Document:

EXHIBIT

10.5

 

EXECUTION

COPY

 

TRUST

AGREEMENT

 

 

among

 

 

PACCT,

LLC,

as Transferor,

 

 

CSG

FUNDING, LLC,

as O/C Holder

 

 

and

 

 

WILMINGTON

TRUST COMPANY,

as Owner Trustee

 

 

Dated as of June 24, 2002

 

 

 

	

   

  	

  ARTICLE I

  	

   

  
	

   

  	

  DEFINITIONS

  	

   

  
	

   

  	

   

  	

   

  
	

  Section

  1.01.

  	

  Capitalized

  Terms

  	

   

  
	

  Section

  1.02.

  	

  Other

  Definitional Provisions

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  ARTICLE II

  	

   

  
	

   

  	

  ORGANIZATION

  	

   

  
	

   

  	

   

  	

   

  
	

  Section

  2.01.

  	

  Name

  	

   

  
	

  Section

  2.02.

  	

  Office

  	

   

  
	

  Section

  2.03.

  	

  Purpose

  and Powers

  	

   

  
	

  Section

  2.04.

  	

  Appointment

  of Owner Trustee

  	

   

  
	

  Section

  2.05

  	

  Initial

  Capital Contribution of Trust Estate

  	

   

  
	

  Section

  2.06.

  	

  Declaration

  of Trust

  	

   

  
	

  Section

  2.07.

  	

  Title to

  Trust Property

  	

   

  
	

  Section

  2.08.

  	

  Situs of

  Trust

  	

   

  
	

  Section

  2.09.

  	

  Representations

  and Warranties of the Transferor

  	

   

  
	

  Section

  2.10.

  	

  Liability

  of Certificateholders

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE III

  
	

   

  
	

  CERTIFICATES

  
	

   

  	

   

  	

   

  
	

  Section

  3.01.

  	

  Initial

  Ownership

  	

   

  
	

  Section

  3.02.

  	

  Form of

  Certificates

  	

   

  
	

  Section

  3.03.

  	

  Authentication

  of Certificates

  	

   

  
	

  Section

  3.04.

  	

  Restrictions

  on Transfer

  	

   

  
	

  Section

  3.05.

  	

  Mutilated,

  Destroyed, Lost or Stolen Certificate

  	

   

  
	

  Section

  3.06.

  	

  Issuance

  of New Transferor Certificate

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE IV

  
	

   

  
	

  ACTIONS

  BY OWNER TRUSTEE

  
	

   

  	

   

  	

   

  
	

  Section

  4.01.

  	

  Prior

  Notice to Owner, Transferor and O/C Holder with  Respect to Certain Matters

  	

   

  
	

  Section

  4.02.

  	

  Restrictions

  on Power

  	

   

  

 

i

 

	

  ARTICLE V

  
	

   

  
	

  AUTHORITY AND

  DUTIES OF OWNER TRUSTEE

  
	

   

  	

   

  	

   

  
	

  Section

  5.01.

  	

  General

  Authority

  	

   

  
	

  Section

  5.02.

  	

  General

  Duties

  	

   

  
	

  Section

  5.03.

  	

  Action

  Upon Instruction

  	

   

  
	

  Section

  5.04.

  	

  No Duties

  Except as Specified in this Agreement or in Instructions

  	

   

  
	

  Section

  5.05.

  	

  No Action

  Except under Specified Documents or Instructions

  	

   

  
	

  Section

  5.06.

  	

  Restrictions

  	

   

  
	

  Section

  5.07.

  	

  Confidentiality.

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE VI

  
	

   

  
	

  CONCERNING THE OWNER

  TRUSTEE

  
	

   

  	

   

  	

   

  
	

  Section

  6.01.

  	

  Acceptance

  of Trusts and Duties

  	

   

  
	

  Section

  6.02.

  	

  Furnishing

  of Documents

  	

   

  
	

  Section

  6.03.

  	

  Representations

  and Warranties

  	

   

  
	

  Section

  6.04.

  	

  Reliance;

  Advice of Counsel

  	

   

  
	

  Section

  6.05.

  	

  Not

  Acting in Individual Capacity

  	

   

  
	

  Section

  6.06.

  	

  Owner

  Trustee Not Liable for Certificates, Notes or Receivables

  	

   

  
	

  Section

  6.07.

  	

  Owner

  Trustee May Own Notes

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE VII

  
	

   

  
	

  COMPENSATION OF OWNER

  TRUSTEE

  
	

   

  	

   

  	

   

  
	

  Section

  7.01.

  	

  Owner

  Trustee’s Fees and Expenses

  	

   

  
	

  Section

  7.02.

  	

  Indemnification

  	

   

  
	

  Section

  7.03.

  	

  Payments

  to the Owner Trustee

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE VIII

  
	

   

  
	

  TERMINATION OF TRUST

  AGREEMENT

  
	

   

  	

   

  	

   

  
	

  Section

  8.01.

  	

  Termination

  of Trust Agreement

  	

   

  

 

ii

 

	

  ARTICLE IX

  
	

   

  
	

  SUCCESSOR

  OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

  
	

   

  	

   

  	

   

  
	

  Section

  9.01.

  	

  Eligibility

  Requirements for Owner Trustee

  	

   

  
	

  Section

  9.02.

  	

  Resignation

  or Removal of Owner Trustee

  	

   

  
	

  Section

  9.03.

  	

  Successor

  Owner Trustee

  	

   

  
	

  Section

  9.04.

  	

  Merger or

  Consolidation of Owner Trustee

  	

   

  
	

  Section

  9.05.

  	

  Appointment

  of Co-Trustee or Separate Trustee

  	

   

  
	

   

  	

   

  	

   

  
	

  ARTICLE X

  
	

   

  
	

  MISCELLANEOUS

  
	

   

  	

   

  	

   

  
	

  Section

  10.01.

  	

  Supplements

  and Amendments

  	

   

  
	

  Section

  10.02.

  	

  No

  Legal Title to Trust Estate in Transferor or O/C Holder

  	

   

  
	

  Section

  10.03.

  	

  Limitations

  on Rights of Others

  	

   

  
	

  Section

  10.04.

  	

  Notices

  	

   

  
	

  Section

  10.05.

  	

  Severability

  	

   

  
	

  Section

  10.06.

  	

  Separate

  Counterparts

  	

   

  
	

  Section

  10.07.

  	

  Successors

  and Assigns

  	

   

  
	

  Section

  10.08.

  	

  Nonpetition

  Covenants

  	

   

  
	

  Section

  10.09.

  	

  No

  Recourse

  	

   

  
	

  Section

  10.10.

  	

  Headings

  	

   

  
	

  Section

  10.11.

  	

  Governing

  Law

  	

   

  
	

  Section

  10.12.

  	

  Acceptance

  of Terms of Agreement

  	

   

  
	

  Section

  10.13.

  	

  Integration

  of Documents

  	

   

  
	

   

  	

   

  	

   

  
	

  EXHIBITS

  
	

   

  
	

  EXHIBIT A

  	

  FORM OF

  OWNERSHIP INTEREST CERTIFICATE

  	

   

  
	

   

  	

   

  	

   

  
	

  EXHIBIT B

  	

  FORM OF TRANSFEROR

  CERTIFICATE

  	

   

  
	

   

  	

   

  	

   

  
	

  EXHIBIT C

  	

  FORM OF CERTIFICATE

  OF TRUST

  	

   

  

 

iii

 

CSGQ TRUST TRUST AGREEMENT, dated as of June 24, 2002,

among PACCT, LLC, a Delaware limited liability company, as Transferor, CSG

FUNDING, LLC, a Delaware limited liability company, as O/C Holder, and

WILMINGTON TRUST COMPANY, a Delaware banking corporation, as Owner Trustee.

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.01.  Capitalized Terms.  For all purposes of this Agreement, the

following terms shall have the meanings set forth below:

 

“Administration Agreement” shall mean the

Administration Agreement, dated as of June 25, 2002, between the Issuer and

CSG, LLC, as Administrator.

 

“Administrator” shall mean CSG, LLC, or any

successor Administrator under the Administration Agreement.

 

“Agreement” shall mean this Trust Agreement of

CSGQ Trust, as the same may be amended, modified or otherwise supplemented from

time to time.

 

“Business Trust Statute” shall mean Chapter 38

of Title 12 of the Delaware Code, 12 Del. C. § 3801, et seq., as

the same may be amended from time to time.

 

“Certificates” shall mean, unless otherwise

indicated, the Transferor Certificate and the Ownership Interest Certificate.

 

“Certificate of Trust” shall mean the

Certificate of Trust in the form attached hereto as Exhibit C which has been

filed for the Trust pursuant to Section 3810(a) of the Business Trust Statute.

 

“Corporate Trust Office” shall mean, with

respect to the Owner Trustee, the principal corporate trust office of the Owner

Trustee located at Rodney Square North, 1100 North Market Street, Wilmington,

Delaware 19890-0001, Attention: Corporate Trust Administration; or such other

address as the Owner Trustee may designate by notice to the Transferor, or the

principal corporate trust office of any successor Owner Trustee (the address of

which the successor Owner Trustee will notify the Owner, the Indenture Trustee,

the Note Administrator, the Transferor and the O/C Holder).

 

“CompuCredit” shall mean CompuCredit

Corporation, a Georgia corporation.

 

“Expenses” shall have the meaning specified in

Section 7.02.

 

“Indemnified Parties” shall have the meaning

specified in Section 7.02.

 

“Indenture” shall mean the Master Indenture,

dated as of June 25, 2002, among the Trust, U.S. Bank National Association, as

Indenture Trustee, and Citibank, N.A., as Note Administrator, as the same may

be amended, supplemented or otherwise modified from time to time.

 

“Indenture Trustee” shall mean U.S. Bank

National Association, not in its individual capacity but solely as Indenture

Trustee under the Indenture, and any successor Indenture Trustee under the

Indenture.

 

 

 “Issuer”

shall mean the Trust.

 

“Note Administrator” shall mean Citibank, N.A.,

not in its individual capacity but solely as Note Administrator under the

Indenture, and any successor Note Administrator under the Indenture.

 

“O/C Holder” shall mean CSG Funding, LLC, in

its capacity as O/C Holder hereunder and its successors and assigns in such

capacity.

 

“Owner” shall mean PACCT, LLC, and its

successors and permitted assigns, in its capacity as beneficial owner of the

Trust hereunder and its successors and assigns in such capacity.

 

“Owner Trustee” shall mean Wilmington Trust

Company, a Delaware banking corporation, not in its individual capacity but

solely as Owner Trustee under this Agreement, and any successor Owner Trustee

hereunder.

 

“Ownership Interest Certificate” shall mean the

certificate evidencing the beneficial ownership interest of the Owner in the

Trust, substantially in the form attached hereto as Exhibit A.

 

“Secretary of State” shall mean the Secretary

of State of the State of Delaware.

 

“Transfer and Servicing Agreement” shall mean

the Transfer and Servicing Agreement, dated as of June 25, 2002, among the

Issuer, the Transferor, CompuCredit, as Servicer, and the O/C Holder, as the

same may be amended, supplemented or otherwise modified from time to time.

 

“Transferor” shall mean PACCT, LLC, in its

capacity as Transferor hereunder and its successors and assigns in such

capacity.

 

“Transferor Certificate” shall mean the

certificate executed by the Owner Trustee on behalf of the Trust and authenticated

by or on behalf of the Owner Trustee, substantially in the form attached hereto

as Exhibit B.

 

“Trust” shall mean the trust created by this

Agreement and the filing of the Certificate of Trust.

 

“Trust Estate” shall mean all right, title and

interest of the Trust in and to the property and rights assigned to the Trust

pursuant to Section 2.05 of this Agreement and Section 2.01 of the Transfer and

Servicing Agreement, all monies, investment property, instruments and other

property on deposit from time to time in the Collection Account and the Series

Accounts and all other property of the Trust from time to time, including any

rights of the Owner Trustee and the Trust pursuant to the Transaction

Documents.

 

“Trust Termination Date” shall have the meaning

specified in Section 8.01.

 

SECTION 1.02.

Other Definitional Provisions. 

Capitalized terms used herein and not otherwise defined have the

meanings assigned to them in the Transfer and Servicing Agreement or, if not

defined therein, in the Indenture.

 

(a)           All terms defined in this Agreement

shall have the defined meanings when used in any certificate or other document

made or delivered pursuant hereto unless otherwise defined therein.

 

(b)           As used in this Agreement and in any

certificate or other document made or delivered pursuant hereto or thereto,

accounting terms not defined in this Agreement or in any such certificate or

 

2

 

other document, and

accounting terms partly defined in this Agreement or in any such certificate or

other document to the extent not defined, shall have the respective meanings

given to them under GAAP.  To the extent

that the definitions of accounting terms in this Agreement or in any such

certificate or other document are inconsistent with the meanings of such terms

under GAAP, the definitions contained in this Agreement or in any such

certificate or other document shall control.

 

(c)           The words “hereof,” “herein,”

“hereunder,” and words of similar import when used in this Agreement shall

refer to this Agreement as a whole and not to any particular provision of this

Agreement; Section, subsection and Exhibit references contained in this

Agreement are references to Sections, subsections and Exhibits in or to this

Agreement unless otherwise specified; and the term “including” shall mean

“including without limitation.”

 

(d)           The definitions contained in this

Agreement are applicable to the singular as well as the plural forms of such

terms and to the masculine as well as to the feminine and neuter genders of

such terms.

 

ARTICLE II

 

ORGANIZATION

 

SECTION 2.01.  Name.  The Trust created hereby shall be known as “CSGQ Trust,” in which

name the Trust and the Owner Trustee on behalf of the Trust each shall have

power and authority and is hereby authorized and empowered to and may conduct

the business of the Trust, make and execute contracts and other instruments on

behalf of the Trust and sue and be sued.

 

SECTION 2.02.  Office.  The office of the Trust shall be in care of the Owner Trustee at

the Corporate Trust Office or at such other address in the State of Delaware as

the Owner Trustee may designate by written notice to the Owner, the Indenture

Trustee, the Note Administrator and the Transferor.

 

SECTION 2.03.  Purpose and Powers.  The

purpose of the Trust is to engage in the activities set forth in this Section

2.03.  The Trust shall have power and

authority and is hereby authorized and empowered, without the need for further

action on the part of the Trust, and the Owner Trustee shall have power and

authority, and is hereby authorized and empowered, in the name of and on behalf

of the Trust, to do or cause to be done all acts and things necessary,

appropriate or convenient to cause the Trust to engage in the activities set

forth in this Section 2.03 as follows:

 

(i)            to

execute, deliver and issue the Notes and the O/C Certificate from time to time

pursuant to the Indenture and to issue and authenticate the Certificates

pursuant to this Agreement and, in connection with the execution, delivery or

issuance of such Notes, O/C Invested Amount and Certificates, to enter into or

purchase for the benefit of the third-party beneficial interest holders any

futures, forwards, swaps, interest rate caps or other passive derivative financial

instruments with similar characteristics, which financial instruments cannot be

contrary to the status of the Trust as a qualified special purpose entity under

existing accounting literature and which do not involve the Owner Trustee in

making decisions, other than as expressly set forth herein;

 

(ii)           to

service, administer, collect, protect, invest and distribute the Trust Assets

as provide in this Agreement and the other Transaction Documents;

 

3

 

(iii)          with

the proceeds of the sale of the Notes, to accept, acquire and hold for the

benefit of the Holders of the Notes and any other interests in the Trust the

Trust Assets from, and to pay to, the Transferor the amounts owed to, the

Transferor pursuant to Section 2.01 of the Transfer and Servicing Agreement;

 

(iv)          to

assign, grant, transfer, pledge and mortgage the Collateral pursuant to the

Indenture and to hold, manage and distribute to the Transferor and the Owner or

the Noteholders pursuant to the terms of this Agreement and the Transaction

Documents any portion of the Collateral released from the Lien of, and remitted

to the Trust pursuant to, the Indenture;

 

(v)           to

enter into, execute, deliver and perform its obligations under the Transaction

Documents to which it is to be a party;

 

(vi)          to

engage in those activities, including executing, delivering and performing

agreements, certificates, instruments, reports, notices, filings and other

documents described in this Agreement and the other Transaction Documents, that

are necessary or suitable to accomplish the foregoing or are incidental thereto

or connected therewith; and

 

(vii)         subject

to compliance with the Transaction Documents, to engage in such other

activities as are required or suitable in connection with conservation of the

Trust Estate and the making of payments to the Noteholders and the O/C Holder

and distributions to the Transferor and the Owner, which activities shall not

be contrary to the status of the Trust as a qualified special purpose entity

under existing accounting literature.

 

The Trust shall not have power, authority or authorization to, and

shall not, engage in any activity other than in connection with the foregoing

or other than as required or authorized by the terms of this Agreement or the

Transaction Documents.

 

SECTION 2.04.  Appointment of Owner Trustee.  The

Transferor, at the direction of the O/C Holder, hereby appoints the Owner

Trustee as trustee of the Trust effective as of the date hereof, to have all

the rights, powers and duties set forth herein.

 

SECTION 2.05.  Initial Capital Contribution of Trust

Estate.  The Owner hereby assigns,

transfers, conveys and sets over to the Owner Trustee, as of the date hereof,

the sum of $1.  The Owner Trustee hereby

acknowledges receipt in trust from the Owner, as of the date hereof, of the

foregoing contribution, which shall constitute the initial Trust Estate and

shall be held by the Owner Trustee.  The

O/C Holder shall pay, or cause to be paid, organizational expenses of the Trust

as they may arise or shall, upon the request of the Owner Trustee, promptly

reimburse the Owner Trustee for any such expenses paid by the Owner Trustee.

 

SECTION 2.06.  Declaration of Trust.  The Owner Trustee hereby declares that it

will hold the Trust Estate in trust upon and subject to the conditions set

forth herein for the use and benefit of the Owner, subject to the obligations

of the Trust under the Transaction Documents to which it is a party, and

subject to the rights of the O/C Holder. 

It is the intention of the parties hereto that the Trust constitute a

business trust under the Business Trust Statute and that this Agreement

constitute the governing instrument of such business trust.  It is the intention of the parties hereto

that, for income tax purposes, the Trust shall be treated at any time, or from

time to time, as a security device and disregarded as an entity and its assets

shall be treated as owned in whole by the O/C Holder; provided, however,

that in the event the Transferor Amount is positive at any time, or from time

to time, it is the intention of the parties that the Transferor Amount and the

interest in the Trust held by the O/C Holder shall be treated as undivided

ownership interests in the Collateral and the other assets of the Trust (and

not as a partnership) for such

 

4

 

purposes at such

times.  The parties hereto agree that

they will take no action contrary to the foregoing intention.  Effective as of the date hereof, the Owner

Trustee shall have all rights, powers and authority set forth herein and, to

the extent not inconsistent herewith, in the Business Trust Statute with

respect to accomplishing the purposes of the Trust.

 

SECTION 2.07.  Title to Trust Property.  Legal title to all the Trust Estate 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

Estate to be vested in a trustee or trustees, in which case legal title shall

be deemed to be vested in the Owner Trustee, a co-trustee and/or a separate

trustee, as the case may be.

 

SECTION 2.08.  Situs of Trust.  The Trust will be located in the State of

Delaware. All bank accounts maintained by the Owner Trustee on behalf of the

Trust shall be located in the State of Delaware or the State of New York.  The Trust shall not have any employees in

any state other than Delaware; provided, however, that nothing

herein shall restrict or prohibit the Owner Trustee from having employees

within or without the State of Delaware. 

The Trust will be administered, and payments will be received by the

Trust only in Delaware, Georgia or New York, and payments will be made by the

Trust only from Delaware or New York. 

The only office of the Trust will be at the Corporate Trust Office in

Delaware.

 

SECTION 2.09.  Representations and Warranties of the

Transferor.  The Transferor hereby

represents and warrants to the Owner Trustee (as such or in its individual

capacity) and the O/C Holder that:

 

(a)  The Transferor is a limited liability

company organized and validly existing in good standing under the laws of the

State of Delaware and has, in all material respects, full power and authority

to own its properties and conduct its business as such properties are presently

owned and such business is presently conducted, and to execute, deliver and

perform its obligations under this Agreement and any other documents related

hereto to which it is a party and to perform its obligations as contemplated

hereby and thereby.

 

(b)  The Transferor is duly qualified to do

business and is in good standing (or is exempt from such requirement) in any

state required in order to conduct its business, and has obtained all necessary

licenses and approvals with respect to the Transferor, in each jurisdiction in

which failure to so qualify or to obtain such licenses and approvals would have

a material adverse effect on its ability to perform its obligations under this

Agreement or any other documents related hereto to which the Transferor is a

party.

 

(c)  The execution and delivery of this Agreement

by the Transferor and the consummation of the transactions provided for in this

Agreement and in the other Transaction Documents to which the Transferor is a

party have been duly authorized by the Transferor by all necessary corporate

action on its part; the Transferor has the power and authority to assign the

property to be assigned to and deposited with the Trust pursuant to Section

2.05 of this Agreement and Section 2.01 of the Transfer and Servicing

Agreement.

 

(d)  The execution and delivery of this Agreement

by the Transferor, the performance of the transactions contemplated by this

Agreement and the fulfillment by the Transferor of the terms hereof will not

conflict with or violate any organizational documents of the Transferor or

conflict with, result in any breach of any of the material terms and provisions

of, or constitute (with or without notice or lapse of time or both) a material

default under, any indenture, contract, agreement, mortgage, deed of trust or

other instrument to which the Transferor is a party or by which it or any of

its properties are bound, nor result in the creation or imposition of any lien

upon any of the Transferor’s properties pursuant to the terms of any

 

5

 

such indenture, contract,

agreement, mortgage, deed of trust or other instrument (other than pursuant to

the Transaction Documents and other than violations of such indentures,

contracts, agreements, mortgages, deeds of trust or other instruments which

individually or in the aggregate would not have a material adverse effect on

the Transferor or the transactions contemplated by, or its ability to perform

its obligations under, this Agreement).

 

(e)  The execution and delivery of this Agreement

by the Transferor, the performance by the Transferor of the transactions

contemplated by this Agreement and the fulfillment by the Transferor of the

terms hereof will not conflict with or violate any Requirements of Law

applicable to the Transferor.

 

(f)  There are no Proceedings or investigations

pending or, to the best knowledge of the Transferor, threatened against the

Transferor before any court, regulatory body, administrative agency, or other

tribunal or governmental instrumentality having jurisdiction over the

Transferor (i) asserting the invalidity of any of the Transaction Documents to

which the Transferor is a party, (ii) seeking to prevent the consummation of

any of the transactions contemplated by any of the Transaction Documents to

which the Transferor is a party, (iii) seeking any determination or ruling

that, in the reasonable judgment of the Transferor, would materially and

adversely affect the performance by the Transferor of its obligations under the

Transaction Documents to which the Transferor is a party, or (iv) seeking any

determination or ruling that would materially and adversely affect the validity

or enforceability of the Transaction Documents to which the Transferor is a

party.

 

(g)  This Agreement constitutes a legal, valid

and binding obligation of the Transferor, enforceable against the Transferor in

accordance with its terms, except as such enforceability may be limited by

applicable bankruptcy, insolvency, reorganization, receivership,

conservatorship, moratorium or other similar laws affecting creditors’ rights

generally or general principles of equity.

 

(h)  All authorizations, consents, orders or

approvals of or registrations or declarations with any court, regulatory body,

administrative agency or other tribunal or governmental instrumentality having

jurisdiction over the Transferor required to be obtained, effected, or given by

the Transferor in connection with the execution and delivery by the Transferor

of this Agreement and the performance of the transactions contemplated by this

Agreement by the Transferor have been duly obtained, effected or given and are

in full force and effect, except for those which the failure to obtain would

not have a material adverse effect on this Agreement and the transactions

contemplated hereby or on the ability of the Transferor to perform its

obligations under this Agreement.

 

SECTION 2.10.  Liability of Certificateholders.  The

holders of the Ownership Interest Certificate, the Transferor Certificate and

any interest in the Transferor shall be entitled to the same limitation of

personal liability extended to stockholders of private corporations for profit

organized under the General Corporation Law of the State of Delaware.

 

ARTICLE III

 

CERTIFICATES

 

SECTION 3.01.  Initial Ownership.  The Owner, in its capacity as the holder of

the Ownership Interest Certificate, and each Transferor, as the holder of a

Transferor Certificate (i) shall be the only beneficial owners of the Trust and

(ii) shall be bound by the provisions of this Trust Agreement.

 

SECTION 3.02.  Form of Certificates.  (a) The Ownership Interest Certificate shall

be issued in registered form in substantially the form attached hereto as

Exhibit A and initially registered as provided

 

6

 

in Annex 1 to Exhibit

A.  A Transferor Certificate shall be

issued in registered form in substantially the form attached hereto as Exhibit

B and initially registered as provided in Annex 1 to Exhibit B.

 

(b) The

Certificates shall be executed by manual or facsimile signature of an

authorized officer of the Owner Trustee. 

The Certificates bearing the manual or facsimile signatures of

individuals who were, at the time when such signatures shall have been affixed,

authorized to sign on behalf of the Trust, shall, when duly authenticated

pursuant to Section 3.03, be validly issued and fully paid undivided beneficial

interests in the assets of the Trust and entitled to the benefits of this Agreement,

notwithstanding that such individuals or any of them shall have ceased to be so

authorized prior to the authentication and delivery of the Certificates or did

not hold such offices at the date of authentication and delivery of the

Certificates.

 

SECTION 3.03.  Authentication of Certificates.  Concurrently with the initial assignment of

the Receivables to the Trust pursuant to the Transfer and Servicing Agreement,

the Owner Trustee shall execute, authenticate and deliver the Ownership

Interest Certificate and the Transferor Certificate to or upon the written

order of the Owner, signed by its chairman of the board, its president, any

vice president, secretary, any assistant treasurer or any authorized signatory,

without further corporate action by the Owner. No Certificate shall be entitled

to any benefit under this Agreement, or be valid for any purpose, unless there

appears on such Certificate a certificate of authentication substantially in

the form provided for herein, executed by or on behalf of the Owner Trustee by

the manual signature of a duly authorized signatory, and such certificate upon

any Certificate shall be conclusive evidence, and the only evidence, that such

Certificate has been duly authenticated, validly issued and delivered hereunder.  Each Certificate shall be dated the date of

its authentication.

 

SECTION 3.04.  Restrictions on Transfer.  To the fullest extent permitted by

applicable law, the Certificates (or any interest therein) may not be sold,

transferred, assigned, participated, pledged or otherwise disposed of to any

Person; provided, however, that a Certificate (or any interest

therein) may be sold, transferred, assigned, participated, pledged or otherwise

disposed of if (i) the transferor thereof has provided the Owner Trustee, the

Note Administrator and the Indenture Trustee with a Tax Opinion relating to

such sale, transfer, assignment, participation, pledge or other disposition and

(ii) the Rating Agency Condition has been satisfied with respect to such sale,

transfer, assignment, participation, pledge or other disposition.  Notwithstanding the foregoing, the Owner

Trustee shall treat the party in whose name the Certificate is registered as

the owner thereof for purposes hereunder.

 

SECTION 3.05. 

Mutilated, Destroyed, Lost or Stolen Certificate.  If

(a) a mutilated Certificate shall be surrendered to the Owner Trustee, or if

the Owner Trustee shall receive evidence to its satisfaction of the

destruction, loss or theft of a Certificate and (b) there shall be delivered to

the Owner Trustee (as such and in its individual capacity) such security or

indemnity as may be required by it to save it harmless, then the Owner Trustee

on behalf of the Trust shall execute and the Owner Trustee shall authenticate

and deliver, in exchange for or in lieu of the mutilated, destroyed, lost or

stolen Certificate, a new Certificate of like tenor and denomination.  In connection with the issuance of any new

Certificate under this Section 3.05, the Owner Trustee may require the payment

of a sum sufficient to cover any tax or other governmental charge or expense

that may be imposed in connection therewith. 

Any duplicate Certificate issued pursuant to this Section 3.05 shall

constitute conclusive evidence of ownership in the Trust, as if originally

issued, whether or not the lost, stolen or destroyed Certificate shall be found

at any time.

 

SECTION 3.06.  Issuance of New Transferor Certificate. 

Taken together, the Transferor Certificate shall represent an undivided

beneficial interest in the Trust Assets, subject to the lien of the Notes and

the O/C Certificate as provided in the Indenture, including the right to

receive Collections with respect to the Receivables and other amounts at the

times and in the amounts specified in the Indenture 

 

7

 

and any Indenture

Supplement to be paid to the Transferor on behalf of all holders of the

Transferor Certificate.

 

ARTICLE IV

 

ACTIONS BY OWNER TRUSTEE

 

SECTION 4.01.  Prior Notice to Owner, Transferor and O/C

Holder with Respect to Certain Matters. 

With respect to the following matters, unless otherwise instructed by

the O/C Holder or the Transferor, acting at the direction of the O/C Holder,

the Trust shall not take action unless at least thirty (30) days before the

taking of such action the Owner Trustee shall have notified the Owner, the

Transferor and the O/C Holder:

 

(a)  the initiation of any claim or lawsuit by

the Trust (other than an action to collect on the Trust Estate) and the settlement

of any action, claim or lawsuit brought by or against the Trust (other than an

action to collect on the Trust Estate);

 

(b)  the election by the Trust to file an

amendment to the Certificate of Trust (other than as may be required by the

Business Trust Statute);

 

(c)  the amendment of the Indenture by a

supplemental indenture in circumstances where the consent of any Noteholder is

required;

 

(d)  the amendment of the Indenture by a

supplemental indenture in circumstances where the consent of any Noteholder is

not required and such amendment materially adversely affects the interest of

the Transferor or the O/C Holder;

 

(e)  the amendment, change or modification of the

Administration Agreement, except to cure any ambiguity or to amend or

supplement any provision in a manner that would not materially adversely affect

the interests of the Transferor or the O/C Holder; or

 

(f)  the appointment pursuant to the Indenture of

a replacement or successor Transfer Agent and Registrar, Indenture Trustee or

Note Administrator, or the consent to the assignment by the Transfer Agent and

Registrar, Administrator, Indenture Trustee or Note Administrator of its

obligations under the Indenture.

 

SECTION 4.02. 

Restrictions on Power. 

(a)  The Owner Trustee shall not

be required to take or refrain from taking any action if such action or

inaction would be contrary to any obligation of the Trust or the Owner Trustee

(as such or in its individual capacity) under any of the Transaction Documents

or would be contrary to Section 2.03.

 

(b)  The Owner Trustee shall have no power to

create, assume or incur indebtedness or other liabilities in the name of the

Trust other than as contemplated in the relevant Transaction Documents.

 

ARTICLE

V

 

AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

SECTION 5.01.  General

Authority.  Each of the Trust and

the Owner Trustee in the name and on behalf of the Trust shall have power and

authority, and is hereby authorized and empowered, to execute and deliver the

Transaction Documents to which the Trust is to be a party and each certificate

or other

 

8

 

document related thereto

or attached as an exhibit to or contemplated by the Transaction Documents to

which the Trust is to be a party, or any amendment thereto or other agreement,

in each case, in such form as the O/C Holder shall approve as evidenced

conclusively by the Owner Trustee’s execution thereof and the O/C Holder’s

execution of the related documents.  In

addition to the foregoing, the Owner Trustee in the name and on behalf of the

Trust shall also have power and authority and is hereby authorized and

empowered, but shall not be obligated, to take all actions required of the

Trust pursuant to the Transaction Documents. 

The Owner Trustee in the name and on behalf of the Trust shall also have

power and authority and is hereby authorized and empowered from time to time to

take such action as the O/C Holder or the Administrator directs in writing with

respect to the Transaction Documents.

 

SECTION 5.02. 

General Duties.  It shall

be the duty of the Owner Trustee to discharge (or cause to be discharged) all

of its responsibilities pursuant to the terms of this Agreement and the other

Transaction Documents to which it is a party and to administer the Trust in the

interest of the Owner, subject to the Transaction Documents and in accordance

with the provisions of this Agreement. 

Notwithstanding the foregoing, the Owner Trustee shall be deemed to have

discharged its duties and responsibilities hereunder and under the other

Transaction Documents to the extent the Administrator has agreed in the

Administration Agreement or another Transaction Document to perform any act or

to discharge any duty of the Owner Trustee or the Trust under any Transaction

Document, and the Owner Trustee shall not be responsible for monitoring the

performance of the Administrator under the Administration Agreement and shall

not be personally liable for the default or failure of the Administrator to

carry out its obligations under the Administration Agreement.

 

SECTION 5.03.  Action Upon Instruction.

 

(a)   The Owner Trustee shall not be required to

take any action hereunder or under any other Transaction Document if the Owner

Trustee shall have reasonably determined, or shall have been advised by

counsel, that such action is likely to result in personal liability on the part

of the Owner Trustee or is contrary to the terms hereof or of any Transaction

Document or is otherwise contrary to law.

 

(b)   Whenever the Owner Trustee is unable to decide

between alternative courses of action permitted or required by the terms of

this Agreement or any Transaction Document, the Owner Trustee shall promptly

give notice (in such form as shall be appropriate under the circumstances) to

the O/C Holder requesting instruction as to the course of action to be adopted,

and to the extent the Owner Trustee acts or refrains from acting in good faith

in accordance with any such instruction of the O/C Holder received, the Owner

Trustee shall not be personally liable on account of such action or inaction to

any Person.  If the Owner Trustee shall

not have received appropriate instruction within ten (10) 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 may, but shall be under

no duty to, take or refrain from taking such action, not in violation of the

Transaction Documents, as it shall deem to be in the best interest of the

Owner, and shall have no personal liability to any Person for such action or

inaction.

 

(c)   In the event that the Owner Trustee is unsure

as to the application of any provision of any Transaction 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 the Owner Trustee or is silent or is

incomplete as to the course of action that the Owner Trustee is required to

take with respect to a particular set of facts, the Owner Trustee may give

notice (in such form as shall be appropriate under the circumstances) to the

O/C Holder requesting instruction and, to the extent that the Owner Trustee

acts or refrains from acting in good faith in accordance with any such instruction

received, the Owner Trustee shall not be personally liable, on account of such

action or inaction, to any Person.  If

the Owner Trustee shall not have received appropriate instruction within ten

(10) days of such notice (or within such shorter period of time as reasonably

may be specified in such

 

9

 

notice or may be

necessary under the circumstances) it may, but shall be under no duty to, take

or refrain from taking such action, not in violation of the Transaction

Documents, as it shall deem to be in the best interests of the Owner, and shall

have no personal liability to any Person for such action or inaction.

 

SECTION 5.04. 

No Duties Except as Specified in this Agreement or in Instructions.  The Owner 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 or the Trust Estate, or to

otherwise take or refrain from taking any action under, or in connection with,

this Agreement or any document contemplated hereby to which the Trust is a

party, except as expressly provided by the terms of this Agreement or in any

document or written instruction received by the Owner Trustee pursuant to

Section 5.03; and no implied duties or obligations shall be read into any

Transaction Document against the Owner Trustee.  The Owner Trustee shall have no responsibility for any filing or

recording, including filing any financing or 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 or the Trust hereunder or to

prepare or file any Commission filing for the Trust or to record any

Transaction Document.  The Owner Trustee

in its individual capacity nevertheless agrees that it will, at its own cost

and expense, promptly take all action as may be necessary to discharge any

liens on any part of the Trust Estate that result from actions by, or claims

against, the Owner Trustee in its individual capacity that are not related to

the ownership or the administration of the Trust Estate or the transactions

contemplated by the Transaction Documents.

 

SECTION 5.05. 

No Action Except under Specified Documents or Instructions.  The Owner Trustee shall not manage, control,

use, sell, dispose of or otherwise deal with any part of the Trust Estate

except (i) in accordance with the powers granted to and the authority conferred

upon the Owner Trustee pursuant to this Agreement, (ii) in accordance with the

Transaction Documents or (iii) in accordance with any document or instruction

delivered to the Owner Trustee pursuant to Section 5.03.

 

SECTION 5.06. 

Restrictions.  The Owner

Trustee shall not take any action (a) that, to the actual knowledge of the

Owner Trustee, would violate the purposes of the Trust set forth in Section

2.03, (b) that, to the actual knowledge of the Owner Trustee, would result in

the Trust’s becoming classified as an association (or publicly traded

partnership) taxable as a corporation for federal income tax purposes or (c)

that would be contrary to the powers provided to a qualifying special purpose

entity under generally accepted accounting principles.  Neither the O/C Holder nor the Transferor

shall direct the Owner Trustee to take any action that would violate the

provisions of this Section 5.06.

 

SECTION 5.07. 

Confidentiality.  To the

fullest extent permitted by applicable law, the Owner Trustee hereby agrees not

to disclose to any Person any of the account numbers or other information

contained in any schedule delivered to the Owner Trustee or the Trust, from

time to time, except (i) to a Successor Servicer or as required by a

Requirement of Law applicable to the Owner Trustee, (ii) in connection with the

performance of the Owner Trustee’s duties hereunder, (iii) to the Indenture

Trustee in connection with its duties in enforcing the rights of the

Noteholders, the O/C Holder and Series Enhancers or (iv) to bona fide creditors

or potential creditors of the Transferor or the Trust for the limited purpose

of enabling any such creditor to identify applicable Receivables subject to

this Agreement or the Indenture.  The

Owner Trustee hereby agrees to take such measures as shall be reasonably

requested by the O/C Holder or the Transferor, acting at the direction of the

O/C Holder, to protect and maintain the security and confidentiality of such

information.  The Owner Trustee shall

provide the Transferor and the O/C Holder with notice five (5) Business Days

prior to disclosure of any information of the type described in this Section

5.07.  The Owner Trustee shall also

enter into such reasonable confidentiality agreements as the Accounts Owner or

the Servicer shall deem necessary to protect its interests and as are

reasonably acceptable in form and substance to the Owner Trustee.

 

10

 

ARTICLE

VI

 

CONCERNING THE OWNER TRUSTEE

 

SECTION 6.01.  Acceptance

of Trusts and Duties.  The Owner

Trustee accepts the trusts hereby created and agrees to perform its duties

hereunder with respect to such trusts, but only upon the terms of this

Agreement.  The Owner Trustee also

agrees to disburse all moneys actually received by it constituting part of the

Trust Estate upon the terms of the Transaction Documents.  The Owner Trustee shall not be personally

answerable or accountable under any Transaction Document under any

circumstances, except (i) for its own willful misconduct, bad faith or gross

negligence in the performance of its duties or the omission to perform any such

duties or (ii) in the case of the inaccuracy of any representation or

warranty contained in Section 6.03 expressly made by the Owner Trustee in its

individual capacity.  In particular, but

not by way of limitation:

 

(a)   the Owner Trustee shall not be personally

liable for any error of judgment made in good faith by the Owner Trustee;

 

(b)   the Owner Trustee shall not be personally

liable with respect to any action taken or omitted to be taken by it in

accordance with the instructions of the Administrator, the Transferor or the

O/C Holder;

 

(c)   no provision of this Agreement or any other

Transaction Document shall require the Owner Trustee to expend or risk funds or

otherwise incur any personal financial liability in the exercise or performance

of any of its duties, rights or powers hereunder or under any other Transaction

Document, if the Owner Trustee shall have reasonable grounds for believing that

repayment of such funds or adequate indemnity against such risk or liability is

not reasonably assured or provided to it (as such and in its individual

capacity);

 

(d)   under no circumstances shall the Owner

Trustee be personally liable for indebtedness evidenced by or arising under any

of the Transaction Documents, including the principal of and interest on the

Notes;

 

(e)   the Owner Trustee shall not be personally

responsible for or in respect of the validity or sufficiency of this Agreement,

the due execution hereof by the Transferor and the O/C Holder or the form,

character, genuineness, sufficiency, value or validity of any of the Trust

Estate, the Transaction Documents, the Notes or the Certificates other than the

genuineness of the Owner Trustee’s signature on the Certificates and the

certificate of authentication on the Certificates and its representations and

warranties in Section 6.03, and the Owner Trustee shall in no event assume or

incur any personal liability, duty, or obligation to any Noteholder or to the

Owner or any other Person, other than as expressly provided for herein or expressly

agreed to in the other Transaction Documents;

 

(f)    the Owner Trustee shall not be personally

liable for the default or misconduct of the Transferor, the O/C Holder, the

Servicer, the Administrator, the Note Administrator or the Indenture Trustee or

any other Person under any of the Transaction Documents or otherwise, and the

Owner Trustee shall have no obligation or personal liability to perform the

obligations of the Trust under the Transaction Documents, including those that

are required to be performed by the Administrator under the Administration

Agreement, the Indenture Trustee and the Note Administrator under the Indenture

or the Servicer under the Transfer and Servicing Agreement;

 

(g)   the Owner Trustee shall be under no

obligation to exercise any of the rights or powers vested in it by this

Agreement, or to institute, conduct or defend any litigation under this

Agreement or otherwise or in relation to this Agreement or any other

Transaction Document, at the request, order or direction of

 

11

 

the Transferor or the O/C

Holder, unless the O/C Holder has offered to the Owner Trustee (as such and in

its individual capacity) security or indemnity satisfactory to it against the

costs, expenses and liabilities that may be incurred by the Owner Trustee

therein or thereby.  The right of the

Owner Trustee to perform any discretionary act enumerated in this Agreement or

any other Transaction Document shall not be construed as a duty, and the Owner

Trustee shall not be answerable or personally liable to any Person for any such

act other than liability to the Trust and the beneficial owners of the Trust

for its own gross negligence or willful misconduct in the performance of any

such act or the omission to perform any such act; and

 

(h)   Notwithstanding anything contained herein to

the contrary, the Owner Trustee shall not be required to take any action in any

jurisdiction other than in the State of Delaware if the taking of such action

will (i) require the registration with, licensing by or the taking of any other

similar action in respect of, any state or other governmental authority or

agency of any jurisdiction other than the State of Delaware by or with respect

to the Owner Trustee (as such or in its individual capacity); (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

the State of Delaware becoming payable by the Owner Trustee (as such or in its

individual capacity); or (iii) subject the Owner Trustee (as such or in its

individual capacity) to personal jurisdiction in any jurisdiction other than

the State of Delaware for causes of action arising from acts unrelated to the

consummation of the transactions by the Owner Trustee contemplated hereby.  The Owner Trustee shall be entitled to

obtain advice of counsel (which advice shall be an expense of the O/C Holder)

to determine whether any action required to be taken pursuant to this Agreement

results in any of the consequences described in clauses (i), (ii) and (iii) of

the preceding sentence.  In the event

that said counsel advises the Owner Trustee that such action will result in

such consequences, the Transferor, at the direction of the O/C Holder, shall

appoint an additional trustee pursuant to Section 9.05 hereof to proceed with

such action.

 

SECTION 6.02. 

Furnishing of Documents. 

The Owner Trustee shall furnish to the Transferor, the O/C Holder, the

Indenture Trustee and the Note Administrator, promptly upon written request

therefor, duplicates or copies of all reports, notices, requests, demands,

certificates, financial statements and any other instruments furnished to the

Owner Trustee under the Transaction Documents.

 

SECTION 6.03. 

Representations and Warranties. 

The Owner Trustee (as such and in its individual capacity) hereby

represents and warrants to the Transferor and the O/C Holder that:

 

(a)   It is a Delaware banking corporation duly

organized and validly existing in good standing under the laws of the State of

Delaware. It has all requisite corporate power and authority to execute,

deliver and perform its obligations under this Agreement.

 

(b)   It has taken all corporate action necessary

to authorize the execution and delivery by it of this Agreement, and this

Agreement will be executed and delivered by one of its officers who is duly

authorized to execute and deliver this Agreement on its behalf.

 

(c)   Neither the execution nor the delivery by it

of this Agreement, nor the consummation by it of the transactions contemplated

hereby nor compliance by it with any of the terms or provisions hereof will

contravene any federal or Delaware law, governmental rule or regulation

governing the banking or trust powers of the Owner Trustee (as such and in its

individual capacity) or any judgment or order binding on it, or constitute any

default under its charter documents or by-laws or any indenture, mortgage,

contract, agreement or instrument to which it is a party or by which any of its

properties may be bound.

 

12

 

SECTION 6.04.  Reliance; Advice of Counsel.

 

(a)   The Owner Trustee shall incur no personal

liability to anyone in acting upon any signature, instrument, notice,

resolution, request, consent, order, certificate, report, opinion, bond, or

other document or paper reasonably believed by it to be genuine and reasonably

believed by it to be signed by the proper party or parties.  The Owner Trustee may accept a certified

copy of a resolution of the board of directors or other governing body of any

Person as conclusive evidence that such resolution has been duly adopted by

such body and that the same is in full force and effect.  As to any fact or matter the method of the

determination of which is not specifically prescribed herein, the Owner Trustee

may for all purposes hereof rely on a certificate, signed by the president or

any vice president or by the treasurer or other authorized officer of an

appropriate Person, as to such fact or matter, and such certificate shall

constitute full protection to the Owner Trustee for any action taken or omitted

to be taken by it in good faith in reliance thereon.

 

(b)   In the exercise or administration of the

trusts hereunder and in the performance of its duties and obligations under

this Agreement or the other Transaction Documents, the Owner Trustee (i) may

act directly or through its agents or attorneys pursuant to agreements entered

into with any of them, and the Owner Trustee shall not be personally liable for

the conduct or misconduct of such agents or attorneys if such agents or

attorneys shall have been selected by the Owner Trustee with reasonable care,

and (ii) may consult with counsel, accountants and other skilled Persons to be

selected with reasonable care and employed by it.  The Owner Trustee shall not be personally liable for anything

done, suffered or omitted in good faith by it in accordance with the written

opinion or written advice of any such counsel, accountants or other such

Persons.

 

SECTION 6.05. 

Not Acting in Individual Capacity.  Except as expressly provided in this Article VI, in accepting the

trusts hereby created, Wilmington Trust Company acts solely as Owner Trustee

hereunder and not in its individual capacity, and all Persons having any claim

against the Owner Trustee by reason of the transactions contemplated by any

Transaction Document shall look only to the Trust Estate for payment or

satisfaction thereof.

 

SECTION 6.06. 

Owner Trustee Not Liable for Certificates, Notes or Receivables.  The statements contained herein and in the

Certificates, Notes, and other Transaction Documents (other than the

genuineness of the signature and authentication (as applicable) of the Owner

Trustee on the Certificates and its representations and warranties in Section

6.03) shall be taken as the statements of the Transferor, and the Owner Trustee

assumes no responsibility for the correctness thereof.  The Owner Trustee makes no representations

as to the validity or sufficiency of this Agreement, any other Transaction

Document or the Certificates (other than the genuineness of the signature and

authentication (as applicable) of the Owner Trustee on the Certificates), the

Notes, or related documents.  The Owner Trustee

shall at no time have any responsibility or personal liability for or with

respect to the legality, validity and enforceability of the Receivables or the

perfection and priority of any security interest in the Receivables or the

maintenance of any such perfection and priority, or for or with respect to the

sufficiency of the Trust Estate or its ability to generate the payments to be

distributed to the Noteholders or the O/C Holder under the Indenture,

including, without limitation:  the

existence, condition and ownership of the Receivables; the existence and

contents of the Receivables on any computer or other record thereof; the

validity of the assignment of the Receivables to the Trust or of any

intervening assignment; the completeness of the Receivables; the performance or

enforcement of the Receivables; the compliance by the Transferor or the O/C

Holder with any warranty or representation made under any Transaction Document

or in any related document or the accuracy of any such warranty or

representation or any action of the Administrator, the Servicer, the Indenture

Trustee or the Note Administrator taken in the name of the Owner Trustee.

 

13

 

SECTION 6.07. 

Owner Trustee May Own Notes. 

The Owner Trustee in its individual or any other capacity may become the

owner or pledgee of Notes and may deal with the Transferor, the O/C Holder, the

Administrator, the Servicer, the Indenture Trustee or the Note Administrator in

banking transactions with the same rights as it would have if it were not Owner

Trustee.

 

ARTICLE

VII

 

COMPENSATION OF OWNER TRUSTEE

 

SECTION 7.01.  Owner

Trustee’s Fees and Expenses.  The

Owner Trustee (in its individual capacity) shall receive as compensation for

its services hereunder such fees as have been separately agreed upon before the

date hereof between the O/C Holder and the Owner Trustee (in its individual

capacity), and the Owner Trustee (in its individual capacity) shall be entitled

to be reimbursed by the O/C Holder for its other reasonable expenses hereunder,

including the reasonable compensation, expenses and disbursements of such

agents, representatives, experts and counsel as the Owner Trustee may employ in

connection with the exercise and performance of its rights and its duties

hereunder and under the Transaction Documents; provided, however,

that the Owner Trustee’s right to enforce such obligations shall be subject to

the provisions of Section 10.08.

 

SECTION 7.02. 

Indemnification. To the fullest extent permitted by law, the O/C

Holder shall indemnify, defend and hold harmless the Owner Trustee (as such and

in its individual capacity) and its successors, assigns, directors, officers,

agents, employees and servants (collectively, the “Indemnified Parties”)

from and against, any and all liabilities, obligations, losses, damages, taxes,

claims, actions and suits, and any and all reasonable costs, expenses and

disbursements (including reasonable legal fees and expenses) of any kind and

nature whatsoever (collectively, “Expenses”) which may at any time be

imposed on, incurred by, or asserted against the Owner Trustee or any

Indemnified Party in any way relating to or arising out of the Transaction

Documents, the Trust Estate, the acceptance and administration of the Trust

Estate or any action or inaction of the Owner Trustee; provided that the

O/C Holder shall not be liable for or required to indemnify any Indemnified

Party from and against Expenses arising or resulting from any of the matters

described in the third sentence of Section 6.01 or Expenses for which indemnification

is actually received under other Transaction Documents; provided  further

that the O/C Holder shall not be liable for or required to indemnify an

Indemnified Party from and against expenses arising or resulting from (i) the

Indemnified Party’s own willful misconduct, bad faith or gross negligence, or

(ii) the inaccuracy of any representation or warranty contained in Section

6.03.  An Indemnified Party’s right to

enforce such obligation shall be subject to the provisions of Section

10.08.  The indemnities contained in

this Section 7.02 shall survive the resignation and termination of the Owner

Trustee or the termination of this Agreement.

 

SECTION 7.03. 

Payments to the Owner Trustee. 

Any amounts paid to an Indemnified Party pursuant to this Article VII

shall not be construed to be a part of the Trust Estate.

 

ARTICLE VIII

 

TERMINATION OF TRUST AGREEMENT

 

SECTION 8.01.  Termination

of Trust Agreement.

 

(a)   The Trust shall dissolve upon the earlier of

(i) January 1, 2022 (the “Trust Termination Date”), and

(ii) dissolution of the Trust in accordance with applicable law.  After satisfaction of liabilities of the

Trust as provided by applicable law, any money or other property held as part

of the Trust Estate following such distribution shall be distributed to the O/C

Holder.  The bankruptcy, liquidation,

 

14

 

dissolution, termination,

death or incapacity of the Transferor or the O/C Holder shall not (x) operate

to terminate this Agreement or annul, dissolve or terminate the Trust, or (y)

entitle the Transferor’s or the O/C Holder’s legal representatives or heirs to

claim an accounting or to take any action or proceeding in any court for a

partition or winding up of all or any part of the Trust or Trust Estate or (z)

otherwise affect the rights, obligations and liabilities of the parties hereto.

 

(b)   Except as provided in subsection 8.01(a),

neither the Transferor nor the O/C Holder shall be entitled to revoke, dissolve

or terminate the Trust.  The Owner shall

not be entitled to revoke, dissolve or terminate the Trust.

 

(c)   Upon completion of the winding up of the

Trust in accordance with the Business Trust Statute, the Owner Trustee shall

cause the 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 thereupon the Trust and this

Agreement (other than Articles VI and VII and Section 10.08) shall terminate.

 

ARTICLE

IX

 

SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

 

SECTION 9.01. 

Eligibility Requirements for Owner Trustee.  The Owner Trustee shall at all times be a

Person satisfying the provisions of Section 3807(a) of the Business Trust

Statute; authorized to exercise trust powers; having a combined capital and

surplus of at least $50,000,000 and subject to supervision or examination by

federal or state authorities; and having (or having a parent which has) a

rating of at least Baa3 by Moody’s and at least BBB- by Standard & Poor’s,

or otherwise satisfactory to each Rating Agency (it being understood that

Wilmington Trust Company is satisfactory to each Rating Agency).  If such Person shall publish reports of

condition at least annually, pursuant to law or to the requirements of the

aforesaid supervising or examining authority, then for the purpose of this

Section 9.01, the combined capital and surplus of such Person shall be deemed

to be its combined capital and surplus as set forth in its most recent report

of condition so published.  In case at

any time the Owner Trustee shall cease to be eligible in accordance with the

provisions of this Section 9.01, the Owner Trustee shall resign immediately in

the manner and with the effect specified in Section 9.02.

 

SECTION 9.02.  Resignation or Removal of Owner Trustee.  The Owner Trustee may at any time resign and

be discharged from the trusts hereby created by giving written notice thereof

to the Transferor and the O/C Holder; provided, however, that

such resignation and discharge shall only be effective upon the appointment of

a successor Owner Trustee.  Upon

receiving such notice of resignation, the Transferor, at the direction of the

O/C Holder, shall promptly appoint a successor Owner Trustee by written

instrument, in duplicate, one copy of which instrument shall be delivered to

the resigning Owner Trustee and one copy to the successor Owner Trustee.  If no successor Owner Trustee shall have

been so appointed and have accepted appointment within thirty (30) days after

the giving of such notice of resignation, the resigning Owner Trustee, at the

expense of the O/C Holder, shall petition any court of competent jurisdiction

for the appointment of a successor Owner Trustee.

 

If at any time the Owner Trustee shall cease to be eligible in

accordance with the provisions of Section 9.01 and shall fail to resign after

written request therefor by the O/C Holder, or if at any time the Owner Trustee

shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or

a receiver of the Owner Trustee or of its property shall be appointed, or any

public officer shall take charge or control of the Owner Trustee or of its

property or affairs for the purpose of rehabilitation, conservation or

liquidation, then the O/C Holder shall remove the Owner Trustee.  If the O/C Holder shall remove the Owner

Trustee under the authority of the immediately preceding sentence, the O/C

Holder shall promptly

 

15

 

(i) appoint a successor Owner Trustee by written

instrument, in duplicate, one copy of which instrument shall be delivered to

the outgoing Owner Trustee so removed and one copy to the successor Owner

Trustee and (ii) pay or cause to be paid all amounts owed to the outgoing Owner

Trustee in its individual capacity.

 

Any resignation or removal of the Owner Trustee and appointment of a

successor Owner Trustee pursuant to any of the provisions of this Section 9.02

shall not become effective until acceptance of appointment by the successor

Owner Trustee pursuant to Section 9.03 and, in the case of removal, payment of

all fees and expenses owed to the outgoing Owner Trustee (as such or in its

individual capacity).  The O/C Holder

shall provide notice of such resignation or removal of the Owner Trustee to each

Rating Agency.

 

SECTION 9.03. 

Successor Owner Trustee. 

Any successor Owner Trustee appointed pursuant to Section 9.02 shall

execute, acknowledge and deliver to the O/C Holder and the Transferor and to

its predecessor Owner Trustee an instrument accepting such appointment under

this Agreement, and thereupon the resignation or removal of the predecessor

Owner Trustee shall become effective and such successor Owner 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 Owner Trustee.  The predecessor Owner Trustee shall upon

payment of its fees and expenses deliver to the successor Owner Trustee all

documents and statements and monies held by it under this Agreement; and the

O/C Holder, the Transferor and the predecessor Owner 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 Owner Trustee

all such rights, powers, duties, and obligations.

 

No successor Owner Trustee shall accept appointment as provided in this

Section 9.03 unless at the time of such acceptance such successor Owner Trustee

shall be eligible pursuant to Section 9.01.

 

Upon acceptance of appointment by a successor Owner Trustee pursuant to

this Section 9.03, the O/C Holder shall mail notice of such acceptance of

appointment including the name of such successor Owner Trustee to the

Transferor, the Indenture Trustee, the Note Administrator, the Noteholders and

each Rating Agency.  If the O/C Holder

shall fail to mail such notice within ten (10) days after acceptance of

appointment by the successor Owner Trustee, the successor Owner Trustee shall

cause such notice to be mailed at the expense of the O/C Holder.

 

Upon acceptance of appointment by a successor Owner Trustee pursuant to

this Section 9.03, such successor Owner Trustee shall file an amendment to the

Certificate of Trust with the Secretary of State identifying the name and

principal place of business of such successor Owner Trustee in the State of

Delaware.

 

SECTION 9.04. 

Merger or Consolidation of Owner Trustee.  Notwithstanding anything herein to the

contrary, any Person into which the Owner 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 Owner Trustee shall be a party, or any

Person succeeding to all or substantially all of the corporate trust business

of the Owner Trustee, shall be the successor of the Owner Trustee hereunder

(provided that such Person shall meet the eligibility requirements set forth in

Section 9.01), without the execution or filing of any instrument or any further

act on the part of any of the parties hereto; provided  further

that (a) the Owner Trustee shall mail notice of such merger or consolidation to

each Rating Agency and (b) the Owner Trustee shall file any necessary

amendments to the Certificate of Trust with the Secretary of State.

 

16

 

SECTION 9.05. 

Appointment of Co-Trustee or Separate Trustee.  Notwithstanding any other provisions of this

Agreement, at any time, for the purpose of meeting any legal requirements of

any jurisdiction in which any part of the Trust Estate may at the time be

located, the O/C Holder and the Owner Trustee acting jointly shall have the

power and shall execute and deliver all instruments to appoint one or more

Persons approved by each of the O/C Holder and the Owner Trustee to act as

co-trustee, jointly with the Owner Trustee, or separate trustee or separate

trustees, of all or any part of the Trust Estate, and to vest in such Person,

in such capacity, such title to the Trust, or any part thereof, and, subject to

the other provisions of this Section 9.05, such powers, duties, obligations,

rights and trusts as the O/C Holder and the Owner Trustee may consider

necessary or desirable.  If the O/C

Holder shall not have joined in such appointment within fifteen (15) days after

the receipt by it of a request so to do, the Owner Trustee alone shall have the

power to make such appointment.  No

co-trustee or separate trustee under this Agreement shall be required to meet

the terms of eligibility as a successor trustee pursuant to Section 9.01 and no

notice of the appointment of any co-trustee or separate trustee shall be

required pursuant to Section 9.03.

 

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 Owner

Trustee shall be conferred upon and exercised or performed by the Owner Trustee

and such separate trustee or co-trustee jointly (it being understood that such

separate trustee or co-trustee is not authorized to act separately without the

Owner 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, the

Owner 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 the Owner Trustee;

 

(ii)           no

trustee under this Agreement shall be personally liable by reason of any act or

omission of any other trustee under this Agreement; and

 

(iii)          the

O/C Holder and the Owner Trustee acting jointly may at any time accept the

resignation of or remove any separate trustee or co-trustee.

 

Any notice, request or other writing given to the Owner 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 9.05. 

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 Owner 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, the Owner

Trustee.  Each such instrument shall be

filed with the Owner Trustee and a copy thereof given to the Transferor and the

O/C Holder.

 

Any separate trustee or co-trustee may at any time appoint the Owner

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 separate trustee or co-trustee shall die, 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 Owner Trustee, to the extent

permitted by law, without the appointment of a new or successor trustee.

 

17

 

ARTICLE

X

 

MISCELLANEOUS

 

SECTION 10.01.  Supplements and Amendments.  This Agreement may be amended from time to

time, by a written amendment duly executed and delivered by the Transferor, the

O/C Holder and the Owner Trustee, with the written consent of the Indenture

Trustee, but without the consent of any of the Noteholders, and upon

satisfaction of the Rating Agency Condition, (1) to cure any ambiguity, (2) to

correct or supplement any provisions in this Agreement or (3) to add any other

provisions with respect to matters or questions arising under this Agreement

which shall not be inconsistent with the provisions of this Agreement; provided,

however, that such amendment will not, as evidenced by an Opinion of

Counsel addressed and delivered to the Owner Trustee, the Note Administrator

and the Indenture Trustee, cause the Trust to be classified as an association

(or a publicly traded partnership) taxable as a corporation for federal income

tax purposes; provided  further that Section 2.03 of this

Agreement may be amended only with the consent of the Holders of Notes

evidencing not less than a majority of the Outstanding Amount of the Notes

(other than Notes actually known to a Responsible Officer of the Indenture

Trustee to be held by the Transferor, its affiliates or its agents).  Additionally, notwithstanding the preceding

sentence, this Agreement may be amended by the Transferor, the O/C Holder and

the Owner Trustee without the consent of the Indenture Trustee or any of the

Noteholders to add, modify or eliminate such provisions as may be necessary or

advisable in order to enable all or a portion of the Trust (i) to qualify as,

and to permit an election to be made to cause the Trust to be treated as, a

“financial asset securitization investment trust” as described in the

provisions of Section 860L of the Code, (ii) to avoid the imposition of state

or local income or franchise taxes imposed on the Trust’s property or its

income or (iii) if such amendment is (a) administrative in nature or (b)

entered into for the purpose of preserving the intended sales treatment under

GAAP of the transactions contemplated in the Transaction Documents; provided,

however, that (1) the O/C Holder delivers to the Indenture Trustee,

the Note Administrator and the Owner Trustee an Officer’s Certificate, and with

respect to clause (iii)(b) above, a Tax Opinion, to the effect that the

proposed amendments meet the requirements set forth in this subsection,

(2) the Rating Agency Condition shall have been satisfied with respect to

such amendment and  (3) such amendment

does not adversely affect the rights, benefits, protections, privileges,

immunities, duties or obligations of the Owner Trustee hereunder without the

consent of the Owner Trustee; provided  further, however,

that such amendment will not significantly change the activities of the Trust

as set forth in Section 2.03.

 

This Agreement may also be amended from time to time by a written

amendment duly executed and delivered by the Transferor, the O/C Holder and the

Owner Trustee, with the consent of the Indenture Trustee and the Holders of

Notes evidencing not less than a majority of the Outstanding Amount of the

Notes (other than Notes actually known to a Responsible Officer of the

Indenture Trustee to be held by the Transferor, its affiliates or its agents),

and upon satisfaction of the Rating Agency Condition for the purpose of adding

any provisions to or changing in any manner or eliminating any of the

provisions of this Agreement or of modifying in any manner the rights of the

Noteholders; provided, however, that without the consent of all

Noteholders (other than Notes actually known by a Responsible Officer of the

Indenture Trustee to be held by the Transferor, its affiliates or its agents),

no such amendment shall (a) increase or reduce in any manner the amount of, or

accelerate or delay the timing of distributions that are required to be made

for the benefit of the Noteholders or (b) reduce the aforesaid percentage of

the Outstanding Amount of the Notes, the Holders of which are required to

consent to any such amendment; provided  further, that such

amendment will not, as evidenced by an Opinion of Counsel addressed and

delivered to the Owner Trustee, the Note Administrator and the Indenture

Trustee, cause the Trust to be classified as an association (or a publicly

traded partnership) taxable as a corporation for federal income tax purposes.

 

18

 

Promptly after the execution of any such amendment or consent, the O/C

Holder shall furnish written notification of the substance of such amendment or

consent to the Indenture Trustee, the Note Administrator and each Rating

Agency.

 

It shall not be necessary for the consent of the Noteholders pursuant

to this Section 10.01 to approve the particular form of any proposed amendment

or consent, but it shall be sufficient if such consent shall approve the

substance thereof.

 

Promptly after the execution of any amendment to the Certificate of

Trust, the Owner Trustee shall cause the filing of such amendment with the

Secretary of State.

 

The Owner Trustee shall be entitled to receive, and shall be fully

protected in relying upon, an Officer’s Certificate of the Transferor to the

effect that the conditions to amendment have been satisfied.

 

The Owner Trustee may, but shall not be obligated to, enter into, and

unless it has consented thereto in writing shall not be bound by, any amendment

which affects the Owner Trustee’s own rights, duties, benefits, protections,

privileges or immunities (as such or in its individual capacity) under this

Agreement or otherwise.

 

SECTION 10.02.  No Legal Title to Trust Estate in

Transferor or O/C Holder.  Neither

the Transferor nor the O/C Holder shall have legal title to any part of the

Trust Estate.  No transfer, by operation

of law or otherwise, of any right, title, and interest of the Transferor or the

O/C Holder to and in its undivided beneficial interest in the Trust Estate

shall operate to terminate this Agreement or annul, dissolve or terminate the

Trust or entitle any transferee to an accounting or to the transfer to it of

legal title to any part of the Trust Estate.

 

SECTION 10.03.  Limitations on Rights of Others.  The provisions of this Agreement are solely

for the benefit of the Owner Trustee (as such or in its individual capacity),

the other Indemnified Parties, the Transferor, the O/C Holder, the holder of

any Certificate and, to the extent expressly provided herein, the Indenture

Trustee, the Note Administrator and the Noteholders, and nothing in this

Agreement, whether express or implied, shall be construed to give to any other

Person any legal or equitable right, remedy or claim in the Trust Estate or

under or in respect of this Agreement or any covenants, conditions or

provisions contained herein.

 

SECTION 10.04.  Notices.  Unless otherwise expressly specified or permitted by the terms

hereof, all notices and other communications shall be in writing and shall be

deemed given upon receipt by the intended recipient or three (3) Business Days

after mailing if mailed by certified mail, postage prepaid (except that notice

to the Owner Trustee, the Transferor, the O/C Holder, the Note Administrator or

the Indenture Trustee shall be deemed given only upon actual receipt by the

Owner Trustee, the Transferor, the O/C Holder, the Note Administrator or the

Indenture Trustee), if to the Owner Trustee, addressed to the Corporate Trust

Office; if to the Indenture Trustee, addressed to U.S. Bank National

Association, 180 East Fifth Street, St. Paul, Minnesota 55101, Attention:

Structured Finance/Project PACCT; if to the Note Administrator, addressed to

Citibank, N.A., 111 Wall Street, Zone 3, 14th Floor, New York, New York 10005,

Attention: Project PACCT; if to the Transferor, addressed to PACCT, LLC, c/o

Providian Financial Corporation, 201 Mission Street, San Francisco, California

94105, Attention: Chief Financial Officer; if to the O/C Holder, addressed to

CSG Funding, LLC, c/o CompuCredit Corporation, 245 Perimeter Center Parkway,

Suite 600, Atlanta, Georgia 30346; or, as to each party, at such other address

as shall be designated by such party in a written notice to each other party.

 

SECTION 10.05.  Severability.  Any provision of this Agreement that is

prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,

be ineffective to the extent of such

 

19

 

prohibition or

unenforceability without invalidating the remaining provisions hereof, and any

such prohibition or unenforceability in any jurisdiction shall not invalidate

or render unenforceable such provision in any other jurisdiction.

 

SECTION 10.06.  Separate Counterparts.  This Agreement may be executed by the

parties hereto in separate counterparts, each of which when so executed and

delivered shall be an original, but all such counterparts shall together

constitute but one and the same instrument.

 

SECTION 10.07.  Successors and Assigns.  All covenants and agreements contained

herein shall be binding upon, and inure to the benefit of, the Transferor and

the O/C Holder and their permitted assignees and the Owner Trustee (as such or

in its individual capacity) and its successors, all as herein provided.  Any request, notice, direction, consent,

waiver or other instrument or action by the Transferor or the O/C Holder shall

bind the successors and assigns of the Transferor or the O/C Holder,

respectively.

 

SECTION 10.08.  Nonpetition Covenants.  To the fullest extent permitted by

applicable law, notwithstanding any prior termination of the Trust or this

Agreement, Wilmington Trust Company, individually or in its capacity as Owner

Trustee, shall not at any time with respect to the Trust, acquiesce, petition

or otherwise invoke or cause the Trust to invoke the process of any court or

governmental authority for the purpose of commencing or sustaining a case against

the Trust under any federal or state bankruptcy, insolvency or similar law or

appointing a receiver, conservator, liquidator, assignee, trustee, custodian,

sequestrator or other similar official of the Trust or any substantial part of

its property, or ordering the winding up or liquidation of the affairs of the

Trust; provided, however, that this Section 10.08 shall not

operate to preclude any remedy described in Article V of the Indenture.

 

To the fullest extent permitted by applicable law, notwithstanding any

prior termination of the Trust or this Agreement, the Transferor and the O/C

Holder shall not at any time with respect to the Trust, acquiesce, petition or

otherwise invoke or cause the Trust to invoke the process of any court or

governmental authority for the purpose of commencing or sustaining a case

against the Trust under any federal or state bankruptcy, insolvency or similar

law or appointing a receiver, conservator, liquidator, assignee, trustee,

custodian, sequestrator or other similar official of the Trust or any

substantial part of its property, or ordering the winding up or liquidation of

the affairs of the Trust; provided, however, that this Section

10.08 shall not operate to preclude any remedy described in Article V of the

Indenture.

 

SECTION 10.09.  No Recourse.  Each Person holding or owning a Certificate,

by accepting the Certificates, acknowledges that the Certificates do not

represent interests in or obligations of the Servicer, the Transferor, the O/C

Holder, Providian National Bank, the Owner Trustee (as such or in its

individual capacity), the Indenture Trustee, the Note Administrator or any

Affiliate thereof (other than the Trust), and no recourse may be had against

such parties or their assets, or against the assets pledged under the

Indenture, except as expressly provided in the Transaction Documents.

 

SECTION 10.10.  Headings.  The headings of the various Articles and Sections herein are for

convenience of reference only and shall not define or limit any of the terms or

provisions hereof.

 

SECTION 10.11.  GOVERNING LAW.  THIS AGREEMENT SHALL BE CONSTRUED IN

ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS

CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE

PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

SECTION 10.12.  Acceptance of Terms of Agreement.   THE RECEIPT AND ACCEPTANCE OF THE OWNERSHIP

INTEREST CERTIFICATE BY THE OWNER AND THE

 

20

 

TRANSFEROR CERTIFICATE BY

THE TRANSFEROR, WITHOUT ANY SIGNATURE OR FURTHER MANIFESTATION OF ASSENT, SHALL

CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE OWNER AND THE TRANSFEROR,

RESPECTIVELY, OF ALL THE TERMS AND PROVISIONS OF THIS AGREEMENT, AND SHALL

CONSTITUTE THE AGREEMENT OF THE TRUST THAT THE TERMS AND PROVISIONS OF THIS

AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS AMONG THE TRUST, THE

OWNER, THE TRANSFEROR AND THE O/C HOLDER.

 

SECTION 10.13.  Integration of Documents.  This Agreement constitutes the entire agreement

of the parties hereto and thereto with respect to the subject matter hereof and

supersedes all prior agreements relating to the subject matter hereof.

 

[Signature Page to

Follow]

 

21

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be

duly executed by their respective officers hereunto duly authorized, as of the

day and year first above written.

 

	

   

  	

  WILMINGTON TRUST COMPANY,

  as Owner Trustee

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  Name:

  
	

   

  	

   

  	

  Title:

  
	

   

  	

   

  	

   

  
	

   

  	

  PACCT, LLC,

  as Transferor

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  Name:

  
	

   

  	

   

  	

  Title:

  
	

   

  	

   

  	

   

  
	

   

  	

  CSG FUNDING, LLC,

  as O/C Holder

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  Name:

  
	

   

  	

   

  	

  Title:

  
					

 

 

[Signature Page to Trust

Agreement]

 

 

EXHIBIT A

 

Form of Ownership Interest Certificate

 

 

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THIS CERTIFICATE (OR

ANY INTEREST HEREIN) MAY NOT BE TRANSFERRED TO ANY PERSON EXCEPT IN ACCORDANCE

WITH THE TRUST AGREEMENT REFERRED TO HEREIN.

 

CSGQ TRUST

 

OWNER CERTIFICATE

 

 

R-1

 

(This Certificate does not represent an interest in or obligation of

PACCT, LLC, CSG Funding, LLC, CSG, LLC or any of their respective affiliates,

except to the extent described below.)

 

THIS CERTIFIES THAT PACCT, LLC is the registered Owner of the CSGQ

Trust (the “Trust”).

 

The Trust was created pursuant to (i) the filing of the Certificate of

Trust with the Secretary of State of the State of Delaware and (ii) the CSGQ

Trust Trust Agreement, dated as of June 24, 2002 (the “Trust

Agreement”), among PACCT, LLC (the “Transferor”), CSG

Funding, LLC (the “O/C Holder”) and Wilmington Trust

Company, as owner trustee (not in its individual capacity but solely as owner

trustee, the “Owner Trustee”). 

To the extent not otherwise defined herein, the capitalized terms used

herein have the meanings assigned to them in the Trust Agreement, including as

specified in subsection 1.02(a) of the Trust Agreement.

 

This Certificate is the duly authorized Certificate evidencing a

beneficial ownership interest in the Trust (herein called the “Certificate”).  This Certificate is issued under and is

subject to the terms, provisions and conditions of the Trust Agreement,

including the rights of the holder of the Transferor Certificate to which Trust

Agreement the holder by virtue of the acceptance hereof assents and by which

the holder is bound.

 

Notwithstanding any prior termination of the Trust Agreement, the

holder, by its acceptance of this Certificate, covenants and agrees that it

shall not at any time with respect to the Trust, acquiesce, petition or

otherwise invoke or cause the Trust to invoke the process of any court or

governmental authority for the purpose of commencing or sustaining a case

against the Trust under any federal or state bankruptcy, insolvency or similar

law or appointing a receiver, conservator, liquidator, assignee, trustee,

custodian, sequestrator or other similar official of the Trust or any

substantial part of its property, or ordering the winding up or liquidation of

the affairs of the Trust.

 

Unless the certificate of authentication hereon shall have been executed

by the Owner Trustee, by manual signature, this Certificate shall not entitle

the holder hereof to any benefit under the Trust Agreement, the Transfer and

Servicing Agreement or the Indenture or be valid for any purpose.

 

A-1

 

THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE

STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE

OBLIGATIONS, RIGHTS, AND REMEDIES OF THE HOLDER SHALL BE DETERMINED IN ACCORDANCE

WITH SUCH LAWS.

 

A-2

 

IN WITNESS WHEREOF, the Trust has caused this Certificate to be duly

executed.

 

	

   

  	

  CSGQ TRUST

  
	

   

  	

   

  
	

   

  	

  By:  

  WILMINGTON TRUST COMPANY,

  
	

   

  	

  not in its individual capacity but solely as Owner

  Trustee

  
	

   

  	

   

  
	

   

  	

   

  
	

  Dated:                 , 2002

  	

  By: 

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
				

 

 

CERTIFICATE

OF AUTHENTICATION

 

This is the Certificate referred to in the within-mentioned Trust

Agreement.

 

	

   

  	

  WILMINGTON TRUST COMPANY,

  not in its individual capacity but solely

  as Owner Trustee

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  Authorized Signatory

  
	

   

  	

   

  	

   

  

 

A-3

 

ANNEX

1 TO EXHIBIT A

 

Registered Owner and address:

 

PACCT, LLC

c/o Providian Financial Corporation

201 Mission Street

San Francisco, California 94105

 

Tax Identification Number: 71-0891098

 

A-4

 

EXHIBIT B

Form

of Transferor Certificate

 

THIS TRANSFEROR CERTIFICATE HAS NOT BEEN REGISTERED

UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 

NEITHER THIS TRANSFEROR CERTIFICATE NOR ANY PORTION HEREOF MAY BE

OFFERED OR SOLD EXCEPT IN COMPLIANCE WITH THE REGISTRATION PROVISIONS OF SUCH

ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH REGISTRATION PROVISIONS.

 

THIS TRANSFEROR CERTIFICATE IS NOT PERMITTED TO BE

TRANSFERRED, ASSIGNED, EXCHANGED OR OTHERWISE PLEDGED OR CONVEYED EXCEPT IN

COMPLIANCE WITH THE TERMS OF THE TRUST AGREEMENT REFERRED TO HEREIN.

 

	

  No. R-__

  	

   

  	

  One Unit

  

 

CSGQ TRUST

TRANSFEROR CERTIFICATE

 

THIS CERTIFICATE REPRESENTS AN INTEREST

IN CERTAIN ASSETS OF THE

CSGQ TRUST

 

Evidencing an interest in a trust, the corpus of which consists

primarily of receivables generated from time to time in the ordinary course of

business in a portfolio of revolving credit card accounts transferred by PACCT,

LLC (the “Transferor”).

 

(Not

an interest in or obligation of the Transferor, the O/C Holder, Providian

National Bank

or any affiliate thereof)

 

This certifies that PACCT, LLC is the registered owner of an undivided

beneficial interest in the assets of a trust (the “Trust”), subject to

the lien of the Notes as provided in the Master Indenture, dated the date

hereof (as amended and supplemented, the “Indenture”), among U.S. Bank National

Association, as Indenture Trustee, Citibank, N.A., as Note Administrator, and

the Trust, established pursuant to the Trust Agreement, dated as of June 24,

2002 (as amended and supplemented, the “Trust Agreement”), among the

Transferor, CSG Funding, LLC, as O/C Holder (the “O/C Holder”), and

Wilmington Trust Company, as owner trustee (not in its individual capacity, but

solely as owner trustee the “Owner Trustee”).  The corpus of the Trust consists of (a) a

portfolio of certain receivables (the “Receivables”) existing in the revolving

credit card accounts identified under the Transfer and Servicing Agreement,

dated the date hereof, as amended from time to time (the “Transfer and Servicing Agreement”),

among the Transferor, CompuCredit Corporation, as Servicer (the “Servicer”),

the O/C Holder and the Trust, as Issuer, from time to time (the “Accounts”),

(b) certain funds collected or to be collected from accountholders in respect

of the Receivables, (c) all funds which are from time to time on deposit in the

Collection Account and in the Series Accounts, (d) the benefits of any Series

Enhancements issued and to be issued by Series Enhancers with respect to one or

more Series and (e) all other assets and interests constituting the Trust,

including Interchange and Recoveries allocated to the Trust pursuant to the

Transfer and Servicing Agreement.  This

Certificate does not purport to summarize the Agreements and reference is made

to the Agreements for information with respect to the interests, rights,

benefits, obligations, proceeds and duties evidenced hereby and the rights,

duties and obligations of the Owner Trustee. 

A copy of the Agreements may be requested from the Owner Trustee by

writing to the Owner

 

B-1

 

Trustee at the Corporate Trust Office.  To the extent not defined herein, the

capitalized terms used herein have the meanings ascribed to them in the

Agreements.

 

This Certificate is issued under and is subject to the terms,

provisions and conditions of the Agreements, to which Agreements, as amended

and supplemented from time to time, the Transferor by virtue of the acceptance

hereof assents and is bound.

 

The Receivables consist of Principal Receivables which arise generally

from the purchase of merchandise and services and amounts advanced to

cardholders as cash advances and Finance Charge Receivables which arise

generally from Periodic Rate Finance Charges, Late Fees and other fees and

charges with respect to the Accounts.

 

This Certificate (this “Certificate”) is the Transferor

Certificate, which represents the undivided beneficial interest in certain

assets of the Trust, subject to the lien of the Notes and the O/C Certificate,

including the right to receive a portion of the Collections and other amounts

at the times and in the amounts specified in the Indenture.  In addition to the Transferor Certificate,

Notes and the O/C Certificate will be issued to investors pursuant to the

Indenture.

 

Unless otherwise specified in an Indenture Supplement with respect to a

particular Series, the Transferor has entered into the Transfer and Servicing

Agreement, and this Certificate is issued, with the intention that, for

federal, state and local income and franchise tax purposes, (a) the Notes of

each Series which are characterized as indebtedness at the time of their

issuance will qualify as indebtedness of the O/C Holder secured by the

Receivables and (b) the Trust shall not be treated as an association (or a

publicly traded partnership) taxable as a corporation.  The Transferor by the acceptance of this

Certificate, agrees to treat the Notes for federal, state and local income and

franchise tax purposes as indebtedness of the O/C Holder.

 

Subject to certain conditions and exceptions specified in the

Agreements, the obligations created by the Agreements and the Trust created

thereby shall terminate upon the earlier of (a) January 1, 2022 (the

“Trust

Termination Date”) and (b) dissolution of the Trust in

accordance with applicable law.

 

B-2

 

Unless the certificate of authentication hereon has been executed by or

on behalf of the Owner Trustee, by manual signature, this Certificate shall not

be entitled to any benefit under the Trust Agreement or be valid for any

purpose.

 

IN WITNESS WHEREOF, the Trust has caused this Certificate to be duly

executed.

 

	

   

  	

  CSGQ TRUST

  
	

   

  	

   

  	

   

  
	

    

  	

  By:

  	

  WILMINGTON TRUST COMPANY

  not in its individual capacity but solely as Owner Trustee

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  Name:

  
	

   

  	

   

  	

  Title:

  
	

  Dated: 

  [                    ,       ]

  	

   

  	

   

  

 

B-3

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

 

This is the Transferor Certificate described in the within-mentioned

Trust Agreement.

 

	

   

  	

  WILMINGTON TRUST COMPANY,

  
	

   

  	

  not in its individual capacity but solely

  
	

   

  	

  as Owner Trustee

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Authorized Signatory

  

 

B-4

 

ANNEX

1 TO EXHIBIT B

 

Registered Owner and address:

 

PACCT, LLC

c/o Providian Financial Corporation

201 Mission Street

San Francisco, California 94105

 

Tax Identification Number: 71-0891098

 

B-1

 

EXHIBIT C

 

FORM OF

CERTIFICATE

OF TRUST OF

CSGQ

TRUST

 

This Certificate of Trust of CSGQ Trust (the “Trust”) is being duly

executed and filed by the undersigned, as trustee, to form a business trust

under the Delaware Business Trust Act (12 Del. C. § 3801 et  seq.)

(the “Act”).

 

1.       Name.  The name of the business trust created

hereby is CSGQ Trust.

 

2.       Delaware

Trustee.  The name and business

address of the trustee of the Trust having its principal place of business in the

State of Delaware are Wilmington Trust Company, Rodney Square North, 1100 North

Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate Trust

Administration.

 

IN WITNESS WHEREOF, the undersigned has executed this Certificate of

Trust in accordance with Section 3811(a)(1) of the Act.

 

 

	

   

  	

  WILMINGTON TRUST COMPANY,

  not in its individual capacity but

  solely as owner trustee of the Trust

  Agreement

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  Name:

  
	

   

  	

   

  	

  Title:Exhibit

10.6

 

CSGQ TRUST,

SERIES 2002-1 CLASS B NOTES

SERIES 2002-1 O/C CERTIFICATES

 

PACCT, LLC

Seller

June 25, 2002

 

PURCHASE AGREEMENT

To the Persons listed on

 the attached Annex A

 

Ladies and Gentlemen:

 

1.             Introduction.  PACCT, LLC, a Delaware limited liability

company (the “Seller”), proposes to sell to the Class B Purchasers

(each, a “Class B Purchaser”) the aggregate amount of the Series 2002-1

Class B Notes (the “Notes”) and to sell to the O/C Purchaser (the “O/C

Purchaser,” and together with the Class B Purchasers, the “Purchasers”

and each a “Purchaser) the aggregate initial invested amount of the

Series 2002-1 O/C Certificates (the “Certificates”) set forth opposite

the Purchasers’ name in Schedule I attached hereto.  The Notes and Certificates will be issued by

CSGQ Trust (the “Trust”) pursuant to the Master Indenture dated as of

June 25, 2002 (as amended, restated, supplemented or otherwise modified and in

effect, the “Master Indenture”), among the Trust, U.S. Bank National

Association, as Indenture Trustee (the “Indenture Trustee”) and

Citibank, N.A., as the Note Administrator (the “Note Administrator”) and

pursuant to the CSGQ Trust, Series 2002-1 Indenture Supplement, Term Notes,

dated as of June 25, 2002 (as amended, restated, supplemented or otherwise

modified and in effect, the “Series 2002-1 Indenture Supplement”) among

the Trust, the Indenture Trustee and the Note Administrator.  In addition to the Notes and Certificates

described herein, the Trust will also be issuing its Class A-1FL Notes, Class

A-1FX Notes, Class A-2FL Notes, Class A-2FX Notes, Class A-3FL Notes, Class A-3

FX Notes, Class A-4FL Notes and Class A-4FX Notes.

 

All capitalized terms used herein shall have the meanings specified

herein or in the Series 2002-1 Indenture Supplement, and shall include in the

singular number the plural and in the plural number the singular and the

masculine of such terms as well as the feminine and neuter of such terms.

 

2.             Representations

and Warranties.  Each of Providian

and the Seller (in its capacity as Seller and as Transferor), jointly and

severally, represents and warrants to, and agrees with, each Purchaser that:

 

(a)           The Providian

Information (as defined or referenced herein) set forth in the Offering

Circular and any amendments or supplements thereto, as of the date thereof and

as of the Closing Date, did not contain any untrue statement of a material fact

 

 

or omit to

state a material fact required to be stated therein or necessary to make the

statements therein, in the light of the circumstances under which they were

made, not misleading.  “Providian

Information” shall mean, (i) for purposes of the offering circular

supplement, the information set forth (A) in paragraphs 1 and 2 of the

Executive Summary, (B) under the captions “Summary of Terms—Providian National

Bank,” “—Transferor” (first paragraph only) and “—The Receivables,” “The

Receivables” and “The Master Trust Portfolios” (including each of the tables

with information on the credit card accounts and the related receivables set

forth under “The Receivables” and “The Master Trust Portfolios”), (C) the

information set forth under “Risk Factors—Legal and regulatory proceedings

against Providian could reduce or delay payments on your Certificates,” (first

paragraph only) and “—Certain regulatory matters involving Providian could

reduce or delay payments on your Certificates” (first and second paragraphs

only) and (D) in the disk containing historical information on the credit card

accounts and the related credit card receivables included in the offering

circular supplement and (ii) for purposes of the base offering circular, the

information set forth under the captions “The Transferor,” “Underwriting

Procedures for the Master Trust Portfolios,” and “Providian National Bank.” It

is understood and agreed that none of the Providian Information shall be

considered or deemed to be a representation or warranty as to (i) the credit

quality of the Accounts or the Receivables (as such terms are defined in the

Offering Circular), provided, that the foregoing reference to credit

quality shall not be deemed to limit Providian’s obligation to include true,

accurate and complete FICO scores in the Providian Information, (ii) the

targeting, underwriting or credit criteria (other than the compliance of such

criteria with requirements of law) used in connection with the Accounts or the

Receivables except for such information set forth under (A) the table entitled

“Origination Channel” in each Term Sheet and (B) “Underwriting Procedures for

the Master Trust Portfolios” in the Preliminary Base Offering Circular and Base

Offering Circular or (iii) the future performance of the Receivables or the

Accounts.

 

(b)           As of the Closing

Date, the Seller is duly organized and is validly existing as a limited liability

company in good standing under the laws of the State of Delaware and has all

requisite power and authority (limited liability company or other) to own its

properties and to conduct its business as described in the Offering Circular,

and has been duly qualified as a foreign entity for the transaction of business

and is in good standing under the laws of each other jurisdiction in which it

owns or leases property or conducts any business so as to require such

qualification, except where the failure to be in good standing, to have such

power or authority, or to be so qualified has not had and is not reasonably

likely to have a material adverse effect on the holders of the Notes or

Certificates.

 

(c)           As of the Closing

Date, Providian is duly organized and is validly existing as a national banking

association under the federal laws of the United States and has all requisite

power and authority (corporate or other) to own its properties and to conduct

its business as described in the Offering Circular, and has been duly qualified

as a foreign entity for the transaction of business and is in good standing

under the laws of each other jurisdiction in which it owns or leases property

or conducts any business so as to require such qualification, except where the

failure to be in good standing, to have

 

2

 

such power or authority, or to be so qualified has not had and is not

reasonably likely to have a material adverse effect on the holders of the Notes

or Certificates.

 

(d)           As of the Closing

Date, each Transaction Document to which the Seller or Providian is a party

shall have been duly authorized, executed and delivered by the Seller or

Providian, as applicable.

 

(e)           As of the Closing

Date, Providian in its capacity as Accounts Owner shall have fulfilled all of

its obligations under the Account Ownership Agreement except where failure to

fulfill such obligations would not have a material adverse effect on the

holders of the Notes or Certificates.

 

(f)            As of the Closing

Date, (i) the sale of the Notes and Certificates by the Seller pursuant to this

Agreement, the compliance by each of the Seller and Providian with all of the

provisions of the other Transaction Documents to which it is a party and any

other agreement or document entered into by the Seller and Providian in

connection therewith, and the consummation of the transactions herein and

therein contemplated, will not conflict with or result in a breach of any of

the terms or provisions of, or constitute a default under, any indenture,

mortgage, deed of trust, loan agreement or other agreement or instrument to

which the Seller or Providian is a party or by which the Seller or Providian is

bound or to which any of the property or assets of the Seller or Providian is subject

except where such conflict, breach or default will not have a material adverse

effect on the holders of the Notes or Certificates, nor will such action result

in any violation of the provisions of the organizational documents of the

Seller or Providian or any statute or any order, rule or regulation of any

court or governmental agency or body having jurisdiction over the Seller or

Providian or any of its properties except where such violation will not have a

material adverse effect on the holders of the Notes or Certificates; and (ii)

no consent, approval, authorization, order, registration, filing or

qualification of or with any such court or governmental agency or body is

required for the issue and sale of the Notes or Certificates by the Seller pursuant

to this Agreement or the consummation by the Seller or Providian of the other

transactions contemplated by the Transaction Documents to which the Seller or

Providian is a party and any other agreement or document entered into by the

Seller or Providian in connection therewith, except as have been obtained and

except where failure to obtain such consent, approval, authorization, order,

registration, filing or qualification would not have a material adverse effect

on the holders of the Notes or Certificates.

 

(g)           Other than as set

forth in the Offering Circular, as of the date thereof and as of the Closing

Date, there are no legal or governmental proceedings pending to which the

Seller or Providian or any of their subsidiaries, if any, is a party or to which

any property of the Seller or Providian or any of their respective

subsidiaries, if any, is the subject which could reasonably be expected,

individually or in the aggregate, to have a material adverse effect on the

current or future financial position, equity or results of operations of the

Seller and its subsidiaries, if any, taken as a whole, or Providian and its

subsidiaries, taken as a whole; and, to the best of  the Seller’s and Providian’s knowledge, no such proceedings are

threatened or contemplated by governmental authorities or threatened by others;

except in the case of any such pending,

 

3

 

threatened or

contemplated proceedings where such proceedings would not have a material

adverse effect on the holders of the Notes or Certificates.

 

(h)           Providian will, as

of the Closing Date, own the Receivables to be transferred by Providian to the

Seller on such date pursuant to the Receivables Purchase Agreement, free and

clear of any lien, mortgage, pledge, charge, security interest or other

encumbrance other than liens and other encumbrances permitted under the

Transaction Documents and other than liens and other encumbrances that would

not have a material adverse effect on the holders of the Notes or Certificates,

and, as of the Closing Date and as of the date such Receivables are transferred

to the Seller, Providian will have full power and authority to sell and deliver

such Receivables to be sold to the Seller on such date under the Receivables

Purchase Agreement and as of the Closing Date will have duly authorized such

assignment and delivery to the Seller by all necessary action, in each case

except where failure to have such power and authorization would not have a

material adverse effect on the holders of the Notes and Certificates.

 

(i)            As of the Closing

Date, the Seller will have full power and authority to sell and deliver the

Receivables to the Trust under the Transfer and Servicing Agreement as of such

date and as of the Closing Date will have duly authorized such assignment and

delivery to the Trust by all necessary action, in each case except where

failure to have such power and authorization would not have a material adverse

effect on the holders of the Notes or Certificates.

 

(j)            Any taxes, fees and

other governmental charges due and payable by Providian or the Seller in

connection with the execution, delivery and performance of the Transaction

Documents to which Providian or the Seller is a party will have been paid at or

prior to the Closing Date, as applicable, in each case except where failure to

pay such taxes, fees or other charges would not have a material adverse effect

on the holders of the Notes or Certificates.

 

(k)           As of the Closing

Date the Receivables assigned by Providian to the Seller and by the Seller to

the Trust will have been duly and validly assigned and delivered by Providian

to the Seller and by the Seller to the Trust, in each case except where failure

to assign and deliver such Receivables would not have a material adverse effect

on the holders of the Notes or Certificates.

 

(l)            The Seller is not,

or after giving effect to the offering and sale of the Notes to the Class B

Purchasers under this Agreement, or the offering and sale of the Certificates

to the O/C Purchaser under this Agreement, or the issuance of the Series 2002-1

Notes by the Trust will not be, an “investment company,” as such term is

defined in the Investment Company Act of 1940, as amended.

 

4

 

ARTICLE II

TRANSFER OF

THE NOTES AND CERTIFICATES

 

Section 2.1             Transfer

of the Notes and Certificates.    On the terms and subject to the conditions

set forth in this Agreement, and in reliance upon the covenants,

representations, warranties and agreements herein set forth, on the Closing

Date, the Seller agrees to transfer and deliver to the Class B Purchasers the

Notes, and the Class B Purchasers agree to accept, the Notes in the form

attached as an exhibit to the Series 2002-1 Indenture Supplement, and to pay

the purchase price therefor set out on Schedule 1 hereto, and the Seller

agrees to transfer and deliver to the O/C Purchaser the Certificates, and the

O/C Purchaser agrees to accept, the Certificates in the form attached as an

exhibit to the Series 2002-1 Indenture Supplement, and to pay the purchase

price therefor set out on Schedule 1 attached hereto.

 

Section 2.2             Delivery

of the Notes, Certificates and Documents.

 

(a)           The Seller will

deliver the Notes and Certificates to be sold by the Seller to the Class B Purchasers

and to the O/C Purchaser, respectively, on the Closing Date. The time and date

of such delivery and payment shall be 10:00 a.m., New York City time, on the

Closing Date or such other time and date as the Purchasers and the Seller may

agree upon in writing.

 

(b)           The documents to be

delivered on the Closing Date by or on behalf of the parties hereto pursuant to

Section 3.1 hereof will be delivered at the offices of Orrick, Herrington &

Sutcliffe LLP, 666 Fifth Avenue, New York, NY 10103, 10:00 a.m., New York City

time, on June 25, 2002, or such other time, place and date as each of the

parties hereto may agree upon in writing.

 

ARTICLE III

CONDITIONS

PRECEDENT

 

Section

3.1     Conditions Precedent to the Purchase of the

Notes and Certificates.  The obligations of the Class B Purchasers to

acquire the Notes and of the O/C Purchaser to acquire the Certificate on the

Closing Date shall be subject, in the discretion of each Purchaser, to the

condition that all representations and warranties and other statements of each

of the Seller and Providian herein are, at and as of the Closing Date, true and

correct, and to the following additional conditions:

 

(a)           Each Transaction

Document and all of the other agreements identified or otherwise contemplated

by the Offering Circular and such Transaction Documents shall have been duly

entered into by all of the respective parties;

 

(b)           The conditions to

closing set forth in Section 6.1 of the Sale and Purchase Agreement shall have

been satisfied on or prior to the Closing Date and the transactions set forth

in Section 2.1 of the Sale and Purchase Agreement shall have been consummated

on or prior to the Closing Date;

 

5

 

(c)           Orrick, Herrington

& Sutcliffe LLP shall have furnished to each Purchaser its written

opinions, dated the Closing Date, in form and substance satisfactory to each

Purchaser and counsel for such Purchaser;

 

(d)           Richards, Layton

& Finger, special Delaware counsel to the Seller, shall have furnished to

each Purchaser its written opinions, dated the Closing Date, in form and

substance satisfactory to each Purchaser and counsel for such Purchaser;

 

(e)           Cravath, Swaine

& Moore, special New York counsel to the Seller and Providian, shall have

furnished to each Purchaser its written opinions, dated the Closing Date, on

FIRREA, non-consolidation, security interest and corporate matters and other

related matters, in form and substance satisfactory to each Purchaser and

counsel for such Purchaser;

 

(f)            Wachtell, Lipton,

Rosen & Katz LLP, special New York counsel to the Seller and Providian,

shall have furnished to each Purchaser its written opinion to be delivered to

each Purchaser pursuant to Section 6.1(k) of the Sale and Purchase Agreement,

in form and substance satisfactory to each Purchaser and counsel for such

Purchaser;

 

(g)           Gallagher, Callahan

and Gartrell, P.A., special New Hampshire counsel to the Seller and Providian,

shall have furnished to each Purchaser its written opinion, dated the Closing

Date, on matters governed by New Hampshire law, in form and substance

satisfactory to each Purchaser and counsel for such Purchaser;

 

(h)           The in-house counsel

to Providian (who may be the General Counsel or an Associate General Counsel of

Providian) shall have furnished to each Purchaser his or her written opinion,

dated the Closing Date, on matters relating to Providian in form and substance

satisfactory to each Purchaser and counsel for such Purchaser;

 

(i)            Orrick, Herrington

& Sutcliffe LLP, special New York counsel to each of the Purchasers, shall

have furnished to each Purchaser its written opinion, dated the Closing Date,

on the Offering Circular in form and substance satisfactory to such Purchaser;

 

(j)             In-house counsel

to CompuCredit Corporation, a Georgia corporation, shall have furnished to each

Purchaser its written opinion, dated the Closing Date, in form and substance

satisfactory to each Purchaser and counsel for such Purchaser;

 

(k)           Thacher Proffitt

& Wood LLP, counsel for the Indenture Trustee and Note Administrator, shall

have furnished to each Purchaser its written opinion, dated the Closing Date,

in form and substance satisfactory to each Purchaser and counsel for such

Purchaser;

 

6

 

(l)            Richards, Layton

& Finger, counsel for the Owner Trustee, shall have furnished to each

Purchaser its written opinion, dated the Closing Date, in form and substance

satisfactory to each Purchaser and counsel for such Purchaser;

 

(m)          Ernst & Young

LLP, as independent accountants of Providian, shall have furnished to each

Purchaser a letter or letters, dated on the date hereof, and a letter or

letters, dated the Closing Date, respectively, containing statements and

information of the type customarily included in accountants’ “agreed upon

procedures letters” with respect to certain financial information provided by

Providian contained in the Offering Circular;

 

(n)           Each of the Seller

and Providian shall have furnished or caused to be furnished to each Purchaser

on the Closing Date certificates of its officers satisfactory to each Purchaser

as to the accuracy in all material respects of its representations and

warranties herein at and as of the Closing Date, as to the performance in all

material respects of all of its obligations hereunder to be performed at or

prior to the Closing Date, as to the matters set forth in Sections 3.1(a) in

respect of the Seller or Providian, as applicable, and as to such other matters

as each Purchaser may reasonably request;

 

(o)           All conditions

precedent in the Certificate Purchase Agreement shall have been satisfied; and

 

(p)           All opinions,

certificates and other documents incident to, and all proceedings in connection

with the transactions contemplated by, this Agreement and each of the other

Transaction Documents shall be satisfactory in form and substance to each

Purchaser and its counsel, and each Purchaser and its counsel shall have

received copies of such opinions, certificates and other documents as they may

reasonably request.

 

The delivery of this Agreement on the Closing

Date shall be deemed to be an acknowledgment by each Purchaser and its counsel

that the form and substance of any written opinions required under this Section

3.1 are satisfactory.

 

ARTICLE IV

INDEMNIFICATION

 

Providian shall indemnify and hold harmless

each Purchaser and its respective members, officers, directors, employees,

agents and representatives, against any and all losses, claims, damages,

liabilities or expenses (including reasonable legal and accounting fees) (collectively,

“Losses”), as incurred (payable promptly upon written request), for or

on account of or arising from or in connection with or otherwise with respect

to any breach of any representation, warranty or covenant in this Agreement or

in any certificate delivered pursuant hereto of Providian or, as long as

Providian is the Accounts Owner, of the Transferor.

 

7

 

ARTICLE V

MISCELLANEOUS

 

Section 5.1             Waivers;

Remedies. 

No failure or delay on the part of any Purchaser in exercising any

power, right or remedy under this Agreement shall operate as a waiver thereof,

nor shall any single or partial exercise of any such power, right or remedy

preclude any other further exercise thereof or the exercise of any other power,

right or remedy.  The rights and

remedies herein provided shall be cumulative and nonexclusive of any rights or

remedies provided by law.

 

Section 5.2             Amendments,

Waivers and Consents.  No amendment to or waiver of any provision of this Agreement, nor

any consent to departure by Seller or any Purchaser therefrom, shall be

effective unless the same shall be in writing and signed by the parties hereto.

 

Section 5.3             Notices, Etc.  Except where instructions or notices are

authorized herein to be given by telephone, all notices, demands, instructions

and other communications required or permitted to be given to or made upon any

party hereto shall be in writing and shall be sent by mail, overnight delivery

service, facsimile transmission (with a printed or telephone confirmation of

the receipt thereof) or email (with a telephone confirmation of the receipt

thereof) and shall be deemed to be given for purposes of this Agreement upon

receipt.  Unless otherwise specified in

a notice sent or delivered in accordance with the foregoing provisions of this

Section 5.3, notices, demands, instructions and other communications in writing

shall be given to or made upon the respective parties hereto at their

respective addresses or facsimile numbers indicated on the attached Annex A.

 

Section 5.4             Governing Law; Submission to

Jurisdiction. 

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN

ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.  THE PARTIES HERETO EACH HEREBY SUBMITS TO THE

NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN

DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN THE CITY OF NEW

YORK FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS

AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 5.5             Severability.  Any provisions of this Agreement which are

prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,

be ineffective to the extent of such prohibition or unenforceability without

invalidating the remaining provisions hereof, and any such prohibition or

unenforceability in any jurisdiction shall not invalidate or render

unenforceable such provision in any other jurisdiction.

 

Section 5.6             Counterparts.  This Agreement may be executed in any number

of counterparts, each of which so executed shall be deemed to be an original,

but all of such counterparts shall together constitute but one and the same

instrument.

 

Section 5.7             Nonpetition Covenant.  Notwithstanding

any prior termination of this Agreement, each Purchaser agrees that it will

not, prior to the date which is one year and one day after the day upon which

the Securities and the Notes have

 

8

 

been paid in full, acquiesce,

petition or otherwise invoke or cause the Seller or the Trust to invoke the

process of any Governmental Authority for the purpose of commencing or

sustaining a case against the Seller or the Trust under any Federal or state

bankruptcy, insolvency or similar law or appointing a receiver, conservator,

liquidator, assignee, trustee, custodian, sequestrator or other similar

official of the Seller or the Trust or any substantial part of its property or

ordering the winding-up or liquidation of the affairs of the Seller or the Trust.

 

Section 5.8             Successors and Assigns.  This

Agreement shall be binding on the parties hereto and their respective

successors and permitted assigns; provided, however, that no

party hereto may assign any of its rights or delegate any of its duties hereunder

without the prior written consent of each other party hereto.

 

Section 5.9             No

Recourse. 

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 Providian, the Seller or any Purchaser as contained in this

Agreement or any other agreement, instrument or document entered into by it

pursuant hereto or in connection herewith shall be had against any

administrator of any of them or any incorporator, affiliate, stockholder,

officer, employee, member, manager or director of any of them 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 that the agreements

of each of Providian, the Seller and the Purchasers contained in this Agreement

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 or limited liability company obligations of any such entity; and that

no personal liability whatsoever shall attach to or be incurred by any

administrator of Providian, the Seller or any Purchaser or any incorporator,

stockholder, affiliate, officer, employee, member, manager or director of

Providian, Seller or any Purchaser or of any such administrator, as such, or

any of them, under or by reason of any of the obligations, covenants or

agreements of Providian, Seller or any Purchaser, contained in this Agreement

or in any other such instrument, document or agreement, or which are implied

therefrom, and that any and all personal liability of every such administrator

of such Providian, Seller or Purchaser and each incorporator, stockholder,

affiliate, officer, employee, member, manager or director of Providian, Seller

or Purchaser or of any such administrator, or any of them, for breaches by

Providian, Seller or Purchaser of any such obligations, covenants or

agreements, which liability may arise either at common law or in equity, by

statute or constitution, or otherwise, is hereby expressly waived as a

condition of, and in consideration for, the execution of this Agreement.

 

(b)           The provisions of

this Section 5.9 shall survive the termination of this Agreement.

 

The obligations of the Seller arising under

this Agreement shall be payable solely from amounts available therefor in

accordance with the Series 2002-1 Indenture Supplement and amounts otherwise

released by the Trust to the Transferor as holder of the Transferor Amount or

any other interest in the Trust.

 

9

 

Section 5.10           Further

Assurances.

 

(a)           Each of Providian

and the Seller agrees to do such further acts and things and to execute and

deliver to each Purchaser and Servicer such additional assignments, agreements,

powers and instruments as are reasonably required by such party to carry into

effect the purposes of this Agreement or to better assure and confirm unto such

party its rights, powers and remedies hereunder.

 

(b)           Each Purchaser each

agrees to do such further acts and things and to execute and deliver to

Providian and the Seller such additional assignments, agreements, powers and

instruments as are reasonably required by such party to carry into effect the

purposes of this Agreement or to better assure and confirm unto such party its

rights, powers and remedies hereunder.

 

10

 

IN WITNESS WHEREOF, the parties hereto have

executed and delivered this Series 2002-1 Class B Notes and Series 2002-1 O/C

Certificates Purchase Agreement as of the date first written above.

 

	

   

  	

  PACCT, LLC,

  as Seller

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  Name:

  
	

   

  	

   

  	

  Title:

  
	

   

  	

   

  	

   

  
	

   

  	

  PROVIDIAN NATIONAL BANK

  in its individual capacity and as Accounts

  Owner

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  Name:

  
	

   

  	

   

  	

  Title:

  

 

11

 

	

   

  	

   

  	

   

  
	

   

  	

  CSG, LLC

  as Class B Purchaser

  
	

   

  	

   

  	

   

  
	

   

  	

  On behalf of MTGLQ Investors, L.P.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  Name:

  
	

   

  	

   

  	

  Title:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  On behalf of SB Funding Corp.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  Name:

  
	

   

  	

   

  	

  Title:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  On behalf of CompuCredit

  Acquisition Corporation

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

  Name:

  
	

   

  	

   

  	

  Title:

  
				

 

12

 

	

   

  	

  CSG FUNDING, LLC

  as O/C Purchaser

  
	

   

  	

   

  	

   

  
	

   

  	

  By CSG, LLC, the sole Member

  
	

   

  	

   

  	

   

  
	

   

  	

  COMPUCREDIT ACQUISITION

  CORPORATION

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  	

   

  
	

   

  	

  MTGLQ INVESTORS, L.P.

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  SB FUNDING CORP.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  

 

13

Schedule 1

 

	

  Name

  	

   

  	

  Type of

  Security

  	

   

  	

  Face/Invested

  Amount

  	

   

  	

  Purchase

  Price

  	

   

  
	

  CSG, LLC

  	

   

  	

  Class B Note

  	

   

  	

  $

  	

  45,532,290

  	

   

  	

  $

  	

  45,532,290

  	

   

  
	

  CSG Funding, LLC

  	

   

  	

  O/C Certificate

  	

   

  	

  $

  	

  46,770,753

  	

   

  	

  $

  	

  46,770,753

  	

   

  

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]