respect to certain alleged conduct involving the Evergreen Ultrashort Opportunities Fund (the Fund). The allegations included the misvaluation of certain holdings in the Fund thereby affecting the Funds net asset value (NAV), and improper disclosure of information concerning the Fund. Without admitting or denying the allegations, the firms agreed to a censure and cease and desist order from both agencies, a payment of $33 million for investors, disgorgement of $2.86 million plus prejudgment interest to the SEC, a $4 million penalty to the SEC, and a $1 million penalty to the Massachusetts Securities Division.
MUNICIPAL DERIVATIVES BID PRACTICES INVESTIGATION The Department of Justice (DOJ) and the SEC, beginning in November 2006, requested information from a number of financial institutions, including Wachovia Bank, N.A.s (n/k/a Wells Fargo Bank, NA) municipal derivatives group, with regard to competitive bid practices in the municipal derivative markets. Other state and federal agencies subsequently also began investigations of the same practices. On December 8, 2011, a global resolution of the Wachovia Bank investigations was announced by DOJ, the Internal Revenue Service, the SEC, the Office of the Comptroller of the Currency and a group of State Attorneys General. The investigations were settled with Wachovia Bank agreeing to pay a total of approximately $148 million in penalties and remediation to the various agencies.
ASSET-BACKED COMMERCIAL PAPER INVESTIGATION On August 14, 2012, the SEC entered a settled administrative order against Wells Fargo Brokerage Services LLC (n/k/a Wells Fargo Securities, LLC) and a former sales representative concerning alleged sales practice and suitability issues related to certain 2007 sales of three asset-backed commercial paper products to institutional and municipal purchasers. Without admitting or denying the allegations, the firm agreed to a censure, a cease-and-desist order, disgorgement of $65,000 plus prejudgment interest, and a civil penalty of $6.5 million.
ABS CDO INVESTIGATION In April of 2011, Wells Fargo Securities, LLC (f/k/a Wachovia Capital Markets, LLC) entered into a settlement with the SEC in which the firm paid $11.2 million in disgorgement and penalties and agreed to cease and desist from violating Sections 17(a)(2) and (3) of the Securities Act, in order to resolve issues arising from an investigation into Wachovia Capital Markets, LLCs ABS CDO underwriting, marketing and pricing practices.
Exhibit 99.1
JOINT FILING AGREEMENT
This Statement is filed by Wells Fargo & Company on its own behalf and on behalf of Wells Fargo Municipal Capital Strategies, LLC. Aggregate beneficial ownership reported by Wells Fargo & Company under Item 11 on page 2 is on a consolidated basis and includes any beneficial ownership separately reported herein by Wells Fargo Municipal Capital Strategies, LLC.
Pursuant to and in accordance with the Securities Exchange Act of 1934, as amended (the Exchange Act), and the rules and regulations thereunder, each party hereto hereby agrees that the Statement to which this agreement is attached shall be filed by Wells Fargo & Company on its own behalf and on behalf of Wells Fargo Municipal Capital Strategies, LLC (including any amendment, restatement, supplement, and/or exhibit thereto) with the Securities and Exchange Commission (and, if such security is registered on a national securities exchange, also with the exchange), and further agrees to the filing, furnishing, and/or incorporation by reference of this agreement as an exhibit thereto. This agreement shall remain in full force and effect until revoked by any party hereto in a signed writing provided to each other party hereto, and then only with respect to such revoking party.
IN WITNESS WHEREOF, each party hereto, being duly authorized, has caused this agreement to be executed and effective as of the date set forth below.
Date: December 19, 2013 | WELLS FARGO & COMPANY | |||||
By: | /s/ Jane E. Washington | |||||
Name: Jane E. Washington | ||||||
Title: Designated Signer | ||||||
WELLS FARGO MUNICIPAL CAPITAL STRATEGIES, LLC | ||||||
By: | /s/ Adam Joseph | |||||
Name: Adam Joseph | ||||||
Title: President |
Exhibit 99.2
LIMITED POWER OF ATTORNEY
WELLS FARGO & COMPANY, a Delaware corporation (the Corporation), does hereby irrevocably make, constitute, and appoint Jane E. Washington as an attorney-in-fact for the Corporation acting for the Corporation and in the Corporations name, place and stead, for the Corporations use and benefit, to bind the Corporation by her execution of those agreements, forms and documents related specifically to Section 13 of the Securities Exchange Act of 1934. Any documents executed by an attorney-in-fact in accordance with this Limited Power of Attorney shall fully bind and commit the Corporation and all other parties to such documents may rely upon the execution thereof by the attorney-in fact as if executed by the Corporation and as the true and lawful act of the Corporation.
This Limited Power of Attorney shall automatically terminate as to the authority of Jane E. Washington upon such attorney-in-facts resignation or termination from or transfer out of the Corporation; however; any such termination shall have no impact on any document or instrument connected therewith executed by any attorney-in-fact named above for the Corporation prior to such termination.
IN WITNESS WHEREOF, this Power of Attorney has been executed and delivered by the Corporation to each Attorney-in-Fact on this 18 day of December, 2013.
WELLS FARGO & COMPANY | ||
By: | /s/ Anthony R. Augliera | |
Name: Anthony R. Augliera | ||
Title: Secretary |
(CORPORATE SEAL)
Exhibit 99.3
VOTING TRUST AGREEMENT
THIS VOTING TRUST AGREEMENT (this Agreement) is made and entered into effective for all purposes and in all respects as of December 10, 2013 by and among Lord Securities Corporation, as trustee (the Trustee or any successor thereto), Wells Fargo Municipal Capital Strategies, LLC, a wholly owned subsidiary of Wells Fargo Bank, National Association, organized and existing under the laws of Delaware, including its successors and assigns by operation of law (Wells or the Purchaser) and Institutional Shareholder Services Inc. (the Voting Consultant or any successor thereto).
WHEREAS, the Purchaser is the legal and Beneficial Owner of Variable Rate Muni Term Preferred Shares (VMTP Shares) of Nuveen AMT-Free Municipal Income Fund (the Fund) pursuant to the terms of the purchase agreement, dated as of December 10, 2013, between the Purchaser and the Fund (the Purchase Agreement);
WHEREAS, the Purchaser desires to transfer and assign irrevocably to the Trustee, and the Trustee desires to accept such transfer and assignment of, the right to vote and consent for the Purchaser in connection with all of its voting and consent rights and responsibilities, as set forth in Section 1 below, as a Beneficial Owner of (i) VMTP Shares acquired by the Purchaser pursuant to the Purchase Agreement (such VMTP Shares, when owned by the Purchaser, the Subject Shares) and (ii) any additional shares of VMTP Shares or capital stock of any class or series of the Fund having voting powers of which an Affiliate of Wells is the Beneficial Owner or that the Purchaser becomes the Beneficial Owner of during the term of this Agreement (any such additional shares of capital stock of the Fund having voting powers being Additional Shares and when so acquired will become a part of the Subject Shares covered by this Agreement);
WHEREAS, the Voting Consultant shall analyze any matters requiring the owner of Subject Shares, to vote or consent in its capacity as an equity holder (whether at a meeting or via a consent solicitation), and shall provide a recommendation to the Trustee of how to vote or consent with respect to such voting or consent matters;
WHEREAS, the Voting Consultant and the Trustee are Independent of the Purchaser; and
WHEREAS, the parties hereto desire to set forth in writing their understandings and agreements.
NOW, THEREFORE, in consideration of the foregoing, of the mutual promises hereinafter set forth and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending legally and equitably to be bound, hereby agree as follows:
1. Creation of Trust
The Purchaser hereby irrevocably transfers and assigns to the Trustee, and the Trustee hereby accepts the transfer and assignment of, the right to vote and consent for the Purchaser in connection with all of its voting and consent rights and responsibilities as Beneficial Owner of the Subject Shares with respect to the following matters (collectively, the Voting Matters):
(a) the election of the two members of the Board of Trustees for which holders of VMTP Shares are exclusively entitled to vote under Section 18(a)(2)(C) of the Investment Company Act of 1940, as amended (the 1940 Act) and all other rights given to holders of VMTP Shares with respect to the election of the Board of Trustees of the Fund;
(b) the conversion of the Fund from a closed-end management investment company to an open-end fund, or to change the Funds classification from diversified to non-diversified, each pursuant to Section 13(a)(1) of the 1940 Act (any of the foregoing, a Conversion), together with any additional voting or consent right under the Statement of Preferences and the Purchase Agreement that relates solely to any action or amendment to the Statement of Preferences that is so closely related to the Conversion that it would be impossible to give effect to the Conversion without implicating such additional voting or consent right; provided that any such additional voting or consent right shall not include any voting or consent right related to satisfying any additional term, condition or agreement which the Conversion is conditioned upon or subject to;
(c) the deviation from a policy in respect of concentration of investments in any particular industry or group of industries as recited in the Funds registration statement, pursuant to Section 13(a)(3) of the 1940 Act (a Deviation), together with any additional voting or consent right under the Statement of Preferences and the Purchase Agreement that relates solely to any action or amendment to the Statement of Preferences that is so closely related to the Deviation that it would be impossible to give effect to the Deviation without implicating such additional voting or consent right; provided that any such additional voting or consent right shall not include any voting or consent right related to satisfying any additional term, condition or agreement which the Deviation is conditioned upon or subject to; and
(d) borrowing money, issuing senior securities, underwriting securities issued by other Persons, purchasing or selling real estate or commodities or making loans to other Persons other than in accordance with the recitals of policy with respect thereto in the Funds registration statement, pursuant to Section 13(a)(2) of the 1940 Act (and of the foregoing, a Policy Change), together with any additional voting or consent right under the Statement of Preferences and the Purchase Agreement that relates solely to any action or amendment to the Statement of Preferences that is so closely related to the Policy Change that it would be impossible to give effect to the Policy Change without implicating such additional voting or consent right; provided that any such additional voting or consent right shall not include any voting or consent right related to satisfying any additional term, condition or agreement which the Policy Change is conditioned upon or subject to.
In order to effect the transfer of voting and consent rights with respect to the Voting Matters, Wells hereby irrevocably appoints and constitutes, and will cause each of its Affiliates who are Beneficial Owners of any Subject Shares to irrevocably appoint and constitute, the Trustee as its attorney-in-fact and agrees, and agrees to cause each of such Affiliates, to grant the Trustee one or more irrevocable proxies with respect to the Voting Matters and further agrees to renew any such proxies that may lapse by their terms while the Subject Shares are still subject to the Voting Trust Agreement.
Wells will retain all other voting rights under the Related Documents and Wells, its Affiliates or designee will also be the registered owner of the VMTP Shares. If any dividend or other distribution in respect of the Subject Shares is paid, such dividend or distribution will be paid directly to Wells or its Affiliate or designee owning such Subject Shares; provided, that, any Additional Shares will become part of the Subject Shares covered by this Agreement.
2. Definitions
Affiliate means, with respect to a Person, (i) any other Person who, directly or indirectly, is in control of, or controlled by, or is under common control with, such Person or (ii) any other Person who is a director, officer, employee or general partner (a) of such Person, (b) of any majority-owned subsidiary or parent company of such Person or (c) of any Person described in clause (i) above. For the purposes of this definition, control of a Person shall mean the power, direct or indirect, (x) to vote more than 25% of the securities having ordinary voting power for the election of directors of such Person or (y) to direct or cause the direction of the management and policies of such Person whether by contract or otherwise. For the purpose of this Agreement, the term Affiliate shall include a tender option bond trust of which the Purchaser and/or one or more of its Affiliates collectively own a majority of the residual interests.
Beneficial Owner means, any Person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares (i) voting power which includes the power to vote, or to direct the voting of, securities and/or (ii) investment power which includes the power to dispose, or to direct the disposition of, securities.
Board of Trustees means the Board of Trustees of the Fund or any duly authorized committee thereof.
Excluded Transfer means any transfer of VMTP Shares (1) to a tender option bond trust in which the Purchaser and/or its Affiliates collectively own all of the residual interests, (2) in connection with a distribution in-kind to the holders of securities of or receipts representing an ownership interest in any tender option bond trust in which the Purchaser and/or its Affiliates collectively own all of the residual interests, (3) in connection with a repurchase financing transaction or (4) relating to a collateral pledge arrangement.
Independent means, as to any Person, any other Person who (i) does not have and is not committed to acquire any material direct or any material indirect financial interest in such Person, (ii) is not connected with such Person as an officer, employee, promoter, underwriter, partner, director or Person performing similar functions and (iii) is not otherwise subject to the undue influence or control of such other Person. For purposes of this definition, no Person will fail to be Independent solely because such Person acts as a voting consultant or trustee in respect of property owned by another Person or its Affiliates pursuant to this Agreement or any other agreement. With respect to item (i) above, material direct or material indirect financial interest means, (1) as to any Person, owning directly or indirectly (as principal for such Persons own account) at least 5% of any class of the outstanding equity or debt securities issued by any other Person or (2) with respect to a Person (the Investor) owning directly or indirectly (as principal for the Investors own account) outstanding equity or debt securities of any other Person in an amount at least equal to 5% of the total consolidated shareholders equity of the Investor (measured in accordance with U.S. generally accepted accounting principles).
Person means and includes an individual, a partnership, a corporation, a trust, an unincorporated association, a joint venture or other entity or a government or any agency or political subdivision thereof.
Statement of Preferences means the Funds Statement Establishing and Fixing the Rights and Preferences of the Variable Rate MuniFund Term Preferred Shares, as amended from time to time in accordance with the provisions thereof.
Each capitalized term used herein and not otherwise defined herein shall have the meaning provided therefor (including by incorporation by reference) in the Statement of Preferences.
3. Right to Transfer
The Purchaser shall have the right to sell or otherwise transfer the Subject Shares at any time in its sole discretion, subject to the transfer restrictions contained in Section 2.1 of the Purchase Agreement. Upon the transfer of the Subject Shares by the Purchaser to any third party (other than a transfer to an Affiliate of the Purchaser in which case such Subject Shares shall remain subject to this Agreement) such Subject Shares shall no longer be subject to this Agreement; provided, however, in connection with an Excluded Transfer:
(a) of the type specified in clause (1) of the definition of Excluded Transfer, the Subject Shares shall remain subject to this Agreement until such time as the Fund, upon the request of the Purchaser, enters into a voting arrangement satisfying Section 12(d)(1)(E)(iii) of the 1940 Act;
(b) of the type specified in clauses (3) or (4) of the definition of Excluded Transfer, to the extent the Purchaser retains the right to vote or direct voting in connection with such transactions, the Subject Shares shall remain subject to this Agreement until such time as there is a default by the Purchaser under such repurchase transaction or collateral pledge arrangement; and
(c) of the type specified in clauses (3) or (4) of the definition of Excluded Transfer, to the extent the Purchaser does not retain the right to vote or direct voting of such Subject Shares in such transactions, such transactions do not permit the removal of the Subject Shares rights transferred to the Voting Trust pursuant to this Agreement within the first 60 days of closing of such transferee becoming the Beneficial Owner of such Subject Shares unless there is a default by the Purchaser under such repurchase transaction or collateral pledge arrangement.
4. Trustee
(a) Rights And Powers Of Trustee. With respect to Subject Shares where the Purchaser is the Beneficial Owner, the Trustee shall, in person or by nominees, agents, attorneys-in-fact, or proxies, have the right and the obligation to exercise its discretion with respect to all Voting Matters requiring holders of VMTP Shares to vote or consent with respect to and including voting or consenting to any corporate or shareholder action of any kind whatsoever, subject to the terms of this Agreement. The Trustee shall be obligated to vote any Voting Matter in accordance with the provisions of this Agreement.
(b) Liability Of Trustee. In exercising the rights and powers of the Trustee, the Trustee will exercise any rights and powers in the Trustees best judgment; provided, however, the Trustee shall not be liable for any action taken by such Trustee or the Trustees agent, except for liability arising from the Trustees bad faith, wilful misconduct or gross negligence. The Trustee shall not be required to give any bond or other security for the discharge of the Trustees duties.
(c) Resignation of and Successor Trustee. The Trustee may at any time resign the Trustees position as Trustee by delivering a resignation in writing to the Purchaser and the Voting Consultant to become effective 90 days after the date of such delivery, but in any event such notice shall not become effective prior to the acceptance of a successor Trustee. The Trustee shall nominate a successor Trustee acceptable to the Purchaser, who shall have all rights, powers and obligations of the resigning Trustee as set forth in this Agreement, and all rights, powers and obligations of the resigning Trustee hereunder shall immediately terminate upon the acceptance by the successor Trustee of such nomination and the execution of this Agreement by the successor Trustee as Trustee hereunder. No such resignation shall become effective until such time as a successor Trustee has been appointed and such appointment has been accepted. The fact that any Trustee has resigned such Trustees position as a Trustee shall not act, or be construed to act, as a release of any Subject Shares from the terms and provisions of this Agreement.
(d) Removal. The Trustee may be removed by the Purchaser upon 30 days prior written notice upon either (i) a material breach by the Trustee of its obligations hereunder or (ii) any action or inaction of the Trustee which constitutes bad faith, negligence or wilful misconduct in the performance of its obligations hereunder.
(e) Independent. The Trustee represents that it is Independent of Wells.
5. Voting Consultant
(a) Liability Of Voting Consultant. In providing its voting recommendations on Voting Matters hereunder, the Voting Consultant will provide such recommendations in the Voting Consultants best judgment with respect to the Voting Matters for the VMTP Shares; provided, however, the Voting Consultant shall not be liable for any action taken by such Voting Consultant or the Voting Consultants agent, except for liability arising from the Voting Consultants bad faith, wilful misconduct or gross negligence. For the avoidance of doubt, the Voting Consultants maximum liability shall be limited to an amount not to exceed the total amounts of the fees the Voting Consultant receives from the Purchaser under the Master Agreement in any one year period for any and all claims made within that one year period; provided that if a breach of Section 5(e) is determined to have occurred, the sole remedy shall be the immediate removal of the Voting Consultant by the Purchaser in the Purchasers sole discretion and no monetary damages shall be due or payable. In addition, the Voting Consultant shall not be liable for any action taken by the Trustee contrary to the recommendations provided by the Voting Consultant.
(b) Resignation of and Successor Voting Consultant. The Voting Consultant may at any time resign the Voting Consultants position as Voting Consultant by delivering a resignation in writing to the Purchaser and to the Trustee to become effective 90 days after the date of such delivery. Upon receipt of the Voting Consultants written resignation, the Purchaser shall use commercially reasonable efforts to appoint a successor Voting Consultant which has been consented to by the Trustee, such consent not to be unreasonably withheld. If the Voting Consultant shall resign but a successor Voting Consultant has not assumed all of the Voting Consultants duties and obligations within 90 days of such resignation, the Voting Consultant may petition any court of competent jurisdiction for the appointment of a successor Voting Consultant. No such resignation shall become effective until such time as a successor Voting Consultant has been appointed and such appointment has been accepted.
(c) Removal. The Voting Consultant may be removed by the Purchaser upon 30 days prior written notice upon either (i) a material breach by the Voting Consultant of its obligations hereunder or (ii) any action or inaction of the Voting Consultant which constitutes bad faith, gross negligence or wilful misconduct in the performance of its obligations hereunder.
(d) Contract. A separate contract, that certain Master Services Agreement No. (109282) by and between the Voting Consultant and the Purchaser, as may be amended from time to time with the prior written consent of the parties thereto (the Master Agreement), sets forth additional details, including fees, pursuant to which the Voting Consultant is providing the services contemplated hereunder.
(e) Independent. The Voting Consultant represents that it is Independent of Wells; provided, however, if the Voting Consultant becomes aware that the Voting Consultant is no longer Independent of the Purchaser, the Voting Consultant shall promptly, and in no event later than two Business Days after becoming aware, notify the Purchaser and shall abstain from making voting recommendations during any period of time during which the Voting Consultant is not Independent of the Purchaser. If the Voting Consultant notifies the Purchaser that it is no longer Independent of the Purchaser, the Purchaser shall use commercially reasonable efforts to identify and appoint a replacement voting consultant.
6. Amount of Subject Shares Notification
On any and each date that the Purchaser sells or otherwise transfers any Subject Shares to another Beneficial Owner, the Purchaser shall promptly notify the Trustee of such occurrence and the number of VMTP Shares that the Purchaser then owns.
7. Voting Communications
The Purchaser shall notify the Trustee and the Voting Consultant as soon as possible, and in any event, not later than two Business Days after receipt of notice that a vote of the holders of VMTP Shares has been requested or permitted on any Voting Matter and the Purchaser shall, within such same time frame, forward any information sent to the Purchaser in connection with such vote to the Trustee and the Voting Consultant by Electronic Means.
The Voting Consultant shall analyze and provide a voting or consent recommendation to the Trustee with respect to each Voting Matter in respect of the Subject Shares. The Trustee is obligated to act in accordance with the voting or consent recommendation made by the Voting Consultant in its voting or consent direction to the Purchaser. In all Voting Matters, the Trustee shall use the proxies granted to it by the Purchaser to vote or consent the Subject Shares in accordance with the voting or consent recommendation made by the Voting Consultant and the Purchaser shall not exercise any voting or consent rights in such matters.
If the Voting Consultant fails to provide a voting or consent recommendation to the Trustee on or prior to the deadline for submission of such vote or consent, the Trustee shall not provide a vote or consent on behalf of the Purchaser on such deadline and shall provide notice of the failure to receive a voting or consent recommendation to the Purchaser and the Voting Consultant.
8. Indemnification
(a) Of the Trustee and the Voting Consultant. The Purchaser shall indemnify and hold the Trustee and the Voting Consultant and such Trustees and such Voting Consultants agents harmless from and against any and all liabilities, obligations, losses, damages, penalties, taxes, claims, actions, suits, reasonable costs, reasonable expenses or disbursements (including reasonable legal fees and expenses) of any kind and nature whatsoever in connection with or growing out of (i) with respect to the Trustee, the administration of the voting trust created by this Agreement or (ii) with respect to the Trustee and the Voting Consultant, the exercise of any powers or the performance of any duties by the Trustee or the Voting Consultant as herein provided or contemplated, including, without limitation, any action taken or omitted to be taken, except, with respect to the Trustee and the Voting Consultant separately, such as may arise from the bad faith, willful misconduct or gross negligence of the Trustee or the Voting Consultant, respectively. In no event shall the Purchaser be liable for special, incidental, indirect or consequential damages.
(b) Of the Purchaser and the Voting Consultant. The Trustee shall indemnify and hold the Purchaser and the Voting Consultant and the Purchasers and the Voting Consultants agents harmless from and against any and all liabilities, obligations, losses, damages, penalties, taxes, claims, actions, suits, reasonable costs, reasonable expenses or disbursements (including reasonable legal fees and expenses) of any kind and nature whatsoever in connection with or growing out of (i) with respect to the Purchaser, the administration of the voting trust created by this Agreement or (ii) with respect to the Purchaser and the Voting Consultant, the exercise of any powers or the performance of any duties by the Purchaser or the Voting Consultant as herein provided or contemplated, including, without limitation, any action taken or omitted to be taken, except, with respect to the Purchaser and the Voting Consultant separately, such as may arise from the wilful misconduct or gross negligence of the Purchaser or the Voting Consultant, respectively. In no event shall the Trustee be liable for special, incidental, indirect or consequential damages.
(c) Of the Purchaser and the Trustee. The Voting Consultant shall indemnify and hold the Purchaser and the Trustee and the Purchasers and the Trustees agents harmless from and against any and all liabilities, obligations, losses, damages, penalties, taxes, claims, actions, suits, reasonable costs, reasonable expenses or disbursements (including reasonable legal fees and expenses) of any kind and nature whatsoever which may be imposed, incurred or asserted against the Purchaser or the Trustee in connection with the wilful misconduct or gross negligence of the Voting Consultant in connection with the exercise of any powers or the performance of any duties by the Voting Consultant as herein provided or contemplated, including, without limitation, any action taken or omitted to be taken, except, with respect to the Purchaser and the Trustee separately, such as may arise from the wilful misconduct or gross negligence of the Purchaser or the Trustee, respectively; provided, however, that the Voting Consultants maximum liability under this Section 8(c) shall be limited to an amount not to exceed the total amount of the fees the Voting Consultant receives from the Purchaser under the Master Agreement in any one year period for any and all claims made within that one year period. In no event shall the Voting Consultant be liable for special, incidental, indirect or consequential damages.
(d) Conditions to Indemnification. An indemnified party must give the other party(ies) prompt written notice of any claim and allow the indemnifying party to defend or settle the claim as a condition to indemnification. No settlement shall bind any party without such partys written consent.
9. Termination of Agreement
(a) This Agreement and the voting trust created hereby shall terminate with respect to all of the Subject Shares (i) at the option of Wells, upon the non-payment of dividends on the VMTP Shares for two years, (ii) at the option of Wells, upon Wells and its Affiliates owning less than 20% of the Outstanding VMTP Shares or (iii) as provided with respect to certain transfers of Subject Shares in Section 3 above.
(b) Upon the termination of this Agreement with respect to the Subject Shares, the voting trust created pursuant to Section 1 hereof shall cease to have any effect with respect to the Subject Shares, and the parties hereto shall have no further rights or obligations under this Agreement with respect to the Subject Shares.
10. Trustees Compensation
The Trustee shall be entitled to the compensation set forth in the letter agreement between the Purchaser and the Trustee dated as of December 10, 2013, as may be amended from time to time.
11. Voting Consultants Compensation
The Voting Consultant shall be entitled to the compensation pursuant to the Master Agreement.
12. Tax Treatment
It is the intention of the parties hereto that for all federal, state and local income and other tax purposes the Purchaser or the applicable Beneficial Owner, as the case may be, shall be treated as the owner of the Subject Shares and, except as otherwise required by law, no party shall take a contrary position in any tax return or report or otherwise act in a contrary manner.
13. Notices
All notices, requests and other communications to the Purchaser, the Trustee or the Voting Consultant shall be in writing (including telecopy, electronic mail or similar writing), except in the case of notices and other communications permitted to be given by telephone, and shall be given to such party at its address or telecopy number or email address set forth below or to such other Person and/or such other address or telecopy number or email address as such party may hereafter specify for the purpose by notice to the other party. Each such notice, request or other communication shall be effective (i) if given by mail, five days after such communication is deposited in the mail, return receipt requested, addressed as aforesaid, or (ii) if given by any other means, when delivered at the address specified in this Section. The notice address for each party is specified below:
if to the Purchaser:
Wells Fargo Municipal Capital Strategies, LLC
c/o Wells Fargo Bank, National Association
375 Park Avenue
New York, New York 10152
Attention: | Adam Joseph |
Telephone: | (212) 214-5502 |
Facsimile: | (212) 214-8971 |
Email: | adam.joseph@wellsfargo.com |
if to the Trustee:
Lord Securities Corporation
48 Wall Street
New York, New York 10005
Attention: | Orlando Figueroa |
Telephone: | (212) 346-9007 |
Email: | Orlando.Figueroa@lordspv.com |
if to the Voting Consultant:
Institutional Shareholder Services Inc.
50 Fremont Street, Suite 2430
San Francisco, California 94105
Attention: | Jacqueline Rhoades |
Telephone: | (415) 836-8852 |
Email: | Jacqueline.rhoades@issgovernance.com |
with a copy to:
Institutional Shareholder Services Inc.
7 World Trade Center
250 Greenwich Street, 47th Floor
New York, New York 10007
Attention: | General Counsel |
Telephone: | (212) 804-2930 |
Email: | frederick.bogdan@msci.com |
14. Modification
No modification of this Agreement shall be effective unless in writing and signed by all of the parties hereto. Without the prior written consent of the Fund (in its sole discretion), the Purchaser will not agree or consent to any amendment, supplement, modification or repeal of this Agreement, nor waive any provision hereof; provided, that in the case of any proposed amendment, supplement, modification or repeal of this Agreement which is a result of a change in law or regulation, the consent of the Fund shall not be unreasonably withheld or delayed.
15. Benefit and Burden
This Agreement shall inure to the benefit of, and shall be binding upon, the parties hereto and their legatees, distributees, estates, executors or administrators, personal and legal representatives, successors and assigns.
16. Severability
The invalidity of any particular provision of this Agreement shall not affect the validity of the remainder hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted.
17. Headings
The section headings herein are for convenience of reference only, and shall not affect the construction, or limit or otherwise affect the meaning hereof.
18. Applicable Law
This Agreement shall be construed and enforced in accordance with and governed by the law of the State of New York.
THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL AND NEW YORK STATE COURTS OF COMPETENT JURISDICTION LOCATED IN NEW YORK COUNTY, NEW YORK IN CONNECTION WITH ANY DISPUTE RELATED TO THIS AGREEMENT OR ANY MATTERS CONTEMPLATED HEREBY.
19. Waiver
THE PURCHASER, THE TRUSTEE AND THE VOTING CONSULTANT HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY OF THE PARTIES HERETO AGAINST THE OTHER(S) ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT.
20. Assignment
None of the parties hereto may assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of the other parties; provided that, without the consent of either the Trustee or the Voting Consultant, the Purchaser may assign its rights and obligations under this Agreement (i) to an Affiliate, (ii) to a successor entity following a consolidation, amalgamation with, or merger with or into or (iii) to a transferee that acquires all or substantially all of the Purchasers assets. Any assignment other than in accordance with this section shall be void.
21. Conflicts with Other Documents
In the event that this Agreement requires any action to be taken with respect to any matter and the Master Agreement requires that a different action be taken with respect to such matter, and such actions are mutually exclusive, the provisions of this Agreement in respect thereof shall control.
22. Counterparts
This Agreement may be executed by the parties hereto in any number of separate counterparts, each of which shall be deemed to be an original, and all of which taken together shall be deemed to constitute one and the same instrument. Any counterpart or other signature delivered by facsimile or by electronic mail shall be deemed for all purposes as being a good and valid execution and delivery of this Agreement by that party.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above.
WELLS FARGO MUNICIPAL CAPITAL STRATEGIES, LLC, as Purchaser
By: | /s/ Adam Joseph | |
Name: Adam Joseph | ||
Title: President |
LORD SECURITIES CORPORATION, as Trustee
By: | /s/ Dewan Tarn | |
Name: Dewan Tarn | ||
Title: Senior Vice President |
INSTITUTIONAL SHAREHOLDER SERVICES INC., as Voting Consultant
By: | /s/ Marija Kramer | |
Name: Marija Kramer | ||
Title: Executive Director |
Exhibit 99.4
EXECUTION VERSION
REGISTRATION RIGHTS AGREEMENT
THIS REGISTRATION RIGHTS AGREEMENT (this Agreement), executed as of December 10, 2013, is made between (i) Nuveen AMT-Free Municipal Income Fund, a closed-end fund organized as a Massachusetts business trust (the Fund), and (ii) Wells Fargo Bank, National Association, a national banking association organized and existing under the laws of the United States of America, including its successors by merger or operation of law (the Shareholder).
RECITALS
1. As of the date hereof, the Shareholder holds 1,510 Variable Rate MuniFund Term Preferred Shares (VMTP Shares) issued by the Fund; and
2. The Fund and the Shareholder have entered into that certain VMTP Purchase Agreement dated as of December 10, 2013 (the Purchase Agreement), regarding the purchase of the VMTP Shares of the Fund and certain other rights and obligations of the parties thereto as set forth therein.
NOW THEREFORE, the Parties hereby agree to enter into to provide for certain registration rights as follows:
1. Certain Definitions. As used in this Agreement, the following terms have the following respective meanings:
Affiliate means, with respect to any Person, any other Person directly or indirectly Controlling, Controlled by, or under common Control with such Person (including any Subsidiary) and Affiliates shall have correlative meaning. For the purpose of this definition, the term Control (including with correlative meanings, the terms Controlling, Controlled by and under common Control with), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or by contract or otherwise.
Agreement has the meaning set forth in the preamble to this Agreement.
Blue Sky means the statutes of any state regulating the sale of corporate securities within that state.
Board means the board of trustees of the Fund or any duly authorized committee thereof.
Commission means the United States Securities and Exchange Commission.
Demand Registration has the meaning set forth in Section 3.1 of this Agreement.
Designated Representative has the meaning set forth in Section 6(j)(v) of this Agreement.
Effective Date means the date of this Agreement.
FINRA shall mean the Financial Industry Regulatory Authority or any successor.
Form N-2 means such form under the Securities Act (as defined herein) as in effect on the date hereof or any successor registration form under the Securities Act subsequently adopted by the Commission.
Fund has the meaning set forth in the preamble to this Agreement.
Fund Indemnified Persons means, the Fund and its affiliates and trustees, officers, partners, employees, agents, representatives and control persons, entitled to indemnification by the Holders under Section 7.
Holder means the Shareholder and any Permitted Transferees of any Shareholder entitled to the rights, and bound by the obligations under this Agreement, in accordance with Section 8.11.
Holder Indemnified Persons means, with respect to each Holder, such Holder and its affiliates and directors, officers, partners, employees, agents, representatives and control persons, entitled to indemnification by the Fund under Section 7.
Indemnified Party has the meaning set forth in Section 7.3 of this Agreement.
Indemnifying Party has the meaning set forth in Section 7.3 of this Agreement.
Initiating Holder has the meaning set forth in Section 3.1 of this Agreement.
Investment Adviser means Nuveen Fund Advisors, LLC, or any successor company or entity thereto, and any successor investment adviser to the Fund.
Majority Holders means the Holder(s) of more than 50% of the Outstanding VMTP Shares.
1940 Act means the Investment Company Act of 1940, as amended.
Nuveen Persons means the Investment Adviser and affiliated persons of the Investment Adviser (as defined in Section 2(a)(3) of the 1940 Act.
Outstanding has the meaning set forth in the Statement.
Parties means collectively the Fund, the Shareholder and any Permitted Transferee who becomes a party to this Agreement. Each of the Parties shall be referred to as a Party.
Permitted Transferee means, on any date prior to the VMTP Shares having been registered under the Securities Act, any Person permitted to be a Holder of VMTP Shares pursuant to Section 2.18 of the Statement to which VMTP Shares are transferred in compliance with Section 8.11.
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Person means and includes an individual, a partnership, the Fund, a trust, a corporation, a limited liability company, an unincorporated association, a joint venture or other entity or a government or any agency or political subdivision thereof.
Prospectus shall mean the prospectus included in a Registration Statement, including any preliminary prospectus, any prospectus filed by the Fund under Rule 430A or Rule 497 of the rules and regulations of the Commission under the Securities Act in connection therewith, and any advertising or sales material prepared by the Fund and filed under Rule 482 of the rules and regulations of the Commission under the Securities Act in connection therewith, including in each such case all amendments and supplements to any such prospectus, advertising or sales material, and in each case including all material incorporated by reference therein.
Public Offering means an offering of Registrable Securities pursuant to an effective registration statement under the Securities Act.
Purchase Agreement has the meaning set forth in the recitals to this Agreement.
Registration means a registration effected by preparing and filing a Registration Statement and the declaration or ordering of the effectiveness of that Registration Statement, and the terms Register and Registered have meanings correlative with the foregoing.
Registrable Securities means (i) VMTP Shares owned by the Shareholder or any Permitted Transferee, and (ii) VMTP Shares or any other securities of the Fund issued as a dividend or other distribution with respect to, or in exchange for, or in replacement of, the VMTP Shares referred to in clause (i).
Registration Expenses means all expenses incurred by the Fund in complying with Section 3 of this Agreement, including, without limitation, all Registration, qualification, and filing fees, printing expenses, fees and disbursements of counsel for the Fund, reasonable fees and disbursements of one special counsel for all Holders (if different from counsels to the Fund) up to an amount not to exceed U.S.$25,000, Blue Sky fees and expenses, the expense of any reasonably necessary special audits or comfort letters incident to or required by a Registration and the reasonable costs and expenses of attending domestic road show presentations. Registration Expenses do not include any underwriting discounts or commissions or any fees or expenses of counsel to the Holders.
Registration Statement means a registration statement prepared on Form N-2 under the Securities Act including the related preliminary prospectus or prospectuses.
Securities Act means the United States Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder, all as from time to time in effect.
Shareholder has the meaning set forth in the preamble to this Agreement.
Statement means the Statement Establishing and Fixing the Rights and Preferences of the VMTP Shares, dated as of December 9, 2013, as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof.
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Underwriters Representative has the meaning set forth in Section 3.3(b) of this Agreement.
U.S.$ or USD means United States dollars.
VMTP Shares means the variable rate munifund term preferred shares, Series 2016, of the Fund, with par value of U.S.$.01 per share and a liquidation preference of U.S.$100,000 per share.
2. Registration Rights; Applicability of Rights. The Holders shall be entitled to the rights with respect to the registration of the Registrable Securities set forth in this Agreement.
3. Demand Registration.
3.1 Request for Registration. If the Fund receives from the Majority Holders (referred to as the Initiating Holder(s)) a request in writing that the Fund effect any Registration with respect to the Registrable Securities, subject to the terms of this Agreement, the Fund shall (i) within ten (10) days of receipt of such written request, give written notice of the proposed Registration to all other Holders, and (ii) as soon as practicable, use its commercially reasonable best efforts to effect Registration of those Registrable Securities (Demand Registration) which the Fund has been so requested to register, together with all other Registrable Securities which the Fund has been requested to register by Holders thereof by written request given to the Fund within twenty (20) days after receiving written notice from the Fund, subject to the limitations of this Section 3. The Fund shall not be obligated to take any action to effect any Registration pursuant to this Section 3.1 after the Fund has effected one Registration pursuant to this Section 3.1 and such Registration has been declared or ordered effective (and has not been subject to a stop order of the Commission). The substantive provisions of Section 3.3 shall be applicable to any Registration initiated under this Section 3.1.
3.2 Right of Deferral. Notwithstanding the foregoing, the Fund shall not be obligated to file a Registration Statement pursuant to this Section 3 if the Fund furnishes to those Holders a certificate signed by the chief executive officer or chairman of the board of the Fund stating that in the good faith judgment of the Board it would be seriously detrimental to the Fund or its shareholders for a Registration Statement to be filed in the near future. In such event, the Funds obligation to use its commercially reasonable best efforts to file a Registration Statement shall be deferred for a period not to exceed 90 days from the receipt of the request to file the registration by that Holder; provided, that the Fund shall not exercise the right to delay a request contained in this Section 3.2 more than once in any 12 month period, and provided further, that during such 90 day period, the Fund shall not file a Registration Statement with respect to any preferred shares of the Fund.
3.3 Underwriting in Demand Registration.
(a) Notice of Underwriting. If the Initiating Holder(s) intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Fund as a part of their request made pursuant to this Section 3, and the Fund shall include that information in the written notice referred to in Section 3.1 of this Agreement. The right of any Holder to Registration pursuant to this Section 3 shall be conditioned upon such Holders agreement to participate in the underwriting and the inclusion of that Holders Registrable Securities in the underwriting to the extent provided herein.
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(b) Selection of Underwriter in Demand Registration. The Fund shall (together with all Holders proposing to distribute their securities through the underwriting) enter into an underwriting agreement in customary form for an underwritten offering made solely by selling shareholders with the underwriter or, if more than one, the lead underwriter acting as the representative of the underwriters (the Underwriters Representative) selected for the underwriting by the Initiating Holder and with the consent of the Fund, not to be unreasonably withheld.
(c) Marketing Limitation in Demand Registration. Notwithstanding any other provision of this Section 3, in the event the Underwriters Representative advises the Fund in writing that market factors (including, without limitation, the aggregate number of VMTP Shares requested to be Registered, the general condition of the market, and the status of the Persons proposing to sell securities pursuant to the Registration) require a limitation of the number of shares to be underwritten, then the Fund shall so advise all Holders of Registrable Securities that would otherwise be underwritten pursuant hereto, and the number of shares of Registrable Securities that may be included in the Registration and underwriting shall be allocated among all Holders of such Registrable Securities on a pro rata basis based on the number of Registrable Securities requested to be included in the Registration by all such selling Holders (including the Initiating Holders); provided, however, that the number of Registrable Securities to be included in any such underwriting held by Holders shall not be reduced unless all other securities of the Fund, its Affiliates and Nuveen Persons are first entirely excluded from the underwriting. Unless the prior written consent of the Majority Holders has been obtained, the number of the Registrable Securities included in any such underwriting shall not be reduced to less than 90% of the numbers of the Registrable Securities requested to be included. Any Registrable Securities or other securities excluded from the underwriting by reason of this Section 3.3(c) shall be withdrawn from the Registration. To facilitate the allocation of shares in accordance with the foregoing, the Fund or the underwriters may round the number of shares allocated to any Holder to the nearest one share.
(d) Right of Withdrawal in Demand Registration. If any Holder of Registrable Securities (other than the Initiating Holder(s)) disapproves of the terms of the underwriting, such Holder may elect to withdraw therefrom by written notice to the Fund and the Underwriters Representative proposing to distribute their securities through the underwriting, delivered at least 20 days prior to the effective date of the Registration Statement. The securities so withdrawn shall also be withdrawn from the Registration Statement.
4. Expenses of Registration. All Registration Expenses incurred in connection with any Registration pursuant to Section 3.1 shall be borne by the Fund.
5. Assignability of Registration Rights; Termination of Registration Rights; Limitation on Subsequent Registration Rights
5.1 Assignability of Registration Rights. Except as provided in Section 8.11, no Party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the written consent of the other Party to this Agreement.
5.2 Termination of Registration Rights. The rights to cause the Fund to register Registrable Securities granted under Section 3 of this Agreement and to receive notices pursuant to Section 3 of this Agreement, shall terminate on the earliest of (i) the 27 month anniversary of the Effective Date, (ii) a notice of redemption having been issued by the Fund under the Statement for the redemption of all of the Registrable Securities, or the repurchase by the Fund (including by exchange of securities) and cancellation of all of the Registrable Securities and (iii) the date a Demand Registration has been effected and the Registrable Securities have been sold or otherwise disposed of in accordance with the plan of distribution set forth in the Registration Statement and Prospectus relating thereto or all Holders have withdrawn from the Demand Registration.
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6. Registration Procedures and Obligations. Whenever required under this Agreement to effect the Registration of any Registrable Securities, the Fund shall, as expeditiously as commercially reasonably possible:
(a) (i) prepare and file a Registration Statement with the Commission which (x) shall be on Form N-2, if available, (y) shall be available for the sale or exchange of the Registrable Securities in accordance with the intended method or methods of distribution by the selling Holders thereof, and (z) shall comply as to form with the requirements of the applicable form and include all financial statements required by the Commission to be filed therewith and all other information reasonably requested by the Underwriters Representative to be included therein relating to the underwriters and plan of distribution for the Registrable Securities, (ii) use its commercially reasonable best efforts to cause such Registration Statement to become effective and remain effective for up to 90 days or, if earlier, until the Holder or Holders have completed the distribution thereto or withdrawn from such plan of distribution, (iii) cause each Registration Statement, as of the effective date of such Registration Statement, (x) to comply in all material respects with any requirements of the Securities Act and (y) not to contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading and (iv) cause each Prospectus, as of the date thereof, (x) to comply in all material respects with any requirements of the Securities Act and (y) not to contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;
(b) subject to Section 6(a), prepare and file with the Commission such amendments and post-effective amendments to such Registration Statement as may be necessary to keep such Registration Statement effective for the applicable period; cause each such Prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to applicable rules under the Securities Act; and comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such Registration Statement during the applicable period in accordance with the intended method or methods of distribution by the selling Holders thereof, as set forth in such registration statement;
(c) furnish to each Holder for which the Registrable Securities are being registered and to each underwriter of an underwritten offering of the Registrable Securities, if any, without charge, as many copies of each Prospectus, including, without limitation, each preliminary Prospectus, and any amendments or supplements thereto and such other documents as such Holder or underwriter may reasonably request in order to facilitate the public sale or other disposition of the Registrable Securities; the Fund hereby consents to the use of the Prospectus, including, without limitation, each preliminary Prospectus, by each Holder for which the Registrable Securities are being registered and each underwriter of an underwritten Public Offering of the Registrable Securities, if any, in connection with the offering and sale of the Registrable Securities covered by the Prospectus or the preliminary Prospectus, as applicable;
(d) (i) use its commercially reasonable best efforts to register or qualify the Registrable Securities, no later than the time the applicable Registration Statement is declared effective by the Commission, under all applicable state securities or Blue Sky laws of such United States jurisdictions as the Underwriters Representative, if any, or any Holder having Registrable Securities covered by a Registration Statement, shall reasonably request; (ii) use its commercially reasonable best efforts to keep each such registration or qualification effective during the period such Registration Statement is required to be kept effective; and (iii) do any and all other acts and things which may be reasonably necessary or advisable to enable each underwriter, if any, and any such Holder to consummate the disposition in each such jurisdiction of such Registrable Securities the registration of which such Holder is requesting; provided, however, that the Fund shall not be obligated to qualify to do business or to a file a general consent to service of process in any such state or jurisdiction, unless the Fund is already subject to service in such jurisdiction and except as may be required by the Securities Act;
6
(e) notify each Holder for which the Registrable Securities are being registered promptly, and, if requested by such Holder, confirm such advice in writing, (i) when such Registration Statement has become effective and when any post-effective amendments and supplements thereto become effective, (ii) of the issuance by the Commission or any state securities authority of any stop order, injunction or other order or requirement suspending the effectiveness of such Registration Statement or the initiation of any proceedings for that purpose, (iii) if, between the effective date of such Registration Statement and the closing of any sale of Registrable Securities covered thereby pursuant to any agreement to which the Fund is a party relating to such sale, the representations and warranties of the Fund contained in such agreement cease to be true and correct in all material respects or if the Fund receives any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose, and (iv) of the happening of any event during the period such Registration Statement is effective as a result of which such Registration Statement or the related Prospectus contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;
(f) furnish a designated single counsel for each of the underwriters, if any, and for the Holders for which the Registrable Securities are being registered, copies of any request by the Commission or any state securities authority for amendments or supplements to a Registration Statement and Prospectus or for additional information;
(g) use its commercially reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement at the earliest possible time;
(h) upon request, furnish to the Underwriters Representative of an underwritten Public Offering of the Registrable Securities, if any, without charge, at least one signed copy of such Registration Statement and any post-effective amendment thereto, including financial statements and schedules, all documents incorporated therein by reference and all exhibits; and furnish to each Holder for which the Registrable Securities are being registered, without charge, at least one conformed copy of each Registration Statement and any post-effective amendment thereto (without documents incorporated therein by reference or exhibits thereto, unless requested);
(i) upon the occurrence of any event contemplated by paragraph (e)(iv) of this Section, use commercially reasonable best efforts to prepare a supplement or post-effective amendment to such Registration Statement or the related Prospectus, or any document incorporated therein by reference, or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities, such Prospectus will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;
7
(j) enter into customary agreements (including, in the case of an underwritten Public Offering, underwriting agreements in customary form for sales only by selling shareholders, and including provisions with respect to indemnification and contribution in customary form and consistent with the provisions relating to indemnification and contribution contained herein) and take all other customary and appropriate actions that are commercially reasonable in order to expedite or facilitate the disposition of such Registrable Securities in accordance with the plan of distribution set forth in the Registration Statement and the Prospectus, and in connection therewith:
(i) in the case of any underwritten Public Offering, make such representations and warranties to (x) the underwriters and (y) insofar as they relate to the nature and the validity of the offering, the selling Holders of such Registrable Securities, in form, substance and scope as are customarily made by issuers to underwriters in similar underwritten offerings;
(ii) in the case of any underwritten Public Offering, obtain opinions of counsel to the Fund and updates thereof addressed to (x) the underwriters and (y) insofar as they relate to the nature and the validity of the offering, each selling Holder, covering the matters customarily covered in opinions requested in similar underwritten offerings and such other matters as may be reasonably requested by underwriters and such Holders (and which opinions (in form, scope and substance) shall be reasonably satisfactory to the Underwriters Representative, if any, and, where relevant, the Majority Holders of the Registrable Securities being sold);
(iii) in the case of any underwritten Public Offering, obtain comfort letters or agreed-upon procedures letters and updates thereof from the Funds independent certified public accountants addressed to the selling Holders of the Registrable Securities, if permissible, and underwriters which letters shall be customary in form and shall cover matters of the type customarily covered in such letters to underwriters and such Holders in connection with firm commitment underwritten offerings;
(iv) to the extent requested and customary for the relevant transaction, enter into a securities sales agreement with the selling Holders providing for, among other things, the appointment of such representative as agent for the selling Holders for the purpose of soliciting purchases of the Registrable Securities, which agreement shall be customary in form, substance and scope and shall contain customary representations, warranties and covenants relating to the nature and validity of the offering; and
(v) deliver such customary documents and certificates as may be reasonably requested by a designated representative of the Majority Holders of the Registrable Securities being sold (the Designated Representative) or by the Underwriters Representative, if any.
(k) make available for inspection by the Designated Representative and by any underwriters participating in any disposition pursuant to such Registration Statement and a single counsel or accountant retained by such Holders or by counsel to such underwriters, all relevant financial and other records, pertinent corporate documents and properties of the Fund and cause the respective officers, trustees and employees of the Fund to supply all information reasonably requested by such Designated Representative, underwriter, counsel or accountant in connection with such Registration Statement;
(l) within a reasonable time prior to the filing of any Registration Statement, any Prospectus, any amendment to a Registration Statement or amendment or supplement to a Prospectus, provide copies of such document to the selling Holders of the Registrable Securities and to counsel to such Holders and to the underwriter or underwriters of a underwritten Public Offering of the Registrable Securities, if any; fairly consider such reasonable changes in any such document prior to or after the filing thereof as the counsel to the Holders or the underwriter or the underwriters may request and not file any such document in a form to which the Majority Holders of the Registrable Securities being registered or any Underwriters Representative shall reasonably object unless required by law; and make such of the representatives of the Fund as shall be reasonably requested by the Designated Representative or the Underwriters Representative available for discussion of such document;
8
(m) otherwise use its commercially reasonable best efforts to comply with all applicable rules and regulations of the Commission, including making available to its security holders an earnings statement covering at least 12 months which shall satisfy the provisions of the Securities Act and the rules thereunder;
(n) cooperate and assist in any filings required to be made with FINRA and in the performance of any due diligence investigation by any underwriter in an underwritten offering; and
(o) use its commercially reasonable best efforts to facilitate the distribution and sale of any Registrable Securities to be offered pursuant to this Agreement, including without limitation by participating in domestic road show presentations, holding meetings with potential investors and taking such other actions as shall be reasonably requested by the Designated Representative or the lead managing underwriter of an underwritten offering.
Each selling Holder of the Registrable Securities as to which any Registration is being effected pursuant to this Agreement agrees, as a condition to the Registration obligations with respect to such Holder provided herein, to furnish to the Fund such information regarding such Holder required to be included in the Registration Statement, the ownership of the Registrable Securities by such Holder (including information on the Persons having voting and dispositive control thereof) and the proposed distribution by such Holder of such Registrable Securities as the Fund may from time to time reasonably request in writing. Each selling Holder of the Registrable Securities as to which any Registration is being effected pursuant to this Agreement also agrees, as a condition to the Registration obligations with respect to such Holder provided herein, to suspend use of any Prospectus if it has received the notification contemplated by Section 6(e)(iv) until such time as the Fund notifies such Holder that it has complied with Section 6(i) above.
7. Indemnification.
7.1 Funds Indemnification of Holders. The Fund agrees to indemnify and hold harmless each Holder and each other Holder Indemnified Person from and against any losses, claims, damages, liabilities or expenses incurred by them (including reasonable fees and disbursements of outside counsel) which are related to or arise out of any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any Prospectus or in any amendment or supplement thereto, or arise out of or relate to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (i) such untrue statements or omissions are based solely upon information regarding such Holder or its Affiliates furnished in writing to the Fund by such Holder expressly for use therein, or to the extent that such information relates to such Holder or its Affiliates, or such Holders proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such Prospectus or in any amendment or supplement thereto or (ii) in the case of an occurrence of an event of the type specified in Section 6(e)(iv), the use by such Holder of an outdated, defective or otherwise unavailable Prospectus after the Fund has notified such Holder in writing that the Prospectus is unavailable for use by such Holder and prior to the receipt by such Holder of a notice that the Fund has complied with Section 6(i) above.
9
7.2 Holders Indemnification of Fund. Each Holder, severally and not jointly, agrees to indemnify and hold harmless the Fund and each other Fund Indemnified Person from and against any losses, claims, damages, liabilities or expenses incurred by them (including reasonable fees and disbursements of outside counsel) which are related to or arise out of any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any Prospectus or in any amendment or supplement thereto, or arise out of or relate to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that (A) such untrue statements or omissions are based solely upon information regarding such Holder or its Affiliates furnished in writing to the Fund by such Holder expressly for use therein, or to the extent that such information relates to such Holder or its Affiliates or such Holders proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such Prospectus or in any amendment or supplement thereto or (B) in the case of an occurrence of an event of the type specified in Section 6(e)(iv), the use by such Holder of an outdated, defective or otherwise unavailable Prospectus after the Fund has notified such Holder in writing that the Prospectus is unavailable for use by such Holder and prior to the receipt by such Holder of a notice that the Fund has complied with Section 6(i) above. In no event shall the liability of any selling Holder under this Section 7.2 be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation, except in the case of fraud or willful misconduct.
7.3 Indemnification Procedure. If any action, suit, proceeding or investigation shall be brought or asserted against any Person entitled to indemnity hereunder (the Indemnified Party), such Indemnified Party shall notify the Person from whom indemnity is sought (the Indemnifying Party) in writing with reasonable promptness; provided, however, that any failure by an Indemnified Party to notify the Indemnifying Party shall not relieve the Indemnifying Party from its obligations hereunder (except to the extent that the Indemnifying Party is materially prejudiced by such failure to promptly notify). The Indemnifying Party shall be entitled to assume the defense of any such action, suit, proceeding or investigation, including the employment of counsel reasonably satisfactory to the Indemnified Party. The Indemnified Party shall have the right to separate counsel of its own choice to represent it, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party has failed promptly to assume the defense and employ counsel reasonably satisfactory to the Indemnified Party in accordance with the preceding sentence or (ii) the Indemnified Party shall have been advised by counsel that there exist actual or potential conflicting interests between the Indemnifying Party and such Indemnified Party, including situations in which one or more legal defenses may be available to such Indemnified Party that are different from or additional to those available to the Indemnifying Party; provided, however, that the Indemnifying Party shall not, in connection with any one such action or proceeding or separate but substantially similar actions or proceedings arising out of the same general allegations be liable for fees and expenses of more than one separate firm of attorneys at any time for all Indemnified Parties of the other party; and such counsel shall, to the extent consistent with its professional responsibilities, cooperate with the Indemnifying Party and any counsel designated by the Indemnifying Party.
The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld, conditioned or delayed. No Indemnifying Party will, without the prior written consent of the Indemnified Party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought by the Indemnified Party hereunder (whether or not any Indemnified Party is an actual or potential party to such claim, action, suit or proceeding) unless such settlement, compromise or consent includes an unconditional release of each Indemnified Party from all liability and obligations arising therefrom.
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7.4 Contribution. Each Indemnifying Party also agrees that if any indemnification sought by an Indemnified Party pursuant to this Agreement is unavailable or insufficient, for any reason, to hold harmless the Indemnified Party in respect of any losses, claims, damages or liabilities (or actions in respect thereof), then the Indemnifying Party, in order to provide for just and equitable contribution, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, liabilities, damages and expenses (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the Fund on the one hand and the Holders on the other, in connection with the statements or omissions or alleged statements or omissions that resulted in such losses, claims, damages, liabilities or expenses (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault of the parties shall be determined by reference to, among other things, whether the actions taken or omitted to be taken in connection with the proposed transactions contemplated by this Agreement (including any misstatement of a material fact or the omission to state a material fact) relates to information supplied by the Fund on the one hand, or the Holder on the other, the parties relative intent, knowledge, access to information and opportunity to correct or prevent such action, misstatement or alleged omission, and any other equitable considerations appropriate in the circumstances. No person found liable for a fraudulent misrepresentation shall be entitled to contribution from any person who is not also found liable for such fraudulent misrepresentation. In no event shall the liability of any selling Holder under this Section 7.4 be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation, except in the case of fraud or willful misconduct. The indemnity, reimbursement and contribution obligations under this Agreement shall be in addition to any rights that any Indemnified Party may have at common law or otherwise.
7.5 No Limitations. Nothing in this Section 7 is intended to limit any partys obligations contained in other parts of this Agreement or the VMTP Shares, provided that no amount shall be reimbursed twice in any event.
7.6 Conflicts. Notwithstanding the foregoing, to the extent that provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.
8. Miscellaneous.
8.1 Governing Law. This Agreement shall be construed in accordance with and governed by the domestic law of the State of New York.
THE PARTIES HERETO HEREBY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE FEDERAL AND NEW YORK STATE COURTS LOCATED IN THE CITY OF NEW YORK IN CONNECTION WITH ANY DISPUTE RELATED TO THIS AGREEMENT OR ANY MATTERS CONTEMPLATED HEREBY.
8.2 No Waivers.
(a) The obligations of the Fund and the Shareholder and its Permitted Transferees hereunder shall not in any way be modified or limited by reference to any other document, instrument or agreement (including, without limitation, the VMTP Shares). The rights of the Shareholder hereunder are separate from and in addition to any rights that any Holder of any VMTP Share may have under the terms of such VMTP Share or otherwise.
(b) No failure or delay by the Fund or the Shareholder in exercising any right, power or privilege hereunder or under the VMTP Shares shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. No failure or delay by the Fund or the Shareholder in exercising any right, power or privilege under or in respect of the VMTP Shares shall affect the rights, powers or privileges of the Fund or the Shareholder hereunder or shall operate as a limitation or waiver thereof. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.
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8.3 Specific Performance. Each Party hereby acknowledges that the remedies at law of the other Parties for a breach or threatened breach of this Agreement would be inadequate and, in recognition of this fact, any Party, without posting any bond, and in addition to all other remedies that may be available, shall be entitled to seek equitable relief in the form of specific performance, injunctions or any other equitable remedy.
8.4 Waiver of Jury. The Fund and the Shareholder hereby waive trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other on any matters whatsoever arising out of or in any way connected with this Agreement.
8.5 Counterparts and Facsimile Execution. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Any counterpart or other signature delivered by facsimile or electronic mail shall be deemed for all purposes as being a good and valid execution and delivery of this Agreement by that party.
8.6 Headings. The headings of the Sections of this Agreement are for convenience and shall not by themselves determine the interpretation of this Agreement.
8.7 Notices. All notices, requests and other communications to any party hereunder shall be in writing (including electronic mail or similar writing), and shall be given to such party at its address or email address set forth below or such other address or telecopy number or email address as such party may hereafter specify for the purpose by notice to the other parties. Each such notice, request or other communication shall be effective when delivered at the address specified in this Section. The notice address for each party is specified below:
If to the Fund, to:
Nuveen AMT-Free Municipal Income Fund
333 W. Wacker Drive; Suite 3300
Chicago, IL 60606
Attention: Gifford R. Zimmerman, Chief Administrative Officer
Telephone: (312) 917-7945
Facsimile: (312) 917- 7952
Email: giff.zimmerman@nuveen.com
If to the Shareholder, to:
Wells Fargo Bank, National Association
375 Park Avenue
New York, New York 10152
Attention: Adam Joseph
Telephone: (212) 214-5502
Facsimile: (212) 214-8971
Email: adam.joseph@wellsfargo.com
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8.8 Amendments and Waivers. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by the Fund and the Holders of not less than a majority of the Registrable Securities (calculated on an as-converted basis).
8.9 Severability. In case any provision of this Agreement shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby so long as the intent of the Parties to this Agreement be preserved.
8.10 Entire Agreement. This Agreement and the Purchase Agreement shall constitute the entire agreement and understanding between the parties hereto with respect to the matters set forth herein and shall supersede any and all prior agreements and understandings relating to the subject matter hereof.
8.11 Successors and Assigns; Assignment. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns by merger or the operation of law. Neither the Fund nor the Shareholder may assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of the other party (other than by merger or operation of law), except that prior to the VMTP Shares being registered under the Securities Act, any transferee of VMTP Shares satisfying the requirements set forth in Section 2.1(b) of the Purchase Agreement shall have the rights of a Holder hereunder so long as it has executed a Transferree Letter in the form contemplated by the Purchase Agreement and otherwise agrees to be bound by the provisions of this Agreement. Any assignment without such prior written consent shall be void.
8.12 Effectiveness of this Agreement. This Agreement shall be effective as of the Effective Date and the rights and obligations of the Parties contained herein in each case shall be binding as of the Effective Date.
8.13 Liability of Officers, Trustees and Shareholders. A copy of the Declaration of Trust of the Fund is on file with the Secretary of the Commonwealth of The Commonwealth of Massachusetts, and notice hereby is given that this Agreement is executed on behalf of the Fund by an officer of the Fund in his or her capacity as an officer of the Fund and not individually and that the obligations under or arising out of this Agreement are not binding upon any of the trustees, officers or shareholders individually but are binding only upon the assets and properties of the Fund. All persons extending credit to, contracting with or having a claim against the Fund must look solely to the Funds assets and property for the enforcement of any claims against the Fund as none of the Funds officers, agents or shareholders, whether past, present or future, assume any personal liability for obligations entered on behalf of the Fund.
[Signatures follow on the next page.]
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IN WITNESS WHEREOF, the parties to this Agreement have executed this Agreement on the date first written above.
THE FUND: | ||
Nuveen AMT-Free Municipal Income Fund | ||
By: | /s/ Kevin J. McCarthy | |
Name: | Kevin J. McCarthy | |
Title: | Vice President & Secretary | |
THE SHAREHOLDER: | ||
Wells Fargo Municipal Capital Strategies, LLC | ||
By: | /s/ Adam Joseph | |
Name: | Adam Joseph | |
Title: | President |
Exhibit 99.5
VMTP Purchase Agreement
Nuveen AMT-Free Municipal Income Fund
and
Wells Fargo Municipal Capital Strategies, LLC
December 10, 2013
TABLE OF CONTENTS
Page | ||||||
ARTICLE I DEFINITIONS | 1 | |||||
1.1 | Incorporation of Certain Definitions by Reference | 8 | ||||
ARTICLE II PURCHASE AND TRANSFERS, COSTS AND EXPENSES; ADDITIONAL FEE | 8 | |||||
2.1 | Purchase and Transfer of New VMTP Shares | 8 | ||||
2.2 | Operating Expenses; Fees | 9 | ||||
2.3 | Additional Fee for Failure to Comply with Reporting Requirement or Registration Rights Failure | 9 | ||||
ARTICLE III CONDITIONS TO EFFECTIVE DATE | 10 | |||||
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE FUND | 11 | |||||
4.1 | Existence | 11 | ||||
4.2 | Authorization; Contravention | 11 | ||||
4.3 | Binding Effect | 11 | ||||
4.4 | Financial Information | 12 | ||||
4.5 | Litigation | 12 | ||||
4.6 | Consents | 12 | ||||
4.7 | Incorporation of Additional Representations and Warranties | 12 | ||||
4.8 | Complete and Correct Information | 12 | ||||
4.9 | Offering Memorandum | 13 | ||||
4.10 | 1940 Act Registration | 13 | ||||
4.11 | Effective Leverage Ratio; Asset Coverage | 13 | ||||
4.12 | Investment Policies | 13 | ||||
4.13 | Credit Quality | 13 | ||||
4.14 | Due Diligence | 14 | ||||
4.15 | Certain Fees | 14 | ||||
ARTICLE V REPRESENTATIONS AND WARRANTIES OF WELLS FARGO | 14 | |||||
5.1 | Existence | 14 | ||||
5.2 | Authorization; Contravention | 14 | ||||
5.3 | Binding Effect | 14 | ||||
5.4 | Own Account | 15 | ||||
5.5 | Litigation | 15 | ||||
5.6 | Consents | 15 | ||||
5.7 | Wells Fargo Status | 15 | ||||
5.8 | Experience of Wells Fargo | 15 | ||||
5.9 | Access to Information | 16 | ||||
5.10 | Certain Transactions | 16 | ||||
5.11 | Due Diligence | 16 | ||||
5.12 | Certain Fees | 16 | ||||
ARTICLE VI COVENANTS OF THE FUND | 16 | |||||
6.1 | Information | 16 | ||||
6.2 | No Amendment or Certain Other Actions Without Consent of Wells Fargo | 19 | ||||
6.3 | Maintenance of Existence | 19 | ||||
6.4 | Tax Status of the Fund | 19 | ||||
6.5 | Payment Obligations | 19 | ||||
6.6 | Compliance With Law | 19 | ||||
6.7 | Maintenance of Approvals: Filings, Etc. | 19 | ||||
6.8 | Inspection Rights | 19 | ||||
6.9 | Litigation, Etc. | 20 | ||||
6.10 | 1940 Act Registration | 20 | ||||
6.11 | Eligible Assets | 20 |
i
TABLE OF CONTENTS
Page | ||||||
6.12 | Credit Quality | 20 | ||||
6.13 | Maintenance of Effective Leverage Ratio | 21 | ||||
6.14 | Redemption and Paying Agent | 21 | ||||
6.15 | Cooperation in the Sale of New VMTP Shares | 21 | ||||
6.16 | Rating Agencies | 21 | ||||
6.17 | Securities Depository | 22 | ||||
6.18 | Future Agreements | 22 | ||||
6.19 | Use of Proceeds | 22 | ||||
ARTICLE VII MISCELLANEOUS | 22 | |||||
7.1 | Notices | 22 | ||||
7.2 | No Waivers | 23 | ||||
7.3 | Expenses and Indemnification | 24 | ||||
7.4 | Amendments and Waivers | 26 | ||||
7.5 | Successors and Assigns | 26 | ||||
7.6 | Term of this Agreement | 26 | ||||
7.7 | Governing Law | 26 | ||||
7.8 | Waiver of Jury Trial | 26 | ||||
7.9 | Counterparts | 27 | ||||
7.10 | Beneficiaries | 27 | ||||
7.11 | Entire Agreement | 27 | ||||
7.12 | Relationship to the Statement | 27 | ||||
7.13 | Confidentiality | 27 | ||||
7.14 | Severability | 28 | ||||
7.15 | Consent Rights of the Majority Participants to Certain Actions | 28 | ||||
7.16 | Disclaimer of Liability of Officers, Trustees and Beneficiaries | 29 |
ii
TABLE OF CONTENTS
Page | ||||||
SCHEDULE 1 | Schedule-1 | |||||
EXHIBIT A: | FORMS OF OPINIONS OF COUNSEL FOR THE FUND | A-1 | ||||
EXHIBIT A-1: | FORM OF CORPORATE AND 1940 ACT OPINION | A-1-1 | ||||
EXHIBIT A-2: | FORM OF TAX OPINION | A-2-1 | ||||
EXHIBIT A-3: | FORM OF LOCAL COUNSEL OPINION | A-3-1 | ||||
EXHIBIT B: | ELIGIBLE ASSETS | B-1 | ||||
EXHIBIT C: | TRANSFEREE CERTIFICATE | C-1 | ||||
EXHIBIT D: | INFORMATION TO BE PROVIDED BY THE FUND | D-1 |
iii
VMTP PURCHASE AGREEMENT dated as of December 10, 2013 (the Agreement) between NUVEEN AMT-FREE MUNICIPAL INCOME FUND, a closed-end fund organized as a Massachusetts business trust (the Fund) and WELLS FARGO MUNICIPAL CAPITAL STRATEGIES, LLC, a wholly-owned subsidiary of Wells Fargo Bank, National Association, organized and existing under the laws of Delaware, including its successors by merger or operation of law (Wells Fargo).
WHEREAS, the Fund has authorized the issuance pursuant to the Statement (as defined below) to Wells Fargo of its Variable Rate MuniFund Term Preferred Shares, Series 2016, as set forth on Schedule 1 hereto, which are subject to this Agreement (the New VMTP Shares);
WHEREAS, the Purchase Price (as defined below) shall be applied to redeem all of the Funds outstanding (i) MuniFund Term Preferred Shares, Series 2015 2.85% (the MTP Shares), and (ii) Variable Rate MuniFund Term Preferred Shares, Series 2014, with a liquidation preference of $100,000 per share (the Old VMTP Shares);
WHEREAS, as an inducement to Wells Fargo to purchase the New VMTP Shares, the Fund now desires to enter into this Agreement to set forth certain representations, warranties, covenants and agreements regarding the Issuer and the New VMTP Shares; and
WHEREAS, as an inducement to the Fund to issue and sell the New VMTP Shares, Wells Fargo desires to enter into this Agreement to set forth certain representations, warranties, covenants and agreements regarding Wells Fargo and the New VMTP Shares.
NOW, THEREFORE, in consideration of the respective agreements contained herein, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS
The following terms, as used herein, have the following meanings:
Additional Amount Payment has the meaning set forth in the Statement.
Agent Member has the meaning set forth in the Statement.
Agreement means this VMTP Purchase Agreement, dated as of December 10, 2013, as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms hereof.
Applicable Spread has the meaning set forth in the Statement.
Asset Coverage has the meaning set forth in the Statement.
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Below Investment Grade means any obligation, the highest rating for which from any of Moodys, S&P, Fitch and, in their absence, any other NRSRO is:
(a) lower than Baa3 or its equivalent (or unrated or with rating withdrawn), in the case of Moodys;
(b) lower than BBB- or its equivalent (or unrated or with rating withdrawn), in the case of S&P;
(c) lower than BBB- or its equivalent (or unrated or with rating withdrawn), in the case of Fitch; and
(d) in the event that none of Moodys, S&P or Fitch is then rating such obligation, lower than an equivalent long-term credit rating to those set forth in clauses (a) (c), in the case of any other NRSRO; provided that any obligation that is unrated or has had its rating withdrawn by all of Moodys, S&P, Fitch and any other NRSRO shall also be Below Investment Grade.
Board of Trustees has the meaning set forth in the Statement.
Business Day has the meaning set forth in the Statement.
By-Laws has the meaning set forth in the Statement.
Closed-End Funds has the meaning set forth in the Statement.
Code has the meaning set forth in the Statement.
Common Shares has the meaning set forth in the Statement.
Custodian has the meaning set forth in the Statement.
Date of Original Issue, with respect to the New VMTP Shares, means the date on which the Fund initially issued such New VMTP Shares.
Defeased Securities means a security for which cash, cash equivalents or other eligible property has been pledged in an amount sufficient to make all required payments on such security to and including maturity (including any accelerated maturity pursuant to a permitted redemption), in accordance with the instrument governing the issuance of such security.
Declaration has the meaning set forth in the Statement.
Deposit Securities has the meaning set forth in the Statement.
Derivative Contract means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, repurchase transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement, including any such obligations or liabilities under any such master agreement.
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Designated Owner means a Person in whose name New VMTP Shares of any Series are recorded as beneficial owner of such New VMTP Shares by the Securities Depository, an Agent Member or other securities intermediary on the records of such Securities Depository, Agent Member or securities intermediary, as the case may be.
Dividend Payment Date has the meaning set forth in the Statement.
Dividend Rate has the meaning set forth in the Statement.
Due Diligence Request means the due diligence request letter from Ashurst LLP dated November 13, 2013.
Effective Date means the Date of Original Issue of the New VMTP Shares subject to the satisfaction or waiver of the conditions specified in Article III.
Effective Leverage Ratio has the meaning set forth in the Statement.
Electronic Means has the meaning set forth in the Statement.
Eligible Assets means the instruments listed in Exhibit B to this Agreement, which may be amended from time to time with the prior consent of Wells Fargo, in which the Fund may invest.
Failure has the meaning set forth in Section 2.3.
Fee Rate means initially 0.25% per annum, which shall be subject to increase by 0.25% per annum for each Week in respect of which any Failure has occurred and is continuing.
Fitch means Fitch Ratings, a part of the Fitch Group, or any successor or successors thereto.
Fitch Guidelines means the guidelines, as may be amended from time to time, in connection with Fitch ratings of the New VMTP Shares.
Force Majeure Exception means any failure or delay in the performance of the Funds reporting obligation pursuant to Section 2.3 arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of God; earthquakes; flood; terrorism; wars and other military disturbances; sabotage; epidemics; riots; loss or malfunctions of utilities, computer (hardware or software) or communication services; accidents; acts of civil or military authority and governmental action. The Fund shall use commercially reasonable efforts to commence performance of its obligations during any of the foregoing circumstances.
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Fund has the meaning set forth in the preamble to this Agreement.
Holder has the meaning set forth in the Statement.
The word including means including without limitation.
Indemnified Persons means, Wells Fargo and its affiliates and directors, officers, partners, employees, agents, representatives and control persons, entitled to indemnification by the Fund under Section 7.3.
Investment Adviser means Nuveen Fund Advisors, LLC, or any successor company or entity.
Investment Grade means:
(A) any obligation (other than the New VMTP Shares), the highest rating for which from any of Moodys, S&P, Fitch and, in their absence, any other NRSRO is:
(a) higher than Ba1 or its equivalent, in the case of Moodys;
(b) higher than BB+ or its equivalent, in the case of S&P;
(c) higher than BB+ or its equivalent, in the case of Fitch; and
(d) in the event that none of Moodys, S&P or Fitch is then rating such obligation, higher than an equivalent long-term credit rating to those set forth in clauses (a) (c), in the case of any other NRSRO; and
(B) in respect of the New VMTP Shares, the rating from Fitch or Moodys, as applicable, which is:
(a) higher than BB+ or its equivalent, in the case of Fitch, and
(b) higher than Ba1 or its equivalent, in the case of Moodys.
Liquidation Preference, with respect to a given number of New VMTP Shares, means $100,000 times that number.
Low Investment Grade means any obligation, the highest rating for which from any of Moodys, S&P and Fitch and, in their absence, any other NRSRO is:
(a) lower than A2 but higher than Ba1 or its equivalent, in the case of Moodys;
(b) lower than A but higher than BB+ or its equivalent, in the case of S&P;
(c) lower than A but higher than BB+ or its equivalent, in the case of Fitch; and
(d) in the event that none of Moodys, S&P or Fitch is then rating such obligation, lower than an equivalent long-term credit rating to those set forth in clauses (a) (c), in the case of any other NRSRO.
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Majority Participants means the Holder(s) of more than 50% of the Outstanding New VMTP Shares.
Managed Assets means the Funds net assets, including assets attributable to any principal amount of any borrowings (including the issuance of commercial paper or notes) or preferred stock outstanding. For the avoidance of doubt, assets attributable to borrowings includes the portion of the Funds assets in a tender option bond trust of which the Fund owns the residual interest (without regard to the value of the residual interest to avoid double counting).
Market Value has the meaning set forth in the Statement.
Moodys means Moodys Investors Service, Inc., and any successor thereto.
Moodys Guidelines means the guidelines, as may be amended from time to time, in connection with Moodys ratings of the New VMTP Shares.
MTP Shares has the meaning set forth in the preamble to this Agreement.
New VMTP Shares has the meaning set forth in the preamble to this Agreement.
1940 Act means the Investment Company Act of 1940, as amended.
NRSRO has the meaning set forth in the Statement.
Nuveen Persons means the Investment Adviser or any affiliated person of the Investment Adviser (as defined in Section 2(a)(3) of the 1940 Act) (other than the Fund, in the case of a redemption or purchase of the New VMTP Shares which are to be cancelled within ten (10) days of purchase by the Fund).
Offering Memorandum means the Offering Memorandum of the Fund relating to the offering and sale of the New VMTP Shares, dated December 10, 2013, as the same may be amended, revised or supplemented from time to time.
Old VMTP Shares has the meaning set forth in the preamble to this Agreement.
Optional Redemption Premium has the meaning set forth in the Statement.
The word or is used in its inclusive sense.
Other Rating Agency means each NRSRO, if any, other than Fitch or Moodys then providing a rating for the New VMTP Shares pursuant to the request of the Fund.
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Other Rating Agency Guidelines means the guidelines provided by each Other Rating Agency, as may be amended from time to time, in connection with the Other Rating Agencys rating of the New VMTP Shares.
Outstanding has the meaning set forth in the Statement.
Overconcentration Amount means as of any date of calculation of the Effective Leverage Ratio for the Fund, an amount equal to the sum of: (i) the Market Value of the Funds assets constituting obligations of issuers within any single state or territory in excess of 25% of the Market Value of the Funds total assets; (ii) the Market Value of the Funds total assets rated Low Investment Grade in excess of 50% of the Market Value of the Funds total assets; (iii) the Market Value of the Funds total assets rated Below Investment Grade in excess of 20% of the Market Value of the Funds total assets; (iv) the Market Value of the Funds total assets that are unrated in excess of 10% of the Market Value of the Funds total assets; (v) the Market Value of the Funds total assets that are obligations of a single issuer and that are rated Investment Grade in excess of 12% of the Market Value of the Funds total assets; (vi) the Market Value of the Funds total assets that are obligations of a single issuer and that are rated Below Investment Grade in excess of 4% of the Market Value of the Funds total assets; and (vii) the Market Value of the Funds assets that constitute exempt interest obligations backed primarily by payments from tobacco companies (excluding such tobacco securities that are Defeased Securities) in excess of 10% of the Funds total assets.
Person has the meaning set forth in the Statement.
Placement Agent means Nuveen Securities, LLC, with respect to the services to be provided pursuant to the Placement Agreement (as defined herein).
Placement Agreement means the placement agreement, dated as of December 10, 2013, among the Fund, the Investment Adviser and the Placement Agent, with respect to the offering and sale of the New VMTP Shares.
Preferred Shares has the meaning set forth in the Statement.
Purchase Price means, in respect of the 1,510 New VMTP Shares sold to Wells Fargo, U.S. $151,000,000.
QIB means a qualified institutional buyer as defined in Rule 144A under the Securities Act.
Rate Period has the meaning set forth in the Statement.
Rating Agency means each of Fitch (if Fitch is then rating the New VMTP Shares), Moodys (if Moodys is then rating the New VMTP Shares), and any Other Rating Agency.
Rating Agency Guidelines means the Fitch Guidelines, Moodys Guidelines and any Other Rating Agency Guidelines as they exist from time to time.
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Redemption and Paying Agent means State Street Bank and Trust Company, or with the prior written consent of Wells Fargo (which consent shall not be unreasonably withheld), any successor Person, which has entered into an agreement with the Fund to act in such capacity as the Funds tender agent, transfer agent, registrar, dividend disbursing agent, paying agent and redemption price disbursing agent and calculation agent in connection with the payment of regularly scheduled dividends with respect to New VMTP Shares.
Registration Rights Agreement means the registration rights agreement entered into between the Fund and Wells Fargo with respect to the New VMTP Shares.
Registration Rights Failure means any (i) failure by the Fund to file a Registration Statement with the Securities and Exchange Commission relating to such of the Registrable Securities (as defined in the Registration Rights Agreement, but excluding any that are properly excluded pursuant to Section 3.3(c) or (d) of the Registration Rights Agreement) which the Fund has been properly requested to register under Section 3.1 of the Registration Rights Agreement within thirty (30) calendar days (or, if the thirtieth calendar day shall not be a Business Day, the next succeeding Business Day) of the later of (a) the date on which the holders of such Registrable Securities are required to give written notice to the Fund of their intent to register such Registrable Securities pursuant to Section 3.1 of the Registration Rights Agreement or (b) if properly exercised by the Fund, the end of any deferral period specified in accordance with the provisions of Section 3.2 of the Registration Rights Agreement, or (ii) failure by the Fund to reply to any written comments on such Registration Statement received by the Fund from the staff of the Securities and Exchange Commission (it being understood that the reply referenced herein shall not require the Fund to accept or agree with any comment, in whole or in part) within thirty (30) calendar days (or, if the thirtieth (30th) calendar day shall not be a Business Day, the next succeeding Business Day) of receipt thereof by the Fund.
Related Documents means this Agreement, the Declaration, the Statement, Registration Rights Agreement, the Placement Agreement, the New VMTP Shares and the By-Laws.
Reporting Date has the meaning set forth in Section 6.1(o).
Reporting Failure has the meaning set forth in Section 2.3.
S&P means Standard & Poors Ratings Services, a Standard & Poors Financial Services LLC business, and any successor or successors thereto.
Securities Act means the U.S. Securities Act of 1933, as amended.
Securities Depository means The Depository Trust Company, New York, New York, and any substitute for or successor to such securities depository that shall maintain a book-entry system with respect to the New VMTP Shares.
Series has the meaning set forth in the Statement.
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Statement means the Statement Establishing and Fixing the Rights and Preferences of Variable Rate MuniFund Term Preferred Shares, dated as of December 9, 2013, as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof.
Sub-Adviser means Nuveen Asset Management, LLC, the Funds sub-adviser, which is a subsidiary of the Investment Adviser.
Term Redemption Date has the meaning set forth in the Statement.
Voting Trust has the meaning set forth in Section 2.2(b).
Week means a period of seven (7) consecutive calendar days.
Wells Fargo has the meaning set forth in the preamble to this Agreement.
Withdrawing Rating Agency has the meaning set forth in Section 6.16 of this Agreement.
written or in writing means any form of written communication, including communication by means of telex, telecopier or electronic mail.
1.1 Incorporation of Certain Definitions by Reference
Each capitalized term used herein and not otherwise defined herein shall have the meaning provided therefor (including by incorporation by reference) in the Related Documents.
ARTICLE II
PURCHASE AND TRANSFERS, COSTS AND EXPENSES; ADDITIONAL FEE
2.1 Purchase and Transfer of New VMTP Shares
(a) On the Effective Date Wells Fargo will acquire 1,510 of the New VMTP Shares sold on initial issuance in a transaction, by payment of the Purchase Price in immediately available funds to the Issuer through the account of its agent at the Securities Depository.
(b) Wells Fargo agrees that it may make offers and sales of the New VMTP Shares in compliance with the Securities Act and applicable state securities laws only to (1)(i) Persons that it reasonably believes are QIBs that are registered closed-end management investment companies, the shares of which are traded on a national securities exchange (Closed-End Funds), banks (or affiliates of banks), insurance companies or registered open-end management investment companies, in each case, pursuant to Rule 144A or another available exemption from registration under the Securities Act, in a manner not involving any public offering within the meaning of Section 4(a)(2) of the Securities Act, (ii) tender option bond trusts in which all investors are Persons that Wells Fargo reasonably believes are QIBs that are Closed-End Funds, banks (or affiliates of banks), insurance companies or registered open-end management investment companies or (iii) other investors with the prior written consent of the Fund and (2) unless the prior written consent of the Fund and the Majority Participants has been obtained, not Nuveen Persons if such Nuveen Persons would, after such sale and transfer, own more than 20% of the Outstanding New VMTP Shares. Any transfer in violation of the foregoing restrictions shall be void ab initio. In connection with any transfer of the New VMTP Shares, each transferee (including, in the case of a tender option bond trust, the depositor or trustee or other fiduciary thereunder acting on behalf of such transferee) will be required to deliver to the Fund a transferee certificate set forth as Exhibit C. The foregoing restrictions on transfer shall not apply to any New VMTP Shares registered under the Securities Act pursuant to the Registration Rights Agreement or any subsequent transfer of such New VMTP Shares thereafter.
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2.2 Operating Expenses; Fees
(a) The Fund shall pay amounts due to be paid by it hereunder (including any incidental expenses but not including redemption or dividend payments on the New VMTP Shares) as operating expenses.
(b) On the Effective Date, the Fund shall pay up to $40,000 of the fees and expenses of Wells Fargos outside counsel in connection with (i) the negotiation and documentation of the transactions contemplated by this Agreement and (ii) the initial organization and set up of a voting trust to be formed with respect to the New VMTP Shares (the Voting Trust).
(c) The Fund shall pay up to $16,250 annually, beginning with the calendar year ending December 31, 2013, of the fees and expenses incurred by Wells Fargo in connection with ongoing maintenance and operation of the Voting Trust, until the earliest to occur of (1) the termination of the Voting Trust; (2) Wells Fargos transfer or sale of all of the New VMTP Shares; (3) the Term Redemption Date; and (4) the termination of this Agreement pursuant to Section 7.6 hereof.
(d) With respect to the fees and expenses described in subsection (c) of this Section 2.2, the Fund will pay such fees and expenses within thirty (30) days of receipt of the associated invoice. For avoidance of doubt, the Funds responsibilities with respect to the fees and expenses described in subsections (b) (ii) and (c) are exclusive of each other.
2.3 Additional Fee for Failure to Comply with Reporting Requirement or Registration Rights Failure
For so long as Wells Fargo is a Holder or Designated Owner of any Outstanding New VMTP Shares, if the Fund fails to comply with the reporting requirements set forth in Sections 6.1(o) and 6.1(p) (except as a result of a Force Majeure Exception) and such failure is not cured within three (3) Business Days after written notification to the Fund by Wells Fargo of such failure (a Reporting Failure) or a Registration Rights Failure occurs, the Fund shall pay to Wells Fargo on the Dividend Payment Date occurring in the month immediately following a month in which either such Reporting Failure or Registration Failure (either, a Failure) continues a fee calculated in respect of each Week (or portion thereof) during such month in respect of a Failure and beginning on the date of such Failure, equal to the product of (a) the Fee Rate, times (b) the aggregate average daily Liquidation Preference of the New VMTP Shares held by Wells Fargo during such Week or portion thereof, times (c) the quotient of the number of days in such Week or portion thereof divided by the number of calendar days in the year in which such Week or portion thereof occurs. Notwithstanding the foregoing, in no event shall (i) the fee payable pursuant to this Section 2.3 hereunder for any Week plus the Applicable Spread on the New VMTP Shares for such Week exceed an amount (exclusive of any Additional Amount Payment) equal to the product of (x) 5.95%, times (y) the aggregate average daily Liquidation Preference of the New VMTP Shares held by Wells Fargo during such Week or portion thereof, times (z) the quotient of the number of days in such Week or portion thereof divided by the number of calendar days in the year in which such Week or portion thereof occurs; (ii) the fee payable pursuant to this Section 2.3 for any Week plus the amount of dividends payable at the Dividend Rate for the New VMTP Shares for such Week exceed an amount equal to the product of (aa) 15%, times (bb) the aggregate average daily Liquidation Preference of the New VMTP Shares held by Wells Fargo during such Week or portion thereof, times (cc) the quotient of the number of days in such Week or portion thereof divided by the number of calendar days in the year in which such Week or portion thereof occurs; or (iii) the Fund be required to calculate or pay a fee in respect of more than one Failure in any Week.
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ARTICLE III
CONDITIONS TO EFFECTIVE DATE
It shall be a condition to the Effective Date that each of the following conditions shall have been satisfied or waived as of such date, and upon such satisfaction or waiver, this Agreement shall be effective:
(a) this Agreement shall have been duly executed and delivered by the parties hereto;
(b) the New VMTP Shares shall have a long-term issue credit rating of AAA (or its equivalent) from Fitch and Aa1 (or its equivalent) from Moodys on the Effective Date;
(c) receipt by Wells Fargo of executed originals, or copies certified by a duly authorized officer of the Fund to be in full force and effect and not otherwise amended, of all Related Documents, as in effect on the Effective Date, and an incumbency certificate with respect to the authorized signatories thereto;
(d) receipt by Wells Fargo of opinions of counsel for the Fund, substantially to the effect of Exhibit A;
(e) except as disclosed in the Offering Memorandum, there shall not be any pending or threatened material litigation (unless such pending or threatened litigation has been determined by Wells Fargo to be acceptable);
(f) the fees and expenses and all other amounts payable on the Effective Date pursuant to Section 2.2(b) hereof shall have been paid;
(g) Wells Fargo, in its reasonable discretion, shall be satisfied that no change in law, rule or regulation (or their interpretation or administration), in each case, shall have occurred which will adversely affect the consummation of the transactions contemplated by this Agreement;
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(h) there shall have been delivered to Wells Fargo any additional documentation and financial information, including satisfactory responses to its due diligence inquiries, as it deems relevant; and
(i) there shall have been delivered to Wells Fargo such information and copies of documents, approvals (if any) and records certified, where appropriate, of corporate proceedings as Wells Fargo may have requested relating to the Funds entering into and performing this Agreement and the other Related Documents to which it is a party, and the transactions contemplated hereby and thereby.
The Fund and Wells Fargo agree that consummation of the purchase and sale of the New VMTP Shares pursuant to this Agreement shall constitute acknowledgment that the foregoing conditions have been satisfied or waived.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE FUND
The representations and warranties set out in this Article IV are given hereunder by the Fund to Wells Fargo as of the Effective Date.
4.1 Existence
The Fund is validly existing and in good standing as a business trust under the laws of the Commonwealth of Massachusetts, with full right and power to issue the New VMTP Shares, and to execute, deliver and perform its obligations under this Agreement and each Related Document.
4.2 Authorization; Contravention
The execution, delivery and performance by the Fund of this Agreement and each Related Document are within the Funds powers, have been duly authorized by all necessary action, require no action by or in respect of, or filing with, any governmental body, agency or official except such as have been taken or made and do not violate or contravene, or constitute a default under, any provision of applicable law, charter, ordinance or regulation or of any material agreement, judgment, injunction, order, decree or other instrument binding upon the Fund or result in the creation or imposition of any lien or encumbrance on any asset of the Fund.
4.3 Binding Effect
Each of this Agreement and the Registration Rights Agreement constitutes a valid and binding agreement of the Fund, enforceable in accordance with its terms except as (i) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors rights generally and (ii) the availability of equitable remedies may be limited by equitable or public policy principles of general applicability, it being understood that the enforceability of indemnification provisions may be subject to limitations imposed under applicable securities laws. The New VMTP Shares have been duly authorized and, when issued upon payment therefor by Wells Fargo as contemplated by this Agreement, will be validly issued by the Fund and are fully paid and, except as described in the Offering Memorandum, nonassessable, and are free of any pre-emptive or similar rights.
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4.4 Financial Information
The financial statements of the Fund as of its most recent fiscal year-end, and the auditors report with respect thereto, copies of which have heretofore been furnished to Wells Fargo, fairly present in all material respects the financial condition of the Fund, at such date and for such period, and were prepared in accordance with accounting principles generally accepted in the United States, consistently applied (except as required or permitted and disclosed). Since the most recent fiscal year-end of the Fund, there has been no material adverse change in the condition (financial or otherwise) or operations of the Fund, except as disclosed in the Offering Memorandum, other than changes in the general economy or changes affecting the market for municipal securities or investment companies generally. Any financial, budget and other projections furnished to Wells Fargo were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair and reasonable in light of conditions existing at the time of delivery of such financial, budget or other projections, and represented, and as of the date of this representation, represent, the Funds reasonable best estimate of the Funds future financial performance.
4.5 Litigation
Except as disclosed in the Offering Memorandum or in a schedule delivered to Wells Fargo prior to the Effective Date, no action, suit, proceeding or investigation is pending or (to the best knowledge of the Fund) overtly threatened in writing against the Fund in any court or before any governmental authority (i) in any way contesting or, if decided adversely, that would affect the validity of any Related Document or this Agreement; or (ii) in which a final adverse decision would materially adversely affect provisions for or materially adversely affect the sources for payment of Liquidation Preference of or dividends on the New VMTP Shares.
4.6 Consents
All consents, licenses, approvals, validations and authorizations of, and registrations, validations or declarations by or with, any shareholder, court or any governmental agency, bureau or agency required to be obtained in connection with the execution, delivery, performance, validity or enforceability of this Agreement and the other Related Documents (including the New VMTP Shares) by or against the Fund have been obtained and are in full force and effect.
4.7 Incorporation of Additional Representations and Warranties
On subjects not expressly covered by this Agreement, the Fund hereby makes to Wells Fargo those same representations and warranties on additional subjects as were made by it in the Placement Agreement as of the date or dates indicated therein, which representations and warranties, together with the related definitions of terms therein, are hereby incorporated by reference with the same effect as if each and every such representation and warranty and definition were set forth herein in its entirety.
4.8 Complete and Correct Information
All information, reports and other papers and data with respect to the Fund furnished to Wells Fargo (other than financial information and financial statements, which are covered solely by Section 4.4 of this Agreement) were, at the time the same were so furnished, complete and correct in all material respects. No fact is known to the Fund that materially and adversely affects or in the future may (so far as it can reasonably foresee) materially and adversely affect the New VMTP Shares, or the Funds ability to repay when due its obligations under this Agreement, any of the New VMTP Shares and the Related Documents that has not been set forth in the Offering Memorandum or in the financial information and other documents referred to in Section 4.4 or this Section 4.8 or in such information, reports, papers and data or otherwise made available or disclosed in writing to Wells Fargo. Taken as a whole, the documents furnished and statements made by the Fund in connection with the negotiation, preparation or execution of this Agreement and the Related Documents do not contain untrue statements of material facts or omit to state material facts necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading.
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4.9 Offering Memorandum
The Offering Memorandum, true copies of which have heretofore been delivered to Wells Fargo, when considered together with this Agreement and any information made available pursuant to the Due Diligence Request or disclosed in writing to Wells Fargo prior to the Effective Date in connection with this Agreement, does not contain any untrue statement of a material fact and such Offering Memorandum does not omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
4.10 1940 Act Registration
The Fund is duly registered as a closed-end management investment company under the 1940 Act and such registration is in full force and effect.
4.11 Effective Leverage Ratio; Asset Coverage
As of the Effective Date, the Fund is in compliance with the Effective Leverage Ratio and the Asset Coverage as required by Section 2.4 of the Statement.
In connection with calculating the Effective Leverage Ratio, the Funds total assets and accrued liabilities reflect the positive or negative net obligations of the Fund under each Derivative Contract determined in accordance with the Funds valuation policies.
For purposes of calculating the Effective Leverage Ratio for purposes of the representation contained in the second preceding paragraph, any Overconcentration Amount has been subtracted from the sum determined pursuant to sub-section (ii) of the definition of Effective Leverage Ratio, set out in Section 2.4(d) of the Statement.
4.12 Investment Policies
As of the Effective Date, the Fund owns only Eligible Assets, as described in Exhibit B to this Agreement.
4.13 Credit Quality
As of the Effective Date, the Fund (1) has invested at least 80% of its Managed Assets in investment grade securities that, at the time of investment, were rated within the four highest grades (Baa or BBB or better) by at least one NRSRO or were unrated but judged to be of comparable quality by the Sub-Adviser; (2) has invested up to 20% of its Managed Assets in municipal securities that at the time of investment were rated below investment grade or were unrated but judged to be of comparable quality by the Sub-Adviser, provided that the Fund has invested no more than 10% of the Funds Managed Assets in municipal securities that, at the time of investment, were rated below both B3 and B- or that were unrated but judged to be of comparable quality by the Sub-Adviser; and (3) has no investments in non-municipal securities that, at the time of investment, were rated below Baa3 or BBB-.
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4.14 Due Diligence
The Fund understands that nothing in this Agreement, the Offering Memorandum, or any other materials presented to the Fund in connection with the purchase and sale of the New VMTP Shares constitutes legal, tax or investment advice from Wells Fargo. The Fund has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its sale of the New VMTP Shares.
4.15 Certain Fees
The Fund acknowledges that, other than the fees and expenses payable pursuant to this Agreement, and any fees or amounts payable to the Placement Agent by the Fund, no brokerage or finders fees or commissions are or will be payable by the Fund or, to the Funds knowledge, by Wells Fargo to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement.
ARTICLE V
REPRESENTATIONS AND WARRANTIES
OF WELLS FARGO
The representations and warranties set out in this Article V are given hereunder by Wells Fargo to the Fund as of the Effective Date.
5.1 Existence
Wells Fargo is validly existing and in good standing as a national banking association under the laws of the United States, and has full right and power to purchase the New VMTP Shares and to execute, deliver and perform its obligations under this Agreement and each Related Document to which it is a party.
5.2 Authorization; Contravention
The execution, delivery and performance by Wells Fargo of this Agreement and each Related Document to which it is a party are within Wells Fargos powers, have been duly authorized by all necessary action, require no action by or in respect of, or filing with, any governmental body, agency or official except such as have been taken or made and do not violate or contravene, or constitute a default under, any provision of applicable law, charter, ordinance or regulation or of any material agreement, judgment, injunction, order, decree or other instrument binding upon Wells Fargo.
5.3 Binding Effect
Each of this Agreement and, with respect to Wells Fargo, the Registration Rights Agreement, constitutes a valid and binding agreement of Wells Fargo, enforceable in accordance with its terms except as (i) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors rights generally and (ii) the availability of equitable remedies may be limited by equitable or public policy principles of general applicability, it being understood that the enforceability of indemnification provisions may be subject to limitations imposed under applicable securities laws.
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5.4 Own Account
Wells Fargo understands that the New VMTP Shares are restricted securities and have not been registered under the Securities Act or any applicable state securities laws and Wells Fargo is acquiring the New VMTP Shares as principal for its own account and not with a view to or for the purpose of distributing or reselling such securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such New VMTP Shares in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such New VMTP Shares in violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting Wells Fargos right to register the New VMTP Shares under the Securities Act pursuant to the Registration Rights Agreement or otherwise transfer the New VMTP Shares in compliance with the transfer limitations of this Agreement in compliance with applicable federal and state securities laws).
5.5 Litigation
Except as disclosed in a schedule delivered to the Fund prior to the Effective Date, no action, suit, proceeding or investigation is pending or (to the best knowledge of Wells Fargo) overtly threatened in writing against Wells Fargo in any court or before any governmental authority in any way contesting or, if decided adversely, would affect the validity of this Agreement.
5.6 Consents
All consents, licenses, approvals, validations and authorizations of, and registrations, validations or declarations by or with, any court or any governmental agency, bureau or agency required to be obtained by Wells Fargo in connection with the execution, delivery, performance, validity or enforceability of this Agreement and the purchase of the New VMTP Shares have been obtained and are in full force and effect.
5.7 Wells Fargo Status
At the time Wells Fargo was offered the New VMTP Shares, it was, and as of the Effective Date it is: (i) an accredited investor as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a qualified institutional buyer as defined in Rule 144A(a) under the Securities Act.
5.8 Experience of Wells Fargo
Wells Fargo has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the New VMTP Shares, and has so evaluated the merits and risks of such investment. Wells Fargo is able to bear the economic risk of an investment in the New VMTP Shares and, at the present time, is able to afford a complete loss of such investment.
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5.9 Access to Information
Wells Fargo acknowledges that it has had access to and has reviewed all information, documents and records that Wells Fargo has deemed necessary in order to make an informed investment decision with respect to an investment in the New VMTP Shares. Wells Fargo has had the opportunity to ask representatives of the Fund certain questions and request certain additional information regarding the terms and conditions of such investment and the finances, operations, business and prospects of the Fund and has had any and all such questions and requests answered to Wells Fargos satisfaction; and Wells Fargo understands the risk and other considerations relating to such investment.
5.10 Certain Transactions
Other than consummating the transactions contemplated by this Agreement, Wells Fargo has not directly or indirectly executed, nor has any Person acting on its behalf or pursuant to any understanding with Wells Fargo executed, any other purchases of securities of the Fund which may be integrated with the transactions contemplated by this Agreement.
5.11 Due Diligence
Wells Fargo acknowledges that it has sole responsibility for its own due diligence investigation and its own investment decision relating to the New VMTP Shares. Wells Fargo understands that nothing in this Agreement, the Offering Memorandum, or any other materials presented to Wells Fargo in connection with the purchase of the New VMTP Shares constitutes legal, tax or investment advice from the Fund. Wells Fargo has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with the purchase of the New VMTP Shares.
5.12 Certain Fees
Wells Fargo acknowledges that, other than the fees and expenses payable pursuant to this Agreement, and any fees or amounts payable to the Placement Agent by the Fund, no brokerage or finders fees or commissions are or will be payable by Wells Fargo to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement.
ARTICLE VI
COVENANTS OF THE FUND
The Fund agrees that, so long as there is any amount payable hereunder or Wells Fargo owns any Outstanding New VMTP Shares:
6.1 Information
Without limitation of the other provisions of this Agreement, the Fund will deliver, or direct the Redemption and Paying Agent to deliver, to Wells Fargo:
(a) as promptly as practicable after the preparation and filing thereof with the Securities and Exchange Commission, each annual and semi-annual report prepared with respect to the Fund, which delivery may be made by notice of the electronic availability of any such document on a public website;
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(b) notice of any change in (including being put on Credit Watch or Watchlist), or suspension or termination of, the ratings on the New VMTP Shares by any Rating Agency (and any corresponding change in the Rating Agency Guidelines applicable to the New VMTP Shares associated with any such change in the rating from any Rating Agency) or any change of a Rating Agency rating the New VMTP Shares as promptly as practicable upon the occurrence thereof;
(c) notice of any redemption or other repurchase of any or all of the New VMTP Shares as provided in the Statement;
(d) notice of any proposed amendments to any of the Related Documents at such time as the amendments are sent to other parties whose approval is required for such amendment and in any event not less than ten (10) Business Days prior to any proposed amendment and copies of all actual amendments thereto within five (5) Business Days of being signed or, in each case, as provided in the relevant document;
(e) notice of any missed, reduced or deferred dividend payment on the New VMTP Shares that remains uncured for more than three (3) Business Days as soon as reasonably practicable, but in no event later than one (1) Business Day after expiration of the foregoing grace period;
(f) notice of the failure to make any deposit provided for under Section 2.5(d) of the Statement in respect of a properly noticed redemption as soon as reasonably practicable, but in no event later than two (2) Business Days after discovery of such failure to make any such deposit;
(g) notice of non-compliance with the Rating Agency Guidelines (if applicable) for more than five (5) Business Days as soon as reasonably practicable, but in no event later than one (1) Business Day after expiration of the foregoing grace period;
(h) notice of the distribution of net capital gains or ordinary income one (1) Business Day in advance of the Rate Period that such net capital gains or ordinary income will or may be distributed, simultaneously with the Redemption and Paying Agent providing such notice to Designated Owners or their Agent Members;
(i) notice of any change to any investment adviser or sub-adviser of the Fund within two (2) Business Days after a resignation or a notice of removal has been sent by or to any such investment adviser or sub-adviser;
(j) notice of any proxy solicitation as soon as reasonably practicable, but in no event later than five (5) Business Days after mailing thereof;
(k) notice one (1) Business Day after the occurrence thereof of (i) the failure of the Fund to pay the amount due on any senior securities (as defined under the 1940 Act) or other debt at the time outstanding, and any period of grace or cure with respect thereto shall have expired; (ii) the failure of the Fund to pay, or admitting in writing its inability to pay, its debts generally as they become due; or (iii) the failure of the Fund to pay accumulated dividends on any additional preferred stock ranking pari passu with the New VMTP Shares, and any period of grace or cure with respect thereto shall have expired;
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(l) notice of a material breach of any representation, warranty or covenant of the Fund contained in this Agreement, the Registration Rights Agreement or the Statement, in each case, only if any officer of the Fund has actual knowledge of such breach as soon as reasonably practicable, but in no event later than five (5) days after knowledge of any officer of the Fund or the Investment Adviser thereof;
(m) notice of any litigation, administrative proceeding or business development which may reasonably be expected to materially adversely affect the Funds business, properties or affairs or the ability of the Fund to perform its obligations as set forth hereunder or under any of the Related Documents to which it is a party as soon as reasonably practicable, but in no event later than ten (10) days after knowledge of any officer of the Fund or the Investment Adviser thereof;
(n) upon request of Wells Fargo, copies of any material that the Fund has delivered to each Rating Agency which is then rating New VMTP Shares at such times and containing such information as set forth in the respective Rating Agency Guidelines as soon as reasonably practicable after such material has been sent;
(o) on the fifteenth (15th) and last day of each month (each a Reporting Date), a report of portfolio holdings of the Fund as of the end of the Business Day immediately preceding each such Reporting Date, prepared on a basis substantially consistent with the periodic reports of portfolio holdings of the Fund prepared for financial reporting purposes;
(p) on the fifteenth (15th) and last day of each month, the information set forth in Exhibit D to this Agreement and a calculation of the Effective Leverage Ratio and the Asset Coverage of the Fund as of the close of business of each Business Day since the date of the last report issued pursuant to this Section 6.1(p); and upon the failure of the Fund to maintain Asset Coverage as provided in Section 2.4(a) of the Statement or the Effective Leverage Ratio as required by Section 2.4(c) of the Statement, notice of such failure within one (1) Business Day of the occurrence thereof; and
(q) from time to time such additional information regarding the financial position, results of operations or prospects of the Fund as Wells Fargo may reasonably request including, without limitation, copies of all offering memoranda or other offering material with respect to the sale of any securities of the Fund as soon as reasonably practicable, but in no event later than ten (10) days after a request.
All information, reports and other papers, documentation and data with respect to the Fund furnished to Wells Fargo pursuant to this Section 6.1 shall be, at the time the same are so furnished, complete and correct in all material respects and, when considered with all other material delivered to Wells Fargo under this Agreement, or made available pursuant to the Due Diligence Request, will not contain untrue statements of material facts or omit to state material facts necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading. For purposes of Sections 6.1(o) and 6.1(p) , references to any day that is not a Business Day shall mean the next preceding Business Day.
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6.2 No Amendment or Certain Other Actions Without Consent of Wells Fargo
To the extent that Wells Fargo is the Holder or Designated Owner of 100% of the New VMTP Shares, without the prior written consent of Wells Fargo, the Fund will not agree to, consent to or permit any amendment, supplement, modification or repeal of the Statement or any provision therein, nor waive any provision thereof.
6.3 Maintenance of Existence
The Fund shall continue to maintain its existence as a business trust under the laws of the Commonwealth of Massachusetts, with full right and power to issue the New VMTP Shares and to execute, deliver and perform its obligations under this Agreement and each Related Document.
6.4 Tax Status of the Fund
The Fund will qualify as a Regulated Investment Company within the meaning of Section 851(a) of the Code and the dividends made with respect to the New VMTP Shares will qualify as exempt interest dividends to the extent they are reported as such by the Fund and permitted by Section 852(b)(5)(A) of the Code.
6.5 Payment Obligations
The Fund shall promptly pay or cause to be paid all amounts payable by it hereunder and under the Related Documents, according to the terms hereof and thereof, shall take such actions as may be necessary to include all payments hereunder and thereunder which are subject to appropriation in its budget and make full appropriations related thereto, and shall duly perform each of its obligations under this Agreement and the Related Documents. All payments of any sums due hereunder shall be made in the amounts required hereunder without any reduction or setoff, notwithstanding the assertion of any right of recoupment or setoff or of any counterclaim by the Fund.
6.6 Compliance With Law
The Fund shall comply with all laws, ordinances, orders, rules and regulations that may be applicable to it if the failure to comply could have a material adverse effect on the Funds ability to pay when due its obligations under this Agreement, any of the New VMTP Shares, or any of the other Related Documents.
6.7 Maintenance of Approvals: Filings, Etc.
The Fund shall at all times maintain in effect, renew and comply with all the terms and conditions of all consents, filings, licenses, approvals and authorizations as may be necessary under any applicable law or regulation for its execution, delivery and performance of this Agreement and the other Related Documents to which it is a party.
6.8 Inspection Rights
The Fund shall, at any reasonable time and from time to time, upon reasonable notice, permit Wells Fargo or any agents or representatives thereof, at the Funds expense, to examine and make copies of the records and books of account related to the transactions contemplated by this Agreement, to visit its properties and to discuss its affairs, finances and accounts with any of its officers and independent accountants, to the extent permitted by law, provided, however, that the Fund shall not be required to pay for more than one inspection per fiscal year. The Fund will not unreasonably withhold its authorization for its independent accountants to discuss its affairs, finances and accounts with Wells Fargo.
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All information, reports and other papers, documentation and data with respect to the Fund furnished to Wells Fargo pursuant to this Section 6.8 shall be, at the time the same are so furnished, complete and correct in all material respects and, when considered with all other material delivered to Wells Fargo under this Agreement, or made available pursuant to the Due Diligence Request, will not contain untrue statements of material facts or omit to state material facts necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading.
6.9 Litigation, Etc.
The Fund shall give prompt notice in writing to Wells Fargo of any litigation, administrative proceeding or business development which is reasonably expected to materially adversely affect its business, properties or affairs or to impair the ability of the Fund to perform its obligations as set forth hereunder or under any of the Related Documents.
All information, reports and other papers, documentation and data with respect to the Fund furnished to Wells Fargo pursuant to this Section 6.9 shall be, at the time the same are so furnished, complete and correct in all material respects and, when considered with all other material delivered to Wells Fargo under this Agreement, or made available pursuant to the Due Diligence Request, will not contain untrue statements of material facts or omit to state material facts necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading.
6.10 1940 Act Registration
The Fund shall maintain its valid registration as a registered closed-end company under the 1940 Act in full force and effect.
6.11 Eligible Assets
The Fund shall only make investments in the Eligible Assets listed on Exhibit B, as amended from time to time with the prior written consent of Wells Fargo, in accordance with the Funds investment objectives and the investment policies set forth in the Offering Memorandum.
6.12 Credit Quality
Unless the Fund receives the prior written consent of Wells Fargo (such consent to be determined in Wells Fargos good faith discretion), the Fund (1) will invest at least 80% of its Managed Assets in investment grade securities that, at the time of investment, are rated within the four highest grades (Baa (or its equivalent) or BBB (or its equivalent) or better) by at least one NRSRO or are unrated but judged to be of comparable quality by the Sub-Adviser; (2) may invest up to 20% of its Managed Assets in municipal securities that, at the time of investment, are rated below investment grade or are unrated but judged to be of comparable quality by the Sub-Adviser, provided that the Fund may invest no more than 10% of the Funds Managed Assets in municipal securities that, at the time of investment, are rated below both B3 (or its equivalent) and B- (or its equivalent) or that are unrated but judged to be of comparable quality by the Sub-Adviser; and (3) will not invest in any non-municipal securities that, at the time of investment, are rated below Baa3 (or its equivalent) or BBB- (or its equivalent).
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6.13 Maintenance of Effective Leverage Ratio
For so long as the Fund fails to provide the information required under Sections 6.1(o) and 6.1(p), Wells Fargo shall calculate, for purposes of Section 2.5(b)(ii)(A)(y) of the Statement, the Effective Leverage Ratio using the most recently received information required to be delivered pursuant to Sections 6.1(o) and 6.1(p) and the market values of securities determined by the third-party pricing service which provided the market values to the Fund on the most recent date that information was properly provided by the Fund pursuant to the requirements of Section 6.1(o) and 6.1(p). The Effective Leverage Ratio as calculated by Wells Fargo in such instances shall be binding on the Fund. If required, the Fund shall restore the Effective Leverage Ratio as provided in the Statement. For purposes of calculating the Effective Leverage Ratio, any Overconcentration Amount shall be subtracted from the sum determined pursuant to sub-section (ii) of the definition of Effective Leverage Ratio, set out in Section 2.4(d) of the Statement.
In connection with calculating the Effective Leverage Ratio, the Funds total assets and accrued liabilities shall reflect the positive or negative net obligations of the Fund under each Derivative Contract determined in accordance with the Funds valuation policies.
6.14 Redemption and Paying Agent
The Fund shall use its commercially reasonable best efforts to engage at all times a Redemption and Paying Agent to perform the duties to be performed by the Redemption and Paying Agent specified herein and in the Statement.
6.15 Cooperation in the Sale of New VMTP Shares
The Fund will comply with reasonable due diligence requests from Wells Fargo in connection with any proposed sale by Wells Fargo of the New VMTP Shares in a transaction exempt from registration and otherwise permitted by this Agreement, provided that the Fund need not comply with any such request more than twice in any period of twelve consecutive months and any prospective purchaser of the New VMTP Shares from Wells Fargo shall execute a confidentiality agreement substantially to the effect of Section 7.13 hereof prior to receiving any due diligence materials provided pursuant to such due diligence request.
All information, reports and other papers, documentation and data with respect to the Fund furnished to Wells Fargo pursuant to this Section 6.15 shall be, at the time the same are so furnished, complete and correct in all material respects and, when considered with all other material delivered to Wells Fargo under this Agreement, or made available pursuant to the Due Diligence Request, will not contain untrue statements of material facts or omit to state material facts necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading.
6.16 Rating Agencies
In the event that the New VMTP Shares are rated by a single Rating Agency and such Rating Agency withdraws the credit rating (the Withdrawing Rating Agency) required to be maintained with respect to the New VMTP Shares pursuant to Section 2.7 of the Statement due to the Withdrawing Rating Agencys ceasing to rate tax-exempt closed-end management investment companies generally and such withdrawal is continuing:
(a) | the Fund shall use commercially reasonable efforts to secure a rating with respect to the New VMTP Shares from an Other Rating Agency; |
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(b) | the Applicable Spread will be calculated using the Applicable Percentage corresponding to the latest Withdrawing Rating Agencys rating with respect to the New VMTP Shares; and |
(c) | in the event that the Fund is unable to secure another rating on the New VMTP Shares from an Other Rating Agency, the Applicable Spread will be calculated in accordance with Section 6.16(b) above. |
6.17 Securities Depository
The Fund agrees to maintain settlement of the New VMTP Shares in global book entry form through the Securities Depository or such other clearance system acceptable to Wells Fargo.
6.18 Future Agreements
The Fund shall promptly, at the request of Wells Fargo, enter into an agreement, on terms mutually satisfactory to the Fund and Wells Fargo, of the type specified in Section 12(d)(1)(E)(iii) of the 1940 Act, so as to permit Wells Fargo or any transferee satisfying the requirements set forth in Section 2.1 to rely on the provisions of Section 12(d)(1)(E)(iii) of the 1940 Act.
6.19 Use of Proceeds
The Fund shall use the net proceeds from the sale of New VMTP Shares to redeem all outstanding MTP Shares and Old VMTP Shares within 45 days of the Effective Date and pending such redemption the Fund shall invest such net proceeds in Deposit Securities. Within two (2) Business Days of the Effective Date, the Fund shall deposit with the Redemption and Paying Agent an amount of Deposit Securities sufficient to redeem the MTP Shares and Old VMTP Shares. Any remaining net proceeds will be invested in accordance with the Funds investment policies.
ARTICLE VII
MISCELLANEOUS
7.1 Notices
All notices, requests and other communications to any party hereunder shall be in writing (including telecopy, electronic mail or similar writing), except in the case of notices and other communications permitted to be given by telephone, and shall be given to such party at its address or telecopy number or email address set forth below or such other address or telecopy number or email address as such party may hereafter specify for the purpose by notice to the other parties. Each such notice, request or other communication shall be effective when delivered at the address specified in this Section; provided that notices to Wells Fargo under Section 6.1 shall not be effective until received in writing; except as otherwise specified, notices under Section 6.1 may be given by telephone to Wells Fargo at the telephone numbers listed below (or such other telephone numbers as may be designated by Wells Fargo, by written notice to the Fund, to receive such notice), immediately confirmed in writing, including by fax or electronic mail. The notice address for each party is specified below:
(a) if to the Fund:
Nuveen AMT-Free Municipal Income Fund
333 W. Wacker Drive; Suite 3300
Chicago, IL 60606
Attention: Gifford R. Zimmerman, Chief Administrative Officer
Telephone: (312) 917-7945
Facsimile: (312) 917-7952
Email: giff.zimmerman@nuveen.com
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(b) | if to Wells Fargo: |
Wells Fargo Municipal Capital Strategies, LLC
c/o Wells Fargo Bank, National Association
375 Park Avenue
New York, New York 10152
Attention: Adam Joseph
Telephone: (212) 214-5502
Facsimile: (212) 214-8971
Email: adam.joseph@wellsfargo.com
Wire Instructions:
Bank Routing Number: 121000248
Bank Name: Wells Fargo Bank, N.A.
Account Number: 00029162812407
Attention: ATTN Tim HyreARS Dividend
Reference: CUSIP 670657 881
7.2 No Waivers
(a) The obligations of the Fund hereunder shall not in any way be modified or limited by reference to any other document, instrument or agreement (including, without limitation, the New VMTP Shares or any other Related Document). The rights of Wells Fargo hereunder are separate from and in addition to any rights that any Holder or Designated Owner of any New VMTP Share may have under the terms of such New VMTP Share or any Related Document or otherwise.
(b) No failure or delay by the Fund or Wells Fargo in exercising any right, power or privilege hereunder or under the New VMTP Shares shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. No failure or delay by the Fund or Wells Fargo in exercising any right, power or privilege under or in respect of the New VMTP Shares or any other Related Document shall affect the rights, powers or privileges of the Fund or Wells Fargo hereunder or shall operate as a limitation or waiver thereof. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.
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7.3 Expenses and Indemnification
(a) The Fund shall upon demand either, as Wells Fargo may require, pay in the first instance or reimburse Wells Fargo (to the extent that payments for the following items are not made under the other provisions hereof) for all reasonable out-of-pocket expenses (including reasonable fees and costs of outside counsel, and reasonable consulting, accounting, appraisal, investment banking, and similar professional fees and charges) incurred by Wells Fargo in connection with the enforcement of or preservation of rights under this Agreement. The Fund shall not be responsible under this Section 7.3(a) for the fees and costs of more than one law firm in any one jurisdiction with respect to any one proceeding or set of related proceedings for Wells Fargo, unless Wells Fargo shall have reasonably concluded that there are legal defenses available to it that are different from or additional to those available to the Fund.
(b) The Fund agrees to indemnify and hold harmless Wells Fargo and each other Indemnified Person of Wells Fargo from and against any losses, claims, damages, liabilities and reasonable out-of-pocket expenses incurred by them (including reasonable fees and disbursements of outside counsel) which are related to or arise out of (A) any material misstatements or any material statements omitted to be made in the Offering Memorandum (including any documents incorporated by reference therein) or (B) any claim by any third party relating to the offering or sale of the New VMTP Shares by Wells Fargo (x) that Wells Fargo aided and abetted a breach of a fiduciary duty by the Fund or any director or officer of the Fund or (y) arising from any act by the Fund or any director or officer of the Fund (excluding in any such case clauses (A) or (B), claims, losses, liabilities or expenses arising out of or resulting from the gross negligence or willful misconduct of any Indemnified Party as determined by a court of competent jurisdiction).
(c) The indemnifying party also agrees that if any indemnification sought by an Indemnified Person pursuant to this Agreement is unavailable or insufficient, for any reason, to hold harmless the Indemnified Persons of such other party in respect of any losses, claims, damages or liabilities (or actions in respect thereof), then the indemnifying party, in order to provide for just and equitable contribution, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, liabilities, damages and expenses (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the Fund on the one hand and Wells Fargo on the other hand from the actual or proposed transactions giving rise to or contemplated by this Agreement or (ii) if the allocation provided by the foregoing clause (i) is not permitted by applicable law, not only such relative benefits but also the relative fault of the Fund on the one hand and Wells Fargo on the other, in connection with the statements or omissions or alleged statements or omissions that resulted in such losses, claims, damages, liabilities or expenses (or actions in respect thereof), as well as any other relevant equitable considerations; provided that in any event the aggregate contribution of Wells Fargo and its Indemnified Persons to all losses, claims, damages, liabilities and expenses with respect to which contributions are available hereunder will not exceed the amount of dividends actually received by Wells Fargo from the Fund pursuant to the proposed transactions giving rise to this Agreement. For purposes of determining the relative benefits to the Fund on the one hand, and Wells Fargo on the other, under the proposed transactions giving rise to or contemplated by this Agreement, such benefits shall be deemed to be in the same proportion as (i) the total value received or proposed to be received by the Fund pursuant to the transactions, whether or not consummated bears to (ii) the dividends and Optional Redemption Premium paid by the Fund to Wells Fargo in connection with the proposed transactions giving rise to or contemplated by this Agreement. The relative fault of the parties shall be determined by reference to, among other things, whether the actions taken or omitted to be taken in connection with the proposed transactions contemplated by this Agreement (including any misstatement of a material fact or the omission to state a material fact) relates to information supplied by the Fund on the one hand, or Wells Fargo on the other, the parties relative intent, knowledge, access to information and opportunity to correct or prevent such action, misstatement or alleged omission, and any other equitable considerations appropriate in the circumstances. No person found liable for a fraudulent misrepresentation shall be entitled to contribution from any person who is not also found liable for such fraudulent misrepresentation. The indemnity, reimbursement and contribution obligations under this Agreement shall be in addition to any rights that any Indemnified Person may have at common law or otherwise.
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(d) If any action, suit, proceeding or investigation is commenced, as to which an Indemnified Person proposes to demand indemnification, it shall notify the indemnifying party with reasonable promptness; provided, however, that any failure by such Indemnified Person to notify the indemnifying party shall not relieve the indemnifying party from its obligations hereunder (except to the extent that the indemnifying party is materially prejudiced by such failure to promptly notify). The indemnifying party shall be entitled to assume the defense of any such action, suit, proceeding or investigation, including the employment of counsel reasonably satisfactory to the Indemnified Person. The Indemnified Person shall have the right to counsel of its own choice to represent it, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the indemnifying party has failed promptly to assume the defense and employ counsel reasonably satisfactory to the Indemnified Person in accordance with the preceding sentence or (ii) the Indemnified Person shall have been advised by counsel that there exist actual or potential conflicting interests between the indemnifying party and such Indemnified Person, including situations in which one or more legal defenses may be available to such Indemnified Person that are different from or additional to those available to the indemnifying party; provided, however, that the indemnifying party shall not, in connection with any one such action or proceeding or separate but substantially similar actions or proceedings arising out of the same general allegations be liable for fees and expenses of more than one separate firm of attorneys at any time for all Indemnified Persons of such other party; and such counsel shall, to the extent consistent with its professional responsibilities, cooperate with the indemnifying party and any counsel designated by the indemnifying party.
Each party further agrees that it will not, without the prior written consent of the other parties (the consent of a party shall not be required to the extent such party is neither requesting indemnification nor being requested to provide indemnification), settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is an actual or potential party to such claim, action, suit or proceeding) unless such settlement, compromise or consent includes an unconditional release of each other Indemnified Person from all liability and obligations arising therefrom. The Fund further agrees that none of Wells Fargo, nor any of its affiliates, nor any directors, officers, partners, employees, agents, representatives or control persons of Wells Fargo or any of its affiliates shall have any liability to the Fund arising out of or in connection with the proposed transactions giving rise to or contemplated by this Agreement except for such liability for losses, claims, damages, liabilities or expenses to the extent they have resulted from Wells Fargos or its affiliates gross negligence or willful misconduct. No Indemnified Person shall be responsible or liable to the indemnifying party or any other person for consequential, special or punitive damages which may be alleged as a result of this Agreement.
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(e) Nothing in this Section 7.3 is intended to limit any partys obligations contained in other parts of this Agreement or the New VMTP Shares.
7.4 Amendments and Waivers
Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by the Fund and Wells Fargo; provided, that the Fund shall not make or agree to any amendment or waiver that affects any preference, right or power of the New VMTP Shares or the Holders or Designated Owners thereof except as permitted under the Declaration or the Statement.
7.5 Successors and Assigns
The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Neither the Fund nor Wells Fargo may assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of the other party (other than by operation of law), except that any transferee satisfying the requirements set forth in Section 2.1 and which has executed and delivered to the Fund the transferee certificate attached as Exhibit C shall, prior to registration of any New VMTP Shares under the Securities Act, have the rights set forth in Section 7.15 and shall, so long as such transferee has provided a means for the Fund to transmit such information electronically to it, be entitled to receive the information delivered pursuant to Sections 6.1(o) and 6.1(p) and such transferees shall be deemed a party to this Agreement for purposes of Sections 6.1(o), 6.1(p) and the confidentiality provisions herein as specified in the transferee certificate. Any assignment without such prior written consent shall be void.
7.6 Term of this Agreement
This Agreement shall terminate on the earlier of (x) the registration of any Outstanding New VMTP Shares under the Securities Act and (y) payment in full of all amounts then due and owing to Wells Fargo hereunder and under the New VMTP Shares; and notwithstanding any termination of this Agreement, Section 7.3, Section 7.7, Section 7.8, Section 7.10, Section 7.11, the second sentence of Section 7.12, and Section 7.13 (for a period of two years after the termination of this Agreement) shall remain in full force and effect.
7.7 Governing Law
This Agreement shall be construed in accordance with and governed by the domestic law of the State of New York.
THE PARTIES HERETO HEREBY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE FEDERAL AND NEW YORK STATE COURTS LOCATED IN THE CITY OF NEW YORK IN CONNECTION WITH ANY DISPUTE RELATED TO THIS AGREEMENT OR ANY MATTERS CONTEMPLATED HEREBY.
7.8 Waiver of Jury Trial
The Fund and Wells Fargo hereby waive trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against any other on any matters whatsoever arising out of or in any way connected with this Agreement.
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7.9 Counterparts
This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Any counterpart or other signature delivered by facsimile or by electronic mail shall be deemed for all purposes as being a good and valid execution and delivery of this Agreement by that party.
7.10 Beneficiaries
This Agreement is not intended and shall not be construed to confer upon any Person other than the parties hereto and their successors and permitted assigns any rights or remedies hereunder.
7.11 Entire Agreement
Except as set forth in Section 7.5, this Agreement shall constitute the entire agreement and understanding between the parties hereto with respect to the matters set forth herein and shall supersede any and all prior agreements and understandings relating to the subject matter hereof.
7.12 Relationship to the Statement
The Fund and Wells Fargo agree that the representations, warranties, covenants and agreements contained in this Agreement are in addition to the terms and provisions set forth in the Statement. As between the Fund and Wells Fargo, the Fund and Wells Fargo agree that Section 2.10(d) of the Statement shall have no effect for so long as none of the New VMTP Shares have been registered under the Securities Act.
7.13 Confidentiality
Any information delivered by a party to this Agreement to any other party pursuant to this Agreement, including, without limitation, pursuant to Section 6.1 in the case of the Fund (collectively, the Information), shall not be disclosed by such other party (or its employees, representatives or agents) to any person or entity (except as required by law or to such of its agents and advisors as need to know and agree to be bound by the provisions of this paragraph) without the prior written consent of the party delivering the Information.
The obligations of confidentiality set out in the preceding paragraph do not extend to Information that is or becomes available to the public or is or becomes available to the party receiving the Information on a non-confidential basis or is disclosed to Holders or Designated Owners or potential Holders or Designated Owners, in each case in their capacity as such, in the offering documents of the Fund, in notices to Holders or Designated Owners pursuant to one or more of the Related Documents or pursuant to the Funds or Wells Fargos informational obligations under Rule 144A(d)(4) or other reporting obligation of the Securities and Exchange Commission; or is required or requested to be disclosed (i) by a regulatory agency or in connection with an examination of either party or its representatives by regulatory authorities, (ii) pursuant to subpoena or other court process, (iii) at the express direction of any other authorized government agency, (iv) to its independent attorneys or auditors, (v) as required by any NRSRO, (vi) as otherwise required by law or regulation, (vii) otherwise in connection with the enforcement of this Agreement, (viii) in connection with the exercise of any remedies hereunder or in any suit, action or proceeding relating to this Agreement and the enforcement of rights hereunder, (ix) subject to an agreement containing provisions substantially similar to those of this Section 7.13, and (x) subject to an agreement containing provisions substantially similar to those of this Section 7.13 and with the prior written consent of the other party to this Agreement, which consent shall not be unreasonably withheld, to any actual or prospective counterparty in any swap or derivative transactions.
27
7.14 Severability
In case any provision of this Agreement shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby so long as the intent of the Parties to this Agreement shall be preserved.
7.15 Consent Rights of the Majority Participants to Certain Actions
For so long as none of the New VMTP Shares have been registered under the Securities Act, without the affirmative vote or consent of the Majority Participants, neither the Fund nor the Board of Trustees will take or authorize the taking of any of actions set forth under clauses (a) through (e) of this Section 7.15:
(a) The termination by the Fund of any Rating Agency or the selection of any Other Rating Agency, either in replacement for a Rating Agency or as an additional Rating Agency with respect to the New VMTP Shares.
(b) The Fund issuing or suffering to exist any senior security (as defined in the 1940 Act as of the date hereof or, in the event such definition shall be amended, with such changes to the definition thereof as consented to by the Majority Participants) other than the New VMTP Shares issued and sold pursuant to this Agreement or indebtedness for borrowed money of the Fund, except (i) borrowings for temporary purposes in an amount not to exceed 5% of the assets of the Fund, which borrowings are repaid within sixty (60) days, (ii) the issuance of senior securities or the incurrence of indebtedness for borrowed money, the proceeds of which will be used for the redemption or repurchase of the New VMTP Shares and costs incurred in connection therewith, and (iii) as may be otherwise approved or consented to by the Majority Participants, provided that if any such senior security is created or incurred by the Fund it shall not require the approval of the Majority Participants if the Fund redeems, retires or terminates such senior security or otherwise cures such non-compliance within five (5) Business Days of receiving notice of the existence thereof.
(c) The Fund (i) creating or incurring or suffering to be incurred or to exist any lien on any other funds, accounts or other property held under the Declaration, except as permitted by the Declaration or (ii) except for any lien for the benefit of the Custodian of the Fund on the assets of the Fund held by such Custodian, pledging any portfolio security to secure any senior securities or other liabilities to be incurred by the Fund (including under any tender option bond trust of which the residual floating rate trust certificates will be owned by the Fund) unless the aggregate securities pledged pursuant to all such pledges or security arrangements are valued for purposes of such security arrangements in an aggregate amount not less than 70% of their aggregate market value (determined by an independent third party pricing service) for purposes of determining the value of the collateral required to be posted or otherwise provided under all such security arrangements; provided, that the required collateral value under such security arrangements shall not exceed the market value of the exposure of each secured party to the credit of the Fund; and provided further, that it shall not require the approval of the Majority Participants if any pledge or security interest in violation of the preceding sentence is created or incurred by the Fund and the Fund cures such violation within five Business Days of receiving notice of the existence thereof.
28
(d) Approval of any amendment, alteration or repeal of any provision of the Declaration or the Statement, whether by merger, consolidation, reorganization or otherwise, that would affect any preference, right or power of the New VMTP Shares differentially from the rights of the holders of the Common Shares; or
(e) Approval of any action to be taken pursuant to Sections 2.5(g) and 2.15 of the Statement (other than the issuance of additional series of Variable Rate MuniFund Term Preferred Shares or other Preferred Shares, the proceeds of which will be used for the redemption or repurchase of the New VMTP Shares and costs incurred in connection therewith).
In addition, if the Board of Trustees shall designate a replacement to the S&P Municipal Bond 7 Day High Grade Rate Index pursuant to the definition of SIFMA Municipal Swap Index contained in the Statement, the Fund shall notify the Holders of the New VMTP Shares within five (5) Business Days of such designation, and if within thirty (30) days of such notice the Majority Participants shall have objected in writing to the designated replacement, the Board of Trustees shall designate a replacement to such index as agreed to between the Fund and the Majority Participants. In such event, the replacement index initially approved by the Board of Trustees shall be the index in effect for purposes of the Statement until a new index has been approved by the Fund and the Majority Participants.
7.16 Disclaimer of Liability of Officers, Trustees and Beneficiaries
A copy of the Agreement and Declaration of Trust of the Fund is on file with the Secretary of the Commonwealth of The Commonwealth of Massachusetts, and notice hereby is given that this Agreement is executed on behalf of the Fund by an officer of the Fund in his or her capacity as an officer of the Fund and not individually and that the obligations under or arising out of this Agreement are not binding upon any of the Trustees, officers or shareholders individually but are binding only upon the assets and properties of the Fund. All persons extending credit to, contracting with or having a claim against the Fund must look solely to the Funds assets and property for the enforcement of any claims against the Fund as none of the Funds officers, agents or shareholders, whether past, present or future, assume any personal liability for obligations entered on behalf of the Fund.
[The remainder of this page has been intentionally left blank.]
29
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.
NUVEEN AMT-FREE MUNICIPAL INCOME FUND | ||
By: | /s/ Kevin J. McCarthy | |
Name: Kevin J. McCarthy | ||
Title: Vice President & Secretary |
WELLS FARGO MUNICIPAL CAPITAL STRATEGIES, LLC | ||
By: | /s/ Adam Joseph | |
Name: Adam Joseph | ||
Title: President |
[Signature Page to VMTP Purchase Agreement]
SCHEDULE 1
Description of Shares: | 1,510 Nuveen AMT-Free Municipal Income Fund Variable Rate MuniFund Term Preferred Shares, Series 2016, with a Liquidation Preference of $100,000 per share. |
Schedule-1
EXHIBIT A
FORMS OF OPINIONS OF COUNSEL FOR THE FUND
[ON FILE]
A-1
EXHIBIT A-1
FORM OF CORPORATE AND 1940 ACT OPINION
[ON FILE]
A-1-1
EXHIBIT A-2
FORM OF TAX OPINION
[ON FILE]
A-2-1
EXHIBIT A-3
FORM OF LOCAL COUNSEL OPINION
[ON FILE]
A-3-1
EXHIBIT B
ELIGIBLE ASSETS
On the Effective Date and at all times thereafter:
1. All assets in the Fund consist of Eligible Assets, defined to consist only of the following as of the time of investment:
A. | Debt obligations |
i. Municipal securities, defined as obligations of a State, the District of Columbia, a U.S. territory, or a political subdivision thereof and including general obligations, limited obligation bonds, revenue bonds, and obligations that satisfy the requirements of section 142(b)(1) of the Internal Revenue Code of 1986 issued by or on behalf of any State, the District of Columbia, any U.S. territory or any political subdivision thereof, including any municipal corporate instrumentality of 1 or more States, or any public agency or authority of any State, the District of Columbia, any U.S. territory or any political subdivision thereof, including obligations of any of the foregoing types related to financing a 501(c)(3) organization. The purchase of any municipal security will be based upon the Investment Advisers assessment of an assets relative value in terms of current yield, price, credit quality, and future prospects; and the Investment Adviser will monitor the creditworthiness of the Funds portfolio investments and analyze economic, political and demographic trends affecting the markets for such assets. Eligible Assets shall include any municipal securities that at the time of purchase are paying scheduled principal and interest or if at the time of purchase are in payment default, then in the sole judgment of the Investment Adviser are expected to produce payments of principal and interest whose present value exceeds the purchase price.
ii. Debt obligations of the United States.
iii. Debt obligations issued, insured, or guaranteed by a department or an agency of the U.S. Government, if the obligation, insurance, or guarantee commits the full faith and credit of the United States for the repayment of the obligation.
iv. Debt obligations of the Washington Metropolitan Area Transit Authority guaranteed by the Secretary of Transportation under Section 9 of the National Capital Transportation Act of 1969.
v. Debt obligations of the Federal Home Loan Banks.
vi. Debt obligations, participations or other instruments of or issued by the Federal National Mortgage Association or the Government National Mortgage Association.
vii. Debt obligations which are or ever have been sold by the Federal Home Loan Mortgage Corporation pursuant to sections 305 or 306 of the Federal Home Loan Mortgage Corporation Act.
viii. Debt obligations of any agency named in 12 U.S.C. § 24(Seventh) as eligible to issue obligations that a national bank may underwrite, deal in, purchase and sell for the banks own account, including qualified Canadian government obligations.
B-1
ix. Debt obligations of issuers other than those specified in (i) through (viii) above that are investment grade and that are marketable. For these purposes, an obligation is:
(aa) | marketable if: |
| it is registered under the Securities Act; |
| it is offered and sold pursuant to Securities and Exchange Commission Rule 144A; 17 CFR 230.144A; or |
| it can be sold with reasonable promptness at a price that corresponds reasonably to its fair value; and |
(bb) | investment grade if: |
| the obligor had adequate capacity to meet financial commitments under the security for the projected life of the asset or exposure, which capacity is presumed if the risk of default by the obligor is low and the full and timely repayment of principal and interest is expected. |
x. Certificates or other securities evidencing ownership interests in a municipal bond trust structure (generally referred to as a tender option bond structure) that invests in (a) debt obligations of the types described in (i) above or (b) depository receipts reflecting ownership interests in accounts holding debt obligations of the types described in (i) above.
xi. The bonds, notes and other debt securities referenced in (A) above shall be defined as Eligible Assets. An asset shall not lose its status as an Eligible Asset solely by virtue of the fact that:
| it provides for repayment of principal and interest in any form including fixed and floating rate, zero interest, capital appreciation, discount, leases, and payment in kind; or |
| it is for long-term or short-term financing purposes. |
B. | Derivatives |
i. Interest rate derivatives;
ii. Swaps, futures, forwards, structured notes, options and swaptions related to Eligible Assets or on an index related to Eligible Assets; or
iii. Credit default swaps.
C. | Other Assets |
i. Shares of other investment companies (open- or closed-end funds and ETFs) the assets of which consist entirely of Eligible Assets based on the Investment Advisers assessment of the assets of each such investment company taking into account the investment companys most recent publicly available schedule of investments and publicly disclosed investment policies.
B-2
ii. Cash.
iii. Repurchase agreements on assets described in A above.
iv. Taxable fixed-income securities, for the purpose of acquiring control of an issuer whose municipal bonds (a) the Fund already owns and (b) have deteriorated or are expected shortly to deteriorate that such investment should enable the Fund to better maximize its existing investment in such issuer, provided that the Fund may invest no more than 0.5% of its total assets in such securities.
D. | Other assets, upon written agreement of Wells Fargo that such assets are eligible for purchase by Wells Fargo. |
2. The Investment Adviser has instituted policies and procedures that it believes are sufficient to ensure that the Fund and it comply with the representations, warranties and covenants contained in this Exhibit B to the Agreement.
3. The Fund will, upon request, provide Wells Fargo and its internal and external auditors and inspectors as Wells Fargo may from time to time designate, with all reasonable assistance and access to information and records of the Fund relevant to the Funds compliance with and performance of the representations, warranties and covenants contained in this Exhibit B to the Agreement, but only for the purposes of internal and external audit.
B-3
EXHIBIT C
TRANSFEREE CERTIFICATE
Nuveen AMT-Free Municipal Income Fund
333 W. Wacker Drive, Suite 3300
Chicago, IL 60606
Attention: Gifford R. Zimmerman,
Chief Administrative Officer
Ladies and Gentlemen:
Reference is hereby made to the VMTP Purchase Agreement (the Purchase Agreement), dated as of December 10, 2013, between Nuveen AMT-Free Municipal Income Fund, a closed-end fund organized as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts (the Fund) and Wells Fargo Municipal Capital Strategies, a wholly-owned subsidiary of Wells Fargo Bank, National Association, a national banking association organized and existing under the laws of the United States of America, including its successors by merger or operation (the Transferor). Capitalized terms used but not defined herein shall have the meanings given them in the Purchase Agreement.
In connection with the proposed sale by the Transferor of New VMTP Shares (the Transferred Shares) to the undersigned transferee (the Transferee), the undersigned agrees and acknowledges, on its own behalf, and makes the representations and warranties, on its own behalf, as set forth in this certificate (this Transferee Certificate) to the Fund and the Transferor:
1. The Transferee certifies to one of the following (check a box):
¨ is a qualified institutional buyer (a QIB) (as defined in Rule 144A under the Securities Act or any successor provision) (Rule 144A) that is a registered closed-end management investment company the shares of which are traded on a national securities exchange (a Closed End Fund), a bank (or affiliates of banks), insurance company or registered open-end management investment company, in each case, to which any offer and sale is being made pursuant to Rule 144A or another available exemption from registration under the U.S. Securities Act of 1933, as amended (the Securities Act), in a manner not involving any public offering within the meaning of Section 4(a)(2) of the Securities Act;
¨ it is a tender option bond trust in which all investors are QIBs that are Closed-End Funds, banks (or affiliates of banks), insurance companies, or registered open-end management investment companies; or
¨ is a person which the Fund has consented in writing to permit to be the holder of the Transferred Shares.
2. The Transferee certifies that it (check a box):
¨ is not a Nuveen Person that after such sale and transfer, would own more than 20% of the Outstanding New VMTP Shares; or
¨ has received the prior written consent of the Fund and the holder(s) of more than 50% of the outstanding New VMTP Shares.
C-1
3. The Transferee understands and acknowledges that the Transferred Shares are restricted securities and have not been registered under the Securities Act or any other applicable securities law, are being offered for sale pursuant to Rule 144A of the Securities Act or another available exemption from registration under the Securities Act, in a manner not involving any public offering with the meaning of Section 4(a)(2) of the Securities Act, and may not be offered, sold or otherwise transferred except in compliance with the registration requirements of the Securities Act or any other applicable securities law, pursuant to an exemption therefrom or in a transaction not subject thereto and in each case in compliance with the conditions for transfer set forth in this Transferee Certificate.
4. The Transferee is purchasing the Transferred Shares for its own account for investment, and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act, subject to any requirements of law that the disposition of its property be at all times within its or their control and subject to its or their ability to resell such securities pursuant to Rule 144A or any exemption from registration available under the Securities Act.
5. The Transferee agrees on its own behalf and on behalf of each subsequent holder or owner of the Transferred Shares by its acceptance thereof will agree to offer, sell or otherwise transfer the Transferred Shares only to (A)(i) Persons such Transferee reasonably believes are QIBs that are registered closed-end management investment companies, the shares of which are traded on a national securities exchange, banks (or affiliates of banks), insurance companies or registered open-end management investment companies, in each case, pursuant to Rule 144A or another available exemption from registration under the Securities Act, in a manner not involving any public offering within the meaning of Section 4(a)(2) of the Securities Act, (ii) tender option bond trusts in which it reasonably believes all investors are Persons such Transferee reasonably believes are QIBS that are registered closed-end management investment companies, the shares of which are traded on a national securities exchange, banks (or affiliates of banks), insurance companies, or registered open-end management investment companies, or (iii) other investors which the Fund has consented in writing to permit to be a holder of the Transferred Shares and (B) unless the prior written consent of the Fund and the holder(s) of more than 50% of the outstanding New VMTP Shares has been obtained, is not a Nuveen Person, if such Nuveen Person would, after such sale and transfer, own more than 20% of the Outstanding New VMTP Shares.
6. The Transferee acknowledges that the New VMTP Shares were issued in book-entry form and are represented by one global certificate and that the global certificate representing the New VMTP Shares (unless sold to the public in an underwritten offering of the New VMTP Shares pursuant to a registration statement filed under the Securities Act) contains a legend substantially to the following effect:
THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT), OR ANY STATE SECURITIES LAW. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.
C-2
THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY TO (l)(A) A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT IS A REGISTERED CLOSED-END MANAGEMENT INVESTMENT COMPANY, THE SHARES OF WHICH ARE TRADED ON A NATIONAL SECURITIES EXCHANGE, BANKS (OR AFFILIATES OF BANKS), INSURANCE COMPANIES OR REGISTERED OPEN-END MANAGEMENT INVESTMENT COMPANIES, IN EACH CASE, IN AN OFFER AND SALE MADE PURSUANT TO RULE 144A OR ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, IN A MANNER NOT INVOLVING ANY PUBLIC OFFERING WITHIN THE MEANING OF SECTION 4(A)(2) OF THE SECURITIES ACT; (B) A TENDER OPTION BOND TRUST IN WHICH ALL INVESTORS ARE PERSONS THE HOLDER REASONABLY BELIEVES ARE QUALIFIED INSTITUTIONAL BUYERS THAT ARE REGISTERED CLOSED-END MANAGEMENT INVESTMENT COMPANIES, THE SHARES OF WHICH ARE TRADED ON A NATIONAL SECURITIES EXCHANGE, BANKS (OR AFFILIATES OF BANKS), INSURANCE COMPANIES, OR REGISTERED OPEN-END MANAGEMENT INVESTMENT COMPANIES; OR (C) A PERSON THAT THE ISSUER OF THE SECURITY HAS APPROVED IN WRITING TO BE THE HOLDER OF THE SECURITY AND (2) UNLESS THE PRIOR WRITTEN CONSENT OF THE ISSUER OF THE SECURITY AND HOLDERS OF MORE THAN 50% OF THE OUTSTANDING NEW VMTP SHARES IS OBTAINED, NOT A NUVEEN PERSON (AS DEFINED IN THE PURCHASE AGREEMENT, DATED DECEMBER 10, 2013, BETWEEN THE ISSUER OF THE SECURITY AND WELLS FARGO MUNICIPAL CAPITAL STRATEGIES, LLC), IF SUCH NUVEEN PERSON WOULD, AFTER SUCH SALE AND TRANSFER, OWN MORE THAN 20% OF THE OUTSTANDING NEW VMTP SHARES.
7. The Transferee has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Transferred Shares, and has so evaluated the merits and risks of such investment. The Transferee is able to bear the economic risk of an investment in the Transferred Shares and, at the present time, is able to afford a complete loss of such investment.
8. Other than consummating the purchase of the Transferred Shares, the Transferee has not directly or indirectly, nor has any person acting on behalf of or pursuant to any understanding with the Transferee, executed any other purchases of securities of the Fund which may be integrated with the proposed purchase of the Transferred Shares by the Transferee.
9. The Transferee acknowledges that it has received a copy of the Purchase Agreement and Appendices thereto and agrees to abide by any obligations therein binding on a transferee of the New VMTP Shares and the confidentiality obligations therein with respect to information relating to the Fund as if it were the Transferor.
10. The Transferee acknowledges that it has received a copy of the Registration Rights Agreement and agrees to abide by any obligations therein binding on a transferee of the New VMTP Shares.
11. The Transferee acknowledges that it has been given the opportunity to obtain from the Fund the information referred to in Rule 144A(d)(4) under the Securities Act, and has either declined such opportunity or has received such information and has had access to and has reviewed all information, documents and records that it has deemed necessary in order to make an informed investment decision with respect to an investment in the Transferred Shares and that the Transferee understands the risk and other considerations relating to such investment.
12. The Transferee acknowledges that it has sole responsibility for its own due diligence investigation and its own investment decision relating to the Transferred Shares. The Transferee understands that any materials presented to the Transferee in connection with the purchase and sale of the Transferred Shares does not constitute legal, tax or investment advice from the Fund. The Transferee has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with the purchase of the Transferred Shares.
C-3
13. The Transferee acknowledges that each of Transferor and the Fund and their respective affiliates and others will rely on the acknowledgments, representations and warranties contained in this Transferees Certificate as a basis for exemption of the sale of the Transferred Shares under the Securities Act, under the securities laws of all applicable states, and for other purposes. The Transferee agrees to promptly notify the Fund and the Transferor if any of the acknowledgments, representations or warranties set forth herein are no longer accurate.
14. This Transferees Certificate shall be governed by and construed in accordance with the laws of the State of New York.
15. The Transferee agrees to provide, together with this completed and signed Transferees Certificate, a completed and signed IRS Form W-9, Form W-8 or successor form, as applicable.
[Signature Page Follows.]
The undersigned has provided a completed and signed IRS Form W-9, Form W-8 or successor form, as applicable, and has caused this Transferees Certificate to be executed by its duly authorized representative as of the date set forth below.
Date: | Name of Transferee (use exact name in which Transferred Shares are to be registered): | |||
Authorized Signature | ||||
Print Name and Title | ||||
Address of Transferee for Registration of Transferred Shares: | ||||
Transferees taxpayer identification number: | ||||
EXHIBIT D
INFORMATION TO BE PROVIDED BY THE FUND
Reporting as of:
TOB Floaters: $
CUSIP | Portfolio Name | Description | Market Value | Par Value | Rating | State | ||||||||||||||
[] |
[] | [] | [] | [] | [] | [] |
D-1