Document:

EXHIBIT 10.7

 
 

AMENDED AND RESTATED TRUST AGREEMENT

AMONG

INTERPOOL, INC.,

AS SETTLOR,

INTERPOOL CHASSIS FUNDING, LLC,

AS INITIAL BENEFICIARY,

AND

FIRST UNION TRUST COMPANY, NATIONAL ASSOCIATION,

AS UTI TRUSTEE AND DELAWARE TRUSTEE

CREATING A DELAWARE BUSINESS TRUST TO BE KNOWN AS

“INTERPOOL TITLING TRUST”

DATED AS OF JUNE 1, 2000

AMENDED AND RESTATED AS OF MARCH 1, 2002

 
 
 

 

TABLE OF CONTENTS

 

	
                         
 	
                        Page
 
	
                        PART I CREATION OF TRUST
 	
                        1
 
	
                        Section 1.1
 	
                        Creation of Trust
 	
                        1
 
	
                        Section 1.2
 	
                        Purpose of Trust
 	
                        2
 
	
                        Section 1.3
 	
                        Declaration of Trust
 	
                        2
 
	
                        Section 1.4
 	
                        Document Execution and Performance
 	
                        3
 
	
                        Section 1.5
 	
                        Defined Terms
 	
                        3
 
	
                        PART II TRUST ASSETS
 	
                        4
 
	
                        Section 2.1
 	
                        Trust Assets
 	
                        4
 
	
                        Section 2.2
 	
                        Delivery of Documents
 	
                        6
 
	
                        PART III CUSTODY OF LEASE FILES AND CONTRACTS; MASTER LIST
 	
                        6
 
	
                        Section 3.1
 	
                        Appointment of Custodian
 	
                        6
 
	
                        Section 3.2
 	
                        Master List
 	
                        6
 
	
                        PART IV BENEFICIAL INTERESTS IN THE TRUST
 	
                        7
 
	
                        Section 4.1
 	
                        Undivided Trust Interest
 	
                        7
 
	
                        Section 4.2
 	
                        Special Units of Beneficial Interest
 	
                        8
 
	
                        Section 4.3
 	
                        Form of Certificate; Registration of Certificates
 	
                        11
 
	
                        Section 4.4
 	
                        Maintenance of Office of Agency
 	
                        13
 
	
                        Section 4.5
 	
                        Mutilated, Destroyed, Lost or Stolen Certificates
 	
                        13
 
	
                        Section 4.6
 	
                        Retitling of Equipment
 	
                        13
 
	
                        PART V DUTIES AND POWERS OF TRUST AND TRUSTEES; TRUSTEE LIABILITY
 	
                        14
 
	
                        Section 5.1
 	
                        Duties and Powers of Trustees; Limitations on Trust Activity
 	
                        14
 
	
                        Section 5.2
 	
                        Duty of Care
 	
                        16
 
	
                        Section 5.3
 	
                        Certain Matters Affecting the Trustees
 	
                        18
 
	
                        Section 5.4
 	
                        Trustees Not Liable
 	
                        21
 
	
                        Section 5.5
 	
                        Indemnity of Trustees
 	
                        22
 
	
                        Section 5.6
 	
                        Trustee’s Right Not to Act
 	
                        22
 
	
                        Section 5.7
 	
                        Doing Business in Other Jurisdictions
 	
                        23
 
	
                        Section 5.8
 	
                        No Election to be a Corporation
 	
                        23
 
	
                        PART VI APPOINTMENT, COMPENSATION AND REMOVAL OF TRUSTEES
 	
                        23
 
	
                        Section 6.1
 	
                        Appointment of Trustees
 	
                        23
 
	
                        Section 6.2
 	
                        Qualification of Trustees
 	
                        24
 
	
                        Section 6.3
 	
                        Resignation or Removal of Trustees
 	
                        24
 
	
                        Section 6.4
 	
                        Successor Trustee
 	
                        25
 
	
                        Section 6.5
 	
                        Merger or Consolidation of Trustees
 	
                        26
 
	
                        Section 6.6
 	
                        Appointment of Co-Trustee, Separate Trustee, or Nominee
 	
                        26
 
	
                        Section 6.7
 	
                        Representations and Warranties of Trustee Banks
 	
                        28
 
	
                        Section 6.8
 	
                        Trustee’s Fees and Expenses
 	
                        29
 
	
                        Section 6.9
 	
                        No Petition
 	
                        29
 
	
                        Section 6.10
 	
                        Place of Business
 	
                        30
 
	
                        PART VII ACCOUNTS
 	
                        30
 
	
                        Section 7.1
 	
                        Accounts; Expenses
 	
                        30
 
							

            

 

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      Section 7.2
 	
      Rebalancing After Third-Party Claim
 	
                        31
 
	
                        PART VIII TERMINATION
 	
                        32
 
	
                        Section 8.1
 	
                        Termination of the Trust
 	
                        32
 
	
                        PART IX MISCELLANEOUS PROVISIONS
 	
                        33
 
	
                        Section 9.1
 	
                        Amendment
 	
                        33
 
	
                        Section 9.2
 	
                        Governing Law
 	
                        33
 
	
                        Section 9.3
 	
                        Notices
 	
                        34
 
	
                        Section 9.4
 	
                        Severability of Provisions
 	
                        34
 
	
                        Section 9.5
 	
                        Construction
 	
                        34
 
	
                        Section 9.6
 	
                        Separate Entity
 	
                        35
 
	
                        Section 9.7
 	
                        CONSENT TO JURISDICTION; WAIVER OF OBJECTION TO VENUE; CONCLUSIVE EFFECT OF FINAL JUDGMENT; CONSENT TO SERVICE OF PROCESS
 	
      35
 
	
                        Section 9.8
 	
                        WAIVER OF JURY TRIAL
 	
                        36
 
	
                        Section 9.9
 	
                        THIRD PARTY BENEFICIARIES
 	
                        36
 
	
                        Section 9.10
 	
                        Tax Reporting and Characterization
 	
                        36
 
	
                        Section 9.11
 	
                        Certificates Nonassessable and Fully Paid
 	
                        37
 
	
                        Section 9.12
 	
                        Amendment and Restatement
 	
                        37
 

 

EXHIBITS

 

EXHIBIT A - Definitions

EXHIBIT B - Undivided Trust Interest Certificate

EXHIBIT C - Amended and Restated Certificate of Trust of Interpool Titling Trust

EXHIBIT D - Notice of Registered Pledge

 

 

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AMENDED AND RESTATED TRUST AGREEMENT

AMENDED AND RESTATED TRUST AGREEMENT, dated as of June 1, 2000 and as Amended and Restated as of March 1, 2002 (as it may be further modified, supplemented or amended from time to time in accordance with its terms, this “Agreement”), between Interpool, Inc., a Delaware corporation (“Interpool”), as settlor (the “Settlor”), Interpool Chassis Funding, LLC, as initial beneficiary (the “Initial Beneficiary”) and First Union Trust Company, National Association, a national banking association, as UTI Trustee
(the “UTI Trustee”) and Delaware Trustee (the “Delaware Trustee”).

WHEREAS, Interpool Titling Trust (the “Trust”) is a Delaware business trust created pursuant to this trust agreement, as originally executed (the “Original Trust Agreement”) and a certificate of trust filed with the Secretary of State of the State of Delaware (the “Secretary of State”) on July 17, 2000; and

WHEREAS, the parties hereto desire to amend and restate the Original Trust Agreement in its entirety.

IN CONSIDERATION of the mutual agreements herein contained, and of other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

PART I

CREATION OF TRUST

Section 1.1 Creation of Trust.

Pursuant to the Original Trust Agreement, in accordance with Chapter 38 of Title 12 of the Delaware Code, 12 Del. C. § 3801 et seq. (the “Business Trust Statute”), a trust known as Interpool Titling Trust (the “Trust” or “Interpool Titling Trust”), was formed and is hereby continued by this Agreement. The Trustees may engage, in the name of the Trust or in their own respective
names on behalf of the Trust, in the activities of the Trust, make and execute contracts and other instruments on behalf of the Trust, and sue and be sued. The parties hereto intend that the Trust be a business trust under the Business Trust Statute and that this Agreement shall constitute the governing instrument of the Trust. Effective as of July 17, 2000, the Trustee shall have all rights, powers and duties set forth herein and in the Business Trust Statute with respect to accomplishing the purposes of the Trust. Pursuant to the Original Trust Agreement, the Trustee has filed its certificate of trust with the Secretary of State and will cause to be filed with the Secretary of State the amended and restated certificate of trust (the “Certificate of Trust”) attached hereto as Exhibit C.

 

Section 1.2 Purpose of Trust.

The Trust has the power and authority:

(a) to receive any funds and other property delivered to it by or for the account of any Holders and to distribute such funds or otherwise hold such funds in trust for any Holders under the terms and conditions of this Agreement;

(b) to issue, transfer and exchange the Certificates and to make payments or cause payments to be made on the Certificates;

(c) to acquire from time to time the Trust Assets;

(d) to hold the Trust Assets;

(e) to enter into, perform its obligations under, and perform any other activities contemplated by, this Agreement and the other Trust Documents and any Financing Documents to which the Trust is a party (including the issuance of additional SUBI Supplements); provided, however, that the Trust shall not be a party to any contract, agreement or instrument other than a Servicing Agreement, UTI Supplement, SUBI Supplements or Transfer Agreements and the Trust shall have no obligations whatsoever for the payment of money other than, with respect to each interest in the Trust, the distribution of funds to the Servicer, the applicable Holders and any Registered Pledgee of a Holder; and

(f) to engage only in those activities, including entering into agreements, that are necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or connected therewith, subject to the explicit terms of this Agreement.

The Trust is authorized and directed to execute and enter into the aforementioned agreements and any documents necessary or incidental in connection therewith. The Trust shall not engage in any activities other than in connection with, or relating to, the foregoing and other than those required or authorized by the terms of this Agreement, except as are incidental to and necessary to accomplish such activities.

The Trustee shall not knowingly take any action in contravention with any of the foregoing. Each Holder, the Initial Beneficiary, and each Registered Pledgee agrees not to instruct the Trustee to take any action that would violate the terms of this Section 1.2.

 

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Section 1.3 Declaration of Trust.

(a) The UTI Trustee and each SUBI Trustee hereby declares that it will hold the Trust Assets allocated to the UTI or its respective SUBI interest in trust upon and subject to the conditions set forth herein for the use and benefit of the Holders and any Registered Pledgee of a Certificate, subject to the obligations of the Trust under the Trust Documents.

(b) Legal title to all the Trust Assets shall be vested at all times in the Trust as a separate legal entity except where applicable law in any jurisdiction requires title to any part of the Trust Assets to be vested in a trustee or trustees, in which case title shall be deemed to be vested in the Delaware Trustee, the UTI Trustee, the applicable SUBI Trustee, a co-trustee and/or a separate trustee, as the case may be.

(c) Except as provided in Section 8.1, none of the Settlor, the Initial Beneficiary or any Holder shall be able to revoke the Trust established hereunder.

Section 1.4 Document Execution and Performance.

The Initial Beneficiary hereby authorizes and directs the Trustee, and the Trustee hereby agrees, to: (i) at the request of the Holder(s) of the UTI Certificate(s) or related SUBI Certificates, execute and deliver all agreements, instruments or documents necessary or advisable for the Trust to acquire title to Equipment and other Trust Assets as described herein and cause the related Certificates of Title to be issued in the name of the Trust or the Trustee on behalf of the Trust; (ii) take action that is required or authorized to be taken by the Trustee pursuant to applicable law as specified in the Trust Documents; (iii) exercise its rights and perform its duties as Trustee as specified in the Trust Documents; (iv) at the direction of the related Holders (and, with respect to the related Trust Assets subject to a Financing, subject to any additional requirements imposed by the related
Financing Documents) (a) release, discharge, sell, assign, transfer, pledge, convey or otherwise dispose of any right, title or interest in and to any portion of the related Trust Assets, (b) amend or revoke the terms hereof with respect to all or any portion of the related Trust Assets and (c) enter into any and all agreements or instruments affecting all or any portion of the related Trust Assets or affecting any other provision hereof; (v) appoint the Servicer for any UTI or SUBI as the attorney in fact for the Trust as contemplated hereby or by any Servicing Agreement; and (vi) enter into, on behalf of the Trust, all Trust Documents to which the Trust is a party.

Section 1.5 Defined Terms.

Capitalized terms used herein shall have the meanings set forth in Exhibit A hereto. For the avoidance of doubt, references to any statute or codified law shall include any successor statute or codified law, including any amendments or supplements.

 

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PART II

TRUST ASSETS

Section 2.1 Trust Assets.

(a) Pursuant to this Agreement and each Transfer Agreement, the Trust shall acquire from time to time the following assets (the items described in clauses (1) through (6) and any other assets which the Trust from time to time may acquire from the Settlor or other Persons party to a Transfer Agreement as a seller (the Settlor and each other such seller, a “Seller”), the “Trust Assets”):

(i) cash;

(ii) all lease contracts (together with any assignments thereof and any delivery and acceptance certificate therefor, any guaranties and amendments, addendums and other modifications thereto, the “Contracts”) to the extent, but only to the extent, that such Contracts relate to each Chassis and/or Refrigeration Generator sold by a Seller to the Trust from time to time, together with all substitutions, repairs, replacements, non-severable appliances, instruments, accessories, furnishings, other equipment, additions, parts and improvements from time to time constituting a part thereof and all accessions thereto (all of the foregoing collectively, the “Equipment”), which Contracts are or were
transferred to the Trust by Interpool, TLI, IAL, any manufacturer or any Dealer, or originated directly by the Trust;

(iii) the Equipment and all income, payments and proceeds thereof, including, without limitation (i) the residual values of the Equipment to be realized through the exercise by Users of any purchase options under the Contracts, the proceeds of sale of the Equipment to third parties, payments received from any other Person, either directly or through a Servicer, with respect to the residual value of the Equipment (including, without limitation, payments under any terminal rent adjustment clause) or payments under any Physical Damage Insurance Policy or residual value insurance policy and (ii) each certificate of title or other evidence of ownership of an item of Equipment (as provided in and subject to the limitation set forth in the related Transfer Agreements), as the case may be, by the Registrar of Titles in the respective jurisdiction in which each such item
of Equipment is registered (each a “Certificate of Title”), which Certificate of Title shall reflect, as the owner of such item of Equipment, “Interpool Titling Trust,” any trustee of the Trust or such other similar designation as may be acceptable to any applicable department, agency or official in each state responsible for accepting applications for, and maintaining records regarding, Certificates of Title and liens thereon (each a “Registrar of Titles”);

(iv) all of the Seller’s rights (but not its obligations) under any agreements or other purchase documents with respect to the acquisition of any Contract or item of 

 

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Equipment to the extent, but only to the extent, that such rights relate to such Contract or item of Equipment, including, without limitation, (i) the right to proceeds arising from all dealer repurchase obligations, if any, relating to any Contract or item of Equipment) arising under any agreements with any dealer (a “Dealer”) from which Interpool or any Affiliate thereof acquired an item of Equipment (“Dealer Agreements”), (ii) all warranty and indemnity provisions contained in or to be provided pursuant to purchase agreements that relate to any item of Equipment and all claims against the applicable manufacturer or distributor and (iii) any guaranty given in connection with any Contract, together with
all rights, powers, privileges, licenses, easements, options and other benefits of the beneficiary of the guaranty thereunder and any collateral given as security therefor, to the extent pertaining to such Contract;

(v) Seller’s rights under any insurance policy or proceeds therefrom, including, without limitation, the Physical Damage Insurance Policy, the Commercial General Liability Insurance Policy, any residual value insurance policy, any policy of comprehensive, collision, public liability, physical damage, personal liability, general liability, excess or umbrella liability, or other insurance policy maintained by the Initial Beneficiary, any Seller, Interpool, any User or any Affiliate of any such Person to the extent that any such policy covers or applies to any Contract, Equipment or the ability of any User to make required payments with respect to the related Contract or related Equipment or any other Trust Asset; and

(vi) all income, payments and proceeds of any of the foregoing, including, without limitation, all present and future claims, demands, causes of and choses in action in respect of any or all of the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including all proceeds of the conversion, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, condemnation awards, rights to payment of any and every kind and other forms of obligations and receivables, instruments and other property which at any time constitute all or part of or are included in the proceeds of any of the foregoing.

(b) Intention of the Parties. The execution and delivery of this Agreement shall constitute an acknowledgment by the Settlor and the Trust that each intends that the assignment and transfers contemplated herein and by the Transfer Agreements constitute an absolute assignment (and not merely a grant of a security interest) to the Trust by the Settlor and each other Seller of its interest in the Trust Assets, and an absolute conveyance to the Trust of good title in such Trust Assets free and clear of any Liens, and that the Trust Assets shall not be a part of the Settlor’s or any other Seller’s estate in the event of the bankruptcy under any Insolvency Law or the occurrence of another similar event of, or with respect to, the Settlor or other Seller. In the event that, notwithstanding the
intention of the parties, any Trust Assets are held to be property of the Settlor’s or any other Seller’s bankruptcy estate, or if for any reason this Agreement or any Transfer Agreement is held or deemed to create a security interest in (rather 

 

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than an absolute assignment of) the Trust Assets, then (x) this Agreement or such Transfer Agreement shall also be deemed to be a security agreement within the meaning of Article 8 and Article 9 of the Uniform Commercial Code as in effect in the State of New York and (y) the conveyances provided for hereunder and thereunder shall be deemed to be a grant by the Settlor and each Seller to the Trust of a valid security interest in all of the Settlor’s and each other Seller’s right, title and interest in and to the Trust Assets to secure the Trust’s rights to receive payments of all income, payments and proceeds related to the Trust Assets. The Settlor shall cause each Transfer Agreement to contain provisions substantially similar to the immediately preceding sentence.

Section 2.2 Delivery of Documents.

The requirements, if any, for delivery of documents, to the relevant entities, relating to Trust Assets being acquired by the Trust and allocated to the UTI (hereafter defined) or any SUBI (hereafter defined), shall be set forth in this Trust Agreement (as in effect from time to time) or any subsequently executed Transfer Agreement, or in the related SUBI Supplement, as the case may be.

PART III

CUSTODY OF LEASE FILES AND CONTRACTS; MASTER LIST

Section 3.1 Appointment of Custodian.

Pursuant to a UTI Supplement or SUBI Supplement, the UTI Trustee and any SUBI Trustee, at the direction of the Holder(s) of the UTI Certificate(s) or related SUBI Certificate(s), as the case may be, shall appoint a Custodian, which shall not be Interpool or an Affiliate thereof, for the Lease Files relating to the Contracts and Equipment which constitute assets allocated to such UTI or SUBI. The rights and responsibilities of each such Custodian, payment of its fees and expenses, and provision for its removal or resignation, shall be set forth in the UTI Supplement or SUBI Supplement under which such Custodian is appointed, together with such other matters as shall be determined by the Custodian and the other parties to such Supplement.

Section 3.2 Master List.

The Delaware Trustee shall maintain possession of a written list (provided such list may be maintained in electronic or any other form, so long as a written copy of the Master List can be provided upon request) (the “Master List”) of all Contracts and Equipment included in the Trust Assets, such Master List to be prepared from time to time by the Servicer pursuant to the Initial Servicing Agreement. Such Master List shall identify each Contract and all Equipment allocated to each SUBI and each Contract and all Equipment allocated to the UTI and shall govern any determination of the respective Trust Assets allocated to each Portfolio. In maintaining such Master List, the Delaware Trustee shall be entitled to conclusively rely on information provided by the Servicer and any successor Servicer and shall have
no liability for any inaccuracies in the Master List under each Servicing Agreement. Upon receipt of a written request from any of the 

 

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following, the Delaware Trustee shall deliver a copy of the Master List to the Initial Beneficiary, any Trustee, any UTI Holder, any SUBI Holder, any Registered Pledgee, or any SUBI Control Party.

PART IV

BENEFICIAL INTERESTS IN THE TRUST

Section 4.1 Undivided Trust Interest.

(a) The Initial Beneficiary, and any Special Purpose Entity to which the Initial Beneficiary may from time to time transfer all or any portion of its Undivided Trust Interest, shall hold an exclusive, undivided beneficial interest in all assets of the Trust (the “Undivided Trust Interest” or the “UTI”), other than those divided, identified Trust Assets that are from time to time allocated by the Trust, upon the written direction of the Initial Beneficiary or otherwise in accordance with Section 4.2, into one or more separate and identifiable portfolios of Trust Assets (together with any other Trust Assets allocated to or
earned by any such portfolio(s) and any income, payments and proceeds thereof, collectively, “SUBI Assets”). All Trust Assets that have not been specifically identified as SUBI Assets are referred to as the “UTI Assets”.

(b) The Undivided Trust Interest initially shall be represented by a single trust certificate, substantially in the form attached hereto as Exhibit A (together with any replacements thereof, the “Undivided Trust Interest Certificate” or the “UTI Certificate”), registered in the name of the Initial Beneficiary, which represents a 100% ownership interest in the UTI. However, any holder of the Undivided Trust Interest shall be a Special Purpose Entity and may, with the prior written consent of each Registered Pledgee (if any) of the UTI Certificate, request in writing the UTI Trustee to execute, issue and deliver two (2) or more UTI Certificates that, in the aggregate, represent no particular Trust
Asset(s), but represent the entire Undivided Trust Interest, such divided certificates to be issued pursuant to a supplement to this Agreement (each, a “UTI Supplement”), which UTI Supplement shall be executed by the holder(s) of the UTI Certificates (the “UTI Holder(s)”) and any Registered Pledgee thereof and shall specify any terms or conditions relevant to the issuance thereof, as shall be prescribed and established by such UTI Holder(s) and any Registered Pledgee thereof. A UTI Supplement also may specify additional terms or modify the terms of this Agreement, but only with respect to the UTI. Except as set forth in any applicable UTI Supplement, any Undivided Trust Interest Certificate shall be in substantially the form of Exhibit B hereto, with such appropriate insertions, omissions, substitutions and other variations as are required by this Agreement, and may have such letters, numbers or other marks of identification and such legends and endorsements placed thereon as may, consistently herewith, be approved by the Initial Beneficiary and the UTI Holders. Any portion of any Undivided Trust Interest Certificate may be set forth on the reverse or subsequent pages thereof. Each Undivided Trust Interest Certificate shall be printed, lithographed, typewritten, mimeographed, photocopied or otherwise produced or may be produced in any other manner as may, consistently herewith, be determined by the Initial Beneficiary and the UTI Holders. Each UTI Certificate shall constitute a “certificated security” within the meaning of Section 8-102(a)(4) of the UCC.

 

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(c) The UTI and each SUBI and their related Trust Assets shall be a separate Series of the Trust pursuant to Section 3806(b)(2) of the Business Trust Statute. Separate and distinct records shall be maintained by the UTI Trustee for the UTI and the UTI Assets shall be held and accounted for separately from any SUBI Assets. In accordance with Section 3804(a) of the Business Trust Statute or to the extent otherwise permitted by law, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the UTI or the UTI Assets shall be enforceable against the UTI Assets only, and not against the assets of the Trust generally or against any SUBI Assets. Except to the extent required by law or specified in this Agreement, the Undivided Trust Interest shall not be subject to claims, debts, liabilities, expenses or obligations arising from or
with respect to any SUBI or any Trustee. No creditor or holder of a claim relating to assets allocated to the UTI shall be entitled to maintain any action against or recover any SUBI Assets.

(d) Any holder, assignee or pledgee of an Undivided Trust Interest or Undivided Trust Interest Certificate shall be deemed, by virtue of the acceptance of such Undivided Trust Interest, Undivided Trust Interest Certificate, assignment or pledge, to have (i) agreed, accepted and to have become bound by and subject to the non-petition covenant set forth in Section 6.9 and (ii) released and waived all claims against or with respect to (A) any assets owned by the Trustees in their respective individual capacities and (B) all of the Trust Assets other than the UTI Assets and the income and proceeds therefrom and, in the event that such release is not given effect, to fully subordinate all claims it may be deemed to have against any Trust Assets that are not UTI Assets. Without limiting the foregoing, each
holder, assignee or pledgee of an Undivided Trust Interest or Undivided Trust Interest Certificate shall be deemed to have released and waived all claims against or with respect to all SUBI Assets and, in the event that such release is not given effect, to fully subordinate all claims it may be deemed to have against such SUBI Assets.

(e) To the extent specified in this Agreement or any UTI Supplement, UTI Certificates may be assigned, pledged or otherwise transferred; provided that each assignee, pledgee or other transferee must (i) give a non-petition covenant substantially similar to that set forth in Section 6.9, (ii) execute an agreement in favor of each Holder from time to time of any other UTI Certificates and any SUBI Certificate, to release all claims to the Trust Assets allocated to each other UTI Certificate and each SUBI Certificate and (iii) comply with Sections 4.1(d) and 4.1(f) hereof and the other applicable terms and restrictions in this Agreement or the applicable SUBI Supplement.

(f) No interest in any UTI, UTI Certificate or UTI Portfolio shall be transferred, assigned, sold or conveyed if, as the result of such transfer, assignment, sale or conveyance, the Trust would become a publicly traded partnership for purposes of the Internal Revenue Code of 1986, as amended, and any such purported transfer, assignment, sale or conveyance shall be null and of no effect.

 

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Section 4.2 Special Units of Beneficial Interest.

(a) The Delaware Trustee shall from time to time, as directed in writing by the Initial Beneficiary, with the written consent of each Registered Pledgee of the UTI, identify and allocate, or cause to be identified and allocated, on the books and records of the Trust, from Trust Assets, whether or not then allocated to the UTI, one or more separate portfolios of SUBI Assets to be accounted for independently within the Trust (each such portfolio, a “SUBI Portfolio”). Upon their allocation as SUBI Assets, such Trust Assets shall no longer be assets of, or allocated to, the Undivided Trust Interest (unless and until specifically reallocated to the Undivided Trust Interest from that SUBI Portfolio pursuant to the terms hereof and the applicable SUBI Supplement). The Delaware Trustee shall execute
and deliver, on behalf of the Trust, to or upon the written order of the Initial Beneficiary, one or more SUBI Certificates evidencing each newly created SUBI (each, an “Original SUBI”). In addition, the Delaware Trustee shall from time to time, as directed by any Holder of an Original SUBI, with the prior written consent of each applicable SUBI Control Parry, but without the consent of the Initial Beneficiary or any Holder or Registered Pledgee of the UTI, divide such Original SUBI into two or more separate SUBIs and cause to be identified and allocated on the books and records of the Trust to such newly created SUBIs such Trust Assets as may be specified by such Holder with the prior written consent of each applicable SUBI Control Party from the Trust Assets then allocated to the original SUBI. The beneficial interest in each such SUBI Portfolio shall constitute a separate “special unit of
beneficial interest” (“SUBI”) in the Trust. Separate and distinct records shall be maintained for each SUBI Portfolio and the SUBI Assets associated with each SUBI shall be held and accounted for separately from the UTI Assets or any other SUBI Assets. Each SUBI Certificate shall represent a specific divided interest in (but only in) such identified SUBI Portfolio and the SUBI Assets allocated thereto. Each SUBI Certificate shall constitute a “certificated security” within the meaning of Section 8-102(a)(4) of the UCC.

(b) Each SUBI shall be represented by one or more certificates (each a “SUBI Certificate”) to be issued by the Trust and shall be created by the execution of a supplement to this Agreement (each a “SUBI Supplement”), which SUBI Supplement shall be executed by the SUBI Trustee and the initial holder(s) of the SUBI Certificates (the holders of the SUBI Certificates from time to time, the “SUBI Holder(s)”) and shall specify (i) the terms and provisions pursuant to which SUBI Certificates shall be issued, with respect to such SUBI, and may be assigned, pledged or otherwise transferred; (ii) the form of any SUBI
Certificate(s) to be issued in connection therewith; (iii) the initial SUBI Assets to be included in such SUBI Portfolio; (iv) the arrangements, if any, whereby additional SUBI Assets may subsequently be added to the SUBI Portfolio; (v) the provisions (if any) relating to custody of the Lease Files and other documents relating to the related SUBI Assets, and under which the proceeds of the related SUBI Assets shall be collected, invested and distributed; and (vi) other relevant terms and provisions specific to such SUBI, all as shall be prescribed and established by the Initial Beneficiary. Each SUBI Certificate may have such appropriate insertions, omissions, substitutions and other variations as are required by this Agreement and the related Trust Documents, including such letters, numbers or other marks of identification and such legends and endorsements placed thereon, consistent with this Agreement, as may be directed by the related SUBI Holders. Notwithstanding the foregoing, in
the event that any SUBI Asset is substituted for an asset (the “Predecessor Asset”) previously allocated to a SUBI, pursuant to the related SUBI Supplement or any related Trust Documents, the Delaware Trustee shall allocate each such substitute asset (the “Substitute Asset”) directly to the SUBI Portfolio which contained 

 

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the Predecessor Asset with notice to, but without requiring the consent of, the Initial Beneficiary, each affected Trustee, each affected UTI Holder, each affected SUBI Holder, each affected Registered Pledgee and each affected SUBI Control Party.

(c) Each SUBI shall be a separate Series of the Trust as provided in Section 3806(b)(2) of the Business Trust Statute. In accordance with Section 3804(a) of the Business Trust Statute or to the extent otherwise permitted by law, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to each SUBI or the related SUBI Assets shall be enforceable against such SUBI Assets only, and not against the Trust Assets generally or against any other UTI Assets or SUBI Assets. Except to the extent required by law or specified in this Agreement or in the related SUBI Supplement, SUBI Assets with respect to a particular SUBI shall not be subject to claims, debts, liabilities, expenses or obligations arising from or with respect to the Trust, any Trustee, the UTI or any other SUBI. No creditor or holder of a claim relating to assets allocated
to any SUBI shall be entitled to maintain any action against or recover any assets allocated to the UTI or any other SUBI. Notice of this limitation on interseries liabilities and the limitation set forth in this Section 4.1(c) shall be set forth in the certificate of trust of the Trust (whether originally or by amendment) as filed or to be filed in the Office of the Secretary of State of the State of Delaware pursuant to the Business Trust Statute, and upon the giving of such notice in the certificate of trust, the statutory provisions of Section 3804 of the Business Trust Statute relating to limitations on interseries liabilities (and the statutory effect under Section 3804 of setting forth such notice in the certificate of trust) shall become applicable to the Trust and each SUBI and the UTI. Except in accordance with this Agreement and any related SUBI Supplement, any purported transfer or assignment of
a SUBI or a SUBI Certificate shall be deemed null, void and of no effect under this Agreement. Notwithstanding the foregoing, each SUBI Certificate may be transferred, assigned or pledged (A) to any Affiliate of Interpool which is a Special Purpose Entity or (B) by the related Holders to a Special Purpose Entity to or in favor of (1) a trustee for one or more securitization trusts or (2) one or more other entities, in each case, (x) in connection with one or more Financings, or (y) in connection with the exercise of remedies with respect to an Event of Default or similar default (as defined in the documents executed with respect to a Financing) or (C) to any entity which is not an Affiliate of Interpool; provided that, in each case, the transferee, assignee or pledgee must (i) give a non-petition covenant substantially similar to that set forth in Section 6.9, (ii) execute an agreement in favor of each
Holder from time to time of any UTI Certificates and any other SUBI Certificate, to release all claims to the Trust Assets allocated to each UTI Certificate and each, other SUBI Certificate and (iii) comply with Sections 4.2(e) and 4.2(f) hereof and the other applicable terms and restrictions in this Agreement and the applicable SUBI Supplement.

(d) Each holder of a SUBI shall appoint for such SUBI a trustee (a “SUBI Trustee”) which shall perform such duties, have such responsibilities and adhere to such standards of care as are specified in Part V of this Agreement and the applicable SUBI Supplement, but only with respect to the SUBI for which it was appointed. The same Person may be appointed as SUBI Trustee for all or any SUBIs and may also serve as the UTI Trustee and/or the Delaware Trustee.

 

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(e) No interest in any SUBI, SUBI Certificate or SUBI Portfolio shall be transferred, assigned, sold or conveyed if, as the result of such transfer, assignment, sale or conveyance, the Trust would become a publicly traded partnership for purposes of the Internal Revenue Code of 1986, as amended.

(f) Any holder, assignee or pledgee of a SUBI or SUBI Certificate shall be deemed, by virtue of the acceptance of such SUBI, SUBI Certificate, assignment or pledge, to have (i) agreed, accepted and to have become bound by and subject to the non-petition covenant set forth in Section 6.9 and (ii) released and waived all claims against or with respect to (A) the UTI Assets and (B) the SUBI Assets allocated to any other SUBI that may be outstanding and, in the event that such release is not given effect, to fully subordinate all claims it may be deemed to have against all Trust Assets allocated to the UTI Portfolio and each other SUBI Portfolio. Nothing contained herein shall be deemed a release or waiver by any party of any claim or right against a Seller under its respective Transfer Agreement or such
Seller’s interest in any Trust Assets in respect of such a claim or right, if such Seller is the Holder of a UTI Certificate or a SUBI Certificate.

Section 4.3 Form of Certificate; Registration of Certificates.

(a) Each Certificate shall be printed, lithographed, typewritten, mimeographed, photocopied or otherwise produced or may be produced in any other manner consistent with this Agreement as may be determined by the Holders of the Certificates of such Series.

(b) Each Certificate shall be executed on behalf of the Trust by manual or facsimile signature of an Authorized Officer of the Delaware Trustee. Certificates bearing a manual or facsimile signature of individuals who were, at the time when such a signature shall have been affixed, authorized to sign on behalf of the Delaware Trustee shall, when duly authenticated pursuant hereto, be validly issued and shall entitle the holder of such Certificate to the benefits of this Agreement, notwithstanding that such individuals or any of them shall cease to be so authorized prior to the authentication and delivery of such Certificates or did not hold such offices at the date of authentication and delivery of such Certificates. No Certificate shall entitle its holder to any benefit under this Agreement, or shall be valid for any purpose, unless there shall appear on such Certificate a
certificate of authentication, executed by the Delaware Trustee or an agent thereof, by manual signature; such authentication shall constitute conclusive evidence that such Certificate shall have been duly authenticated and delivered hereunder.

(c) The Delaware Trustee shall keep or cause to be kept at its offices at One Rodney Square, 1st Floor, 920 King Street, Wilmington, Delaware 19801, or such other office as it shall designate by written notice to the Initial Beneficiary, (in each case, the “Certificate Registrar Office”), a certificate register (the “Certificate Register”) in which, subject to such reasonable regulations as it may prescribe, the Delaware Trustee shall provide for the registration of Certificates and of pledges, transfers and exchanges of Certificates as herein provided. When acting in such capacity, the Delaware Trustee shall be the “Certificate
Registrar”.

 

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(d) In the case of any pledge of a Certificate, the Holder shall deliver to the Delaware Trustee and the related UTI Trustee or related SUBI Trustee, as the case may be, a notice of registered pledge substantially in the form of Exhibit D hereto (a “Notice of Registered Pledge” and any such pledge, a “Registered Pledge”).

(e) Each Notice of Registered Pledge shall be executed by the Holder of the subject Certificate and each person (a “Registered Pledgee” or a holder of a “Pledgee Interest”) to whom such Certificate shall be assigned, pledged or transferred, and shall set forth the following information:

(i) identification of the Certificate assigned, pledged or transferred;

(ii) the name of the Holder;

(iii) the name and address of the Registered Pledgee.

(f) Upon receipt of written notification from the Initial Beneficiary, each SUBI Control Party and each Registered Pledgee of a UTI Certificate or a SUBI Certificate, as the case may be, of a Registered Pledge on a Certificate, the Certificate Registrar shall record in the Certificate Register, the interest of the pledgee in such Certificate (the “Registered Pledgee Interest”). Until such time as the holder of the Registered Pledgee Interest shall have provided written notice to the Certificate Registrar that such Registered Pledgee Interest has been released, such Registered Pledgee shall be entitled to exercise all of the rights (but shall have none of the obligations) of the Holder of such Certificate and each Holder hereby agrees that it shall have no right to exercise any such rights
until such Registered Pledgee Interest has been released.

(g) Upon surrender for registration of transfer of any Certificate, the Delaware Trustee shall execute, authenticate and deliver in the name of the designated transferee or transferees one or more new Certificates of the same type and proportionate beneficial interest dated the date of authentication by the Delaware Trustee. Each Certificate presented or rendered for registration of transfer or exchange shall be accompanied by a written instrument of transfer in a form reasonably satisfactory to the Delaware Trustee, upon which the Delaware Trustee may conclusively rely, duly executed by the holder of such Certificate or its attorney and each SUBI Control Party with respect to any SUBI Certificate duly authorized in writing. Each Certificate surrendered for registration of transfer and exchange shall be canceled and subsequently disposed of by the Delaware Trustee in accordance
with its customary practice. No service charge shall be made for any registration of transfer or exchange of any Certificate, but the Delaware Trustee may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer or exchange of Certificates. Prior to the due presentation of a Certificate for registration of transfer, the Delaware Trustee and each agent of the Delaware Trustee may treat the Person in whose name any Certificate shall be registered in the Certificate Register (which in the event of a Registered Pledge shall be the 

 

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Registered Pledgee) as the owner of such Certificate for all purposes, and neither the Delaware Trustee nor any such agent shall be bound by any notice to the contrary. The Delaware Trustee shall furnish or cause to be furnished to the UTI Trustee or SUBI Trustee of the related Certificate the name and address of the transferee of any Certificate presented for registration of transfer or exchange. The Delaware Trustee shall furnish or cause to be furnished to each Servicer, the Initial Beneficiary, each Holder and each SUBI Control Party, within two (2) Business Days after receipt by the Delaware Trustee of request therefor, a list of the names and addresses of the holders of the Certificates.

Section 4.4 Maintenance of Office of Agency.

The Delaware Trustee shall maintain an office or offices or agency or agencies where Certificates may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Delaware Trustee in respect of the Certificates and this Agreement may be served. The Delaware Trustee initially designates the Certificate Registrar Office as its office for such purposes. The Delaware Trustee shall give prompt written notice to the Initial Beneficiary and to the Holders, Registered Pledgees and each SUBI Control Party of Certificates of any change in the location of the Certificate Register or the Certificate Registrar Office.

Section 4.5 Mutilated, Destroyed, Lost or Stolen Certificates.

If any mutilated Certificate is surrendered to the Delaware Trustee, or the Delaware Trustee receives evidence to its satisfaction of the mutilation, destruction, loss or theft of any Certificate, and there is delivered to the Delaware Trustee such security or indemnity as may be reasonably required by it to save it harmless, then the Delaware Trustee shall execute and authenticate, in lieu of such mutilated, destroyed, lost or stolen Certificate, a Certificate of the same type and proportionate beneficial interest bearing an identification number not contemporaneously outstanding, which shall constitute for all purposes a substitute for the original Certificate, which original Certificate shall be deemed canceled and shall be so marked on the books and records of the Delaware Trustee.

Section 4.6 Retitling of Equipment.

Each holder of all UTI Certificates or, subject to any restrictions on such right set forth in the agreements governing any Financing, all SUBI Certificates of a particular SUBI, may at any time, at its option, to be exercised by written notice delivered to the applicable UTI Trustee or SUBI Trustee and the applicable Servicer, request that (1) the Equipment allocated to such UTI Certificate or SUBI Certificate, as the case may be, be retitled in the name of such holder (or a Person designated by such holder), and/or that a lien may be noted on the Certificate of Title therefor in the name of such holder (or a Person designated by such holder) or (2) that possession of such Certificate of Title and/or the other Trust Assets allocated to such UTI Certificate or SUBI Certificate, as the case may be, be transferred to such holder (or a Person designated by such holder), free and clear of the
interest of the Trust; provided, that in either case, the Rating Agency Condition shall have been satisfied. Except as otherwise provided in the related SUBI Supplement, such holder shall indemnify the Trust, the Trustees and such Servicer for, and hold 

 

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the Trust, the Trustees and such Servicer harmless against, any and all expenses, costs, liabilities, losses and claims incurred by any of them as a result of or relating to such retitling or transfer, or any action such holder shall take or fail to take as the registered owner of such Equipment or the owner of such Trust Assets, including, without limitation, sales and transfer taxes and registration fees.

PART V

DUTIES AND POWERS OF TRUST AND TRUSTEES; TRUSTEE LIABILITY

Section 5.1 Duties and Powers of Trustees; Limitations on Trust Activity.

(a) The UTI Trustee and the Delaware Trustee are authorized to execute and deliver this Agreement and each Trustee is authorized to execute and deliver, with respect to its particular UTI or SUBI interest, the SUBI Supplement and any other Financing Documents to which the Trust is a party and each certificate or other document attached as an exhibit to or contemplated thereby and any amendment or other agreement, as evidenced conclusively by such Trustee’s execution thereof. In addition to the foregoing, each Trustee is authorized, but shall not be obligated (unless duly instructed pursuant to this Agreement, any other Trust Document or any Financing Document or except to the extent that any Trust Documents expressly require, such Trustee to take particular action), to take all actions required of the Trust pursuant to the related Financing Documents. Each Trustee is
further authorized from time to time to take such action as the Holder(s) of the affected Certificate(s), with the prior written consent, as the case may be, of the Registered Pledgees of such UTI Certificate or the applicable SUBI Control Party thereof, recommends with respect to the UTI or SUBI (and any related Financing Documents) in which it has an interest. In addition, as permitted by the terms of this Agreement, each Trustee is authorized to take such action as the Initial Beneficiary, SUBI Control Party or any Registered Pledgee shall recommend in writing. Each Trustee shall be deemed to have discharged its duties to the extent that the Servicer or some other party has agreed to perform such duties and such Trustee shall not be held liable for the default or failure of the Servicer or other party to carryout such obligations, nor shall such Trustee have any duty to monitor such obligations of the Servicer or other party.

Each Trustee undertakes to perform such duties and engage in such activities, and only such duties and activities, as are specified in this Agreement, any Supplement entered into pursuant to this Agreement by such Trustee, as it may be directed from time to time in accordance with the terms of this Agreement or the related Supplement, including, without limitation, in connection with: (i) the transactions entered into pursuant to any financing transaction of any sort undertaken by the Initial Beneficiary, or any related UTI Holder or SUBI Holder or any leasing transaction entered into by the Initial Beneficiary or any related UTI Holder or SUBI Holder as lessor or lessee, which is, in any case, secured, directly or indirectly, by the Trust Assets, by all or part of the Undivided Trust Interest or by any SUBI or any interest therein including, without limitation, any financing undertaken in
connection with the issuance and assignment of a SUBI and related SUBI Certificate; (ii) any sale, transfer or pledge by the Initial Beneficiary, any related UTI Holder or any SUBI Holder of any interest in the related UTI 

 

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or SUBI; (iii) any other asset securitization, sale-leaseback, secured loan or similar transaction involving Trust Assets or any beneficial interest therein or in the Trust (the transactions in clauses (i) , (ii) and (iii) are collectively referred to herein as “Financings”); (iv) sales by the Trust of Equipment, Contracts and other Trust Assets to the extent permitted by the terms of any Financing (provided that the Certificate of Title of any item of Equipment so sold is amended to reflect the transfer of ownership thereof from the Trust or the Trustee on behalf of the Trust, unless applicable law permits the transfer of ownership of such equipment without an amendment to the related Certificate of Title) and (v) activities
ancillary to any of the foregoing.

(b) Except as otherwise provided in this Agreement, neither the Trustee nor the Trust shall: (i) issue beneficial interests in the Trust Assets or securities of the Trust other than the Certificates, (ii) borrow money on behalf of the Trust, (iii) make loans, extend credit on behalf of the Trust or enter into any guarantee, (iv) invest in or underwrite securities, (v) offer securities in exchange for Trust Assets (other than Certificates), (vi) repurchase or otherwise reacquire any Certificate (other than for purposes of cancellation) except as permitted by or in connection with the related UTI Supplement, UTI Certificate, SUBI Supplement or SUBI Certificate, (vii) grant any security interest in or Lien upon any Trust Assets, (viii) acquire assets, other than Trust Assets as contemplated in Section 2.1 of this Agreement, (ix) allocate any Trust Assets out of any UTI Portfolio or SUBI Portfolio unless directed in writing by the related UTI Holder and any related Registered Pledgee (with respect to the UTI Portfolio) and the related SUBI Control Party (with respect to the SUBI Portfolio), thereof, (x) enter into any agreements or contracts or engage in any trade or business not contemplated by this Agreement or merge or acquire substantially all the assets of any other Person. In no event shall any of the foregoing actions be permitted if it results in, or would result in, a Ratings Effect.

(c) Each Trustee, upon receipt of each resolution, certificate, statement, opinion, report, document, order or other instrument that shall be specifically required to be furnished to it pursuant to the Trust Documents, shall examine such item to determine whether it conforms to the requirements of the Trust Documents.

(d) No Holder shall take, or direct any Trustee to take, any action that (i) is inconsistent with the purposes of the Trust as set forth in Section 1.2, (ii) would result in the treatment for federal income tax purposes of the Trust as a separate entity (i.e., an association taxable as a corporation or a partnership) or (iii) is contrary to applicable laws or its organizational documents.

(e) The Trustees may establish accounts and receive, maintain, invest and disburse funds in accordance with Part VII hereof and each Servicing Agreement, each Financing Document and each related Supplement hereto.

(f) On the date hereof, the Trust and the Initial Beneficiary are entering into a Servicing Agreement with Interpool with respect to the UTI Portfolio (the “Initial Servicing Agreement”), and the Trust shall from time to time enter into one or more other servicing 

 

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agreements (together with the Initial Servicing Agreement, each a “Servicing Agreement”) with Interpool, or with such other or additional Persons as the holder of the UTI Certificate or, subject to the provisions of the agreements governing any Financing, any SUBI Certificate, shall designate in writing with respect to the applicable Portfolio represented by such Certificate (each, in such capacity, a “Servicer”). Interpool is hereby designated as the initial Servicer. Each Servicing Agreement shall specify various duties, powers, liabilities, obligations and compensation of the Services with respect to the administration and servicing of those Trust Assets as to which such Servicing Agreement applies, including,
without limitation, Equipment, Contracts and other Trust Assets. The Trust may from time to time enter into one or more agreements (each, a “Nominee Agreement”) with any Person that the Initial Beneficiary shall designate, such Person to serve as a nominee for the Trust in those jurisdictions where the Trust may not be named as owner on Certificates of Title. The Trustees, and each of them, on behalf of the Trust, shall execute and deliver such documents, certificates, applications, powers of attorney and registrations provided to it in final execution form as shall be requested and prepared by a Servicer pursuant to a Servicing Agreement or by the Initial Beneficiary in connection with the administration of the Trust or the servicing of the Trust Assets, including, without limitation, a power of attorney to each Dealer and each Servicer and, to the extent deemed appropriate by each Servicer, any
lessee under a Contract (a “User”); provided, however, that no Trustee shall be obligated to enter into any such documents, certificates, applications, powers of attorney or registrations that adversely affect such Trustee’s own rights, duties or immunities under this Agreement or otherwise.

(g) The Trustees and the Trust shall have such powers as are necessary and appropriate to the conduct of their duties as set forth in this Agreement and in the other Trust Documents.

(h) A Trustee shall not have any duty or obligation to manage, make any payment with respect to, register, record, sell, dispose of or otherwise deal with the Trust Assets, or to otherwise take or refrain from taking any action under, or in connection with, any document contemplated hereby to which such Trustee is a party, except as expressly provided by this Agreement or in any document or written instruction received by such Trustee pursuant to this Agreement; and no implied duties or obligations shall be read into this Agreement, any other Trust Document or any other Financing Document against such Trustee. A Trustee shall have no responsibility for filing any financing continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any security interest or lien granted to it hereunder or to prepare or file any filing with the
Securities and Exchange Commission for the Trust or to record this Agreement or any other Financing Document or to prepare or file any tax or tax-related documents on behalf of the Trust; provided that the related Trustee shall cooperate with each Holder, each SUBI Control Party and each Registered Pledgee of a Certificate in connection with the preparation and filing of any such document.

 

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Section 5.2 Duty of Care.

(a) No provision of this Agreement shall be construed to relieve any Trustee from liability for its own grossly negligent action (or, with respect to any handling or disbursement of funds, its own negligent action), its own grossly negligent failure to act (or, with respect to any handling or disbursement of funds, its own negligent failure to act), its own bad faith, its own breach of its representations, warranties or covenants given in its individual capacity or its own willful misfeasance; provided, however, that:

(i) a Trustee shall not be personally liable for any action taken, suffered or omitted by it or any error of judgment, in each case made in good faith by any officer of, or any other employee of the corporate trust office of, such Trustee, including any vice president, trust officer or any other officer of such Trustee customarily performing functions similar to those performed by such officers or to whom any corporate trust matter is referred because of such Person’s knowledge of or familiarity with the particular subject, unless it shall be proved that such Trustee was grossly negligent (or with respect to any handling or disbursement of funds, negligent) or acted with willful misfeasance in performing its duties in accordance with the terms of this Agreement and such Trustee shall not be liable for the negligence or willful misconduct of agents or
attorneys appointed in good faith and, with respect to any such agents appointed by the Trustee performing the duties of the Trustee hereunder, with the prior written consent of each Holder or if subject to a Registered Pledge, either (x) the applicable SUBI Control Party or (y) the Registered Pledgee thereof (in each case if so required in the applicable Financing Documents); and

(ii) a Trustee shall not be personally liable with respect to any action taken, suffered or omitted to be taken in good faith in accordance with the express directions of the Initial Beneficiary or any Registered Pledgee of a UTI Certificate (to the extent relating to the related UTI Trustee, or if there is no Registered Pledgee with respect to a UTI Certificate, then the related UTI Holder), or the applicable SUBI Control Party (to the extent relating to the related SUBI Trustee) relating to the exercise of any trust power conferred upon such Trustee under this Agreement.

(b) Notwithstanding Section 5.2(a), a Trustee shall not be required to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties under this Agreement or the other Trust Documents, or in the exercise of any of its rights or powers, if there shall be reasonable grounds for believing that the repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it, and none of the provisions contained in this Agreement or the other Trust Documents shall in any event require a Trustee to perform, or be responsible for the manner or omission of performance of, any of the duties or obligations of a Servicer under any Servicing Agreement.

(c) Except for actions expressly authorized by this Agreement or the other Trust Documents or actions taken pursuant to the instructions of the Initial Beneficiary, or the Holder or Registered Pledgee of any Certificate, in each case as permitted by this Agreement, a Trustee shall take no action as to which such Trustee has been notified in writing by the Initial 

 

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Beneficiary, the applicable Holder or Registered Pledgee of the related UTI Certificate or the applicable SUBI Control Party of the related SUBI Certificate, as the case may be, or if a Responsible Officer has actual knowledge, that such action would impair the beneficial interests in the Trust, would impair the value of any Trust Asset or would adversely affect the credit rating of any Financing.

(d) All information obtained by a Trustee regarding the administration of the Trust, whether upon the exercise of its rights under this Agreement, any other Trust Document or otherwise, shall be maintained by such Trustee in confidence and shall not be disclosed to any other Person other than to the Initial Beneficiary, any Special Purpose Entity (if applicable), any Servicer, any Holder of an interest in the UTI or UTI Certificate or any Registered Pledgee thereof, or any Holder of an interest in a SUBI or a SUBI Certificate or any Registered Pledgee or SUBI Control Party thereof, unless such disclosure is permitted by this Agreement, any other Trust Document or any other agreement contemplated hereby, is reasonably necessary or incidental to the Trustee’s discharge of its duties or exercise of its rights hereunder, is required by any applicable law or regulation or
pursuant to subpoena (and such Trustee has provided notice thereof to the Initial Beneficiary), or such information is already otherwise publicly available.

Section 5.3 Certain Matters Affecting the Trustees.

Except as otherwise provided in this Agreement:

(a) a Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, Officer’s Certificate, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document reasonably believed by it to be genuine and to have been signed or presented by the proper party or parties. In particular, but without limitation, whenever in this Agreement it is provided that a Trustee shall receive or may rely on the instructions or directions of the Initial Beneficiary, a Special Purpose Entity, or the Holder or Registered Pledgee of a UTI Certificate or a SUBI Certificate, any written, instruction or direction purporting to bear the signature of any officer of the Initial Beneficiary, a Special Purpose Entity, or the holder, assignee or Registered Pledgee of a UTI
Certificate or a SUBI Certificate in connection with a Financing reasonably believed by it to be genuine may be deemed by Trustee to have been signed or presented by the proper party;

(b) a Trustee may consult with counsel, and any opinion of counsel shall be full and complete protection in respect of any action taken or suffered or omitted by the Trustee under this Agreement in good faith and in accordance with such opinion of counsel;

(c) Subject to Section 5.2(a), a Trustee shall be under no obligation to exercise any of the discretionary rights or powers vested in it by this Agreement, or to institute, conduct or defend any litigation under this Agreement or in relation to this Agreement, at the request, order or direction of the Initial Beneficiary, UTI Holder, SUBI Holder, a Special Purpose Entity, a 

 

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SUBI Control Party, a Registered Pledgee or any other beneficiary of the Trust pursuant to the provisions of this Agreement; unless such requesting Person(s) shall have offered to such Trustee reasonable security or indemnity against the costs, expenses and liabilities that may be incurred therein or thereby;

(d) a Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document, unless requested in writing to do so by the Initial Beneficiary, a UTI Holder or a SUBI Holder, a SUBI Control Party, a Special Purpose Entity, or by a Registered Pledgee; provided, however, that if the payment within a reasonable time to such Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of such Trustee, not reasonably assured to such Trustee by the security afforded to it by the terms of this Agreement, such Trustee may require reasonable indemnity against such cost, expense or liability as a condition to so proceeding; the reasonable expense of every such
examination shall be paid by the Person(s) requesting such examination or, if paid by such Trustee, shall be reimbursed as an expense of the Trust upon demand;

(e) a Trustee may execute any of the trusts or powers under this Agreement or perform any duties under this Agreement either directly or by or through agents or attorneys or one or more custodians and the Trustee shall not be liable for the acts or omissions of any agent or attorney selected by the Trustee in good faith and, with respect to any such agent appointed by the Trustee performing the duties of the Trustee hereunder, with the prior written consent of the Initial Beneficiary and each UTI Holder and any Registered Pledgee of the related UTI Certificates and the SUBI Control Party with respect to the related SUBI Certificate (unless the related Financing Documents provide otherwise);

(f) Under no circumstances shall a Trustee be liable for indebtedness evidenced by or arising under this Agreement or any other Financing Document, including any amounts owed to any UTI Holder or SUBI Holder;

(g) A Trustee shall not be responsible for or in respect of the validity or sufficiency of this Agreement or for the due execution hereof by any other party hereto or for the form, character, genuineness, sufficiency, value or validity of any of the Trust Assets, or for or in respect of the validity or sufficiency of any Financing Documents, and such Trustee shall in no event assume or incur any liability, duty or obligation to any UTI Holder or SUBI Holder or the Initial Beneficiary, other than as expressly provided for herein or in any other Trust Document or expressly agreed to in any Financing Documents; and

(h) A Trustee shall not be liable for the default or misconduct of the Initial Beneficiary, the Settlor, the Custodian, any Holder, any Registered Pledgee, any Servicer, any Special Purpose Entity, or any other Trustee under this Agreement, any other Trust Document or any Financing Document or otherwise and such Trustee shall have no obligation or liability to 

 

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perform the obligations or monitor the same of the Initial Beneficiary, the Settlor, any Custodian, any Holder, any Registered Pledgee, any Special Purpose Entity, any other Trustee or any Servicer under this Agreement or any other Trust Document or any other Financing Document.

(i) (A) A Trustee shall not be required to take any action hereunder or under any other Trust Document or Financing Document if such Trustee shall have reasonably determined, or shall have been advised by counsel, that such action is likely to result in liability on the part of such Trustee or is contrary to the terms hereof, or any, other Trust Document or any other Financing Document or for which the Trustee shall not have been otherwise indemnified therefore or is otherwise contrary to law.

    (B) Whenever a Trustee is unable to decide between alternative courses of action permitted or required by the terms of this Agreement or any other Trust Document or any Financing Document, such Trustee shall promptly give notice (in such form as shall be appropriate under the circumstances) to the Holders of each UTI Certificate and each SUBI Certificate which could be affected thereby, each SUBI Control Party and any Registered Pledgee of such Certificates, requesting instruction as to the course of action to be adopted and, to the extent such Trustee acts in good faith in accordance with any written instruction received from (i) with respect to each UTI Certificate, first from the related Registered Pledgee and then from the Holder of such UTI Certificate and (ii) with respect to each SUBI Certificate, first from the related SUBI Control Party, second from the related
Registered Pledgee and then from the Holder of such SUBI Certificate, such Trustee shall not be liable on account of such action to any such Person. If such Trustee shall not have received instruction within ten days of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it shall take or refrain from taking such action not in violation with this Agreement or any other Trust Document and the Financing Documents, as it shall deem to be in the best interests of first, the holders of any Registered Pledgee Interest and then the UTI Holder with respect to the UTI Certificate or the related SUBI Control Party, with respect to the SUBI Certificate, which could be affected thereby and shall have no liability to any Person for such action or inaction.

    (C) In the event a Trustee is unsure as to the application of any provision of this Agreement or any other Trust Document or any Financing Document or any such provision is ambiguous as to its application, or is, or appears to be, in conflict with any other applicable provision, or in the event that this Agreement permits any determination by such Trustee or is silent or is incomplete as to the course of action that such Trustee is required to take with respect to a particular set of facts, such Trustee may give notice (in such form as shall be appropriate under the circumstances) to the Holders of the UTI Certificates or SUBI Control Party, with respect to the SUBI Certificate and any Registered Pledgee requesting instruction and, to the extent that such Trustee acts or refrains from acting in good faith in accordance with any such instruction received from (i) with respect to
each UTI Certificate, first from the related Registered Pledgee and then from the Holder of such UTI Certificate and (ii) with respect to each SUBI Certificate, first from the related SUBI Control Party, second from the related Registered Pledgee and then from the Holder of such SUBI Certificate, such Trustee shall not be liable, on 

 

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account of such action or inaction, to any Person. If such Trustee shall not have received instruction within ten days of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it shall take or refrain from taking such action not in violation of this Agreement, any other Trust Document or any Financing Documents, as it shall deem to be in the best interests of first, any SUBI Control Party, with respect to the SUBI Certificate, any Registered Pledgee of a related Certificate and then the related UTI Holders or the related SUBI Holders, as applicable, and shall have no liability to any Person for such action or inaction.

Section 5.4 Trustees Not Liable.

A Trustee shall have no obligation to perform any of the duties of the Initial Beneficiary or any Servicer unless explicitly set forth in this Agreement, any other applicable Trust Documents or any Servicing Agreement to which such Trustee is a party. A Trustee shall at no time have any responsibility or liability for or with respect to: (a) the validity or sufficiency of this Agreement (except as set forth in Section 6.7) or the due execution hereof by the Initial Beneficiary or the legality, validity and enforceability of any security interest in any Trust Asset; (b) the perfection or priority of such a security interest or the maintenance of any such perfection and priority; (c) the efficacy of the Trust or its ability to generate the payments to be distributed to the Initial Beneficiary or any Holder or its
permitted assignees) under this Agreement, including, without limitation, the existence, condition, location, use and ownership of any Trust Asset; (d) the existence and enforceability of any Contract; (e) the existence and contents of any Contract or any computer or other record thereof, (f) the validity of the assignment of any Trust Asset to the Trust or of any intervening assignment; (g) the completeness of any Contract; (h) the performance or enforcement of any Contract; (i) the compliance by the Initial Beneficiary or any Servicer with any covenant or the breach by the Initial Beneficiary or any Servicer of any warranty or representation in any document and the accuracy of any such warranty or representation prior to such Trustee’s receipt of notice or other discovery of any noncompliance therewith or any breach thereof; (j) any investment of monies by any Servicer or any loss resulting therefrom (it being understood that such Trustee shall remain responsible for any Trust
Assets that it may hold); (k) the acts or omissions of any Dealer or any other Person, the related Holder, any Servicer or any User under, or in connection with the origination of, any Contract; (1) any action of any Servicer taken in the name of such Trustee or the acts or omissions of any Servicer under any Servicing Agreement or any other agreement contemplated hereby or thereby; (m) any action by such Trustee taken at the instruction of the Initial Beneficiary, a Special Purpose Entity, any Holder of a Certificate for which there is no Registered Pledgee, any Registered Pledgee with respect to its related Trust Assets, any related SUBI Control Party or any Servicer; (n) the preparation, execution or filing of any tax returns on behalf of the Trust; or (o) the preparation, execution or filing of any document or report with the Securities and Exchange Commission or any state securities commission or agency; provided, however, that the foregoing shall not relieve any Trustee of its obligation to perform its duties under this Agreement. Except with respect to a claim based on the failure of a Trustee to perform its duties as set forth in Sections 5.1(f), 6.9 and 6.10, or based on a Trustee’s willful misconduct, bad faith or gross negligence, no recourse shall be had against the Person or institution serving as a Trustee in its individual capacity for any claim based on any provision of this Agreement or any Servicing Agreement, or any Trust Asset or assignment thereof. A Trustee shall not have any 

 

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personal obligation, liability or duty whatsoever to the Initial Beneficiary, any Holder, any Registered Pledgee or any permitted assignee(s) thereof or any other Person with respect to any such claim, and any such claim shall be asserted solely against the Trust Assets or any Person who shall furnish indemnity as provided in this Agreement. A Trustee shall not be accountable for the use or application by the Initial Beneficiary or a Special Purpose Entity or any other Holder or Registered Pledgee of any of the SUBI Certificates or of the proceeds of such Certificates, or for the use or application of any funds properly paid to any Servicer pursuant to any Servicing Agreement.

Section 5.5 Indemnity of Trustees.

Each Trustee shall be indemnified and held harmless with respect to any loss, liability or expense, including reasonable attorneys’ and other professionals’ fees and expenses (collectively “Claims”), but only out of and to the extent of the Trust Assets allocated to the Portfolio in respect of which the claim arose out of or incurred in connection with (a) any of the Trust Assets (including, without limitation, any Claims relating to Contracts, Equipment, consumer fraud, consumer leasing act violations, misrepresentation, deceptive and unfair trade practices, and any other claims arising in connection with any Contract, personal injury or property damage claims arising with respect to any item of Equipment or any claim with respect to any tax arising with respect to any Trust Asset) or (b) such
Trustee’s acceptance or performance of the trusts and duties contained in this Agreement, with any allocation of such indemnification among the Trust Assets to be made as provided for in Section 7.1 (c) hereof; provided, however, that such Trustee shall not be indemnified or held harmless out of the Trust Assets as to any Claim (i) for which the Initial Beneficiary, a Servicer or any of their respective Affiliates shall be liable and shall have paid pursuant to this Agreement or a Servicing Agreement, (ii) incurred by reason of such Trustee’s willful misconduct, bad faith or gross negligence, or (iii) incurred by reason of such Trustee Bank’s breach of its respective representations and warranties pursuant to any Servicing Agreement or
Section 6.7 of this Agreement. The UTI Trustee shall in no event have any recourse to any SUBI Assets, including such SUBI Assets which were UTI Assets at the time a Claim against the UTI Trustee arose, and no SUBI Trustee shall have any recourse to any UTI Assets or any Trust Assets allocated to any other SUBI. This Section 5.5 shall survive the termination of the Trust and this Agreement.

Section 5.6 Trustee’s Right Not to Act.

A Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement, any Financing Documents or the other Trust Documents, or to institute, conduct or defend any litigation under this Agreement, any Financing Documents or the other Trust Documents or otherwise or in relation to this Agreement, any Financing Documents or the other Trust Documents, at the request, order or direction of any Holder or Registered Pledgee of a Certificate, unless such Person has offered to such Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities that may be incurred by such Trustee therein or thereby; the right of such Trustee to perform any` discretionary act enumerated in this Agreement or in any other Financing Document shall not be construed as a duty.

 

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Section 5.7 Doing Business in Other Jurisdictions.

Notwithstanding anything contained herein to the contrary, neither a Trustee Bank nor the related Trustee shall be required to take any action in any jurisdiction other than in the State of its incorporation or any State in which it is qualified to do business (each, a “State of Qualification”) if the taking of such action may (i) require the consent, approval, authorization or order of, or the giving of notice to, or the registration with, or the taking of any other action in respect of, any state or other governmental authority or agency of any jurisdiction other than a State of Qualification; (ii) result in any fee, tax or other governmental charge under the laws of any jurisdiction or any political subdivisions thereof in existence on the date hereof, other than a State of Qualification,
becoming payable by the Trustee Bank or (iii) subject the Trustee Bank to personal jurisdiction in any jurisdiction other than a State of Qualification for causes of action arising from acts unrelated to the consummation of the transactions by such Trustee Bank or the related Trustee, as the case may be, contemplated hereby. In the event that a Trustee does not take any action because such action may result in the consequences described in the preceding sentence, such Trustee will appoint an additional trustee pursuant to Section 6.6 to proceed with such action.

Section 5.8 No Election to be a Corporation.

Neither the Trust nor any Trustee shall make or authorize any Person to make an election to have the Trust classified or taxed as a corporation for federal income tax purposes or any applicable state or local income or franchise tax purposes.

PART VI

APPOINTMENT, COMPENSATION AND REMOVAL OF TRUSTEES

Section 6.1 Appointment of Trustees.

(a) The UTI Trustee shall have the rights, powers and duties with respect to the UTI set forth herein. The Initial Beneficiary hereby appoints First Union Trust Company, National Association as the UTI Trustee. The UTI Trustee does hereby accept such appointment and agrees to act as a trustee of the Trust for the benefit of the Initial Beneficiary and such other Persons as may become holders of all or a part of the UTI, subject to the terms and conditions of this Agreement.

(b) The Delaware Trustee shall have only such rights, powers and duties as are specifically and expressly required by the Business Trust Statute and this Agreement. The Initial Beneficiary hereby appoints First Union Trust Company, National Association as the Delaware Trustee. The Delaware Trustee hereby accepts such appointment.

 

 

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(c) Any SUBI Trustee shall have the rights, powers and duties set forth herein and in any related SUBI Supplement hereto with respect to the applicable SUBI. Any SUBI Trustee shall accept such appointment and agree to act as a trustee of the Trust for the benefit of the holders of the applicable SUBI, subject to the terms and conditions of this Agreement, by execution of a counterpart to this Agreement, the applicable SUBI Supplement or other agreement acceptable to the UTI Trustee.

(d) The UTI Trustee, Delaware Trustee and any SUBI Trustee may be the same Person. 

Section 6.2 Qualification of Trustees.

Except as otherwise provided in this Agreement, each Trustee under this Agreement shall at all times be (a) a bank or trust company organized under the laws of the United States or one of the fifty states of the United States or the District of Columbia, with capital and surplus of at least $250,000,000 and a rating on its long-term debt and short-term securities of not less than “A2/P-1” from Moody’s and “AA-1” from Standard & Poor’s, and (b) in the case of the Delaware Trustee only, have a principal place of business in the State of Delaware and meeting the requirements of Section 3807 of the Business Trust Statute. In the event the Delaware Trustee complies with clause (a) above but has its principal place of business outside of the State of Delaware, then there shall at all times be a co-trustee appointed to act as the trustee in Delaware
pursuant to Section 3807 of the Business Trust Statute. Such co-trustee shall serve as trustee in Delaware for the sole purpose of satisfying the requirement of Section 3807 of the Business Trust Statute that the Trust have at least one trustee with a principal place of business in Delaware. It is understood and agreed by the parties hereto that such co-trustee shall have none of the duties or liabilities of a Trustee.

Section 6.3 Resignation or Removal of Trustees.

(a) A Trustee may at any time resign by giving sixty (60) days prior written notice to the Initial Beneficiary, each SUBI Control Party, each applicable Holder and each applicable Registered Pledgee. Upon receiving the notice of resignation, the holder of the UTI (in the case of the UTI Trustee) or each SUBI Control Party of the applicable SUBI (in the case of a SUBI Trustee) shall promptly appoint a successor Trustee who meets the eligibility requirements set forth in Section 6.2 by written instrument. If no successor Trustee shall have been so appointed and have accepted such appointment within 30 days after the giving of such notice of resignation, the resigning Trustee, the UTI Holder or SUBI Holder, as the case may be, or any Registered Pledgee or SUBI Control Party of such Certificate may
petition any court of competent jurisdiction for the appointment of a successor Trustee.

(b) If at any time:

(i) a Trustee shall cease to be qualified in accordance with Section 6.2,

 

 

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(ii) any representation or warranty made by a Trustee Bank pursuant to Section 6.7 shall prove to have been untrue in any material respect when made,

(iii) a Trustee shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or a receiver of a Trustee or of its property shall be appointed, or any public officer shall take charge or control of a Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, or

(iv) the holder of the UTI Certificate, with the consent of the Registered Pledgee of such UTI Certificate or SUBI Control Party of the related SUBI Certificate, respectively, otherwise desires, in its sole discretion, to remove and replace the applicable Trustee with respect to the UTI Portfolio or SUBI Portfolio represented by such Certificate,

then such Trustee may be removed upon written notice by the Holder of the applicable UTI Certificate, with the consent of the Registered Pledgee of such UTI Certificate, or by the SUBI Control Party of the related SUBI Certificate, respectively. If a Trustee resigns or is removed under the authority of the immediately preceding sentence, the Holder of the applicable UTI Certificate, with the consent of the Registered Pledgee of such UTI Certificate or the SUBI Control Party of the related SUBI Certificate, respectively, shall promptly appoint a successor Trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the Trustee so removed, one copy to each of the Servicer, the Initial Beneficiary and the successor Trustee, together with payment of all amounts owed to the outgoing Trustee. If no successor Trustee shall have been so appointed and have accepted
such appointment within 30 days after the giving of such notice of resignation, the resigning Trustee, the applicable UTI Holder or SUBI Holder, and any Registered Pledgee or SUBI Control Party of such UTI Certificate or SUBI Certificate, respectively, may petition any court of competent jurisdiction for the appointment of a successor Trustee.

(c) Any resignation or removal of a Trustee and appointment of a successor Trustee pursuant to any of the provisions of this part shall not become effective until acceptance of appointment by the successor Trustee.

Section 6.4 Successor Trustee.

Any successor Trustee appointed as provided in Section 6.3 shall execute, acknowledge and deliver to the applicable Servicer, the Initial Beneficiary, each Holder, each Registered Pledgee, each SUBI Control Party and to its predecessor Trustee an instrument accepting such appointment under this Agreement, and thereupon the resignation or removal of the predecessor Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its predecessor under this Agreement, with like effect as if originally named as the applicable Trustee. The predecessor Trustee shall deliver to the successor Trustee all documents and

 

 

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statements held by it under this Agreement, and the Initial Beneficiary, each Holder, each Registered Pledgee, each SUBI Control Party and the predecessor Trustee shall execute and deliver such instruments and do such other things as may reasonably be required for fully and certainly vesting and confirming in the successor Trustee all such rights, powers, duties and obligations. No successor Trustee shall accept appointment as provided in this Section 6.4 unless at the time of such acceptance such successor Trustee shall be eligible under the provisions of Section 6.2.

Section 6.5 Merger or Consolidation of Trustees.

(a) Any entity (i) into which a Trustee may be merged or consolidated, (ii) which may result from any merger, conversion, or consolidation to which a Trustee shall be a party, or (iii) which may succeed to all or substantially all of the corporate trust business of a Trustee, which entity, if requested by the Initial Beneficiary or the Holder of the UTI or the applicable SUBI, or any Registered Pledgee thereof or any SUBI Control Party, executes an agreement of assumption to perform every obligation of such Trustee under this Agreement, shall be the successor of such Trustee hereunder, provided such entity shall be eligible pursuant to Section 6.2, without the execution or filing of any instrument or any further act on the
part of any of the parties hereto (other than the written consent of the Initial Beneficiary or the Holder of the UTI Certificate or the SUBI Control Party of the applicable SUBI Certificate).

(b) Upon the happening of any of the events described in Section 6.3, 6.4 or 6.5(a), the successor Trustee shall, to the extent required by Delaware law, cause an amendment to the Trust’s certificate of trust to be filed with the Secretary of State, in accordance with the provisions of Section 3810 of the Business Trust Statute, indicating the change with respect to such Trustee’s identity.

Section 6.6 Appointment of Co-Trustee, Separate Trustee, or Nominee.

(a) Notwithstanding any other provision of this Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any Trust Asset may at the time be located, the Servicer with respect to the applicable beneficial interest and a Trustee, acting jointly, shall have the power to execute and deliver all instruments to appoint one or more Persons approved by such Servicer and Trustee and, if any, the related SUBI Control Party (to the extent such Trust Assets are allocated to a related SUBI Portfolio), to act as co-trustee, jointly with such Trustee, or as a separate trustee or nominee, of all or any part of the Trust, and to vest in such Person, in such capacity and for the benefit of the holder of the Certificate representing such beneficial interest and its permitted assignee(s), such title to the Trust Assets, or any part thereof, and, subject
to the other provisions of this Section 6.6, such powers, duties, obligations, rights and trusts as such Persons may consider necessary or desirable. No co-trustee, separate trustee, or nominee under this Agreement shall be required to meet the terms of eligibility as a successor trustee pursuant to Section 6.2, except that no co-trustee, separate trustee or nominee with respect to the UTI, any UTI Assets, any SUBI or any SUBI Assets under this Agreement may be the Initial Beneficiary or any Affiliate thereof.

 

 

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 (b) Each separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provisions and conditions:

(i) all rights, powers, duties and obligations conferred or imposed upon the applicable Trustee shall be conferred upon and exercised or performed by such Trustee and such separate trustee and co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without such Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed (whether as a Trustee under this Agreement or as successor to any Servicer under any Servicing Agreement), such Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the Trust or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or
co-trustee, but solely at the direction of such Trustee;

(ii) no Trustee under this Agreement shall be personally liable by reason of any act or omission of any other separate trustee or co-trustee appointed under this Agreement (for the avoidance of doubt, (x) the UTI Trustee shall not be so liable for acts or omissions of the Delaware Trustee, any SUBI Trustee, any separate trustee or any co-trustee, (y) the Delaware Trustee shall not be so liable for acts or omissions of any UTI Trustee, any SUET Trustee, any separate trustee or any co-trustee and (z) each SUBI Trustee shall not be so liable for acts or omissions of the Delaware Trustee, the UTI Trustee, any other SUBI Trustee, any separate trustee or any co-trustee); and

(iii) the Initial Beneficiary (or the holder of a UTI Certificate for a separate trustee or co-trustee acting with respect to the UTI Portfolio), each SUBI Control Party and a Trustee acting jointly may at any time accept the resignation of or remove any separate trustee or co-trustee.

(c) Any notice, request or other writing given to a Trustee shall be deemed to have been given to each of the then separate trustees and co-trustees as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Agreement and the conditions of this Section 6.6. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with a Trustee or separately, as may be provided therein, subject to all the provisions of this Agreement, specifically including every provision of this Agreement relating to the conduct of, affecting the liability of, or affording protection to, such Trustee. Each such instrument shall be filed
with such Trustee and a copy thereof given to each Servicer.

Any separate trustee or co-trustee may at any time appoint the applicable Trustee, its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Agreement on its behalf and in its name. If any 

 

 

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separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts relating to this Agreement and the Trust Assets shall vest in and be exercised by the applicable Trustee, to the extent permitted by law, without the appointment of a new or successor trustee. Notwithstanding anything to the contrary in this Agreement, the appointment of any separate trustee or co-trustee shall not relieve the applicable Trustee of its obligations and duties under this Agreement.

Section 6.7 Representations and Warranties of Trustee Banks.

Each Trustee Bank hereby makes the following representations and warranties as of the date hereof, and the Trustee Bank shall be deemed to remake the following representations and warranties upon each designation of a SUBI at the direction of the Initial Beneficiary in connection with a Financing, on which the Initial Beneficiary, each of its permitted assignees and each Registered Pledgee, each SUBI Control Party and Holder of a Certificate (and beneficial owner of any portion thereof in connection with a Financing) may rely:

(a) Organization and Good Standing. The Trustee Bank is a banking corporation or association duly organized, validly existing and in good standing under the law of its jurisdiction of organization;

(b) Power and Authority. The Trustee Bank has full power, authority and right to execute, deliver and perform its obligations under this Agreement, and has taken all necessary action to authorize the execution, delivery and performance by it of this Agreement;

(c) Due Execution. This Agreement has been duly executed and delivered by the Trustee Bank, and is a legal, valid and binding instrument enforceable against the Trustee Bank in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law;

(d) No Conflict. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated herein, nor compliance with the provisions hereof, will conflict with or result in a breach of, or constitute a default (with notice or passage of time or both) under any provision of any law, governmental rule or regulation, judgment, decree or order binding on the Trustee or the articles of association or by-laws of the Trustee or any provision of any mortgage, indenture, contract, agreement or other instrument to which the Trustee is a party or by which it is bound; and

(e) Location of Records. The office where the Trustee Bank keeps its records concerning the transactions contemplated hereby is located at, in the case of the UTI Trustee and 

 

 

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the Delaware Trustee, One Rodney Square, 1st Floor, 920 King Street, Wilmington, Delaware 19801.

(f) Principal Place of Business. The principal place of business of the Delaware Trustee is and at all times shall be located in the State of Delaware.

Section 6.8 Trustee’s Fees and Expenses.

To the extent not paid by the Servicer pursuant to the related Servicing Agreement and to the extent provided in any Financing Documents or as otherwise provided for herein or in the other Trust Documents, a Trustee shall receive compensation for the services rendered by it hereunder, and will be reimbursed for expenses and disbursements (including the reasonable fees and disbursements of its counsel) incurred or made by it hereunder pursuant to a separate fee agreement entered into by such Trustee with the Settlor. Otherwise, each Trustee shall be paid, out of Trust Assets allocated to the Portfolio administered by such Trustee, its reasonable compensation (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) and reimbursement of all reasonable expenses (including, without limitation, reasonable attorneys’
fees), as may be agreed upon in writing between the Initial Beneficiary and such Trustee, for all services rendered by it in the execution of the Trust and in the exercise and performance of any of the powers and duties under this Agreement. This Section 6.8 shall survive the termination of this Agreement.

Section 6.9 No Petition.

(a) Each of the Trustees, the Custodian, the Settlor, the Servicer, the Initial Beneficiary, each UTI Holder, each SUBI Holder and each pledgee of any beneficial interest in the Trust (whether or not a Registered Pledgee), on its own behalf and on behalf of each Holder for which it is acting, covenants and agrees that prior to the date which is one year and one day (or the length of each other longer preference period, provided in the Bankruptcy Code, if applicable after the date upon which all obligations under each Financing have been paid in full, it will not institute against, or join any other Person in instituting against, the Trust, any other Special Purpose Entity, or any general partner of any Special Purpose Entity that is a partnership, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or other proceedings under any federal or state
bankruptcy or similar Insolvency Law. This Section 6.9 shall survive the termination of this Agreement or the resignation or removal of such Trustee under this Agreement.

(b) No bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or other proceedings under any federal or state bankruptcy, insolvency or similar law shall be instituted or joined in by the Trust without the unanimous consent of all Trustees and Holders hereunder (including each pledgee of any beneficial interest in the Trust (whether or not a Registered Pledgee)). No Trustee shall so consent or have any power to institute or join in any such proceedings unless directed to do so by the Holders of all UTI Certificates, all SUBI Certificates, each SUBI Control Party and each Registered Pledgee of each Certificate.

 

 

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Section 6.10 Place of Business.

At all times, either the Delaware Trustee or a co-trustee hereunder shall be a resident of, or have a principal place of business in, the State of Delaware. The Trust shall not have any employees; provided, however, that nothing herein shall restrict or prohibit any Trustee from having employees within or without the State of Delaware.

PART VII

 

ACCOUNTS

Section 7.1 Accounts; Expenses.

(a) The UTI Trustee may establish and maintain with respect to the Undivided Trust Interest such bank accounts as may be directed in writing by the Initial Beneficiary and each SUBI Trustee will establish and maintain with respect to each SUBI such bank accounts as may be set forth in the applicable SUBI Supplement or the documents relating to any Financing (collectively, the “Trustee Accounts”, and each such Trustee Account with respect to any particular SUBI, a “SUBI Account”). The Servicer is authorized to make deposits into and to make disbursements from the Trustee Accounts to the extent set forth in the related UTI Supplement or SUBI Supplement or any document related to any financing of such UTI or SUBI.

(b) If the Delaware Trustee shall receive any payments on any Equipment, Contracts, other Trust Assets, or any Collateral, whether pursuant to any Transfer Agreement or otherwise, the Delaware Trustee, within two (2) Business Days after its receipt and identification of such amounts as relating to the UTI Portfolio or any SUBI Portfolio, shall deposit all such funds and all income and proceeds thereof into the account (if any) maintained with respect to the related SUBI Portfolio or UTI Portfolio, as the case maybe. Pending deposit into such account, such funds shall be held in trust and invested, at the direction of any Registered Pledgee of such UTI Portfolio (or if there is no Registered Pledgee of such UTI Portfolio, then the Holder of the related UTI Certificate) or the SUBI Control Party of such related SUBI Portfolio, solely in Eligible Investments and any proceeds of
such Eligible Investments shall constitute Trust Assets. No Trustee shall be liable for any loss incurred pursuant to an investment of funds in Eligible Investments.

(c) To the extent not paid by the Servicer pursuant to the Servicing Agreement and to the extent provided in the related Financing Documents, all Trust expenses shall be paid out of the Trust Assets, including, without limitation, (i) any reimbursement due to any Servicer for payments from its own operating accounts solely in order to fund any Servicer Advance (as defined in the related Servicing Agreement) made by such Servicer, with the consent of the applicable Trustee (to be given only at the direction of the Initial Beneficiary or in accordance with the terms of any Financing), with respect to any Contract or item of Equipment, (ii) Servicer Fees (as defined in the related Servicing Agreement) (and expenses (which shall exclude salaries, 

 

 

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benefits, overtime wages and other “overhead’’ costs and expenses of the Servicer), if any, not covered by such Servicer Fee under any Servicing Agreement), (iii) Trustee and Custodian fees and expenses and (iv) other Trust expenses, if any; provided, however, that (x) to the extent that an expense or liability of a Trustee, a Custodian, the Initial Beneficiary or a Special Purpose Entity (if applicable) shall be incurred or suffered with respect to a discrete Trust Asset or group of Trust Assets (including, without limitation, contract, tort or tax claims relating to one or more specific Contracts or items of Equipment) (each an “Affected Trust Asset” and collectively, the “Affected Trust Assets”), all of which either are contained in one or more Portfolios, but not in the other Portfolio(s), the holders of the Certificates related to the affected Portfolios containing any Affected Trust Asset (pro rata in the ratio of the aggregate value of those Affected Trust Assets held in each such Portfolio as recorded on the books of the Trust to the aggregate value of all Affected Trust Assets held in all such Portfolios), shall bear in full the burden of such Trustee, the Custodian, Initial Beneficiary or Special Purpose Entity expense or liability, but (y) to the extent that any such expense or liability of a Trustee, the Custodian, Initial Beneficiary or a Special
Purpose Entity shall be incurred or suffered with respect to the Trust Assets generally, all beneficiaries of the Trust shall bear the burden of such Trust expenses or liabilities on a pro rata basis in the ratio of the aggregate value of Trust Assets held in each respective SUBI Portfolio and the UTI Portfolio, as each is recorded on the books of the Trust, to the total value of all Trust Assets. Any pro rata allocation of an expense or liability among one or more of the SUBI Portfolios or the ‘UTI Portfolio shall be made in good faith and so as not to disproportionately affect any SUBI Portfolio or the UTI Portfolio.

(d) Subject to the applicable provisions of the related Financing Documents, all or a portion of the funds deposited into each Trustee Account shall be separately invested by the applicable Trustee from time to time at the written direction of the Initial Beneficiary or a Special Purpose Entity or the holder of a SUBI Certificate (as appropriate) or the applicable Servicer, as its designee, all as specified in the applicable Servicing Agreement and the applicable Trustee shall incur no liability in connection with such investment if made without negligence and in accordance with the direction of the Initial Beneficiary, Holder or Registered Pledgee of any Certificate or designated Servicer (in the event of any conflicting instructions, with respect to any UTI Certificate, the direction of the Pledgee of such related UTI Certificate or with respect to any SUBI Certificate, the
direction of the SUBI Control Party of such SUBI Certificate, or if none, the related Servicer, shall control). The proceeds of any such investment shall constitute Trust Assets.

Section 7.2 Rebalancing After Third-Party Claim.

To the extent that a third-party claim against Trust Assets is satisfied out of Trust Assets in proportions other than as provided in Section 7.1(c), then, notwithstanding anything to the contrary contained herein, the UTI Trustee and SUBI Trustees shall promptly identify and reallocate (or request the Servicers to identify and reallocate) the remaining Trust Assets among the UTI Portfolio and each of the SUBI Portfolios so that each shall bear the expense of the third party claim as nearly as possible as if the burden of such claim had been allocated as provided in Section 7.1(c).

 

 

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PART VIII

TERMINATION

Section 8.1 Termination of the Trust.

(a) The Trust shall dissolve upon the unanimous written agreement of all of the Holders, each SUBI Control Party and each Registered Pledgee. Upon the dissolution of the Trust, its affairs shall be wound up and its property liquidated. Thereafter, after paying its liabilities in accordance with Section 3808 of the Business Trust Statute, the Delaware Trustee shall cause the Trust’s certificate of trust to be canceled by filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3810 of the Business Trust Statute and the Trust shall terminate.

(b) Any SUBI shall be dissolved and its affairs shall be wound up at the time or upon the happening of events specified in the applicable SUBI Supplement. Any SUBI established in accordance with this Agreement may be dissolved and its affairs wound up without causing the dissolution of the Trust or any other Series thereof. The dissolution, winding up, liquidation or termination of the Trust or any Series thereof shall not affect any limitation of liability with respect to a Series established in accordance with this Agreement, the Certificate of Trust or Section 3804(a) of the Business Trust Statute. The death, incapacity, dissolution, termination or bankruptcy of a beneficial owner of any Series shall not result in the termination or dissolution of such Series and such Series may not be terminated or revoked by a beneficial owner of such Series or other person except in
accordance with the terms of this Agreement or, in the case of any SUBI, the applicable SUBI Supplement.

(c) The Servicer and any other persons who under this Agreement or a SUBI Supplement are responsible for winding up the affairs of any Series may, to the extent permitted in the applicable Series Supplement, in the name of the Trust and for and on behalf of the Trust and such Series, take all actions with respect to the Series as are permitted under Section 3808 of the Business Trust Statute and shall provide for the claims and obligations of the Series and distribute the assets of the Series as provided under Section 3808 of the Business Trust Statute. Any Person, including any Trustee, who under this Agreement or any SUBI Supplement is responsible for winding up such Series’ affairs who has complied with Section 3808(e) of the Business Trust Statute shall not be personally liable to the claimants of the dissolved Series by reason of such Person’s actions in winding up the Series.

(d) This Agreement shall terminate with respect to any separate and identifiable SUBI Assets, and not, except as otherwise provided in a SUBI Supplement with respect to any other SUBI, as to any Trust Assets allocated to any other SUBI, upon the written direction by the Holder of the related SUBI Certificate, with the prior written consent of each SUBI Control Party thereof, to the Trustee of such SUBI Assets to revoke and terminate such SUBI, following (i) the occurrence of such termination events as may be set forth in the SUBI Supplement relating to such SUBI or (ii) the satisfaction of all obligations to creditors, if any, of such Series and the related Financing Documents, the payment to each related Holder or its designee including each

 

 

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related SUBI Control Party of all amounts required to be paid to it pursuant to this Agreement and such Holder’s Certificate.

(e) This Agreement shall terminate with respect to any separate and identifiable UTI Assets upon the written direction by the Holder of the UTI Certificate, with the prior written consent of each Registered Pledgee thereof, to the UTI Trustee to revoke and terminate such UTI, following (x)(i) the occurrence of such termination events as may be set forth in the UTI Supplement relating to such UTI or (ii) the satisfaction of all obligations to creditors, if any, of such Series, the payment to each related Holder or its designee of all amounts required to be paid to it pursuant to this Agreement and such Holder’s Certificate and (y) the due termination of each SUBI, the due satisfaction of all obligations to creditors (if any) of each SUBI, the payment to each related Holder or its designee of all amounts required to be paid and pursuant to this Agreement and such
Holder’s Certificate.

PART IX

 

MISCELLANEOUS PROVISIONS

Section 9.1 Amendment.

Any amendment of this Agreement, and any modification of the rights and obligations of the parties hereto and the rights of Holders, any SUBI Control Party and the Registered Pledgees of each UTI Certificate and SUBI Certificate, shall require a written agreement among the Initial Beneficiary, the Delaware Trustee and the UTI Trustee and/or each SUBI Trustee (entered into by the UTI Trustee or the related SUBI Trustee, as the case may be, at the written direction of the Holder of the UTI Certificate, with the consent of any Registered Pledgee of the UTI Certificate) and each SUBI Control Party, and such additional approvals, if any, required under each SUBI Supplement and Financing Document as are required thereby; provided, however, that any such amendment or modification shall not require any approval of the Holder or Registered Pledgee of the UTI. Certificate or any SUBI Certificate or any approval under any SUBI Supplement or under a Financing related thereof if the Holders and Registered Pledgees of the UTI Certificate or such SUBI Certificate and the holders of the obligations, instruments or securities issued in such Financing would not be adversely affected by such amendment as evidenced by an opinion of counsel to that effect. Prior to the execution of any amendment to this Agreement, any Servicing Agreement or any other agreement contemplated hereby or thereby, a Trustee shall be entitled to receive and rely upon an opinion of counsel stating that the execution of such amendment is authorized or permitted by this Agreement and that all conditions precedent, if any, to such execution and delivery have been satisfied. A Trustee may, but shall not be obligated to, enter into any
such amendment which adversely affects such Trustee’s own rights, duties or immunities under this Agreement or otherwise.

 

 

33

 

Section 9.2 Governing Law.

THIS AGREEMENT SHALL BE CREATED UNDER AND GOVERNED BY AND CONSTRUED UNDER THE INTERNAL LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS.

Section 9.3 Notices.

All demands, notices and communications under this Agreement shall be in writing and shall be delivered or mailed by registered or certified first class United States mail, postage prepaid; return receipt requested; hand delivery; prepaid courier service; or telecopier, and addressed in each case as follows: (a) if to the Settlor, 211 College Road East, Princeton, New Jersey 08540, Attention: William A. Geoghen, facsimile: (609) 951-0362 (confirmation number (609) 452-8900); (b) if to the Initial Beneficiary, 211 College Road East, Princeton, New Jersey 08540, Attention: William A. Geoghen, facsimile: (609) 951-0362 (confirmation number (609) 452-8900); (c) if to the UTI Trustee or Delaware Trustee, One Rodney Square, 1st Floor, 920 King Street, Wilmington, Delaware 19801, Attention: Corporate Trust Administration, facsimile: (212) 946-8302 (confirmation number (212) 946-3881);
(d) if to a Trustee for a SUBI, to such address as shall be designated in the related SUBI Supplement; (e) if to a Holder, at its address set forth in the related Certificate Register; (f) if to Standard & Poor’s and Standard & Poor’s is then a Rating Agency, to 55 Water Street, New York, New York 10041-0003, Attention: Asset Backed Surveillance Group (facsimile no. (212) 438-2662; (g) if to Moody’s and Moody’s is then a Rating Agency, to 99 Church Street, New York, New York 10007, Attention: ABS Monitoring Department (facsimile no. (212) 553-7820); (h) if to a Registered Pledgee, at its address set forth in the applicable Supplement; or (i) if to a SUBI Control Party to the address indicated in the related SUBI Supplement; or (j) with respect to any of the foregoing Persons, at such other address as shall be designated by such Person in a written notice to the other parties hereto in accordance with the provisions hereof.

Section 9.4 Severability of Provisions.

If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement or of any Certificates or the rights of the holders thereof.

Section 9.5 Construction.

For all purposes of this Agreement, unless the context otherwise requires or as otherwise expressly provided, (a) all defined terms shall include both the singular and the plural forms thereof, (b) reference to any gender shall include all other genders; (c) all references to words such as “herein,” “hereof” and the like shall refer to this Agreement as a whole and not to any particular Part or Section within this Agreement; (d) the term “include” means “include without limitation,” and (e) the term “or” is intended to include the term and/or.”

 

 

34

 

Section 9.6 Separate Entity.

The Trustees, the Settlor and the Initial Beneficiary shall in, all transactions with third parties hold the Trust out as a separate entity from the Initial Beneficiary, the Settlor and any Affiliate of either such Person. The Settlor and the Initial Beneficiary each hereby covenants that it shall cause the Trust to (1) maintain its books and records separate from the books and records of any other Person, (2) maintain separate bank accounts from any other Person, (3) not commingle its funds with those of any other Person, (4) not engage in any action that would cause the separate legal identity of the Trust not to be respected, including, without limitation (a) holding itself out as being liable for the debts of any other Person or (b) acting other than through its duly authorized representatives or agents, (5) manage its day-to-day business affairs without the involvement of
Interpool or any Affiliate of Interpool (other than with respect to Interpool in its capacity as Servicer or any Affiliate of Interpool in its capacity as subservicer), (6) maintain a separate office from that of Interpool or any other Affiliate of Interpool, (7) conduct all of its business correspondence in its own name, (8) not act as an agent of Interpool or any Affiliate of Interpool, (9) maintain adequate capitalization in light of its business purposes and (10) conduct all of its business (whether written or oral) solely in its own name. The Settlor and the Initial Beneficiary each further hereby covenants that (x) the consolidated financial statements of Interpool reflect the separate corporate existence of the Trust, (y) neither Interpool nor any Affiliate of Interpool shall guarantee the Trust’s obligations and (z) neither Interpool nor its Affiliates shall act as an agent of the Trust, except Interpool in its capacity as Servicer or any Affiliate of Interpool as
subservicer.

Section 9.7 CONSENT TO JURISDICTION; WAIVER OF OBJECTION TO VENUE; CONCLUSIVE EFFECT OF FINAL JUDGMENT; CONSENT TO SERVICE OF PROCESS. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE. EACH OF THE TRUSTEES, SETTLOR, INITIAL BENEFICIARY, AND EACH CERTIFICATEHOLDER, EACH SUBI CONTROL PARTY AND ANY REGISTERED PLEDGEE THEREOF HEREBY AGREE TO THE NON-EXCLUSIVE JURISDICTION OF ANY FEDERAL COURT LOCATED WITH THE STATE OF DELAWARE. EACH OF THE PARTIES HERETO IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF DELAWARE AND THE UNITED STATES DISTRICT COURT LOCATED IN THE CITY OF WILMINGTON, DELAWARE, AND EACH PART
Y IRREVOCABLY HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND CONSENT TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY SUCH COURT. EACH OF THE PARTIES AGREES THAT, EXCEPT AS OTHERWISE PROVIDED BY APPLICABLE LAW, A FINAL JUDGMENT OBTAINED IN ANY ACTION, SUIT OR PROCEEDING INSTITUTED WITH RESPECT TO THIS AGREEMENT SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY MANNER AS PROVIDED BY APPLICABLE LAW, A CERTIFIED OR TRUE COPY OF WHICH FINAL JUDGMENT SHALL BE CONCLUSIVE EVIDENCE OF THE FACT AND OF THE AMOUNT OF ANY 

 

 

35

 

INDEBTEDNESS OR LIABILITY THEREIN DESCRIBED. EACH OF THE PARTIES HERETO CONSENTS TO SERVICE OF PROCESS BY REGISTERED MAIL OR NATIONALLY RECOGNIZED COURIER SERVICE IN THE UNITED STATES AT THE ADDRESS TO WHICH SUCH NOTICES TO IT ARE TO BE GIVEN, AND TO RECEIVE SERVICE OF PROCESS AT ANY SUCH ADDRESS IN ANY ACTION, SUIT OR PROCEEDING WITH RESPECT TO ANY MATTER AS TO WHICH IT SUBMITS TO JURISDICTION AS SET FORTH ABOVE, IT BEING AGREED THAT SERVICE IN SUCH MANNER SHALL CONSTITUTE VALID SERVICE UPON SUCH PARTY OR ITS SUCCESSORS OR ASSIGNS ONLY IN CONNECTION WITH ANY SUCH ACTION OR PROCEEDING.

Section 9.8 WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE TRUSTEES, SETTLOR, INITIAL BENEFICIARY, AND EACH CERTIFICATEHOLDER, EACH SUBI CONTROL PARTY AND ANY REGISTERED PLEDGEE THEREOF WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE PARTIES HERETO ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN ANY OF THEM IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

Section 9.9 THIRD PARTY BENEFICIARIES.  IN ADDITION TO SUCH OTHER RIGHTS AS MAY BE AVAILABLE UNDER THIS AGREEMENT AND APPLICABLE LAW, EACH REGISTERED PLEDGEE, EACH SUBI CONTROL PARTY (OR OTHER CONTROL PARTY), THE HOLDERS OF CERTIFICATES AND THE SERVICER SHALL BE ENTITLED TO THE BENEFITS OF, AND THE RIGHT TO ENFORCE, THIS AGREEMENT.

Section 9.10 Tax Reporting and Characterization.

(a) Consistent with the treatment of the Trust as a disregarded entity for tax purposes, unless otherwise required by appropriate taxing authorities, the Trust shall not file or cause to be filed any annual or other tax returns. In the event that the Trust or the Delaware Trustee on behalf of the Trust is required to file any tax returns, the Initial Beneficiary or its designee shall prepare or cause to be prepared such returns and shall deliver such returns to the Trustee for signature, unless applicable law requires one or more Holders to sign such returns, in which case the Initial Beneficiary shall deliver or cause to be delivered such returns to the related Holders for signature.

(b) The parties hereto (i) intend that the Trust shall not constitute a separate entity for federal income tax purposes or for state income or franchise tax purposes and (ii) agree to treat the Trust and the Related Trust Assets accordingly for federal income and state income and franchise tax purposes.

 

 

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Section 9.11 Certificates Nonassessable and Fully Paid.

Except as otherwise provided in this Agreement or in a Supplement, the interests represented by the Certificates shall be nonassessable for any losses or expenses of the Trust or for any other reason whatsoever, and, upon authentication thereof by the Trustee, each Certificate shall be deemed fully paid.

Section 9.12 Amendment and Restatement.

(a) The parties hereto agree that the terms and conditions set forth in Section 9.1 of the Original Trust Agreement have been satisfied or are hereby waived by the authorized signatory below by the date hereof in connection with the amendment and restatement of the Original Trust Agreement; provided that such waiver is effective only in this instance and for the specific purpose for which it is given.

(b) In consideration for being made a party to the 2002-A SUBI Supplement; dated as of March 1, 2002, to the Trust Agreement, by and among First Union National Bank, as Custodian, the Initial Beneficiary, the Settlor and the Trustee, First Union National Bank and each other party to the Original Trust Agreement, hereby consents to the removal of First Union National Bank as a party to this Agreement.

 

 

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IN WITNESS WHEREOF, each of the undersigned have caused this Trust Agreement to be duly executed by their respective officers as of the day and year first above written.

 

	
                         
 	
                         
 	
                         
 	
                        INTERPOOL, INC.,
 as Settlor
 
	
                         
 	
                         
 	
                          
 	
                         
 	
      By: 
 	
      
 /s/ Mitchell I. Gordon
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Mitchell I. Gordon
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                        Executive Vice President & Chief  Financial Officer
 

 

	
                         
 	
                         
 	
                         
 	
                        INTERPOOL CHASSIS FUNDING, LLC, 
 as Initial Beneficiary
 
	
                         
 	
                         
 	
                          
 	
                         
 	
      By: 
 	
      
 /s/ Mitchell I. Gordon
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Mitchell I. Gordon
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                        Executive Vice President & Chief  Financial Officer
 

 

	
                         
 	
                         
 	
                         
 	
                        FIRST UNION TRUST COMPANY, 
 NATIONAL ASSOCIATION, as UTI 
 Trustee and Delaware Trustee
 
	
                         
 	
                         
 	
                          
 	
                         
 	
      By: 
 	
      
 /s/ Edward I. Truitt, Jr.
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Edward I. Truitt, Jr.
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                        Vice President
 

ACKNOWLEDGED AND CONSENTED

 

	
                        FIRST UNION NATIONAL BANK, as Custodian
 	
                         
 	
                         
 
	
      By: 
 	
      
 /s/ Ronald L. Fisher
 	
                         
 	
                         
 	
       
 
	
                        Name: 
 	
                        Ronald L. Fisher
 	
                         
 	
                         
 	
                         
 
	
                        Title: 
 	
                        Vice President
 	
                         
 	
                         
 	
                         
 

 

 

EXHIBIT A

TRUST AGREEMENT OF

INTERPOOL TITLING TRUST

DEFINITIONS

“Affected Trust Assets” shall have the meaning set forth in Section 7.1(c).

“Affiliate” means, with respect to any specified Person, any other Person that directly or indirectly controls, is controlled by or is under common control with such specified Person. For the purposes of this definition, “control”, when used with respect to any specified Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

“Agreement” shall have the meaning set forth in the Preamble.

“Applicable Law” means with reference to any Person, all laws, ordinances, treaties, judgments, decrees, injunctions, writs and orders of any court, governmental agency or authority and rules, regulations, orders, directives, licenses and permits of any Governmental Authority applicable to such Person or its property or in respect of its operations.

“Authorized Officer” means, with respect to any matter, any officer of or other Person who is authorized to act for an entity.

“Bankruptcy Code” means the Bankruptcy Reform Act of 1978, as amended from time to time, and any successor statute thereto.

“Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions in New York City, Charlotte, North Carolina, or the city in which the chief executive office of any Trustee is located, are authorized or are obligated by law, executive order or governmental decree to be closed.

“Business Trust Statute” shall have the meaning set forth in Section 1.1. 

“Certificate” means a SUBI Certificate or a UTI Certificate.

 

 

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“Certificateholder” means at any time, any Person in whose name a Certificate is registered in the Certificate Register.

“Certificate of Title” shall have the meaning set forth in Section 2.1(a). 

“Certificate of Trust” shall have the meaning set forth in Section 1.1. 

“Certificate Register” shall have the meaning set forth in Section 4.3(c). 

“Certificate Registrar” shall have the meaning set forth in Section 4.3(c).

“Certificate Registrar Office” shall have the meaning set forth in Section 4.3(c).

“Chassis” means the supporting frame of a non-automotive vehicle designed to be hauled by road exclusive of any container or other housing attached thereon.

“Claims” shall have the meaning set forth in Section 5.5.

“Collateral” , if such term is used with respect to any Financing, shall have the meaning set forth in, or in such other document provided for by, the related Financing Documents.

“Commercial General Liability Insurance Policy” means the commercial general liability insurance policy issued by various underwriters described thereon, a copy of which shall be on file with the Delaware Trustee at all times, or any other replacement policy thereto that is substantially similar to it.

“Contracts” shall have the meaning set forth in Section 2.1(a).

“Control Party” , with respect to the UTI or any SUBI, shall have the meaning set forth in the applicable UTI Supplement, SUBI Supplement or (to the extent set, forth therein) the related Financing Documents.

“Custodian” shall have the meaning set forth in the related Supplement. 

“Dealer” shall have the meaning set forth in Section 2.1(a).

 

 

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“Dealer Agreements” shall have the meaning set forth in Section 2.1(a).

“Delaware Trustee” shall have the meaning set forth in the Preamble.

“Eligible Investments” shall have the meaning set forth in the related Financing Documents or, if not set forth therein, means any one or more of the following:

(i) marketable obligations of the United States of America, the full and timely payment of which are backed by the full faith and credit of the United States of America and which have a maturity of not more than 270 days from the date of acquisition;

(ii) marketable obligations, the full and timely payment of which are directly and fully guaranteed by the full faith and credit of the United States of America and which have a maturity of not more than 270 days from the date of acquisition;

(iii) bankers’ acceptances and certificates of deposit and other interest-bearing obligations (in each case having a maturity of not more than 270 days from the date of acquisition) denominated in dollars and issued by any bank with capital, surplus and undivided profits aggregating at least $100,000,000, the short-term securities of which are rated “A-1” by S&P and “P-1” by Moody’s;

(iv) repurchase obligations with a term of not more than ten days for underlying securities of the types described in clauses (i) , (ii) and (iii) above entered into with any bank of the type described in clause (iii) above;

(v) commercial paper rated at least “A-1” by S&P and “P-1” by Moody’s;

(vi) demand deposits, time deposits or certificates of deposit (having original maturities of no more than 365 days) of depository institutions or trust companies incorporated under the laws of the United States of America or any state thereof (or domestic branches of any foreign bank) and subject to supervision and examination by federal or state banking or depository institution authorities; provided, however, that at the time such investment, or the commitment to make such investment, is entered into, the short-term debt rating of such depository institution or trust company shall be at least “A-1” by S&P and “P-1” by Moody’s; and

(vii) mutual funds commonly known as “Money Market Funds” of Investment Companies regulated under the Investment Company Act of 1940 as amended, which money market funds invest substantially all of their assets in securities of the types described in paragraphs (i) through (vi) above.

Any such Eligible Investment may be purchased by or through the Delaware Trustee, any other Person identified for such purpose in the related Financing Documents or any of their Affiliates. Each such Eligible Investment must mature no later than 1 Business Day immediately preceding disbursements made in accordance with Section 7.1 hereof. A Security Entitlement 

 

 

3

 

with respect to any of the foregoing held in a Securities Account shall constitute an Eligible Investment.

“Equipment” shall have the meaning set forth in Section 2.1(a).

“Event of Default” means any event that, after the expiration of any applicable notice and/or cure periods, would result in a default as such term (or similar term) is defined or described in the related Financing Documents.

“Financing” or “Financings” shall have the meaning set forth in Section 5.1(a).

“Financing Documents” means documents to which the Trust, the Initial Beneficiary, any UTI Holder, any SUBI Holder or a Special Purpose Entity is a party in connection with a Financing.

“Governmental Authority” shall mean (a) any federal, state, county, municipal or foreign government, or political subdivision thereof, (b) any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality or public body, (c) any court or administrative tribunal or (d) with respect to any Person, any arbitration tribunal or other non-governmental authority to whose jurisdiction that Person has consented.

“Holder” or “holder” shall mean the Person which is identified in the Certificate Register as the owner of such Certificate.

“IAL” means Interpool Acquisition, L.L.C, a Delaware Limited Liability Company.

“Initial Beneficiary” shall have the meaning set forth in the Preamble.

“Initial Servicing Agreement” shall have the meaning set forth in Section 5.1(1).

“Insolvency Law” shall mean the Bankruptcy Code or similar Applicable Law.

“Internal Revenue Code of 1986” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto.

“Interpool” shall mean Interpool, Inc., a Delaware corporation, and its successors and assigns.

 

 

4

 

“Interpool Titling Trust” or “Trust” shall have the meaning set forth in Section 1.1.

“Interpool Transfer Agreement” means the Amended and Restated Transfer Agreement, dated as of June 1, 2000, by and between Interpool and the Trust, as such agreement is amended, supplemental and otherwise modified from time to time.

“Lease File” shall mean:

(i) with respect to each Chassis or Refrigeration Generator that is subject to a Contract, the counterpart thereof that constitutes “chattel paper” for purposes of Section 9-102(a) (11) of the Uniform Commercial Code, otherwise a true copy of the fully executed original of each Contract;

(ii) with respect to each Chassis or Refrigeration Generator, the Certificate of Title or a copy of an application therefor duly submitted to the Registrar of Titles or other appropriate public authority in the jurisdiction in which the related Equipment is titled;

(iii) evidence or verification of an insurance policy covering such risks and amounts and otherwise complying with the requirements of the applicable Servicing Agreement and the related Contract for each item of Equipment;

(iv) any loan and security agreement relating to the Trust Assets;

(v) each receipt of acceptance of Equipment, if any;

(vi) each guaranty of a Contract, if any;

(vii) each UCC Financing Statement which relates to the Trust Assets;

(viii) each amendment of a Contract, if any; and.

(ix) each assignment of a Contract, if any.

“Lien” means any security interest, lien, charge, pledge, equity or encumbrance of any kind.

“Master List” shall have the meaning set forth in Section 3.2.

“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

“Nominee Agreement” shall have the meaning set forth in Section 5.1(f).

 

 

5

 

“Notes” means any one of the promissory notes or other indebtedness (if any) issued pursuant to related Financing Documents:

“Notice of Registered Pledge” shall have the meaning set forth in Section 4.3(d).

“Officer’s Certificate” means a certificate signed by a duly Authorized Officer of the Person who is required to sign such certificate.

“Original SUBI” shall have the meaning set forth in Section 4.2(a).

“Original Trust Agreement” shall have the meaning set forth in the Preamble.

“Person” means any individual, corporation (including a business trust), partnership, joint venture, association, joint stock company, trust, bank, limited liability company, trust company, estate (including any beneficiaries thereof), unincorporated organizations or government or any agency or political subdivision thereof.

“Physical Damage Insurance Policy” means the physical damage, recovery/repatriation coverages and loss of revenue policy issued by various underwriters described thereon, a copy of which shall be on file with the Delaware Trustee at all times, and shall include any other replacement policy thereto that is substantially similar to it.

“Pledgee Interest” shall have the meaning set forth in Section 4.3 (e).

“Portfolio” means the UTI Portfolio or any SUBI Portfolio, as the context may require.

“Preamble” means the first paragraph of the Agreement.

“Predecessor Asset” shall have the meaning set forth in Section 4.2(b).

“Rating Agency” means, with respect to any Financing, (i) in the singular, any one of, and, in the plural, all of, Moody’s Investors Service, Inc., Standard and Poor’s Ratings Services, a division of the McGraw Hill Companies, Inc., and Fitch, Inc. and (ii) any other nationally recognized statistical rating agency, as approved by the Control Party for the related UTI or SUBI, but only to the extent that any one or more of such rating agencies issues a rating in connection with such Financing.

 

 

6

 

“Rating Agency Condition” means with respect to any action, that each Rating Agency, which is rating any securities backed (directly or indirectly) by the UTI Certificate or any SUBI Certificate, shall have notified the Trust, each related Certificateholder, each SUBI Control Party, each related Registered Pledgee and each related Series Enhancer in writing that such action will not result in a reduction or withdrawal of any rating at issuance of any such securities with respect to which it is a rating agency, including any underlying rating issued to any Series Enhancer as if such securities were issued without the benefit of any credit enhancement provided by such Series Enhancer.

“Ratings Effect” means any reduction or withdrawal by any Rating Agency of the rating issued by such Rating Agency at the issuance of any securities in connection with a Financing, including any underlying rating (or shadow rating) provided to any Series Enhancer as if such securities were issued without the benefit of any Series Enhancement provided by such Series Enhancer.

“Refrigeration Generator” means a diesel engine/electrical generator combination that, depending on type, mounts on a refrigerated container or under a container Chassis.

“Registered Pledge” shall have the meaning set forth in Section 4.3(d). 

“Registered Pledgee” shall have the meaning set forth in Section 4.3(e). 

“Registered Pledgee Interest” shall have the meaning set forth in Section 4.3(f).

“Registrar of Titles” shall have the meaning set forth in Section 2.1(a).

“Related Holder” means, with respect to a UTI Certificate or a SUBI Certificate, the Person or Persons designated as a Holder of such UTI Certificate or such SUBI Certificate on the Certificate Register, together with their successors and permitted assigns..

“Related Trust Assets” means Trust Assets, with respect to a SUBI, allocated to such SUBI as SUBI Assets, or with respect to Trust Assets not allocated to any SUBI, the Trust Assets retained within the UTI as UTI Assets.

“Related UTI Holder” means, with respect to a UTI Certificate, the Person or Persons designated as a Holder of such UTI Certificate on the Certificate Register, together with their successors and permitted assigns.

 

 

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“Responsible Officer” means any officer in the corporate trust office of a Trustee with direct responsibility for the administration of this Agreement or any other officer of the Trustee to whom any corporate trust matter is referred because of his or her knowledge of or any familiarity with the particular subject.

“S&P” or “Standard & Poor’s” means Standard & Poor’s Ratings Services, a division of the McGraw Hill Companies, Inc., and any successor thereto.

“Secretary of State” means the Secretary of State of the State of Delaware.

“Securities Accounts” means the Trust Accounts, SUBI Account and any other account established pursuant to the terms of this Agreement or any SUBI Supplement or any securities account control agreement that is subject to the lien of this Agreement, each of which accounts shall constitute a “Securities Account” as defined under the Uniform Commercial Code in effect in the State of New York.

“Securities and Exchange Commission” means the Securities and Exchange Commission, an agency of the United States, or any successor thereto.

“Security Entitlements” this term shall have the meaning set forth in Article 8-102(17) of the Uniform Commercial Code in effect in the State of New York.

“Seller” shall have the meaning set forth in Section 2.1(a). 

“Series” means the UTI or any SUBI.

“Series of Notes” means any Series of notes established pursuant to the related Financing Documents.

“Series Enhancement” means the rights and benefits provided to the holders of any securities issued in any financing of any Series of Notes or class pursuant to any letter of credit, surety bond, financial guaranty insurance policy, insurance agreement or other similar arrangement. The subordination of any class to another class shall not be deemed to be a Series Enhancement.

“Series Enhancer” means the Person then providing any Series Enhancement, other than the Noteholders of any class which is subordinated to another class.

 

 

8

 

“Servicer” shall have the meaning set forth in Section 5.1(f):

“Servicing Agreement” shall have the meaning set forth in Section 5.1(f).

“Settlor” shall have the meaning set forth in the Preamble.

“Special Purpose Entity” means a special purpose corporation, partnership, limited partnership, trust, business trust, limited liability company or other entity legally distinct from its parent organization and/or the transferor of all or substantially all of its assets, bankruptcy remote and created for one or more Financings.

“State of Qualification” has the meaning set forth in Section 5.7. 

“SUBI” shall have the meaning set forth in Section 4.2(a).

“SUBI Account” shall have the meaning set forth in Section 7.1(a). 

“SUBI Assets” shall have the meaning set forth in Section 4.1(a). 

“SUBI Certificate” shall have the meaning set forth in Section 4.2(b).

“SUBI Control Party” shall mean, with respect to any SUBI, (i) the Person identified as the SUBI Control Party in the applicable SUBI Supplement, (ii) if there is no “SUBI Control Party” named in such SUBI Supplement, the Registered Pledgee for such SUBI Certificate, or (iii) if there is neither a “SUBI Control Party” nor a Registered Pledgee for such SUBI Certificate, the Holder of such SUBI Certificate.

“SUBI Holder” shall have the meaning set forth in Section 4.2(b). 

“SUBI Portfolio” shall have the meaning set forth in Section 4.2(a).

“SUBI Supplement” shall have the meaning set forth in Section 4.2(b).

“SUBI Trustee” shall have the meaning set forth in Section 4.2(d).

“Substitute Asset” shall have the meaning set forth in Section 4.2(b).

 

 

9

 

“Supplement” shall mean an agreement in accordance with the terms and conditions of this Agreement pursuant to which a SUBI Certificate or an additional UTI Certificate is created.

“2002-A SUBI Supplement” means the 2002-A SUBI Supplement, dated as of March 1, 2002, to the Trust Agreement.

“TLI” means Trac Lease, Inc., a Delaware corporation.

“TLI Transfer Agreement” means the Amended and Restated Transfer Agreement, dated as of June 1, 2000, by and among TLI and the Trust, as such agreement is amended, supplemented and otherwise modified from time to time.

“Transfer Agreement” means, in the singular, any of, and in the plural, each of, the TLI Transfer Agreement, the Interpool Transfer Agreement, and any other transfer agreement between the Trust and any other Seller.

“Trust” shall have the meaning set forth in Section 1.1.

“Trust Agreement” means the Trust Agreement, dated as of June 1, 2000, and as amended and restated as of March 1, 2002, among the Settlor, the Initial Beneficiary and First Union Trust Company, National Association, as titling trustee and consented to by First Union National Bank.

“Trust Assets” shall have the meaning set forth in Section 2.1(a).

“Trust Documents” means this Agreement, each Nominee Agreement, the Certificate of Trust, each Supplement, each Dealer Agreement, each Transfer Agreement and each Servicing Agreement.

“Trustee Accounts” shall have the meaning set forth in Section 7.1(a).

“Trustee Bank” means a Person, in its individual capacity, that acts as a Trustee hereunder.

“Trustee” means any of (as the context may require), and “Trustees” means all of, the Delaware Trustee, the UTI Trustee and the applicable SUBI Trustee(s).

“Undivided Trust Interest” shall have the meaning set forth in Section 4.1(a).

 

 

10

 

“Undivided Trust Interest Certificate” shall have the meaning set forth in Section 4.1(b).

“Uniform Commercial Code” or “UCC” means the Uniform Commercial Code as in effect in the applicable jurisdiction.

“User” shall have the meaning set forth in Section 5.1(f).

“UTI” shall have the meaning set forth in Section 4.1(a).

“UTI Assets” shall have the meaning set forth in Section 4.1(a).

“UTI Certificate” shall have the meaning set forth in Section 4.1(b). 

“UTI Holder” shall have the meaning set forth in Section 4.1(b).

“UTI Pledge” means any pledge of, or the granting of a security interest in, the UTI Certificate, or a portion thereof, by the holder thereof.

“UTI Portfolio” means Equipment, Contracts and related Trust Assets not allocated to a SUBI Portfolio and remaining as part of the Undivided Trust Interest.

“UTI Supplement” shall have the meaning set forth in Section 4.1(b).

“UTI Trustee” shall have the meaning set forth in the Preamble.

 

 

11EXHIBIT 10.8

INTERPOOL CHASSIS FUNDING, LLC

(f/k/a Interpool Funding 2000, L.L.C.), 

as issuer

and

INTERMODAL CHASSIS ISSUANCE, LLC

and

INTERPOOL, INC.,

as Servicer

and

JPMORGAN CHASE BANK

(f/k/a The Chase Manhattan Bank),

as the ICF Indenture Trustee

 

and

WACHOVIA SECURITIES, INC.,

(f/k/a First Union Securities, Inc.)

as Administrative Agent

______________

THIRD AMENDED AND RESTATED ICF INDENTURE

Dated as of June 1, 2000

Amended and Restated as of March 1, 2002

Second Amended and Restated as of September 1, 2002

Third Amended and Restated as of September 30, 2002

______________

ALL RIGHTS IN AND TO THIS INDENTURE ON THE PART OF THE ICF NOTEHOLDERS HAVE BEEN ASSIGNED TO THE ICI INDENTURE TRUSTEE AND ARE SUBJECT TO A SECURITY INTEREST IN FAVOR OF JPMORGAN CHASE BANK, AS ICI INDENTURE TRUSTEE, UNDER THE INDENTURE DATED AS OF SEPTEMBER 1, 2002 FOR THE BENEFIT OF THE PERSONS REFERRED TO THEREIN.

ALL RIGHTS IN AND TO THIS INDENTURE ON THE PART OF EACH LESSOR (OTHER THAN THE RELATED EXCEPTED PROPERTY AND EXCEPTED RIGHTS) HAVE BEEN ASSIGNED TO THE RELATED LESSOR INDENTURE TRUSTEE AND ARE SUBJECT TO A SECURITY INTEREST IN FAVOR OF THE RELATED LESSOR INDENTURE TRUSTEE UNDER THE RELATED LESSOR INDENTURE FOR THE BENEFIT OF THE PERSONS REFERRED TO THEREIN.

 

 

Table of Contents

 

	
                         
 	
                         
 	
                        Page
 
	
                        ARTICLE I DEFINITIONS
 	
                         
 	
                        3
 
	
      Section 101.
 	
      Defined Terms.
 	
       
 	
      3
 
	
                        Section 102.
 	
                        Other Definitional Provisions
 	
                         
 	
                        3
 
	
                        Section 103.
 	
                        Computation of Time Periods
 	
                         
 	
                        4
 
	
                        ARTICLE II THE ICF NOTES
 	
                         
 	
                        5
 
	
                        Section 201.
 	
                        Authorization and Issuance of ICF Notes
 	
                         
 	
                        5
 
	
                        Section 202.
 	
                        Form of ICF Notes
 	
                         
 	
                        8
 
	
                        Section 203.
 	
                        Execution; Limited Recourse Obligation
 	
                         
 	
                        9
 
	
                        Section 204.
 	
                        Certificate of Authentication
 	
                         
 	
                        9
 
	
                        Section 205.
 	
                        Registration; Registration of Transfer and Exchange of ICF Notes
 	
                         
 	
                        10
 
	
                        Section 206.
 	
                        Mutilated, Destroyed, Lost and Stolen ICF Notes
 	
                         
 	
                        12
 
	
                        Section 207.
 	
                        Delivery, Retention and Cancellation of ICF Notes
 	
                         
 	
                        12
 
	
                        Section 208.
 	
                        Payments of Principal and Interest on the ICF Notes
 	
                         
 	
                        13
 
	
                        ARTICLE III ACCOUNTS; DISTRIBUTIONS; INVESTMENT; STATEMENTS TO ICF NOTEHOLDERS; INTEREST; TAXES
 	
                         
 	
                        13
 
	
                        Section 301.
 	
                        ICF Holding Account and ICF Collection Account
 	
                         
 	
                        14
 
	
                        Section 302.
 	
                        Distributions from ICF Collection Account
 	
                         
 	
                        15
 
	
                        Section 303.
 	
                        Investment of Monies Held in each ICF Securities Account
 	
                         
 	
                        22
 
	
                        Section 304.
 	
                        Reports to ICF Noteholders and Other Persons
 	
                         
 	
                        22
 
	
                        Section 305.
 	
                        Records
 	
                         
 	
                        23
 
	
                        Section 306.
 	
                        ICF Securities Accounts
 	
                         
 	
                        23
 
	
                        Section 307.
 	
                        ICF Cash Collateral Account
 	
                         
 	
                        25
 
	
                        Section 308.
 	
                        Security Deposit Account
 	
                         
 	
                        25
 
	
                        Section 309.
 	
                        ICF Deposit Account
 	
                         
 	
                        26
 
	
                        Section 310.
 	
                        No Claim
 	
                         
 	
                        27
 
	
                        Section 311.
 	
                        Compliance with Withholding Requirements
 	
                         
 	
                        27
 
	
                        Section 312.
 	
                        Tax Treatment of ICF Notes
 	
                         
 	
                        28
 
	
                        ARTICLE IV ICF COLLATERAL
 	
                         
 	
                        28
 
	
                        Section 401.
 	
                        Possession of Lease Files and Certificates
 	
                         
 	
                        28
 
	
                        Section 402.
 	
                        Appointment of Custodian
 	
                         
 	
                        29
 
	
                        Section 403.
 	
                        Reserved
 	
                         
 	
                        29
 
	
                        Section 404.
 	
                        The ICF Indenture Trustee’s Appointment as Attorney-in-Fact
 	
                         
 	
                        29
 
	
                        Section 405.
 	
                        Representation and Warranty of Title
 	
                         
 	
                        30
 
	
                        Section 406.
 	
                        Administration of ICF Collateral
 	
                         
 	
                        30
 
	
                        Section 407.
 	
                        Sale of Scrap Units
 	
                         
 	
                        31
 
	
                        Section 408.
 	
                        Exchange Rights
 	
                         
 	
                        31
 
	
                        ARTICLE V ICF REPRESENTATIONS AND WARRANTIES
 	
                         
 	
                        31
 
	
                        Section 501.
 	
                        Existence
 	
                         
 	
                        32
 
	
                        Section 502.
 	
                        Authorization
 	
                         
 	
                        32
 
	
                        Section 503.
 	
                        No Conflict; Legal Compliance
 	
                         
 	
                        32
 
	
                        Section 504.
 	
                        Validity and Binding
 	
                         
 	
  32
 

 

 

i

 

 

	
      Section 505.
 	
      Executive Offices
 	
       
 	
      33
 
	
                        Section 506.
 	
                        No Agreements or Contracts
 	
                         
 	
                        33
 
	
                        Section 507.
 	
                        Consents and Approvals
 	
                         
 	
                        33
 
	
                        Section 508.
 	
                        Margin Regulations
 	
                         
 	
                        33
 
	
                        Section 509.
 	
                        Taxes
 	
                         
 	
                        33
 
	
                        Section 510.
 	
                        Other Regulations
 	
                         
 	
                        34
 
	
                        Section 511.
 	
                        Solvency and Separateness
 	
                         
 	
                        34
 
	
                        Section 512
 	
                        Survival of Representations and Warranties
 	
                         
 	
                        35
 
	
                        Section 513.
 	
                        No Default
 	
                         
 	
                        35
 
	
                        Section 514.
 	
                        Litigation and Contingent Liabilities
 	
                         
 	
                        35
 
	
                        Section 515.
 	
                        Title; Liens
 	
                         
 	
                        35
 
	
                        Section 516.
 	
                        Subsidiaries
 	
                         
 	
                        35
 
	
                        Section 517.
 	
                        No Partnership
 	
                         
 	
                        36
 
	
                        Section 518.
 	
                        Pension and Welfare Plans
 	
                         
 	
                        36
 
	
                        Section 519.
 	
                        Information
 	
                         
 	
                        36
 
	
                        Section 520.
 	
                        Bulk Sales
 	
                         
 	
                        36
 
	
                        Section 521.
 	
                        Selection Procedures
 	
                         
 	
                        36
 
	
                        Section 522.
 	
                        Transfer Agreements
 	
                         
 	
                        37
 
	
                        Section 523.
 	
                        Value Given
 	
                         
 	
                        37
 
	
                        Section 524.
 	
                        Security Interest
 	
                         
 	
                        37
 
	
                        Section 525.
 	
                        Accuracy of Representations and Warranties
 	
                         
 	
                        37
 
	
                        Section 526.
 	
                        Offer and Sale
 	
                         
 	
                        37
 
	
                        Section 527.
 	
                        Master List
 	
                         
 	
                        37
 
	
                        Section 528.
 	
                        Representations, Warranties and Agreements on Behalf of the Trust
 	
                         
 	
                        38
 
	
                        Section 529.
 	
                        Accuracy of Representations and Warranties
 	
                         
 	
                        39
 
	
                        ARTICLE VI ADDITIONAL COVENANTS
 	
                         
 	
                        39
 
	
                        Section 601.
 	
                        Payment of Principal and Interest; Payment of Taxes
 	
                         
 	
                        39
 
	
                        Section 602.
 	
                        Maintenance of Office
 	
                         
 	
                        39
 
	
                        Section 603.
 	
                        Corporate Existence
 	
                         
 	
                        40
 
	
                        Section 604.
 	
                        Protection of ICF Collateral
 	
                         
 	
                        40
 
	
                        Section 605.
 	
                        Performance of Obligations
 	
                         
 	
                        41
 
	
                        Section 606.
 	
                        Negative Covenants
 	
                         
 	
                        41
 
	
                        Section 607.
 	
                        Activities of ICF
 	
                         
 	
                        43
 
	
                        Section 608.
 	
                        No Bankruptcy Petition
 	
                         
 	
                        44
 
	
                        Section 609.
 	
                        Liens
 	
                         
 	
                        44
 
	
                        Section 610.
 	
                        Other Debt and Other Interest Rate Hedge Agreements
 	
                         
 	
                        44
 
	
                        Section 611.
 	
                        Guarantees, Loans, Advances and Other Liabilities
 	
                         
 	
                        45
 
	
                        Section 612.
 	
                        Consolidation, Merger and Sale of Assets
 	
                         
 	
                        45
 
	
                        Section 613.
 	
                        Other Agreements
 	
                         
 	
                        45
 
	
                        Section 614.
 	
                        Amendments to Certain Documents
 	
                         
 	
                        46
 
	
                        Section 615.
 	
                        Capital Expenditures
 	
                         
 	
                        46
 
	
                        Section 616.
 	
                        Other Activities
 	
                         
 	
                        46
 
	
                        Section 617.
 	
                        Compliance with Laws
 	
                         
 	
                        46
 
	
                        Section 618.
 	
                        Investment Company Act
 	
                         
 	
                        46
 
	
                        Section 619.
 	
                        Payments of ICF Collateral
 	
                         
 	
                        46
 
	
                        Section 620.
 	
                        Reserved
 	
                         
 	
                        47
 
	
                        Section 621.
 	
                        Indemnification
 	
                         
 	
  47
 

 

 

ii

 

 

	
      Section 622.
 	
      Books and Records; Insurance
 	
       
 	
      47
 
	
                        Section 623.
 	
                        Taxes
 	
                         
 	
                        48
 
	
                        Section 624.
 	
                        Subsidiaries
 	
                         
 	
                        48
 
	
                        Section 625.
 	
                        Investments
 	
                         
 	
                        48
 
	
                        Section 626.
 	
                        Use of Proceeds; Margin Regulations
 	
                         
 	
                        48
 
	
                        Section 627.
 	
                        ICF Asset Base Certificate
 	
                         
 	
                        48
 
	
                        Section 628.
 	
                        Notices and Reports
 	
                         
 	
                        48
 
	
                        Section 629.
 	
                        Trade Names
 	
                         
 	
                        50
 
	
                        Section 630.
 	
                        Independent Member
 	
                         
 	
                        50
 
	
                        Section 631.
 	
                        Insolvency
 	
                         
 	
                        50
 
	
                        Section 632.
 	
                        Membership Interests
 	
                         
 	
                        51
 
	
                        Section 633.
 	
                        Security Interest
 	
                         
 	
                        51
 
	
                        Section 634.
 	
                        Qualified Currency Hedge
 	
                         
 	
                        51
 
	
                        Section 635.
 	
                        Interest Rate Hedge Agreement
 	
                         
 	
                        52
 
	
                        Section 636.
 	
                        Charter Documents
 	
                         
 	
                        55
 
	
                        Section 637.
 	
                        Other Information
 	
                         
 	
                        55
 
	
                        Section 638.
 	
                        True and Complete Disclosure
 	
                         
 	
                        55
 
	
                        Section 639.
 	
                        Rating Agency Security Interest Representations
 	
                         
 	
                        56
 
	
                        Section 640.
 	
                        Enforcement of Trust Documents and Transfer Agreements
 	
                         
 	
                        57
 
	
                        Section 641.
 	
                        Substantive Consolidation and True Sale
 	
                         
 	
                        57
 
	
                        Section 642.
 	
                        Minimum Net Worth
 	
                         
 	
                        58
 
	
                        Section 643.
 	
                        ICI Swap
 	
                         
 	
                        58
 
	
                        ARTICLE VII DISCHARGE OF INDENTURE
 	
                         
 	
                        58
 
	
                        Section 701.
 	
                        Full Discharge
 	
                         
 	
                        58
 
	
                        Section 702.
 	
                        Prepayment of ICF Notes
 	
                         
 	
                        59
 
	
                        Section 703.
 	
                        Unclaimed Funds
 	
                         
 	
                        60
 
	
                        Section 704.
 	
                        Payments, Computations, Etc.
 	
                         
 	
                        60
 
	
                        ARTICLE VIII DEFAULT PROVISIONS AND REMEDIES
 	
                         
 	
                        61
 
	
                        Section 801.
 	
                        ICF Event of Default
 	
                         
 	
                        61
 
	
                        Section 802.
 	
                        Acceleration of Expected Maturity; Rescission and Annulment
 	
                         
 	
                        63
 
	
                        Section 803.
 	
                        Collection of Indebtedness
 	
                         
 	
                        64
 
	
                        Section 804.
 	
                        Remedies
 	
                         
 	
                        64
 
	
                        Section 805.
 	
                        The ICF Indenture Trustee May Enforce Claims Without Possession of ICF Notes
 	
                         
 	
                        65
 
	
                        Section 806.
 	
                        Allocation of Money Collected
 	
                         
 	
                        65
 
	
                        Section 807.
 	
                        Reserved
 	
                         
 	
                        65
 
	
                        Section 808.
 	
                        Unconditional Right of Holders to Receive Principal and Interest and to Institute Proceedings
 	
                         
 	
                        66
 
	
                        Section 809.
 	
                        Restoration of Rights and Remedies
 	
                         
 	
                        66
 
	
                        Section 810.
 	
                        Rights and Remedies Cumulative
 	
                         
 	
                        66
 
	
                        Section 811.
 	
                        Delay or Omission Not Waiver
 	
                         
 	
                        66
 
	
                        Section 812.
 	
                        Control by ICF Global Requisite Majority
 	
                         
 	
                        67
 
	
                        Section 813.
 	
                        Waiver of Past Defaults
 	
                         
 	
                        67
 
	
                        Section 814.
 	
                        Undertaking for Costs
 	
                         
 	
                        67
 
	
                        Section 815.
 	
                        Waiver of Stay or Extension Laws
 	
                         
 	
                        68
 
	
                        Section 816.
 	
                        Optional Preservation of ICF Collateral
 	
                         
 	
  68
 

 

 

iii

 

 

	
      Section 817.
 	
      Sale of ICF Collateral
 	
       
 	
      69
 
	
                        Section 818.
 	
                        Action on ICF Notes
 	
                         
 	
                        69
 
	
                        ARTICLE IX CONCERNING THE ICF INDENTURE TRUSTEE
 	
                         
 	
                        70
 
	
                        Section 901.
 	
                        Duties of the ICF Indenture Trustee
 	
                         
 	
                        70
 
	
                        Section 902.
 	
                        Certain Matters Affecting the ICF Indenture Trustee
 	
                         
 	
                        71
 
	
                        Section 903.
 	
                        The ICF Indenture Trustee Not Liable
 	
                         
 	
                        72
 
	
                        Section 904.
 	
                        The ICF Indenture Trustee May Own ICF Notes
 	
                         
 	
                        73
 
	
                        Section 905.
 	
                        The ICF Indenture Trustee Fees and Expenses
 	
                         
 	
                        73
 
	
                        Section 906.
 	
                        Eligibility Requirements for the ICF Indenture Trustee
 	
                         
 	
                        74
 
	
                        Section 907.
 	
                        Resignation and Removal of the ICF Indenture Trustee
 	
                         
 	
                        74
 
	
                        Section 908.
 	
                        Successor the ICF Indenture Trustee
 	
                         
 	
                        75
 
	
                        Section 909.
 	
                        Merger or Consolidation of the ICF Indenture Trustee
 	
                         
 	
                        76
 
	
                        Section 910.
 	
                        Separate ICF Indenture Trustees, Co- ICF Indenture Trustees and Custodians
 	
                         
 	
                        76
 
	
                        Section 911.
 	
                        Representations and Warranties
 	
                         
 	
                        78
 
	
                        Section 912.
 	
                        The ICF Indenture Trustee Offices
 	
                         
 	
                        79
 
	
                        Section 913.
 	
                        Notice of Events of Default, Servicer Default or Amortization Event and/or Waivers
 	
                         
 	
                        79
 
	
                        ARTICLE X SUPPLEMENTAL INDENTURES
 	
                         
 	
                        79
 
	
                        Section 1001.
 	
                        Supplemental Indentures Not Creating a New Series Without Consent of Holders
 	
                         
 	
                        79
 
	
                        Section 1002.
 	
                        Supplemental Indentures Not Creating a New Series with Consent of Holders
 	
                         
 	
                        80
 
	
                        Section 1003.
 	
                        Execution of Supplemental Indentures
 	
                         
 	
                        82
 
	
                        Section 1004.
 	
                        Effect of Supplemental Indentures
 	
                         
 	
                        82
 
	
                        Section 1005.
 	
                        Reference in ICF Notes to Supplemental Indentures
 	
                         
 	
                        82
 
	
                        Section 1006.
 	
                        Issuance of Series of ICF Notes
 	
                         
 	
                        82
 
	
                        Section 1007.
 	
                        Rating Agency Condition
 	
                         
 	
                        83
 
	
                        ARTICLE XI HOLDERS LISTS
 	
                         
 	
                        83
 
	
                        Section 1101.
 	
                        ICF to Furnish the ICF Indenture Trustee Names and Addresses of Holders
 	
                         
 	
                        83
 
	
                        Section 1102.
 	
                        Preservation of Information; Communications to Holders
 	
                         
 	
                        83
 
	
                        ARTICLE XII [RESERVED]
 	
                         
 	
                        84
 
	
                        ARTICLE XIII MISCELLANEOUS PROVISIONS
 	
                         
 	
                        84
 
	
                        Section 1301.
 	
                        Compliance Certificates and Opinions
 	
                         
 	
                        84
 
	
                        Section 1302.
 	
                        Form of Documents Delivered to the ICF Indenture Trustee
 	
                         
 	
                        84
 
	
                        Section 1303.
 	
                        Acts of Holders
 	
                         
 	
                        85
 
	
                        Section 1304.
 	
                        Inspection and Audit Inspections
 	
                         
 	
                        85
 
	
                        Section 1305.
 	
                        Limitation of Rights
 	
                         
 	
                        87
 
	
                        Section 1306.
 	
                        Severability
 	
                         
 	
                        87
 
	
                        Section 1307.
 	
                        Notices
 	
                         
 	
                        88
 
	
                        Section 1308.
 	
                        No Waiver; Cumulative Remedies
 	
                         
 	
                        89
 
	
                        Section 1309.
 	
                        Captions
 	
                         
 	
                        89
 
	
                        Section 1310.
 	
                        Governing Law
 	
                         
 	
  89
 

 

 

iv

 

 

	
      Section 1311.
 	
      No Petition
 	
       
 	
      89
 
	
                        Section 1312.
 	
                        Recourse Against Certain Parties
 	
                         
 	
                        89
 
	
                        Section 1313.
 	
                        General Interpretive Principles
 	
                         
 	
                        90
 
	
                        Section 1314.
 	
                        Effective Date of Transaction
 	
                         
 	
                        90
 
	
                        Section 1315.
 	
                        Service of Process and Jurisdiction
 	
                         
 	
                        91
 
	
                        Section 1316.
 	
                        Counterparts
 	
                         
 	
                        91
 
	
                        Section 1317.
 	
                        WAIVER OF JURY TRIAL
 	
                         
 	
                        91
 
	
                        Section 1318.
 	
                        Waiver of Immunity
 	
                         
 	
                        92
 
	
                        Section 1319.
 	
                        Statutory References
 	
                         
 	
                        92
 
	
                        Section 1320.
 	
                        Acknowledgment and Consent
 	
                         
 	
                        92
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                        EXHIBIT A - Form of ICF Asset Base Certificate
 	
                         
 	
                         
 
	
                        EXHIBIT B - Form of ICF Note
 	
                         
 	
                         
 
	
                        EXHIBIT C - Reserved
 	
                         
 	
                         
 
	
                        EXHIBIT D - Transfer Certificate (Rule 144A)/Investment Letter
 	
                         
 	
                         
 
	
                        EXHIBIT E - Transfer Certificate (other than Rule 144A)
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                        APPENDIX A - GLOSSARY OF PRINCIPAL DEFINED TERMS
 	
                         
 	
   
 

 

 

v

 

Third Amended and Restated Indenture, dated as of June 1, 2000, amended and restated as of March 1, 2002, second amended and restated as of September 1, 2002 and third amended and restated as of September 30, 2002 (as amended, supplemented and otherwise modified from time to time as permitted hereby, the “Indenture”), among Interpool Chassis Funding, LLC (f/k/a Interpool Funding 2000, L.L.C.), a Delaware limited liability company, as issuer (and its permitted successors and assigns, “ICF”), Intermodal Chassis Issuance, LLC, a Delaware limited liability company (and its permitted successors and assigns, “ICI”) Interpool, Inc., a
Delaware corporation, as servicer (and its permitted successors and assigns, the “Servicer”), JPMorgan Chase Bank (f/k/a The Chase Manhattan Bank), a New York banking corporation, as the ICF Indenture Trustee (the “ICF Indenture Trustee”) and Wachovia Securities, Inc. (f/k/a First Union Securities, Inc.), a Delaware corporation, as administrative agent (the “Administrative Agent”).

WITNESSETH:

WHEREAS, ICF, the Servicer, the Administrative Agent and the ICF Indenture Trustee entered into an Indenture, dated as of June 1, 2000 (the “Prior Agreement”) which was amended and restated as of March 1, 2002 (the “Restated Agreement”);

WHEREAS, in order to achieve less expensive financing, ICF intends to enter from time to time into Leases with Lessors;

WHEREAS, in order to secure its rental obligations under a Lease, ICF may enter into an Enhancement Agreement with a Lease Enhancer;

WHEREAS, ICF desires to issue its asset-backed ICF Notes (defined below) pursuant to this Indenture and the ICF Notes will be obligations of ICF, secured by, and with recourse limited to, the ICF Collateral (defined below);

WHEREAS, in order to secure its obligations hereunder and under each Lease, each Enhancement Agreement, each Interest Rate Hedge Agreement and each Qualified Currency Hedge, ICF, together with the Servicer, the Administrative Agent and the ICF Indenture Trustee, wishes to amend and restate the Restated Agreement as of September 1, 2002 (the “Second Restatement Date”) and, inter alia, Grant to the ICF Indenture Trustee, for the benefit and security of each Lessor, each Owner Participant, each Lease Enhancer, the Administrative Agent, the ICF Noteholders, each Interest Rate Hedge Counterparty, ICI (as the interest rate swap
counterparty under the ICI Swap) and each Currency Hedge Counterparty, a security interest in all of ICF’s right, title and interest in and to the ICF Collateral (defined below); and

WHEREAS, pursuant to the Omnibus Amendment and Agreement (the “Omnibus Amendment”), dated as of September 30, 2002, the requisite consents have been obtained to amend and restate this Indenture as of such date and pursuant to the Omnibus Amendment and Agreement such persons have agreed, for convenience of reference, to include the agreed upon terms set forth in the Omnibus Amendment in this Indenture.

 

 

NOW, THEREFORE, in consideration of the premises and of the covenants and undertakings herein expressed, the parties hereto agree as follows:

GRANTING CLAUSE

ICF hereby Grants to the ICF Indenture Trustee, for the benefit and security of each Lessor, each Owner Participant, each Lease Enhancer, the Administrative Agent, the ICF Noteholders, each Interest Rate Hedge Counterparty, ICI (as the interest rate swap counterparty under the ICI Swap) and each Currency Hedge Counterparty (to the extent that such Currency Hedge Counterparty, such Interest Rate Hedge Counterparty, Lease Enhancer, ICI (as the interest rate swap counterparty under the ICI Swap) and/or Lessor that has entered into an agreement with ICF in connection with the transactions contemplated by the ICF Relevant Documents), a security interest in all of ICF’s right, title and interest in and to (a) the 2002-A SUBI Certificate, representing all of ICF’s beneficial interest in, to and under (1) the Original Contracts and all Contract Payments, Casualty
Payments, Prepayment Amounts and other amounts now due or hereafter becoming due with respect thereto, (2) the Additional Contracts and all Contract Payments, Casualty Payments, Prepayment Amounts and other amounts now due or hereafter becoming due with respect thereto and all rights and remedies thereunder, (3) all Replacement Contracts and all Contract Payments, Casualty Payments, Prepayment Amounts and other amounts now due or hereafter becoming due with respect thereto, (4) the Equipment and all Casualty Payments, Equipment Insurance Proceeds (other than proceeds of liability insurance), proceeds from the involuntary or voluntary disposition of the Equipment, payments made or due to ICF in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Equipment and any other cash or non-cash receipts from the sale, exchange, collection or other disposition of the Equipment, and other amounts paid or to be paid with
respect to the Equipment allocated to the 2002-A SUBI Certificate, (5) all other Original Assets, Replacement Assets and Additional Assets, (6) all other Transferred Assets, (7) all guaranties, indemnities and other rights securing or supporting the value of any item of Equipment or the related Contract, and (8) all other 2002-A SUBI Assets; (b) any SUBI Certificate subjected to the lien of this Indenture pursuant to a Supplement, representing all of ICF’s beneficial interest in, to and under the types of property referred to in the foregoing clauses (a)(1) through (a)(8), but only to the extent that the beneficial ownership interest in, to and under such property is not already represented by a UTI Certificate or another SUBI Certificate, (c) all moneys from time to time held by ICF or the Servicer pending required deposit in the ICF Holding Account, the ICF Cash Collateral Account, the ICF Collection Account, the ICF Deposit Account, the
Casualty Account and each other ICF Securities Account established in accordance with the terms of this Indenture, (d) all moneys from time to time on deposit in the Master Lockbox Account (to the extent of ICF’s interest and to the extent related to proceeds of collateral described in this granting clause), the ICF Holding Account, the ICF Collection Account, the ICF Cash Collateral Account, the ICF Deposit Account, the Casualty Account and each other ICF Securities Account established pursuant to this Indenture, including, without limitation, all investments and income from the investment of such moneys, (e) all rights of ICF under this Indenture, each Supplement, the Servicing Agreement, the Lockbox Intercreditor Agreement (to the extent of ICF’s interest and to the extent related to income, payments or proceeds of collateral described in this Grant), the related SUBI Supplement for each SUBI Certificate pledged hereunder, the Trust Agreement (to the extent of
ICF’s interest in the ICF Collateral), each Qualified Currency Hedge, each Interest Rate Hedge Agreement, the ICI Swap, and the other ICF Relevant Documents, (f) all of ICF’s interest in, to and under any of the items in clause (a) and (b) of this Grant to the extent

 

 

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that any item thereof is owned by ICF directly, (g) ICF’s leasehold interest in each SUBI subject to a Lease, ICF’s purchase options under each Lease and any and all rights and, powers that ICF may have under each Lease (including, without limitation, the exercise of any option, vote, right, power or the like available under any such Lease), (h) all other accounts, chattel paper, general intangibles, instruments and inventory, each such term as defined in the UCC, of ICF to the extent such items relate to the collateral granted under this granting clause and (i) all income, payments and proceeds of any of the foregoing and all accessions to, substitutions and replacements for, and rents, profits, products, insurance proceeds, confiscation and/or condemnation awards, and any other proceeds from the disposition of any of the foregoing (all of the foregoing collectively,
the “ICF Collateral”).

Such Grant is made in trust to secure (i) the payment of all amounts due, inter alia, on the ICF Notes in accordance with their terms, equally and ratably except as otherwise may be provided in this Indenture, without prejudice, priority, or distinction between any ICF Note of the same class and any other ICF Note of the same class by reason of differences in time of issuance or otherwise, (ii) the payment of all other sums payable under the ICF Notes, the Leases, the Lease Enhancement, the Interest Rate Hedge Agreements, the ICI Swap, the Qualified Currency Hedges, this Indenture and the other ICF Relevant Documents and (iii) compliance with the provisions of this Indenture (the obligations set forth
in clauses (i), (ii) and (iii), collectively the “ICF Secured Obligations”).

The ICF Indenture Trustee acknowledges such Grant, accepts the trusts hereunder in accordance with the provisions hereof, and agrees to perform the duties herein required to the best of its ability and to the end that the interests of each Lessor, each Owner Participant, each Lease Enhancer, the Administrative Agent, the ICF Noteholders, any Interest Rate Hedge Counterparty and any Currency Hedge Counterparty may be adequately and effectively protected as hereinafter provided. Notwithstanding the foregoing, the ICF Indenture Trustee does not assume, and shall have no liability to perform, any of ICF’s or Trust’s obligations under any agreement included in the ICF Collateral and shall have no liability arising from the failure of ICF or any other Person to duly perform any such obligations.

ARTICLE I

 

DEFINITIONS

Section 101. Defined Terms.

Capitalized terms used in this Indenture shall have the meanings assigned to such terms in Appendix A of this Indenture and the definitions of such terms shall be equally applicable to both the singular and plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms.

Section 102. Other Definitional Provisions.

(a) With respect to any SUBI Certificate or the other SUBI Assets pledged hereunder, all terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the related SUBI Supplement. Without limiting the foregoing,

 

 

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references herein to a SUBI Certificate, the related SUBI Assets and other words of like import referring thereto shall have the meanings ascribed to such term in the related SUBI Supplement.

(b) All terms defined in this Indenture shall have the defined meanings when used in any agreement, certificate or other document made or delivered pursuant hereto, including any Supplement and SUBI Supplement, unless otherwise defined therein.

(c) As used in this Indenture and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in this Indenture or in any such certificate or other document, and accounting terms partly defined in this Indenture or in any such certificate or other document, to the extent not defined, shall have the respective meanings given to them under GAAP consistently applied. To the extent that the definitions of accounting terms in this Indenture or in any such certificate or other document are inconsistent with the meanings of such terms under GAAP or regulatory accounting principles, the definitions contained in this Indenture or in any such certificate or other document shall control.

(d) Reserved.

(e) With respect to any Series of ICF Notes, the “related Supplement” shall mean the Supplement pursuant to which such Series of ICF Notes is issued; with respect to any Lease, the “related Lease Enhancer” shall mean the Lease Enhancer for such Lease (as specified therein); and with respect to any SUBI Certificate, the “related SUBI Supplement” shall mean the SUBI Supplement pursuant to which such SUBI Certificate is issued.

(f) All references to the Servicer’s financial statements shall mean the consolidated financial statements of the Servicer and its consolidated subsidiaries.

(g) With respect to any ratio analysis required to be performed as of the most recently completed fiscal quarter, the most recently completed fiscal quarter shall mean the fiscal quarter for which financial statements were required hereunder to have been delivered.

(h) With respect to the calculations of the ratios set forth in this Indenture and any Supplement issued pursuant to the terms hereof, the components of such calculations are to be determined in accordance with GAAP consistently applied, with respect to the Servicer.

Section 103. Computation of Time Periods. 

Unless otherwise stated in this Indenture, including, for the avoidance of doubt, any Supplement issued pursuant to the terms hereof, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each means “to but excluding.”

 

 

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ARTICLE II

 

THE ICF NOTES

Section 201. Authorization and Issuance of ICF Notes. 

(a) There are hereby created by this Indenture ICF’s “Asset-Backed Notes, Series 2002-A” (together with any other Series of ICF Notes, the “ICF Notes”). On the basis of the representations and warranties and subject to the terms and conditions herein set forth, ICF agrees to deliver to ICI, and ICI agrees to purchase, on the Closing Date, its ICF Notes with a maximum aggregate principal amount up to the Maximum Advance Amount, which ICF Notes shall be duly executed by ICF, duly authenticated by the ICF Indenture Trustee and registered in the name of ICI or its nominee. The actual outstanding principal balance of the ICF Notes will be increased on each Advance Date by the applicable amount of each Advance by the ICF Noteholders and decreased from time to time in
accordance with the terms of this Indenture. The ICF Notes will be delivered to ICI against payment of the purchase price therefor. On the Closing Date, ICI shall take delivery of the “Asset-Backed Notes, Series 2002-A” and on the related issuance date any other ICF Notes issued hereunder. The first Payment Date with respect to the ICF Notes shall be November 20, 2002.

(b) The number of Series or Classes of ICF Notes which may be created by this Indenture is not limited; provided, however, that, the issuance of any Class of ICF Notes shall satisfy the Rating Agency Condition, be in accordance with the terms and conditions of this Indenture, be with the prior written consent of the ICI Global Requisite Majority and shall not result in, or with the giving of notice or the passage of time or both would result in, the occurrence of an Amortization Event, ICI Event of Default or ICF Event of Default, as evidenced by an Officer’s Certificate of the Servicer, ICI and ICF delivered to the ICF Indenture Trustee representing the same. The aggregate principal amount of ICF Notes of each Series which may be issued, authenticated and delivered under this Indenture is not
limited except as set forth in this Indenture and as restricted by the provisions of this Indenture.

(c) ICF Notes issuable under this Indenture shall be issued in such Class or Classes, as may from time to time be created by a Supplement.

(d) Subject to the terms and conditions of this Indenture and the other ICI Relevant Documents, ICI confirms its commitment, and agrees as long as the ICI Indenture is not satisfied and discharged, to fund each request for an Advance by ICF so long as the sum of all outstanding Advances does not exceed the Maximum Advance Amount. As long as the ICI Indenture is not satisfied and discharged, ICF may from time to time request additional Advances from ICI, and upon such request, ICI shall, subject to the applicable conditions precedent set forth in this Indenture and the other ICI Relevant Documents, make such additional Advances. Upon satisfaction of and compliance with the requirements and conditions to closing set forth in the related Supplement, ICF Notes of the Series to be executed and delivered on a particular Series Issuance Date pursuant to such related Supplement, may be
executed by ICF and delivered to the ICF Indenture Trustee for authentication following the execution and delivery of the related Supplement creating such Series or from time to time thereafter, and the ICF Indenture Trustee shall authenticate and deliver ICF Notes upon an ICF request set forth in

 

 

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an Officer’s Certificate of ICF duly signed by one of its Authorized Officers, without further action on the part of ICF.

(e) From time to time, a Seller may give notice that it intends to contribute and  assign additional Equipment and the Related Assets to a Certificate for allocation to a Certificate pledged hereunder (or to be pledged hereunder). ICI agrees that, as long as the ICI Indenture has not been satisfied and discharged and subject to the terms and conditions set forth herein and the other ICI Relevant Documents, and upon satisfaction of such Seller’s obligations as set forth in the related Transfer Agreement, it shall make Advances to finance the purchase of such Equipment and the Related Assets by ICF in accordance with the terms of the ICI Relevant Documents and as may be further described herein.

(f) In no event shall ICI be required to make an Advance hereunder if:  (i)  an Amortization Event, ICI Event of Default, ICF Event of Default, Servicer Default, Potential Amortization Event, Potential ICI Event of Default, Potential ICF Event of Default or Potential Servicer Default has occurred; (ii) the outstanding principal balance of all ICF Notes as of such Advance Date, plus the proposed amount of any requested Advance for such Advance Date, shall exceed the Maximum Advance Amount; or (iii) the representations and warranties contained in this Indenture or any other ICF Relevant Document, after giving effect to the transfer of the Equipment and the Related Assets proposed to be transferred on the related Transfer Date, are not true as of such Advance Date.

(g) On each Advance Date, ICI shall pay the purchase price for the related ICF Note and such purchase price shall be equal to the related Advance. Payment of the purchase price shall be made by ICI on each Advance Date by wire transfer of immediately available funds to ICF against delivery to ICF of the related ICF Note on such Advance Date.

(h) ICI’s obligation to purchase the ICF Notes on the Closing Date shall be subject to the accuracy in all material respects of the respective representations and warranties of ICF herein as of the Closing Date, to the performance in all material respects by ICF of its obligations hereunder and to the following additional conditions:

(A) All of the respective representations and warranties of ICF, the Trust, the Sellers, ICI and the Servicer under the ICI Relevant Documents shall be true and correct in all material respects as of the Closing Date, or the date when made (as the case may be) and no event shall have occurred which, with notice or the passage of time, would constitute an Amortization Event, ICI Event of Default, ICF Event of Default, Servicer Default, Potential Amortization Event, Potential ICI Event of Default, Potential ICF Event of Default or Potential Servicer Default; and the ICI Relevant Documents (including, without limitation, the related Supplement to the ICI Indenture) shall have been duly authorized, executed and delivered and shall be in full force and effect;

(B) All conditions to closing required to be fulfilled pursuant to the ICI Relevant Documents, shall have been fulfilled or waived, and each Person entitled to receive originals (constructively or actually) or copies of 

 

 

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all documents required to be so delivered shall have received such documents; and

(C) Any taxes, fees and other governmental charges which are due and payable prior to the Closing Date by a Seller, the Trust, ICF, ICI or the Servicer in connection with the execution, delivery and performance of the ICI Relevant Documents shall have been paid at or prior to the Closing Date.

(i) ICI’s obligation to fund additional Advances shall be subject to the accuracy in all material respects of the respective representations and warranties of ICF herein and each other document delivered in connection with such Advance as of the applicable Advance Date, to the performance in all material respects by ICF of its obligations hereunder and the other ICF Relevant Documents and to the following additional conditions:

(A) All of the respective representations and warranties of ICF, the Trust, the Sellers, ICI and the Servicer under the ICI Relevant Documents shall be true and correct in all material respects as of the related Advance Date and no event shall have occurred which, with notice or the passage of time, would constitute an Amortization Event, ICI Event of Default, ICF Event of Default, Servicer Default, Potential Amortization Event, Potential ICI Event of Default, Potential ICF Event of Default or Potential Servicer Default; the ICI Relevant Documents to which ICF is a party shall have been duly authorized, executed and delivered and shall be in full force and effect and ICF shall deliver an Officer’s Certificate to ICI, the ICF Indenture Trustee and the ICI Indenture Trustee to such effect;

(B) On or prior to the related Advance Date, all conditions to Advances required to be fulfilled pursuant to the ICI Relevant Documents shall have been fulfilled or waived, and each Person entitled to receive originals (constructively or actually) or copies of all documents required to be so delivered shall have received such documents;

(C) On or prior to the related Advance Date, ICF shall deliver an Officer’s Certificate to ICI, the ICF Indenture Trustee and the ICI Indenture Trustee certifying that (A) no event shall have occurred which, with notice or the passage of time, would constitute an Amortization Event, ICI Event of Default, ICF Event of Default, Servicer Default, Potential Amortization Event, Potential ICI Event of Default, Potential ICF Event of Default or Potential Servicer Default; (B) the aggregate outstanding amount of all Advances made prior to such Advance Date, plus the proposed Advance Amount for such Advance Date does not exceed the Maximum Advance Amount; and (C) the representations and warranties contained in Section 3.01(a) of the related Transfer Agreement, after giving effect to the Equipment and Related Assets proposed to be transferred on
the related Transfer Date, are true as of such Advance Date;

 

 

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(D) Any taxes, fees and other governmental charges which are due and payable prior to the Closing Date or the related Advance Date (as the case may be) by a Seller, the Trust, ICF, ICI or the Servicer in connection with the execution, delivery and performance of the ICI Relevant Documents shall have been paid at or prior to the Closing Date; and

(E) The ICI Indenture shall not have been satisfied and discharged.

Section 202. Form of ICF Notes.

(a) The ICF Notes shall be issued, authenticated and delivered in fully registered form and shall be substantially in the form of Exhibit B to this Indenture, with such modifications and additions thereto as are permitted or required by this Indenture and the related Supplement. The ICF Notes shall be issued in minimum denominations of $10,000,000 and in integral multiples of $1,000 in excess thereof; provided that one ICF Note of each Class may be issued in a nonstandard denomination. The ICF Notes shall be issued without coupons.

(b) No transfer of any ICF Note or interest therein shall be made unless that transfer is made pursuant to an effective registration statement under the Securities Act, and effective registration or qualification under applicable State securities or “Blue Sky” laws, or is made in a transaction that does not require such registration or qualification. If a transfer of any ICF Note is to be made without registration under the Securities Act (other than in connection with the initial issuance thereof), then the ICF Note Registrar shall refuse to register such transfer unless it receives (and upon receipt, may conclusively rely upon) either: (i) a certificate from such ICF Noteholder substantially in the form attached as Exhibit D hereto, Exhibit E hereto or such other certification reasonably acceptable to the ICF Indenture Trustee and a certificate from
such ICF Noteholder’s prospective transferee substantially in the form attached as Exhibit D hereto, Exhibit E hereto or such other certification reasonably acceptable to the ICF Indenture Trustee; or (ii) an Opinion of Counsel satisfactory to the ICF Indenture Trustee to the effect that such transfer may be made without registration under the Securities Act (which Opinion of Counsel shall not be an expense of ICF (or any Affiliate thereof), the Servicer, the ICF Indenture Trustee or the ICF Note Registrar), together with the written certification(s) as to the facts surrounding such transfer from the ICF Noteholder desiring to effect such transfer and/or such ICF Noteholder’s prospective transferee on which such Opinion of Counsel is based. None of ICF, the ICF Indenture Trustee or the ICF Note Registrar is obligated to register or qualify any ICF Notes under the Securities Act or any other securities law or to take any action not otherwise required under this
Indenture to permit the transfer of any ICF Note or interest therein without registration or qualification. Any ICF Noteholder desiring to effect such a transfer shall, and does hereby agree to, indemnify ICF, the ICF Indenture Trustee and the ICF Note Registrar against any liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state laws. Notwithstanding the foregoing, the parties hereto, each Lessor, each Owner Participant, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each ICF Holder and each Lease Enhancer acknowledge and agree that the pledge of the ICF Notes pursuant to the ICI Relevant Documents is not subject to any of the foregoing requirements.

 

 

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Section 203. Execution; Limited Recourse Obligation. 

(a) The ICF Notes shall be executed on behalf of ICF by an Authorized Officer of ICF. The ICF Notes shall be dated the date of their authentication by the ICF Indenture Trustee.

(b) In case any Authorized Officer of ICF whose signature shall appear on the ICF Notes shall cease to be an Authorized Officer of ICF before the authentication by the ICF Indenture Trustee and delivery of such ICF Notes, such signature shall nevertheless be valid and sufficient for all purposes.

(c) At the written direction of ICF, the ICF Indenture Trustee shall authenticate and deliver each ICF Note. It shall not be necessary that the same authorized signatory of the ICF Indenture Trustee execute the certificate of authentication on each of the ICF Notes.

(d) The ICF Notes and all other ICF Secured Obligations shall be equally and ratably secured by the Grant hereunder. The ICF Notes shall never constitute obligations of the ICF Indenture Trustee, any Affiliate of ICF (except to the extent of any indemnification provided under a Transfer Agreement, the Servicing Agreement or any other ICF Relevant Document) or of any Affiliate of Interpool (other than ICF) or any officers, directors, employees or agents of any thereof, and no recourse may be had under or upon any obligation, covenant or agreement under this Indenture, any Supplement or of any ICF Notes, or for any claim based thereon or otherwise in respect thereof, against any incorporator or against any past, present, or future owner, partner of an owner or any officer, employee or director thereof or of any successor entity, or any other Person, either directly or through
ICF, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed that this Indenture and the obligations issued or secured hereunder are solely limited recourse obligations of ICF (i.e., recourse shall be limited to the ICF Collateral), and that no such personal liability whatsoever shall attach to, or is or shall be incurred by, any other Person under or by reason of this Indenture, any Supplement or any ICF Notes or implied therefrom, or for any claim based thereon or in respect thereof, all such liability and any and all such claims being hereby expressly waived and released as a condition of, and as consideration for, the execution of this Indenture and the issuance of such ICF Notes. Except to the extent of any indemnification provided under a Transfer Agreement, the Servicing Agreement, a Supplement or any other ICF Relevant Document, no Person other than ICF shall be liable for any
obligation of ICF under this Indenture or any ICF Note or any losses incurred by any ICF Noteholder.

Section 204. Certificate of Authentication.

No ICF Notes shall be secured hereby or entitled to the benefit hereof or shall be or become valid or obligatory for any purpose unless there shall be endorsed thereon a certificate of authentication by the ICF Indenture Trustee, substantially in the form set forth in the form of ICF Note(s) attached hereto, executed by the ICF Indenture Trustee and such certificate on any ICF Note issued by ICF shall be conclusive evidence and the only competent evidence that it has been duly authenticated and delivered hereunder.

 

 

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Section 205. Registration; Registration of Transfer and Exchange of ICF Notes. 

(a) The ICF Indenture Trustee shall keep at its Corporate Trust Office books for the registration and transfer of the ICF Notes (together with any successor thereto in accordance with the terms and conditions hereof, the “ICF Note Register”). ICF hereby appoints the ICF Indenture Trustee as its registrar and transfer agent to keep such books and make such registrations and transfers as hereinafter set forth in this Section 205. ICF also authorizes and directs the ICF Indenture Trustee to provide a copy of the registration record to an ICF Noteholder upon its written request therefor. The names and addresses of the ICF Holders of all ICF Notes and all transfers of, and the names and addresses of the transferees of, all ICF Notes will be registered in such ICF Note Register. The Person
in whose name any ICF Note is registered shall be deemed and treated as the owner and ICF Holder thereof for all purposes of this Indenture and none of the ICF Indenture Trustee, the Administrative Agent, the Lease Enhancers, the ICF Noteholders, the Currency Hedge Counterparties, the Interest Rate Hedge Counterparties or ICF shall be affected by any notice or knowledge to the contrary. If a Person other than the ICF Indenture Trustee is appointed by ICF to maintain the ICF Note Register, ICF will give the ICF Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, each Enhancer, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty and each ICF Noteholder prompt written notice of such appointment and of the location, and any change in the location, of the successor ICF Note Registrar, and the ICF Indenture Trustee, the Administrative Agent, each Enhancer, the ICI Indenture Trustee and each ICF Noteholder affected thereby shall have the right to
inspect the ICF Note Register at all reasonable times and to obtain copies thereof, and the ICF Indenture Trustee shall have the right to rely upon a certificate executed on behalf of the successor ICF Note Registrar by an officer thereof as to the names and addresses of the ICF Noteholders and the principal amounts and number of such ICF Notes.

(b) Payments of principal, premium, if any, and interest on any ICF Note shall be payable in accordance with the provisions of Article III hereof on each Payment Date only to the registered ICF Holder (or its designee appointed in writing by such ICF Holder and delivered to the ICF Indenture Trustee thereof no later than the fifth (5th) Business Day immediately preceding such Payment Date) on the Record Date immediately preceding such Payment Date. The principal of, premium, if any, and interest on each ICF Note shall be payable at the Corporate Trust Office of the Paying Agent in immediately available funds in such coin or currency of the United States of America as at the time for payment shall be legal tender for the payment of public and private debts. All interest payable on the ICF Notes and fees payable in respect thereof shall be computed on the basis,
for actual days elapsed, of a year of 360 days. Notwithstanding the foregoing or any provision in any ICF Note to the contrary, if so requested by the registered ICF Holder of any ICF Note by written notice to the ICF Indenture Trustee, all amounts payable to such registered ICF Holder may be paid either (i) by crediting the amount to be distributed to such registered ICF Holder to an account maintained by such registered ICF Holder with the ICF Indenture Trustee or by transferring such amount by wire to such other bank in the United States, including a Federal Reserve Bank, as shall have been specified in such notice, for credit to the account of such registered ICF Holder maintained at such bank, or (ii) by mailing a check to such address as such registered ICF Holder shall have specified in such notice, in either case without any presentment or surrender of such ICF Note to the ICF Indenture Trustee at the Corporate Trust Office of the ICF Indenture Trustee;
provided that as 

 

 

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long as the lien of the ICI Indenture has not been satisfied and discharged, no ICF Holder shall provide any such notice that is contrary to the terms and conditions of this Indenture.

(c) Any ICF Note is transferable only upon the surrender to the ICF Indenture Trustee of such ICF Note together with (i) a written instrument of transfer (duly executed by the existing ICF Holder or its duly authorized attorney) in form reasonably satisfactory to the ICF Indenture Trustee and (ii) the documents required pursuant to Section 205(f) hereof. Upon satisfaction of the requirements set forth in the preceding sentence, each ICF Noteholder shall have the right, upon surrender of such ICF Note to the ICF Indenture Trustee at its Corporate Trust Office, to require a new ICF Note or ICF Notes of the same class to be issued to it or to a Prospective Owner, in a minimum denomination of the lesser of (x) $10,000,000 or (y) the entire aggregate principal amount of the ICF Note being surrendered, in substitution of the ICF Note being surrendered. All
ICF Notes issued upon any registration of transfer or exchange of the ICF Notes shall be the legal, valid and binding obligations of ICF, evidencing the same debt, and entitled to the same benefits under this Indenture and the related Supplement (if any) as the ICF Notes surrendered upon such registration of transfer or exchange.

(d) Any service charge, fees or expenses made or incurred by the ICF Indenture Trustee for any such registration, discharge from registration, transfer or exchange referred to in this Section 205 shall be paid by the Servicer. The ICF Indenture Trustee or ICF may require payment by the Servicer of a sum sufficient to cover any tax expense or other governmental charge payable in connection therewith.

(e) Each prospective initial ICF Noteholder acquiring ICF Notes, each prospective transferee acquiring ICF Notes, and each prospective owner (or transferee thereof) of a beneficial interest in ICF Notes (each a “Prospective Owner”) will be deemed to have represented by such purchase to ICF, the ICF Indenture Trustee, the Servicer and each successor Servicer that one of the following statements is true and correct: (i) it is not an “employee benefit plan” within the meaning of Section 3(3) of ERISA or a “plan” within the meaning of Section 4975(e)(1) of the Code (“Plan”) and it is not directly or indirectly acquiring the ICF Note on behalf of, as investment manager of,
as named fiduciary of, as trustee of, or with assets of a Plan or (ii) the proposed acquisition or transfer will not give rise to a transaction described in Section 406(a) of ERISA or Section 4975(e)(1) of the Code for which a statutory or administrative exception is unavailable.

(f) If any transfer of an ICF Note or an interest therein is to be made in reliance upon Rule 144A under the Securities Act, the ICF Indenture Trustee shall require the Prospective Owner to execute a certificate, substantially in the form of Exhibit D hereto. If such a transfer is to be made in reliance upon an exemption from the Securities Act other than Rule 144A under the Securities Act, the ICF Indenture Trustee shall require the Prospective Owner to execute a certificate substantially in the form of Exhibit E hereto. ICF shall promptly furnish to any ICF Holder, or any Prospective Owners designated by an ICF Holder, the information required to be delivered by any ICF Holder and Prospective Owner in connection with a resale of the ICF Notes to permit compliance with Rule 144A in connection with such resale. No ICF Note may be subdivided (including
any assignment or transfer of a participation or beneficial interest therein) for resale or other transfer into a unit smaller than a unit the initial offering price of which would have been $10,000,000.

 

 

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Section 206. Mutilated, Destroyed, Lost and Stolen ICF Notes.

(a) If (i) any mutilated ICF Note is surrendered to the ICF Indenture Trustee, or the ICF Indenture Trustee receives evidence to its satisfaction of the destruction, loss or theft of any ICF Note, and (ii) there is delivered to the ICF Indenture Trustee such security or indemnity as it and ICF may require to hold ICF, the Servicer and the ICF Indenture Trustee harmless (the unsecured indemnity of a Rated Institutional Noteholder being deemed satisfactory for such purpose), then ICF shall execute and the ICF Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen ICF Note, a replacement ICF Note of the same Series and Class and principal amount, and with like maturity and other terms as the mutilated, destroyed, lost or stolen ICF Note; provided, however,
that if any such destroyed, lost or stolen ICF Note, but not a mutilated ICF Note, shall have become, or within seven days shall be, due and payable, or shall have been called for redemption, ICF may pay such destroyed, lost or stolen ICF Note when so due or payable instead of issuing a replacement ICF Note.

(b) If, after the delivery of such replacement ICF Note, or payment of a destroyed, lost or stolen ICF Note pursuant to the proviso to the preceding paragraph, a bona fide purchaser of the original ICF Note in lieu of which such replacement ICF Note was issued presents for payment such original ICF Note, ICF and the ICF Indenture Trustee shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by ICF or the ICF Indenture Trustee in connection therewith.

(c) The ICF Indenture Trustee may, for each new ICF Note authenticated and delivered to an ICF Noteholder under the provisions of this Section 206, require the advance payment by ICF of the expenses, including counsel fees, service charges and any tax or governmental charge which may be incurred by the ICF Indenture Trustee or ICF in connection with the issuance, authentication and delivery of such new ICF Note. Any ICF Note issued under the provisions of this Section 206 in lieu of any ICF Note alleged to be destroyed, mutilated, lost or stolen, shall be equally and proportionately entitled to the benefits of this Indenture with all other ICF Notes issued hereunder. The provisions of this Section 206 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or
stolen ICF Notes.

Section 207. Delivery, Retention and Cancellation of ICF Notes.

Each ICF Noteholder is required, and hereby agrees, to return its ICF Note to the ICF Indenture Trustee, promptly after the time of which the final payment on its ICF Note has been made. Any such ICF Note as to which the ICF Indenture Trustee has made or holds the final payment thereon shall be deemed canceled and shall no longer be Outstanding for any purpose of this Indenture, whether or not such ICF Note is ever returned to the ICF Indenture Trustee. ICF Notes delivered upon final payment to the ICF Indenture Trustee and any ICF Notes transferred or exchanged for other ICF Notes shall be canceled and destroyed by the ICF Indenture Trustee in accordance with its customary procedures and the ICF Indenture Trustee shall promptly deliver to ICF such canceled ICF Notes upon reasonable prior written request. If the ICF Indenture Trustee, for its own account, shall acquire any of
the ICF Notes, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such ICF Notes. If ICF shall acquire any of the ICF Notes, such acquisition shall operate as a 

 

 

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redemption or satisfaction of the indebtedness represented by such ICF Notes. ICF Notes which have been canceled by the ICF Indenture Trustee shall be deemed paid and discharged for all purposes under this Indenture.

Section 208. Payments of Principal and Interest on the ICF Notes.

(a) Each Advance under the ICF Notes shall bear interest on the outstanding principal amount thereof from the date when made, continued or converted until paid in full. Interest shall be payable on each Payment Date from amounts on deposit in the ICF Collection Account in the amounts and in the priority set forth in Section 302 of this Indenture. Interest and fees on the outstanding ICF Notes shall accrue during each Interest Accrual Period. To the extent that the amount of interest which is due and payable on any Payment Date is not paid in full on such date, such shortfall, together with interest thereon at the interest rate set forth in the immediately preceding sentence for the next accrual period, shall be due and payable on the immediately succeeding Payment Date. ICF Note Senior Interest and Fees and ICF Note Junior Interest and Fees shall accrue during each
Interest Accrual Period and shall be payable as long as this ICF Indenture remains in effect, both as interest on the outstanding Advances and in consideration of ICI’s agreement to make future Advances. Any ICF Note Senior Interest and Fees which is not paid when due shall increase the outstanding principal balance of the ICF Notes and any ICF Note Junior Interest and Fees which is not paid when due shall also increase the outstanding principal balance of the ICF Notes, and, in each case, shall increase the ICF Outstanding Obligations.

(b) Principal on the ICF Notes shall be payable on each Payment Date at the times and in the amounts set forth in Section 302 of this Indenture. ICF Notes Senior Principal Amounts and ICF Notes Junior Principal Amounts shall be paid from ICF Available Funds on each Payment Date subject to Section 302 and, after the occurrence of an ICF Event of Default, from all remaining ICF Available Funds on deposit in the ICF Collection Account subject to Section 302. The unpaid principal amount of the ICF Notes shall be due and payable in full on the ICF Legal Maturity Date, together with all unpaid interest, fees, expenses, costs and other amounts payable by ICF pursuant to the terms of this Indenture.

(c) If ICF shall default in the payment of (i) the unpaid principal balance of any ICF Note on the ICF Legal Maturity Date, or (ii) any ICF Notes Senior Principal or any ICF Notes Junior Principal Amount when due, or (iii) any ICF Note Senior Interest and Fees or any ICF Note Junior Interest and Fees when due, or (iv) any other amount due to the ICF Noteholders, any Lease Enhancer or the Administrative Agent becoming due under this Indenture, ICF shall, from time to time, pay interest on such unpaid amounts, to the extent permitted by applicable law, to, but not including, the date of actual payment (after as well as before judgment), at a rate per annum equal to the ICF Overdue Rate, for the period during which such principal, interest or other amount shall be unpaid from the due date of such payment to the date of actual payment thereof. Any such default
interest shall be payable at the times and subject to the priorities set forth in Section 302 of this Indenture.

 

 

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ARTICLE III

ACCOUNTS; DISTRIBUTIONS; INVESTMENT;

STATEMENTS TO ICF NOTEHOLDERS; INTEREST; TAXES

Section 301. ICF Holding Account and ICF Collection Account.

(a) On or before the Closing Date, ICF shall establish and maintain with the ICF Indenture Trustee an account into which all ICF Collections and other amounts required to be paid pursuant to this Indenture shall be deposited (the “ICF Holding Account”) prior to the occurrence of an Amortization Event, an ICF Event of Default, an ICI Event of Default, a Lessor Event of Default, a Servicer Default, an incipient Amortization Event, an incipient ICF Event of Default, an incipient ICI Event of Default, an incipient Lessor Event of Default, or an incipient Servicer Default. The ICF Holding Account shall be an Eligible Account and shall be established in the name of the ICF Indenture Trustee at its Corporate Trust Office for the benefit of each beneficiary of the security interest in favor of the
ICF Indenture Trustee, and in such capacity the ICF Indenture Trustee shall constitute a securities intermediary. By the third (3rd) Business Day after deposit into the Master Lockbox Account, ICF shall cause the Servicer or the ICF Indenture Trustee (as the case may be) to deposit, to the extent it has received any ICF Collections pursuant to the Lockbox Agreement and the Lockbox Intercreditor Agreement, or cause to be deposited, all ICF Collections into the ICF Holding Account in accordance with Section 3.06 of the Servicing Agreement; provided, however, that indemnification payments, made by or on behalf of a User and received by ICF or the Servicer, shall not be deposited in the ICF Collection Account but shall be paid directly to the Person entitled to such indemnification. After the occurrence of an Amortization Event, an ICF Event of Default, an ICI Event of Default, a Lessor Event of
Default, a Servicer Default, an incipient Amortization Event, an incipient ICF Event of Default, an incipient ICI Event of Default, an incipient Lessor Event of Default, or an incipient Servicer Default, all amounts on deposit in the ICF Holding Account shall be deposited into the ICF Collection Account by the ICF Indenture Trustee, all future ICF Collections shall be deposited directly to the ICF Collection Account and only the ICF Indenture Trustee, and neither ICF nor the Servicer, shall be permitted to make withdrawals from the ICF Collection Account in accordance with the terms of this Indenture; provided that prior to the occurrence of any such event, the Servicer may withdraw all amounts on deposit in the ICF Holding Account for its full use and enjoyment as long as it deposits by the fifth (5th) Business Day of
the month immediately following the preceding Collection Period all ICF Collections to the ICF Collection Account for distribution pursuant to this Indenture or each Lessor Indenture. ICF shall not establish any additional accounts for the deposit of ICF Collections without the prior written consent of the ICF Global Requisite Majority.

(b) On or before the Closing Date, ICF shall establish and maintain with the ICF Indenture Trustee an account into which all ICF Collections and other amounts required to be paid pursuant to this Indenture shall be ultimately deposited (the “ICF Collection Account”). The ICF Collection Account shall be an Eligible Account and shall be established in the name of the ICF Indenture Trustee at its Corporate Trust Office for the benefit of each beneficiary of the security interest in favor of the ICF Indenture Trustee, and in such capacity the ICF Indenture Trustee shall constitute a securities intermediary. ICF shall cause the Servicer or the ICF Indenture Trustee (as the case may be) to deposit, to the extent it has received any ICF Collections pursuant to the Lockbox Agreement and the Lockbox
Intercreditor Agreement, or cause to be deposited, all ICF Collections into the ICF Collection Account in accordance with Section 3.06 of the Servicing Agreement; provided, however, that indemnification payments, 

 

 

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made by or on behalf of a User and received by ICF or the Servicer, shall not be deposited in the ICF Collection Account but shall be paid directly to the Person entitled to such indemnification.

(c) On or before the Closing Date, ICF shall establish and maintain with the ICF Indenture Trustee an account into which the amount necessary to make an item of Equipment that is not roadworthy and continues to not be roadworthy for ninety (90) or more days may be deposited from time to time (the “Casualty Account”). The Casualty Account shall be an Eligible Account and shall be established in the name of the ICF Indenture Trustee at its Corporate Trust Office for the benefit of each beneficiary of the security interest in favor of the ICF Indenture Trustee, and in such capacity the ICF Indenture Trustee shall constitute a securities intermediary. The Servicer may deposit into the Casualty Account the amount necessary to make any item of Equipment roadworthy if such item of Equipment
would otherwise suffer a Casualty Loss because it has not been roadworthy for ninety (90) days or more. Amounts on deposit in the Casualty Account may only be applied toward the expense of making any such item of Equipment roadworthy.

Section 302. Distributions from ICF Collection Account.

(a) Distributions of principal, premium, if any, and interest on any Class of ICF Notes shall be made to the ICF Noteholders of each Class as set forth in this Section 302.

(b) On each Payment Date, the ICF Indenture Trustee shall, based solely on the information contained in the Servicer Report delivered to it by the Servicer, pay the amounts in the order of priority set forth below from ICF Available Funds for the related Collection Period; provided, however, that any ICF Available Funds which constitute amounts withdrawn from the ICF Deposit Account shall be used solely to pay the obligations specified in Section 309 in accordance with the terms and conditions thereof and ICF Available Funds which constitute amounts withdrawn from the ICF Cash Collateral Account shall be used solely to pay the obligations specified in the definition of “ICF Permitted Payment Date Withdrawals” in accordance with the provisions of Section 307(b); provided, further, however, that upon the failure of the Servicer to deliver a Servicer Report, the ICF Indenture Trustee shall notify the Administrative Agent, each Lessor and each Enhancer of such failure and shall distribute (to the extent it has received notice from the Administrative Agent (and the Administrative Agent hereby agrees to give such notice to the extent the Administrative Agent has received notice from each Person entitled to payment of the following amounts) of the premium, ICF Note Senior Interest and Fees, Basic Rent and Senior Stipulated Loss Amount payable on such Payment Date, if any) from all ICF Available Funds the premium (as set forth in the related Enhancement Agreement) to each Lease Enhancer directly, the ICF Note Senior Interest to the ICI Collection Account, Basic Rent to each Lessor and/or Lessor Collection Account (as the case may be), Senior Equity Stipulated Loss Amounts to each Lessor
and/or Lessor Collection Account (as the case may be) and shall hold the balance until delivery of such Servicer Report. For the avoidance of doubt, to the extent that funds on deposit in both the ICF Cash Collateral Account and the ICF Deposit Account are available to pay a shortfall in ICF Available Funds, amounts on deposit in the ICF Deposit Account shall be withdrawn and applied prior to the withdrawal of any amounts on deposit in the ICF Cash Collateral Account.

(I) If an ICF Event of Default shall not have occurred and then be continuing with respect to any ICF Notes and any ICF Notes shall then be Outstanding, then on such Payment 

 

 

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Date the ICF Indenture Trustee will make the following payments from ICF Available Funds to the following Persons in the following order of priority:

(1) To the extent not already paid by the Servicer (in consideration of the Servicing Fee) after demand therefor by the Person entitled to payment of the same, pari passu and pro rata, (A) to, pari passu and pro rata (i) the related Lessor Collection Account, (w) all Owner Trustee Fees (on behalf of the related Lessor) and Lessor Indenture Trustee Fees then due and payable,
(x) any unpaid Owner Trustee Fees (on behalf of the related Lessor) and Lessor Indenture Trustee Fees from all prior Payment Dates, (y) any indemnified amounts then due and payable to each Owner Trustee and each Lessor Indenture Trustee and (z) all other amounts then due and payable to each Owner Trustee and each Lessor Indenture Trustee, (ii) to the ICF Indenture Trustee, (w) any the ICF Indenture Trustee Fees then due and payable, (x) any unpaid the ICF Indenture Trustee Fees from all prior Payment Dates, (y) any indemnified amounts then due and payable to the ICF Indenture Trustee and (z) all other amounts then due and payable to the ICF Indenture Trustee and (iii) the ICI Collection Account, (w) all Managing Member Fees and ICI Indenture Trustee Fees then due and payable, (x) any unpaid Managing Member Fees and ICI Indenture Trustee Fees from all prior Payment Dates, (y) any indemnified amounts then due and payable to the Managing
Member and the ICI Indenture Trustee and (z) all other amounts then due and payable to the Managing Member and the ICI Indenture Trustee and (B) if the Servicer is no longer Interpool, any and all fees and expenses incurred by the ICF Indenture Trustee (for its own account and on behalf of each beneficiary of the security interest in favor of the ICF Indenture Trustee) in connection with the selection of, or transition to, a successor Servicer; provided that amounts payable under Section 302(b)(I)(1) and Section 302(b)(II)(1) of this Indenture and Section 302(b)(I)(1) and Section 302(b)(II)(1) of the ICI Indenture shall not exceed $225,000 (or such higher amount as has satisfied the Rating Agency Condition and has been consented to in writing by the ICF Global Requisite Majority) annually;

(2) To, pari passu and pro rata (A) the Administrative Agent, an amount equal to the sum of (i) the Administrative Agent Fee then due and payable and (ii) any accrued and unpaid Administrative Agent Fee from all prior Payment Dates and (B) each Lease Enhancer for which a Lease Enhancer Default has not occurred and is continuing under the related Enhancement Agreement, pari passu and pro rata, an amount equal to the premium then due and payable to each Lease Enhancer in consideration for such Lease Enhancer’s issuance of its Enhancement Agreement (including any accrued and unpaid premium from prior Payment Dates) and (C) up to an aggregate amount of $300,000 annually, pari passu and pro rata, any and all other amounts payable to each Lease Enhancer, under the related Enhancement Agreement (as long as no default by the related Lease Enhancer has occurred and is continuing under the related Enhancement Agreement), the Administrative Agent and each ICF Control Party (other than a Lease Enhancer);

(3) To the Servicer, any Direct Operating Expenses not already reimbursed to the Servicer;

(4) To the Servicer, an amount equal to the sum of (i) the Servicing Fee then due and payable and (ii) any Servicing Fee Arrearage, provided that if the Servicer is Interpool or an Affiliate thereof and a Servicer Default has occurred and is continuing or there is an ICI Asset Base Deficiency, then the Servicing Fee and any Servicing Fee Arrearage due and payable under this clause (4) shall instead be paid pursuant to Section 302(b)(I)(18);

 

 

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(5) To, pari passu and pro rata, (i) the relevant Lessor Collection Account to the extent required under the related Lessor Indenture and otherwise directly to each Lessor, pro rata, the Basic Rent due and payable under each Lease (provided that if there is a shortfall in ICF Available Funds for payment of all Basic
Rent due and payable under this clause (5), Basic Rent then due and payable for each Lease shall be paid in chronological order based on the closing dates of the respective Leases and pari passu and pro rata with respect to Leases that closed on the same closing date), (ii) each Currency Hedge Counterparty, pro rata, the amount of regularly scheduled payments for any current or prior periods then due and payable, and
any interest accrued thereon (excluding early termination amounts, taxes, indemnities and other similar amounts), pursuant to the terms of any Qualified Currency Hedge then in effect, and (iii) each Interest Rate Hedge Counterparty and to ICI (after taking into account any payments to be received from ICF, if any, on the ICI Swap), pari passu and pro rata, any and all regularly scheduled payments for any current or prior Payment Dates (excluding early termination amounts, taxes, indemnities and other similar amounts) then due and payable and any interest accrued thereon, in each case pursuant to the terms of any Interest Rate Hedge Agreement then in effect and, in the case of ICI, the ICI Swap;

(6) To, pari passu, (A) the relevant Lessor Collection Account to the extent required under the related Lessor Indenture and otherwise directly to each Lessor, pro rata, Supplemental Rent due and payable to such Lessor under a Lease (i) for the Senior Stipulated Loss Amount of any item of Equipment that has suffered a Casualty Loss and has not been replaced pursuant to such Lease and (ii) as liquidated damages (expressly excluding any early termination amounts, default interest, taxes, increased costs and other similar amounts) upon the
occurrence of an event of default by ICF under such Lease and the exercise of remedies thereunder, including any payment of Senior Stipulated Loss Amounts in connection therewith, (B) each Interest Rate Hedge Counterparty, pro rata, to the extent not already paid under this Section 302(b), the amount of any early termination or other unpaid amounts (including any interest accrued thereon, but excluding taxes, indemnities and similar amounts) then due and payable as a result of any payment that (after giving effect to such payment and all other payments of principal to be made on the Floating Rate ICI Notes on such Payment Date) causes the aggregate principal outstanding under the Floating Rate ICI Notes to be less than the aggregate outstanding notional amount for the current Calculation Period (as defined in the
Interest Rate Hedge Agreement) under all Interest Rate Hedge Agreements, and (C) each Currency Hedge Counterparty, pro rata, to the extent not already paid under this Section 302(b), the amount of any Senior Currency Hedge Payments and any interest accrued thereon then due and payable; provided that if ICF Available Funds are insufficient on any Payment Date to pay all amounts due under the above clauses (A), (B) and (C), then (i) the amount payable under clause (B) above shall be limited to the early termination and other unpaid amounts associated with the prepayments caused by such payment of Senior Stipulated Loss Amounts and (ii) the amount payable under clause (A) above shall be reduced such that the
amount payable under clause (A) above together with the amounts payable under clauses (B) and (C) above is equal to the total ICF Available Funds available to be paid under this clause (6) on such Payment Date and (iii) any further ICF Available Funds remaining after the total amount of payments described in clause (ii) above shall be paid solely under clauses (B) and (C) above;

 

 

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(7) To the ICI Collection Account, an amount equal to the difference, if positive, between (i) the ICF Note Senior Interest and Fees and (ii) the aggregate amount of all principal payments made to ICI under all Lessor Notes on such Payment Date;

(8) To the ICF Cash Collateral Account, an amount equal to the difference, if positive, between (i) the ICF Required Cash Collateral Amount and (ii) the amount on deposit in the ICF Cash Collateral Account for such Payment Date;

(9)To the ICI Collection Account, the ICF Note Senior Interest and Fees then due and payable and not already paid hereunder;

(10) To, pari passu and pro rata, the ICI Collection Account (i) the ICF Notes Senior Principal Amount then due and payable and (ii) the amount of any Senior Permitted ICI Loan;

(11) To the ICF Deposit Account, an amount equal to the difference, if positive, between (i) the ICF Required Deposit and (ii) the amount on deposit in the ICF Deposit Account for such Payment Date;

(12) To the Servicer, an amount equal to any costs or fees incurred in connection with a remanufacturing or refurbishment of an item of Equipment allocated to a Certificate pledged hereunder or subject to a Lease and that has not been replaced pursuant to the ICF Relevant Documents;

(13) To the extent not already paid pursuant to this Section 302(b) or by the Servicer after demand therefor by the Person entitled to payment of the same, to (i) each Lease Enhancer, (ii) the Administrative Agent, (iii) the ICF Indenture Trustee, (iv) to each Lessor Collection Account for the benefit of the related Owner Trustee (on behalf of the related Lessor), (v) the ICI Collection Account for the benefit of the Managing Member, (vi) the ICI Collection Account for the benefit of the ICI Indenture Trustee, (vii) to the ICI Collection Account for the benefit of any ICI Holders of Warehouse Notes and (viii) each Lessor Collection Account for the benefit of the related Lessor Indenture Trustee, pari passu and
pro rata, an amount equal to any amounts then due and payable to such Person and not already paid hereunder;

(14) To the ICI Collection Account, the ICF Note Junior Interest and Fees then due and payable;

(15) To, pari passu and pro rata, the ICI Collection Account, the ICF Notes Junior Principal then due and payable and the amount of any Junior Permitted ICI Loan;

(16) To each Currency Hedge Counterparty and Interest Rate Hedge Counterparty, pari passu and pro rata, the amount of any termination amounts, taxes, indemnities and other similar amounts or other unpaid payments and any interest accrued thereon then due and payable, and not already paid pursuant to this Section 302(b);

(17) To the relevant Lessor Collection Account to the extent required under the related Lessor Indenture and otherwise directly to each Lessor or Owner Participant (as the case 

 

 

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may be), pro rata, any Supplemental Rent and other amounts then due and payable under the related Lease and not already paid pursuant to this Section 302(b);

(18) To the Servicer, to the extent not already paid under this Section 302(b), an amount equal to any remaining unpaid indemnified amounts (including indemnities owing to the Servicer), any unpaid Servicer Fees, any unpaid Servicing Fee Arrearage, increased costs and taxes, together with all unpaid Servicer Advances and all unpaid costs and expenses incurred by the Servicer in connection with any Required Modification to an item of Equipment allocated to a Certificate pledged under this Indenture or subject to a Lease and that has not been replaced pursuant to the ICF Relevant Documents; and

(19) To ICF, any remaining ICF Available Funds.

II. If an ICF Event of Default shall have occurred and then be continuing with respect to any ICF Notes and any ICF Notes shall then be Outstanding, then, on such Payment Date, the ICF Indenture Trustee will make the following payments from the ICF Available Funds to the following Persons in the following order of priority:

(1) To the extent not already paid by the Servicer (in consideration of the Servicing Fee) after demand therefor by the Person entitled to payment of the same, pari passu and pro rata, (A) to, pari passu and pro rata (i) the related Lessor Collection Account, (w) all Owner Trustee Fees (on behalf of the related Lessor) and Lessor Indenture Trustee Fees then due and payable,
(x) any unpaid Owner Trustee Fees (on behalf of the related Lessor) and Lessor Indenture Trustee Fees from all prior Payment Dates, (y) any indemnified amounts then due and payable to each Owner Trustee and each Lessor Indenture Trustee and (z) all other amounts then due and payable to each Owner Trustee and each Lessor Indenture Trustee, (ii) to the ICF Indenture Trustee, (w) any the ICF Indenture Trustee Fees then due and payable, (x) any unpaid the ICF Indenture Trustee Fees from all prior Payment Dates, (y) any indemnified amounts then due and payable to the ICF Indenture Trustee and (z) all other amounts then due and payable to the ICF Indenture Trustee and (iii) the ICI Collection Account, (w) all Managing Member Fees and ICI Indenture Trustee Fees then due and payable, (x) any unpaid Managing Member Fees and ICI Indenture Trustee Fees from all prior Payment Dates, (y) any indemnified amounts then due and payable to the
Managing Member and the ICI Indenture Trustee and (z) all other amounts then due and payable to the Managing Member and the ICI Indenture Trustee and (B) if the Servicer is no longer Interpool, any and all fees and expenses incurred by the ICF Indenture Trustee (for its own account and on behalf of each beneficiary of the security interest in favor of the ICF Indenture Trustee) in connection with the selection of, or transition to, a successor Servicer; provided that amounts payable under Section 302(b)(I)(1) and Section 302(b)(II)(1) of this Indenture and Section 302(b)(I)(1) and Section 302(b)(II)(1) of the ICI Indenture shall not exceed $225,000 (or such higher amount as has satisfied the Rating Agency Condition and has been consented to in writing by the ICF Global Requisite Majority) annually;

(2) To, pari passu and pro rata, (A) the Administrative Agent, an amount equal to the sum of (i) the Administrative Agent Fee then due and payable and (ii) any accrued and unpaid Administrative Agent Fee from all prior Payment Dates and (B) each Lease Enhancer for which a Lease Enhancer Default has not occurred and is continuing under the related Enhancement Agreement, pari passu and pro rata, an amount equal to the premium then due and payable to each Lease Enhancer in consideration for such Lease Enhancer’s issuance of its 

 

 

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Enhancement Agreement (including any accrued and unpaid premium from prior Payment Dates) and (C) up to an aggregate amount of $300,000 annually, pari passu and pro rata, any and all other amounts payable to each Lease Enhancer under the related Enhancement Agreement (as long as no default by the related Lease Enhancer has occurred and is continuing under the related Enhancement Agreement) the Administrative Agent and each ICF Control Party (other than a Lease Enhancer);

(3) To the Servicer, any Direct Operating Expenses not already reimbursed to the Servicer;

(4) To the Servicer, an amount equal to the sum of (i) the Servicing Fee then due and payable and (ii) any Servicing Fee Arrearage, provided that if the Servicer is Interpool or an Affiliate thereof and a Servicer Default has occurred and is continuing or there is an ICI Asset Base Deficiency, then the Servicing Fee and any Servicing Fee Arrearage due and payable under this clause (4) shall instead be paid pursuant to Section 302(b)(II)(16);

(5) To, pari passu and pro rata, (i) the relevant Lessor Collection Account, to the extent required under the related Lessor Indenture, and otherwise directly to each Lessor, pro rata, the Basic Rent due and payable under each Lease, (ii) each Currency Hedge Counterparty, pro rata, the amount of regularly
scheduled payments for any current or prior periods then due and payable, and any interest accrued thereon (excluding early termination amounts, taxes, indemnities and other similar amounts), pursuant to the terms of any Qualified Currency Hedge then in effect, and (iii) each Interest Rate Hedge Counterparty and to ICI (after taking into account any payments to be received from ICF, if any, on the ICI Swap), pari passu and pro rata, any and all regularly scheduled payments for any current or prior Payment Dates (excluding early termination amounts, taxes, indemnities and other similar amounts) then due and payable and any interest accrued thereon, in each case pursuant to the terms of any Interest Rate Hedge Agreement then in effect and,
in the case of ICI, the ICI Swap;

(6) To, pari passu, (A) the relevant Lessor Collection Account to the extent required under the related Lessor Indenture and otherwise directly each Lessor, pro rata, Supplemental Rent due and payable to such Lessor under a Lease (i) for the Senior Stipulated Loss Amount of any item of Equipment that has suffered a Casualty Loss and has not been replaced pursuant to such Lease and (ii) as liquidated damages (expressly excluding any early termination amounts, default interest, taxes, increased costs and other similar amounts) upon the
occurrence of an event of default by ICF under such Lease and the exercise of remedies thereunder, including any payment of Senior Stipulated Loss Amounts in connection therewith, (B) each Interest Rate Hedge Counterparty, pro rata, to the extent not already paid under this Section 302(b), the amount of any early termination or other unpaid amounts (including any interest accrued thereon, but excluding taxes, indemnities and similar amounts) then due and payable as a result of any payment that (after giving effect to such payment and all other payments of principal to be made on the Floating Rate ICI Notes on such Payment Date) causes the aggregate principal outstanding under the Floating Rate ICI Notes to be less than the aggregate outstanding notional amount for the current Calculation Period (as defined in the
Interest Rate Hedge Agreement) under all Interest Rate Hedge Agreements, and (C) each Currency Hedge Counterparty, pro rata, to the extent not already paid under this Section 302(b), the amount of any Senior Currency Hedge Payments and any interest accrued thereon then due and payable; provided that if ICF Available Funds are insufficient on any Payment Date to pay 

 

 

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all amounts due under the above clauses (A), (B) and (C), then (i) the amount payable under clause (B) above shall be limited to the early termination and other unpaid amounts associated with the prepayments caused by such payment of Senior Stipulated Loss Amounts and (ii) the amount payable under clause (A) above shall be reduced such that the amount payable under clause (A) above together with the amounts payable under clauses (B) and (C) above is equal to the total ICF Available Funds available to be paid under this clause (6) on such Payment Date and (iii) any further ICF Available Funds remaining after the total amount of payments described in clause (ii) above shall be paid solely under clauses (B) and (C) above; 

(7) To the ICI Collection Account, an amount equal to the difference, if positive, between (i) the ICF Note Senior Interest and Fees and (ii) the aggregate amount of all principal payments made to ICI under all Lessor Notes on such Payment Date;

(8) To the ICF Cash Collateral Account, an amount equal to the difference, if positive, between (i) the ICF Required Cash Collateral Amount and (ii) the amount on deposit in the ICF Cash Collateral Account for such Payment Date;

(9) To the ICI Collection Account, the ICF Note Senior Interest and Fees then due and payable and not already paid hereunder;

(10) To, pari passu and pro rata, the ICI Collection Account (i) all remaining ICF Available Funds until then unpaid principal balance of all ICF Notes are paid in full and (ii) the amount of any Permitted ICI Loan;

(11) To the ICF Deposit Account, an amount equal to the difference, if positive, between (i) the ICF Required Deposit and (ii) the amount on deposit in the ICF Deposit Account for such Payment Date;

(12) To the extent not already paid pursuant to this Section 302(b) or by the Servicer after demand therefor by the Person entitled to payment of the same, to (i) each Lease Enhancer, (ii) the Administrative Agent, (iii) the ICF Indenture Trustee, (iv) to each Lessor Collection Account for the benefit of the related Owner Trustee (on behalf of the related Lessor), (v) the ICI Collection Account for the benefit of the Managing Member, (vi) the ICI Collection Account for the benefit of the ICI Indenture Trustee, (vii) to the ICI Collection Account for the benefit of any ICI Holders of Warehouse Notes and (viii) each Lessor Collection Account for the benefit of the related Lessor Indenture Trustee, pari passu and
pro rata, an amount equal to any amounts then due and payable to such Person;

(13) To each Currency Hedge Counterparty and each Interest Rate Hedge Counterparty, pari passu and pro rata, the amount of any termination amounts, taxes, indemnities and other similar amounts or other unpaid payments and any interest accrued thereon then due and payable, and not already paid pursuant to this Section 302(b);

(14) To the Servicer, an amount equal to any costs or fees incurred in connection with a remanufacturing or refurbishment of an item of Equipment allocated to a Certificate pledged hereunder or subject to a Lease and that has not been replaced pursuant to the ICF Relevant Documents;

 

 

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(15) To the relevant Lessor Collection Account to the extent required under the related Lessor Indenture and otherwise directly to each Lessor or Owner Participant (as the case may be), pro rata, any Supplemental Rent and other amounts then due and payable under the related Lease and not already paid pursuant to this Section 302(b);

(16) To the Servicer, to the extent not already paid under this Section 302(b), an amount equal to any remaining unpaid indemnified amounts (including indemnities owing to the Servicer), any unpaid Servicer Fees, any unpaid Servicing Fee Arrearage, increased costs and taxes, together with all unpaid Servicer Advances and all unpaid costs and expenses incurred by the Servicer in connection with any Required Modification to an item of Equipment allocated to a Certificate pledged under this Indenture or subject to a Lease and that has not been substituted pursuant to the ICF Relevant Documents; and

(17) To ICF, any remaining ICF Available Funds.

Section 303. Investment of Monies Held in each ICF Securities Account.

The Servicer shall direct the investment of any cash deposited in the ICF Holding Account, the ICF Collection Account, the ICF Cash Collateral Account, the ICF Deposit Account, the Casualty Account and each other ICF Securities Account in such Eligible Investments as a Servicing Officer shall direct the ICF Indenture Trustee in writing. Each Eligible Investment (including reinvestment of the income and proceeds of Eligible Investments) shall be held to its maturity and shall mature not later than the Business Day immediately preceding the next succeeding Payment Date. If the ICF Indenture Trustee has not received written instructions from the Servicing Officer as to the investment of funds then on deposit in any of the aforementioned accounts by 2:30 p.m. (New York time) on the day such funds are to be reinvested, the Securities Intermediary is hereby directed to
invest such funds in item (vii) of the definition of Eligible Investments. Any funds in any such ICF Securities Account not so invested must be fully insured by the Federal Deposit Insurance Corporation. Eligible Investments shall be made in the name of the ICF Indenture Trustee for the benefit of the ICF Noteholders, the Administrative Agent, each Lease Enhancer, each Lessor, each Owner Participant, each Interest Rate Hedge Counterparty and each Currency Hedge Counterparty; provided that upon release of such Eligible Investments in accordance with Section 701 of this Indenture, the ICF Indenture Trustee shall deliver such Eligible Investments to ICF or its designee. Any earnings on Eligible Investments in the ICF Collection Account, the ICF Cash Collateral Account, the ICF Deposit Account, the Casualty Account and each other ICF Securities Account shall be retained in each such account and be
distributed in accordance with the terms of this Indenture. The ICF Indenture Trustee shall not be liable or responsible for losses on any investments pursuant to and in compliance with such written instructions of the Servicer and pursuant to this Section 303; provided, that the Servicer shall be liable for any losses on any investments made pursuant to this Section 303.

Section 304. Reports to ICF Noteholders and Other Persons.

(a) The ICF Indenture Trustee shall promptly (but in no event later than one (1) Business Day of its initial receipt thereof) furnish to each ICF Noteholder, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor, the ICI Indenture Trustee and each Enhancer a copy of all reports,

 

 

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financial statements and notices received or prepared by the ICF Indenture Trustee pursuant to the terms of this Indenture, the Servicing Agreement, the Transfer Agreements or any other ICF Relevant Document (to the extent not already delivered by any Person under the ICI Relevant Documents); provided that to the extent any such Person serves in multiple capacities hereunder or under any other ICI Relevant Document, only one copy of any such reports, financial statements and notices shall be provided to such Person.

(b) By May 31 of each calendar year following any calendar year during which any ICF Notes were Outstanding, commencing May 31, 2003, the ICF Indenture Trustee will, to the extent such information is received from either the Servicer or the Securities Intermediary, furnish to each ICF Noteholder of record at any time during such preceding calendar year, a statement setting forth the aggregate amount of principal and interest paid to such ICF Holder during the preceding calendar year.

Section 305. Records.

The ICF Indenture Trustee shall cause to be kept and maintained reasonably adequate records pertaining to the ICF Collection Account, the ICF Cash Collateral Account, the ICF Deposit Account, the Casualty Account and each other ICF Securities Account and all receipts and disbursements therefrom. The ICF Indenture Trustee shall deliver, at least monthly, an accounting thereof in the form of a trust statement to ICF, the Servicer, the Administrative Agent, the Currency Hedge Counterparties, each Interest Rate Hedge Counterparty, each ICF Noteholder and each Enhancer.

Section 306. ICF Securities Accounts.

(a) Each of the ICF Collection Account, the ICF Cash Collateral Account and each other account established pursuant to this Indenture for the benefit of the ICF Noteholders, the Administrative Agent, each Lease Enhancer, each Lessor, each Owner Participant, each Interest Rate Hedge Counterparty or each Currency Hedge Counterparty shall be an Eligible Account that is a “securities account” (under the New York UCC), and ICF hereby grants to the ICF Indenture Trustee (in such capacity the ICF Indenture Trustee shall constitute a securities intermediary) for the benefit of (x) the ICF Noteholders, the Administrative Agent, each Lease Enhancer, each Owner Participant, each Lessor, each Interest Rate Hedge Counterparty and each Currency Hedge Counterparty a security interest in and to the ICF Collection Account, the ICF Cash Collateral Account, the ICF Deposit
Account and the Casualty Account and (y) any one or more such Persons, as more specifically provided in the respective Supplements, a security interest in and to each other ICF Securities Account established pursuant to this Indenture, including all Financial Assets credited to such ICF Securities Accounts from time to time.

(b) The rights and powers granted herein to the ICF Indenture Trustee that have been granted in order to perfect its security interest in each ICF Securities Account created pursuant to this Indenture and the Security Entitlements to the Financial Assets credited thereto are powers coupled with an interest and will neither be affected by the bankruptcy of ICF nor by the lapse of time. The obligations of JPMorgan Chase Bank (f/k/a The Chase Manhattan Bank), as a securities intermediary under this Indenture or under any securities account control agreement, shall continue in effect until the security interest of the ICF Indenture Trustee in each ICF Securities Account created pursuant to this Indenture and all Security Entitlements related

 

 

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thereto has been terminated pursuant to the terms of this Indenture and the ICF Indenture Trustee has notified the Securities Intermediary of such termination in writing, which the ICF Indenture Trustee shall do so promptly upon such termination.

(c) There are no other agreements entered into between JPMorgan Chase Bank (f/k/a The Chase Manhattan Bank), as a securities intermediary, and ICF with respect to any ICF Securities Account established pursuant to the terms of this Indenture. In the event of any conflict between this Indenture (or any provision of this Indenture) and any other agreement now existing or hereafter entered into, the terms of this Indenture shall prevail.

(d) Notwithstanding anything else contained herein, ICF agrees and covenants that each ICF Securities Account will be established only with the ICF Indenture Trustee or another institution that satisfies the eligibility requirements set forth in Section 906 (which ICF will notify the ICF Indenture Trustee of in writing) which agrees substantially as follows: (i) it will comply with Entitlement Orders related to such account issued by the ICF Indenture Trustee, without further consent by ICF or any other Person; (ii) until termination of this Indenture, it will not enter into any other agreement related to such account pursuant to which it agrees to comply with Entitlement Orders of any Person other than the ICF Indenture Trustee; (iii) all assets delivered or credited to it in connection with such account and all investments thereof will be promptly credited
to such account and shall be treated as Financial Assets; (iv) such Securities Intermediary shall treat the ICF Indenture Trustee as entitled to exercise the rights that comprise each Financial Asset credited to such ICF Securities Account; (v) such ICF Securities Accounts and the property credited thereto shall not be subject to any Lien, security interest or right of set-off in favor of such Securities Intermediary or anyone claiming through it (other than the ICF Indenture Trustee), and (vi) such agreement shall be governed by the laws of the State of New York (without reference to its conflict of laws principles except for Sections 5-1401 and 5-1402 of the New York General Obligations Law).

(e) ICF agrees, and covenants to cause the Servicer to agree, to take or cause to be taken such further actions, to execute, deliver and file or cause to be executed, delivered and filed such further documents and instruments (including, without limitation, any Financing Statements under the Uniform Commercial Code or this Indenture) as may be determined by ICF, the Servicer, the Administrative Agent, each Lease Enhancer, each ICF Noteholder or the ICF Indenture Trustee to be necessary or appropriate, in order to perfect the interests created by this Section and otherwise effectuate the purposes, terms and conditions of this Section.

(f) The ICF Indenture Trustee (in its capacity as a Securities Intermediary for the ICF Collection Account, the ICF Cash Collateral Account and each other ICF Securities Account established hereunder) hereby confirms that, notwithstanding anything to the contrary, New York state shall be deemed to be the location and jurisdiction of the ICF Indenture Trustee (in its capacity as Securities Intermediary for the foregoing accounts) for purposes of Section 8-110 of UCC, and each such account (as well as the Security Entitlements related thereto) shall be governed by the laws of the State of New York (without reference to its conflict of laws principles except for Sections 5-1401 and 5-1402 of the New York General Obligations Law).

 

 

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Section 307. ICF Cash Collateral Account.

(a) ICF shall establish and maintain in the name of the ICF Indenture Trustee the ICF Cash Collateral Account with the Corporate Trust Office of the ICF Indenture Trustee and such ICF Cash Collateral Account shall be held by the ICF Indenture Trustee for the benefit of the ICF Noteholders, each Lease Enhancer, each Lessor, each Owner Participant, each Interest Rate Hedge Counterparty and each Currency Hedge Counterparty pursuant to this Indenture. Any and all moneys remitted by ICF, or the Servicer on behalf of ICF, to the ICF Cash Collateral Account from the ICF Collection Account, together with any Eligible Investments in which such moneys are or will be invested or reinvested, shall be held in the ICF Cash Collateral Account. Upon entering into each Lease, ICF shall deposit, or cause to be deposited, into the ICF Cash Collateral Account a sufficient amount of funds such
that, after giving effect to such deposit, the amount of funds on deposit therein shall be equal to the ICF Required Cash Collateral Amount, and thereafter amounts shall be deposited into the ICF Cash Collateral Account in accordance with Section 302. Any and all moneys remitted by the ICF Indenture Trustee to the ICF Cash Collateral Account shall be invested by the ICF Indenture Trustee pursuant to Section 303 in Eligible Investments in accordance with this Indenture and shall be distributed in accordance with this Section 307.

(b) On each Determination Date, the ICF Indenture Trustee shall, in accordance with the Servicer Report, withdraw from the ICG Cash Collateral Account and deposit into the ICF Collection Account (solely to be used for the payment obligations set forth in the definition of ICG Permitted Payment Date Withdrawals) an amount equal to the excess, if any, of (A) the ICF (A) the ICF Permitted Payment Date Withdrawals over (B) amounts then on deposit in the ICF Collection Account (determined after giving effect to all other deposits to the ICF Collection Account on or prior to such Determination Date); provided that if the amount on deposit in the ICF Cash Collateral Account on a Determination Date is not sufficient to pay in full the aggregate ICF Permitted Payment Date Withdrawals referred
to in this subsection (b), then the amount of funds then available in the ICF Cash Collateral Account will be allocated in proportion to the amount of the respective ICF Permitted Payment Date Withdrawals.

(c) On each Payment Date, the ICF Indenture Trustee shall, in accordance with the Servicer Report, deposit in the ICF Collection Account for distribution in accordance with Section 302 of this Indenture, the excess, if any, of (A) amounts then on deposit in the ICF Cash Collateral Account (after giving effect to any withdrawals therefrom on such Payment Date) over (B) the ICF Required Cash Collateral Amount. On the later of the ICF Legal Maturity Date and the date that the entire principal of and accrued interest on all ICF Notes, any Permitted ICI Loan has been paid in full, any remaining funds on deposit in the ICF Cash Collateral Account shall be deposited in the ICF Collection Account and distributed in accordance with Section 302 of this Indenture.

Section 308. Security Deposit Account

ICF shall establish and maintain in the name of the ICF Indenture Trustee the Security Deposit Account with the Corporate Trust Office of the ICF Indenture Trustee and such Security Deposit Account shall be held by the ICF Indenture Trustee for the benefit of the ICF Noteholders, each Lessor, each Owner Participant, each Lease Enhancer, each Interest Rate Hedge Counterparty and each Currency Hedge Counterparty pursuant to this Indenture. Any and 

 

 

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all moneys remitted to the Security Deposit Account, together with any Eligible Investments in which such moneys are or will be invested or reinvested, and any proceeds thereof not required to be returned to the related User, shall be held in the Security Deposit Account. Any Security Deposit paid by a User shall be deposited, or caused to be deposited, into the Security Deposit Account, and thereafter amounts shall be withdrawn from the Security Deposit Account and deposited into the ICF Collection Account pursuant to the terms and conditions of the Servicing Agreement. Any and all moneys remitted by the ICF Indenture Trustee to the Security Deposit Account shall be invested by the ICF Indenture Trustee pursuant to Section 303 in Eligible Investments in accordance with this Indenture and shall be distributed in accordance with this Section 308.

Section 309. ICF Deposit Account.

(a) ICF shall establish and maintain in the name of the ICF Indenture Trustee the ICF Deposit Account with the Corporate Trust Office of the ICF Indenture Trustee and amounts on deposit in such ICF Deposit Account, subject to Section 309(c) hereof, shall be applied only for the payment of any shortfall in amounts due and payable pursuant to clauses (I)(1) through (I)(10) and clause (I)(15) or clauses (II)(1) through (II)(10), as the case may be, of Section 302(b) of this Indenture. On the Closing Date, ICF shall deposit the ICF Required Deposit into the ICF Deposit Account. 

(b) Any and all moneys remitted from the ICF Collection Account or by ICF, or the Servicer on its behalf, to the ICF Deposit Account, together with any Eligible Investments in which such moneys are or will be invested or reinvested, shall be held in the ICF Deposit Account. On the issuance date of any Series, ICF shall deposit, or cause to be deposited, into the ICF Deposit Account a sufficient amount of funds such that, after giving effect to such deposit, the amount of funds on deposit therein shall be at least equal to the ICF Required Deposit, and thereafter amounts shall be deposited in the ICF Deposit Account in accordance with Section 302. Any and all moneys remitted by the ICF Indenture Trustee to the ICF Deposit Account shall be invested by the ICF Indenture Trustee pursuant to Section 303 in Eligible Investments in accordance with this Indenture and shall be
distributed in accordance with this Section 309.

(c) If, on any Payment Date, the amount of funds on deposit in the ICF Deposit Account is greater than the ICF Required Deposit, then ICF may withdraw the amount of such excess and deposit such excess into the ICF Collection Account for distribution in accordance with section 302 of this Indenture. If, on any Payment Date, the amount of funds on deposit in the ICF Collection Account is not sufficient to pay any and all amounts due and payable pursuant to clauses (I)(1) through (I)(10) and clause (I)(15) or clauses (II)(1) through (II)(10), as the case may be, of Section 302(b) of this Indenture, then any funds on deposit in the ICF Deposit Account in an amount equal to the difference between (x) the sum of the amounts payable pursuant to clauses (I)(1) through (I)(10) and clause (I)(15) or clauses (II)(1)
through (II)(10), as the case may be, and (y) the amount on deposit in the ICF Collection Account shall be deposited into the ICF Collection Account for distribution in accordance with Section 302 of this Indenture to pay any shortfall in the payment of any and all amounts due and payable pursuant to clauses (I)(1) through (I)(10) and clause (I)(15) or clauses (II)(1) through (II)(10), as the case may be, of Section 302(b) of this Indenture. On the later of the ICF Legal Maturity Date and the date that the entire principal of and accrued interest

 

 

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on all ICF Notes, any Permitted ICI Loan has been paid in full, any remaining funds on deposit in the ICF Deposit Account shall be deposited into the ICF Collection Account and distributed in accordance with Section 302 of this Indenture.

(d) If (i) as a result of a claim against a lessor under a Contract, or the Servicer in performing such lessor’s obligations under or with respect to a Contract, the User under such Contract makes a claim for any abatement, reduction, recoupment, setoff, defense or counterclaim or (ii) any Person (other than the Servicer) asserts any fee for managing or administering the Equipment relating to a Contract, then the amount of the related Offset Deposit shall be deposited into the ICF Deposit Account. If as a result of any such abatement, reduction, recoupment, setoff, defense or counterclaim or any such fee there is a shortfall as of the next Determination Date in the payment of amounts due and payable under Section 302(b) (up to and including amounts due and payable pursuant to clauses (I)(1) through (I)(10) and clause (I)(15) or
clauses (II)(1) through (II)(10), as the case may be, of Section 302(b)), the amount of any such Offset Deposit or excess Offset Deposit, as the case may be, shall be deposited into the ICF Collection Account by the ICF Indenture Trustee (pursuant to the Servicer Report) for distribution on the following Payment Date in accordance with Section 302(b) for payment of amounts due and payable pursuant to clauses (I)(1) through (I)(10) and clause (I)(15) or clauses (II)(1) through (II)(10), as the case may be of Section 302(b). If the amount of any claim for any such abatement, reduction, recoupment, setoff, defense or counterclaim or any such fee is payable to a User pursuant to a final order that may not or will not be appealed, then, from amounts on deposit in the ICF Deposit Account, an amount equal to the Adjusted Equipment Value for each item of Equipment subject to such claim shall be deposited into the ICF Collection Account from
the ICF Deposit Account for payment of any amounts due and payable under Section 302(b) (up to and including amounts due and payable pursuant to clauses (I)(1) through (I)(10) and clause (I)(15) or clauses (II)(1) through (II)(10), as the case may be of Section 302(b). If any Offset Deposit on deposit in the ICF Deposit Account relates to a claim which has been dismissed, or resolved for an amount less than the related Offset Deposit actually deposited into the ICF Deposit Account relating to such claim, then an amount equal to such Offset Deposit shall be deposited into the ICF Collection Account for distribution on the Payment Date following such dismissal or resolution. For the avoidance of doubt, until such time as all ICF Notes have been paid in full, any amount payable in accordance with the terms of this Section 308(d) shall be paid first from the Offset Deposits then on deposit in the ICF Deposit Account and Offset Deposits may only be
applied against claims against the lessor, or the Servicer in performing such lessor’s obligations under a Contract for any abatement, reduction, recoupment, setoff, defense or counterclaim or any such fee.

Section 310. No Claim. 

Indemnities payable to the ICF Indenture Trustee, the Servicer, Interpool, Inc. or any other secured party hereunder shall not constitute a claim against ICF or the ICF Collateral in the event such amounts are not paid in accordance with Section 302 of this Indenture.

Section 311. Compliance with Withholding Requirements. 

Notwithstanding any other provision of this Indenture, the ICF Indenture Trustee shall comply with all United States federal income tax withholding requirements with respect to payments to ICF Noteholders of interest, original issue discount, or other amounts that the ICF

 

 

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Indenture Trustee reasonably believes are applicable under the Code. The consent of ICF Noteholders shall not be required for any such withholding.

Section 312. Tax Treatment of ICF Notes. 

ICF has entered into this Indenture, and the ICF Notes will be issued, with the intention that, for federal, state and local income, single business and franchise tax purposes, the ICF Notes will qualify as indebtedness. ICF and the ICF Indenture Trustee, by entering into this Indenture, and each ICF Noteholder, by its acceptance of its ICF Note, agree to treat the ICF Notes for federal, state and local income, single business and franchise tax purposes as indebtedness. This Section 312 shall not apply to the tax treatment of the ICF Notes in any taxing jurisdiction where neither ICF nor any ICF Noteholder is classified as an entity separate from the owner(s) of ICF, and, as a result, the ICF Notes are disregarded for tax purposes.

ARTICLE IV

ICF COLLATERAL

Section 401. Possession of Lease Files and Certificates.

(a) Pursuant to the applicable SUBI Supplement and Section 402 hereof, Wachovia Bank, National Association (f/k/a First Union National Bank) has been appointed, and has accepted appointment, as Custodian of the Lease Files (as defined in the applicable SUBI Supplement) in accordance with the terms and conditions of the applicable SUBI Supplement. The ICF Indenture Trustee hereby agrees to hold any SUBI Certificate subjected to the lien of this Indenture, any SUBI Asset subjected to the lien of this Indenture, any note issued in connection with the Permitted ICI Loan and other items of ICF Collateral it receives on behalf of each ICF Noteholder, the Administrative Agent, each Lessor, each Owner Participant, each Lease Enhancer, each Interest Rate Hedge Counterparty and each Currency Hedge Counterparty, and to maintain exclusive custody of any such collateral from time to
time pledged to the ICF Indenture Trustee, on behalf of the ICF Noteholders, the Administrative Agent, each Lessor, each Owner Participant, each Enhancer, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty and each Lessor to secure the ICF Secured Obligations. In performing its duties hereunder, the ICF Indenture Trustee agrees to act with reasonable care, using that degree of skill and attention that a custodian would exercise with respect to files relating to all comparable collateral that it services or holds for others.

(b) The ICF Indenture Trustee shall segregate and maintain continuous custody of all Certificate(s), “chattel paper,” documents and instruments in secure and fire resistant facilities in accordance with customary standards for such custody.

(c) With respect to each Certificate pledged hereunder, the ICF Indenture Trustee shall (i) act exclusively as the custodian for, and the bailee of, the related ICF Noteholders, the Administrative Agent, each Currency Hedge Counterparty, each Lessor, each Owner Participant, each Interest Rate Hedge Counterparty and each Lease Enhancer, (ii) hold each Certificate received by it for the exclusive use and benefit of the ICF Noteholders, the Administrative Agent, each Currency Hedge Counterparty, each Lessor, each Owner Participant, 

 

 

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each Interest Rate Hedge Counterparty and each Lease Enhancer, and (iii) make disposition thereof only in accordance with the terms of this Indenture or with written instructions furnished by the ICF Global Requisite Majority.

(d) The ICF Indenture Trustee makes no representations as to and shall not be responsible to verify (i) the validity, legality, enforceability, recordability or due authorization of any Contract or Certificate or (ii) the collectability, insurability, effectiveness or suitability of any Contract or Certificate.

Section 402. Appointment of Custodian.

The ICF Indenture Trustee, with the consent of each ICF Noteholder, the Administrative Agent, each Currency Hedge Counterparty, each Lessor, each Owner Participant, each Interest Rate Hedge Counterparty and each Lease Enhancer, hereby appoint each Custodian as its agent and bailee to safe keep each Contract and Lease File that at any time is delivered to and held by Custodian for or on behalf of the ICF Indenture Trustee under this Indenture, the Servicing Agreement and each other ICF Relevant Document. The Custodian has accepted such appointment pursuant to Section 3.01 of each SUBI Supplement related to each SUBI Certificate pledged hereunder and, subject to the terms and conditions of the ICF Relevant Documents, has agreed to receive such Contracts, for or on behalf of the ICF Indenture Trustee, and to hold, release or otherwise dispose of such Contracts and Lease Files
as provided in the ICF Relevant Documents. The Custodian’s duties under the Trust Agreement and each applicable SUBI Supplement shall continue until altered in writing by the ICF Indenture Trustee (at the prior written direction of the ICF Global Requisite Majority) and the Custodian or until the satisfaction and discharge of this Indenture in accordance with its terms. Upon the occurrence of the terms and conditions set forth in Sections 3.03(e) and/or Section 7.02(d) of the Servicing Agreement, the ICF Indenture Trustee shall direct the Custodian to deliver to the ICF Indenture Trustee such Contracts and Lease Files.

Section 403. Reserved. 

Section 404. The ICF Indenture Trustee’s Appointment as Attorney-in-Fact.

(a) ICF hereby irrevocably constitutes and appoints the ICF Indenture Trustee, and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of ICF and in the name of ICF or in its own name, from time to time at the ICF Indenture Trustee’s discretion, for the purpose of carrying out the terms of this Indenture, to take any and all appropriate action and to execute and deliver any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Indenture.

(b) The ICF Indenture Trustee shall not exercise the power of attorney or any rights granted to the ICF Indenture Trustee pursuant to this Section 404 unless an ICF Event of Default or a Servicer Default shall have occurred and then be continuing. ICF hereby ratifies, to the extent permitted by law, all actions that said attorney shall lawfully do, or cause to be done, by virtue hereof. The power of attorney granted pursuant to this Section 404 is a power coupled with an interest and shall be irrevocable until all ICF Notes and other ICF Secured Obligations are paid and performed in full.

 

 

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(c) The powers conferred on the ICF Indenture Trustee hereunder are solely to protect the ICF Indenture Trustee’s interests in the ICF Collateral and shall not impose any duty upon it to exercise any such powers except as set forth herein. The ICF Indenture Trustee shall be accountable only for amounts that it actually receives as a result of the exercise of such powers and neither it nor any of its officers, directors, employees, agents or representatives shall be responsible to ICF for any act or failure to act, except for its own negligence or willful misconduct.

(d) ICF also authorizes the ICF Indenture Trustee, at any time and from time to time, upon the occurrence of a Servicer Default, to (i) at the written direction of the ICF Global Requisite Majority, terminate the Servicing Agreement then in effect, whereupon the ICF Indenture Trustee may communicate in its own name, or direct any other Person (including the Trust, the Servicer or a replacement Servicer) to communicate on its behalf, with any party to any agreement relating to any or all of the ICF Collateral and to notify such Person of the assignment by ICF of all of its right, title and interest in, to and under the ICF Collateral and (ii) execute, in connection with the Sale of ICF Collateral provided for in Article VIII hereof, any endorsements, assignments or other instruments of conveyance or transfer with respect to any item, of ICF Collateral.

(e) If ICF fails to perform or comply with any of its agreements contained herein, the ICF Indenture Trustee, with the consent of, or at the direction of, the ICF Global Requisite Majority, shall perform or comply, or otherwise cause performance or compliance, with such agreement. The reasonable expenses, including attorneys’ fees and expenses, of the ICF Indenture Trustee incurred in connection with such performance or compliance, together with interest thereon at the ICF Overdue Rate, shall be payable by ICF to the ICF Indenture Trustee on demand and shall constitute additional ICF Outstanding Obligations secured hereby.

Section 405. Representation and Warranty of Title.

ICF hereby represents and warrants as of the Closing Date and each Advance Date that it has good title to, and is the sole owner of, all of the ICF Collateral.

Section 406. Administration of ICF Collateral.

(a) The ICF Indenture Trustee hereby acknowledges the appointment by ICF of Interpool as Servicer to service and administer the SUBI Assets subject to the lien of this Indenture and the other ICF Collateral in accordance with the provisions of the Servicing Agreement and agrees to provide the Servicer with such documentation, and to take all such actions, as the Servicer may reasonably request in accordance with the provisions of the Servicing Agreement.

(b) The ICF Indenture Trustee shall have no obligation to identify or appoint a successor servicer except as set forth in Section 7.02 of the Servicing Agreement. The ICF Indenture Trustee hereby acknowledges and consents to the terms of Section 7.02 of the Servicing Agreement, which are hereby incorporated by reference.

 

 

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(c) Upon a Corporate Trust Officer’s obtaining actual knowledge or written notice or the receipt of notice by the ICF Indenture Trustee that any repurchase obligations of any Seller under Section 3.03 of its respective Transfer Agreement have arisen, the ICF Indenture Trustee shall notify such Seller, each Lessor, each Owner Participant, each Lease Enhancer, each Series Enhancer, each ICF Noteholder, the Administrative Agent, each Interest Rate Hedge Counterparty and each Currency Hedge Counterparty of such event and shall enforce such repurchase obligations at the direction of the Administrative Agent.

Section 407. Sale of Scrap Units.

ICF shall have the right to cause the Trust, or the Servicer on behalf of the Trust, to sell any item of Equipment allocated to a Certificate pledged hereunder at the end of its Useful Life to (a) Interpool or Interpool’s designee in an amount not less than the highest of the related Scrap Value, the Adjusted Equipment Value and the highest amount offered for such item of Equipment (which shall in no event be less than the fair market value of such item of Equipment) or (b) any third party in an amount not less than the higher of the Scrap Value and the highest amount offered for such item of Equipment (which shall in no event be less than the fair market value of such item of Equipment); provided that any designee of Interpool or any third party purchasing such equipment shall agree
to not file or join in the filing of any bankruptcy petition against the Trust, ICF, any Lessor or ICI or cooperate and encourage others to file a bankruptcy petition against the Trust, ICF, any Lessor or ICI.

Section 408. Exchange Rights.

ICF shall, to the extent permitted by the related Lease (or otherwise consented to by the related (Lessor Control Party), but in any event in accordance with the terms and conditions of the Trust Agreement and the related SUBI Supplement), exchange any item of Equipment allocated to a Certificate subject to a Lease that, unless exchanged, would require payment of the related Senior Stipulated Loss Amount (“Replaced Equipment”), with an item of Eligible Equipment that is allocated to a Certificate pledged hereunder and complies with the eligibility criteria set forth in the related Lease (“Replacement Equipment”); provided
that if the Adjusted Equipment Value of any Replacement Equipment is greater than the related Senior Stipulated Loss Value of such Replaced Equipment, ICF may only exchange such item of Equipment if the Servicer determines that such exchange is in accordance with the Servicing Standard and the ICF Global Requisite Majority has not instructed ICF and the Servicer otherwise.

ARTICLE V

ICF REPRESENTATIONS AND WARRANTIES

To induce the ICF Noteholders to purchase the ICF Notes issued from time to time hereunder, each Lessor to enter into its respective Lease, each Lease Enhancer to execute and deliver its Enhancement Agreement, each Interest Rate Hedge Counterparty to enter into its Interest Rate Hedge Agreement and each Currency Hedge Counterparty to enter into its Qualified Currency Hedge, ICF, as of the Closing Date and each Advance Date, hereby makes the following representations, warranties and covenants to each Currency Hedge Counterparty,

 

 

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each Interest Rate Hedge Counterparty, Lease Enhancer, each ICF Noteholder, each Lessor, each Owner Participant, and the ICF Indenture Trustee for the benefit of such persons.

Section 501. Existence.

ICF is a Delaware limited liability company duly organized, validly existing and in good standing under the laws of Delaware. ICF is not organized under the laws of any other State and is in good standing and is duly qualified to do business in each jurisdiction where the failure to be so qualified would have a material adverse effect upon ICF. ICF has full power and authority to own its properties and to conduct its business as presently conducted. The organizational identification number of ICF is 3247987.

Section 502. Authorization.

ICF has the full power and is duly authorized to execute and deliver this Indenture and the other ICF Relevant Documents to which it is a party; ICF is and will continue to be duly authorized to borrow monies hereunder and to own its properties and conduct its business as such business is presently conducted; and ICF is and will continue to be authorized to perform its obligations under this Indenture and under the other ICF Relevant Documents. ICF has duly authorized the execution, delivery and performance of each of the foregoing and the sale of the ICF Notes. The execution, delivery and performance by ICF of this Indenture and the other ICF Relevant Documents to which it is a party and the borrowings hereunder do not and will not require any consent or approval of any Governmental Authority, member or any other Person which has not already been obtained.

Section 503. No Conflict; Legal Compliance.

The execution, delivery and performance of this Indenture and each of the other ICF Relevant Documents and the execution, delivery and payment of the ICF Notes will not: (a) contravene any provision of ICF’s limited liability company operating agreement; (b) contravene, conflict with or violate any applicable law, rule or regulation, or any order, writ, judgment, injunction, decree, determination or award of any Governmental Authority; or (c) violate or result in the breach of, or constitute (with or without notice, lapse of time or both) a default under, or result in the creation or imposition of any Lien (other than as contemplated by this Indenture), under this Indenture, the other ICF Relevant Documents, any other material indenture or other loan or credit agreement, mortgage, deed of trust, commitment letter, or other material agreement or instrument to
which ICF is a party or by which ICF, or its property and assets may be bound or affected. ICF is not in violation or breach of or default under any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award or any contract, agreement, lease, license, indenture or other instrument to which it is a party.

Section 504. Validity and Binding.

This Indenture is, and each ICF Relevant Document to which ICF is a party, when duly executed and delivered, will be, legal, valid and binding obligations of ICF, enforceable against ICF in accordance with their respective terms, except as enforceability may be limited by bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or other similar laws (whether statutory, regulatory or decisional) and general equitable principles affecting the

 

 

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enforcement of creditors’ rights and remedies regardless of whether such enforceability is considered in a proceeding at equity or at law remedies.

Section 505. Executive Offices.

The current location of ICF’s chief executive office and principal place of business is located at 211 College Road East, Suite A1, Princeton, New Jersey 08540 and ICF has not had any other chief executive office or principal place of business within the five-year period prior to the date hereof and has not kept its books and records in any other office or place within the five-year period prior to the date hereof.

Section 506. No Agreements or Contracts.

ICF is not now and has not been a party to any contract or agreement (whether written or oral) other than any ICF Related Documents entered into in connection with the issuance of any other ICF Notes.

Section 507. Consents and Approvals.

No approval, authorization, consent, order or any other action of any trustee or holder of any Indebtedness or obligation of ICF or of any other Person under any agreement, contract, lease or license or similar document or instrument to which ICF is a party or by which ICF is bound, is required to be obtained by ICF in order to make or consummate the transactions contemplated under the ICF Relevant Documents, except for those that have been obtained on or prior to the Closing Date or the related Advance Date (as the case may be). All consents, licenses, authorizations, orders, approvals of, filings and registrations with, and other actions in respect of, all Governmental Authorities, Persons, or other organizations required to be obtained by ICF in order to make or consummate the transactions contemplated under the ICF Relevant Documents have been, or prior to the time when
required will have been, obtained, given, filed or taken and are or will be in full force and effect.

Section 508. Margin Regulations.

ICF does not own any “margin security”, as that term is defined in Regulation U of the Federal Reserve Board, and the proceeds of the ICF Notes issued under this Indenture will be used only for the purposes contemplated hereunder. None of such proceeds will be used, directly or indirectly, for the purpose of purchasing or carrying any margin security, for the purpose of reducing or retiring any indebtedness which was originally incurred to purchase or carry any margin security or for any other purpose which might cause any of the loans under this Indenture to be considered a “purpose credit” within the meaning of Regulations T, U and X. ICF will not take or permit any agent acting on its behalf to take any action which might cause this Indenture or any document or instrument delivered pursuant hereto to violate any regulation of the Federal Reserve Board.

Section 509. Taxes.

All federal, state, local and foreign tax returns, reports and statements which, to ICF’s knowledge, are required to be filed by ICF have been filed, or caused to be filed, with the

 

 

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appropriate Governmental Authorities, and all Taxes, other taxes and other impositions shown thereon to be due and payable by ICF have been paid prior to the date on which any fine, penalty, interest or late charge may be added thereto for nonpayment thereof, or any such fine, penalty, interest, late charge or loss has been paid, or ICF is contesting its liability therefor in good faith and has fully reserved all such amounts in accordance with GAAP in the financial statements provided pursuant to this Indenture. ICF has paid when due and payable all material charges upon the books of ICF and no Governmental Authority has asserted, to its knowledge, any Lien against ICF or any of its property with respect to unpaid Taxes or other taxes. Proper and accurate amounts have been withheld by ICF from its employees for all periods in full and complete compliance with the tax, social security and
unemployment withholding provisions of applicable federal, state, local and foreign law and such withholdings have been timely paid to the respective Governmental Authorities.

Section 510. Other Regulations.

ICF is not an “investment company,” or an “affiliated person” of, or a “promoter” or “principal underwriter” for, or “controlled” by, an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended from time to time. The issuance of the ICF Notes hereunder and the application of the proceeds and repayment thereof by ICF and the performance of the transactions contemplated by this Indenture and the other ICF Relevant Documents will not violate any provision of the Investment Company Act of 1940 or any rule, regulation or order issued by the SEC thereunder.

Section 511. Solvency and Separateness.

(a) The capital of ICF is adequate for the business and undertakings of ICF as currently conducted and as proposed to be conducted.

(b) Other than with respect to the transactions contemplated by the ICF Relevant Documents, the ICI Relevant Documents or pursuant to a Financing, ICF is not engaged in any business transactions with the Sellers, any Lessor, any Owner Participant, ICI or the Servicer.

(c) At least one “Non-Managing Member” of ICF is an independent member (as described in Section 8.1 of the ICF Operating Agreement).

(d) ICF’s funds and assets are not, and will not be, commingled with those of the Sellers, any Lessor, any Owner Participant, ICI or the Servicer, except as permitted by this Indenture, the Servicing Agreement, the Lockbox Intercreditor Agreement and the other ICI Relevant Documents.

(e) The operating agreement of ICF requires it to maintain (A) correct and complete books and records of account, and (B) minutes of the meetings and other proceedings of its members.

(f) ICF is not insolvent under any Insolvency Law and will not be rendered insolvent by the transactions contemplated by this Indenture and the ICF Relevant Documents and after giving effect to such transactions, ICF will not be left with an unreasonably small

 

 

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amount of capital with which to engage in its business nor will ICF have intended to incur, or believe that it has incurred, debts beyond its ability to pay such debts as they mature. ICF does not contemplate the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, trustee or similar official in respect of ICF or any of its assets.

Section 512. Survival of Representations and Warranties.

So long as any of the ICF Notes shall be Outstanding and until payment and performance in full of the ICF Outstanding Obligations, the representations and warranties contained herein shall survive the execution and delivery of all ICF Notes and shall have a continuing effect as having been true when made.

Section 513. No Default.

No ICF Event of Default has occurred and is continuing and no event has occurred that with the passage of time would become an ICF Event of Default.

Section 514. Litigation and Contingent Liabilities.

(a) There is no order, judgment, decree, injunction, stipulation or consent order of or with any court or other Governmental Authority to which ICF is subject, and there is no action, suit, arbitration, regulatory proceeding or investigation pending or, to the knowledge of ICF threatened before or by any Governmental Authority, against ICF that individually or in the aggregate is reasonably likely to have a Material Adverse Effect with respect to ICF.

(b) There are no proceedings or investigations to which ICF is a party pending, or, to its best knowledge, threatened, before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality (a) asserting the invalidity of any of the ICF Relevant Documents, (b) seeking to prevent the consummation of any of the transactions contemplated by the ICF Relevant Documents, (c) seeking any determination or ruling that would materially and adversely affect the performance by it of its obligations under, or the validity or enforceability of, the ICF Relevant Documents or (d) which would have a material adverse effect on its ability to perform its obligations under the ICF Relevant Documents.

Section 515. Title; Liens.

ICF has and shall continue to have good, legal and marketable title to each of its respective assets (including, without limitation, each Certificate pledge hereunder), and none of such assets is subject to any Lien, except for the Lien created or permitted pursuant to this Indenture.

Section 516. Subsidiaries.

ICF has had no, and shall not have any, subsidiaries and does not own or hold, nor shall it own or hold, directly or indirectly, any capital stock or equity security of, or any equity interest (other than any Certificates issued by the Trust pursuant to a Financing) in any Person.

 

 

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Section 517. No Partnership.

ICF is not and shall not be a partner or joint venturer in any partnership or joint venture.

Section 518. Pension and Welfare Plans.

The execution and delivery of this Indenture and the other ICF Relevant Documents and the consummation of the transactions contemplated hereby and thereby will neither result in, constitute or otherwise give rise to a “prohibited transaction” as described in Section 406 of ERISA or Section 4975 of the Code, with respect to a Contributor Plan. For the purpose of this Section 518, the term “Contributor Plan” shall mean an “employee benefit plan” (as defined in Section 3 of ERISA) which is or has been established or maintained, or to which contributions are, have been or are required to be made, by Interpool or ICF or by any trade or business, whether or not incorporated, which, together with Interpool or ICF, is under common control, as described in
Section 414(b) or (c) of the Code or Section 4001 of ERISA. Neither ICF nor any ERISA Affiliate maintains or has any obligation with respect to, or has at any time maintained or had any obligation with respect to, a defined benefit plan as defined in Section 3(35) of ERISA or a money purchase pension plan subject to Section 412 of the Code or a multiemployer pension plan as defined in Section 3(37) of ERISA.

Section 519. Information.

No information, exhibit, financial statement, document, book, record or report furnished or to be furnished by ICF in writing to the ICF Indenture Trustee, the ICI Indenture Trustee, any ICF Noteholder, any Currency Hedge Counterparty, any Interest Rate Hedge Counterparty, any Series Enhancer, any Lessor Note Enhancer or any Lease Enhancer (when taken together), (i) is or will be inaccurate in any material respect as of the date it is or shall be dated or (except as otherwise disclosed to the recipient thereof at the time of delivery or thereafter) as of the date so furnished, and (ii) no such document contains or will contain any material misstatement of fact or (with respect to any offering document relating to any of the ICF Notes) omits or shall omit to state a material fact necessary to make the statements contained therein not misleading. To the extent that any
information, exhibit, financial statement, document, book, record or report that is furnished by or on behalf of ICF contain any untrue statement of material fact or (with respect to any offering document relating to any of the ICF Notes) omit to state any material fact necessary to make the statements herein or therein not misleading, ICF shall promptly correct, or cause to be corrected, such statement or omission.

Section 520. Bulk Sales.

The execution, delivery and performance of this Indenture and the other ICF Relevant Documents do not require compliance with any “bulk sales” law by ICF.

Section 521. Selection Procedures.

No procedures believed by it to be materially adverse to the interests of the ICF Noteholders or any other beneficiary of the Grant of the ICF Collateral were utilized by ICF, the Trust, ICI or the Servicer in identifying and/or selecting the Transferred Assets.

 

 

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Section 522. Transfer Agreements.

The Transfer Agreements are the only agreements pursuant to which the Trust, on behalf of ICF or any Lessor, purchases the Transferred Assets.

Section 523. Value Given.

ICF shall have given reasonably equivalent value in consideration for the transfer to the Trust of the Transferred Assets acquired by the Trust, no such transfer shall have been made for or on account of an antecedent debt, and no such transfer is or may be voidable or subject to avoidance under any section of the Bankruptcy Code.

Section 524. Security Interest.

ICF has granted a first priority security interest (as defined in the UCC) to the ICF Indenture Trustee, in the ICF Collateral being pledged by it hereunder, which is enforceable in accordance with applicable law upon execution and delivery of this Indenture and ICF acquiring an interest in such ICF Collateral. All filings (including, without limitation, UCC filings) as are necessary or appropriate in any jurisdiction to perfect a first priority security interest in the ICF Collateral being pledged under this Indenture to the ICF Indenture Trustee, have been made or fully executed copies of all such filings have been delivered to the ICF Indenture Trustee.

Section 525. Accuracy of Representations and Warranties.

Each representation and warranty made by it contained herein or in any ICF Relevant Document or in any certificate or other document furnished by it pursuant hereto or to any ICF Relevant Document or in connection herewith or therewith is true and correct in all material respects.

Section 526. Offer and Sale.

Neither ICF nor, to the best of ICF’s knowledge, any Person acting on its behalf has offered to sell the ICF Note(s) by any form of general solicitation or general advertising. Neither ICF nor, to the best of ICF’s knowledge, any Person acting on its behalf has offered or sold the ICF Note(s) or other similar security in any manner that would render the issuance and sale of the ICF Note(s) a violation of the Securities Act, or require registration pursuant thereto, nor has it authorized nor will it authorize any person to act in such manner.

Section 527. Master List.

The Master List and each supplement thereto or amendment thereof will be made available to the ICF Indenture Trustee by ICF upon two (2) Business Days prior request to ICF by the ICF Indenture Trustee and will include an accurate (in all material respects) description of the Contracts and the Equipment acquired by the Trust.

 

 

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Section 528. Representations, Warranties and Agreements on Behalf of the Trust. 

(a) The representations and warranties of the Trust contained in the Trust Agreement are hereby incorporated herein by reference and made by ICF, as Initial Beneficiary of the Trust, for the benefit of the parties hereto, with the same force and effect as if such representations and warranties were set forth herein in full.

(b) ICF, as Initial Beneficiary of the Trust, hereby represents, warrants and agrees that:

(i) Title. Each Trust Asset is owned by the Trust free and clear of any Lien (other than Permitted Liens) and each Trust Asset is allocated to the UTI or a SUBI of the Trust. No effective financing statement or similar instrument is in effect or covers any Transferred Asset or any interest therein, except for any financing statement or similar instrument filed in favor of the ICF Indenture Trustee for the benefit of each Lessor and the ICF Noteholders or as permitted by the ICF Relevant Documents.

(ii) Proceedings. There is no order, judgment, decree, injunction, stipulation or consent order of or with any court or other Governmental Authority to which the Trust is subject, and there is no action, suit, proceeding, arbitration, proceeding or investigation pending or, to the knowledge of ICF or the Trust, threatened before or by any Governmental Authority against the Trust that individually or in the aggregate is reasonably likely to have a Material Adverse Effect on the Trust.

(iii) Serviced Collateral. Each item of property included in the calculation of ICF Asset Base exists and each item of Equipment is Eligible Equipment.

(iv) Canadian Equipment. The Trust has taken all actions necessary or appropriate to register, maintain and/or evidence the Trust’s ownership of all Equipment located in Canada (including, without limitation, complying with Applicable Laws regarding Certificates of Title) and will complete all such additional actions within thirty (30) days after first being aware of such actions.

(v) Investment Company Act. The Trust is not an “investment company” or a company controlled by an “investment company” within the meaning of the Investment Company Act of 1940, as amended from time to time.

(vi) Accuracy of Representations and Warranties. Each representation and warranty made by the Trust contained herein or in any ICF Relevant Document or in any certificate or other document furnished by it pursuant hereto or to any ICF Relevant Document or in connection herewith or therewith is true and correct in all material respects.

(vii) Tax Treatment. The Trust will treat the transfer of any Transferred Assets by TLI to the Trust on each Transfer Date pursuant to the TLI Transfer Agreement as a valid sale of such Transferred Assets for all applicable income tax purposes.

 

 

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Section 529. Accuracy of Representations and Warranties.

Each representation and warranty made by ICF contained in this Indenture or in any ICF Relevant Document or in any certificate or other document furnished by it pursuant hereto or to any ICF Relevant Document or in connection herewith or therewith is true and correct in all material respects.

ARTICLE VI

ADDITIONAL COVENANTS

For so long as any ICF Secured Obligation under this Indenture or any ICF Related Document that has not been paid and/or performed or any ICF Note is Outstanding, ICF as to itself and on behalf of the Trust hereby represents, warrants and covenants that:

Section 601. Payment of Principal and Interest; Payment of Taxes.

(a) ICF will duly and punctually pay the principal of and interest on the ICF Notes in accordance with the terms of the ICF Notes and this Indenture; provided that any breach of this covenant with respect to the timely payment of interest shall not constitute an ICF Event of Default (even after giving effect to any grace period), as long as any unpaid ICF Note Senior Interest and Fees is applied to increase the Outstanding amount payable under the ICF Notes and any unpaid ICF Note Junior Interest and Fees is applied to increase the Outstanding amount payable under the ICF Notes and, in any event any and all such amounts are paid on or before the related ICF Legal Maturity Date.

(b) ICF will take all actions necessary to insure that all taxes and governmental claims, if any, in respect of ICF’s activities and assets are promptly paid.

Section 602. Maintenance of Office. 

The chief executive office of ICF is located at 211 College Road East, Suite A1, Princeton, New Jersey 08540. ICF shall not establish a new location for its chief executive office or organize under the laws of another jurisdiction unless (i) it shall have given to each of the ICF Indenture Trustee, the ICI Indenture Trustee, each ICF Noteholder, each Rating Agency, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor, each Series Enhancer, each Lessor Note Enhancer and each Lease Enhancer not less than sixty (60) days’ prior written notice of its intention so to do, clearly describing such new location and/or jurisdiction of organization, and providing such other information in connection therewith as the ICF Indenture Trustee, any ICF Noteholder, the Administrative Agent, the Servicer, any
ICF Noteholder, any Lessor or any Lease Enhancer may reasonably request, and (ii) not less than fifteen (15) days prior to the effective date of such change of location and/or jurisdiction of organization, it shall have taken at its own cost all action necessary so that such change of location and/or jurisdiction of organization, does not impair the security interest of the ICF Indenture Trustee in the ICF Collateral, the precautionary security interest Granted to any Lessor under the related Lease, the assignment or transfer of a SUBI to the related Lessor or the sale or transfer of the Transferred Assets to the Trust and the

 

 

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pledge of the ICF Collateral to the ICF Indenture Trustee, and shall have delivered to the ICF Indenture Trustee, the ICI Indenture Trustee, each ICF Noteholder, the Servicer, the Administrative Agent, each ICF Noteholder, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor, each Series Enhancer, each Lessor Note Enhancer and each Lease Enhancer copies of all filings (including, without limitation, UCC filings) required in connection therewith, together with an Opinion of Counsel, satisfactory to the ICF Indenture Trustee, the Servicer, the Administrative Agent, each ICF Noteholder, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor, each Owner Participant and each Lease Enhancer, to the effect that such change of location does not impair (1) either the perfection or priority of the ICF Indenture Trustee’s security
interest in the ICF Collateral or a Lessor’s interest in the related SUBI and (2) the Trust’s title of the Transferred Assets or a Lessor’s title to the related SUBI.

Section 603. Corporate Existence.

ICF will keep in full force and effect its existence, rights and franchises as a limited liability company organized under the laws of the State of Delaware, and ICF shall cause the Trust to keep in full effect its existence, rights and franchises as a Delaware business trust. ICF shall, and shall cause the Trust to, obtain and preserve its qualification in each other jurisdiction in which such qualification is necessary to protect the validity and enforceability of this Indenture, any Supplements, the ICF Notes and the other ICF Relevant Documents or to permit performance thereunder.

Section 604. Protection of ICF Collateral.

ICF, as to itself and on behalf of the Trust, will from time to time execute and deliver all amendments hereto and all such financing statements, continuation statements, instruments of further assurance and other instruments, and will, upon the reasonable request of any of the Servicer, any Lease Enhancer, any Lessor, any ICF Noteholder, the Administrative Agent or the ICF Indenture Trustee, take such other action necessary or advisable to:

(a) grant more effectively the security interest in all or any portion of the ICF Collateral securing the ICF Notes;

(b) maintain or preserve the Lien of this Indenture (and the priority thereof) or carry out more effectively the purposes hereof;

(c) perfect, publish notice of, or protect the validity of the security interest in the ICF Collateral created pursuant to this Indenture;

(d) enforce any of the items of the ICF Collateral;

(e) preserve and defend its right, title and interest in, to and under the ICF Collateral and the rights of the ICF Indenture Trustee in such ICF Collateral against the claims of all Persons (other than the ICF Noteholders, the Administrative Agent, any Lease Enhancer, any Lessor, any Owner Participant, any Currency Hedge Counterparty, any Interest Rate Hedge Counterparty or any Person claiming through an ICF Noteholder, a Currency Hedge Counterparty, a Lessor, an Interest Rate Hedge Counterparty, the Administrative Agent or a

 

 

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Lease Enhancer); or pay any and all taxes levied or assessed upon all or any part of the ICF Collateral;

(f) periodically (but no less frequently than annually) determine whether any other actions may be taken to register, maintain and/or evidence the Trust’s ownership of Equipment located in Canada (including, without limitation, complying with Applicable Laws regarding Certificates of Title) and complete all such additional actions within thirty (30) days after first being aware of such actions.

Section 605. Performance of Obligations.

ICF, as to itself and on behalf of the Trust, will not take or fail to take, any action, and ICF will use its best efforts not to permit any action to be taken by others, which would release any Person from any of such Person’s covenants or obligations under any agreement or instrument included in the ICF Collateral, or which would result in the amendment, hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness of, any such agreement or instrument, except as expressly permitted in the ICF Relevant Documents.

Section 606. Negative Covenants. 

ICF shall not, and shall not permit the Trust to, in each instance, without the prior written consent of the ICF Global Requisite Majority and the ICI Indenture Trustee, each Lessor, each Owner Participant, each Lease Enhancer, each Currency Hedge Counterparty, each Series Enhancer, each Lessor Note Enhancer, each Interest Rate Hedge Counterparty and/or the Administrative Agent, if any such Person will be adversely affected by any such waiver:

(a) sell, transfer, exchange or otherwise dispose, or cause the sale, transfer, exchange or other disposition, of any of the ICF Collateral, including, without limitation, its beneficial interest in any SUBI Asset subject to the lien of this Indenture, except in connection with a sale permitted by Sections 612 or 817 hereof or as otherwise expressly permitted by this Indenture or any other ICF Relevant Document;

(b) claim any credit on, make any deduction from the principal, premium, if any, or interest payable in respect of the ICF Notes (other than amounts properly withheld from such payments under any applicable law) or assert any claim against any present or former ICF Noteholder by reason of the payment of any taxes levied or assessed upon any of the ICF Collateral;

(c) (i) permit the validity or effectiveness of this Indenture or any other ICF Relevant Document to be impaired, (ii) permit the Lien of this Indenture with respect to the ICF Collateral to be subordinated, terminated or discharged, except as permitted in accordance with Article VII hereof, or (iii) permit any Person to be released from any covenants or obligations with respect to the ICF Collateral or any other ICF Relevant Document, except as may be expressly permitted by this Indenture or any other ICF Relevant Document;

(d) permit any Lien, other than Permitted Liens with respect to beneficially owned items described in the Grant clause of this Indenture, to be created on or extend to or

 

 

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otherwise arise upon or burden the ICF Collateral or any part thereof or any interest therein or the proceeds thereof;

(e) permit the Lien of this Indenture not to constitute a valid first-priority perfected security interest in the ICF Collateral;

(f) be a party to any transaction with any of its Affiliates, except (i) the transactions expressly permitted or contemplated by the ICF Relevant Documents, and (ii) other transactions (A) in the ordinary course of business, (B) pursuant to the reasonable requirements of such business, and (C) upon fair and reasonable terms that are no less favorable to it than could be obtained in a comparable arm’s-length transaction with a Person not an Affiliate;

(g) with respect to ICF and not the Trust, except as expressly permitted or contemplated by the ICF Relevant Documents, own any subsidiary or lend or advance any monies to, or make an investment in, or make any capital contributions or expenditures in or related to any Person without the prior written consent of the Administrative Agent, each Enhancer, each Lessor, the ICF Noteholders, each Interest Rate Hedge Counterparty, and each Currency Hedge Counterparty, provided that the transactions expressly contemplated by the ICF Relevant Documents are hereby expressly consented to by such persons;

(h) do anything to impair its interest in, to or under and other rights in, to or under any item of ICF Collateral;

(i) consent to the extension or amendment of the terms of any Contract, except in accordance with the terms and conditions of the Servicing Agreement;

(j) (i) create, incur or suffer to exist, or agree to create, incur or suffer to exist, or consent to cause or permit in the future (upon the happening of a contingency or otherwise) the creation, incurrence or existence of, any Lien on any ICF Collateral or beneficially owned items of ICF Collateral (whether arising by, through or under ICF or an Affiliate thereof) other than Permitted Liens on beneficially owned items of ICF Collateral, or restriction on transferability of, any SUBI Asset subjected to the Lien of this Indenture, except those created by the ICF Relevant Documents and the restrictions on transferability imposed by the Trust Agreement, the related SUBI Supplement or (ii) sign, authorize or file any Financing Statement which names ICF or the Trust, as a debtor, or sign any security agreement authorizing any secured party thereunder to file such Financing
Statement, with respect to any SUBI Asset subjected to the Lien of this Indenture or any ICF Collateral, except in each case (x) any precautionary filings by any Lessor and (y) any such instrument solely securing the rights and preserving the Lien of the ICF Indenture Trustee, for the benefit of the ICF Noteholders, the Administrative Agent, each Lease Enhancer, each Lessor, each Owner Participant, each Interest Rate Hedge Counterparty and each Currency Hedge Counterparty;

(k) except as permitted or contemplated by the ICF Relevant Documents or with the prior written consent of the Administrative Agent, each Lease Enhancer, each Lessor, each Owner Participant, the ICF Noteholders, each Interest Rate Hedge Counterparty and each Currency Hedge Counterparty, and in accordance with the terms and conditions of the Trust Agreement and the related SUBI Supplement, allocate any assets to any beneficial interest in a SUBI pledged hereunder to any other SUBI;

 

 

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(l) with respect to each Certificate pledged hereunder, except with the prior written consent of each Lease Enhancer, the related Lessor, the related Owner Participant, the Administrative Agent and the ICF Noteholders, and in accordance with the terms and conditions of the Trust Agreement, remove the related Trustee thereunder or appoint any Person to act as co-trustee;

(m) enter into any Lease not substantially in form and substance to other Leases approved by the ICI Global Requisite Majority and that satisfy the Rating Agency Condition;

(n) fail to enforce its rights, remedies and powers with respect to any breach by a Lessor under any Lease or any other Person under any Lessor Relevant Documents; or

(o) amend the ICF Operating Agreement to grant any Preferred Membership Interest or create any Preferred Membership Interest with voting rights.

Section 607. Activities of ICF.

(a) ICF shall not engage in any activities or enter into any transactions other than (i) the acquisition and disposition of a UTI Certificate, any SUBI Certificate or any other SUBI and any other item of ICF Collateral, (ii) issuing and selling the ICF Notes and pledging the ICF Collateral pursuant to this Indenture, (iii) the transactions contemplated by, and the activities expressly authorized pursuant to (or contemplated by) the terms of, each Qualified Currency Hedge, each Interest Rate Hedge Agreement, each Lease and the Servicing Agreement, (iv) the transactions contemplated by the ICF Relevant Documents and (v) engaging in any lawful act or activity and exercising any power that is incidental and is necessary and convenient to the foregoing which are permitted to limited liability companies organized under the laws of Delaware.

(b) With respect to the transactions contemplated by the ICF Relevant Documents and to the extent, and only to such extent, that ICF has the right under the ICF Relevant Documents to prohibit the Trust from taking certain actions, ICF shall not permit the Trust to engage in any activities other than such activities, and exercising such other powers, as are provided in Section 1.2 of the Trust Agreement and are necessary or appropriate to carry out the foregoing activities in accordance with the terms and conditions of the Trust Agreement and the other ICF Relevant Documents to which it is a party.

(c) In addition, ICF shall, and shall cause the Trust to (to the extent and only to the extent ICF has the right or power to require the Trust to take such action) (i) maintain its books and records separate from the books and records of any other entity, (ii) maintain separate bank accounts, (iii) except as permitted by the Lockbox Intercreditor Agreement and the other ICF Relevant Documents, not commingle its funds with those of any other Person, except for any commingling of ICF Collections with other payments received by the Servicer or ICF under any Contracts that may occur from and including the date payments on or with respect to the Contracts are received by the Servicer to and including the date such funds are segregated and deposited into the ICF Collection Account in accordance with the terms and conditions of the ICF Relevant Documents, (iv) not
engage in any action that would cause the separate legal

 

 

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identity of ICF not to be respected, including, without limitation (A) holding itself out as being liable for the debts of any other Person or (B) acting other than through its duly authorized representatives or agents, (v) manage its day-to-day business affairs without the involvement of Interpool or any of its Affiliates or subsidiaries (other than with respect to Interpool in its capacity as Servicer or TLI in its capacity as subservicer), (vi) maintain a separate office from that of Interpool and any other Affiliate or subsidiary of Interpool (which office may be at the same address provided that ICF and Interpool or such Affiliate or subsidiary of Interpool (as the case may be) have a written agreement specifying a reasonable allocation of expenses with respect to overhead and shared costs with respect to such shared premises), (vii) conduct all of its business
correspondence in its own name, (viii) not act as an agent of Interpool or any Affiliate or subsidiary of Interpool, (ix) maintain at all times, in the case of ICF, one independent member (as provided in its operating agreement), (x) maintain adequate capitalization in light of its business purposes and (xi) conduct all of its business (whether written or oral) solely in its own name.

(d) ICF further covenants that (i) the consolidated financial statements of Interpool and ICF reflect the separate corporate existence of ICF, (ii) no Affiliate or subsidiary of Interpool pays ICF’s or the Trust’s expenses, guarantees ICF’s or the Trust’s obligations or advances funds to ICF for payment of expenses and (iii) none of Interpool and its Affiliates and subsidiaries acts as an agent of ICF or the Trust, except Interpool in its capacity as Servicer or TLI as subservicer.

Section 608. No Bankruptcy Petition. 

ICF shall not, and shall cause the Trust not to, (1) commence any case, proceeding or other action under any existing or future bankruptcy, insolvency or similar law seeking to have an order for relief entered with respect to it, each other, any Lessor or ICI, or seeking reorganization, arrangement, adjustment, wind-up, liquidation, dissolution, composition or other relief with respect to it, each other, any Lessor or ICI, or its, their, a Lessor’s or ICI’s debts, (2) seek appointment of a receiver, trustee, custodian or other similar official for itself, the Trust, a Lessor or ICI or any part of their assets, (3) make a general assignment for the benefit of creditors, or (4) take any action in furtherance of, or consenting or acquiescing in, any of the foregoing.

Section 609. Liens.

ICF shall not, and shall cause the Trust to not, (i) contract for, create, incur, assume or suffer to exist any Lien upon any of the ICF Collateral or assets, whether now owned or hereafter acquired except for any Permitted Liens on beneficially owned items of ICF Collateral or (ii) permit the Lien of this Indenture to not constitute a valid first priority perfected security interest in the ICF Collateral.

Section 610. Other Debt and Other Interest Rate Hedge Agreements.

ICF shall not contract for, create, incur, assume or suffer to exist any Indebtedness other than Indebtedness arising from (1) the ICF Notes issued pursuant to this Indenture, (2) any Qualified Currency Hedge entered into in accordance with Section 634, (3) any Interest Rate Hedge Agreement entered into in accordance with Section 635, (4) any Servicing Fees payable

 

 

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pursuant to the provisions of the Servicing Agreement, (5) any Lease, (6) the ICI Swap, (7) the other ICF Relevant Documents, or (8) trade payables and expense accruals incurred in the ordinary course which are incidental to the purposes permitted pursuant to the ICF Relevant Documents.

Section 611. Guarantees, Loans, Advances and Other Liabilities.

Except for any Permitted ICI Loan, ICF shall not make any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having the effect of assuring another’s payment or performance on any obligation or capability of so doing, or otherwise), endorse (except for the endorsement of checks for collection or deposit) or otherwise become contingently liable, directly or indirectly, in connection with the obligations, stock or dividends of, or own, purchase, repurchase or acquire (or agree contingently to do so) any stock, obligations or securities of, or any other interest in, or make any capital contribution to, any other Person.

Section 612. Consolidation, Merger and Sale of Assets.

(a) ICF shall not consolidate with or merge with or into any other Person or sell, convey or transfer to any Person all or any part of the ICF Collateral or all or substantially all of its assets, except for any such sale, conveyance or transfer expressly permitted by this Indenture, whether in a single transaction or a series of transactions.

(b) The obligations of ICF hereunder shall not be assignable and no Person shall succeed to the obligations of ICF hereunder except in each case in accordance with the provisions of this Indenture.

Section 613. Other Agreements.

ICF shall not, after the date of the issuance of the ICF Notes, enter into or become a party to any agreements or instruments other than this Indenture, a Qualified Currency Hedge, an Interest Rate Hedge Agreement, the ICI Swap, each Lease, the Servicing Agreement or any other agreement(s) contemplated or permitted by this Indenture or any other ICF Relevant Document, including, without limitation, any agreement(s) for disposition of the ICF Collateral as permitted by Sections 612, 804 or 817 hereof. In addition, ICF shall not amend, modify or waive any provision of this Indenture, any Supplement, any Qualified Currency Hedge, any Interest Rate Hedge Agreement, the ICI Swap, the Servicing Agreement or any other ICF Relevant Document to which it is a party or give any approval or consent or permission provided for therein without the prior written consent of the
requisite Persons set forth in the applicable agreement. ICF shall not permit the Trust to amend, modify or waive any provision of any ICF Relevant Document to which it is a party or give any approval or consent or permission provided for therein without the prior written consent of the ICF Global Requisite Majority, the requisite Persons set forth in the applicable agreement and any party to the ICI Relevant Documents that would be adversely affected by any such approval, consent or permission.

 

 

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Section 614. Amendments to Certain Documents.

ICF shall not (a) amend or modify its organizational documents without the unanimous vote of all of its members (including its independent member) or permit the amendment or modification of the Trust Agreement without the prior written consent of the parties thereto in accordance with the terms thereof, or (b) amend, supplement or otherwise modify, or permit any amendment, supplement or modification to, or grant any consent or waiver under, any ICF Relevant Document to which it or the Trust is a party except in accordance with the terms thereof and hereof.

Section 615. Capital Expenditures.

Except as authorized by any ICF Relevant Document, ICF shall not make any expenditure (by long-term or operating lease or otherwise) for capital assets (both realty and personalty).

Section 616. Other Activities.

ICF will not engage in any activity or enter into any transaction other than those activities as are expressly authorized pursuant to, or contemplated by, the terms of the ICF Relevant Documents.

Section 617. Compliance with Laws.

ICF will comply, in all material respects, with all laws, acts, rules, regulations, orders, decrees and directions of any Governmental Authority applicable to the ICF Collateral or any part thereof. ICF will comply, and will cause the Trust to comply, in all material respects, with all applicable requirements of laws, acts, rules, regulations, orders, decrees and directions of any Governmental Authority. ICF is not an investment company which is required to register under the Investment Company Act of 1940, as amended from time to time. From and after the first acquisition by the Trust of any Trust Assets, each of the Trust and ICF will have all licenses, permits and other governmental authorizations that are necessary for the Trust to acquire, own and lease the Trust Assets and for ICF to hold the Trust Assets in the SUBI Portfolio, the beneficial interest in which has been
pledged hereunder, and to conduct its business as contemplated in the ICF Relevant Documents.

Section 618. Investment Company Act. 

At no time shall ICF take any action that could make ICF subject to the Investment Company Act of 1940, as amended from time to time.

Section 619. Payments of ICF Collateral.

If either ICF or the Trust shall receive from any Person any payments with respect to the ICF Collateral or the SUBI Assets subjected to the Lien of this Indenture, ICF or the Trust, as the case may be, shall receive such payment in trust for the ICF Indenture Trustee, as secured party hereunder, and, subject to the ICF Indenture Trustee’s security interest, shall immediately deposit such payment in the ICF Collection Account.

 

 

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Section 620. Reserved.

Section 621. Indemnification. 

In addition to any other indemnification obligations under the ICF Relevant Documents, ICF agrees to indemnify, defend and hold harmless the ICF Noteholders, the Administrative Agent, each Lease Enhancer, each Series Enhancer, each Lessor, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, the ICF Indenture Trustee, the ICI Indenture Trustee and each of their respective Affiliates, together with their respective successors and permitted assigns, forthwith on demand, from and against any and all loss, liability, damage, judgment, claim, deficiency, tax or expense (including, without limitation, interest, penalties, taxes, environmental claims, increased costs, reasonable attorneys’ fees and amounts paid in settlement) and for all other amounts payable, awarded against or incurred by any of them arising out of or as a result of a breach by ICF of any of
the terms and conditions of this Indenture or the acquisition either directly or indirectly of an interest in the ICF Collateral or in respect of any ICF Collateral except for any loss, liability, damage, judgment, claim, deficiency, tax or expense arising as a result of such indemnified person’s gross negligence or willful misconduct. The obligations of ICF under this Section 621 shall be considered to have been relied upon by the ICF Noteholders, the Administrative Agent, each Lease Enhancer, each (direct or indirect) beneficiary of the security interest in favor of each Indenture Trustee, each Lessor, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty and each Indenture Trustee and shall survive the execution, delivery, and performance of this Indenture regardless of any investigation made by the ICF Noteholders, the Administrative Agent, such Lease Enhancer, such Lessor, such Interest Rate Hedge Counterparty or such Currency Hedge Counterparty, or on
their behalf.

Section 622. Books and Records; Insurance.

ICF shall, and shall cause the Servicer and the Trust to, maintain complete and accurate books and records in which full and correct entries in conformity with GAAP shall be made of all dealings and transactions in relation to its business and activities. ICF will cause the Trust to require each User to maintain the insurance required in the related Contract (each such Contract to be substantially in the form of Exhibit A to the Transfer Agreement) and review each such insurance policy to ensure that it comports with the terms of such Contract and the Servicing Standard, including, but not limited to, causing the User on each renewal date of its insurance policy to name the Trust as a loss payee and an additional insured under such insurance policy and requiring that the insurer under such insurance policy notify the ICF Indenture Trustee and the Trust of any renewal,
cancellation, termination or material alteration thereunder; provided that a User listed on Schedule 1 of the Servicing Agreement may be self-insured with regard to the liability insurance and casualty insurance required under the Contract for so long as ICF causes the Servicer to notify the ICF Indenture Trustee and the Trust that such User is self-insured and such User maintains an Investment Grade Rating with respect to its long-term unsecured debt obligations from both Rating Agencies.

 

 

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Section 623. Taxes.

ICF shall, or shall cause the Servicer to, pay when due, all of ICF’s taxes, unless, and only to the extent that, ICF is contesting such taxes in good faith and by appropriate proceedings and ICF has set aside on its books such reserves or other appropriate provisions therefor as may be required by GAAP.

Section 624. Subsidiaries.

ICF shall not create any direct or indirect subsidiaries or otherwise acquire any equity interests in any other Person other than pursuant to the ICF Relevant Documents without the prior written consent of the ICF Indenture Trustee (acting at the written direction of the ICF Global Requisite Majority).

Section 625. Investments.

ICF shall not make or permit to exist any Investment in any Person except for Investments in Eligible Investments made in accordance with the terms of this Indenture, or any UTI Certificate or any SUBI Certificate pursuant to the Trust Agreement.

Section 626. Use of Proceeds; Margin Regulations.

ICF shall use the proceeds of the ICF Notes only for (i) the acquisition of ICF Collateral, (ii) to fund capital contributions to the Trust in connection with the acquisition of any ICF Collateral, and (iii) other general corporate purposes in furtherance of and subject to the terms and conditions of this Indenture and the other ICF Relevant Documents. In addition, neither ICF nor the Trust shall permit any proceeds of the ICF Notes to be used, either directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of “purchasing or carrying any margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System, as amended from time to time, or for a purpose that violates, or would be inconsistent with, Regulations T, U and X promulgated by the Board of Governors of the Federal
Reserve System, as amended from time to time, and shall furnish to each ICF Holder, upon its request, a statement in conformity with the requirements of such regulations.

Section 627. ICF Asset Base Certificate.

ICF shall prepare and deliver to the ICF Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor, each Lease Enhancer, each Series Enhancer, each Lessor Note Enhancer and each ICF Noteholder on each Transfer Date and on each Determination Date, an ICF Asset Base Certificate with respect to all of the ICF Collateral; provided that ICF may cause the Servicer to deliver such ICF Asset Base Certificate simultaneously with the Servicer’s delivery of the Servicer Report.

Section 628. Notices and Reports.

ICF shall prepare and deliver to the ICF Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge

 

 

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Counterparty, each Lessor, each Lease Enhancer, each Series Enhancer, each Lessor Note Enhancer, each ICF Noteholder (if requested) and each Rating Agency (if any), or shall cause the Servicer and Interpool to prepare and deliver pursuant to the Servicing Agreement (provided that to the extent any Person serves in multiple capacities hereunder, it shall only be entitled to one copy of the following):

(a) Financial Statements. (i) (A) quarterly unaudited financial statements of ICF, Interpool and the Servicer within 60 days of the end of each fiscal quarter and (B) annual audited financial statements of Interpool and the Servicer, audited by their regular Independent Accountants, within 120 days of the end of each fiscal year ending on and after December 31, 2002, (ii) two copies of (A) audited consolidated and consolidating balance sheets of Interpool and its consolidated subsidiaries, at the end of each fiscal year ending on and after December 31, 2002, within 120 days of the end of each fiscal year ending on and after December 31, 2002, and (B) audited consolidated and consolidating statements of income, retained earnings and cash
flows of Interpool and its consolidated subsidiaries for each fiscal year ending on and after December 31, 2002, within 120 days of the end of each fiscal year ending on and after December 31, 2002, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and, in the case of the financial statement referred to in clause (ii) above, accompanied by an opinion of a firm of Independent Accountants, stating that such financial statements present fairly the financial condition of Interpool and its consolidated subsidiaries and have been prepared in accordance with GAAP (except for changes in application in which such accountants concur and footnote), and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards. All financial statements described in this Section 628 shall be prepared in accordance with
GAAP;

(b) Notice of Default. Immediately upon becoming aware of the existence of any condition or event which constitutes an Amortization Event, a Servicer Default, an ICF Event of Default, an ICI Event of Default, an event of default under a Lease, or a Lessor Event of Default or which, with notice and lapse of time, would become an Amortization Event, a Servicer Default, ICF Event of Default, an ICI Event of Default, an event of default under a Lease, or a Lessor Event of Default, a written notice describing its nature and period of existence and what action the Servicer, ICF or the defaulting Lessor is taking or proposes to take with respect thereto;

(c) SEC and Other Reports. Promptly upon their becoming available, one copy of each report (including the Servicer’s annual report to shareholders and reports on Form 10-K and 10-Q), definitive proxy statement, registration statement (upon it becoming effective), definitive prospectus and notices of Interpool filed with or delivered to any securities exchange or the Securities and Exchange Commission or any successor agency; provided that, unless requested by any of the Persons entitled to notices and reports under this Section 628 or any other ICI Relevant Document, ICF shall not be required to deliver any such reports, statements, prospectuses or notices;

(d) Report on Proceedings. Promptly upon ICF becoming aware of:

(i) any threatened or pending investigation of it or the Trust by any Governmental Authority or agency, or 

 

 

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(ii) any threatened or pending court or administrative Proceeding or the institution of any litigation, arbitration proceeding or other Proceeding which individually or in the aggregate involves the possibility of materially and adversely affecting the ICF Collateral (including, without limitation, the value of the ICF Collateral or the ICF Indenture Trustee’s first priority perfected security interest in the ICF Collateral) or the business or conditions (financial or otherwise) of the Servicer, ICF, a Lessor or the Trust, a written notice specifying the nature of such investigation or proceeding and what action the Servicer, ICF, a Lessor or the Trust, as the case may be, is taking or proposes to take with respect thereto and evaluating its merits; and

(e) Material Adverse Change. Upon ICF’s knowledge of the occurrence of a material adverse change in respect of ICF or the Trust, the value of or the ICF Indenture Trustee’s security interest in the ICF Collateral, any ICF Note, any ICF Relevant Document or any interests of any ICF Noteholder, any Lease Enhancer, any Lessor, any Currency Hedge Counterparty or any Interest Rate Hedge Counterparty in the transactions contemplated by the ICF Notes and the ICF Relevant Documents, ICF shall provide a written notice describing its nature and period of existence and the steps being taken by ICF, the Trust and/or the Servicer (as the case may be).

Section 629. Trade Names.

Neither ICF nor the Trust shall use any trade name other than its actual name.

Section 630. Independent Member.

ICF shall at all times have at least one member who shall not be, nor have been, a director of any “Affiliate” of ICF except as described below or an officer of, be employed by, be a creditor, supplier or contractor of, or hold any beneficial or economic interest in ICF or any “Affiliate” of ICF or any member of the Interpool Group, or be a family member of any of the foregoing. As used in the preceding sentence, “Affiliate” shall mean any entity other than ICF (i) which owns beneficially, directly or indirectly, 10% or more of the beneficial interests of ICF; or (ii) of which 10% or more of its common stock or other beneficial interest is owned beneficially, directly or indirectly, by any entity described in clause (i) above, or (iii) which is “controlled”, as defined in Section 230.405 of the Rules and
Regulations of the Securities and Exchange Commission, 17 C.F.R. Section 230.405, by an entity described in clause (i) above. Upon the earlier of ICF’s or the Servicer’s knowledge of any resignation, removal or incapacity of any such member, ICF and/or the Servicer shall promptly (but in no event later than five (5) days after such knowledge) notify each of the Administrative Agent, each Enhancer, each Indenture Trustee, the ICF Control Party, each Lessor Control Party, each ICI Control Party, each Lessor, each Currency Hedge Counterparty and each Interest Rate Hedge Counterparty of such resignation, removal or incapacity. Within thirty (30) days of ICF’s or the Servicer’s knowledge of such resignation, removal or incapacity, ICF shall appoint an independent member in accordance with this Section 630 and the ICF Operating Agreement.

Section 631. Insolvency. 

Each of ICF and the Trust is paying its debts as they become due and, after giving effect to the transactions contemplated hereby, will have adequate capital to conduct its business.

 

 

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Section 632. Membership Interests.

All of the membership interests of ICF are, and shall be, validly issued and owned (beneficially and of record) by Interpool and, with respect to the non-economic membership interest, by the Non-Managing Members (as defined in the ICF Operating Agreement) and with respect to any Preferred Membership Interest (if any), free and clear of any Lien. ICF shall not issue any membership interests (including any Preferred Membership Interests) to any Person without the prior written consent of the ICF Global Requisite Majority.

Section 633. Security Interest.

ICF and the Trust shall direct the Servicer, at its expense, to take all action necessary or desirable to establish and maintain in favor of the ICF Indenture Trustee, on behalf of the ICF Noteholders, the Administrative Agent, the Lease Enhancers, the Lessors, the Interest Rate Hedge Counterparties, and the Currency Hedge Counterparties, a valid and enforceable first priority perfected security interest in, to and under (a) each SUBI and SUBI Certificate subject to the Lien of this Indenture, (b) all ICF Collections with respect to the SUBI Assets subjected to the Lien of this Indenture, (c) the ICF Collection Account, the ICF Cash Collateral Account, the ICF Deposit Account, the Casualty Account and each other ICF Securities Account established in accordance with this Indenture, (d) all other ICF Collateral and (e) all income, payments and proceeds
of, and all amounts received or receivable under any and all of, the foregoing, free and clear of any Lien (other than Permitted Liens on beneficially owned items of ICF Collateral), including, without limitation, filing UCC financing statements and taking such other action to perfect, protect or more fully evidence the lien of this Indenture, as supplemented from time to time, by the ICF Indenture Trustee on behalf of the Administrative Agent, the ICF Noteholders, the Lease Enhancers, the Lessors, the Interest Rate Hedge Counterparties, and the Currency Hedge Counterparties, as requested from time to time. ICF shall not, and shall not permit the Trust or the Servicer to, record any lien on any Certificate of Title for a Trust Asset that is a SUBI Asset subject to the lien hereof, except the lien of this Indenture (unless such Trust Asset has been released from the lien of this Indenture in accordance with the terms and conditions of the ICF Relevant Documents).

Section 634. Qualified Currency Hedge.

(a) Neither ICF nor the Trust may enter into any Contract for which Contract Payments are payable in a currency other than Dollars unless (i) no more than ten percent (10%) of all items of Equipment allocated in the aggregate to a SUBI pledged hereunder or under a Lessor Indenture is subject to a Contract that is payable in Canadian dollars and (ii) ICF or the Trust shall have entered into a Qualified Currency Hedge. As additional security hereunder, ICF hereby assigns to the ICF Indenture Trustee all right, title and interest of ICF under each Qualified Currency Hedge, including, but not limited to, all present and future amounts payable by an Currency Hedge Counterparty to ICF under or in connection with such Qualified Currency Hedge. ICF acknowledges that, as a result of such assignment, ICF may not, without the prior written consent of the ICF Indenture Trustee
(acting at the written direction of the ICF Global Requisite Majority), exercise any rights under any Qualified Currency Hedge that would materially adversely affect the rights of the secured parties hereunder, as assignee of ICF’s rights under such Qualified Currency Hedge; provided that nothing herein shall have the

 

 

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effect of releasing ICF from any of its obligations under a Qualified Currency Hedge nor be construed as requiring the consent of the ICF Indenture Trustee, any Lease Enhancer, any Lessor, any Owner Participant, any Interest Rate Hedge Counterparty, any ICF Noteholder or any secured party or third party beneficiary hereunder for the performance of ICF’s obligations thereunder.

(b) Each transaction arising from a Qualified Currency Hedge shall, with respect to each Advance, at all times be entered into with an Eligible Currency Hedge Counterparty and governed by a Qualified Currency Hedge. Each Qualified Currency Hedge shall provide that if the Currency Hedge Counterparty or any party providing credit support on its behalf suffers a Currency Hedge Counterparty Minimum Rating Downgrade Event, the Currency Hedge Counterparty will be required to post, within ten (10) Business Days of such Currency Hedge Counterparty Minimum Rating Downgrade Event, collateral set forth in any Qualified Currency Hedge and such Eligible Currency Hedge Counterparty may transfer (at its own cost) all of its rights and obligations under its Qualified Currency Hedge to an Eligible Currency Hedge Counterparty in accordance with the terms of its Qualified Currency Hedge
within 60 days after the occurrence of the Currency Hedge Counterparty Minimum Rating Downgrade Event. Each Qualified Currency Hedge shall also provide that if the Currency Hedge Counterparty or any party providing credit support on its behalf suffers a Currency Hedge Counterparty Required Rating Downgrade Event, the Currency Hedge Counterparty will be required to transfer (at its own cost) all of its rights and obligations under its Qualified Currency Hedge to an Eligible Currency Hedge Counterparty not later than 60 days after the occurrence of the Currency Hedge Counterparty Required Rating Downgrade Event. ICF shall have the right to terminate the Qualified Currency Hedge and simultaneously enter into a replacement Qualified Currency Hedge in the event the Currency Hedge Counterparty fails to post collateral or transfer its rights and interests under the Qualified Currency Hedge in accordance with the terms of the Qualified Currency Hedge.

(c) Only Contracts where Contract Payments made by the User are in Canadian dollars may be subject to a Qualified Currency Hedge. No Qualified Currency Hedge may be entered into unless it is supported by Contract Payments made in Canadian dollars by a User under the related Contract. If there is a mismatch between the amount paid under a Contract and the amount to be paid under a Qualified Currency Hedge, then ICF may cure any such mismatch by entering into a Qualified Currency Hedge for the amount of such mismatch. In the event that ICF fails to terminate or reduce transactions as required in this Section 634, the ICF Indenture Trustee, at the written direction of the Administrative Agent, or the ICI Global Requisite Majority shall reduce the notional amounts, in whole or in part, for outstanding transactions under the relevant Qualified Currency Hedges then in effect on
a pro rata basis based on the respective Canadian notional amounts for current and remaining Calculation Periods (as defined in the related Qualified Currency Hedge) in accordance with the requirements of this Section 634.

Section 635. Interest Rate Hedge Agreement.

(a) On or prior to each Advance Date, ICF shall enter into one or more Interest Rate Hedge Transactions to hedge any floating rate obligations of ICF.

 

 

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(b) As additional security hereunder, ICF hereby assigns to the ICF Indenture Trustee all right, title and interest of ICF under each Interest Rate Hedge Agreement, including, but not limited to, all present and future amounts payable by an Interest Rate Hedge Counterparty to ICF under or in connection with such Interest Rate Hedge Agreement. ICF acknowledges that, as a result of such assignment, ICF may not, without the prior written consent of the ICF Indenture Trustee (acting at the written direction of the ICF Global Requisite Majority), exercise any rights under any Interest Rate Hedge Agreement that would materially adversely affect the rights of the secured parties hereunder, as assignee of ICF’s rights under such Interest Rate Hedge Agreement; provided that nothing herein shall have the
effect of releasing ICF from any of its obligations under an Interest Rate Hedge Agreement nor be construed as requiring the consent of the ICF Indenture Trustee, any ICF Noteholder, any Lease Enhancer, any Lessor, Owner Participant, any Currency Hedge Counterparty or any other secured party or third party beneficiary hereunder for the performance of ICF’s obligations thereunder.

(c) Except for the ICI Swap, ICF shall enter into each Interest Rate Hedge Agreement only with an Eligible Interest Rate Hedge Counterparty. Each Interest Rate Hedge Agreement shall provide that if the Interest Rate Hedge Counterparty or any party providing credit support on its behalf suffers an Interest Rate Hedge Counterparty Minimum Rating Downgrade Event, the Interest Rate Hedge Counterparty will be required to post, within ten (10) Business Days of such Interest Rate Hedge Counterparty Minimum Rating Downgrade Event, collateral set forth in any Interest Rate Hedge Agreement and such Eligible Interest Rate Hedge Counterparty may transfer (at its own cost), with the cooperation of ICF and the Servicer, all of its rights and obligations under its Interest Rate Hedge Agreement to an Eligible Interest Rate Hedge Counterparty in accordance with the terms of its Interest
Rate Hedge Agreement within 60 days after the occurrence of the Interest Rate Hedge Counterparty Minimum Rating Downgrade Event. Each Interest Rate Hedge Agreement shall also provide that if the Interest Rate Hedge Counterparty or any party providing credit support on its behalf suffers an Interest Rate Hedge Counterparty Required Rating Downgrade Event, the Interest Rate Hedge Counterparty will be required to transfer (at its own cost) all of its rights and obligations under its Interest Rate Hedge Agreement to an Eligible Interest Rate Hedge Counterparty not later than 60 days after the occurrence of the Interest Rate Hedge Counterparty Required Rating Downgrade Event. ICF shall have the right to terminate the Interest Rate Hedge Agreement and simultaneously enter into a replacement Interest Rate Hedge Agreement in the event the Interest Rate Hedge Counterparty fails to post collateral or transfer its rights and interests under the Interest Rate Hedge Agreement in
accordance with the terms of the Interest Rate Hedge Agreement.

(d) The ICF Indenture Trustee shall, promptly after the Closing Date, establish a single segregated trust account (with separate subaccounts for each financial institution acting as an Interest Rate Hedge Counterparty or a Currency Hedge Counterparty) in the name of the ICF Indenture Trustee (the “Counterparty Collateral Account”), which shall be held in trust in the name of the ICF Indenture Trustee for the benefit of the secured parties under this Indenture and over which the ICF Indenture Trustee shall have exclusive control and the sole right of withdrawal. Notwithstanding anything to the contrary in this section, investment earnings on amounts held in the Counterparty Collateral Account shall be remitted to the applicable Interest Rate Hedge Counterparty or Currency Hedge Counterparty
upon its written request and its representation that the request is in accordance with the terms of the

 

 

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applicable Interest Rate Hedge Agreement or Qualified Currency Hedge. The ICF Indenture Trustee shall deposit all collateral received from an Interest Rate Hedge Counterparty or Currency Hedge Counterparty under an Interest Rate Hedge Agreement or Qualified Currency Hedge in the Counterparty Collateral Account. Any and all funds at any time on deposit in, or otherwise held to the credit of, the Counterparty Collateral Account shall be held in trust by the ICF Indenture Trustee for the benefit of the secured parties under this Indenture. The only permitted withdrawal from or application of funds on deposit in, or otherwise to the credit of the Counterparty Collateral Account shall be (i) for application to obligations of the applicable Interest Hedge Counterparty to ICF under its Interest Rate Hedge Agreement if such Interest Rate Hedge Agreement becomes subject to early termination,
(ii) for application to obligations of the applicable Currency Hedge Counterparty to ICF under its Qualified Currency Hedge if such Qualified Currency Hedge becomes subject to early termination, or (iii) to return collateral or investment earnings to such Interest Rate Hedge Counterparty or Currency Hedge Counterparty when and as required by such Interest Rate Hedge Agreement or Qualified Currency Hedge (as the case may be).

(e) ICF agrees that at no time during the term of this Indenture, without the consent of the ICI Global Requisite Majority and each Interest Rate Hedge Counterparty, and subject to the Rating Agency Condition, (x) will ICF enter into any transaction under any Interest Rate Hedge Agreement such that the aggregate notional amounts for (i) then current Calculation Period (as defined in the related Interest Rate Hedge Agreements) for all outstanding transactions under all Interest Rate Hedge Agreements then in effect would exceed the aggregate outstanding principal balance of all Floating Rate ICI Notes by more than five per cent (5%), and (ii) all future Calculation Periods (as defined in the related Interest Rate Hedge Agreement) for all outstanding transactions under all Interest Rate Hedge Agreements then in effect would exceed the ICI Minimum Targeted Principal
Balance of all Floating Rate ICI Notes; and (y) will the aggregate notional amount for then current Calculation Period of all outstanding transactions under all Interest Rate Hedge Agreements then in effect exceed the aggregate outstanding principal balance of all Floating Rate ICI Notes by more than five per cent (5%), after giving effect to payments made on the Floating Rate ICI Notes on the related Payment Date. So long as no Amortization Event or ICI Event of Default is then continuing, ICI may exercise its discretion in selecting the specific transactions and notional amounts thereof to be terminated or reduced. If an Amortization Event or an ICF Event of Default is then continuing, notional reduction shall be effected over all outstanding transactions under Interest Rate Hedge Agreements then in effect on a pro rata basis, based on the respective notional amounts for each current and remaining Calculation Period, so that the aggregate notional amounts for the current
Calculation Period will not exceed the aggregate outstanding principal balance of all Floating Rate ICI Notes by more than five per cent (5%) after giving effect to payments made on the Floating Rate ICI Notes on the related Payment Date and the aggregate notional amounts for all future Calculation Periods will not exceed the ICI Minimum Targeted Principal Balance of all Floating Rate ICI Notes (or in either case such greater amount as may be approved by the ICI Global Requisite Majority, each Interest Rate Hedge Counterparty and as may satisfy the Rating Agency Condition). In the event that ICF fails to terminate or reduce transactions as required in this Section 635, the ICF Indenture Trustee, at the written direction of the Administrative Agent or the ICI Global Requisite Majority, shall reduce the notional amounts, in whole or in part, for all outstanding transactions under each Interest Rate Hedge Agreement then in effect on a pro rata basis, based on the respective notional amounts for current and remaining Calculation Periods in

 

 

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accordance with the requirements of this Section 635 and the related Interest Rate Hedge Agreement.

(f) For the purpose of determining the Interest Rate Hedge Counterparty Required Rating Downgrade Event, no Interest Rate Hedge Transaction(s) may relate to both (i) Series of ICI Notes that have a floating rate of interest and either have the benefit of Series Enhancement and/or are Warehouse Notes and (ii) Series of ICI Notes that neither have the benefit of Series Enhancement nor are Warehouse Notes.

Section 636. Charter Documents.

ICF shall not amend or modify its operating agreement in any way that adversely affects the bankruptcy-remoteness of ICF, ICF’s separate legal existence from any other entity, or the rights or remedies of the ICF Indenture Trustee, ICF Noteholders (including any pledgee or assignee thereof), the Administrative Agent, each Lease Enhancer, each Lessor Note Enhancer, each Series Enhancer, each Lessor, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, the ICI Indenture Trustee or the Trust without the prior written consent of such adversely affected party or parties (as the case may be). ICF shall not amend any section or article of the ICF Operating Agreement specified in Section 8.2(h) of the ICF Operating Agreement (nor any defined term used in any such section or article) nor permit any action by any Person to appoint or allow the resignation of
any Non-Managing Member (as such term is defined in the ICF Operating Agreement) pursuant to Section 8.1(a) of the ICF Operating Agreement nor permit any action by any Person to sell, assign, pledge or otherwise transfer any Membership Interest in ICF pursuant to Section 11.2(a) of the ICF Operating Agreement, in each case, without the prior written consent of the ICF Global Requisite Majority.

Section 637. Other Information.

For so long as any of the ICF Notes are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act and ICF is not subject to Section 13 or 15(d) of the Exchange Act, ICF will, and shall cause Servicer to, (i) provide or cause to be provided to any ICF Noteholder and any prospective purchaser thereof designated by such ICF Noteholder, upon the request of such ICF Noteholder or prospective purchaser, the information required to be provided to such ICF Holder or prospective purchaser by Rule 144A(d)(4) under the Securities Act and (ii) update such information to prevent such information from becoming materially false and materially misleading in a manner adverse to any ICF Noteholder.

Section 638. True and Complete Disclosure.

The information, reports, financial statements, exhibits and schedules furnished in writing by or on behalf of ICF to the ICF Indenture Trustee, the ICF Noteholders, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor and each Enhancer in connection with the negotiation, preparation or delivery of this Indenture and the other ICF Relevant Documents or included herein or therein or delivered pursuant hereto or thereto (when taken together as a whole), do not contain any untrue statement of material fact or (with respect to any offering document relating to any of the ICF Notes) omit to state any material fact necessary to make the statements herein or therein not

 

 

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misleading. All written information furnished after the date hereof by or on behalf of ICF to such parties in connection with this Indenture and the other ICF Relevant Documents and the transactions contemplated hereby and thereby will be true, correct and accurate in every material respect, or (in the case of projections) based on reasonable estimates, on the date as of which such information is stated or certified. To the extent that any information, reports, financial statements, exhibits and schedules that are furnished by or on behalf of ICF contain any untrue statement of material fact or (with respect to any offering document relating to any of the ICF Notes) omit to state any material fact necessary to make the statements herein or therein not misleading, ICF shall correct, or cause to be corrected, such statement or omission. On the Closing Date and the related Series Issuance Date,
there is no fact known to a responsible officer of ICF that, after due inquiry, should reasonably be expected to have a material adverse effect that has not been disclosed in the offering document for the related ICF Notes, in the ICF Relevant Documents or in a report, financial statement, exhibit, schedule, disclosure letter or other writing furnished to such parties for use in connection with the transactions contemplated hereby or thereby.

Section 639. Rating Agency Security Interest Representations.

(a) his Indenture creates a valid and continuing security interest (as defined in the applicable UCC) in the ICF Collateral in favor of the ICF Indenture Trustee (for the benefit of the ICF Noteholders, each Lease Enhancer, each Lessor, each Currency Hedge Counterparty, ICI, each Interest Rate Hedge Counterparty and the Administrative Agent), which security interest is prior to all other Liens (other than Permitted Liens on beneficially owned items of ICF Collateral), and is enforceable as such as against creditors of and purchasers from ICF.

(b) ICF owns and has good and marketable title to the ICF Collateral, free and clear of any Lien (other than Permitted Liens on beneficially owned items of ICF Collateral), claim or encumbrance of any Person.

(c) An original executed copy of each ICF Relevant Document and all originals of the related chattel paper or instruments that constitute or evidence the ICF Collateral (or, if the original chattel paper or instrument constituting such item of ICF Collateral does not exist, then a certified true copy) have been delivered to the ICF Indenture Trustee (or with respect to each Contract File, the Custodian as permitted bailee of the ICF Indenture Trustee).

(d) CF has caused the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the ICF Collateral granted to the ICF Indenture Trustee (for the benefit of the ICF Noteholders, each Lease Enhancer, each Lessor, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, and the Administrative Agent) in this Indenture.

(e) ther than the security interest granted to the ICF Indenture Trustee pursuant to this Indenture and any related Supplement, ICF has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the ICF Collateral. ICF has not authorized the filing of and is not aware of any financing statements against ICF that include a description of collateral covering the ICF Collateral other than any financing statement (i) relating to the security interest granted to the ICF Indenture Trustee in this Indenture or any related Supplement and which names JPMorgan Chase Bank as the ICF Indenture Trustee as

 

 

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secured party or assignee of the secured party, or (ii) that has been terminated. ICF is not aware of any judgment or tax lien filings against ICF.

(f) one of the ICF Relevant Documents and the Contracts, Lease Files and Related Assets allocated to a Certificate pledged hereunder have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the ICF Indenture Trustee. With respect to all Contracts and Related Assets constituting chattel paper and allocated to a Certificate pledged hereunder, ICF has, or has caused to be taken, such steps as are necessary to protect ICF’s or the Trust’s interest in any related Equipment securing such chattel paper.

(g) CF has received all necessary consents and approvals required by the terms of the ICF Collateral to the transfer to the ICF Indenture Trustee of its interest and rights in such ICF Collateral under this Indenture.

(h) The ICF Securities Accounts are not in the name of any Person other than the ICF Indenture Trustee. ICF has not consented to the securities intermediary of any ICF Securities Account complying with entitlement orders of any Person other than the ICF Indenture Trustee.

Section 640. Enforcement of Trust Documents and Transfer Agreements.

If ICF fails to enforce any of its rights, powers or remedies under the Trust Documents with respect to any of the ICF Collateral, any Transfer Agreement, any Lease or any Enhancement Agreement, the ICF Indenture Trustee (acting at the written direction of the ICF Global Requisite Majority (in the event of any enforcement of an Enhancement Agreement, without regard to the related Enhancer)) shall enforce, or cause the enforcement of, such rights, powers and remedies; and the ICF Indenture Trustee’s costs and expenses incurred in connection therewith shall be payable by ICF or the Servicer, as applicable. ICF and the Servicer each irrevocably authorizes the ICF Indenture Trustee at any time and from time to time in the sole discretion of the ICF Indenture Trustee (acting at the written direction of the ICF Global Requisite Majority), and appoints the ICF Indenture Trustee
as its attorney-in-fact, to act on behalf of ICF and the Servicer, to do such further acts and things and to execute and deliver such additional assignments, agreements, powers and instruments as are reasonably required to carry into effect the purposes of this Indenture and the other ICF Relevant Documents or to better assure and confirm unto the ICF Indenture Trustee (and the beneficiaries of the ICF Indenture Trustee’s security interest) their rights, powers and remedies hereunder, under the ICF Collateral. This appointment is coupled with an interest and is irrevocable.

Section 641. Substantive Consolidation and True Sale.

ICF agrees to comply with each assumption contained in the substantive consolidation opinion and the true sale opinion given by Moore and Van Allen on the Closing Date.

 

 

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Section 642. Minimum Net Worth.

ICF agrees to maintain a minimum net worth (measured as of the end of each fiscal quarter and on the basis of the financial statements delivered pursuant to the terms and conditions hereof) of not less than $1,000,000.

Section 643. ICI Swap.

(a) On or prior to each Funding Date, each of ICI and ICF shall enter into one or more ICI Swap transactions to hedge the fixed rate interest payments payable under the Lessor Notes. The swap payment for any month to be received (or paid, as the case may be) by ICI under the ICI Swap will be an amount equal to the ICI Swap Amount. All amounts received by ICF under the ICI Swap shall be netted against all amounts to be paid to each Interest Rate Hedge Counterparty under each Interest Rate Hedge Agreement, pro rata based on the outstanding notional balance of each such Interest Rate Hedge Agreement, and such net amount shall be deposited into the ICF Collection Account for distribution in accordance with the
Section 302(b) of this Indenture.

(b) Reserved.

(c) As additional security hereunder, ICF hereby assigns to the ICF Indenture Trustee all right, title and interest of ICF under each ICI Swap, including, but not limited to, all present and future amounts payable by ICI to ICF under or in connection with such ICI Swap. ICF acknowledges that, as a result of such assignment, ICF may not, without the prior written consent of the ICF Indenture Trustee (acting at the direction of the ICF Global Requisite Majority), exercise any rights under any ICI Swap that would materially adversely affect the rights of the secured parties hereunder, as assignee of ICF’s rights under such ICI Swap; provided that nothing herein shall have the effect of releasing ICF from any of its obligations under an ICI Swap nor be construed as requiring the consent of the ICF
Indenture Trustee, any ICF Noteholder, any Lease Enhancer, any Lessor, any Interest Rate Hedge Counterparty or any Currency Hedge Counterparty for the performance of ICF’s obligations thereunder.

ARTICLE VII

 

DISCHARGE OF INDENTURE

Section 701. Full Discharge.

(a) One year and one day after payment in full of (i) the principal of, and premium, if any, and interest on, all ICF Notes issued under this Indenture and all other amounts owing to ICF Noteholders or to any person under this Indenture, including without limitation, any amounts owed to each Enhancer and each Lessor, (ii) the fees and charges of the ICF Indenture Trustee and (iii) all other ICF Secured Obligations under this Indenture and the other ICF Relevant Documents (including, without limitation, termination of each Interest Rate Hedge Agreement and each Qualified Currency Hedge and payment of all amounts, including termination and breakage amounts, payable in connection with such termination), this Indenture

 

 

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shall be discharged and the security interest of the ICF Indenture Trustee in the ICF Collateral shall be terminated.

(b) In connection with the discharge of this Indenture and the release of the ICF Collateral, the ICF Indenture Trustee shall, within two Business Days after request therefor by ICF, remit to ICF then remaining items of the ICF Collateral and execute and deliver to ICF Financing Statements, prepared by ICF, evidencing such discharge and release.

Section 702. Prepayment of ICF Notes.

At (x) any time there are both ICI Notes and ICF Notes Outstanding or (y) there are any Floating Rate ICI Notes, ICF may not voluntarily prepay any or all of the ICF Aggregate Note Principal Balance without the prior written consent of the ICF Global Requisite Majority except in connection with any required or permitted prepayment of the ICI Notes, including, without limitation,, any required prepayment by ICI to the extent that the ICI Aggregate Note Principal Balance exceeds the Borrowing Base. Any such mandatory prepayment shall include the amount necessary to reduce the notional amount of all Interest Rate Hedge Agreements in accordance with the terms of such Interest Rate Hedge Agreements and subject to the priority of payments set forth in Section 302(b). It shall be a condition precedent to any permitted voluntary prepayment that (a) any such
prepayment of the principal balance of the ICF Notes shall also include accrued interest to the date of prepayment on the principal balance being prepaid, any breakage costs, early termination or notional reduction payments and all other amounts due and payable to the ICF Noteholders, the Interest Rate Hedge Counterparties, each Currency Hedge Counterparty, and each Enhancer, including any early termination fees owed under the related Enhancement Agreement, (b) notice of any such prepayment shall be given by ICF to the ICF Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor, each Enhancer and each ICF Noteholder at least two (2) Business Days prior to such prepayment, (c) when the ICF Notes are paid in full, each Qualified Currency Hedge be terminated and all amounts, including any termination, notional reduction, breakage or other fees or costs (however described)
assessed by any Currency Hedge Counterparty, that are payable in connection with such prepayment be paid in full concurrent with the prepayment of the ICF Notes and (d) when the ICF Notes are paid in full, each Interest Rate Hedge Agreement be terminated and all amounts, including any termination, notional reduction, breakage or other fees or costs (however described) assessed by any Interest Rate Hedge Counterparty, that are payable in connection with such prepayment be paid in full concurrent with the prepayment of the ICF Notes. It is a condition precedent to any voluntary prepayments that when the ICF Notes are to be prepaid in part, the Interest Rate Hedge Agreements be terminated concurrently with such prepayment of the ICF Notes and in the event of any voluntary prepayment that all amounts, including termination, notional reduction and breakage amounts, payable in connection with such termination or notional reduction, be paid in full. Any prepayment of the ICF Notes shall
include the amount necessary to reduce the notional amount of all Interest Rate Hedge Agreements in accordance with the terms of the related Interest Rate Hedge Agreements subject to the priority of payments set forth in Section 302(b). ICF may not make such prepayment from funds swept into the ICF Collection Account from the Master Lockbox Account or from funds in the ICF Cash Collateral Account, except to the extent that funds in any such account would otherwise be payable to ICF in accordance with the terms of this Indenture.

 

 

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Section 703. Unclaimed Funds.

In the event that any amount due to any ICF Noteholder remains unclaimed, ICF shall, at its own expense, cause to be published once, in the eastern edition of The Wall Street Journal, notice that such money remains unclaimed. Any such unclaimed amounts shall be invested by the ICF Indenture Trustee in the Eligible Investments described in clause (vii) of the definition thereof, but no additional interest shall accrue on the related ICF Note subsequent to the date on which such funds were available for distribution to such ICF Noteholder. Any such unclaimed amounts shall be held by the ICF Indenture Trustee in trust until the latest of (i) two years after the date of the publication described in the second preceding sentence, (ii) the date all other registered ICF Noteholders shall have
received full payment of all principal of and premium, if any, and interest and other sums payable to them on such ICF Notes or the ICF Indenture Trustee shall hold (and shall have notified the registered ICF Noteholders that it holds) in trust for that purpose an amount sufficient to make full payment thereof when due and (iii) the date ICF shall have fully performed and observed all its covenants and obligations contained in this Indenture and the related Supplement with respect to such Series of ICF Notes. Thereafter any such unclaimed amounts shall be paid to ICF by the ICF Indenture Trustee on written demand; and thereupon the ICF Indenture Trustee shall be released from all further liability with respect to such monies, and thereafter the registered ICF Noteholders in respect of which such monies were so paid to ICF shall have no rights in respect thereof except to obtain payment of such monies from ICF.

Section 704. Payments, Computations, Etc.

(a) Unless otherwise expressly provided herein or with respect to amounts due under a Lease, all amounts to be paid or deposited by ICF, the Trust or the Servicer hereunder shall be paid or deposited in accordance with the terms hereof no later than 11:00 A.M. (New York City time) on the day when due in lawful money of the United States in immediately available funds to the ICF Collection Account. ICF shall, to the extent permitted by law, pay to the ICF Noteholders interest on all amounts not paid or deposited when due hereunder at the ICF Overdue Rate, payable on demand. All computations of interest and other fees hereunder shall be computed on the basis, for actual days elapsed, of a year of 360 days.

(b) Whenever any payment hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of Interest or any fee payable hereunder, as the case may be; provided, however, that if such next succeeding Business Day shall occur after the last day of the calendar month preceding the related Payment Date, then any such payment shall be made on the next preceding Business Day.

 

 

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ARTICLE VIII

DEFAULT PROVISIONS AND REMEDIES

Section 801. ICF Event of Default.

“ICF Event of Default”, wherever used herein with respect to any ICF Notes, means any one of the following events (whatever the reason for such ICF Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any Governmental Authority):

(i) default by ICF to pay on the ICF Legal Maturity Date, then unpaid principal balance of all ICF Notes, default by ICF to pay ICF Note Senior Interest in cash to the extent that failure to pay in cash would cause an ICI Event of Default under Section 801(i) or Section 801(ii) of the ICI Indenture, default by ICF to pay Basic Rent under any Lease when due and default by ICF to pay any Senior Stipulated Loss Amount when due;

(ii) default in the payment of other amounts not dealt with in clause (i) above owing to the ICF Noteholders of any Series, and the continuation of such default for more than two (2) Business Days after the same shall have become due and payable in accordance with the terms of such ICF Notes and this Indenture (for the avoidance of doubt, unpaid ICF Note Senior Interest and Fees shall increase the Outstanding amount payable under the ICF Notes and unpaid ICF Note Junior Interest and Fees shall increase the Outstanding amount payable under the ICF Notes, but shall not constitute an ICF Event of Default except as provided in clause (i));

(iii) default in the performance, or breach of any covenant contained in any ICF Relevant Document by ICI, ICF, the Trust or any Seller (other than a covenant or agreement a breach of which or default in the performance of which breach is elsewhere in this Section 801 specifically dealt with) or if any representation or warranty of ICI, ICF, the Trust or any Seller (other than a breach of the Transferred Assets Representations and Warranties unless the Seller has not cured such breach in accordance with the related Transfer Agreement) made in connection with any ICF Relevant Document or in any certificate or other writing delivered pursuant hereto or thereto or in connection herewith with respect to or affecting the ICF Notes shall prove to be inaccurate in any material respect as of the time when the same shall have been made, and, in any case if such breach or default or
inaccuracy is capable of cure (except with respect to any breach of Section 630 hereof), continuance of such default or breach or inaccuracy for a period of thirty (30) days after the earlier to occur of (i) actual knowledge of such default, breach or inaccuracy by ICI, ICF, the Trust or any Seller, as the case may be or (ii) the date on which there has been given, by registered or certified mail to ICI, ICF, the Trust or any Seller, as the case may be, by the Administrative Agent, the ICI Indenture Trustee, the ICF Indenture Trustee, a Lease Enhancer or any ICF Noteholder, a written notice specifying such default or breach or inaccuracy and requiring it to be remedied; provided, however, that no notice whatsoever shall be required with respect to any default in the due observance or performance of any negative covenant set forth in Sections 606, 607, 608, 609, 610, 611, 612, 613,
614, 618, 624 or 636 hereof;

 

 

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(iv) the entry of a decree or order for relief by a court having jurisdiction in respect of ICI, ICF, the Trust or any Seller in any involuntary case under any applicable Insolvency Law, or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, or sequestrator (or other similar official) for ICI, ICF, the Trust or any Seller, as the case may be, or for any substantial part of any of their respective properties, or ordering the winding up or liquidation of any of their respective affairs and, in the case of any Seller, the continuance of any such decree or order for a period exceeding sixty (60) days;

(v) the commencement by ICI, ICF, the Trust or any Seller of a voluntary case under any applicable Insolvency Law, or other similar law now or hereafter in effect, or the consent by ICI, ICF, the Trust or any Seller to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee or sequestrator (or other similar official) of ICI, ICF, the Trust or any Seller or any substantial part of their respective properties, or the making by ICI, ICF, the Trust or any Seller of any general assignment for the benefit of creditors, or the failure by ICI, ICF, the Trust or any Seller generally to pay its debts as they become due, or the taking of corporate action against ICI, ICF, the Trust or any Seller in furtherance of any such action;

(vi) this Indenture or any other ICF Relevant Document ceases to be in full force and effect except to the extent that they are terminated in accordance with their terms;

(vii) the occurrence of a reportable event (within the meaning of Section 4043 of ERISA) with respect to any Plan, or the occurrence of any event or condition with respect to a Plan which in either case reasonably could be expected to result in imposition of a Lien on the ICI Collateral, the ICF Collateral or any SUBI Assets;

(viii) CI, any Lessor or ICF becomes subject to regulation by the Securities and Exchange Commission as an “investment company” within the meaning of the Investment Company Act of 1940;

(ix) the occurrence and continuance of an ICI Event of Default;

(x) Reserved;

(xi) failure to obtain the prior written consent of the ICF Global Requisite Majority with respect to any refinancing of a Lease; or

(xii) the occurrence and continuance of any event that prevents or limits ICF (other than such limitations as are expressly set forth in this Indenture or the ICI Indenture) from drawing any Advances under the ICF Notes.

Any determination as to whether an ICF Event of Default has occurred shall be made without regard to any payments made by an Enhancer.

 

 

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Section 802. Acceleration of Expected Maturity; Rescission and Annulment.

(a) Upon the occurrence of any of the conditions or events set forth in clauses (iv) or (v) of Section 801, the entire principal balance of all ICF Notes then Outstanding, together with all accrued and unpaid interest (including any ICF Default Interest), and all other amounts then due and payable to the ICF Noteholders, shall become immediately due and payable without any further action by any Person. If an ICF Event of Default (other than as set forth in clauses (iv) or (v) of Section 801) occurs and is continuing, then and in every such case the ICF Indenture Trustee, may, and if acting at the written direction of the ICF Global Requisite Majority, shall declare the entire principal of and accrued interest on all ICF Notes then Outstanding to be due and payable immediately, by a notice in writing to ICF and to the ICF Indenture Trustee given by
the ICF Global Requisite Majority, and upon any such declaration such principal and accrued interest shall become immediately due and payable, and the ICF Indenture Trustee shall provide written notice of such declaration to the ICF Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor, each Lease Enhancer, each Lessor Note Enhancer, each Series Enhancer and each ICF Noteholder.

(b) At any time after such a declaration of acceleration has been made and before a judgment or decree for payment of the money due has been obtained by the ICF Indenture Trustee as hereinafter in this Article provided, the ICF Global Requisite Majority, by written notice to ICF and the ICF Indenture Trustee, may rescind and annul such declaration and its consequences if:

(i) ICF has paid or deposited with the ICF Indenture Trustee a sum sufficient to pay:

(A) all of the installments of interest, ICF Default Interest, fees, premium (if any) on and, if the ICF Legal Maturity Date has occurred, principal of all the ICF Notes then Outstanding which were overdue prior to the date of such acceleration;

(B) reserved;

(C) all sums paid or advanced by the ICF Indenture Trustee or the Servicer and the reasonable compensation, out-of-pocket expenses, disbursements and advances of the ICF Indenture Trustee, and its agents and counsel incurred in connection with the enforcement of this Indenture;

(D) all amounts due to the Administrative Agent, each Lease Enhancer, each Owner Participant and each Lessor; 

(E) all scheduled payments, early termination amounts, taxes, indemnities, default interest and other amounts due under any Qualified Currency Hedge and any Interest Rate Hedge Agreement, together with interest accrued thereon, in accordance with the terms thereof; and

 

 

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(F) all other fees and amounts due and payable under the ICF Relevant Documents and payable pursuant to Section 302 hereof other than return of any ICF Available Funds to ICF; and

(ii) all ICF Events of Default (including, without limitation, under clause (ix) of Section 801), other than the nonpayment of the principal of or interest and fees on ICF Notes which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 813 hereof.

No such rescission shall affect any subsequent default or impair any right consequent thereon, nor shall any such rescission affect any Qualified Currency Hedge  or Interest Rate Hedge Agreement terminated in accordance with the terms thereof.

Section 803. Collection of Indebtedness.

ICF covenants that, if an ICF Event of Default occurs and is continuing and a declaration of acceleration has been made under Section 802 and not rescinded, ICF will, upon demand of the ICF Indenture Trustee, pay to the ICF Indenture Trustee, for the benefit of the Persons set forth in Section 302 hereof, the amounts and in the priorities set forth in Section 302 hereof.

Section 804. Remedies.

If an ICF Event of Default shall occur and be continuing, the ICF Indenture Trustee, by such officer or agent as it may appoint, shall promptly notify the applicable Rating Agencies, if any, of such ICF Event of Default and shall, subject to this Article VIII, if instructed in writing by the ICF Global Requisite Majority:

(i) institute any Proceedings, in its own name and as trustee of an express trust, for the collection of all amounts then due and payable on the ICF Notes or under this Indenture, whether by declaration or otherwise, enforce any judgment obtained, and collect from the ICF Collateral any monies adjudged due;

(ii) subject to the User Rights, take possession of and sell (including any sale made in accordance with Section 817 hereof), hold or lease the ICF Collateral or any portion thereof or rights or interest therein, at one or more public or private transactions conducted in any manner permitted by law;

(iii) institute any Proceedings from time to time for the complete or partial foreclosure of the Lien created by this Indenture with respect to the ICF Collateral;

(iv) during the continuance of a Contract Default, cause the Trust to exercise any of the rights of the lessor under such Contract; provided, however, that the ICF Indenture Trustee shall not be obligated to exercise such rights;

(v) exercise any remedies of a secured party under the Uniform Commercial Code or any applicable law and take any other appropriate action to

 

 

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protect and enforce the rights and remedies of the ICF Indenture Trustee or the ICF Noteholders hereunder;

(vi) institute such other appropriate Proceedings to protect and enforce any other rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy;

(vii) appoint a receiver or a trustee over ICF or its assets; or

(viii) foreclose on any SUBI Certificate subjected to the Lien of this Indenture.

Section 805. The ICF Indenture Trustee May Enforce Claims Without Possession of ICF Notes.

(a) In all Proceedings brought by the ICF Indenture Trustee (and also any Proceedings involving the interpretation of any provision of this Indenture to which the ICF Indenture Trustee shall be a party), the ICF Indenture Trustee shall be held to represent all of the ICF Noteholders, each Lessor, each Lease Enhancer, each Interest Rate Hedge Agreement and each Currency Hedge Counterparty, and it shall not be necessary to make any ICF Noteholder, Lessor, Enhancer, Interest Rate Hedge Counterparty or Currency Hedge Counterparty a party to any such Proceedings.

(b) All rights of action and claims under this Indenture or the ICF Notes may be prosecuted and enforced by the ICF Indenture Trustee without the possession of any of the ICF Notes or the production thereof in any Proceeding relating thereto, and any such Proceeding instituted by the ICF Indenture Trustee shall be brought in its own name as trustee of an express trust, and any recovery whether by judgment, settlement or otherwise shall, after provision for the payment of the reasonable compensation, expenses, and disbursements incurred and advances made, by the ICF Indenture Trustee, its agents and counsel, be for the ratable benefit of the Holders of the ICF Notes, each Interest Rate Hedge Counterparty and each Currency Hedge Counterparty and each other secured party hereunder, subject to the priority of payments set forth in Section 302 of this Indenture.

Section 806. Allocation of Money Collected.

If the ICF Notes of all Series have been declared due and payable following an ICF Event of Default and such declaration and its consequences have not been rescinded or annulled, any money collected by the ICF Indenture Trustee pursuant to this Article or otherwise and any other monies that may be held or thereafter received by the ICF Indenture Trustee as security for such ICF Notes shall be applied, to the extent permitted by law, at the date or dates fixed by the ICF Indenture Trustee to the Persons, in the amounts and in the priorities set forth in Section 302 hereof.

Section 807. Reserved.

 

 

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Section 808. Unconditional Right of Holders to Receive Principal and Interest and to Institute Proceedings.

Notwithstanding any other provision of this Indenture, each ICF Noteholder shall have the right, which is absolute and unconditional, to receive payment of all amounts in respect of its ICF Note, including, but not limited to the principal of and interest and fees on such ICF Note as such principal, fees and interest become due and payable and to institute any Proceeding for the enforcement of such payment, and such rights shall not be impaired without the consent of such ICF Noteholder.

Section 809. Restoration of Rights and Remedies.

If an ICF Event of Default has occurred and is continuing, and the ICF Indenture Trustee, the Administrative Agent, any Lease Enhancer, any Lessor, any Currency Hedge Counterparty, each Interest Rate Hedge Counterparty or any ICF Noteholder (including any pledgee or assignee thereof) has instituted any Proceeding to enforce any right or remedy under this Indenture and such Proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the ICF Indenture Trustee, the Administrative Agent, any Lease Enhancer, any Lessor, any Currency Hedge Counterparty, any Interest Rate Hedge Counterparty or such ICF Noteholder (or assignee thereof), then and in every such case, subject to any determination in such Proceeding, each such Person shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies
of the ICF Indenture Trustee, the Administrative Agent, such Lease Enhancer, such Lessor, such Currency Hedge Counterparty, such Interest Rate Hedge Counterparty and the ICF Noteholders (together with their assignees) shall continue as though no such Proceeding had been instituted.

Section 810. Rights and Remedies Cumulative.

No right or remedy herein conferred upon or reserved to the ICF Indenture Trustee, the Administrative Agent, any Lease Enhancer, any Lessor, any Currency Hedge Counterparty, any Interest Rate Hedge Counterparty or to the ICF Noteholders pursuant to this Indenture is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

Section 811. Delay or Omission Not Waiver.

No delay or omission of the ICF Indenture Trustee, the Administrative Agent, any Lease Enhancer, any Lessor, any Currency Hedge Counterparty, any Interest Rate Hedge Counterparty or of any ICF Noteholder to exercise any right or remedy accruing upon any ICF Event of Default shall impair any such right or remedy or constitute a waiver of any such ICF Event of Default or an acquiescence therein. Every right and remedy given by this Indenture or by law to the ICF Indenture Trustee, the Administrative Agent, any Lease Enhancer, any Lessor, any Currency Hedge Counterparty, any Interest Rate Hedge Counterparty or any ICF Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the ICF Indenture Trustee, the Administrative Agent, each Lease Enhancer, each Lessor, each

 

 

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Currency Hedge Counterparty, each Interest Rate Hedge Counterparty or by the ICF Noteholders, as the case may be.

Section 812. Control by ICF Global Requisite Majority.

Upon the occurrence of an ICF Event of Default, the ICF Global Requisite Majority shall have the right to direct the time, method and place of conducting any Proceeding for any remedy available to the ICF Indenture Trustee or exercising any trust or power conferred on the ICF Indenture Trustee; provided that (i) such direction shall not be in conflict with any rule of law or with this Indenture, including, without limitation, Section 804 hereof; (ii) such ICF Global Requisite Majority has offered to the ICF Indenture Trustee reasonable indemnity against costs, expenses and liabilities which it might incur in connection therewith as provided in Section 902(iii) hereof; (iii) the ICF Indenture Trustee may take any other action deemed proper by the ICF Indenture Trustee which is
not inconsistent with such direction, provided, however, that, subject to Section 901 hereof, the ICF Indenture Trustee need not take any action which it determines might involve it in personal liability; and, (iv) if the conditions to retention of the ICF Collateral set forth in Section 816 hereof have been satisfied, then any direction to the ICF Indenture Trustee by the ICF Noteholders to undertake a sale of the ICF Collateral shall be of no force and effect.

Section 813. Waiver of Past Defaults.

(a) The ICF Global Requisite Majority, on behalf of all ICF Noteholders, each Lease Enhancer, each Lessor and each other secured party hereunder, may waive any past ICF Event of Default hereunder and its consequences, except any ICF Event of Default that occurs with respect to any of:

(i) the payment of the principal of or interest on any ICF Note (which may only be waived by the holder of such ICF Note) or the payment of Basic Rent or Senior Stipulated Loss Value (which may only be waived by the related Lessor Control Party (as defined in the related Lessor Relevant Documents)), or

(ii) a covenant or provision hereof which cannot be modified or amended without the consent of all of the requisite Persons pursuant to Section 1002 of this Indenture.

Upon any such waiver, such ICF Event of Default shall cease to exist and shall be deemed to have been cured and not to have occurred for every purpose of this Indenture; provided, however that no such waiver shall extend to any subsequent or other ICF Event of Default or impair any right consequent thereon, nor shall it affect any Qualified Currency Hedge or Interest Rate Hedge Agreement which has been terminated in accordance with its terms.

Section 814. Undertaking for Costs.

All parties to this Indenture agree, and each secured party hereunder by entering into the transactions contemplated hereby shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the ICF Indenture Trustee for any action taken, suffered or

 

 

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omitted by it as the ICF Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; provided, however, that the provisions of this Section shall not apply to any suit instituted by the ICF Indenture Trustee, to any suit instituted by any ICF Holder, or group of ICF Holders, holding in the aggregate more than 10% of the ICF Aggregate Note Principal Balance, to any suit instituted by any Lessor on or after the Termination Date for the enforcement of the payment of Basic Rent or Stipulated Loss Value or for the
payment of any other Supplemental Rent under the Lease or to any suit instituted by any ICF Holder for the enforcement of the payment of the principal of or interest on any ICF Note on or after the ICF Legal Maturity Date of such ICF Note.

Section 815. Waiver of Stay or Extension Laws.

ICF covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture and ICF (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the ICF Indenture Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.

Section 816. Optional Preservation of ICF Collateral.

If the ICF Notes have been declared to be due and payable under Section 802 hereof following an ICF Event of Default and such declaration and its consequences have not been rescinded and annulled, the ICF Indenture Trustee shall, at the written direction of the ICF Global Requisite Majority, take possession of the ICF Collateral and shall, provided that such ICF Collateral continues to provide sufficient funds for the payment of principal of and interest on the ICF Notes then Outstanding, each outstanding Lease and for the payment of all payments under each Qualified Currency Hedge and each Interest Rate Hedge Agreement and all scheduled payments due under any Leases as they would have become due if there had not been such a declaration, hold and maintain the ICF Collateral for the benefit of
the ICF Noteholders, each Lease Enhancer, each (direct or indirect) beneficiary of the security interest in favor of the ICF Indenture Trustee, each Lessor, each Owner Participant, each Currency Hedge Counterparty, and each Interest Rate Hedge Counterparty and apply all distributions received on the ICF Collateral, subject to the provisions of Section 302 of this Indenture, to the payment of principal of and interest on the ICF Notes then Outstanding and to the payment of all payments under each Qualified Currency Hedge and each Interest Rate Hedge Counterparty and all other amounts payable hereunder as if there had not been such a declaration. The ICF Indenture Trustee shall promptly notify each Lessor Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor, each Lease Enhancer, each Series Enhancer, each Lessor Note Enhancer, each ICF Noteholder and the Rating Agencies, if any,
of the direction by the ICF Global Requisite Majority to retain the ICF Collateral pursuant to this Section 816.

 

 

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Section 817. Sale of ICF Collateral.

(a) The power to effect any sale (a “Sale”) of any portion of the ICF Collateral pursuant to Section 804 hereof shall not be exhausted by any one or more Sales as to any portion of the ICF Collateral remaining unsold, but shall continue unimpaired until the entire ICF Collateral shall have been sold or all amounts payable on the ICF Notes of all Classes under this Indenture shall have been paid and all ICF Secured Obligations under this Indenture have been satisfied. The ICF Indenture Trustee, at the direction of the ICF Global Requisite Majority, may from time to time postpone any Sale by public announcement made at the time and place of such Sale.

(b) Upon any Sale, whether made under the power of sale hereby given or under judgment, order or decree in any Proceeding for the foreclosure or involving the enforcement of this Indenture: (i) the ICF Indenture Trustee, at the direction of the ICF Global Requisite Majority, may bid for and purchase the property being sold, and upon compliance with the terms of such Sale may hold, retain and possess and dispose of such property in accordance with the terms of this Indenture; and (ii) the receipt of the ICF Indenture Trustee or of any officer thereof making such Sale shall be a sufficient discharge to the purchaser or purchasers at such Sale for its or their purchase money, and such purchaser or purchasers, and its or their assigns or personal representatives, shall not, after paying such purchase money and receiving such receipt of the ICF Indenture Trustee or of such
officer therefor, be obliged to see to the application of such purchase money or be in any way answerable for any loss, misappropriation or non-application thereof.

(c) The ICF Indenture Trustee shall execute and deliver an appropriate instrument of conveyance transferring its interest in any portion of the ICF Collateral in connection with a Sale thereof. In addition, the ICF Indenture Trustee is hereby irrevocably appointed the agent and attorney-in-fact of ICF to transfer and convey its interest in any portion of the ICF Collateral in connection with a Sale thereof, and to take all action necessary to effect such Sale. No purchaser or transferee at such a Sale shall be bound to ascertain the ICF Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any monies.

(d) The ICF Indenture Trustee shall be entitled to consult with legal counsel and financial advisers (selected by the ICF Indenture Trustee with due care) in connection with the sale of the ICF Collateral and shall be protected in any reasonable action or forbearance taken in good faith and in reliance on the advice of such counsel or advisors. For the avoidance of doubt, no sale of the ICF Collateral may be effected except in accordance with the terms of this Indenture.

Section 818. Action on ICF Notes.

The ICF Indenture Trustee’s right to seek and recover judgment on the ICF Notes or under this Indenture shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this Indenture. Neither the Lien of this Indenture nor any rights or remedies of the ICF Indenture Trustee, the Administrative Agent, any Lease Enhancer, any Lessor, each Owner Participant or the ICF Noteholders shall be impaired by the recovery of any

 

 

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judgment by the ICF Indenture Trustee against ICF or by the levy of any execution under such judgment upon any portion of the ICF Collateral or upon any of the assets of ICF.

ARTICLE IX

CONCERNING THE ICF INDENTURE TRUSTEE

Section 901. Duties of the ICF Indenture Trustee.

The ICF Indenture Trustee, prior to the occurrence of an ICF Event of Default or after the curing of any ICF Event of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, including any Supplement hereto. If an ICF Event of Default has occurred and is continuing, the ICF Indenture Trustee, at the written direction of the ICF Global Requisite Majority, shall exercise such of the rights and powers vested in it by this Indenture and any Supplement, if any, hereto, and use the same degree of care and skill in its exercise as a prudent Person would exercise or use under the circumstances in the conduct of such Person’s own affairs.

The ICF Indenture Trustee, upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments furnished to the ICF Indenture Trustee which are specifically required to be furnished pursuant to any provisions of this Indenture and any applicable Supplement, shall determine whether they are substantially in the form required by this Indenture and any applicable Supplement; provided, however, that the ICF Indenture Trustee shall not be responsible for the accuracy or content of any such resolution, certificate, statement, opinion, report, document, order or other instrument furnished pursuant to this Indenture and any applicable Supplement.

No provision of this Indenture shall be construed to relieve the ICF Indenture Trustee from liability for its own grossly negligent action, its own grossly negligent failure to act or its own willful misconduct; provided, however, that:

(i) Prior to the occurrence of an ICF Event of Default and after the curing of any ICF Event of Default which may have occurred, the duties and obligations of the ICF Indenture Trustee shall be determined solely by the express provisions of this Indenture and any Supplements issued pursuant to the terms hereof. The ICF Indenture Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture, and any Supplements issued pursuant to the terms hereof and no implied covenants or obligations shall be read into this Indenture and any Supplements issued pursuant to the terms hereof against the ICF Indenture Trustee and, in the absence of bad faith on the part of the ICF Indenture Trustee, the ICF Indenture Trustee may conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any certificates, statements, reports, documents, orders, opinions or other instruments furnished to the ICF Indenture Trustee and conforming to the requirements of this Indenture and any Supplements issued pursuant to the terms hereof;

 

 

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(ii) The ICF Indenture Trustee shall not be liable for an error of judgment made in good faith by a Corporate Trust Officer or Corporate Trust Officers of the ICF Indenture Trustee, unless it shall be proved that the ICF Indenture Trustee was negligent in ascertaining the pertinent facts; and

(iii) The ICF Indenture Trustee shall not be personally liable with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance with the direction of the ICF Global Requisite Majority relating to the time, method and place of conducting any proceeding for any remedy available to the ICF Indenture Trustee, or exercising any trust or power conferred upon the ICF Indenture Trustee, under this Indenture.

No provisions of this Indenture shall require the ICF Indenture Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it (the unsecured indemnity of (A) a Rated Institutional Noteholder or (B) any Lease Enhancer being deemed satisfactory for such purpose).

Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the ICF Indenture Trustee shall be subject to the provisions of this Section 901.

Section 902. Certain Matters Affecting the ICF Indenture Trustee. 

Except as otherwise provided in Section 901 hereof:

(i) The ICF Indenture Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any Opinion of Counsel, certificate of a Servicing Officer, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

(ii) The ICF Indenture Trustee may consult with counsel and any advice of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in accordance with the advice of such counsel;

(iii) The ICF Indenture Trustee shall be under no obligation to institute, conduct or defend any litigation or proceeding hereunder or in relation hereto at the request, order or direction of the ICF Global Requisite Majority, pursuant to the provisions of this Indenture, unless the ICF Global Requisite Majority shall have offered to the ICF Indenture Trustee reasonable security or indemnity against the costs, expenses and liabilities which may be incurred therein (including the fees and expenses of its counsel) or thereby (the unsecured indemnity of (A) a Rated Institutional Noteholder or (B) any Lease Enhancer being deemed satisfactory for such purpose);

 

 

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(iv) The ICF Indenture Trustee shall not be liable for any action taken, suffered or omitted by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture;

(v) The ICF Indenture Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document, unless requested in writing to do so by the ICF Global Requisite Majority; provided, however, that the ICF Indenture Trustee may require reasonable indemnity against any cost, expense or liability likely to be incurred in making such investigation as a condition to so proceeding (the unsecured indemnity of (A) Rated Institutional Noteholder or (B) any Lease Enhancer being deemed satisfactory for such purpose). The reasonable expense of any such examination shall be paid, pro rata, by the ICF Noteholders requesting such examination or, if paid by the ICF Indenture Trustee, shall be reimbursed by such ICF Noteholders upon demand; and

(vi) The ICF Indenture Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through its agents or attorneys; provided that the ICF Indenture Trustee shall be responsible for any misconduct or negligence on the part of any agent or attorney appointed by it without the prior written consent of the ICF Global Requisite Majority (such consent not to be unreasonably withheld).

The provisions of this Section 902 shall be applicable to the ICF Indenture Trustee in its capacity as the ICF Indenture Trustee under this Indenture.

Section 903. The ICF Indenture Trustee Not Liable.

(a) The recitals contained herein (other than the representations and warranties contained in Section 911 hereof) and in the ICF Notes (other than the certificate of authentication on the ICF Notes) shall be taken as the statements of ICF, and the ICF Indenture Trustee assumes no responsibility for their correctness. The ICF Indenture Trustee makes no representations as to the validity or sufficiency of this Indenture, the ICF Notes, the ICF Collateral or of any related document. The ICF Indenture Trustee shall not be accountable for the use or application by ICF of any of the ICF Notes or of the proceeds thereof, or for the use or application of any funds paid to ICF or the Servicer in respect of the ICF Collateral.

(b) Except as expressly provided herein or in any Supplement, the ICF Indenture Trustee shall have no responsibility or liability for or with respect to the existence or validity of any item of ICF Collateral, the perfection of any security interest (whether as of the date hereof or at any future time), the maintenance of or the taking of any action to maintain such perfection, the validity of the assignment of any portion of the ICF Collateral to the ICF Indenture Trustee or of any intervening assignment, the performance or enforcement of any ICF Collateral item, the compliance by Interpool, TLI or the Servicer with any covenant or the breach by Interpool, TLI or the Servicer of any warranty or representation made hereunder or in any ICF Related Document or the accuracy of such warranty or representation, any investment of monies

 

 

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in the ICF Collection Account, the ICF Cash Collateral Account, the ICF Deposit Account, the Casualty Account or any other ICF Securities Account established hereunder or any loss resulting therefrom (provided that such investments are made in accordance with the provisions of Article 3 hereof), the acts or omissions of any Seller, the Servicer or any User or any action of the Servicer taken in the name of the ICF Indenture Trustee.

(c) Except as expressly provided herein or in any Supplement, the ICF Indenture Trustee shall not have any obligation or liability under any Contract by reason of or arising out of this Indenture or the granting of a security interest in such Contract hereunder or the receipt by the ICF Indenture Trustee of any payment relating to any Contract pursuant hereto, nor shall the ICF Indenture Trustee be required or obligated in any manner to perform or fulfill any of the obligations of ICF, the Servicer, TLI, Interpool or any other Seller under or pursuant to any Contract, or to make any payment, or to make any inquiry as to the nature or the sufficiency of any payment received by it, or the sufficiency of any performance by any party, under any Contract.

Section 904. The ICF Indenture Trustee May Own ICF Notes.

The ICF Indenture Trustee in its individual or any other capacity may become the owner or pledgee of ICF Notes with the same rights it would have if it were not the ICF Indenture Trustee so long as such transaction does not result in the disqualification of the ICF Indenture Trustee also acting as the ICI Indenture Trustee for purposes of Rule 3(a)-7 under the Investment Company Act of 1940.

Section 905. The ICF Indenture Trustee Fees and Expenses.

The fees and expenses of the ICF Indenture Trustee shall be paid by Interpool as Servicer pursuant to the terms of the Indenture Trustee Fee Letter, to Interpool, Inc. from the ICF Indenture Trustee. Interpool as Servicer shall indemnify the ICF Indenture Trustee (which for purposes of this Section 905 shall include its officers, directors, employees and agents) for, and hold it harmless against, any loss, liability or expense (including reasonable fees and expenses of its counsel) incurred without gross negligence or willful misconduct on its part, arising out of or in connection with the acceptance or administration of this trust and the actions of the Custodian on behalf of the ICF Indenture Trustee and the other ICF Relevant Documents, including the costs and expenses of defending itself both individually and in its representative capacity against any claim or
liability in connection with the exercise or performance of any of its power or duties hereunder.

When the ICF Indenture Trustee incurs expenses or renders services in connection with an ICF Event of Default specified in Section 801(iv) or Section 801(v), the expenses and the compensation for the services are intended to constitute expenses of administration under any bankruptcy law.

Upon appointment of a successor the ICF Indenture Trustee pursuant to Section 908 hereof, and the satisfaction of the conditions and obligations thereunder (except for ICF’s notice requirement), any outstanding fees, expenses and indemnities due and payable to the predecessor the ICF Indenture Trustee shall be paid to it.

 

 

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The obligations of Interpool as Servicer under this Section 905 shall survive the resignation and removal of the ICF Indenture Trustee and satisfaction and discharge of this Indenture.

IN NO EVENT SHALL THE ICF INDENTURE TRUSTEE BE LIABLE FOR SPECIAL, INDIRECT OR CONSEQUENTIAL LOSS OR DAMAGE OF ANY KIND WHATSOEVER (INCLUDING BUT NOT LIMITED TO LOST PROFITS), EVEN IF THE ICF INDENTURE TRUSTEE HAS BEEN ADVISED OF THE LIKELIHOOD OF SUCH LOSS OR DAMAGE AND REGARDLESS OF THE FORM OF ACTION.

Section 906. Eligibility Requirements for the ICF Indenture Trustee.

The ICF Indenture Trustee hereunder shall at all times be (i) a national banking association or a corporation acceptable to the ICF Global Requisite Majority, or (ii) a Person who is not a Competitor of Interpool, in each case organized and doing business under the laws of the United States of America or any State, and authorized under such laws to exercise corporate trust powers acceptable to the ICF Global Requisite Majority. In addition, the ICF Indenture Trustee or its parent corporation shall at all times (i) have a combined capital and surplus of at least $250,000,000.00, (ii) be subject to supervision or examination by Federal or state authority and (iii) have a long-term senior unsecured debt rating of “A2” or better by Moody’s and a short-term senior unsecured debt rating of “P-1” or better by Moody’s and have
a long-term senior unsecured debt rating of “A” or better by S&P and a short-term senior unsecured debt rating of “A-1” or better by S&P. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of such supervising or examining authority, then, for the purposes of this Section 906, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. In addition, the ICF Indenture Trustee hereunder shall at all times qualify for purposes of Rule 3a-7 under the Investment Company Act of 1940. If at any time the ICF Indenture Trustee shall cease to qualify for purposes of Rule 3a-7 under the Investment Company Act of 1940, ICF, with the prior written consent of the ICF Global Requisite Majority, shall remove the ICF Indenture Trustee and appoint a successor the ICF Indenture Trustee in
accordance with the terms and conditions of this Indenture. In case at any time the ICF Indenture Trustee shall cease to be eligible in accordance with the provisions of this Section, the ICF Indenture Trustee shall resign immediately in the manner and with the effect specified in Section 907 hereof.

Section 907. Resignation and Removal of the ICF Indenture Trustee.

The ICF Indenture Trustee may at any time resign and be discharged from the trusts hereby created by giving written notice thereof to ICF, the Servicer, the Rating Agencies (if any), the Administrative Agent, the ICF Noteholders, each Enhancer, each Lessor, each Currency Hedge Counterparty and each Interest Rate Hedge Counterparty. Upon receiving such notice of resignation, ICF shall promptly appoint a successor trustee (which shall be reasonably acceptable to the ICF Global Requisite Majority) by written instrument, in duplicate, one copy of which instrument shall be delivered to the resigning the ICF Indenture Trustee, the Administrative Agent, each Lessor, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty and each Enhancer and one copy to the successor the ICF Indenture Trustee and the Rating Agencies. If no successor the ICF Indenture Trustee shall
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and have accepted appointment within 30 days after the giving of such notice of resignation, the ICF Global Requisite Majority may appoint a successor trustee or, if it does not do so within thirty (30) days thereafter, the resigning the ICF Indenture Trustee, with the consent of the ICF Global Requisite Majority, may petition any court of competent jurisdiction for the appointment of a successor trustee, which successor trustee shall meet the eligibility standards set forth in Section 906 hereof. 

If at any time the ICF Indenture Trustee shall cease to be eligible in accordance with the provisions of Section 906 hereof and shall fail to resign after written request therefor by ICF, the Servicer or the ICF Global Requisite Majority, or if at any time the ICF Indenture Trustee shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or a receiver of the ICF Indenture Trustee or of its property shall be appointed, or any public officer shall take charge or control of the ICF Indenture Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then ICF may, and at the direction of the ICF Global Requisite Majority shall, remove the ICF Indenture Trustee and appoint a successor the ICF Indenture Trustee reasonably acceptable to the ICF Global Requisite Majority by written instrument, in duplicate, one copy
of which instrument shall be delivered to the ICF Indenture Trustee so removed and one copy to the successor the ICF Indenture Trustee. The ICF Indenture Trustee may be removed at any time, with or without cause, at the direction of the ICF Global Requisite Majority.

Any resignation or removal of the ICF Indenture Trustee and appointment of a successor trustee pursuant to any of the provisions of this Section shall become effective upon acceptance of appointment by the successor trustee as provided in Section 908 hereof.

The ICF Indenture Trustee agrees to instruct any co-trustee to the extent necessary to fulfill the ICF Indenture Trustee’s obligations hereunder.

Section 908. Successor the ICF Indenture Trustee.

Any successor the ICF Indenture Trustee appointed as provided in Section 907 hereof shall execute, acknowledge and deliver to ICF and to its predecessor the ICF Indenture Trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the predecessor the ICF Indenture Trustee shall become effective and such successor the ICF Indenture Trustee, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its predecessor hereunder, with like effect as if originally named as the ICF Indenture Trustee herein. The predecessor the ICF Indenture Trustee shall deliver to the successor the ICF Indenture Trustee all documents relating to the ICF Collateral, if any, delivered to it, together with any amount remaining in the ICF Collection Account, the ICF Cash Collateral Account,
the ICF Deposit Account, the Casualty Account and each other ICF Securities Account. In addition, the predecessor the ICF Indenture Trustee and, upon request of the successor the ICF Indenture Trustee, ICF shall execute and deliver such instruments and do such other things as may reasonably be required for more fully and certainly vesting and confirming in the successor the ICF Indenture Trustee all such rights, powers, duties and obligations.

No successor the ICF Indenture Trustee shall accept appointment as provided in this Section unless at the time of such acceptance such successor the ICF Indenture Trustee shall

 

 

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be eligible under the provisions of Section 906 hereof and shall be reasonably acceptable to the ICF Global Requisite Majority.

Upon acceptance of appointment by a successor the ICF Indenture Trustee as provided in this Section, ICF shall mail notice of the succession of such the ICF Indenture Trustee hereunder to the ICF Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor, each Owner Participant, each Lease Enhancer, each Lessor Note Enhancer, each Series Enhancer and each ICF Noteholder, in each case at their respective addresses set forth in Section 1307 hereof or the other ICI Relevant Documents. If ICF does not mail such notice within 10 days after acceptance of appointment by the successor the ICF Indenture Trustee, the successor the ICF Indenture Trustee shall cause such notice to be mailed at the expense of ICF.

Section 909. Merger or Consolidation of the ICF Indenture Trustee.

Any Person into which the ICF Indenture Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the ICF Indenture Trustee shall be a party, or any Person succeeding to the business of the ICF Indenture Trustee, shall be the successor of the ICF Indenture Trustee hereunder, provided such Person shall be eligible under the provisions of Section 906 hereof, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

Section 910. Separate ICF Indenture Trustees, Co- ICF Indenture Trustees and Custodians.

The ICF Indenture Trustee and the ICF Global Requisite Majority shall each have the power from time to time to appoint one or more Persons to act either as co-trustees jointly with the ICF Indenture Trustee, or as separate trustees, or as custodians, for the purpose of holding title to, foreclosing or otherwise taking action with respect to any of the ICF Collateral, when such separate trustee or co-trustee is necessary or advisable under any applicable laws or for the purpose of otherwise conforming to any legal requirement, restriction or condition in any applicable jurisdiction. The separate trustees, co-trustees, or custodians so appointed shall be trustees, co-trustees, or custodians for the benefit of all ICF Noteholders, Lessors, the Owner Participants, Lease Enhancers, Interest Rate Hedge Counterparties, and Currency Hedge Counterparties, and shall have such powers,
rights and remedies as shall be specified in the instrument of appointment; provided, however, that no such appointment shall, or shall be deemed to, constitute the appointee an agent of the ICF Indenture Trustee. ICF shall join in any such appointment, but such joining shall not be necessary for the effectiveness of such appointment.

Every separate trustee, co-trustee and custodian shall, to the extent permitted by law, be appointed and act subject to the following provisions and conditions:

(i) all powers, duties, obligations and rights conferred upon the ICF Indenture Trustee in respect of the receipt, custody and payment of moneys shall be exercised solely by the ICF Indenture Trustee;

 

 

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(ii) all other rights, powers, duties and obligations conferred or imposed upon the ICF Indenture Trustee shall be conferred or imposed upon and exercised or performed by the ICF Indenture Trustee and such separate trustee, co-trustee, or custodian jointly, except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed the ICF Indenture Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the ICF Collateral or any portion thereof in any such jurisdiction) shall be exercised and performed by such separate trustee, co-trustee or custodian;

(iii) no trustee or custodian hereunder shall be personally liable by reason of any act or omission of any other trustee or custodian hereunder unless appointed by them; and

(iv) the ICF Indenture Trustee or the ICF Global Requisite Majority may at any time accept the resignation of or remove any separate trustee, co-trustee or custodian so appointed by it or them if such resignation or removal does not violate the other terms of this Indenture.

Any notice, request or other writing given to the ICF Indenture Trustee shall be deemed to have been given to each of the separate trustees and co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee, co-trustee, or custodian shall refer to this Indenture and the conditions of this Article. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the ICF Indenture Trustee or separately, as may be provided therein, subject to all the provisions of this Indenture, specifically including every provision of this Indenture relating to the conduct of, affecting the liability of, or affording protection to, the ICF Indenture Trustee. A copy of every such instrument shall be furnished to the ICF
Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor, each Lease Enhancer, each Series Enhancer and each ICF Noteholder.

Any separate trustee, co-trustee, or custodian may, at any time, constitute the ICF Indenture Trustee, its agent or attorney-in-fact, with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Indenture on its behalf and in its name. If any separate trustee, co-trustee, or custodian shall cease to exist, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the ICF Indenture Trustee, to the extent permitted by law, without the appointment of a new or successor trustee or custodian.

No separate trustee, co-trustee or custodian hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 906 hereof and no notice to ICF Noteholders of the appointment thereof shall be required under Section 908 hereof.

The ICF Indenture Trustee agrees to instruct the co-trustees, if any, to the extent necessary to fulfill the ICF Indenture Trustee’s obligations hereunder.

 

 

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Section 911. Representations and Warranties.

The ICF Indenture Trustee hereby represents and warrants that:

(a) Organization and Good Standing. The ICF Indenture Trustee is a New York banking corporation duly organized, validly existing and in good standing under the laws of the State of New York, and has the power to own its assets and to transact the business in which it is presently engaged;

(b) Authorization. The ICF Indenture Trustee has the power, authority and legal right to execute, deliver and perform this Indenture and each Supplement and to authenticate the ICF Notes, and the execution, delivery and performance of this Indenture and each Supplement and the authentication of the ICF Notes has been duly authorized by the ICF Indenture Trustee by all necessary corporate action;

(c) Binding Obligations. This Indenture and each Supplement, assuming due authorization, execution and delivery by the other parties hereto, constitutes the legal, valid and binding obligations of the ICF Indenture Trustee, enforceable against the ICF Indenture Trustee in accordance with its terms, except that (i) such enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium or other similar laws (whether statutory, regulatory or decisional) now or hereafter in effect relating to creditors’ rights generally and the rights of trust companies in particular and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to certain equitable defenses and to the discretion of the court before which any proceeding therefor
may be brought, whether in a proceeding at law or in equity;

(d) No Violation. The performance by the ICF Indenture Trustee of its obligations under this Indenture and each Supplement will not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice, lapse of time or both) a default under, the charter documents or bylaws of the ICF Indenture Trustee;

(e) No Proceedings. To the best of it’s knowledge, there are no proceedings or investigations to which the ICF Indenture Trustee is a party pending, or, to the knowledge of the ICF Indenture Trustee, threatened, before any court, regulatory body, administrative agency or other tribunal or Governmental Authority (A) asserting the invalidity of this Indenture, the ICF Notes or any other ICF Relevant Documents, (B) seeking to prevent the issuance of the ICF Notes or the consummation of any of the transactions contemplated by this Indenture or (C) seeking any determination or ruling that would materially and adversely affect the performance by the ICF Indenture Trustee of its obligations under, or the validity or enforceability of, this Indenture, the ICF Notes or any other ICF
Relevant Documents; and

(f) Approvals. Neither the execution or delivery by the ICF Indenture Trustee of this Indenture nor the consummation of the transactions by the ICF Indenture Trustee contemplated hereby requires the consent or approval of, the giving of notice to, the registration with or the taking of any other action with respect to any Governmental Authority under any existing federal or State of New York law governing the banking or trust powers of the ICF Indenture Trustee.

 

 

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Section 912. The ICF Indenture Trustee Offices.

The ICF Indenture Trustee shall maintain in the State of New York an office or offices or agency or agencies where ICF Notes may be surrendered for registration of transfer or exchange, which office shall initially be located at 55 Water Street, Room 234, New York, New York 10041, Attn: Chase Manhattan Bank Securities Window, and shall promptly notify ICF, the Servicer and the ICF Noteholders of any change of such location.

Section 913. Notice of Events of Default, Servicer Default or Amortization Event and/or Waivers.

If a Responsible Officer of the ICF Indenture Trustee shall have actual knowledge of a Servicer Default, an ICF Event of Default, a Lessor Event of Default, an ICI Event of Default or an Amortization Event, and/or any waiver thereof, the ICF Indenture Trustee shall give prompt written notice thereof to the Rating Agencies, if any, the ICF Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor, each Lease Enhancer, each Series Enhancer, each Lessor Note Enhancer and each ICF Noteholder. For all purposes of this Indenture, in the absence of actual knowledge by a Corporate Trust Officer of the ICF Indenture Trustee, the ICF Indenture Trustee shall not be deemed to have actual knowledge of any default or event and/or waiver thereof unless notified in writing thereof by ICI, a
Lessor, ICF, the Administrative Agent, a Lease Enhancer, a Series Enhancer, a Lessor Note Enhancer, an ICF Control Party, an ICI Control Party, an Interest Rate Hedge Counterparty, a Currency Hedge Counterparty, the Servicer or an ICF Noteholder, and such notice references this Indenture and the applicable default or event and/or waiver thereof.

ARTICLE X

SUPPLEMENTAL INDENTURES

Section 1001. Supplemental Indentures Not Creating a New Series Without Consent of Holders.

(a) Without the consent of any Series Enhancer, any Lessor Note Enhancer, Interest Rate Hedge Counterparty, ICF Control Party, ICI Control Party, ICI Noteholder, ICF Noteholder, any Lease Enhancer, any Lessor, any Owner Participant, any Currency Hedge Counterparty, any holder of Lessor Notes, the Administrative Agent or the other Persons set forth in Section 1001(a) of the ICI Indenture and based on an Opinion of Counsel in form and substance reasonably acceptable to the ICF Indenture Trustee (acting at the written direction of the ICI Global Requisite Majority) to the effect that each such Supplement is for one of the purposes set forth below and does not adversely affect such Person’s rights, duties or immunities, enter into one or more Supplements in a form satisfactory to the ICF Indenture Trustee (provided
that ICF, the Servicer, the Administrative Agent and the ICF Indenture Trustee, at any time and from time to time, may, with the consent of each such Person, if any such proposed Supplement adversely affects such Person’s rights, duties or immunities, enter into one or more Supplements in a form satisfactory to the ICF Indenture Trustee), for any of the following purposes:

 

 

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(i) to add to the covenants of ICF in this Indenture for the benefit of the ICF Noteholders or to surrender any right or power herein conferred upon ICF in this Indenture;

(ii) to cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent with any other provision herein or the other ICI Relevant Documents, or to make any other provisions with respect to matters or questions arising under this Indenture;

(iii) to correct or amplify the description of any property at any time subject to the Lien of this Indenture, or better to assure, convey and confirm unto the ICF Indenture Trustee any property subject or required to be subjected to the Lien of this Indenture, or to subject additional property to the Lien of this Indenture;

(iv) to add to the conditions, limitations and restrictions on the authorized amount, terms and purposes of issue, authentication and delivery of the ICF Notes, as herein set forth, or additional conditions, limitations and restrictions thereafter to be observed by ICF;

(v) to convey, transfer, assign, mortgage or pledge any additional property to or with the ICF Indenture Trustee;

(vi) to evidence the succession of the ICF Indenture Trustee pursuant to Article IX; or

(vii) to add any additional ICF Events of Default.

Prior to the execution of any Supplement issued pursuant to this Section 1001, ICF shall provide written notice to each Rating Agency (if any) rating any of the then outstanding ICF Notes setting forth in general terms the substance of any such Supplement.

(b) Promptly after the execution by ICF, the Servicer and the ICF Indenture Trustee of any Supplement pursuant to this Section, ICF shall mail to the ICF Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor, each Lease Enhancer, each Series Enhancer, each ICF Noteholder and the Rating Agencies, if any, a notice setting forth in general terms the substance of such Supplement, together with a copy of the text of such Supplement. Any failure of ICF to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such Supplement.

Section 1002. Supplemental Indentures Not Creating a New Series with Consent of Holders.

(a) With the prior written consent of the ICF Global Requisite Majority and with the consent of any ICF Noteholder, Lessor, Lease Enhancer, Currency Hedge Counterparty, Series Enhancer, Interest Rate Hedge Counterparty, Administrative Agent, ICF Control Party, and/or ICI Control Party (if the proposed Supplement adversely affects such Person’s rights,

 

 

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duties or immunities), and upon prior notice to each Rating Agency (if any), ICF, the Servicer, the Administrative Agent and the ICF Indenture Trustee may enter into a Supplement hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of any such Person under this Indenture; provided, however, that no such Supplement shall, without the consent of each such Person affected thereby:

(i) reduce the principal amount of any ICF Note or the rate of interest thereon, change the priority of any payments required pursuant to this Indenture, or the date on which, or the place of payment where, or the coin or currency in which, any ICF Note or the interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the ICF Legal Maturity Date thereof;

(ii) reduce the percentage of the Outstanding ICF Notes required for (a) the consent of any Supplement to this Indenture, (b) the consent required for any waiver of compliance with certain provisions of this Indenture or waiver of any ICF Event of Default hereunder and their consequences as provided for in this Indenture or (c) the consent required to waive any payment default on the ICF Notes;

(iii) modify any of the provisions of this Section 1002 except to (A) increase any percentage provided herein or (B) list additional provisions of this Indenture that cannot be modified or waived without the consent of each ICF Noteholder of an Outstanding ICF Note affected thereby;

(iv) modify or alter the definition of the terms “Outstanding”, “ICF Global Requisite Majority” or “ICF Asset Base”;

(v) impair, adversely affect or release all or any substantial part of the ICF Collateral except as otherwise permitted herein;

(vi) permit the creation of any Lien with respect to any part of the ICF Collateral or terminate the Lien of this Indenture on all or any substantial part of the ICF Collateral at any time subject hereto until such property is substituted or removed from the Lien of this Indenture in accordance with the terms of this Indenture or deprive any beneficiary of the security interest in favor of the ICF Indenture Trustee of the security afforded by the Lien of this Indenture;

(vii) modify any of the provisions of this Indenture in such a manner as to affect the amount of any payments of interest or principal due on any ICF Note or any Lessor on any Payment Date; or

(viii) modify or alter any of Sections 302, 614, 702, 806, 808, 813, 1001 or 1002 of this Indenture.

 

 

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Prior to the execution of any Supplement issued pursuant to this Section 1002, ICF shall provide a written notice to each Rating Agency (if any) setting forth in general terms the substance of any such Supplement.

(b) Promptly after the execution by ICF, the Servicer and the ICF Indenture Trustee of any Supplement pursuant to this Section, ICF shall mail to the each Person directly affected by such Supplement, the ICF Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, each Lessor, each Lease Enhancer, each Series Enhancer, each ICF Noteholder and the Rating Agencies (if any), a notice setting forth in general terms the substance of such Supplement, together with a copy of the text of such Supplement. Any failure by ICF to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such Supplement.

Section 1003. Execution of Supplemental Indentures.

In executing, or accepting the additional trusts created by, a Supplement permitted by this Article or the modification thereby of the trusts created by this Indenture, the ICF Indenture Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such Supplement is authorized or permitted by this Indenture. The ICF Indenture Trustee may, but shall not be obligated to, enter into any such Supplement which affects the ICF Indenture Trustee’s own rights, duties or immunities under this Indenture or otherwise.

Section 1004. Effect of Supplemental Indentures.

Upon the execution of any Supplement in accordance with this Article, this Indenture shall be modified in accordance therewith, and such Supplement shall form a part of this Indenture for all purposes, and every ICF Noteholder of ICF Notes theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.

Section 1005. Reference in ICF Notes to Supplemental Indentures.

Any ICF Notes authenticated and delivered after the execution of any Supplement pursuant to this Article may, and shall, if required by ICF, bear a notation in form approved by the ICF Indenture Trustee as to any matter provided for in such Supplement. If ICF shall so determine, new ICF Notes so modified as to conform, in the opinion of the ICF Indenture Trustee (acting at the written direction of all affected ICF Noteholders), may be prepared and executed by ICF and authenticated and delivered by the ICF Indenture Trustee in exchange for Outstanding ICF Notes. 

Section 1006. Issuance of Series of ICF Notes.

ICF may not execute and authenticate any additional class or series of notes hereunder without the prior written consent of the ICF Indenture Trustee (acting at the written direction of the ICF Global Requisite Majority). On or before the proposed issuance date relating to any class or series of notes, the parties hereto will execute and deliver a Supplement which will specify the principal terms of such class or series of notes and such principal terms 

 

 

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shall be reasonably acceptable to the ICF Global Requisite Majority; provided that the terms of any such Supplement may not amend, supplement or otherwise modify the terms of this Indenture except in accordance with Article X hereof. No Supplement issuing an additional Series of ICF Notes shall be issued hereunder without the consent of the ICI Global Requisite Majority. On or before the proposed issuance date relating to any Class or Series of ICF Notes, the following conditions shall have been satisfied:  (i)  the due issuance of a related Series of ICI Notes, (ii) satisfaction of the Rating Agency Condition, (iii) after giving effect to such issuance of ICF Notes, the outstanding principal balance of all ICF Notes and all Lessor Notes is at least equal to the outstanding principal balance of all ICI Notes, and (iv) such other conditions as the ICI Global Requisite
Majority may require.

Section 1007. Rating Agency Condition. 

To the extent that satisfaction of any Rating Agency Condition is required hereunder, (i) satisfaction of any such Rating Agency Condition may not be waived and (ii) such requirement may not be amended or modified in each case without the consent of each affected Owner Participant.

ARTICLE XI

 

HOLDERS LISTS

Section 1101. ICF to Furnish the ICF Indenture Trustee Names and Addresses of Holders.

If the ICF Indenture Trustee is not then maintaining the ICF Note Register pursuant to Section 205 of this Indenture, ICF will furnish or cause to be furnished to the ICF Indenture Trustee (i) not more than 10 days after each Determination Date, a list, in such form as the ICF Indenture Trustee may reasonably require, of the names and addresses and tax identification numbers of the ICF Noteholders as of such Determination Date, and (ii) at such other times as the ICF Indenture Trustee may request in writing, within 30 days after the receipt by ICF of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished.

Section 1102. Preservation of Information; Communications to Holders.

The ICF Indenture Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of ICF Noteholders contained in the most recent list furnished to the ICF Indenture Trustee as provided in Section 1101 and the names and addresses of the ICF Noteholders received by the ICF Indenture Trustee in its capacity as ICF Note Registrar. The ICF Indenture Trustee may destroy any list furnished to it as provided in Section 1101 upon receipt of a new list so furnished.

 

 

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ARTICLE XII

 

[RESERVED]

ARTICLE XIII

 

MISCELLANEOUS PROVISIONS

Section 1301. Compliance Certificates and Opinions.

(a) Upon any application or request by ICF to the ICF Indenture Trustee to take any action under any provision of this Indenture, ICF shall furnish to the ICF Indenture Trustee a certificate signed by an Authorized Officer of ICF stating that all conditions precedent, if any, provided for in this Indenture and relating to the proposed action have been complied with and, if deemed reasonably necessary by the ICF Indenture Trustee or if required pursuant to the terms of this Indenture, an internal written Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with, except that in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion
need be furnished.

(b) Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include:

(i) a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions relating thereto;

(ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

(iii) a statement that, in the opinion of each such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether such covenant or condition has been complied with; and

(iv) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.

Section 1302. Form of Documents Delivered to the ICF Indenture Trustee.

(a) In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.

 

 

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(b) Any certificate or opinion may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows that the certificate or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous.

(c) Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument.

Section 1303. Acts of Holders.

(a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture  to be given or taken by ICF Holders may be (i) embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing, (ii) evidenced by the written consent or direction of the ICF Global Requisite Majority or the Holders of such other specified percentage of the principal amount of the ICF Notes, as the case may be, or (iii) evidenced by a combination of such instrument or instruments; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments and record are delivered to the ICF Indenture Trustee and, where it is hereby expressly required, to ICF. Proof of execution of any such instrument or of a
writing appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the ICF Indenture Trustee and ICF, if made in the manner provided in this Section.

(b) The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by a signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of his authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner which the ICF Indenture Trustee deems sufficient.

(c) The ownership of ICF Notes shall be proved by the ICF Note Register.

(d) Any request, demand, authorization, direction, notice, consent, waiver or other act of an ICF Noteholder of any ICF Note shall bind every future ICF Noteholder of the same ICF Note and the ICF Noteholder of every ICF Note issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the ICF Indenture Trustee or ICF in reliance thereon, whether or not notation of such action is made upon such ICF Note.

Section 1304. Inspection and Audit Inspections.

(a) Upon reasonable notice to ICF specifying the particulars of each request and subject to appropriate and reasonable confidentiality covenants, ICF shall permit the 

 

 

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representatives of any Rating Agency (if any), the ICF Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, an Enhancer, a Currency Hedge Counterparty, an Interest Rate Hedge Counterparty, the ICF Noteholders and their duly authorized representatives, attorneys and accountants, to audit and examine all of the information systems, books, records, reports and other papers of the Servicer, ICF and the Trust with respect to the ICF Collateral, any Lessor Collateral, any SUBI Assets subject to a Lease, any Certificate subject to a Lease, any Lessor and the SUBI Assets subjected to the Lien of this Indenture, to make copies and extracts therefrom, and to discuss the affairs, finances and accounts with the officers, employees and Independent Accountants of ICF and the Trust for the purpose of reviewing or evaluating the Servicer’s, ICF’s and/or the Trust’s performance
of its duties and obligations hereunder and under the other ICF Relevant Documents. The number of audits and examinations conducted pursuant to the provisions of this Section 1304(a) shall, subject to the provisions of Section 1304(b), be reasonable and customary. Subject to the provisions of Section 1304(b), all reasonable out-of-pocket expenses incidental to the first annual exercise by any such person or its duly authorized representatives, attorneys and accountants of the inspection right hereunder shall be borne by the Servicer, without right of reimbursement from any such person for such expenses; provided, however, to the extent that any such person serves in multiple capacities under the ICF Relevant Documents, such person shall be entitled to reimbursement of such reasonable out-of-pocket expenses only once per annum; provided
further that such persons agree to use reasonable efforts to share information among one another and to coordinate such inspections to minimize the number of total audits per annum and the expenses incurred by ICF in connection therewith. Any Person that fails, refuses or is otherwise not obligated to share information with the Persons named in this Section 1304(a) or cooperate in the coordination of inspections shall not be entitled to any of the information gained by any of the other Persons named in this Section 1304(a). No such Person shall be liable to any other Person for failure to so share information or otherwise cooperate with any other Person concerning such audit.

(b) If at any time an Amortization Event, an ICI Event of Default, ICF Event of Default or Servicer Default shall have occurred and is continuing, or, with respect to a breach of any financial covenant that is an Amortization Event, Servicer Default, an ICI Event of Default or ICF Event of Default, such Amortization Event, Servicer Default, ICI Event of Default or ICF Event of Default is incipient, then (i) such persons and their duly authorized representatives, attorneys and accountants may exercise the rights granted to them in Section 1304(a) at any time upon reasonable notice to ICF, (ii) the ICF Indenture Trustee shall (at the written direction of the ICF Global Requisite Majority) appoint an Independent Accountant other than that Person previously acting as accountant for any of the Servicer, the Trust or ICF for the purpose of conducting any review
contemplated by this Section 1304 and (iii) all examinations and audits conducted pursuant to this Section 1304 shall be at the Servicer’s expense.

(c) ICF also agrees (i) to make available on a reasonable basis to the ICF Indenture Trustee, the Administrative Agent, each Enhancer, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty, the ICI Indenture Trustee and the ICF Noteholders (including any collateral assignee of an ICF Noteholder) a knowledgeable financial or accounting officer for the purpose of answering reasonable questions respecting recent developments affecting ICF and (ii) to allow the ICF Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, each Enhancer, each Currency Hedge Counterparty, each 

 

 

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Interest Rate Hedge Counterparty and the ICF Noteholders to inspect the Servicer’s facilities during normal business hours.

(d) At all times during the term hereof, ICF shall either (i) keep available in physical form at its principal executive office for inspection by the ICF Indenture Trustee, the ICI Indenture Trustee, the Administrative Agent, any Enhancer, any Currency Hedge Counterparty, any Interest Rate Hedge Counterparty, any ICF Noteholder and/or their duly authorized representatives, attorneys or accountants the Master List, together with a reconciliation of such Master List, indicating the cumulative addition and removal of Contracts and Equipment or (ii) maintain electronic facilities which allow such list and reconciliation to be generated.

(e) ICF will maintain, or cause the Servicer to maintain, accounts and records as to the SUBI Assets pledged hereunder or leased under a Lease that are accurate and sufficiently detailed as to permit (i) the reader thereof to know as of the most recent Determination Date the status of such SUBI Assets, including ICF Collections received, Recoveries received, payments owing (and the nature of each), Casualty Loss and any Casualty Payment in respect thereof and (ii) reconciliation between ICF Collections and Recoveries on (or with respect to) the SUBI Assets and the amounts from time to time deposited in the ICF Collection Account in respect of such SUBI Assets.

(f) ICF will maintain, or will cause to be maintained, computerized accounts and records so that, from and after the time of transfer of the Transferred Assets to the Trust, the Trust’s accounts and records indicate clearly that the Transferred Assets and any other SUBI Assets are owned by the Trust, the ICF Collateral is owned by ICF and that the ICF Collateral related to ICF is pledged to the ICF Indenture Trustee. Indication of the Trust’s ownership of a Contract and an item of Equipment will be deleted from or modified on ICF’s accounts and records when, and only when, the Contract and/or any item of Equipment has been paid in full or purchased or substituted or assigned to the Servicer or a subservicer pursuant to the Transfer Agreements.

Section 1305. Limitation of Rights.

Except as expressly set forth in this Indenture, this Indenture shall be binding upon ICF, the ICF Indenture Trustee, the Administrative Agent, the ICF Noteholders, each Lease Enhancer, each Lessor, each Currency Hedge Counterparty, each Interest Rate Hedge Counterparty and the Servicer, and their respective successors and permitted assigns and shall not inure to the benefit of any Person other than the parties hereto and their successors and permitted assigns as contemplated by the ICI Relevant Documents, including, without limitation, the ICI Indenture Trustee as assignee of the ICF Noteholders’ rights hereunder under the ICI Indenture, and the assignees of the ICF Noteholders described in Section 1320.

Section 1306. Severability.

(a) If any one or more of the provisions of this Indenture shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions, or terms shall be deemed severable from the remaining covenants, agreements, provisions, or terms of this 

 

 

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Indenture and shall in no way affect the validity or enforceability of the other provisions of this Indenture.

(b) The invalidity of any one or more phrases, sentences, clauses or Sections of this Indenture contained, shall not affect the remaining portions of this Indenture, or any part thereof.

Section 1307. Notices.

All demands, notices and communications hereunder shall be in writing, and shall be deemed to have been duly given upon receipt (a) in the case of the ICF Indenture Trustee, at the following address: 450 West 33rd Street 14th Floor, New York, New York 10001, Attention: Corporate Trust Department, telephone: (212) 946-3200, facsimile: (212) 946-8302, (b) in the case of the Servicer, at the following address: Interpool, Inc., 211 College Road East, Princeton, New Jersey 08540, Attention: William A. Geoghen, telephone: (609) 452-8900, facsimile: (609) 951-0362, (c) in the case of ICF, at the following address: c/o Interpool, Inc., 211 College Road East, Suite A1, Princeton, New Jersey 08540, Attention: William A. Geoghen, telephone: (609) 452-8900, facsimile: (609) 951-0362,
(d) in the case of TLI, at the following address: 633 Third Avenue, New York, New York 10017, Attention: Raul J. Witteveen, telephone: (212) 916-3264, facsimile: (212) 986-2038, (e) in the case of any ICF Noteholder, at its address as shown in the registration books maintained by the ICF Indenture Trustee, (f) in the case of the Trust, at the following address: c/o Wachovia Trust Company, National Association, One Rodney Square, lst Floor, 920 King Street, Wilmington, Delaware 18901, Attention: Corporate Trust Department, telephone: (302) 888-7530, facsimile: (302) 888-7544, (g) in the case of the Currency Hedge Counterparty, at the address set forth in the related Qualified Currency Hedge and, in the case of an Interest Rate Hedge Counterparty, at the address set forth in the related Interest Rate Hedge Agreement, (h) in the case of an ICF Holder, at the address of such ICF Holder as shown in the
ICF Note Register or to the telephone and fax number furnished by such ICF Noteholder, (i) in the case of each Rating Agency, (1) to Moody’s at Moody’s Investors Service, Inc., 99 Church Street, New York, New York 10001, Attention: ABS Monitoring Group and (2) if to S&P at Standard & Poor’s Ratings Services, 55 Water Street, 41st Floor, New York, New York 10011, Attention: Asset-Backed Surveillance Group - phone: (212/438-2435), fax: (212/438-2664), (j) in the case of any Enhancer, at its address set forth in the related Enhancement Agreement and (k) in the case of the Administrative Agent, at its address set forth in the Administration Agreement, or at other such address as shall be designated by such party in a written notice to the other parties. Any notice required or permitted to be given to an ICF Noteholder, Currency Hedge Counterparty, Lease Enhancer or any party hereto shall be given by
certified first class mail, postage prepaid (return receipt requested), or by hand, or by guaranteed overnight courier, or by facsimile, with subsequent telephone confirmation of receipt thereof. Notice shall be effective and deemed received (a) two days after being delivered to the courier service, if sent by courier, (b) upon receipt of confirmation of transmission, if sent by telecopy, (c) when delivered to the recipient, if delivered by hand, or (d) the third Business Day after delivery to the postal service if delivered by certified first class mail, postage prepaid (return receipt requested). Any notice so mailed within the time prescribed in this Indenture shall be conclusively presumed to have been duly given, whether or not the addressee receives such notice.

 

 

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Section 1308. No Waiver; Cumulative Remedies.

No failure to exercise and no delay in exercising, on the part of ICF, the ICF Indenture Trustee, the Administrative Agent, any Currency Hedge Counterparty, any Interest Rate Hedge Counterparty, any Lease Enhancer, any Lessor or any ICF Noteholder, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise hereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exhaustive of any rights, remedies, powers and privilege provided by law.

Section 1309. Captions.

The captions or headings in this Indenture are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of this Indenture.

Section 1310. Governing Law. 

THIS INDENTURE AND ANY AMENDMENT HEREOF OR SUPPLEMENT HERETO SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAWS BUT OTHERWISE WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. IF ANY PROVISION OF THIS INDENTURE IS DEEMED INVALID, IT SHALL NOT AFFECT THE BALANCE OF THIS INDENTURE. THIS INDENTURE HAS BEEN DELIVERED IN THE STATE OF NEW YORK.

Section 1311. No Petition.

The ICF Indenture Trustee, the Administrative Agent, each Enhancer, each Lessor, each Interest Rate Hedge Agreement and each Currency Hedge Counterparty, each on its own behalf, hereby covenants and agrees, and each ICF Noteholder by its acquisition of its ICF Note shall be deemed to covenant and agree, that it will not, prior to the date that is one year and one day after the payment in full of all amounts owing pursuant to this Indenture, the ICI Indenture and the other ICF Relevant Documents, institute against, or join any other Person in instituting against, ICI, any Lessor, ICF or the Trust, any bankruptcy, reorganization, receivership, arrangement, insolvency or liquidation proceedings or other similar proceedings under any applicable bankruptcy, insolvency or similar law. The provisions of this Section 1311 shall survive the termination of this Indenture.

Section 1312. Recourse Against Certain Parties.

(a) No recourse under or with respect to any obligation, covenant or agreement (including, without limitation, the payment of any fees or any other obligations) of ICF, the Servicer, the Administrative Agent, each Lease Enhancer, each Lessor, each Currency Hedge Counterparty or each ICF Noteholder as contained in the ICF Relevant Documents or any other agreement, instrument or document entered into by it pursuant hereto or in connection herewith shall be had against any administrator of such party or any incorporator, affiliate, 

 

 

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stockholder, officer, employee or director of such party or of any such administrator, as such, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood by ICF, the ICF Indenture Trustee, the Administrative Agent, each Lease Enhancer, each Lessor, each Currency Hedge Counterparty, each Interest Rate Hedge Agreement and each ICF Noteholder that the agreements of such party contained in the ICF Relevant Documents and all of the other agreements, instruments and documents entered into by it pursuant hereto or in connection herewith are, in each case, solely the corporate obligations of such party.

(b) The provisions of this Section 1312 shall survive the termination of this Indenture.

Section 1313. General Interpretive Principles.

For purposes of this Indenture except as otherwise expressly provided or unless the context otherwise requires:

(a) the defined terms in this Indenture shall include the plural as well as the singular and the use of any gender herein shall be deemed to include any other gender;

(b) accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles as in effect on the date hereof;

(c) references herein to “Articles”, “Sections”, “Subsections”, “paragraphs”, and other subdivisions without reference to a document are to designated Articles, Sections, Subsections, paragraphs and other subdivisions of this Indenture;

(d) a reference to a Subsection without further reference to a Section is a reference to such Subsection as contained in the same Section in which the reference appears, and this rule shall also apply to paragraphs and other subdivisions;

(e) the words “herein”, “hereof’, “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular provision; and

(f) the term “include” or “including” shall mean without limitation by reason of enumeration.

Section 1314. Effective Date of Transaction.

Notwithstanding that this Indenture is dated as of June 1, 2000 and such Indenture is amended and restated as of the Second Restatement Date, the various transfers, conveyances and transactions set forth in this Indenture, including, without limitation, the security interests granted pursuant to the Granting Clause hereof, shall not be effective until the Closing Date.

 

 

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Section 1315. Service of Process and Jurisdiction.

Each party to and third party beneficiary of this Indenture hereby (i) irrevocably submits to the non-exclusive jurisdiction of the Supreme Court of the State of New York, New York County (without prejudice to the right of any party to remove to the United States District Court for the Southern District of New York) and to the non-exclusive jurisdiction of the United States District Court for the Southern District of New York, for the purposes of any suit, action or other proceeding arising out of this Indenture, any other ICF Related Document or the subject matter hereof or thereof or any of the transactions contemplated hereby or thereby brought by any transaction party or their respective successors or assigns, (ii) irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such
New York State court or in such Federal court, and (iii) irrevocably waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding any claim that it is not personally subject to the jurisdiction of the above-named courts, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper, or that this Indenture, the other ICF Relevant Documents or the subject matter hereof or thereof may not be enforced in or by such court. Except as otherwise provided by applicable law, a final judgment obtained in respect of any action, suit or proceeding referred to in this paragraph shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any manner as provided by applicable law, a certified or true copy of which final judgment shall be conclusive evidence of the fact and of the amount of any indebtedness or liability therein
described. Each of the parties hereto and each third party beneficiary hereunder hereby consents to service of process by registered mail or nationally recognized courier service in the United States at the address to which notices to it are to be given, and to receive service of process at any such address in any action, suit or proceeding with respect to any matter as to which it submits to jurisdiction as set forth above, it being agreed that service in such manner shall constitute valid service upon such party or its successors or assigns only in connection with any such action or proceeding.

Each of the parties hereto and each third party beneficiary hereunder agrees that its submission to jurisdiction and consent to service of process by mail, as the case may be, set forth above is made for the express benefit of each other transaction party; provided, however, that nothing in this paragraph shall affect the right of any of such parties, third party beneficiaries or their respective successors or assigns to serve legal process in any other manner permitted by law or affect the right of any of such parties or their respective successors or assigns to bring any action or proceeding against any other party or its property in the courts of other jurisdictions.

Section 1316. Counterparts.

This Indenture may be executed in two or more counterparts (and by different parties on separate counterparts), each of which shall be an original, but all of which shall constitute one and the same instrument.

Section 1317. WAIVER OF JURY TRIAL.

EACH OF THE PARTIES HERETO, AND EACH LEGAL AND BENEFICIAL OWNER OF AN ICF NOTE, HEREBY IRREVOCABLY WAIVES, AS AGAINST THE OTHER PARTIES HERETO, ANY RIGHTS IT MAY HAVE TO A JURY TRIAL IN

 

 

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RESPECT OF ANY CIVIL ACTION OR PROCEEDING (WHETHER ARISING IN CONTRACT OR TORT OR OTHERWISE), INCLUDING ANY COUNTERCLAIM, ARISING UNDER OR RELATING TO THIS INDENTURE OR ANY OTHER OPERATIVE DOCUMENT, INCLUDING IN RESPECT OF THE NEGOTIATION, ADMINISTRATION OR ENFORCEMENT HEREOF OR THEREOF.

Section 1318. Waiver of Immunity.

To the extent that any party hereto or any of its property is or becomes entitled at any time to any immunity on the grounds of sovereignty or otherwise from any legal actions, suits or proceedings, from set-off or counterclaim, from the jurisdiction or judgment of any competent court, from service of process, from execution of a judgment, from attachment prior to judgment, from attachment in aid of execution, or from execution prior to judgment, or other legal process in any jurisdiction, such party, for itself and its successors and assigns and its property, does hereby irrevocably and unconditionally waive, and agrees not to plead or claim, any such immunity with respect to its obligations, liabilities or any other matter under or arising out of or in connection with this Indenture, the other ICF Related Documents or the subject matter hereof or thereof, subject, in each
case, to the provisions of the ICF Related Documents and mandatory requirements of applicable law.

Section 1319. Statutory References.

References in this Indenture and each other ICF Relevant Document to any section of the Uniform Commercial Code or the UCC shall mean, on or after the effective date of adoption of any revision to the Uniform Commercial Code or the UCC in the applicable jurisdiction, such revised or successor section thereto.

Section 1320. Acknowledgment and Consent.

ICF acknowledges that ICI has pledged all of its right, title and interest in, to and under the ICF Notes to the ICI Indenture Trustee pursuant to the ICI Indenture and that each Lessor will pledge (subject to any “Excepted Rights” and “Excepted Property”) all of its right, title and interest in, to and under each Lease to a Lessor Indenture Trustee under the related Lessor Indenture. ICF acknowledges and consents to such pledges by ICI and the Lessors, notwithstanding any restrictions on transfer otherwise set forth herein, and consents to the assignment by ICI and such Lessors of all or any portion of their right, title and interest in, to and under the ICF Notes, the Leases, this Indenture and the other ICF Relevant Documents and all of ICI’s or such Lessors’ rights, remedies, power and privileges and claims against ICF under or with respect to
this Indenture and the other ICF Relevant Documents (whether arising pursuant to the terms of this Indenture or otherwise available at law or in equity), including without limitation:  (i) the right of ICI as an ICF Noteholder at any time to enforce this Indenture and the other ICF Relevant Documents against ICF and the obligations of ICF hereunder, (ii) the right of any Lessor to enforce this Indenture and the other ICF Relevant Documents against ICF and the obligations of ICF hereunder, and (iii) the right at any time to give or withhold any and all consents, requests, notices, directions, approvals, demands, extensions or waivers to be given under or with respect to this Indenture, any other ICF Relevant Documents or the obligations in respect of ICF thereunder, all of which rights, remedies, powers, privileges and claims may be exercised and/or enforced by the ICI Indenture Trustee or Lessor Indenture Trustee and their 

 

 

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successors and assigns to the same extent as ICI or such Lessors may do. ICF further acknowledges that ICI has agreed in the ICI Indenture and the other ICI Relevant Documents not to amend, modify or otherwise waive certain of ICI’s rights, and remedies against ICF hereunder and under the other ICF Relevant Documents and that ICI has agreed that the ICI Noteholders and other beneficial secured parties under the ICI Indenture are beneficiaries of the grants in the ICF Collateral and other undertakings of ICF hereunder and under the other ICF Relevant Documents. ICF covenants that it shall not agree to any consent or waiver to this Indenture or the other ICF Relevant Documents without the consent of all parties entitled to consent under the ICI Relevant Documents and hereby consents to the grant and recognition of all beneficial secured parties under the ICI Indenture as third-party
beneficiaries hereunder. ICF further acknowledges that each Lessor has agreed in the related Lessor Indenture and the other related Lessor Relevant Documents not to amend, modify or otherwise waive certain of the related Lessor’s rights, and remedies against ICF hereunder and under the other ICF Relevant Documents and that each Lessor has agreed that the holders of the Lessor Notes and other beneficial secured parties under the related Lessor Indenture are beneficiaries of the grants in the ICF Collateral and other undertakings of ICF hereunder and under the other ICF Relevant Documents. ICF covenants that it shall not agree to any consent or waiver to this Indenture or the other ICF Relevant Documents without the consent of all parties entitled to consent under the related Lessor Relevant Documents and hereby consents to the grant and recognition of all beneficial secured parties under the related Lessor Indenture as third-party beneficiaries hereunder.

[SIGNATURE PAGE FOLLOWS]

 

 

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IN WITNESS WHEREOF, ICF, ICI, the Servicer, the Administrative Agent and the ICF Indenture Trustee have caused this Indenture to be duly executed and delivered by their respective officers thereunto duly authorized and their respective seals, duly attested, to be hereunto affixed, all as of the day and year first above written.

 

	
                         
 	
                         
 	
                         
 	
                        INTERPOOL CHASSIS FUNDING, LLC
 (f/k/a Interpool Funding 2000, L.L.C.)
 
	
       
 	
       
 	
                         
 	
       
 	
      By: 
 	
                        
 Interpool, Inc.,
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                        Its Managing Member
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        By: 
 	
      
 /s/ Mitchell I. Gordon
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Mitchell I. Gordon
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
  Executive Vice President and Chief
 Financial Officer
 

 

 

	
                         
 	
                         
 	
                         
 	
                        INTERMODAL CHASSIS
 ISSUANCE, LLC
 
	
       
 	
       
 	
                         
 	
       
 	
      By: 
 	
                        
 GSS Holdings (ICI), Inc.,
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                        Its Managing Member
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        By: 
 	
      

      /s/ Andrew L. Stidd
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Andrew L. Stidd
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
  President
 

 

 

	
                         
 	
                         
 	
                         
 	
                        INTERPOOL, INC.,
 as Servicer
 
	
                         
 	
                         
 	
                         
 	
                         
 	
      By: 
 	
                        
 /s/ Mitchell I. Gordon
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Mitchell I. Gordon
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
  Executive Vice President and Chief
 Financial Officer
 

 

 

 

 

	
                         
 	
                         
 	
                         
 	
                        JPMORGAN CHASE BANK (f/k/a The Chase Manhattan Bank), not in its individual capacity (except as expressly set forth herein), but solely as the ICF Indenture Trustee
 
	
                         
 	
                         
 	
                         
 	
                         
 	
      By: 
 	
                        
 /s/ Craig M. Kantor
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Craig M. Kantor
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
  Vice President
 

 

 

 

 

	
                         
 	
                         
 	
                         
 	
                        WACHOVIA SECURITIES INC.,
 (f/k/a First Union Securities, Inc.)
 as Administrative Agent
 
	
                         
 	
                         
 	
                         
 	
                         
 	
      By: 
 	
                        
 /s/ Jack T. Wagler
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Jack T.Wagler
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
  Director
 

 

 

 

E-3

 

 

 

APPENDIX A

GLOSSARY OF PRINCIPAL DEFINED TERMS

1933 Act: The Securities Act of 1933, as amended from time to time.

Accountants’ Report: Means the report described in Section 5.02 of the Servicing Agreement.

Accumulated Depreciation: As of any date of determination, the aggregate Monthly Equipment Depreciation for each item of Equipment allocated to a Certificate pledged under the ICF Indenture or subject to a Lease. With respect to an item of Equipment allocated to any such Certificate, the Accumulated Depreciation shall accumulate from the related manufacture date or remanufacture date.

Acquisition Schedule: Shall have the meaning set forth in the related SUBI Supplement.

Additional Amount: This term shall have the meaning set forth in Section 2.5 of the Note Purchase Agreement.

Additional Asset Transfer Form: An agreement for transfer of Additional Assets in the form of Exhibit F to each Transfer Agreement.

Additional Asset: Means any Transferred Assets (other than Replacement Assets) transferred to the Trust on any Transfer Date after the Closing Date, including, but not limited to, each Additional Contract, Additional Equipment and the Related Assets thereto.

Additional Contracts: Each separate lease agreement and each lease schedule, subschedule, summary schedule or supplement, amendment and other modification thereto (including any master lease insofar as the same relates to any such schedule or supplement), but excluding Replacement Contracts, conveyed subsequent to the Closing Date by a Seller to ICF, a Lessor or the Trust and allocated to a Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be).

Additional Equipment: Equipment that is transferred to the Trust on any Transfer Date other than the Closing Date pursuant to a Transfer Agreement and allocated to a Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be).

Additional Insureds: Has the meaning set forth in Section 6.08 of the Servicing Agreement.

Adjusted Equipment Value: The Equipment Value of each item of Eligible Equipment less (A) the aggregate Accumulated Depreciation calculated with respect to such Eligible Equipment as of the end of the immediately preceding Collection Period plus (B) with respect to any Eligible Equipment transferred prior to the occurrence of an Amortization Event or a Revolving Period Termination Event, the direct cost of any accession in connection with the refurbishment of any item of such Eligible Equipment since the related remanufacture date of

 

 

such item of Eligible Equipment; provided that the Adjusted Equipment Value for an item of Eligible Equipment shall not exceed the related Category Value; provided further that for any item of Equipment that is not Eligible Equipment, the Adjusted Equipment Value of such item of Equipment shall be zero.

Administrative Agent: Wachovia Securities, Inc. (f/k/a First Union Securities, Inc.) and its permitted successors and assigns.

Administrative Agent Fee: This term shall have the meaning set forth in the Administration Agreement.

Administration Agreement: means the Amended and Restated Administration Agreement, dated as of March 1, 2002 and amended and restated as of September 1, 2002, between the Administrative Agent, ICF, ILFT, each other Lessor made a party thereto from time to time and ICI, as such agreement may be amended, supplemented and otherwise modified from time to time.

Advance: Either, as applicable, (i) an advance of funds (less any necessary Principal Adjustments) made by the ICI Noteholders to ICI on an Advance Date in accordance with the terms of the ICI Indenture and the related Note Purchase Agreement or (ii) an advance of funds made by the ICF Noteholders to ICF on an Advance Date in accordance with the terms of the ICF Indenture.

Advance Date: Each Series Issuance Date and each other date set forth in the related Supplement to the ICI Indenture.

Advance Rate: As long as the Rating Agency Condition is satisfied, unless otherwise agreed to by the ICI Global Requisite Majority and the Servicer, the rate set forth in the Series 2003-1 Supplement to the ICI Indenture, dated as of the Closing Date, by and among ICI, the Servicer, the Administrative Agent and the ICI Indenture Trustee, or such lower rate as set forth in the most recently executed and delivered Supplement to the ICI Indenture for the creation of a Series of ICI Notes.

Affected Trust Asset: This term shall have the meaning set forth in Section 7.1(c) of the Trust Agreement.

Affiliate: With respect to any Person, any other Person directly or indirectly controlling, controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control”, when used with respect to any specified Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

Allocation Methodology: The sum of the Senior Principal Allocation and the Junior Principal Allocation will be allocated to each Series of ICI Notes in the following order of priority:

 

 

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FIRST: to (a) the aggregate ICI Minimum Principal Amount then due and payable and (b) any reimbursement amounts due and payable to a Series Enhancer in respect of any payments made by any Series Enhancer in respect of any unpaid and owing ICI Minimum Principal Amount of a Series of ICI Notes will be distributed to such Series Enhancer based on the rights such Series of ICI Notes would have had in the absence of such reimbursement;

SECOND: to (a) the aggregate ICI Scheduled Principal Amount then due and payable and (b) any reimbursement amounts due and payable to a Series Enhancer in respect of any payments made by a Series Enhancer in respect of the ICI Scheduled Principal Amount of a Series of ICI Notes will be distributed to such Series Enhancer based on the rights such Series of ICI Notes would have had in the absence of such reimbursement; and

THIRD: first, to each series of ICI Notes (other than any Warehouse Notes for which the related Conversion Date has not occurred and is continuing) any prepayment amounts pursuant to Section 702(a) of the ICI Indenture and second to all Outstanding Warehouse Notes, pro rata, until paid in full; provided, that, if a Potential Amortization Event, an Amortization Event, a Potential ICI Event of Default or an ICI Event of Default has occurred and is continuing, then such amounts shall be allocated to all Outstanding Series of ICI
Notes, pro rata, until paid in full; provided, further, that all reimbursement amounts due and payable to a Series Enhancer in respect of any payments made by a Series Enhancer in respect of any unpaid and owing principal of a Series of ICI Notes will be distributed to such Series Enhancer based on the rights such Series of ICI Notes would have had in the absence of such payments made by the Series Enhancer.

If on any Payment Date on which no ICI Event of Default is then continuing there are not sufficient ICI Available Funds to pay in full the ICI Minimum Principal Amounts and/or ICI Scheduled Principal Amounts owing to all Series of ICI Notes then Outstanding, then principal payments having the same payment priority will be paid, to the extent of amounts then due for each Series of ICI Notes in chronological order based on their respective dates of issuance; provided that any Warehouse Note will be deemed to have its issuance date be the related Conversion Date. If two or more Series of ICI Notes were issued on the same date or, with respect to the Warehouse Notes, have a Conversion Date occur on the same date, then ICI Minimum Principal Amounts and ICI Scheduled Principal Amounts will be allocated
among such Series of ICI Notes pro rata based on the respective principal payment amounts then due.

Amortization Event: This term has the meaning set forth in Section 1201 of the ICI Indenture.

Amortization Period: The period commencing upon the occurrence of an Amortization Event and ending on the earlier of (i) the date on which the ICI Indenture is discharged in accordance with its terms and (ii) the date on which an ICI Event of Default occurs and all principal on the ICI Notes becomes due and payable.

Applicable Law: With reference to any Person, all laws, ordinances, treaties, judgments, decrees, injunctions, writs and orders of any court, governmental agency or authority and rules,

 

 

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regulations, orders, directives, licenses and permits of any Governmental Authority applicable to such Person or its property or in respect of its operations.

Applicable Margin: Initially, one percent (1.0%); provided, however, that the Applicable Margin may be modified with the consent of the ICI Global Requisite Majority and satisfaction of the Rating Agency Condition.

Appraisal: Means an appraisal by an Eligible Appraiser, which shall relate to the physical condition of the Equipment, taking into account, but not limited to, such considerations as type of equipment, original year of manufacture and any refurbishment of such equipment; provided that such Appraisal shall be approved by each ICF Control Party.

Appraised Value: Means an amount, determined by Appraisals, equal to the value that would be obtained in an arm’s-length, cash transaction between willing, able and knowledgeable parties, acting prudently, with an absence of duress and with a reasonable period of time available for marketing, adjusted to account for the maintenance status of each item of Equipment. In determining such value for Equipment, three Appraisals shall be obtained from the three Eligible Appraisers, and the Appraised Value shall be the lesser of the average or the median of such three Appraisals or as otherwise agreed to by the ICF Global Requisite Majority so long as the Rating Agency Condition is satisfied. With respect to Equipment transferred to the Trust on the Closing Date, the Appraised Value shall be as set forth in the Master List.

Assignment and Assumption Agreement: Means the Assignment and Assumption Agreement by and between ICF, as transferor, and ILFT, as transferee, relating to the transfer of the SUBI B Certificate and any other Certificate specified therein.

Authorized Officer: With respect to any matter, any officer of or other Person who is authorized to act for an entity.

Bankruptcy Code: The Bankruptcy Reform Act of 1978, as amended from time to time, and any successor statute thereto.

Bankruptcy Remote Warehouse Provider: Means a bankruptcy remote special purpose vehicle (e.g., VFCC) that is an ICI Noteholder.

Base Rate: Shall have the meaning set forth in the related Supplement to the ICI Indenture.

Basic Rent: Shall have the meaning set forth in the related Lease.

Book Entry Custodian: The Person appointed pursuant to the terms of the ICI Indenture to act in accordance with a certain Letter of Representations agreement such person has with DTC, in which DTC delegates its duties to maintain the Book-Entry Notes to such Person and authorizes such Person to perform such duties.

 

 

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Book Entry Notes: Each ICF Note or ICI Note for so long as such ICF Note or ICI Note (as the case may be) is registered in the name of its depository or its nominee in accordance with the terms and conditions of the ICF Indenture or the ICI Indenture (as the case may be).

Borrowing Base: As of any date of determination, an amount equal to the sum of (I) the product of the Advance Rate and the Adjusted Equipment Value of all Eligible Equipment beneficially owned by ICF or a Lessor as of such date of determination, in each case in compliance with the Concentration Limits (without regard to the User Concentration Limits), plus (II) 100% of the amounts on deposit in immediately available funds in the ICF Cash Collateral Account and the ICF Deposit Account as of such date of determination after giving effect to all deposits to and withdrawals from each such account as of such date of determination, minus (III) the amount of all Security Deposits required
to be and not transferred to or on deposit in the Security Deposit Account, minus (IV) the aggregate Senior Equity Stipulated Loss Amounts as of such date of determination as set forth in each outstanding Lease minus (IV) the outstanding principal balance of any Lessor Notes where the holder of such Lessor Notes is a Person other than ICI.

Breakage Costs: Any amount or amounts as shall compensate an ICI Noteholder for any loss, cost or expense incurred by such ICI Noteholder in connection with funding obtained by it with respect to an Advance as a result of the failure of a requested Advance to be made when requested, a prepayment by ICI of principal or interest pursuant to the terms of any of the ICI Indenture, the Note Purchase Agreement or any liquidity purchase agreement.

Business Day: (i) Any day other than a Saturday, a Sunday or a day on which banking institutions in New York City, Charlotte, North Carolina, or the city in which the Corporate Trust Office of the ICI Indenture Trustee is located are authorized or are obligated by law, executive order or governmental decree to be closed and (ii) if the applicable Business Day relates to any computation or payment to be made with respect to One-Month LIBOR, any day on which dealings in dollar deposits are carried on in the London Interbank Market.

Business Trust Statute: This term shall have the meaning set forth in Section 1.1 of the Trust Agreement.

Casualty Account: The account established pursuant to Section 301 of the ICF Indenture.

Casualty Loss: With respect to any Equipment, any of the following: (i) damage to such Equipment beyond repair, (ii) requisition of such Equipment by any Governmental Authority, (iii) the total loss or destruction of such Equipment or (iv) it becomes not roadworthy and such condition is not remedied within ninety (90) days unless the Servicer has deposited the amount necessary to make such item of Equipment roadworthy into the Casualty Account.

Casualty Payment: Any payment under a Contract in connection with a Casualty Loss that terminates all or a portion of the User’s obligation to make subsequent Contract Payments pursuant to the terms thereof.

 

 

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Category Value: Means the amount equal to the purchase price that would be paid by Interpool for a new item of similar Equipment.

Certificate: A SUBI Certificate or a UTI Certificate.

Certificate Register: This term shall have the meaning set forth in Section 4.3(c) of the Trust Agreement.

Certificate Registrar Office: Shall have the meaning set forth in Section 4.3 of the Trust Agreement.

Certificate of Title: This term shall have the meaning set forth in Section 2.1 of the Trust Agreement.

Certificateholder: At any time, any Person in whose name a Certificate is registered in the Certificate Register.

Change of Control: With respect to Interpool or the Servicer, as the context may require, the occurrence of any of the following events subsequent to the Closing Date: (a) any “person” or “group” (as such terms are used in Section 13(d) and 14(d) of the Securities Act), other than (i) the holders of the voting stock on the Closing Date, or (ii) any subsidiary of Interpool (or the Servicer) or (iii) any other Person who or which is a spouse, widow, widower, lineal descendant, sibling or the issue of any of the foregoing or a heir or legatee of any holder of the voting stock on the Closing Date (or any trust, partnership or other estate planning vehicle established for the benefit of any of the foregoing), directly or indirectly, owns more than forty-nine percent (49%) of the aggregate voting power of all classes of
voting stock of Interpool (or the Servicer); (b) Interpool (or the Servicer) amalgamates or consolidates with, or merges with or into, another Person or sells, assigns, conveys, transfers, leases or otherwise disposes of all, or substantially all, of its assets to any Person, or Interpool (or the Servicer) amalgamates or consolidates with, or merges with or into, such Person, in any such event pursuant to a transaction in which the outstanding voting stock of all classes of Interpool (or the Servicer) is converted into or exchanged for cash, securities or other property, other than any such transaction in which (i) the outstanding voting stock of each class is converted into or exchanged for (1) voting stock (other than redeemable capital stock) of the surviving or transferee company or corporation, or (2) cash, securities and other property in an amount which could be paid by Interpool (or the Servicer) as a restricted payment under the terms of any agreement to which Interpool (or
the Servicer) is a party relating to Indebtedness of Interpool (or the Servicer), and (ii) the holders of each class of the voting stock of Interpool (or the Servicer), immediately prior to such transaction own, directly or indirectly, not less than a majority of each class of the voting stock of the surviving or transferee company or corporation immediately after such transaction; or (c) any order, judgment or decree shall be entered against Interpool (or the Servicer), decreeing the dissolution or liquidation of Interpool (or the Servicer), and shall not be discharged for a period in excess of sixty (60) days after the date on which any period for appeal has expired and during which a stay of enforcement of such judgment, order or decree has not been in effect.

 

 

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Charges: All federal, state, county, city, municipal, local, foreign or other governmental taxes (including income or franchise taxes), levies, assessments, charges or claims, in each case then due and payable, upon or relating to (a) the ICI Collateral, ICF Collateral or Lessor Collateral, (b) employees, payroll, income or gross receipts of ICI, ICF, a Lessor, the Trust, any Seller or Servicer, (c) ownership or use of any of the properties or assets of ICI, ICF, a Lessor, the Trust, any Seller or Servicer or (d) any other aspect of the business of ICI, ICF, a Lessor, the Trust, any Seller or Servicer.

Chassis: The supporting frame, axles, wheels and tires of a non-automotive vehicle designed to be hauled by road exclusive of any container or other housing attached thereon.

Claims: This term shall have the meaning set forth in Section 5.5 of the Trust Agreement.

Class: With respect to any Series of ICI Notes, all ICI Notes having the same rights to payment under the related Supplement to the ICI Indenture and, with respect to any ICF Notes, all ICF Notes having the same rights to payment under the ICF Indenture.

Closing Date: September 30, 2002.

Code: The Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto.

Collection Accounts: The ICF Collection Account, the ICI Collection Account and each Lessor Collection Account, as the case may be.

Collection Period: With respect to any Payment Date, the period from the first day of the calendar month immediately preceding the month in which such Payment Date occurs through the last day of such immediately preceding calendar month; provided that the initial Collection Period with respect to any Series shall be from the Closing Date (as defined in the related Supplement to the ICI Indenture) through the last day of the calendar month immediately preceding the month in which such Payment Date occurs.

Commercial General Liability Insurance Policy: The commercial general liability insurance policy issued by various underwriters described thereon, a copy of which is attached as Exhibit B to each Transfer Agreement, or any other replacement policy thereto that is substantially similar to it.

Competitor: Any Person engaged and competing with ICI, ICF, a Lessor, any Seller, Interpool, TLI, TL Canada or the Servicer in the Equipment leasing business; provided, however, that in no event shall any insurance company, bank, bank holding company, savings institution or trust company, fraternal benefit society, pension, retirement or profit sharing trust or fund, or any collateralized bond obligation fund or similar fund (or any trustee of any such fund) or any holder of any obligations of any such fund (solely as a result of being such a holder) be deemed to be a Competitor.

 

 

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Concentration Limits: The concentration limits set forth in Section 3.01(a)(viii) of the Transfer Agreement together with the User Concentration Limits.

Confidential Information: In relation to any Person, any written information delivered or made available by, or on behalf of, ICI, ICF, any Lessor, any Seller, Interpool, TLI, TL Canada or the Servicer to such Person in connection with or pursuant to any ICI Relevant Document or the transactions contemplated thereby which is proprietary in nature and clearly marked or identified in writing as being confidential information, other than information (i) which was publicly known, or otherwise known by such Person at the time of disclosure (except pursuant to disclosure in connection with any of the foregoing agreements), (ii) which subsequently becomes publicly known through no act or omission by such Person or (iii) which otherwise becomes known to such Person other than through disclosure by ICI, ICF, any Lessor, any Seller, Interpool,
TLI, TL Canada and, if the Servicer is an Affiliate of Interpool, TLI, TL Canada or the Servicer.

Contract: Any portion or all, to the extent related to Equipment conveyed to the Trust for allocation to a Certificate pledged under the ICF Indenture or subject to a Lease or to ICF or a Lessor, of an Original Contract, a Replacement Contract or an Additional Contract; provided however, that, from and after the date on which a Contract is repurchased from the Trust, ICF or a Lessor by a Seller (or its Affiliate or designee) or is otherwise replaced by a Replacement Contract pursuant to a Transfer Agreement, such Contract shall no longer be deemed to be a Contract under the ICF Relevant Documents or related Lessor Relevant Documents (as the case may be).

Contract Default: An event of default by a User under a Contract.

Contract File: Means with respect to any Contract allocated to a Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be), the related Lease File (as defined in the related SUBI Supplement).

Contract Payment: With respect to any Contract and any Collection Period: (i) if such Contract provides for fixed payments and is not then subject to a Qualified Currency Hedge, the minimum monthly or other periodic contractual payment to be made by the related User for the use of the related Equipment in accordance with the terms of such Contract; (ii) if such Contract is then the subject of a Qualified Currency Hedge, the amount of Dollars to be received by ICF or the related Lessor in respect of such Contract in such Collection Period pursuant to such Qualified Currency Hedge; (iii) with respect to any Contract that is not then subject to a Qualified Currency Hedge and for which Contract Payments payable by the related User thereunder will vary based on changes in a specified interest rate, an amount equal to the sum
of (x) the required principal payment for such Collection Period as specified in such Contract and (y) the product of (A) the remaining unpaid principal balance of such Contract and (B) the margin (stated as a percentage) payable by the related User plus the specified interest rate.

Conversion Date: With respect to any Series of Warehouse Notes, this term shall mean the earlier of (x) a Revolving Period Termination Event and (y) the date on which the

 

 

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commitment to make further Advances has terminated and such Series of ICI Notes begins to amortize, as set forth in the related Supplement to the ICI Indenture.

Corporate Trust Office: The principal office of the Paying Agent, the ICF Indenture Trustee or the ICI Indenture Trustee, as the case may be, at which at any particular time its corporate trust business shall be administered, which office on the Closing Date is located at 450 West 33rd Street, New York, New York 10001.

Corporate Trust Officer: Any Assistant Vice President, Vice President, President or Trust Officer of the ICF Indenture Trustee or the ICI Indenture Trustee, as the case may be, or other officer who customarily performs functions similar to those performed by the Persons who at the time shall be such officers to whom any corporate trust matter is referred because of their knowledge of and familiarity with the particular subject.

Counterparty Collateral Account: The account or accounts established pursuant to Section 635(d) of the ICF Indenture.

Credit Policy: Interpool’s credit and collection policy as set forth in Exhibit G to the Interpool Transfer Agreement.

Currency Hedge Counterparty: In the singular, any one of, and in the plural, all of the Eligible Currency Hedge Counterparties, their successors and assigns which have entered into a Qualified Currency Hedge.

Currency Hedge Counterparty Minimum Rating Downgrade Event: So long as an ICI Control Party requires it, the assignment of a long-term rating of either BBB+ or lower by S&P, or Baa1 or lower by Moody’s with respect to the unsecured and unsubordinated debt, deposit or letter of credit obligations of a Currency Hedge Counterparty (or any party providing credit support on its behalf).

Currency Hedge Counterparty Required Rating Downgrade Event: So long as an ICI Control Party requires it, the assignment of a long-term rating of either BBB or lower by S&P, or Baa2 or lower by Moody’s with respect to the unsecured and unsubordinated debt, deposit or letter of credit obligations of a Currency Hedge Counterparty (or any party providing credit support on its behalf).

Custodian: With respect to any Contract, Lease File or related Equipment allocated to a Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be), the related Custodian (as such term is defined in the related UTI Supplement or SUBI Supplement, as the case may be).

Cut-off Date: With respect to each Transfer Date or Payment Date, as the case may be, the last day of the calendar month immediately preceding such Transfer Date or Payment Date, as the case may be.

Dealer: This term shall have the meaning set forth in Section 2.1(a) of the Trust Agreement.

 

 

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Dealer Agreements: With respect to any Equipment, the related Dealer Agreement (as such term is defined in Section 2.1(a) of the Trust Agreement).

Defaulted Contract: A Contract as to which any of the following is true: (a) the Servicer has reasonably determined, in its sole discretion and in accordance with the Servicing Standard that the remaining Contract Payments with respect to such Contract are fully or partially uncollectible, or (b) any Contract Payment (or portion thereof) payable under such Contract is more than 120 days outstanding from the invoice date.

Definitive ICI Note: Any ICI Note issued in definitive form pursuant to the terms and conditions of Section 202 of the ICI Indenture.

Delinquent Contract: A Contract, other than a Defaulted Contract, transferred to the Trust for allocation to a Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be), where any Contract Payment (or portion thereof) payable under such Contract is more than 90 days outstanding from the invoice date.

Depository: The Depository Trust Company until a successor Depository shall have become such pursuant to the applicable provisions of the ICI Indenture (as the case may be) and thereafter “Depository” shall mean or include each Person who is then a Depository thereunder. For purposes of the ICI Indenture (as the case may be), unless otherwise specified pursuant to the terms and conditions thereof, any successor Depository shall, at the time of its designation and at all times while it serves as Depository, be a clearing agency registered under the Exchange Act, and any other applicable statute or regulation.

Depository Participants: A broker, dealer, bank, other financial institution or other Person for whom from time to time the Depository effects book-entry transfers and pledges of securities deposited with the Depository.

Determination Date: The fourth Business Day immediately preceding a Payment Date.

Direct Operating Expense: Means any direct out-of-pocket Operating Expense incurred by the Servicer on behalf of ICF or a Lessor in connection with the servicing of the Equipment allocated to a Certificate pledged under the ICF Indenture or subject to a Lease and the related ICF Collateral and Lessor Collateral (as the case may be) as such servicing responsibilities are set forth in the Servicing Agreement; provided that any costs or fees incurred in connection with a Major Repair of an item of Equipment shall not be deemed a Direct Operating Expense. For the avoidance of doubt, any costs, fees or expenses incurred in connection with any return condition requirements under a Lease (other than care and maintenance in accordance with the Servicing Standard) or
any other extraordinary requirements set forth in a Lease shall not be deemed a Direct Operating Expense.

Discount Rate: Means the internal rate of return under a Contract based on the number of remaining periodic payments, the amount of each periodic payment and the Appraised Equipment Value of the item of Equipment subject thereto.

 

 

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Discounted Contract Balance: Means, with respect to any Contract, on any date of determination, an amount equal to the sum of (a) the present value of each remaining Contract Payment to become due under such Contract  before the last day of the month prior to the month of the ICI Legal Maturity Date, discounted monthly from the last day of the Collection Period in which such Contract Payment is to become due at a rate equal to one-twelfth (or with respect to the period from the Closing Date to but excluding the initial Payment Date, a fraction, the numerator of which is equal to the number of days from the Closing Date to but excluding the initial Payment Date, and the denominator of which is equal to 360) of the Discount Rate and (b) one hundred percent (100%) of the unpaid balance, as of such date of determination of Contract Payments
due with respect to such Contract which were not the subject of a Servicer Advance; provided, however, any Purchase Option Payments shall not be included in the Discounted Contract Balance. For purposes of calculating the Discounted Contract Balance of a Contract, any Contract Payment for which the Seller received on or prior to the Cut-off Date a Security Deposit or an advance payment shall be deemed to be zero.

Dollars or $: The lawful currency of the United States of America.

Due Date: With respect to any Contract and any Collection Period, the day of the month (or other applicable period) in which a Contract Payment is due on such Contract, exclusive of any days of grace.

EBIT: For any relevant period, an amount equal to all earnings (loss) before Interest Expense and taxes of a Person and its consolidated subsidiaries as determined in accordance with GAAP, including gains and losses from the sale of assets and foreign currency transactions; provided, however, that  such calculation shall exclude any recognized losses related to any payoff or termination of any swap or interest rate hedge agreement, including, but not limited to, any early termination amounts or breakage costs.

EBITDA: For any relevant period, an amount equal to all earnings (loss) before Interest Expense, taxes and depreciation and amortization, of Interpool, Inc. and its consolidated subsidiaries as determined in accordance with GAAP, including gains and  losses from the sale of assets and foreign currency transactions and; provided, however, that such calculation shall exclude any recognized losses related to any payoff or termination of any swap or interest rate hedge agreement including, but not limited to, any early termination amounts or breakage costs.

EBIT Ratio: Means the ratio of (a) EBIT to (b) Interest Expense, in each case on a rolling four quarter basis.

Eligible Account: A segregated account maintained with one of the following: (a) with respect to the ICF Indenture, the ICF Indenture Trustee, with respect to a Lessor Indenture, the related Lessor Indenture Trustee and, with respect to the ICI Indenture, the ICI Indenture Trustee, (b) a depository institution or trust company, with a capital and surplus of not less than $250,000,000, whose long term unsecured debt obligations are rated at least “A” by S&P or “A2” by Moody’s and whose deposits are insured by the Federal Deposit Insurance Corporation or (c) a federally or state chartered depository institution, with a capital and surplus of not less than $250,000,000, subject to regulations regarding fiduciary funds on deposit substantially similar to 12 C.F.R. § 9.10(b).

 

 

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Eligible Appraiser: The following appraisers: (i) for so long as they are independent of any member of the Interpool Group: Marshall & Stevens Incorporated, Valuation Research Corporation and American Appraisal Associates and (ii) any other independent appraiser approved by the ICI Global Requisite Majority or, if the ICI Indenture has been satisfied and discharged in full, the ICF Global Requisite Majority.

Eligible Contract: Any Contract owned by (i) the Trust and allocated to a Certificate pledged under the ICF Indenture or subject to a Lease or (ii) ICF or a Lessor that, in each case, as of the relevant date of determination, meets all of the following conditions: (x) such Contract is not classified as a Defaulted Contract and (y) such Contract satisfies all of the applicable Transferred Assets Representations and Warranties.

Eligible Currency Hedge Counterparty: (A) At the time of execution and delivery of the related Qualified Currency Hedge, any bank or other financial institution (or any party providing credit support on such Person’s behalf) that has (x) a long-term unsecured debt rating of at least “A” from S&P and “A2” from Moody’s and (y) a short-term unsecured debt rating of “A-1” from S&P and “P-1” from Moody’s or is otherwise approved by each ICI Control Party and satisfies the Rating Agency Condition and (B) thereafter, any bank or other financial institution (or any party providing credit support on such Person’s behalf) that has not suffered a Currency Hedge Counterparty Required Rating Downgrade Event.

Eligible Equipment: Any item of Equipment owned by the Trust and allocated to a Certificate issued to ICF or a Lessor (which Certificate is pledged under the ICF Indenture or subject to a Lease and is subject to a first priority perfected security interest in favor of the related Indenture Trustee), that, in each case, as of each relevant date of determination, meets all of the following conditions: (A) such item of Equipment is not a Predecessor Asset (whether as a result of a sale or substitution) and (B) such item of Equipment satisfies all of the applicable Transferred Assets Representations and Warranties as of the related Transfer Date and any other relevant date of determination.

Eligible Interest Rate Hedge Counterparty: (A) At the time of execution and delivery of the related Interest Rate Hedge Agreement, any bank or other financial institution (or any party providing credit support on such Person’s behalf) that has (x) a long-term unsecured debt rating of at least “A” from S&P and “A2” from Moody’s and (y) a short-term unsecured debt rating of “A-1” from S&P and “P-1” from Moody’s or is otherwise approved by each ICI Control Party for any Floating Rate ICI Notes and satisfies the Rating Agency Condition and, (B) thereafter, any bank or other financial institution (or any party providing credit support on such Person’s behalf) that has not suffered an Interest Rate Hedge Counterparty Required Rating Downgrade Event.

Eligible Investments: Means any one or more of the following types of investments:

(i) marketable obligations of the United States, the full and timely payment of which are directly backed by the full faith and credit of the United States;

 

 

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(ii) marketable obligations, the full and timely payment of which are directly and fully guaranteed by the full faith and credit of the United States;

(iii) bankers’ acceptances and certificates of deposit and other interest-bearing obligations denominated in dollars and issued by any bank with capital, surplus and undivided profits aggregating at least $100,000,000, the short-term securities of which are rated at least “A-1” by S&P and “P-1” by Moody’s;

(iv) repurchase obligations with a term of not more than ten days for underlying securities of the types described in clauses (i), (ii) and (iii) above entered into with any bank of the type described in clause (iii) above;

(v) commercial paper rated at least “A-1” by S&P and “P-1” by Moody’s;

(vi) demand deposits, time deposits or certificates of deposit of depository institutions or trust companies incorporated under the laws of the United States or any state thereof (or domestic branches of any foreign bank) and subject to supervision and examination by federal or state banking or depository institution authorities; provided however, that at the time such investment, or the commitment to make such investment, is entered into, the short-term debt rating of such depository institution or trust company shall be at least “A-1” by S&P and “P-1” by Moody’s; and

(vii) mutual funds commonly known as “Money Market Funds” of Investment Companies (as defined in the Investment Company Act of 1940) regulated under the Investment Company Act of 1940 as amended, which money market funds invest substantially all of their assets in securities of the types described in paragraphs (i) through (vi) above.

Any such Eligible Investment may be purchased by or through the ICF Indenture Trustee, a Lessor Indenture Trustee or the ICI Indenture Trustee, as the case may be, or any of its Affiliates. A Security Entitlement with respect to any of the foregoing held in an ICF Securities Account, a Lessor Securities Account or an ICI Securities Account shall constitute an Eligible Investment. Each such Eligible Investment shall mature no later than the Business Day immediately preceding the next Payment Date.

Enhancement: Any Series Enhancement, Lessor Note Enhancement or Lease Enhancement.

Enhancement Agreement: Any agreement, instrument or document governing the terms of any Enhancement or pursuant to which any Enhancement is issued or outstanding.

Enhancer: Any Series Enhancer, Lessor Note Enhancer or Lease Enhancer.

Entitlement Order: Has the meaning set forth in Section 8-102(a)(8) of the Uniform Commercial Code in the State of New York.

 

 

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Equipment: Any Equipment (as such term is defined in Section 2.1 (a) of the Trust Agreement) allocated to a Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be).

Equipment Insurance Policy: With respect to any item of Equipment, an insurance policy covering physical damage to the related Equipment or covering any liabilities arising from the related Equipment or use thereof.

Equipment Insurance Proceeds: Proceeds paid by any Equipment insurer pursuant to any Equipment Insurance Policy covering an item of Equipment or the related Contract, net of the reasonable costs of collecting such proceeds which are not otherwise reimbursed; provided, however, that with respect to Equipment Insurance Proceeds related to liability insurance, such amounts shall be treated as an Excluded Amount for purposes of (x) the ICF Relevant Documents to the extent such amounts are not payable to the ICF Indenture Trustee or the ICF Noteholders and (y) the ICI Relevant Documents to the extent such amounts are not payable to the ICI Indenture Trustee or the ICI Noteholders.

Equipment Value: Means, with respect to Equipment that is the subject of an Appraisal, the Appraised Value and with respect to any other Equipment acquired from a seller, manufacturer or vendor, the Original Net Book Value; provided, that with the consent of the ICI Global Requisite Majority and satisfaction of the Rating Agency Condition, the Equipment Value for Equipment that is purchased from a manufacturer or vendor may be the Appraised Value.

ERISA: The Employee Retirement Income Security Act of 1974, as amended from time to time.

ERISA Affiliate: Any entity controlled by, controlling or under common control with a Person within the meaning of Section 4001(b)(1) of ERISA or Section 4001(a)(14) of ERISA or under Section 412(n)(6) of the Code.

Excepted Persons: The external accountants, attorneys and agents of a Person.

Excepted Property: Has the meaning set forth in the related Lessor Relevant Documents.

Excepted Rights: Has the meaning set forth in the related Lessor Relevant Documents.

Exchange Act: The Securities Exchange Act of 1934, as amended from time to time.

Excluded Amounts: All of the following: (i) any payments received from a User in connection with any late charges, taxes, fees or other charges imposed by any Governmental Authority or (ii) any indemnity payments made by a User for the benefit of any Person other than the ICF Indenture Trustee, a Lessor Indenture Trustee, a Lease Enhancer, a Lessor Note Enhancer, the Administrative Agent, a Lessor’s noteholders (including any pledgee thereof) or the ICF Noteholders (including any pledgee thereof) pursuant to a liability Equipment Insurance Policy, as applicable.

 

 

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Existing Commitment: With respect to any Series of ICI Notes, the aggregate Initial Commitment to issue ICI Notes, consisting of one or more classes, expressed as a dollar amount, as set forth in the related Supplement to the ICI Indenture and as reduced from time to time in accordance with the related Supplement to the ICI Indenture; provided that, on the Conversion Date of any Warehouse Notes, the Existing Commitment shall be the then outstanding principal balance of such Warehouse Notes.

Expected Maturity Date: With respect to any Series of ICI Notes, the date on which the ICI Scheduled Targeted Principal Balance is expected to be equal to zero. The Expected Maturity Date for a Series of ICI Notes shall be set forth in the related Supplement to the ICI Indenture.

Federal Funds Rate: As of any date of determination, for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted average of the federal funds rates and confirmed in Federal Reserve Board Statistical Release H.15 (519) or any successor or substitute publication selected by the ICI Indenture Trustee (or, if such day is not a Business Day, for the next preceding Business Day), or, if, for any reason, such rate is not available on any day, the rate determined, in the sole opinion of the ICI Indenture Trustee, to be the rate at which federal funds are being offered for sale in the national federal funds market at 9:00 a.m. (New York City time).

Federal Reserve Bank: One of the twelve regional banks operated by the Federal Reserve System established by the Federal Reserve Act of 1913 to regulate the U.S. monetary and banking system.

Finance Lease: Means any Contract that contains an end of term purchase option.

Financial Asset: Has the meaning set forth in Section 8-102(a)(9) of the Uniform Commercial Code in the State of New York.

Financing: This term shall have the meaning set forth in Section 5.1(a) of the Trust Agreement.

Financing Statement: A document duly signed and in proper form under applicable law to perfect the security interest of the secured party named therein in the personal property described therein, which is filed with the appropriate and necessary filing officials in the appropriate jurisdiction.

Fiscal Agent: Has the meaning set forth in the related Enhancement Agreement.

Floating Rate ICI Notes: ICI Notes bearing interest at a floating rate or based on a floating rate index.

Funding Date: Any date on which the outstanding principal balance of the ICF Notes is increased or the outstanding principal balance of the Permitted ICI Loan is decreased, in either case as a result of an increase of the ICI Aggregate Note Principal Balance.

 

 

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Generally Accepted Accounting Principles or GAAP: Those generally accepted accounting principles and practices, consistently applied, which are recognized as such by the American Institute of Certified Public Accountants acting through its Accounting Principles Board or by the Financial Accounting Standards Board or through other appropriate boards or committees thereof.

Global ICI Note: Either a Rule 144A Global ICI Note or a Public Global ICI Note.

Governmental Authority: This term shall mean (a) any federal, state, county, municipal or foreign government, or political subdivision thereof, (b) any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality or public body, (c) any court or administrative tribunal or (d) with respect to any Person, any arbitration tribunal or other non-governmental authority to whose jurisdiction that Person has consented.

Grant: Grant, bargain, convey, assign, transfer, mortgage, pledge, create and grant a lien upon and a security interest in and right of set-off against, deposit, set over and confirm, all for the purpose of creating a security interest therein and not to transfer title. Any Grant of collateral shall include all rights, powers, and options (but none of the obligations) of the related grantor with respect thereto, including, without limitation, the immediate and continuing right to claim for, collect, receive, and give receipts for any income and proceeds in respect of any of the related collateral and all other moneys payable in respect thereof, to give and receive notices and other communications, to make waivers, amendments or other agreements, to exercise all rights and options, to bring judicial proceedings in the name of the grantor
or otherwise and generally to do and receive anything that the grantor is or may be entitled to do or receive, including, without limitation, ICF as the Initial Beneficiary of the Trust.

ICF: Interpool Chassis Funding, LLC (f/k/a Interpool Funding 2000, L.L.C.), a Delaware limited liability company.

ICF Aggregate Note Principal Balance: For any date of determination, the sum of the outstanding principal balance of all ICF Notes then Outstanding.

ICF Asset Base: As of any date of determination, an amount equal to the sum of: (A) the amount on deposit in the ICF Cash Collateral Account after giving effect to all deposits to and withdrawals from the ICF Cash Collateral Account as of such date and (B) the aggregate Adjusted Equipment Value for all Eligible Equipment beneficially owned or leased by ICF and allocated to a SUBI pledged under either the ICF Indenture or subject to a Lease, in each case in compliance with the Concentration Limits (without regard to the User Concentration Limits) as of such date of determination, minus (C) the amount of all Security Deposits required to be and not transferred to and on deposit in the Security Deposit Account. For the avoidance of doubt, the value of any
Eligible Equipment in excess of the Concentration Limits (without regard to the User Concentration Limits) as of such date of determination or beneficially owned by a Lessor shall be deemed zero for the purpose of calculating the ICF Asset Base.

 

 

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ICF Asset Base Certificate: A certificate with appropriate insertions setting forth the components of the ICF Asset Base as of the last day of the month for which such certificate is submitted, which certificate shall be substantially in the form of Exhibit A to the ICF Indenture with any modifications reasonably requested thereto and shall be certified by a duly authorized officer of the Servicer.

ICF Available Funds: On any Determination Date, an amount in Dollars equal to the sum of (i) all ICF Collections on deposit in the ICF Collection Account as of the immediately preceding Cut-off Date, (ii) all outstanding Servicer Advances made with respect to Contract Payments due during the immediately preceding Collection Period, (iii) all income and proceeds in excess of the ICF Required Cash Collateral Amount on deposit in the ICF Cash Collateral Account, (iv) all income and proceeds from amounts earned on Security Deposits on deposit in the Security Deposit Account, (v) the amount of each Security Deposit applied against any amount payable by a User under a Contract, and (vi) all income and proceeds in excess of the ICF Required Deposit on deposit in the ICF Deposit Account. Notwithstanding the foregoing, the amount of ICF
Available Funds shall not be reduced by the amount of any investment loss which has occurred in any Eligible Investment purchased with moneys on deposit in the ICF Cash Collateral Account, moneys on deposit in the Security Deposit Account or ICF Collections either during such Collection Period or subsequent to such Collection Period and prior to such Determination Date.

ICF Cash Collateral Account: The account or accounts established pursuant to Section 307 of the ICF Indenture.

ICF Cash Flow Ratio: The ratio of (x) all Contract Payments less Operating Expenses less Servicing Fees to (y) the sum of all interest payments on all Series of ICI Notes, plus (minus) net payments on all Interest Rate Hedge Agreements (other than the ICI Swap), plus all fees paid to the Enhancers under the Enhancement Agreements, plus all fees paid to the Administrative Agent, plus all fees paid to each Lessor Indenture Trustee, the ICI Indenture Trustee and the ICF Indenture Trustee, plus the difference between (A) the outstanding Senior Stipulated Loss Value as of the end of the immediately preceding Collection Period and (B) the outstanding Senior Stipulated Loss Value as of the end of the end of the second preceding Collection Period, plus any paid Senior Equity Stipulated Loss Amounts and any paid equity portion of Basic Rent.

ICF Collateral: This term shall have the meaning set forth in the granting clause of the ICF Indenture.

ICF Collection Account: The account or accounts established pursuant to Section 301 of the ICF Indenture.

ICF Collections: With respect to any Collection Period, the sum of (i) all amounts received for such Collection Period by, or on behalf of, ICF, a Lessor, ICI, the Servicer, the Sellers or the Trust attributable to the Equipment, any related Contracts and any other Related Assets allocated to a Certificate pledged under the ICF Indenture or leased by ICF under a Lease, including, without limitation, Contract Payments, Residual Proceeds, Servicer Advances,

 

 

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Casualty Payments, Liquidation Proceeds, Equipment Insurance Proceeds, Prepayment Amounts, but excluding any Excluded Amounts, (ii) all payments received by ICF on any Qualified Currency Hedges then maintained by ICF, (iii) all payments received by ICF on each Interest Rate Hedge Agreement then maintained by ICF and (iv) all payments received by ICF under the ICI Swap (after giving effect to any payments to be made by ICF under the ICI Swap).

ICF Control Party: With respect to the ICF Notes, the ICI Global Requisite Majority and with respect to a Lease, unless otherwise provided in such Lease, the related Lessor Control Party.

ICF Default Interest: The weighted average of incremental interest specified in each outstanding Supplement to the ICI Indenture.

ICF Deposit Account: The account established pursuant to Section 309 of the ICF Indenture.

ICF Event of Default: Has the meaning set forth in Section 801 of the ICF Indenture.

ICF Global Requisite Majority: With respect to any action proposed to be taken pursuant to the ICF Indenture or any supplement thereto, exists as of any date of determination if (a) the ICF Control Parties representing a majority of the ICF Voting Interests then outstanding shall approve or direct such proposed action (in making such a determination, each ICF Control Party shall be deemed to have voted the entire outstanding principal balance of ICF Notes or the entire outstanding Senior Stipulated Loss Value of the related Lease in favor of, or in opposition to, such proposed action, as the case may be) and (b) each Lessor Note Enhancer or Lease Enhancer, as the case may be, that is an ICF Control Party representing at least twenty-five percent (25%) of the outstanding Senior Stipulated Loss Value under all Lessor Indentures
and for which in any event no Lessor Note Enhancer Default or Lease Enhancer Default (as the case may be) has occurred and is continuing, shall approve or direct such action and (c) so long as any ICF Secured Obligations remain outstanding, the ICI Global Requisite Majority, on behalf of the ICF Noteholders, shall approve or direct such proposed action.

ICF Holder: Has the meaning set forth in the definition of ICF Noteholder.

ICF Holding Account: The account established pursuant to Section 301 of the ICF Indenture.

ICF Indenture: The Second Amended and Restated Indenture, dated as of June 1, 2000, amended and restated as of March 1, 2002 and second amended and restated as of September 1, 2002, among ICF, the Servicer, the Administrative Agent and the ICF Indenture Trustee, as it may be supplemented, amended and otherwise modified from time to time in accordance with its terms.

ICF Indenture Trustee: The Person performing the duties of the ICF Indenture Trustee under the ICF Indenture, initially JPMorgan Chase Bank (f/k/a The Chase Manhattan Bank).

 

 

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ICF Indenture Trustee Fees: All fees payable by ICF under the Indenture Trustee Fee Letter.

ICF Legal Maturity Date: With respect to any ICF Notes, the date on which the unpaid principal balance of, and accrued interest on, the ICF Notes will be due and payable. The ICF Legal Maturity Date for an ICF Note shall in no event be earlier than one year and one day after the last installment of principal of and interest on the Series of ICI Notes with the latest ICI Legal Maturity Date and the last scheduled lease payment under any outstanding Lease.

ICF Note Junior Interest and Fees: On any Payment Date, the sum of (i) any Step Up Warehouse Interest then due and payable and (ii) in each case to the extent not already paid, any amounts due and payable to a Series Enhancer, an ICI Holder of Warehouse Notes or any ICI Control Party.

ICF Note Register: The register maintained by the ICF Indenture Trustee pursuant to Section 205 of the ICF Indenture.

ICF Note Registrar: The ICF Indenture Trustee pursuant to Section 205 of the ICF Indenture and any successor thereto in accordance with the terms and conditions of the ICF Indenture.

ICF Note Senior Interest and Fees: On any Payment Date, the sum of (i) all interest due and payable on the ICI Notes (excluding any Step Up Warehouse Interest), plus (ii) any fees or other amounts due and payable to each Series Enhancer of the ICI Notes (so long as no Series Enhancer Default has occurred and is continuing), plus (iii) any amounts due and payable by ICI on the ICI Swap, minus (iv) any amounts due and payable to ICI on the ICI Swap, minus (v) any interest due and payable on any Lessor Notes then owned by ICI.

ICF Noteholder or ICF Holder: At any time, any Person in whose name an ICF Note is registered in the ICF Note Register and any pledgee of such Person’s interest in the related ICF Note.

ICF Notes: Any one of the promissory notes or other securities executed by ICF and authenticated by or on behalf of the ICF Indenture Trustee, substantially in the form attached to the ICF Indenture.

ICF Notes Junior Principal Amount: On any Payment Date (x) on and after the occurrence and continuance of the related Conversion Date, the outstanding principal balance of such Warehouse Notes and (y) any principal prepayments of the ICI Notes.

ICF Notes Senior Principal Amount: On any Payment Date prior to the occurrence and continuance of an Amortization Event or ICI Event of Default, the excess of (i) the sum of (x) the aggregate ICI Scheduled Principal Amounts for all Series of ICI Notes due and payable on the related Payment Date and (y) the ICI Supplemental Principal Amounts for all Series of ICI Notes due and payable on the related Payment Date over (ii) the aggregate principal due and payable on the related Payment Date on all Lessor Notes then owned by ICI. On any Payment 

 

 

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Date after the occurrence and continuance of an Amortization Event or ICI Event of Default, an amount equal to the outstanding principal balance of all ICF Notes.

ICF Operating Agreement: Means the Amended and Restated Limited Liability Company Operating Agreement, dated as of June 20, 2000 (and amended and restated as of March 27, 2002), by and between ICF, Interpool Inc., as managing member, and Peter H. Sorensen (or such other Person as appointed in accordance with the terms and conditions thereof), as non-managing member.

ICF Outstanding Obligations: With respect to ICF, as of any date of determination, an amount equal to the sum of (i) the then outstanding principal balance of, and accrued interest payable on, all ICF Notes issued under the ICF Indenture or any Supplement to the ICF Indenture, (ii) all other amounts owing to ICF Noteholders or to any other Person under the ICF Indenture or any Supplement to the ICF Indenture, including without limitation any amounts owed to a Lessor (e.g., Basic Rent, Stipulated Loss Value, etc.) and (iii) amounts outstanding and owed by ICF under any Lease Enhancement Agreement, Lease, any Interest Rate Hedge Agreement, the ICI Swap or under any Qualified Currency Hedge entered into pursuant to the ICF Indenture.

ICF Overdue Rate: The weighted average Overdue Rate payable under each Supplement to the ICI Indenture; provided that such amount shall not exceed the maximum rate permitted by Applicable Law.

ICF Permitted Payment Date Withdrawals: (i) On any Payment Date, amounts required to pay amounts due and payable under any of clauses (1), (2), (5), (6) (including interest accrued thereon but excluding any early termination amounts, taxes, indemnities and other amounts then due and payable under an Interest Rate Hedge Agreement or a Qualified Currency Hedge) and (7) of Section 302(b)(I) or clauses (1), (2), (5), (6) (including interest accrued thereon but excluding any early termination amounts, taxes, indemnities and other amounts then due and payable under an Interest Rate Hedge Agreement or a Qualified Currency Hedge) and (7) of Section 302(b)(II); and (ii) on the ICF Legal Maturity Date for the ICF Notes with the latest ICF Legal Maturity Date, any and
all amounts required to pay any and all amounts due and payable under Section 302 of the ICF Indenture. If on any Payment Date the amount on deposit in the ICF Cash Collateral Account exceeds the ICF Required Cash Collateral Amount (after giving effect to any payments pursuant to clause (i) of this definition), then such excess shall be distributed pursuant to Section 302(b) of the ICF Indenture.

ICF Relevant Documents or ICF Related Documents: The ICF Indenture, each Supplement to the ICF Indenture, each ICF Note, the Assignment and Assumption Agreement, each Transfer Agreement, the Servicing Agreement, the Administration Agreement, the Lockbox Agreement, the Lockbox Intercreditor Agreement, each Lease, each Participation Agreement, each Enhancement Agreement, the Trust Agreement, each SUBI Supplement, each SUBI Certificate, each Servicer Report, each Qualified Currency Hedge, the ICI Swap, the Loan and Security Agreement, each Interest Rate Hedge Agreement, the Termination and Transfer Agreement, each Lessor Relevant Document to which ICF is a party and each other agreement, document or instrument executed in connection thereof or the transactions contemplated thereby.

 

 

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ICF Required Cash Collateral Amount: The lesser of (I) an amount equal to the greater of (A) the sum of (1) the equity component of the next three months scheduled Basic Rent under each outstanding Lease, plus (2) the product of (i) five and (ii) the sum of (x) all interest paid on the outstanding ICI Notes during the prior Collection Period (adjusted for a thirty day month), plus (y) fees paid to each Series Enhancer or Lease Enhancer during the prior Collection Period, plus (minus) (z) all amounts paid (received) under each Interest Rate Hedge Agreement (for the avoidance of doubt, excluding any ICI
Swap) during the immediately preceding Collection Period (adjusted for a thirty day month), (B) three months scheduled Basic Rent under each outstanding Lease, and (C) such greater amount as ICF may agree to deposit from time to time, and (II) such other lesser amount as the ICF Global Requisite Majority may agree to from time to time as long as the Rating Agency Condition shall have been satisfied; provided that, at the time of any modification to the hedging (other than the ICI Swap), the following amount, if positive, will be added to the ICF Required Cash Collateral Amount: (I-A)  the difference between (x) the product of (i) five (5) and (ii) the sum of (A) after giving effect to the modified hedging, the product of (1) the new swap rate (excluding the ICI Swap) plus the weighted average spread on all Series and (2) the new
total outstanding notional balance of the ICI Notes and (3) one-twelfth and (B) after giving effect to the modified hedging, the Series Enhancer Fees and/or Lease Enhancer Fees that would have been paid in the prior Collection Period, and (y) clause (A) of this definition (as calculated above) minus (I-B) the amounts, if any, by which the amount then on deposit in the ICF Cash Collateral Account exceeds the amount calculated in clause (A) of this definition; provided further that on the earlier of the Payment Date to occur in February or August following a Casualty Loss for an item of Equipment subject to a Lease that has not been replaced, the ICF Required Cash Collateral Amount shall be increased by the related Senior Stipulated Loss Value of such item of Equipment, until it is replaced or the entire related Senior Stipulated
Loss Amount is paid. On the November 20, 2002 Payment Date, the ICF Required Cash Collateral Amount shall be $11,842,773.94.

ICF Required Deposit: On each Payment Date, (A) prior to an Amortization Event or ICI Event of Default, the sum of (1) the excess of (i) the ICI Aggregate Note Principal Balance (after giving effect to any principal payments made on such Payment Date) plus ICI Supplemental Principal Amounts, plus, after the related Conversion Date the outstanding principal balance of the related Warehouse Notes over (ii) the aggregate ICI Scheduled Targeted Principal Balance of all outstanding Series of ICI Notes; (2) if the total number of chassis remaining in each Certificate subject to a Lease or pledged under the ICF Indenture is greater than 133% of the aggregate number of items of Equipment
allocated to all Certificates subject to a Lease (determined as of the related closing date for each such Lease), then zero, otherwise, the amount necessary to increase the funds on deposit in such account to equal the aggregate Senior Equity Stipulated Loss Amount; (3) the principal amount of any outstanding and unreimbursed draws under each Series Enhancement; (4) any Offset Deposit; and (5) within the last year of a Lease, the amount necessary to increase the funds on deposit in such account to equal the aggregate Senior Stipulated Loss Value for the total number of chassis remaining in each Certificate subject to such Lease; and (6) if Interpool’s EBITDA (calculated on a rolling four quarter basis) is less than One Hundred Seventy Five Million Dollars ($175,000,000), Two Million Five Hundred Thousand Dollars ($2,500,000) provided that if Interpool’s EBITDA as of any subsequent quarter is equal
to or greater than One Hundred Seventy Five Million Dollars

 

 

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($175,000,000) zero and (B) after an Amortization Event or ICI Event of Default shall have occurred and be continuing, the sum of (1) the ICI Aggregate Note Principal Balance (after giving effect to any principal payments made on such Payment Date) and (2) the amount necessary to increase the funds on deposit in such account to equal the aggregate Senior Equity Stipulated Loss Amount; (3) the principal amount of any outstanding and unreimbursed draws under each Series Enhancement; and (4) any Offset Deposit.

ICF Secured Obligations: This term is defined in the granting clause of the ICF Indenture.

ICF Securities Accounts: The ICF Collection Account, the ICF Cash Collateral Account, the Security Deposit Account, the ICF Deposit Account and any other account established pursuant to the terms of the ICF Indenture, a SUBI Supplement or the Servicing Agreement or any securities account control agreement that is subject to the lien of the ICF Indenture, each of which accounts shall constitute a “Securities Account” as defined under the Uniform Commercial Code in effect in the State of New York.

ICF Voting Interest: Each ICF Control Party’s respective voting interest shall be determined as follows: (i) with respect to the ICF Noteholders, the quotient of (x) the outstanding principal balance of the ICF Notes and (y) the sum of (1) the outstanding principal balance of the ICF Notes and (2) the aggregate outstanding Senior Stipulated Loss Value payable under all Leases and (ii) with respect to each Lessor, the quotient of (x) the outstanding Senior Stipulated Loss Value payable under the related Lease and (y) the sum of (1) the outstanding principal balance of the ICF Notes and (2) the aggregate outstanding Senior Stipulated Loss Value payable under all Leases. For as long as any obligation under the ICF Notes or any Lease shall be outstanding, any ICF Voting Interest held by Interpool, Inc. or any of its Affiliates
shall be deemed to be zero.

ICI: Intermodal Chassis Issuance, LLC, a Delaware limited liability company.

ICI Aggregate Note Principal Balance: For any date of determination, the sum of the outstanding principal balance of all ICI Notes then Outstanding.

ICI Asset Base: As of any date of determination, an amount equal to the sum of: (A) the amount on deposit in immediately available funds in the ICF Cash Collateral Account and the ICF Deposit Account after giving effect to all deposits to and withdrawals from each such account as of such date of determination plus (B) the aggregate Adjusted Equipment Value for all Eligible Equipment beneficially owned by ICF or a Lessor as of such date of determination, in each case in compliance with the Concentration Limits (without regard to the User Concentration Limits), minus (C) the amount of all Security Deposits required to be and not transferred to and on deposit in the Security Deposit
Account. For the avoidance of doubt, the value of any Eligible Equipment in excess of the Concentration Limits (without regard to the User Concentration Limits) shall be deemed zero.

ICI Asset Base Certificate: A certificate with appropriate insertions setting forth the components of the ICI Asset Base as of the last day of the month for which such certificate is

 

 

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submitted, which certificate shall be substantially in the form of Exhibit A to the ICI Indenture with any modifications reasonably requested thereto and shall be certified by a duly authorized officer of the Servicer.

ICI Asset Base Deficiency: Means an amount equal to the difference, if positive, between (i) the ICI Aggregate Note Principal Balance and (ii) the Borrowing Base.

ICI Available Funds: On any Determination Date, an amount in Dollars equal to the sum of all ICI Collections on deposit in the ICI Collection Account as of the immediately preceding Cut-off Date. Notwithstanding the foregoing, the amount of ICI Available Funds shall not be reduced by the amount of any investment loss which has occurred in any Eligible Investment purchased with moneys on deposit in the Security Deposit Account or ICI Collection Account either during such Collection Period or subsequent to such Collection Period and prior to such Determination Date.

ICI Collateral: This term shall have the meaning set forth in the granting clause of the ICI Indenture.

ICI Collateral Value: On any Payment Date, the greater of (x) zero and (y) the sum of (A) the outstanding principal balance of all Lessor Notes plus (B) the outstanding principal balance of the ICF Notes minus (C) the outstanding principal balance of all Permitted ICI Loans, in each case as calculated after giving effect to principal payments on the Lessor Notes and ICF Notes to be made on such Payment Date under the ICF Indenture and each Lessor Indenture (as the case may be) but before giving effect to principal payments to be made on such Payment Date under Section 302(b) of the ICI Indenture.

ICI Collection Account: The account or accounts established pursuant to Section 301 of the ICI Indenture.

ICI Collections: With respect to any Collection Period, the sum of (i) all amounts received by, or on behalf of, ICI, ICF, a Lessor, the Servicer, the Sellers or the Trust in each case attributable to the ICF Notes, any Lessor Notes and any other ICI Collateral for such Collection Period, (ii) all amounts advanced by ICF as a Permitted ICI Loan and (iii) all payments received by ICI under the ICI Swap.

ICI Control Party: With respect to a Series of ICI Notes means, unless otherwise provided in the Supplement to the ICI Indenture related to such Series of ICI Notes, ICI Noteholders evidencing more than fifty percent (50%) of the then outstanding principal balance of such Series of ICI Notes. With respect to any notice, statement, report or other document to be delivered to an ICI Control Party under any of the ICI Relevant Documents, if the ICI Control Party is not a single Person, then such document shall be delivered to a single representative (as specified in the related Supplement to the ICI Indenture) of such ICI Control Party; provided, however, if a single representative of such ICI Control Party is not specified in the related Supplement to the ICI
Indenture, then such document shall be delivered to the ICI Indenture Trustee for distribution to the ICI Noteholders and the Series Enhancer (if any) of the related Series of ICI Notes.

 

 

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ICI Default Interest: The incremental interest specified in the related Supplement to the ICI Indenture payable by ICF or ICI resulting from (i) the failure of ICF or ICI to pay when due any principal of or interest on the ICF Notes or the related Series of ICI Notes or (ii) the occurrence of an ICF Event of Default or an ICI Event of Default; provided that increases in  the interest rate specified in the related Supplement to the ICI Indenture as a result of interest grace periods, incentive pricing, alternative funding sources and market disruption shall not be deemed ICI Default Interest.

ICI Event of Default: Has the meaning set forth in Section 801 of the ICI Indenture.

ICI Global Requisite Majority: As of any date of determination, the determination of whether an ICI Global Requisite Majority exists with respect to a particular course of action shall be determined in accordance with Section 503 of the ICI Indenture.

ICI Holder: Has the meaning set forth in ICI Noteholder.

ICI Indenture: The Indenture, dated as of September 1, 2002, among ICI, the Servicer, the Administrative Agent and the ICI Indenture Trustee, as it may be supplemented, amended and otherwise modified from time to time in accordance with its terms.

ICI Indenture Trustee: The Person performing the duties of the ICI Indenture Trustee under the ICI Indenture, initially JPMorgan Chase Bank (f/k/a The Chase Manhattan Bank).

ICI Indenture Trustee Fees: All fees payable by ICI under the Indenture Trustee Fee Letter.

ICI Legal Maturity Date: With respect to any Series of ICI Notes, the date on which the unpaid principal balance of, and accrued interest on, the ICI Notes of such Series of ICI Notes will be due and payable (i.e., the date that the related ICI Minimum Targeted Principal Balance is expected to equal zero). The ICI Legal Maturity Date for a Series of ICI Notes shall be the “Legal Maturity Date” for such Series, as set forth in the related Supplement to the ICI Indenture.

ICI Minimum Principal Amount: With respect to any Series of ICI Notes on any Payment Date, the excess, if any, of (x) the then outstanding principal balance of such Series of ICI Notes over (y) the ICI Minimum Targeted Principal Balance for such Series of ICI Notes for such Payment Date.

ICI Minimum Targeted Principal Balance: With respect to any Series of ICI Notes, the amount identified as such in the related Supplement to the ICI Indenture.

ICI Note Owners: With respect to a Global ICI Note, the Person who is the owner of such Global ICI Note, as reflected on the books of (i) the Depositary (a direct participant) or (ii) a Person maintaining an account with the Depositary (an indirect participant), in each case in accordance with the rules of the Depositary.

 

 

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ICI Note Register: The register maintained by the ICI Indenture Trustee pursuant to Section 205 of the ICI Indenture.

ICI Note Registrar: The ICI Indenture Trustee pursuant to Section 205 of the ICI Indenture and any successor thereto in accordance with the terms and conditions of the ICI Indenture.

ICI Noteholder or ICI Holder: At any time, any Person in whose name an ICI Note is registered in the ICI Note Register.

ICI Notes: Any one of the promissory notes or other securities executed by ICI and authenticated by or on behalf of the ICI Indenture Trustee, substantially in the form attached to the related ICI Supplement.

ICI Operating Agreement: Means the Limited Liability Company Operating Agreement, dated as of September 27, 2002, by and between ICI and GSS Holdings (ICI), Inc., as managing member (or such other Person as appointed in accordance with the terms and conditions thereof), as non-managing member.

ICI Outstanding Obligations: With respect to ICI, as of any date of determination, an amount equal to the sum of (i) the then outstanding principal balance of, and accrued interest payable on, all ICI Notes issued under the ICI Indenture, any Supplement to the ICI Indenture or any Note Purchase Agreement, (ii) all other amounts owing to ICI Noteholders or to any Person under the ICI Indenture, any Supplement to the ICI Indenture or any Note Purchase Agreement, including without limitation any amounts owed to any Series Enhancer and (iii) amounts outstanding under the ICI Swap.

ICI Reimbursement Amount: With respect to any Series Enhancer, this term has the meaning set forth in the related Series Enhancement Agreement.

ICI Relevant Documents or ICI Related Documents: The ICF Relevant Documents, the Lessor Relevant Documents, the ICI Indenture, each Supplement to the ICI Indenture, each ICI Note, the Administration Agreement, the Servicing Agreement, each Note Purchase Agreement, the Loan and Security Agreement, each Series Enhancement Agreement, each Servicer Report, the ICI Swap and each other document or instrument executed in connection thereof or the transactions contemplated thereby.

ICI Scheduled Principal Amount: With respect to any Series of ICI Notes on any Payment Date, the excess, if any, of (x) the then outstanding principal balance of such Series of ICI Notes over (y) the ICI Scheduled Targeted Principal Balance for such Series of ICI Notes for such Payment Date.

ICI Scheduled Targeted Principal Balance: With respect to any Series of ICI Notes for each Payment Date, the amount identified as such in the related Supplement to the ICI Indenture less any Principal Adjustments allocated in accordance with the Principal Adjustment Allocation to each Series of ICI Notes.

 

 

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ICI Secured Obligations: This term is defined in the granting clause of the ICI Indenture.

ICI Securities Accounts: The ICI Collection Account and any other account established pursuant to the terms of the ICI Indenture or the Servicing Agreement or any securities account control agreement that is subject to the lien of the ICI Indenture, each of which accounts shall constitute a “Securities Account” as defined under the Uniform Commercial Code in effect in the State of New York.

ICI Supplemental Principal Amount: On each Payment Date prior to the occurrence and continuance of Amortization Event, an amount which is equal to (i) the excess, if any, of (x) the then unpaid principal balance of all Series of ICI Notes (after giving effect to all payments of the ICI Minimum Principal Amounts and ICI Scheduled Principal Amounts for such Payment Date), over (y) the Borrowing Base on such Payment Date.

ICI Swap: The interest rate hedge between ICF and ICI.

ICI Swap Amount: The swap payment for any Payment Date to be received or paid (as the case may be) by ICI under the ICI Swap, based on the following formula: as of any date of determination prior to the application of any ICF Available Funds pursuant to Section 302(b) of the ICF Indenture, (I) as long as any ICI Notes are Outstanding, the sum of (x) the difference between (A) the product of (1) the quotient of (i) the sum of Total ICI Interest and (ii) the aggregate outstanding principal balance of all ICI Notes and (2) the aggregate outstanding principal balance of all Lessor Notes and (B) Total Lessor Note Interest and (y) any premium earned as a result of the sale of any Lessor Notes by ICI pursuant to Section 702(d) of the ICI Indenture and (II) as long as no ICI Notes are Outstanding, the sum of (x) the difference between (A) the
product of (1) the sum of One-Month LIBOR and the Applicable Margin and (2) the aggregate outstanding principal balance of all Lessor Notes and (B) Total Lessor Note Interest and (y) any premium earned as a result of the sale of any Lessor Notes by ICI pursuant to Section 702(d) of the ICI Indenture.

ILFT: Means Interpool Lease Financing Trust 2002-B, a Delaware statutory trust.

ILFT Event of Default:  An “Event of Default” under the ILFT Indenture.

ILFT Indenture: The Indenture among ILFT, the Administrative Agent and the ILFT Indenture Trustee, as consented to by the ICI Global Requisite Majority, as it may be supplemented, amended and otherwise modified from time to time in accordance with its terms.

ILFT Indenture Trustee: The Person performing the duties of the ILFT Indenture Trustee under the ILFT Indenture, initially JPMorgan Chase Bank.

ILFT Lease: The Equipment Lease Agreement between ILFT, as lessor, and ICF, as lessee, relating to the lease of the SUBI B Certificate and any other Certificate specified therein, as consented to by the ICI Global Requisite Majority, as it may be supplemented, amended and otherwise modified from time to time in accordance with its terms.

 

 

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ILFT Noteholder or ILFT Holder: At any time, any Person in whose name an ILFT Note is registered in the Note Register (as defined in the ILFT Indenture).

ILFT Notes: Any one of the promissory notes or other securities executed by ILFT and authenticated by or on behalf of the ILFT Indenture Trustee, substantially in the form attached to the ILFT Indenture.

Incidental Use: Use of an item of Equipment that is dependent on or affiliated with such item of Equipment’s primary use, which shall include use of such item of Equipment in a jurisdiction other than the jurisdiction in which such Equipment is primarily or permanently used (e.g., transit or temporary storage).

Increased Costs: Has the meaning set forth with respect thereto in the related Note Purchase Agreement or Supplement to the ICI Indenture.

Indebtedness: As applied to a Person, means:

(i) all items (except items of capital stock or of surplus) which in accordance with Generally Accepted Accounting Principles, consistently applied, would be included in determining total liabilities as shown on the liability side of a balance sheet of such Person as of the date as of which Indebtedness is to be determined and which includes, without limitation, capital leases and indebtedness for borrowed money and all amounts owing or to become owing in connection therewith, including all recourse and all non-recourse debt;

(ii) to the extent not included in the foregoing, all indebtedness, obligations and liabilities secured by any mortgage, pledge, lien or other security interest to which any property or asset owned by such Person is subject, whether or not the indebtedness, obligations or liabilities secured thereby shall have been assumed by such Person; and

(iii) to the extent not included in the foregoing, all indebtedness, obligations and liabilities of others which such Person has directly or indirectly guaranteed or is otherwise contingently liable upon.

Indemnified Party: Has the meaning set forth in Section 9.26 of the Servicing Agreement.

Indenture: The ICF Indenture, the ILFT Indenture, each other Lessor Indenture and/or the ICI Indenture, as the case may be.

Indenture Trustee: The ICF Indenture Trustee, each Lessor Indenture Trustee and/or the ICI Indenture Trustee, as the case may be.

Indenture Trustee Fee Letter or ILFT Indenture Trustee Fee Letter: The Indenture Trustee Fee Letter dated March 28, 2002 among ICF, each Lessor from time to time made a party thereto, ICI and JPMorgan Chase Bank.

 

 

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Indenture Trustee Fees: All fees and expenses of the ICF Indenture Trustee, each Lessor Indenture Trustee and the ICI Indenture Trustee as specified in the Indenture Trustee Fee Letter.

Independent Accountant: Any of the “Big Four” accounting firms and any successor thereto which are independent with respect to the Servicer and the Interpool Group within the meaning of the Securities Act and the applicable published rules and regulations thereunder.

Initial Beneficiary: Interpool Chassis Funding, LLC, a Delaware limited liability company and its permitted successors.

Initial Commitment: This term shall have the meaning set forth in the related Supplement to the ICI Indenture.

Insolvency Law: The Bankruptcy Code or similar Applicable Law.

Intangibles: Goodwill and other items shown as intangible on such Person’s balance sheet as determined in accordance with GAAP.

Interest: Shall have the meaning set forth in the related Supplement to the ICI Indenture.

Interest Accrual Period: With respect to the ICF Notes and all Lessor Notes, the period from and including the immediately preceding Payment Date (or, in the case of the Initial Payment Date, from and including the Closing Date) to and including the day immediately preceding such Payment Date. With respect to any ICI Notes, Interest Accrual Period has the meaning set forth in the related Supplement to the ICI Indenture.

Interest Expense: Means, for any period, net finance costs as shown for such period on a Person’s consolidated statement of operations determined in accordance with GAAP.

Interest Rate Hedge Agreement: An interest rate hedge agreement between ICF and an Eligible Interest Rate Hedge Counterparty named therein that is entered into pursuant to Section 635 of the ICF Indenture, including any schedules and confirmations prepared and delivered in connection therewith.

Interest Rate Hedge Counterparty: In the singular, any one of, and in the plural, all of the Eligible Interest Rate Hedge Counterparties, their successors and assigns which have entered into an Interest Rate Hedge Agreement.

Interest Rate Hedge Counterparty Minimum Rating Downgrade Event: So long as an ICI Control Party requires it, the assignment of a long-term rating of either BBB+ or lower by S&P, or Baa1 or lower by Moody’s with respect to the unsecured and unsubordinated debt, deposit or letter of credit obligations of an Interest Rate Hedge Counterparty (or any party providing credit support on its behalf).

Interest Rate Hedge Counterparty Required Rating Downgrade Event: So long as an ICI Control Party requires it, the assignment of a long-term rating of either BBB or lower by S&P, or

 

 

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Baa2 or lower by Moody’s, or with respect to any Interest Rate Hedge Transaction entered into in connection with a Series of ICI Notes that are rated by S&P, and only so long as such Series of ICI Notes is rated by S&P, a short-term rating of A-3 or lower from S&P if a Series Enhancement is issued in connection with the issuance of such Series of ICI Notes, and a short-term rating of A-2 or lower from S&P if a Series Enhancement is not issued in connection with the issuance of such Series of ICI Notes, with respect to the unsecured and unsubordinated debt, deposit or letter of credit obligations of an Interest Rate Hedge Counterparty (or any party providing credit support on its behalf).

Interest Rate Hedge Transaction: Each interest rate hedge transaction that is entered into pursuant to Section 635 of the ICF Indenture and is governed by an Interest Rate Hedge Agreement.

Interpool: Interpool, Inc., a Delaware corporation.

Interpool Acquisition Transfer Agreement: The Interpool Acquisition Transfer Agreement, dated as of March 1, 2002, between Interpool Acquisition, L.L.C. and Interpool Inc. as amended, supplemented and otherwise modified from time to time in accordance with the terms thereof.

Interpool Fleet Utilization: Means as of any month-end, the percentage calculated on the next Determination Date by dividing (a) the aggregate number of items of Equipment transferred to the Trust (and allocated to a Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be)) which are then subject to a Contract which is not a Defaulted Contract, by (b) the aggregate number of items of Equipment transferred to the Trust (and allocated to a Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be)) calculated on a weighted average rolling twelve-month basis.

Interpool Group: means, as of any relevant date, the affiliated group within the meaning of section 1504 of the Code of which Interpool, Inc., or any successor thereto, is the common parent, and shall mean any group eligible to file consolidated or combined returns for state, local or foreign tax purposes, regardless of the identity of the common parent.

Interpool Transfer Agreement: The Second Amended and Restated Transfer Agreement, dated as of June 1, 2000 (and amended and restated as of March 1, 2002 and second amended and restated as of September 1, 2002), by and between Interpool and the Trust, as such agreement is amended, supplemented and otherwise modified from time to time, in accordance with the provisions thereof.

Investment: When used in connection with any Person, any investment by or of that Person, whether by means of purchase or other acquisition of securities of any other Person or by means of loan, advance, capital contribution, guaranty or other debt or equity participation or interest, or otherwise, in any other Person, including any partnership and joint venture interests of such Person in any other Person. The amount of any Investment shall be the original principal or capital amount thereof less all returns of principal or equity thereon (and without adjustment by reason of the financial condition of such other Person) and shall, if made by the transfer or

 

 

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exchange of property other than cash, be deemed to have been made in an original principal or capital amount equal to the fair market value of such property.

Investment Grade Rating: Means, with respect to Moody’s, a rating of Baa3 or better, with respect to S&P, a rating of “BBB-” or better, and with respect to the Dynamar Group, Dynamar 1 or Dynamar 2.

IRS: The Internal Revenue Service or any successor agency charged with the enforcement of the Code.

Joined Party: Has the meaning set forth in the Lockbox Intercreditor Agreement.

Junior Allocation Percentage: Initially, three percent (3%); provided, however, that the Junior Allocation Percentage may be modified as long as the Rating Agency Condition is satisfied. At all times the sum of the Senior Allocation Percentage and the Junior Allocation Percentage must be 100%; provided further that, as a condition precedent to any modification that decreases the Junior Allocation Percentage to an amount less than three percent (3%), either (x) each counsel that has rendered a “true debt for tax” opinion for each previously issued and outstanding Series of ICI Notes must either reasonably concur with any “true debt for tax” opinion to be rendered
in connection with the issuance of any additional Series of ICI Notes (given the reduced Junior Allocation Percentage) or affirm its “true debt for tax” opinion as of the effective date of the reduced Junior Allocation Percentage or (y) counsel issuing the “true debt for tax” opinion for such additional Series of ICI Notes must opine that all outstanding Series of ICI Notes (given the reduced Junior Allocation Percentage) are “true debt for tax.”

Junior Permitted ICI Loans: Any advance of funds requested by ICI from ICF under the Loan and Security Agreement on any Funding Date that is funded pursuant to Section 302(b)(I)(15) of the ICF Indenture, including (x) on and after the occurrence and continuance of the related Conversion Date, the outstanding principal balance of such Warehouse Notes and (y) any principal prepayments of the ICI Notes.

Junior Principal Allocation: On any Payment Date, the sum of (x) the product of (1) the Junior Allocation Percentage and (2) the amount by which the ICI Aggregate Note Principal Balance (before giving effect to any payments made under Section 302(b) of the ICI Indenture on such Payment Date) exceeds the ICI Collateral Value and (y) any Junior Principal Allocation not previously paid; provided, however, that if after giving effect to any draws under the related Lease Enhancement or the related Lessor Note Enhancement, there is a shortfall in the payment of principal due and payable on the Lessor Notes or ICF Notes (as the case may be), the Junior Principal Allocation on any date shall be the product of (x) the Junior Allocation Percentage and (y) the ICI
Aggregate Note Principal Balance.

Junior Priority Interest Allocation: For each Series of ICI Notes, the product of (x) the aggregate amount of Priority Interest Payments due and payable to such Series of ICI Notes and (y) the Junior Allocation Percentage as of the Series Issuance Date for such Series of ICI Notes.

 

 

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Junior Stipulated Loss Amounts: With respect to any Lease, the amount set forth in the related Lessor Relevant Documents.

Lease: Means, as the context may require, the ILFT Lease and each other equipment lease agreement and/or supplement and, as applicable, each Lease Supplement between a Lessor and ICF, (substantially in the form and substance to other Leases approved by the ICI Global Requisite Majority and that satisfy the Rating Agency Condition) in each case the debt under which is financed through Lessor Notes.

Lease Enhancement: The rights and benefits provided by a Lease Enhancer to a Lessor pursuant to any letter of credit, surety bond, financial guaranty, insurance policy, insurance agreement or other similar arrangement.

Lease Enhancer: In accordance with the terms and conditions of the related Enhancement Agreement, the Person then providing any Lease Enhancement.

Lease Enhancer Default: Has the meaning set forth in the related Enhancement Agreement.

Lease Enhancer Fee: Has the meaning set forth in the related Enhancement Agreement.

Lease Enhancer Premium: With respect to any Lease that has the benefit of Lease Enhancement, an amount equal to the product of (x) the related Lease Enhancer Fee and (y) the related Senior Stipulated Loss Value, it being understood that the related Enhancement Agreement may designate a portion of such Lease Enhancer Premium to be Lessor Note Enhancer Premium.

Lease File: With respect to a Contract allocated to a Certificate under the ICF Indenture or the related Lessor Indenture (as the case may be), a Lease File (as such term is defined in the related SUBI Supplement for such Contract).

Lease Supplement: Has the meaning set forth in the related Lease.

Lessor: The bankruptcy remote special purpose Person which conveys a leasehold interest in a SUBI Certificate to ICF under a Lease, as more particularly set forth in the related Lease.

Lessor Collateral: This term shall have the meaning set forth in the granting clause of the related Lessor Indenture.

Lessor Collection Account: The account established in the name of the related Lessor Indenture Trustee pursuant to the terms and conditions of the related Lessor Indenture for disbursement of principal payments of and interest payments on the related Lessor Notes.

Lessor Control Party: Unless otherwise provided in the related Lease, the Lessor Control Party for such Lease for purposes of giving all consents, directions and executing all amendments and waivers shall be (1) the Lessor Note Enhancer if the related Lessor Notes have the benefit of any Lessor Note Enhancement, (2) the holders of a majority of related Lessor

 

 

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Notes if the Lessor Notes do not have the benefit of any Lessor Note Enhancement (excluding any Lessor Notes held by a Lessor, Owner Participant or any of their respective Affiliates), (3) the Lease Enhancer of the related Lease if no Lessor Notes are then outstanding or if the Lessor Notes are held by a Lessor, Owner Participant or any of their respective Affiliates, and (4) the related Lessor if no Lessor Notes (excluding any Lessor Notes held by a Lessor, Owner Participant or any of their respective Affiliates) are then outstanding and there is no Lease Enhancer; provided, however, that if (a) any such Enhancer defaults in the payment of any obligation owed by it pursuant to the terms of the related Enhancement, (b) any such Enhancer becomes subject to an insolvency proceeding or (c) any such
Enhancement is terminated or cancelled, then, so long as such default or proceeding continues, then, in the case of (a) and (b) above, such Enhancer will not be the Lessor Control Party and the Lessor Control Party shall be determined as described above as if the related Enhancement did not exist.

Lessor Event of Default: Means an event of default as set forth and described in the related Lessor Indenture.

Lessor Indenture: Each indenture entered into from time to time among a Lessor the Administrative Agent and a Lessor Indenture Trustee, as the same may be supplemented, amended and otherwise modified from time to time in accordance with the terms thereof.

Lessor Indenture Trustee: The Person performing the duties of the indenture trustee under the related Lessor Indenture.

Lessor Indenture Trustee Fees: All fees payable by a Lessor under the Indenture Trustee Fee Letter.

Lessor Note Enhancement: The rights and benefits provided by a Lessor Note Enhancer to the holders of the related Lessor Notes pursuant to any letter of credit, surety, bond, financial guaranty, insurance policy, insurance agreement or other similar arrangement.

Lessor Note Enhancer: In accordance with the terms and conditions of the related Lessor Indenture, the Person then providing any Lessor Enhancement, other than the holders of the related Lessor Notes of any Class which is subordinated to another Class.

Lessor Note Enhancer Premium: The premium, if any, payable for any Lessor Note Enhancement under the related Enhancement Agreement.

Lessor Notes: Any one of the promissory notes or other securities executed by a Lessor in favor of ICI and authenticated by or on behalf of the Lessor Indenture Trustee, substantially in the form attached to the related Lessor Indenture.

Lessor Relevant Documents or Lessor Related Documents: Each Lessor Indenture, each Supplement to the related Lessor Indenture, each Lessor Note, each Lease, each Participation Agreement, each related Transfer Agreement, the Servicing Agreement, the Administration Agreement, the Lockbox Agreement, the Lockbox Intercreditor Agreement, the Trust Agreement, each SUBI Supplement, each Servicer Report, each Qualified Currency Hedge, the

 

 

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Termination and Transfer Agreement, each related Enhancement Agreement and each other document or instrument executed in connection thereof or the transactions contemplated thereby.

Lessor Securities Accounts: The related Lessor Collection Account and any other account established pursuant to the terms of the Lessor Indenture or the Servicing Agreement or any securities account control agreement that is subject to the lien of the related Lessor Indenture, each of which accounts shall constitute a “Securities Account” as defined under the Uniform Commercial Code in effect in the State of New York.

Letter of Representations: shall have the meaning set forth in the related Supplement to the ICI Indenture.

Lien: Any security interest, lien, charge, pledge, equity or encumbrance of any kind.

Liquidation Expenses: With respect to any Defaulted Contract, expenses incurred by the Servicer on behalf of the ICF Noteholders and/or the related noteholders of the Lessor, including fees and expenses of counsel to the Servicer, in connection with the repossession, shipping, refurbishing and disposition of the Equipment and other out-of-pocket costs related to the liquidation of such Equipment and the related Defaulted Contract.

Liquidation Proceeds: With respect to any Defaulted Contract, any of the proceeds from the sale or other disposition of the Equipment, the proceeds of the related Equipment Insurance Policy and monies payable under the Physical Damage Equipment Insurance Policy and any other Recoveries with respect to such Defaulted Contract and the related Equipment, net of Liquidation Expenses and amounts so received that are required to be refunded to the User on such Contract.

Loan and Security Agreement: The Revolving Line of Credit, dated as of September 30, 2002, by and between ICF and ICI concerning ICF’s commitment to make loans to ICI in an aggregate amount up to the Maximum Permitted ICI Loan Amount, as amended, supplemented and otherwise modified from time to time in accordance with the terms and conditions thereof.

Lockbox Agreement: The Lockbox Agreement, dated as of March 1, 2002, by and among Interpool, ICF Indenture Trustee, each Lessor Indenture Trustee made a party thereto from time to time, the Lockbox Trustee, the Lockbox Bank and the Lockbox Servicer.

Lockbox Bank: JPMorgan Chase Bank and any successor thereto in accordance with the terms and conditions of the Lockbox Agreement and the Lockbox Intercreditor Agreement.

Lockbox Intercreditor Agreement: The Intercreditor and Lockbox Administration Agreement, dated as of March 1, 2002, by and among Interpool, ICF, the ICF Indenture Trustee, each Lessor, each Lessor Indenture Trustee, the Lockbox Trustee, the Lockbox Bank, the Lockbox Servicer and each other Joined Party made a party thereto from time to time in accordance with the terms and conditions thereof.

 

 

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Lockbox Servicer: JPMorgan Chase Bank and any successor thereto in accordance with the terms and conditions of the Lockbox Agreement and the Lockbox Intercreditor Agreement.

Lockbox Trustee: JPMorgan Chase Bank and any successor thereto in accordance with the terms and conditions of the Lockbox Agreement and the Lockbox Intercreditor Agreement.

Long Term Leases: Non-capitalized leases where Interpool or any member of the Interpool Group are the lessee with an initial term in excess of three (3) years, excluding leases of office equipment and transportation vehicles used in the ordinary course of business.

Major Repair: Any major repair of an item of Equipment, such as remanufacturing or refurbishment of such item of Equipment, or that requires the expense of such major repair to be capitalized under GAAP, or the cost of which is equal to or greater than the Adjusted Equipment Value.

Managing Member: GSS Holdings (ICI), Inc., together with its permitted successors and assigns, as managing member of ICI.

Master List: With respect to a Contract, the related Master List (as such term is defined in the related SUBI Supplement).

Master Lockbox Account: Means the Lockbox Account as defined in the Lockbox Intercreditor Agreement.

Material Adverse Effect: This term shall have the meaning set forth in Section 2.01 of the Servicing Agreement.

Maximum Advance Amount: An amount equal to (x) the aggregate outstanding Existing Commitment of all Series of ICI Notes, minus (y) any Principal Adjustments that have not been allocated to a Series of ICI Notes, minus (z) the outstanding principal balance of all Lessor Notes.

Maximum Permitted ICI Loan Amount: Has the meaning set forth in the Loan and Security Agreement.

MBIA: MBIA Insurance Corporation, a financial guaranty insurance company organized under the laws of the State of New York.

Monthly Equipment Depreciation: For any item of Equipment, the lesser of (1) the excess of the (A) the Appraised Value of the Equipment over (B) with respect to 40 foot or longer Chassis and Refrigeration Generators, $1,900 and with respect to all other Equipment, $1,300 and (2), the quotient, (x) the numerator of which is the difference, if positive, between (A) the Appraised Value of an item of Equipment and (B) with respect to 40 foot or longer Chassis and Refrigeration Generators, $1,900 and with respect to all other Equipment, $1,300 and (y) the denominator of which is the product of (A) the Useful Life less the age in years at the last Appraisal of such item of Equipment and (B) twelve (12); provided that if the Useful Life less the age in years at the last Appraisal of such item of Equipment is equal to or less than five

 

 

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(5) years, then the Monthly Equipment Depreciation shall be equal to a quotient, (x) the numerator of which is the difference between (A) the Appraised Value of such item of Equipment and (B) with respect to 40 foot or longer Chassis and Refrigeration Generators, $1,900 and with respect to all other Equipment, $1,300 and (y) the denominator of which is sixty (60). The calculation of the Monthly Equipment Depreciation may be modified with the consent of the ICF Global Requisite Majority and satisfaction of the Rating Agency Condition.

Moody’s: Moody’s Investors Service, Inc. and any successor thereto.

Non-Managing Member: This term shall have the meaning set forth in the ICF Operating Agreement or the ICI Operating Agreement, as applicable.

Nonrecoverable Advance: Any Servicer Advance previously made in respect of a Delinquent Contract by the Servicer pursuant to the terms of the Servicing Agreement, which in the good faith and reasonable commercial judgment of the Servicer and pursuant to an officer’s certificate of the Servicer, will ultimately not be recoverable by the Servicer from payments made by the related User or other obligor. For the avoidance of doubt, any Servicer Advance made in respect of a Delinquent Contract that becomes a Defaulted Contract shall be deemed a Nonrecoverable Advance.

Note Purchase Agreement: Any underwriting agreement or other purchase agreement for the ICI Notes of any Series of ICI Notes or Class thereof as more particularly defined in the related Supplement to the ICI Indenture.

Notice of Registered Pledge: Shall have the meaning set forth in Section 4.3 of the Trust Agreement.

Officer’s Certificate: A certificate signed by a duly Authorized Officer of the Person who is required to sign such certificate.

Offset Deposit: With respect to any Contract (i) for which a User is exercising any right of abatement reduction, recoupment, setoff, defense or counterclaim or (ii) for which any Person (other than the Servicer) asserts any fee for managing or administering the Equipment related to such Contract, an amount equal to the lesser of (x) the aggregate amount of all such abatements, reductions, recoupments, setoffs, defenses, counterclaims and fees or (y) the Adjusted Equipment Value associated with such contract.

OID: Original Issue Discount, as defined in section 1273(a) of the Code and the treasury regulations issued thereunder.

One-Month LIBOR: Has the meaning in the related Supplement to the ICI Indenture.

Operating Expenses: Means all expenses and costs, calculated on a United States GAAP basis, incurred in connection with the ownership, use and/or operation of Equipment, including, but not limited to: (i) out-of-pocket agency costs and expenses (e.g., depot commissions for arranging leases, ongoing commission to terminal operators for usage of chassis pools, etc.) paid

 

 

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to Persons who are not Affiliates of the Servicer; (ii) depot fees, handling, and storage costs and expenses; (iii) maintenance and repairs; (iv) repositioning; (v) inspecting, marking and remarking such Equipment; (vi) costs of recovery of Equipment in a bankruptcy of the User in connection with enforcing rights under a lease; (vii) bad debts expense and auditing fees incurred in connection with enforcing rights under leases of Equipment; (viii) legal fees incurred in connection with enforcing rights under leases of such Equipment or repossessing such Equipment; and (ix) insurance taxes; provided that, Operating Expenses shall not include any expenses or costs incurred in connection with any Major Repair of any item of Equipment.

Opinion of Counsel: A written opinion of counsel, who, unless otherwise specified, may be internally employed counsel, in any case reasonably acceptable to the Person or Persons to whom such Opinion of Counsel is to be delivered. The counsel rendering such opinion may rely (i) as to factual matters, on a certificate of a Person whose duties relate to the matters being certified, and (ii) insofar as the opinion relates to local law matters, upon opinions of local counsel.

Original Assets: Has the meaning set forth in Section 2.01 of the related Transfer Agreement.

Original Contract: Each lease agreement, including, as applicable, related equipment schedules, and any schedules, subschedules, summary schedules, supplements and amendments thereto and to the lease agreement incorporated therein, pursuant to which the lessor thereunder leases specified Equipment to a User at a specified periodic rental, which agreement is identified in the Master List delivered to ICF pursuant to the Trust Agreement and subsequently delivered to the ICF Indenture Trustee on the Closing Date.

Original Equipment: Any Equipment transferred to the Trust pursuant to the related Transfer Agreement on or before the Closing Date.

Original Equipment Cost: With respect to each item of Equipment an amount equal to the sum of (i) the vendor’s or manufacturer’s invoice price of the related Equipment and (ii) all reasonable and customary inspection, transport and positioning costs necessary to put such item of Equipment in service.

Original Net Book Value: With respect to an item of Equipment, as of any date of determination, an amount equal to (x) the lesser of (1) the Original Equipment Cost and (2) the purchase price of such item of Equipment minus (y) any Intangibles (as determined in accordance with GAAP) relating to such Equipment.

Original Trust Agreement: Shall have the meaning set forth in the Preamble of the Trust Agreement.

Outstanding: When used with reference to the ICF Notes or the ICI Notes, as the case may be, and as of any particular date, any ICF Note or ICI Note theretofore and thereupon being authenticated and delivered except:

 

 

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(i) any ICF Note or ICI Note canceled by the ICF Indenture Trustee or the ICI Indenture Trustee, respectively, or proven to the satisfaction of the ICF Indenture Trustee or the ICI Indenture Trustee, respectively, to have been duly canceled by ICF or ICI, respectively, at or before said date;

(ii) any ICF Note or ICI Note (as the case may be), or portion thereof, called for payment or redemption for which monies equal to the principal amount or redemption price thereof, as the case may be, with interest to the date of maturity or redemption, shall have theretofore been deposited (whether upon or prior to maturity or the redemption date of such ICF Note or ICI Note, respectively) with the ICF Indenture Trustee or the ICI Indenture Trustee, respectively;

(ii) any ICF Note or ICI Note in lieu of or in substitution for which another ICF Note or ICI Notes, respectively, shall subsequently have been authenticated and delivered; and

(iii) with respect to the ICI Notes, any ICI Note held by ICI, ICF, a Lessor, the Trust, any Seller or any Affiliate of any such Person and, with respect to the ICF Notes, any ICF Notes held by ICF, a Lessor, the Trust, any Seller or any Affiliate of any such Person.

Notwithstanding the foregoing, any ICI Note on which any portion of principal or interest has been paid by a Series Enhancer pursuant to an Enhancement Agreement shall be Outstanding until the Series Enhancer has been reimbursed in full therefor in accordance with the related Series Enhancement Agreement.

Overdue Rate: With respect to the ICI Notes, the rate of interest specified in the related Supplement to the ICI Indenture applicable to an ICI Note then earning ICI Default Interest; provided that such amount shall not exceed the maximum rate permitted by Applicable Law.

Owner Participant: Has the meaning set forth in the related Lessor Relevant Documents.

Owner Trust: Has the meaning set forth in the related Lessor Relevant Documents.

Owner Trustee: Has the meaning set forth in the related Lessor Relevant Documents.

Owner Trustee Fees: All fees payable to an Owner Trustee under the related Lessor Relevant Documents.

Ownership Interests: A beneficial ownership interest in a Global ICI Note.

Participation Agreement: Means the Participation Agreement among Interpool, as guarantor, ICF, as lessee, ILFT, as owner trust, Wilmington Trust Company, as owner trustee, the owner participants named therein, the ILFT Indenture Trustee and ICI, as loan participant, relating to the SUBI B Certificate and each other Certificate specified therein and each other participation agreement substantially similar in form and substance.

 

 

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Paying Agent: JPMorgan Chase Bank (f/k/a The Chase Manhattan Bank) and any successor thereto.

Payment Date: The twentieth (20th) day of every calendar month or, if such twentieth day is not a Business Day, the next immediately succeeding Business Day. The Initial Payment Date shall be November 20, 2002; provided that with respect to any amounts due and payable under the ICI Swap or an Interest Rate Hedge Agreement, the initial Payment Date shall be October 20, 2002.

Permitted ICI Loan: The loan made by ICF to ICI in accordance with the terms and conditions of the Loan and Security Agreement.

Permitted ICI Loan Interest: An amount equal to the excess of (x) the sum of (i) the total interest receivable on any Lessor Notes then owned by ICI and (ii) any amounts due and payable to ICI under the ICI Swap over (y) the sum of clauses (2), (3), (4) and (9) of Section 302(b)(I) or of Section 302(b)(II) of the ICI Indenture, whichever is applicable.

Permitted Liens: With respect to the ICF Collateral or any Lessor Collateral, any of the following: (i) Liens for taxes, assessments, levies, fees and other governmental and similar charges not yet due and payable or being contested in good faith and for amounts not past due, (ii) mechanics’, warehousemens’, materialmens’, suppliers’, laborers’ or of like persons’ Liens for amounts not past due, (iii) Liens arising out of any judgment or award against ICF, the Trust or any User, lessee or sublessee of any Equipment, (iv) Liens pursuant to the ICF Indenture or the related Lessor Indenture (as the case may be) on the Contracts, if any, (v) with respect to the related Lessor Collateral only, any other Liens permitted under the related Lessor Indenture, (vi) salvage rights of insurers, (vii) the interests of
ICF and any Lessor under the related Leases, (viii) any ownership interest of the Lessor or the beneficial owner of the Lessor in the related Lessor Collateral and (ix) the interests of any User, lessee or sublessee under any Contract; provided, however, such Permitted Liens pursuant to (i), (ii) and (iii) are being contested in good faith in appropriate Proceedings and as to which adequate reserves in accordance with GAAP shall have been established, but only so long as enforcement of any such Lien has been stayed and so long as such Proceedings could not subject any Series Enhancer, any Lease Enhancer, the Titling Trustee, the ICF Indenture Trustee, a Lessor Indenture Trustee, the ICI Indenture Trustee, an ICF Noteholder, any holder of Lessor Notes, any Currency Hedge Counterparty, any Interest Rate Hedge Counterparty or the ICI Noteholders to any civil or criminal penalty or liability or involve any
material loss of value of, or risk of loss, sale or forfeiture of, any of the ICF Collateral, the collateral pledged under a Lessor Indenture or the ICI Collateral.

Person: An individual, limited partnership, a partnership, a corporation, a joint venture, an unincorporated association, a joint-stock company, limited liability company, a trust, or other entity or a government or any agency or political subdivision thereof.

Physical Damage Equipment Insurance Policy: The physical damage policy issued by various underwriters described thereon to Interpool, a copy of which is attached as Exhibit B to each Transfer Agreement, or any other replacement policy thereto that is substantially similar to it.

 

 

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Plan: An employee benefit plan as defined in Section 3(3) of ERISA or a “plan” within the meaning of section 4975(e)(1) of the Code.

Pledgee Interest: Shall have the meaning set forth in Section 4.3 of the Trust Agreement.

Policy: With respect to any Series of ICI Notes, the financial guaranty insurance policy, if any, issued by a Series Enhancer. The terms of any such Policy shall be set forth in the related Supplement to the ICI Indenture.

PoolStat: Interpool’s proprietary relational database system that handles all information concerning the life cycle of Equipment from purchase orders through a series of lease outs, turn-ins, repairs and upgrades to final disposition and which compiles data from each location and reports on levels of Equipment Contribution as compared to levels of Equipment usage by each shipper in the cooperative pool.

Portfolio Management System: Has the meaning set forth in Section 2.01(q) of the Servicing Agreement.

Potential Amortization Event: A condition or event which, after notice or lapse of time or both, will constitute an Amortization Event.

Potential ICF Event of Default: A condition or event which, after notice or lapse of time or both, will constitute an ICF Event of Default.

Potential ICI Event of Default: A condition or event which, after notice or lapse of time or both, will constitute an ICI Event of Default.

Potential Servicer Default: A condition or event which, after notice or lapse of time or both, will constitute a Servicer Default.

Predecessor Asset: As defined in Section 3.04(a) of the related Transfer Agreement.

Preference Amount: Any amount previously distributed to an ICI Noteholder that is recoverable and sought to be recovered as a voidable preference by a trustee in bankruptcy pursuant to the United States Bankruptcy Code (11 U.S.C.), as amended from time to time, in accordance with a final nonappealable order of a court having competent jurisdiction.

Preference Claim: Has the meaning set forth in Section 1204 of the ICF Indenture.

Prepayment: With respect to a Collection Period and a Contract (except a Defaulted Contract), any payment received from or on behalf of a User in respect of any Contract Payment(s), in advance of their scheduled Due Date, including Prepayment Amounts, Casualty Payments, Equipment Insurance Proceeds or otherwise.

 

 

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Prepayment Amount: With respect to an item of Equipment, the Adjusted Equipment Value of such item of Equipment as of the related date of prepayment.

Prime Rate: The rate announced by Wachovia Bank from time to time as its prime rate in the United States, such rate to change as and when such designated rate changes. The Prime Rate is not intended to be the lowest rate of interest charged in connection with extensions of credit to debtors; provided, however, that an ICI Holder of Warehouse Notes may designate a different rate as the Prime Rate with respect to its ICI Notes in its related Supplement to the ICI Indenture.

Principal Adjustment: With respect to the occurrence of any of the following with respect to any and all items of Equipment during the related Collection Period, the product of (x) the Advance Rate and (y) the sum of the amounts calculated pursuant to the following clauses (1) through (8) (without duplication and in each case for Equipment that has not been replaced in accordance with the provisions of the ICF Relevant Documents or the related Lessor Relevant Documents): (1) any Prepayment Amount paid by a Seller pursuant to Section 3.03 or Section 3.05 of the related Transfer Agreement, (2) any Offset Deposit or portion thereof that is deposited by ICF into the ICF Collection Account in respect of any claim for any abatement, reduction, recoupment, setoff, defense or counterclaim or any fee payable to a User pursuant to a final
order that may not or will not be appealed or which has been dismissed or resolved, (3) the Adjusted Equipment Value for any item of Equipment subject to a Contract for which the related User is then subject to a bankruptcy or other insolvency proceeding (provided that, if such User is subject to a bankruptcy or insolvency proceeding and such User has assumed, but not assigned, its obligations under the related Contract within sixty days of the commencement of such bankruptcy or insolvency proceeding, the Adjusted Equipment Value for the related Chassis shall not be  deemed a Principal Adjustment), (4) any amount of a Contract Payment which is past due and remains outstanding for a period of more than 240 days from the date due (calculated as of the related invoice date), (5) the Adjusted Equipment Value for any item of Equipment subject to a Contract which remains unexecuted for a period of more than 180
days, (6) the Adjusted Equipment Value of an item of Equipment allocated to a SUBI pledged under the ICF Indenture (or subject to a Lease) for which a Casualty Loss has occurred (net of any Senior Equity Stipulated Loss Amount actually paid by ICF in respect of such item of Equipment), (7) the lesser of the Adjusted Equipment Value and the Discounted Contract Balance of the related Contract for any items of Equipment in excess of the User Concentration Limits (provided that, if as a result of a merger between two or more Users, any of the User Concentration Limits are exceeded, then any excess concentration will not be deemed a Principal Adjustment until the expiration of ninety (90) consecutive days), and (8) the Adjusted Equipment Value for each item of Equipment subject to a lease schedule which also related to Chassis that have not been allocated to a Certificate pledged under the ICF Indenture or
subject to a Lease (as the case may be) and for which the related User as of the related date of determination has not executed a separate lease schedule with respect to the Chassis not allocated to a Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be); provided that, to the extent that any of the foregoing amounts in this clause (y) are collected or an item of Eligible Equipment and its Related Assets replaces an item of Equipment for which the Adjusted Equipment Value has increased the amount determined in this clause (y), then such collections or the Adjusted Equipment Value of the replacement item of Equipment (as the case may be) shall accordingly decrease the amount determined in this clause (y).

 

 

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Principal Adjustment Allocation: Any Principal Adjustments will be allocated to the ICI Scheduled Targeted Principal Balance of all Series of ICI Notes on each Payment Date as follows: (1) prior to the Conversion Date or the occurrence of an Amortization Event or an ICI Event of Default, Principal Adjustments will be allocated first to any Warehouse Notes to the ICI Scheduled Targeted Principal Balance of such Warehouse Notes, pro rata, based on their respective outstanding principal balances; and second, to the extent that the aggregate outstanding principal balance of all Warehouse Notes is less than
the total amount of such Principal Adjustments, to each Series of ICI Notes, pro rata, based on their respective outstanding principal balances; (2) after the Conversion Date, an Amortization Event or an ICI Event of Default, any Principal Adjustments will be allocated to each Series of ICI Notes, pro rata, based on their respective outstanding principal balances.

Principal Terms: With respect to any Series of ICI Notes, (i) the name or designation of such Series of ICI Notes; (ii) the initial principal amount of the ICI Notes to be issued for such Series of ICI Notes (or method for calculating such amount); (iii) the interest rate to be paid with respect to each Class of ICI Notes for such Series of ICI Notes (or method for the determination thereof); (iv) the Payment Date and the date or dates from which interest shall accrue and principal shall be paid; (v) the designation of any Series Accounts and the terms governing the operation of any such Series Accounts; (vi) whether such Series of ICI Notes is Warehouse Notes; (vii) the terms of any form of Series Enhancement with respect thereto; (viii) the Expected Maturity Date and the ICI Legal Maturity Date for the Series of ICI Notes; (ix) the
number of Classes of ICI Notes of the Series of ICI Notes and, if the Series of ICI Notes consists of more than one Class, the rights and priorities of each such Class; (x) the priority of the Series of ICI Notes with respect to any other Series of ICI Notes; (xi) the ICI Control Party with respect to such Series of ICI Notes; (xii) those items constituting Priority Interest Payments, ICI Minimum Principal Amounts, ICI Scheduled Principal Amounts, and ICI Supplemental Principal Amounts (if any); and (xiii) any other terms of such Series of ICI Notes.

Priority Interest Payments: For each Series of ICI Notes Outstanding on any Payment Date, all amounts to be paid from the related Series Account on such Payment Date which represent payments of (i) interest (including, in accordance with the related Supplement to the ICI Indenture, any Step Up Interest, but not including any ICI Default Interest) on such Series of ICI Notes or (ii) commitment fees, deal agent fees and other fees payable to the ICI Holders of such Series of ICI Notes. If any Priority Interest Payments are paid by a Series Enhancer, then any reimbursement obligations of ICI to such Series Enhancer in respect of such payments, including interest thereon, shall be included in the calculation of the Priority Interest Payments for such Series of ICI Notes and paid to the Series Enhancer to the extent that such payment would
not cause a shortfall in other Priority Interest Payments for the ICI Noteholders of such Series of ICI Notes.

Proceeding: Any suit in equity, action at law, or other judicial or administrative proceeding.

 

 

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Prospective Owner: With respect to the ICF Indenture, has the meaning set forth in Section 205(e) of the ICF Indenture and, with respect to the ICI Indenture, has the meaning set forth in Section 205(e) of the ICI Indenture.

Public Global ICI Notes: A Book-Entry Note evidencing all or part of an issuance of ICI Notes issued and sold in a public offering to which the provisions of Section 202 of the ICI Indenture shall apply.

Purchase Option Payment: means as specified in each Contract, any payment made by the User to purchase the Equipment covered thereby, including any funds received in respect of either (w) an end of term purchase option for a nominal amount, (x) an end of term option to purchase the Equipment at a stated percentage of the original cost of the Equipment, (y) an option to purchase the Equipment at the fair market value of the Equipment determined at the end of the Contract term or (z) an end of term option to extend the term of the lease for another immediately successive period upon the expiration of which the lessee will own the equipment.

Qualified Currency Hedge: A currency hedge agreement between ICF or a Lessor and a Currency Hedge Counterparty named therein, including any schedules and confirmations prepared and delivered in connection therewith (x) pursuant to which (i) ICF or a Lessor will receive payments denominated in Dollars and ICF or such Lessor, as the case may be, will make payments in Canadian dollars, (ii) recourse to ICF or such Lessor is limited to ICF Available Funds for such purpose and (iii) is a currency hedge that may cash settle and (y) which satisfies the criteria set forth in Section 634 of the ICF Indenture.

Rated Institutional Noteholder: An institutional ICI Noteholder or ICF Noteholder whose long term unsecured debt obligations are then rated “BBB-” or better by S&P and “Baa3” or better by Moody’s.

Rating Agency: In the singular, any one of, and in the plural, all of Moody’s, S&P and each other statistical rating organizations rating any of the then outstanding ICI Notes, any of the then outstanding Basic Rent and any other then outstanding amounts payable by ICF, a Lessor or ICI.

Rating Agency Condition: With respect to certain actions to be taken or proposed action to be taken, including, without limitation, the issuance of a Series of ICI Notes, Series of ICF Notes or Lessor Notes or the execution and delivery of a Lease, shall mean that each Rating Agency shall have notified ICI, each affected Lessor, each affected Lease Enhancer, each affected Lessor Note Enhancer, each affected Series Enhancer, the Servicer, the Administrative Agent, each affected ICI Control Party, each affected ICF Control Party and the ICI Indenture Trustee in writing that such action will not result in a reduction or withdrawal of any rating of any Outstanding ICI Notes, any Outstanding ICF Notes (if rated), any outstanding Lessor Notes (if rated), any outstanding Basic Rent, any outstanding Senior Stipulated Loss Value and any other
outstanding amounts payable by ICF, a Lessor or ICI with respect to which the Rating Agency is providing a rating, including, without limitation, any underlying rating issued to an Enhancer as if such notes, Basic Rent, Senior Stipulated Loss Value, and/or other outstanding amounts payable by ICF were issued without the benefit of any credit enhancement provided by such Enhancer.

 

 

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Record Date: With respect to any Payment Date relating to any Definitive Note, the last day of the immediately preceding Collection Period, and, with respect to any Payment Date relating to any Book-Entry Note, the Business Day immediately preceding such Payment Date.

Recoveries: For any Collection Period occurring after the date on which any Contract becomes either a Delinquent Contract or a Defaulted Contract and with respect to such Delinquent Contract or Defaulted Contract, all payments (including past due Contract Payments) and proceeds that the Servicer actually receives from or on behalf of a User or with respect to the related Equipment during such Collection Period in respect of amounts then payable pursuant to such Delinquent Contract or Defaulted Contract, as reduced by any reasonable third-party out-of-pocket expenses incurred by the Servicer in enforcing such Delinquent Contract or Defaulted Contract or any related security arrangement or in the reconditioning and disposition of the related Equipment; provided, however, that payments and proceeds subsequently received by any Seller, ICF, a Lessor, ICI or the Servicer with respect to Defaulted Contracts for which Replacement Contracts have been provided by a Seller or the Servicer pursuant to the applicable Transfer Agreement shall be excluded from Recoveries.

Refrigeration Generator: A diesel engine/electrical generator combination that, depending on type, mounts on a refrigerated container or under a container Chassis.

Registered Pledgee: With respect to a certificate pledged under the ICF Indenture or the related Lessor Indenture (as the case may be), the Registered Pledgee (as such term is defined in Section 4.3 of the Trust Agreement).

Registered Pledgee Interest: With respect to a certificate pledged under the ICF Indenture or the related Lessor Indenture (as the case may be), the Registered Pledgee Interest (as such term is defined in Section 4.3 of the Trust Agreement).

Registrar of Titles: This term shall have the meaning set forth in Section 2.1(a) of the Trust Agreement.

Related Assets: Has the meaning set forth in Section 2.01 of the related Transfer Agreement.

Replacement Asset: Has the meaning set forth in Section 3.04 of the related Transfer Agreement.

Replacement Asset Transfer Form: The agreement in the form of Exhibit E to the applicable Transfer Agreement pursuant to which Replacement Assets are replaced in accordance with the terms and conditions of the applicable Transfer Agreement.

Replacement Contract: Each separate lease agreement and each lease schedule, subschedule, summary schedule or supplement, amendment and other modification (including any master lease insofar as the same reflects any schedule or supplement) that is an Eligible 

 

 

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Contract replaced pursuant to Section 3.04 of the applicable Transfer Agreement and allocated to a Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be).

Replacement Equipment: Equipment transferred to the Trust pursuant to Section 3.04 of the related Transfer Agreement and allocated to a Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be).

Required Modifications: Has the meaning set forth in Section 3.01(c) of the Servicing Agreement.

Residual Proceeds: With respect to any item of Equipment, the net proceeds from the sale, destruction or other disposition of such item of Equipment, including, without limitation, any proceeds from a repurchase of Equipment or balloon payment for Equipment whether by the Seller, the Servicer, a User or any other Person pursuant to the terms and conditions of the ICF Relevant Documents or the Lessor Relevant Documents (as the case may be) and the related Contract.

Responsible Officer: Means any officer in the corporate trust office of a Trustee with direct responsibility for the administration of the Agreement or any other officer of the Trustee to whom any corporate trust matter is referred because of his or her knowledge of or her knowledge of or any familiarity with the particular subject.

Restated Agreement: This term has the meaning set forth in the preamble to the ICF Indenture.

Revolving Period Termination Event: This term has the meaning set forth in the Supplement to the ICI Indenture for the related Warehouse Notes.

Rule 144A: Rule 144A promulgated under the 1933 Act.

Rule 144A Global ICI Notes: A Book Entry Note evidencing all or a part of an issuance of the ICI Notes issued and sold in reliance on Rule 144A, registered in the name of the Depository or its nominee, and delivered to the Depository pursuant to the Depository’s instruction in accordance with Section 202 of the ICI Indenture and bearing the legend prescribed in Section 202 of the ICI Indenture.

S&P: Standard & Poor’s Ratings Services, a division of the McGraw Hill Companies, Inc., and any successor thereto.

Sale: With respect to the ICF Collateral, has the meaning set forth in Section 817 of the ICF Indenture, with respect to the related Lessor Collateral, has the meaning set forth in Section 817 of the related Lessor Indenture and, with respect to the ICI Collateral, has the meaning set forth in Section 817 of the ICI Indenture.

 

 

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Scrap Value: Means, in connection with the sale of an item of Equipment pursuant to Section 407 of the ICF Indenture, the fair market value of such item of Equipment if sold at the end of its Useful Life.

Second Restatement Date: This term has the meaning set forth in the preamble to the ICF Indenture.

Securities Account: The ICF Securities Accounts, the Lessor Securities Accounts, the ICI Securities Accounts and any other accounts established pursuant to the terms and conditions of an Indenture, a SUBI Supplement, the Servicing Agreement or any securities account control agreement that is subject to the lien of an Indenture, each of which accounts shall constitute a “securities account” as defined under the UCC in effect in the State of New York.

Securities Act: The Securities Act of 1933, as amended from time to time.

Securities Intermediary: (i) With respect to the ICF Indenture, the ICF Indenture Trustee, (ii) with respect to a Lessor Indenture, the Lessor Indenture Trustee and (iii) with respect to the ICI Indenture, the ICI Indenture Trustee, or, (iv) in any case, any securities intermediary under any securities account control agreement entered into after the Closing Date.

Security Deposit: Any refundable deposit collected from, or on behalf of, a User as a security deposit.

Security Deposit Account: The account established pursuant to Section 308 of the ICF Indenture.

Security Entitlements: This term shall have the meaning set forth in Article 8-102(17) of the Uniform Commercial Code in effect in the State of New York.

Seller: Any of Interpool, TLI or other Affiliate of Interpool that is the seller of Equipment and any related Contracts, as set forth in the pertinent Transfer Agreement.

Seller Material Adverse Effect: This term shall have the meaning set forth in Section 3.01(c) of the applicable Transfer Agreement.

Senior Allocation Percentage: Initially, ninety-seven percent (97%); provided, however, that the Senior Allocation Percentage may be modified as long as the Rating Agency Condition is satisfied. At all times the sum of the Senior Allocation Percentage and the Junior Allocation Percentage must be 100%.

Senior Currency Hedge Payments: Any termination payments and any interest accrued thereon then due and payable to a Currency Hedge Counterparty under a Qualified Currency Hedge other than by reason of an event of default or termination event (other than illegality (as defined in the related Qualified Currency Hedge)) where the Currency Hedge Counterparty is the sole Defaulting Party (as defined in the related Qualified Currency Hedge) or the sole Affected Party (as defined in the related Qualified Currency Hedge).

 

 

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Senior Equity Stipulated Loss Amount: With respect to any Lease, the amount of any Senior Stipulated Loss Amount (as set forth in the related Lessor Relevant Documents) that is payable to the Lessor under the related Lessor Indenture as of the related date of determination.

Senior ICI Class or Senior ICI Notes: With respect to any Series of ICI Notes, those Class(es) or ICI Note(s) of such Series of ICI Notes, if any, that are designated as a “Senior Class” or “Senior Notes” in the related Supplement to the ICI Indenture.

Senior Permitted ICI Loan: An advance of funds made by ICF to ICI on any Funding Date in accordance with the terms and conditions of the Loan and Security Agreement that is funded pursuant to Section 302(b)(I)(10) of the ICF Indenture.

Senior Principal Allocation: On any Payment Date, the difference, if any, between (x) the product of (1) the Senior Allocation Percentage and (2) the amount, if any, by which the ICI Aggregate Note Principal Balance (before giving effect to any payments to be made under Section 302(b) of the ICI Indenture on such Payment Date) exceeds the ICI Collateral Value and (y) any Junior Principal Allocation not previously paid; provided, however, that if after giving effect to any draws under the related Lease Enhancement or the related Lessor Note Enhancement, there is a shortfall in the payment of any principal due and payable on the Lessor Notes or the ICF Notes (as the case may be), then the Senior Principal Allocation on such Payment Date shall be the product of
(x) the Senior Allocation Percentage and (y) the ICI Aggregate Note Principal Balance.

Senior Priority Interest Allocation: For each Series of ICI Notes, the product of (x) the aggregate amount of all Priority Interest Payments due and payable to such Series of ICI Notes and (y) the Senior Allocation Percentage as of the Series Issuance Date for such Series of ICI Notes.

Senior Stipulated Loss Amount: With respect to any Lease, the amount set forth in the related Lessor Relevant Documents.

Senior Stipulated Loss Value: With respect to any Lease, the amount set forth in the related Lessor Relevant Documents.

Series: Any series of ICI Notes established pursuant to a Supplement to the ICI Indenture or any Series of ICF Notes established pursuant to a Supplement to the ICF Indenture, as the case may be.

Series Account: Any deposit, trust, escrow or similar account maintained for the benefit of the ICI Noteholders and any related Series Enhancer of any Series of ICI Notes or Class thereof as specified in the related Supplement to the ICI Indenture.

Series Enhancement: The rights and benefits provided to the ICI Noteholders of any Series of ICI Notes or Class thereof pursuant to any letter of credit, surety bond, financial guaranty, insurance policy, insurance agreement or other similar arrangement. The subordination of any Class to another Class shall not be deemed to be a Series Enhancement.

 

 

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Series Enhancement Agreement: Any Enhancement Agreement for any Series of ICI Notes.

Series Enhancer: In accordance with the terms and conditions of the related Supplement to the ICI Indenture, the Person then providing any Series Enhancement, other than the ICI Noteholders of any Class which is subordinated to another Class.

Series Enhancer Default: Has the meaning set forth in the related Supplement to the ICI Indenture.

Series Enhancer Fees: Has the meaning set forth in the related Enhancement Agreement issued by a Series Enhancer.

Series Enhancer Premium: The positive difference, if any, between (x) all premiums (i.e., the amount payable as consideration for the issuance of an Enhancement Agreement with respect to a Series of ICI Notes) due and payable to a Series Enhancer in connection with each outstanding Series Enhancement issued by it and (y) all premiums due and payable to such Series Enhancer in its capacity as Lessor Note Enhancer pursuant to all outstanding Lessor Note Enhancement issued by it (i.e., the amount payable as consideration for the issuance of an Enhancement Agreement with respect to the related Lessor Notes associated with such Series of ICI Notes).

Series Issuance Date: With respect to any Series of ICI Notes, the date on which the ICI Notes of such Series of ICI Notes are originally issued in accordance with Section 1006 of the ICI Indenture and the related Supplement to the ICI Indenture and with respect to any Series of ICF Notes, the date on which the ICF Notes of such Series of ICF Notes are originally issued in accordance with Section 1006 of the ICF Indenture.

Serviced Assets: Has the meaning set forth in Section 2.01(a) of the Servicing Agreement.

Servicer: The Person performing the duties of the Servicer under the Servicing Agreement; initially, Interpool.

Servicer Advance: Any advance of funds by the Servicer in accordance with Section 4.01 of the Servicing Agreement.

Servicer Certificate: A certificate signed by a Servicing Officer, substantially in the form of Exhibit A to the Servicing Agreement.

Servicer Default: The occurrence of any of the events or conditions set forth in Section 7.01 of the Servicing Agreement.

Servicer Report: Means the report described in Section 5.01 of the Servicing Agreement.

 

 

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Servicer Termination Notice: Has the meaning set forth in Section 7.02 of the Servicing Agreement.

Servicing Agreement: The Second Amended and Restated Servicing Agreement, dated as of June 1, 2000 (as amended and restated as of March 1, 2002 and second amended and restated as of September 1, 2002), among the Servicer, TLI, the ICF Indenture Trustee, each Lessor Indenture Trustee, the ICI Indenture Trustee, ICF, each Lessor and ICI, as amended, supplemented or otherwise modified from time to time in accordance with the terms thereof.

Servicing Fee: As set forth in Section 3.04(b) of the Servicing Agreement.

Servicing Fee Arrearage: At the close of business on any Payment Date, an amount in Dollars equal to the excess, if any, of (a) the Servicing Fee for such Payment Date and any outstanding Servicing Fee Arrearage from the immediately preceding Payment Date over (b) the amount actually distributed to the Servicer on such Payment Date, for application to such Servicing Fee and Servicing Fee Arrearage.

Servicing Officer: Any representative of the Servicer involved in, or responsible for, the administration and servicing of the ICF Collateral, the Lessor Collateral and the ICI Collateral whose name appears on a list of servicing officers furnished to ICF, each Lessor, ICI, the ICF Indenture Trustee, each Lessor Indenture Trustee, the ICI Indenture Trustee, each Series Enhancer, each Lease Enhancer, the ICF Noteholders, each Lessor’s noteholders and the ICI Noteholders, as such list may from time to time be amended.

Servicing Standard: Has the meaning set forth in Section 3.01 of the Servicing Agreement.

Settlor: This term shall have the meaning set forth in the Preamble of the Trust Agreement.

Special Purpose Entity: Means a special purpose corporation, partnership, limited partnership, trust, business trust, limited liability company or other entity created for one or more Financings.

State: Any state of the United States of America and, in addition, the District of Columbia and any territories of the United States (e.g., Puerto Rico, Guam, etc.).

State of Qualification: This term shall have the meaning set forth in Section 5.7 of the Trust Agreement.

Statement of Cash Reconciliation: The statement in the form of Exhibit C to the Servicing Agreement.

Statistical Release: Means the then most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Federal Reserve System and which establishes yields on actively traded United States government securities 

 

 

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adjusted to constant maturities or, if such statistical release is not published at the time of any determination, then such other reasonably comparable index which shall be designated by Wachovia Bank.

Step Up Interest: The sum of all Step Up Warehouse Interest and all other “Step Up Interest” specified in the related Supplement to the ICI Indenture.

Step Up Warehouse Interest: The incremental amount of interest payable by ICI with respect to a Series of Warehouse Notes upon the occurrence and continuation of certain events or conditions specified in the related Supplement to the ICI Indenture. The incremental amount of interest payable with respect to an Interest Accrual Period shall be the excess (if any) of (x) the actual amount of interest (other than ICI Default Interest) payable by ICI for such Interest Accrual Period, over (y) the amount of interest that would have been payable by ICI for such Interest Accrual Period if the relevant events or conditions had not occurred.

Stipulated Loss Value: Shall have the meaning set forth in the related Lease.

Straightline Amortization Method: A method of calculating principal payments on a note assuming principal of such note will be paid in equal amounts over each payment period.

SUBI: This term shall have the meaning set forth in Section 4.2(a) of the Trust Agreement.

SUBI Account: With respect to any SUBI Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be), the related SUBI Account (as such term is defined in Section 7.1(a) of the Trust Agreement) shall be the Master Lockbox Account.

SUBI Assets: With respect to any SUBI Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be), the related SUBI Assets (as such term is defined in Section 4.1(a) of the Trust Agreement).

SUBI Certificate: Any SUBI Certificate (as such term is defined in Section 4.2(b) of the Trust Agreement) that is subject to the lien of the ICF Indenture or the lien of the related Lessor Indenture.

SUBI Holder: With respect to any SUBI Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be), the related SUBI Holder (as such term is defined in Section 4.2(b) of the Trust Agreement).

SUBI Portfolio: With respect to any SUBI Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be), the related SUBI Portfolio (as such term is defined in Section 4.2(a) of the Trust Agreement).

SUBI Supplement: With respect to any SUBI Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be), the related SUBI Supplement (as such term is defined in Section 4.2(b) of the Trust Agreement).

 

 

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SUBI Trustee: With respect to any SUBI Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be), the related SUBI Trustee (as such term is defined in Section 4.2(d) of the Trust Agreement).

Subordinate ICI Class Notes or Subordinate ICI Notes: With respect to any Series of ICI Notes, those Class(es) or ICI Note(s) of such Series of ICI Notes, if any, that are designated as a “Subordinate Class” or “Subordinate Notes” in the related Supplement to the ICI Indenture.

Subsidiary: of a Person means any corporation, association, partnership, joint venture or other business entity of which more than fifty percent (50.0%) of the voting stock or other equity interests (in the case of Persons other than corporations), is owned or controlled directly or indirectly by the Person, or one or more of the Subsidiaries of the Person, or a combination thereof.

Supplement: Any supplement to the ICF Indenture, a Lessor Indenture or the ICI Indenture, as the case may be, executed in accordance with the terms thereof.

Supplemental Rent: Has the meaning set forth in the related Lease.

Surplus Situation: Shall exist when the amount on deposit in the ICI Collection Account on any Determination Date shall exceed the amounts distributable by the ICI Indenture Trustee on the immediately succeeding Payment Date pursuant to Section 302(b) of the ICI Indenture.

Tangible Net Worth: The excess, if any, of (A) the amount of stockholders equity of Interpool and its consolidated subsidiaries appearing in the consolidated financial statements of Interpool, less (B) trademarks, goodwill, covenants not to compete and all other Intangibles, less (C) the aggregate of amount of investments in special purpose Affiliates and subsidiaries included in such consolidated financial statements plus (D) the amount set forth on the consolidated balance sheet of Interpool and its Restricted Subsidiaries under the caption “Company-obliged mandatorily redeemable preferred
securities in grantor trusts”, being the face amount of preferred shares issued by grantor trusts which are wholly-owned by Interpool, proceeds from the issuance of which were used solely to purchase junior subordinated debentures of Interpool.

Tape: The electronic file setting forth the categories of information set forth in Exhibit F to the Servicing Agreement.

Taxes: Any present or future taxes, levies, imposts, duties, charges, assessments or fees of any nature (including interest, penalties and additions thereto) that are imposed by any government or other taxing authority.

Termination and Transfer Agreement: The Termination and Transfer Agreement, dated as of June 1, 2000, by and between TLI and Interpool.

 

 

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Titling Trustee: Wachovia Trust Company, National Association (f/k/a First Union Trust Company, National Association) and any successor thereto in accordance with the terms and conditions of the Trust Agreement.

TL Canada: Trac Lease Canada, a division of TLI.

TLI: Trac Lease, Inc., a Delaware corporation.

TLI Transfer Agreement: The Second Amended and Restated Transfer Agreement, dated as of June 1, 2000 (as amended and restated as of March 1, 2002 and second amended and restated as of September 1, 2002), by and among TLI and the Trust, as such agreement is amended, supplemented and otherwise modified from time to time in accordance with the terms thereof.

Total ICI Interest: The aggregate interest expense of ICI that is due and payable as of any date of determination prior to the application of any ICF Available Funds pursuant to Section 302(b) of the ICF Indenture (excluding any interest expense of ICI that is due and payable to ICF in connection with any Permitted ICI Loan).

Total Lessor Note Interest: The aggregate amount of interest due and payable to ICI on all outstanding Lessor Notes as of any date of determination prior to the application of any ICF Available Funds pursuant to Section 302(b) of the ICF Indenture.

Total Liabilities: As to any Person, as of any date of calculation, the aggregate outstanding Indebtedness of such Person as of such date, determined on a consolidated basis in accordance with GAAP.

Total Series Enhancer Fees: The aggregate Series Enhancer Fees as of any date of determination prior to the application of any ICF Available Funds pursuant to Section 302(b) of the ICF Indenture to each Series Enhancer for all Outstanding ICI Notes that have the benefit of the related Series Enhancement.

Trac Lease Transfer Agreement: The Trac Lease Transfer Agreement, dated as of March 1, 2002, between Trac Lease, Inc. and Interpool Inc. as amended, supplemented and otherwise modified from time to time in accordance with the terms thereof.

Transfer Agreement: Means, in the singular, any of, and in the plural, each of, the TLI Transfer Agreement, the Interpool Transfer Agreement, and any other transfer agreement between the Trust and any other Seller substantially in the form of the TLI Transfer Agreement or the Interpool Transfer Agreement.

Transfer Date: With respect to each item of Original Equipment and any related Original Contract, July 21, 2000, and with respect to each item of Additional Equipment and any related Additional Contract or Replacement Equipment and any related Replacement Contract, the Payment Date on which an item of Additional Equipment or Replacement Equipment is transferred to the Trust.

 

 

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Transferred Assets: Any Transferred Assets (as such term is defined in Section 2.01 of the applicable Transfer Agreement) allocated to a Certificate pledged under the ICF Indenture or subject to a Lease (as the case may be).

Transferred Assets Representations and Warranties: The representations and warranties relating to the Transferred Assets set forth in Section 3.01(a) of the applicable Transfer Agreement.

Trust: This term shall have the meaning set forth in Section 1.1 of the Trust Agreement.

Trust Agency Agreement: This term shall have the meaning set forth in Section 5.3(e) of the Trust Agreement.

Trust Agent: This term shall have the meaning set forth in Section 5.3(e) of the Trust Agreement.

Trust Agreement: The Amended and Restated Trust Agreement, dated as of June 1, 2000 (as amended or restated as of March 1, 2002), among the Settlor, the Initial Beneficiary and Wachovia Trust Company, National Association (f/k/a First Union Trust Company, National Association), as trustee and Delaware trustee, as amended, supplemented and otherwise modified from time to time in accordance with the terms thereof.

Trust Assets: Any Trust Assets (as such term is defined in Section 2.1(a) of the Trust Agreement) allocated to a Certificate under the ICF Indenture or subject to a Lease (as the case may be).

Trust Documents: Means the Trust Agreement, the Certificate of Trust (as defined in Section 1.1 of the Trust Agreement), any UTI Supplement, any SUBI Supplement, any Dealer Agreement, any Transfer Agreement, any Servicing Agreement, any Trust Agency Agreement and any and all documents or instruments entered into pursuant to any such document.

Trustee Accounts: This term shall have the meaning set forth in Section 7.1(a) of the Trust Agreement.

2002-A SUBI Assets: Has the meaning set forth in the 2002-A SUBI Supplement.

2002-A SUBI Certificate: Has the meaning set forth in the 2002-A SUBI Supplement.

2002-A SUBI Portfolio: Has the meaning set forth in the 2002-A SUBI Supplement.

2002-A SUBI Supplement: 2002-A SUBI Supplement, dated as of March 1, 2002, to the Trust Agreement, by and among the Custodian, ICF, Settlor and Wachovia Trust Company, National Association (f/k/a First Union Trust Company, National Association), as trustee and Delaware trustee.

2002-B SUBI Assets: Has the meaning set forth in the 2002-B SUBI Supplement.

 

 

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2002-B SUBI Certificates: Has the meaning set forth in the 2002-B SUBI Supplement.

2002-B SUBI Portfolio: Has the meaning set forth in the 2002-B SUBI Supplement.

2002-B SUBI Supplement: 2002-B SUBI Supplement to the Trust Agreement dated as of September 1, 2002, by and among the Custodian, ICF, Settlor and Wachovia Trust Company, National Association (f/k/a First Union Trust Company, National Association), as trustee and Delaware trustee.

2002-C SUBI Assets: Has the meaning set forth in the 2002-C Supplement.

2002-C SUBI Certificates: Has the meaning set forth in the 2002-C SUBI Supplement.

2002-C SUBI Portfolio: Has the meaning set forth in the 2002-C SUBI Supplement.

2002-C SUBI Supplement: 2002-C SUBI Supplement to the Trust Agreement dated as of September 1, 2002, by and among the Custodian, ICF, Settlor and Wachovia Trust Company, National Association (f/k/a First Union Trust Company, National Association), as trustee and Delaware trustee.

Undivided Trust Interest or UTI: This term shall have the meaning set forth in Section 4.1(a) of the Trust Agreement.

Undivided Trust Interest Certificate: This term shall have the meaning set forth in Section 4.1(b) of the Trust Agreement.

Uniform Commercial Code or UCC: The Uniform Commercial Code as in effect on the date of determination in the applicable jurisdiction.

United States or U.S.: The United States of America.

Useful Life: Means, with respect to a remanufactured item of Equipment, twenty (20) years and, with respect to each newly manufactured item of Equipment, twenty-five (25) years.

User: Any obligor under any Contract, whose recourse obligations thereunder constitute the principal source of payments under any Contract.

User Concentration Limits: Except with the consent of the ICI Global Requisite Majority and satisfaction of the Rating Agency Condition, no more than 15% of the Equipment Value of all items of Eligible Equipment (after giving effect to the aggregate Accumulated Depreciation, any Casualty Losses, any Major Repairs and any Replacement Equipment calculated with respect to such Eligible Equipment as of the end of the immediately preceding Collection Period) may be leased to any one lessee (unless (i) such lessee is rated at least BBB, Baa2 or Dynamar 2, in which case up to 20% of the Equipment Value of all items of Eligible Equipment (after giving effect to the aggregate Accumulated Depreciation, any Casualty Losses, 

 

 

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any Major Repairs and any Replacement Equipment calculated with respect to such Eligible Equipment as of the end of the immediately preceding Collection Period) may be leased to any such lessee or (ii) such lessee is APL, in which case up to 25% of the Equipment Value of all items of Eligible Equipment (after giving effect to the aggregate Accumulated Depreciation, any Casualty Losses, any Major Repairs and any Replacement Equipment calculated with respect to such Eligible Equipment as of the end of the immediately preceding Collection Period) may be leased to APL) no more than 40% of the Equipment Value of all items of Eligible Equipment (after giving effect to the aggregate Accumulated Depreciation, any Casualty Losses, any Major Repairs and any Replacement Equipment calculated with respect to such Eligible Equipment as of the end of the immediately preceding Collection Period) may be leased
to any 3 lessees (unless any one of such 3 lessees is rated at least BBB, Baa2 or Dynamar 2, in which case up to 45% of the Equipment Value of all items of Eligible Equipment (after giving effect to the aggregate Accumulated Depreciation, any Casualty Losses, any Major Repairs and any Replacement Equipment calculated with respect to such Eligible Equipment as of the end of the immediately preceding Collection Period) may be leased to any 3 lessees). For purposes of this definition, a User and all Affiliates of such User shall be considered one “User”

User Rights: So long as no Contract Default shall have occurred and then be continuing, a User’s right to quiet and peaceful possession of the related Equipment and unrestricted use thereof for its intended purpose.

UTI: This term shall have the meaning set forth in Section 4.1(a) of the Trust Agreement.

UTI Assets: This term shall have the meaning set forth in Section 4.1(a) of the Trust Agreement.

UTI Certificate: This term shall have the meaning set forth in Section 4.1(b) of the Trust Agreement.

UTI Holder: This term shall have the meaning set forth in Section 4.1(b) of the Trust Agreement.

UTI Pledge: Means any pledge of, or the granting of a security interest in, the UTI Certificate, or a portion thereof, by the holder thereof.

UTI Portfolio: Means Equipment, Contracts and related Trust Assets not allocated to a SUBI Portfolio and remaining as part of the Undivided Trust Interest.

UTI Supplement: This term shall have the meaning set forth in Section 4.1(b) of the Trust Agreement.

UTI Trustee: This term shall have the meaning set forth in the Preamble of the Trust Agreement.

VFCC: Variable Funding Capital Corporation, a corporation organized under the laws of Delaware, and any successor thereto.

 

 

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Wachovia Bank: Wachovia Bank, National Association (f/k/a First Union National Bank), a national banking association, and its successors and assigns.

Warehouse Notes: Either or both, as the context may require, of (i) the ICI Notes designated as “Series 2003-CP” and (ii) any other ICI Notes that contains provisions whereby (x) ICI may request additional fundings from the related ICI Noteholders from time to time and (y) the unpaid principal balance of such ICI Notes are not scheduled to amortize for some specified period of time.

 

 

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