Document:

Unassociated Document

 Exhibit 4.1 

 

 Incapital Trust Products II Trust ___ 

 

 Trust Agreement 

 

 Among 

 

 Incapital Trust Products II LLC 

 

 as Depositor, 

 

 U.S. Bank National Association, 

 

 as Trustee and Securities Intermediary, 

 

 U.S. Bank Trust National Association, 

 

 as Delaware Trustee 

 

 and 

 

 Incapital Holdings LLC 

 

 as Administrative Agent 

 

 

 

 Dated as of ___________, ____, 201_ 

 

 

 Pass-Through Certificates 

 

  

  

  

 

 CROSS-REFERENCE TABLE 

 

	
 Section of 

	
 Section of 

	
 Trust Indenture Act of 1939, as amended 

	
 Trust Agreement 

	
 310(a)(1), (2) 

	
 8.06(a) 

	
 310(a)(3) 

	
 8.10 

	
 310(a)(4) 

	
 8.02(c) 

	
 310(a)(5) 

	
 8.06(a) 

	
 310(b) 

	
 8.06, 8.07 

	
 310(c) 

	
 Not Applicable 

	
 311(a) 

	
 6.07 

	
 311(b) 

	
 6.07 

	
 311(c) 

	
 Not Applicable 

	
 312(a) 

	
 4.04(a) 

	
 312(b) 

	
 4.04(b) 

	
 312(c) 

	
 4.04(c) 

	
 313(a) 

	
 4.02(d) 

	
 313(b) 

	
 4.02(d) 

	
 313(c) 

	
 4.02(d), 6.06(c) 

	
 313(d) 

	
 4.02(d) 

	
 314(a) 

	
 6.06(a), 6.06(b) 

	
 314(b) 

	
 Not Applicable 

	
 314(c)(1) 

	
 8.02(b) 

	
 314(c)(2) 

	
 8.02(b) 

	
 314(c)(3) 

	
 8.02(b) 

	
 314(d) 

	
 Not Applicable 

	
 314(e) 

	
 8.02(b) 

	
 315(a) 

	
 8.01(c) 

	
 315(b) 

	
 4.02(e) 

	
 315(c) 

	
 Not Applicable 

	
 315(d) 

	
 8.01(c) 

	
 316(a)(1) 

	
 7.02 

	
 316(a)(2) 

	
 Not Applicable 

	
 316(b) 

	
 4.01, 10.02 

	
 316(c) 

	
 5.06 

	
 317(a) 

	
 3.08 

	
 317(b) 

	
 5.09 

	
 318(a) 

	
 10.01 

 

  

 i 

  

 

 TABLE OF CONTENTS 

 

	
 ARTICLE I 

	
 DEFINITIONS; CONSTRUCTION 

	
 1 

	
 Section 1.01 

	
 Definitions 

	
 1 

	
 Section 1.02 

	
 Rules of Construction 

	
 9 

	
 Section 1.03 

	
 Article and Section References 

	
 10 

	
 ARTICLE II 

	
 ESTABLISHMENT OF TRUST; ISSUANCE OF CERTIFICATES 

	
 10 

	
 Section 2.01 

	
 Name 

	
 10 

	
 Section 2.02 

	
 Office 

	
 10 

	
 Section 2.03 

	
 Purposes and Powers 

	
 10 

	
 Section 2.04 

	
 Creation and Declaration of Trust; Assignment of Underlying  

 CDs 

	
 10 

	
 Section 2.05 

	
 Entry into Agency Agreement 

	
 11 

	
 Section 2.06 

	
 Acceptance by Trustee 

	
 11 

	
 Section 2.07 

	
 Agreement to Execute, Authenticate and Deliver Certificates 

	
 11 

	
 ARTICLE III 

	
 TRUST POWERS; ADMINISTRATION OF THE TRUST  

 PROPERTY 

	
 11 

	
 Section 3.01 

	
 Trust Property 

	
 11 

	
 Section 3.02 

	
 Administration of the Trust 

	
 12 

	
 Section 3.03 

	
 Collection of Certain Underlying CD Payments 

	
 13 

	
 Section 3.04 

	
 Sale 

	
 13 

	
 Section 3.05 

	
 Certificate Account 

	
 13 

	
 Section 3.06 

	
 Investment of Funds in the Accounts 

	
 16 

	
 Section 3.07 

	
 Access to Certain Documentation 

	
 16 

	
 Section 3.08 

	
 Removal of Underlying CDs Upon a Removal Event 

	
 16 

	
 Section 3.09 

	
 Removal of Underlying CDs Upon Wind-up Event 

	
 17 

	
 Section 3.10 

	
 Sale Procedures Following a Removal Event or a Wind-up  

 Event 

	
 17 

	
 Section 3.11 

	
 Administrative Agent Provisions 

	
 18 

	
 Section 3.12 

	
 Indemnification of Administrative Agent 

	
 20 

	
 ARTICLE IV 

	
 DISTRIBUTIONS AND REPORTS TO CERTIFICATEHOLDERS 

	
 21 

	
 Section 4.01 

	
 Distributions 

	
 21 

	
 Section 4.02 

	
 Reports to Certificateholders; Notices 

	
 21 

 

  

 ii 

  

 

	
 Section 4.03 

	
 Compliance with Tax Reporting and Withholding  

 Requirements 

	
 23 

	
 Section 4.04 

	
 Preservation of Information, Communications to  

 Certificateholders 

	
 24 

	
 Section 4.05 

	
 Exchange Act Reports 

	
 24 

	
 ARTICLE V 

	
 THE CERTIFICATES 

	
 24 

	
 Section 5.01 

	
 The Certificates 

	
 24 

	
 Section 5.02 

	
 Execution, Authentication and Delivery 

	
 25 

	
 Section 5.03 

	
 Registration; Registration of Transfer and Exchange 

	
 26 

	
 Section 5.04 

	
 Mutilated, Destroyed, Lost and Stolen Certificates 

	
 27 

	
 Section 5.05 

	
 Distributions in Respect of Certificates 

	
 28 

	
 Section 5.06 

	
 Persons Deemed Owners 

	
 28 

	
 Section 5.07 

	
 Cancellation 

	
 28 

	
 Section 5.08 

	
 Currency of Distributions in Respect of Certificates 

	
 29 

	
 Section 5.09 

	
 Appointment of Paying Agent 

	
 29 

	
 Section 5.10 

	
 Authenticating Agent 

	
 29 

	
 Section 5.11 

	
 Issuance Matters 

	
 30 

	
 ARTICLE VI 

	
 THE DEPOSITOR 

	
 31 

	
 Section 6.01 

	
 Representations and Warranties of the Depositor 

	
 31 

	
 Section 6.02 

	
 Breach of Representation or Warranty 

	
 33 

	
 Section 6.03 

	
 Liability of the Depositor 

	
 33 

	
 Section 6.04 

	
 Limitation on Liability of the Depositor 

	
 33 

	
 Section 6.05 

	
 Depositor May Purchase Certificates 

	
 34 

	
 Section 6.06 

	
 Preparation and Filing of Exchange Act Reports; Obligations  

 of the Depositor 

	
 34 

	
 Section 6.07 

	
 Preferential Collection of Claims Against Depositor 

	
 35 

	
 ARTICLE VII 

	
 RIGHTS OF CERTIFICATEHOLDERS 

	
 35 

	
 Section 7.01 

	
 Voting Rights with Respect to Underlying CDs 

	
 35 

	
 Section 7.02 

	
 Direction of Remedies 

	
 36 

	
 Section 7.03 

	
 Meetings of Certificateholders 

	
 36 

	
 ARTICLE VIII 

	
 CONCERNING THE TRUSTEE AND THE DELAWARE TRUSTEE 

	
 36 

	
 Section 8.01 

	
 Duties of Trustee 

	
 36 

	
 Section 8.02 

	
 Certain Matters Affecting the Trustee 

	
 37 

  

 iii 

  

 

	
 Section 8.03 

	
 Limitation on Liability of Trustee 

	
 40 

	
 Section 8.04 

	
 Trustee May Own Certificates 

	
 40 

	
 Section 8.05 

	
 Trustee Fees and Expenses; Limited Indemnification; Reserve  

 Account 

	
 40 

	
 Section 8.06 

	
 Eligibility Requirements for Trustee 

	
 41 

	
 Section 8.07 

	
 Resignation or Removal of the Trustee and the Delaware  

 Trustee 

	
 42 

	
 Section 8.08 

	
 Successor Trustee and Successor Delaware Trustee 

	
 42 

	
 Section 8.09 

	
 Merger or Consolidation of Trustee 

	
 43 

	
 Section 8.10 

	
 Appointment of Co-Trustee 

	
 43 

	
 Section 8.11 

	
 Presentment and Surrender at Corporate Trust Office 

	
 44 

	
 Section 8.12 

	
 Representations and Warranties of Trustee 

	
 44 

	
 Section 8.13 

	
 Limitation of Powers and Duties 

	
 45 

	
 Section 8.14 

	
 Delaware Trustee 

	
 45 

	
 Section 8.15 

	
 Qualifications of Delaware Trustee 

	
 46 

	
 Section 8.16 

	
 Representations and Warranties of Delaware Trustee 

	
 46 

	
 Section 8.17 

	
 Certain Qualifications of Delaware Trustee Generally 

	
 46 

	
 ARTICLE IX 

	
 TERMINATION 

	
 47 

	
 Section 9.01 

	
 Termination of the Trust 

	
 47 

	
 ARTICLE X 

	
 MISCELLANEOUS TERMS 

	
 47 

	
 Section 10.01 

	
 Trust Indenture Act; Conflict with Trust Indenture Act 

	
 47 

	
 Section 10.02 

	
 Amendment of this Agreement 

	
 48 

	
 Section 10.03 

	
 Counterparts 

	
 49 

	
 Section 10.04 

	
 Limitation on Rights of Certificateholders 

	
 49 

	
 Section 10.05 

	
 Governing Law; Non-exclusive Submission to Jurisdiction;  

 Waiver of Jury Trial 

	
 49 

	
 Section 10.06 

	
 Notices 

	
 50 

	
 Section 10.07 

	
 Severability of Terms 

	
 50 

	
 Section 10.08 

	
 Notice to Rating Agencies 

	
 50 

	
 Section 10.09 

	
 No Recourse 

	
 51 

	
 Section 10.10 

	
 No Petition Covenant 

	
 51 

	
 Section 10.11 

	
 Intention of Parties 

	
 51 

	
 Section 10.12 

	
 Force Majeure 

	
 52 

  

 iv 

  

 

 TRUST AGREEMENT 

 

 This Trust Agreement (this “Agreement”), dated as of _______, 2015, by and among U.S. Bank National Association, as Trustee and Securities Intermediary (the “Trustee”), U.S. Bank Trust National Association, as Delaware trustee, Incapital Trust Products II LLC, a Delaware limited liability company, as Depositor (the “Depositor”), and Incapital Holdings LLC, a Delaware limited liability company, as Administrative Agent (the “Administrative Agent”), relates to the issuance of CD Pass-Through Certificates (the “Certificates”) of  Incapital Trust Products II Trust _________ (the “Trust”). 

 

 PRELIMINARY STATEMENT 

 

 The Depositor, the Trustee and the Administrative Agent have duly authorized the execution and delivery of this Agreement to provide for the issuance of the Certificates. 

 

 All representations, covenants and agreements made herein by each of the Depositor, the Trustee and the Administrative Agent are for the benefit and security of the Certificateholders. 

 

 The Depositor is entering into this Agreement, and the Trustee is accepting the trust created hereby, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged. 

 

 

 ARTICLE I 

 DEFINITIONS; CONSTRUCTION 

 

 Section 1.01                           Definitions.  Except as otherwise specified herein or as the context may otherwise require, the following terms have the respective meanings set forth below for all purposes of this Agreement: 

 

 “Account”: As defined in Section 3.06. 

 

 “Act”: As defined in Section 2.04. 

 

 “Administrative Agent”: An entity that has agreed to perform, on behalf of the Certificateholders, the services specified in Sections 3.08, 3.09, 3.10 and 3.12, which Administrative Agent initially shall be Incapital Holdings LLC. 

 

 “Administrative Agent Agreement”:  Agreement between the Administrative Agent and the Trust, dated as of ___________, ____, 201_. 

 

 “Administrative Agent Fee”: As defined in Section 3.10. 

 

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

 

  

 1 

  

 

 “Agency Agreement”: The agency agreement among the Certificates Agent[s] and the Depositor, dated as of ___________, ____, 201_ relating to the offer and sale of the Certificates. 

 

 “Authenticating Agent”: As defined in Section 5.10. 

 

 “Available Expense Amount”: An amount equal to the product of (1) the aggregate Certificate Principal Balance of all Certificates Outstanding on the Business Day immediately preceding the applicable Regular Distribution Date and (2) __%, which amount shall be deducted first from interest payments and then from principal payments, if any, received by the Trustee on the Underlying CDs. 

 

 “Available Funds”: With respect to any Regular Distribution Date, (1) all amounts received by the Trustee on or with respect to the Underlying CDs or other Trust Property from but excluding the Determination Date related to the immediately preceding Regular Distribution Date (or, in the case of the initial Regular Distribution Date, the Closing Date) to and including the Determination Date related to such Regular Distribution Date, plus (2) all investment income from Eligible Investments, paid during the period in clause (1) above, in each case on deposit in the Certificate Account and available for distribution on such Regular Distribution Date, minus any amounts received by the Trustee during the period in clause (1) above and previously distributed on a Special Distribution Date. 

 

 “Business Day”: Any day, other than a Saturday, Sunday or other day on which commercial banks are obligated or authorized by law, executive order or regulation to be closed in The City of New York or in Boston, Massachusetts. 

 

 “Certificate” or “Certificates”: Any of the certificates, defined as Certificates in the preamble hereto, that are executed, authenticated and delivered under this Agreement, including Global Certificates and Certificated Certificates. 

 

 “CD”: A certificate of deposit of a national association bank organized under the laws of the United States. 

 

 “Certificate Account”: An Eligible Account established in accordance with Section 3.05. 

 

 “Certificate Principal Balance”: With respect to a Certificate that is Outstanding, as determined at any time, the maximum amount that the Holder thereof is entitled to receive as distributions allocable to payments of principal of the Underlying CDs (without taking into account any premium payable in connection with the optional redemption of the Underlying CDs). 

 

 “Certificate Register” and “Certificate Registrar”: As respectively defined in Section 5.03. 

 

 “Certificated Certificate”: Any Certificate in definitive, physical form registered in the name of a Person other than the Depositary or its nominee. 

 

  

 2 

  

 

 “Certificateholder” and “Holder”: The Person in whose name a Certificate is registered as designated in the Certificate Register as of any relevant date. 

 

 “Certificates Agent[s]”: __________, __________ and ____________ in [its][their] capacity as agents for the Depositor in soliciting offers to purchase the Certificates. 

 

 “Closing Date”: The date on which the Certificates are initially executed, authenticated and delivered under this Agreement. 

 

 “Code”: The U.S. Internal Revenue Code of 1986, as amended, and Treasury Regulations promulgated thereunder. 

 

 “Collection Period”: The Initial Collection Period and, with respect to any Regular Distribution Date, the period from but excluding the Determination Date related to the immediately preceding Regular Distribution Date to but including the Determination Date related to such Regular Distribution Date. 

 

 “Commission”: The U.S. Securities and Exchange Commission or any successor agency thereto. 

 

 “Concentration Event”:  Such time as of which the assets of the Trust are comprised of the underlying debt securities, the aggregate principal amount of which are less than 30% of the original aggregate principal amount or such percentage specified in the applicable prospectus supplement for the Trust. 

 

 “Corporate Trust Office”: The Trustee's offices at 1 Federal Street, 3rd Floor, Boston, MA 02110, Attention: Maryellen Hunter, or such other addresses as the Trustee may designate from time to time by written notice to the Certificateholders and the Depositor. 

 

 “Delaware Trustee”: U.S. Bank Trust National Association initially or such other Person as appointed by the Depositor. 

 

 “Depositary”: DTC initially, or such other depositary appointed by the Depositor. 

 

 “Depositor”: Incapital Trust Products II LLC, a Delaware limited liability company, and any of its successors or assigns. 

 

 “Depositor Order” or “Depositor Requests”: A written order or request, respectively, signed in the name of the Depositor by any of its Executive Officers and delivered to the Trustee. 

 

 “Determination Date”: The second Business Day immediately preceding a Distribution Date. 

 

 “Distribution Date”: Each Regular Distribution Date and Special Distribution Date. 

 

 “Dollar” or “$” or “USD”: Such currency of the United States as at the time of payment is legal tender for the payment of public and private debts. 

 

  

 3 

  

 

 “DTC”: The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York, and any of its successors or assigns. 

 

 “Eligible Account”: A non-interest bearing account held in the name of the Trustee in trust for the benefit of the Certificateholders that is either (1) a segregated account or segregated accounts maintained with a federal or State chartered depository institution or trust company the short-term and long-term unsecured debt obligations of which (or, in the case of a depository institution or trust company that is the principal subsidiary of a holding company, the short-term and long-term unsecured debt obligations of such holding company) are rated P-1 and Aa by Moody's, A-1+ and AA by S&P, and, if rated by Fitch, F1+ and AA by Fitch at the time any amounts are held on deposit therein, including when such amounts are initially deposited and all times subsequent or (2) a segregated trust account or segregated trust accounts held by the Trustee in its Corporate Trust Office in trust for the benefit of the Certificateholders. 

 

 “Eligible Investments”: One or more of the following investments made by the Trustee pursuant to Section 3.06: 

 

	
    

	
 (1) 

	
 direct obligations of, and obligations fully guaranteed by, the United States, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Federal Farm Credit System or any agency or instrumentality of the United States the obligations of which are explicitly backed by the full faith and credit of the United States of America; provided that obligations of, or guaranteed by, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Federal Farm Credit System shall be Eligible Investments only if, at the time, and during the course, of investment, it has the rating specified in the Prospectus Supplement for such series; 

 

	
    

	
 (2) 

	
 demand and time deposits in, certificates of deposit of, or bankers' acceptances issued by any depository institution or trust company incorporated under the laws of the United States or any State and subject to supervision and examination by federal and/or State banking authorities so long as the commercial paper and/or the short-term debt obligations of such depositary institution or trust company (including the Trustee or any agent of the Trustee acting in their respective commercial capacities) at the time of, and during the course of, such investment or contractual commitment providing for such investment have at least the credit rating of P-1 or Aa by Moody's, A-1+ or AA by S&P, and, if rated by Fitch, F1+ or AA by Fitch (or, in the case of a depository institution which is the principal subsidiary of a holding company, the commercial paper or other short-term debt obligations of such holding company have a credit rating of P-1 or Aa by Moody's, A-1+ or AA by S&P, and, if rated by Fitch, F1+ or AA by Fitch); 

 

	
    

	
 (3) 

	
 commercial paper having a maturity of not more than 180 days and having at the time, and during the course, of such investment at least the credit rating of P-1 by Moody's, A-1+ by S&P, and, if rated by Fitch, F1+ by Fitch; and 

 

  

 4 

  

 

	
    

	
 (4) 

	
 repurchase agreements with respect to (a) any security described in clause (1) above or (b) any other security issued or guaranteed by an agency or instrumentality of the United States with an entity having the credit rating of P-1 or Aa by Moody's, A-1+ or AA by S&P, and, if rated by Fitch, F1+ or AA by Fitch (it being understood that copies of any repurchase agreement entered into will be delivered to the Rating Agencies, if any); 

 

	
    

	
 (5) 

	
 shares of money market, mutual or similar funds (a) the investments of which are restricted to the obligations described in clauses (1) through (4) above, and (b) having at least the credit rating of P-1 or Aaa by Moody's, A-1+ or AAA by S&P, and, if rated by Fitch, F1+ or AAA by Fitch; 

 

 provided, however, that the total return specified by the terms of each such obligation or security is at least equal to the purchase price thereof; provided, further, that each such obligation or security must mature at least one Business Day prior to the next required scheduled distribution to Certificateholders of the funds used to invest in such obligation or security; provided, further, that each such obligation or security shall be held in the name of the Trustee in trust for the benefit of Certificateholders; and provided, further, that an Eligible Investment shall not consist of (a) a swap agreement as defined in the United States Bankruptcy Code, 11 U.S.C. Section 101 et seq., (b) an interest-only or principal-only security or (c) a liability of the Trust in excess of the principal amount invested by the Trustee. Eligible Investments shall include, without limitation, those investments meeting the qualifications described above for which the Trustee or an Affiliate of the Trustee provides services. 

 

 “Eligible Issuer”: An issuer of Underlying CDs held as assets of the Trust, as of the initial issue date of the Certificates, that is a national banking association organized under the laws of the United States that has its deposits insured by the Federal Deposit Insurance Corporation, submits call reports to the applicable federal banking agency, and is a bank subsidiary of an Exchange Act reporting company. 

 

 “ERISA”: The U.S. Employee Retirement Income Security Act of 1974, as amended. 

 

 “Exchange Act”: The U.S. Securities Exchange Act of 1934, as amended. 

 

 “Executive Officer”: With respect to any corporation or limited liability company, the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, President, any Vice President, the Treasurer or any Assistant Treasurer, and the Secretary or any Assistant Secretary of such corporation or limited liability company, as the case may be. 

 

 “Extraordinary Trust Expense”: As defined in Section 8.05(b). 

 

 “Final Scheduled Distribution Date”: ________________ 

 

 “Fractional Undivided Interest”: The fractional undivided beneficial ownership interests in the assets of the Trust evidenced by an Outstanding Certificate that is equal to the Certificate Principal Balance of such Certificate divided by the aggregate Certificate Principal Balance of all Outstanding Certificates. 

 

 “FRBNY”: As defined in Section 2.04(b). 

 

  

 5 

  

 

 “Global Certificates”: A Certificate in global form bearing the legend specified in Section 5.11(c) that is deposited with the Depository on behalf of the Trustee and registered in the name of the Depositary or its nominee. 

 

 “Initial Collection Period”: The period from and including the Closing Date to but excluding the Determination Date related to the initial Regular Distribution Date. 

 

 “Initial Underlying CD Accrual Period”: The period from and including the Closing Date to but excluding the initial Underlying CD Interest Payment Date. 

 

 “Investment Company Act”: The U.S. Investment Company Act of 1940, as amended. 

 

 “Investment Company Wind-up Event”: The Trust ceases to be exempt from registration under the Investment Company Act. 

 

 “Moody's”: Moody's Investors Service, Inc. or any successor thereto. 

 

 “Non-Filing Event”: An Underlying Issuer of Underlying CDs that represents 10% or more of the aggregate principal amount of all Underlying CDs is, at any time, not submitting call reports to the appropriate federal banking agency. 

 

 “Officers’ Certificate”: A certificate signed by one or more Executive Officers of the Depositor, as specified in this Agreement, and delivered to the Trustee. 

 

 “Opinion of Counsel”: A written opinion of counsel, who, except as otherwise expressly provided in this Agreement, may be counsel for the Depositor, reasonably acceptable to the Trustee. 

 

 “Outstanding”: As of any date of determination, all Certificates theretofore authenticated and delivered under this Agreement, except: 

 

	
    

	
 (1) 

	
 Certificates theretofore canceled by the Certificate Registrar or delivered to the Trustee for cancellation; and 

 

	
    

	
 (2) 

	
 Certificates in exchange for or in lieu of which other Certificates have been authenticated and delivered pursuant to this Agreement, unless proof satisfactory to the Trustee is presented that any such Certificates are held by a bona fide purchaser in whose hands such Certificates represent beneficial ownership interests in the assets of the Trust; and 

 

	
    

	
 (3) 

	
 Certificates whose Certificate Principal Balance has been reduced to zero in accordance with the terms of this Agreement. 

 

 “Paying Agent”: As defined in Section 5.09. 

 

 “Person”: Any individual, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust (including any beneficiary thereof), unincorporated organization or government or any agency or political subdivision thereof. 

 

  

 6 

  

 

 “Predecessor Certificate”: With respect to any particular Certificate, every previous Certificate evidencing all or a portion of the same undivided beneficial ownership interests as those evidenced by such particular Certificate; and, for the purpose of this definition, any Certificate authenticated and delivered under Section 5.04 in lieu of a lost, destroyed or stolen Certificate shall be deemed to evidence the same undivided beneficial ownership interests as the lost, destroyed or stolen Certificate. 

 

 “Proceeding”: Any suit in equity, action at law or other judicial or administrative action or proceeding. 

 

 “Publicly Offered Securities”: Securities that satisfy the requirements of 29 C.F.R. § 2510.3-101(b)(2). 

 

 “Rating Agencies”: Moody's and S&P. 

 

 “Record Date”: With respect to a distribution of interest to Certificateholders on a Regular Distribution Date other than the Final Scheduled Distribution Date, the fifteenth calendar day (whether or not a Business Day) immediately preceding such Distribution Date; and with respect to a distribution on a Special Distribution Date other than a Special Distribution Date resulting from the optional redemption of Underlying CDs, the calendar day (whether or not a Business Day) immediately preceding the date on which the Trustee received the related payment. 

 

 “Regular Distribution Date”: Except with respect to a Special Distribution Date, the second Business Day after which payments are received by the Trustee in respect of the Underlying CDs or, if that date is not a Business Day, the next succeeding Business Day. 

 

 “Regulation AB”:  Subpart 2009.1100 – Asset Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification and interpretation as have been provided by the Commission in the adopting release (Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (January 7, 2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from time to time. 

 

 “Removal Event”: A Non-Filing Event. 

 

 “Reporting Company”: A Person that is subject to the periodic informational reporting requirements of the Exchange Act. 

 

 “Representative”: As defined in Section 5.12(c). 

 

 “Reserve Account”: An Eligible Account established in accordance with Section 8.05(d). 

 

 “Responsible Officer”: With respect to the Trustee or the Administrative Agent, as the context requires, any Vice President, Assistant Vice President, Assistant Secretary, Assistant Treasurer or any other officer of such entity customarily performing functions similar to those performed by any of the above designated officers, in each case, responsible for the administration of this Agreement, and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer's knowledge of and familiarity with the particular subject. 

 

  

 7 

  

 

 “Securities Act”: The U.S. Securities Act of 1933, as amended. 

 

 “Securities Intermediary”: As defined in Section 3.05(c). 

 

 “Special Distribution Date”: As defined in Section 4.01(c). 

 

 “S&P”: Standard & Poor's Ratings Services, a division of S&P Financial Services LLC or any successor thereto. 

 

 “State”: Any one of the 50 states of the United States or the District of Columbia. 

 

 “Successor Delaware Trustee”: As defined in Section 8.08(c). 

 

 “Tax Wind-up Event”: The Trustee has received an opinion of nationally recognized independent tax counsel experienced in such matters to the effect that there is more than an insubstantial risk that at such time, or within 90 days of the date thereof, the Trust is, or would be, subject to more than an insignificant amount of taxes, duties or other governmental charges. 

 

 “TIA”: The U.S. Trust Indenture Act of 1939, as amended. 

 

 “Transfer”: With respect to the Underlying CDs or other Trust Property, to sell, convey, assign, transfer, create, grant a pledge or other lien upon and a security interest in and right of setoff against, deposit, set over, contribute and confirm to the Trustee pursuant to this Agreement; and the terms “Transferred” and “Transferring” have the meanings correlative to the foregoing. A Transfer of any Underlying CDs or of any other instrument shall include all rights, powers and options (but none of the obligations) of the Transferring party thereunder, including the first priority and continuing right to claim for, collect, receive and give receipt for principal, premium, if any, and interest payments in respect of such Underlying CDs and all other moneys payable thereunder, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the name of the Transferring party or otherwise, and generally to do and receive anything that the Transferring party is or may be entitled to do or receive thereunder or with respect thereto. 

 

 “Trust”:  Incapital Trust Products II Trust __, the trust created by this Agreement. 

 

 “Trust Expenses”: The sum of: (1) Trustee Fees; (2) fees and expenses relating to the formation and organization of the Trust; (3) fees and expenses relating to preparing, filing, printing and delivering prospectuses, reports and other information relating to the Trust under the Securities Act or the Exchange Act (including the fees and disbursements of the Trust's counsel and accountants); (4) any fees charged by the Administrative Agent under the Administrative Agent Agreement, (5) fees paid to any stock exchange upon which the Certificates are listed, (6) fees charged by the Rating Agencies with respect to their ratings of the Certificates and (7) upon dissolution of the Trust, all claims and obligations, including all contingent, conditional or unmatured claims and obligations, known to the Trust, and all claims and obligations which are known to the Trust but for which the identity of the claimant is unknown. 

 

  

 8 

  

 

 “Trust Property”: As defined in Section 3.01. 

 

 “Trustee”: U.S. Bank National Association, or any co-trustee appointed pursuant to Section 8.10, until a successor Person shall have become the Trustee pursuant to the applicable terms of the Trust Agreement, and thereafter “Trustee” shall mean such successor Person. 

 

 “Trustee Fees”: As defined in Section 8.05(a). 

 

 “UCC”: The Uniform Commercial Code as in effect in the relevant jurisdiction. 

 

 “Underlying Issuer”: Each issuer of Underlying CDs. 

 

 “Underlying CD Accrual Period”: The Initial Underlying CD Accrual Period and each period from and including an Underlying CD Interest Payment Date to but excluding the next succeeding Underlying CD Interest Payment Date. 

 

 “Underlying CD Master Certificate”: The master certificate under or pursuant to which a particular Underlying CD is issued by the related Underlying Issuer. 

 

 “Underlying CD Interest Payment Date”: As specified in Schedule I. 

 

 “Underlying CD Interest Rate”: As specified in Schedule I. 

 

 “Underlying CDs”: The Underlying CDs specified on Schedule I, subject to removal from the assets of the Trust upon the occurrence of a Removal Event, a Wind-Up Event, an event specified in Section 3.10 or the optional redemption of Underlying CDs by the related Underlying Issuer. 

 

 “United States”: The United States of America (including the States), its territories, its possessions and other areas subject to its jurisdiction. 

 

 “Wind-up Event”: A Tax Wind-up Event, an Investment Company Wind-up Event and a Concentration Event. 

 

 Certain additional defined terms have the meanings assigned thereto in other terms hereof. 

 

 Section 1.02                           Rules of Construction.  Unless the context otherwise requires: 

 

 (a)           a term has the meaning assigned to it; 

 

 (b)           an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles as in effect in the United States from time to time; 

 

 (c)           “or” is not exclusive; 

 

 (d)           the words “herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision; and 

 

  

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 (e)           “including” means including without limitation; and words in the singular include the plural and words in the plural include the singular. 

 

 Section 1.03                           Article and Section References.  All Article and Section references used in this Agreement, unless otherwise provided, are to articles and sections in this Agreement. Any reference to “this Section” appearing within a particular paragraph of a Section is a reference to such Section as a whole. 

 

 

 ARTICLE II 

 ESTABLISHMENT OF TRUST; ISSUANCE OF CERTIFICATES 

 

 Section 2.01                           Name.  The Trust created hereby shall be known as Incapital Trust Products II Trust__________, in which name the Trustee may conduct the activities contemplated hereby, make and execute contracts and other instruments, acquire, mortgage, lease, convey and transfer assets, and sue and be sued. 

 

 Section 2.02                           Office.  The principal office of the Trust shall be in care of the Trustee, addressed to the Corporate Trust Office of the Trustee.  The office of the Trust in the State of Delaware shall be in care of the Delaware Trustee, addressed to 300 Delaware Avenue, 9th Floor, Wilmington, DE  19801, Attention: Corporate Trust, or at such other address as the Delaware Trustee may designate by notice to the Certificateholders. 

 

 Section 2.03                           Purposes and Powers.  The Trust shall have the power and authority to engage in the following activities:  (i) issue and sell Certificates and use the proceeds from such sale to acquire the Trust Property, (ii) activities which are necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or connected therewith and (iii) such other activities as may be required in connection with conservation of the Trust Property and distributions to the Certificateholders. 

 

 Section 2.04                           Creation and Declaration of Trust; Assignment of Underlying CDs. 

 

 (a)           The Depositor, concurrently with the execution and delivery of this Agreement, Transfers to the Trustee, on behalf and for the benefit of the Certificateholders, without recourse, all the right, title and interest of the Depositor, including any security interest therein, in, to and under (i) the Underlying CDs, (ii) all payments on or under and all proceeds of any of the foregoing (including all proceeds of the conversion thereof, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, condemnation awards, causes of action, rights to payment of any and every kind and other forms of obligations, receivables, instruments and other property which at any time constitute all or part of or are included in the proceeds of any of the foregoing) and (iii) all other assets included or to be included in the Trust Property. 

 

 (b)           In connection with the Transfer referred to in Section 2.01(a), the Depositor shall, on the Closing Date, either (i) deposit the Underlying CDs in definitive, physical form with the Trustee by physical delivery of such Underlying CDs, duly endorsed and accompanied by all necessary Transfer documents, to the Trustee, or (ii) cause the Underlying CDs represented by global securities to be transferred to the Trustee on the books and records of the applicable Depositary and its participants. 

 

  

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 (c)           The Depositor's Transfer of the Underlying CDs to the Trustee accomplished by this Agreement is absolute and is intended by the parties hereto as a sale as further provided in Section 3.04. 

 

 (d)           It is the intention of the parties hereto that the Trust constitute a statutory trust under Chapter 38 of Title 12 of the Delaware Code (the “Act”) and that this Agreement constitute the governing instrument of the Trust.  Pursuant to Section 3810 of the Act, the Trustee and the Delaware Trustee shall file a certificate of trust with the Delaware Secretary of State on the date hereof in order to form the Trust. 

 

 Section 2.05                           Entry into Agency Agreement.  Prior to the execution of this Agreement, the Depositor shall have entered into the Agency Agreement with the Certificates Agent[s]. 

 

 Section 2.06                           Acceptance by Trustee.  Each of the Trustee and the Delaware Trustee acknowledges its receipt of the Underlying CDs and the related documents referred to in Section 2.01 and declares that it will hold such assets and all other assets comprising the Trust Property in trust for the exclusive benefit of all present and future Certificateholders and for the purposes and subject to the terms and conditions set forth in this Agreement, including the Trustee's obligations to make distributions to the Certificateholders in accordance with Section 4.01. 

 

 Section 2.07                           Agreement to Execute, Authenticate and Deliver Certificates.  The Trustee agrees and acknowledges that it will, concurrently with its receipt of the Underlying CDs and the execution and delivery by the Depositor of this Agreement and the Trustee’s receipt of a Depositor Order from the Depositor for the authentication and delivery of Certificates, duly execute, authenticate and deliver to or upon the order of the Depositor, in exchange for the Underlying CDs and such other assets constituting the Trust Property, Certificates in authorized denominations evidencing beneficial ownership of the entire Trust Property, all in accordance with the terms and conditions of this Agreement. 

 

 

 ARTICLE III 

 TRUST POWERS; ADMINISTRATION OF THE TRUST PROPERTY 

 

 Section 3.01                           Trust Property.  The “Trust Property” will consist of (i) the Underlying CDs and all payments on or collections in respect of such Underlying CDs and (ii) all Eligible Investments and all funds from time to time deposited in segregated accounts held by the Trustee in trust for the benefit of the Certificateholders other than the Reserve Account.  Legal title to all Trust Property shall be vested in the Trust, except that the Trustee may cause legal title to any Trust Property to be held by or in the name of any Trustee or any other Person as nominee.  No Certificateholder shall be deemed to have a severable ownership interest in any individual asset of the Trust or any right of partition or possession thereof. 

 

  

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 Section 3.02                           Administration of the Trust. 

 

 (a)           Except as otherwise specified herein, the Trustee shall administer the Trust Property for the benefit of the Certificateholders.  In administering the Trust Property, the Trustee shall follow the collection procedures specified in the Underlying CDs and shall perform all other duties set forth herein. The duties of the Trustee shall be performed in accordance with applicable law. 

 

 (b)           Subject to Article VIII, the Trustee is hereby authorized to perform, and from time to time hereafter, shall perform only those acts which are described in this Agreement as obligations of the Trustee. Notwithstanding the generality of the foregoing, the Trustee is hereby specifically authorized to do the following on behalf of the Trust: to accept delivery of the Underlying CDs; to execute, authenticate and deliver the Certificates; to establish and maintain the Certificate Account hereunder; to pledge the Trust Property to secure the obligations of the Trust; to make Eligible Investments pursuant to Section 3.06; and to make distributions pursuant to Article IV. 

 

 (c)           Notwithstanding anything to the contrary herein, the Trustee shall not permit the Trust to engage in any business or activities other than receiving and holding the Underlying CDs or other Trust Property as provided herein in trust for the benefit of Certificateholders, issuing the Certificates, making Eligible Investments in accordance with Section 3.06 and distributions pursuant to Article IV and performing its duties set forth herein; provided, that the Trustee shall not cause the Trust to engage in any business or activity which will cause it to be required to be registered under the Investment Company Act or which would cause the Trust to be taxed as an association or publicly traded partnership taxable as a corporation or otherwise alter the classification of the Trust for U.S. Federal income tax purposes. 

 

 (d)           The Trustee shall not Transfer the Underlying CDs or other Trust Property, or any interest of the Trust therein, to any Person or Persons, except to a successor trustee as provided in Section 8.08 or as otherwise expressly specified hereunder. This Section 3.02(d) shall not be construed to prohibit Transfers of the Certificates or removal of any Underlying CDs from the Trust Property as expressly specified herein. In addition, the Trustee shall not acquire any asset or make any investment except as contemplated within the definition of Trust Property. 

 

 (e)           The Trustee shall be legally entitled to exercise all of the rights, powers and privileges as a registered holder or beneficial owner of the Underlying CDs, subject to the provisions of this Agreement.  However, neither the Trustee (except as specifically provided herein or in the TIA) nor the Depositor shall be under any obligation whatsoever to appear in, prosecute or defend any Proceeding in respect of Underlying CDs or Certificates. 

 

 (f)           The Trustee shall not take any action that is reasonably likely to (i) impair the interests of the Trust in any Underlying CDs or any other Trust Property, (ii) impair the value of any Underlying CDs or any other Trust Property, (iii) require the Trust to be registered under the Investment Company Act or (iv) cause the Trust to be taxed as a corporation or publicly traded partnership taxable as a corporation or otherwise alter the classification of the Trust for U.S. Federal income tax purposes, and the Trustee shall not fail to take any action that is reasonably likely to avoid any of the matters referred to in clause (i), (ii), (iii) or (iv) above. 

 

  

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 Section 3.03                           Collection of Certain Underlying CD Payments.  The Trustee shall use commercially reasonable efforts to collect all payments required to be made by each Underlying Issuer pursuant to the terms of its Underlying CDs in a manner consistent with the terms of such Underlying CDs. 

 

 Section 3.04                           Sale.  The parties hereto agree and intend that the Transfer of Underlying CDs to the Trust by the Depositor and all proceeds thereof shall be treated as a sale and purchase by the Trust and not as a loan or a pledge to secure a loan. If for any reason such Transfer is deemed to be as a loan or a pledge to secure a loan, the parties intend that this Agreement shall be a security agreement pursuant to which there shall be deemed to have been granted to the Trustee a security interest in all right, title and interest in and to the Underlying CDs and to the Reserve Account for Trust Expenses specified herein. If the Trust terminates prior to the satisfaction of the claims of any Certificateholder under any Certificate, the security interest created hereby shall continue in full force and effect and the Trustee shall be deemed to be the collateral agent for the benefit of such Certificateholder. 

 

 Section 3.05                           Certificate Account. 

 

 (a)           The Trustee shall establish a Certificate Account.  The Trustee, on behalf of the Certificateholders, shall possess all right, title and interest in and to all funds on deposit from time to time in the Certificate Account and in all proceeds thereof.  The Certificate Account shall be under the sole dominion and control of the Trustee.  The Trustee shall deposit or cause to be deposited in the Certificate Account all amounts collected with respect to the Underlying CDs, including: 

 

 (i)             all payments received by the Trustee on account of principal of the Underlying CDs; 

 

 (ii)            all payments received by the Trustee on account of premium (if any) on the Underlying CDs; 

 

 (iii)           all payments received by the Trustee on account of interest on the Underlying CDs; and 

 

 (iv)           payments in the nature of penalties, late payment charges or assumption fees received by the Trustee in respect of any Underlying CDs. 

 

 The Trustee shall also deposit or cause to be deposited in the Certificate Account all payments received in respect of any Eligible Investments.  If, at any time, the Certificate Account is not an Eligible Account, the Trustee shall, within five Business Days (or such longer period, not to exceed 30 calendar days), establish a new Certificate Account meeting the conditions specified above and the Trustee shall, within five Business Days after establishing a new Certificate Account, transfer any cash and any investments on deposit in the Certificate Account to such new Certificate Account, and from the date such new Certificate Account is established it shall be the Certificate Account for purposes of this Agreement. 

 

 (b)           The Trustee shall give notice to the Depositor of the location of each Eligible Account constituting the Certificate Account prior to any change thereof. 

 

  

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 (i)             The Trustee hereby confirms the following with respect to the Certificate Account: (A) it shall treat the Certificate Account as a “securities account” within the meaning of Section 8-501 of the UCC to which financial assets are or may be credited, (B) the Trustee shall act in the capacity of a “securities intermediary” within the meaning of Section 8-102(a)(14) of the UCC (in such capacity, the “Securities Intermediary”) with respect to the Certificate Account, (C) the Securities Intermediary shall treat the Trustee as the sole “entitlement holder” within the meaning of Section 8-102(a)(7) of the UCC of the Certificate Account and the sole Person entitled to exercise the rights that comprise any financial asset credited to the Certificate Account, and (D) all securities, securities entitlements, financial assets and other investment property shall be credited by the Securities Intermediary to the Certificate Account as provided herein. 

 

 (ii)            The Securities Intermediary hereby agrees that each item of property (whether investment property, financial assets, securities, or instruments) credited to the Certificate Account (other than cash) shall be treated as a “financial asset” within the meaning of Article 8-102(a)(9) of the UCC.  On the day on which any funds are deposited in the Certificate Account, the Securities Intermediary shall either distribute such funds in accordance with Section 4.01 hereof or, as applicable, invest such funds in Eligible Investments, (to the extent funds are received in time to be invested), in accordance with Section 3.06 hereof. 

 

 (iii)           Notwithstanding anything to the contrary and for the avoidance of doubt, if at any time the Securities Intermediary shall receive any notification or entitlement order from the Trustee directing it to transfer or redeem any financial asset or other property relating to the Certificate Account, the Securities Intermediary shall comply with such notification or other entitlement order without further consent by the Depositor or any other Person. 

 

 (iv)           The Securities Intermediary's jurisdiction (as defined in Section 8-110 of the UCC) shall be the State of New York. 

 

 (v)           The Trust Property and any other property to be deposited in, or credited to, the Certificate Account shall be delivered as follows (terms used in the following provisions that are not otherwise defined are used as defined in Article 8 of the UCC): 

 

	
    

	
 (1) 

	
 in the case of each certificated security (other than a clearing corporation security (as defined below)) or instrument, by: 

 

 (A)           the delivery of such certificated security or instrument to the Securities Intermediary registered in the name of the Securities Intermediary or its affiliated nominee or endorsed to the Securities Intermediary or in blank, 

 

 (B)           the Securities Intermediary continuously indicating by book-entry that such certificated security or instrument is credited to the Certificate Account, and 

 

  

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 (C)           the Securities Intermediary maintaining continuous possession of such certificated security or instrument in the State of New York; 

 

	
    

	
 (2) 

	
 in the case of each uncertificated security (other than a clearing corporation security (as defined below) ), by causing: 

 

 (A)           such uncertificated security to be continuously registered on the books of the issuer thereof to the Securities Intermediary, and 

 

 (B)           the Securities Intermediary continuously indicating by book-entry that such uncertificated security is credited to the Certificate Account; 

 

	
    

	
 (3) 

	
 in the case of each security in the custody of or maintained on the books of a clearing corporation or its nominee (a “clearing corporation security”), by causing: 

 

 (A)           the relevant clearing corporation to credit such clearing corporation security to the securities account of the Securities Intermediary, and 

 

 (B)           the Securities Intermediary continuously indicating by book-entry that such clearing corporation security is credited to the Certificate Account; and 

 

	
    

	
 (4) 

	
 in the case of each security entitlement not governed by clauses (1) through (3) above, by: 

 

 (A)           causing a securities intermediary (x) to indicate by book-entry that the underlying “financial asset” (as defined in Section 8-102(a)(9) of the UCC) has been credited to be the Securities Intermediary's securities account, (y) to receive a financial asset from the Securities Intermediary or acquiring the underlying financial asset for the Securities Intermediary, and, in either case, accepting it for credit to the Securities Intermediary's securities account or (z) to become obligated under other law, regulation or rule to credit the underlying financial asset to the Security Intermediary's securities account, 

 

 (B)           the making by such securities intermediary of entries on its books and records continuously identifying such security entitlement as belonging to the Securities Intermediary and continuously indicating by book-entry that such securities entitlement is credited to the Securities Intermediary's securities account, and 

 

 (C)           the Securities Intermediary continuously indicating by book-entry that such security entitlement (or all rights and property of the Securities Intermediary representing such securities entitlement) is credited to the Certificate Account. 

 

  

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 Section 3.06                           Investment of Funds in the Accounts.  At the written direction of the Depositor, the Trustee shall invest all uninvested funds in the Certificate Account in Eligible Investments prior to the close of business on the Business Day such funds are deposited in any such Account (to the extent such funds are received in time to be invested in such Eligible Investment, and on the next Business Day if such Eligible Investment is not available).  If the Depositor does not give the Trustee such a written direction, amounts in the Certificate Account shall be invested in the Eligible Investments specified in clause (2) of the definition thereof.  The Trustee shall be required to hold such Eligible Investments to maturity unless any such investments shall (x) no longer qualify as Eligible Investments (as determined by the Administrative Agent) or (y) be payable on demand. 

 

 Section 3.07                           Access to Certain Documentation.  The Trustee shall provide to any regulatory authority that may exercise authority over the Depositor or any Certificateholder access to the documentation regarding the Underlying CDs required by applicable laws and regulations. Such access shall be afforded without charge, but only upon reasonable request and during normal business hours at the offices of the Trustee designated by it.  In addition, access to the documentation regarding the Underlying CDs will be provided to the Depositor or any Certificateholder upon request during normal business hours at the Corporate Trust Office of the Trustee at the expense of the Person requesting such access. 

 

 Section 3.08                           Removal of Underlying CDs Upon a Removal Event. 

 

 (a)           If a Removal Event with respect to any Underlying CD or the related Underlying Issuer has occurred, then the Trustee, within two Business Days following its receipt of written notice from the Administrative Agent, in the case of a Non-Filing Event, will deliver to the Certificateholders notice of the applicable Removal Event in the form specified in Annex A hereto in accordance with Section 4.02(b) and, will make commercially reasonable efforts within twelve Business Days following its receipt of any such written notice, to remove the related Underlying CDs from the Trust Property and to distribute such Underlying CDs to the Certificateholders on a pro rata basis (based on their respective Fractional Undivided Interests), and the Certificate Principal Balance of each Certificate will be reduced by an amount equal to the pro rata share of the principal amount of such Underlying CDs, provided, however, that if at the time of the Removal Event the Trust has Trust Expenses that have not been fully paid or amortized by the Trust, the Trust may retain Underlying CDs, and not distribute them to Certificateholders, in an amount equal to each Certificateholder’s pro rata share of these Trust Expenses.  In such cases, the Trustee will decrease the Certificate Principal Balance of each Certificate to reflect such reduction. 

 

 (b)           If the Trustee cannot distribute the related Underlying CDs that are to be distributed to Certificateholders upon the occurrence of a Removal Event as a result of the failure to satisfy the minimum authorized denomination requirements of such Underlying CDs, the Trustee will deliver (1) Underlying CDs in any whole increments to each Certificateholder and (2) Underlying CDs attributable to the fractional amount of Underlying CDs to which each Certificateholder would be entitled to receive were there no minimum authorized denomination requirement, to the Administrative Agent for sale on behalf of the related Certificateholders.  Following such sale, the Administrative Agent will promptly deliver the proceeds received from such sale (less any Administrative Agent Fee) to the Trustee for distribution to the applicable Certificateholders. 

 

  

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 Section 3.09                           Removal of Underlying CDs Upon Wind-up Event. 

 

 (a)           If a Wind-up Event has occurred, then the Trustee, within two Business Days following its receipt of written notice from the Administrative Agent of such Wind-up Event, will deliver to the Certificateholders notice of the applicable Wind-up Event in the form specified in Annex A hereto in accordance with Section 4.02(b) and, will make commercially reasonable efforts within twelve Business Days following its receipt of any such notice, to remove the Underlying CDs from the Trust Property and to distribute all such Underlying CDs to the Certificateholders on a pro rata basis (based on their respective Fractional Undivided Interests) or the sale proceeds specified in Sections 3.09(b) and 3.10, as required, to such Certificateholders provided, however, that if at the time of the Wind-up Event the Trust has Trust Expenses that have not been fully paid or amortized by the Trust, the Trust may retain Underlying CDs, and not distribute them to Certificateholders, in an amount equal to each Certificateholder’s pro rata share of these Trust Expenses. 

 

 (b)           If the Trustee cannot distribute the related Underlying CDs that are to be distributed to Certificateholders upon the occurrence of a Wind-up Event as a result of the failure to satisfy the minimum authorized denomination requirements of such Underlying CDs, the Trustee will deliver (1) Underlying CDs in any whole increments to each Certificateholder and (2) Underlying CDs attributable to the fractional amount of Underlying CDs to which each Certificateholder would be entitled to receive were there no minimum authorized denomination requirement, to the Administrative Agent for sale on behalf of the related Certificateholders.  Following such sale, the Administrative Agent will promptly deliver the proceeds received from such sale (less any Administrative Agent Fee) to the Trustee for distribution to the applicable Certificateholders. 

 

 Section 3.10                           Sale Procedures Following a Removal Event or a Wind-up Event.  In connection with any sale of any Underlying CDs required pursuant to Sections 3.08 or 3.09, the Administrative Agent, on behalf of the applicable Certificateholders, will use its reasonable efforts to sell such Underlying CDs to the highest of not less than three solicited bidders (which bidders may include the Administrative Agent and its Affiliates); provided, however, that neither the Administrative Agent nor any of its Affiliates shall be obligated to bid for such Underlying CDs; provided, further, that the Administrative Agent shall use its reasonable efforts to solicit no less than three bids from financial institutions with invested assets or assets under management of at least $100 million that are not Affiliates of the Administrative Agent.  If, in connection with the sale of any Underlying CDs pursuant to Sections 3.08(b) or 3.09(b) hereof, the Administrative Agent receives less than three such bids prior to the close of business on the second Business Day following the Administrative Agent's receipt of all such Underlying CDs to be sold pursuant to Section 3.08(b) or 3.09(b), the Administrative Agent shall sell the related Underlying CDs to the highest bidder and deliver the proceeds received in connection with such sale (less any Administrative Agent Fee) to the Trustee for distribution to the applicable Certificateholders.  In the sole judgment of the Administrative Agent, bids may be evaluated on the basis of bids for all or a portion of the Underlying CDs to be sold or any other basis selected in good faith by the Administrative Agent.  The proceeds of such sale will be allocated in the following order of priority: (i) to the Administrative Agent for its fee for its services for the sale of Underlying CDs pursuant to Section 3.08(b) or 3.09(b) equal to the product of the (1) the aggregate principal amount of the Underlying CDs so sold and (2) [_]% (the “Administrative Agent Fee”) and (ii) to the Certificateholders.  The Administrative Agent will deduct this fee from the gross proceeds received from any such sale. 

 

  

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 Section 3.11                           Administrative Agent Provisions. 

 

 (a)           The Administrative Agent undertakes to perform its duties hereunder, and no implied covenants or obligations shall be read into this Agreement against the Administrative Agent.  Any permissive right of the Administrative Agent enumerated in this Agreement shall not be construed as a duty. 

 

 (b)           Neither the Administrative Agent nor any of its directors, officers, employees or agents shall be liable, for any losses, costs or damages or otherwise, to the Trustee or the Certificateholders under any circumstances for any act or omission except for its willful misconduct, bad faith or gross negligence in the performance of duties specifically set forth in this Agreement; it being understood that: 

 

 (i)           the duties and obligations of the Administrative Agent shall be determined solely by the express terms of this Agreement and, in the absence of gross negligence, bad faith or willful misconduct on the part of the Administrative Agent, the Administrative Agent may conclusively rely upon any certificates or opinions furnished to the Administrative Agent as to the truth and correctness of any statements contained therein; 

 

 (ii)           the Administrative Agent shall not be personally liable for any action taken, suffered or omitted by a Responsible Officer or Responsible Officers of the Administrative Agent in good faith and reasonably believed by such Responsible Officer or Responsible Officers of the Administrative Agent to be authorized or within the discretion or rights or powers conferred upon it by this Agreement; and 

 

 (iii)           except with respect to actions or duties required to be taken or performed, as applicable, by the Administrative Agent under the express terms of this Agreement, the Administrative Agent shall not be required to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties or in the exercise of any of its rights or powers under this Agreement. 

 

 (c)           Except as otherwise provided in Section 3.11(b): 

 

 (i)           the Administrative Agent may request and rely upon and shall be protected in acting or refraining from acting upon any resolution, Officers' Certificate, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document reasonably believed by it to be genuine and to have been signed by the proper party or parties; 

 

  

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 (ii)           the Administrative Agent may consult with counsel and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it under this Agreement in good faith and in accordance with such advice or Opinion of Counsel; 

 

 (iii)           the Administrative Agent shall be under no obligation to institute, conduct or defend any Proceeding hereunder or in relation thereto, at the request, order or direction of any of the Certificateholders or otherwise; 

 

 (iv)           the Administrative Agent shall not be bound to make any investigation into the facts of matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, approval, bond or other paper or document believed by it to be genuine; 

 

 (v)           the Administrative Agent may execute any of the powers or perform any duties under this Agreement either directly or by or through Affiliates; and 

 

 (vi)           the Administrative Agent shall not be deemed to have notice or actual knowledge of any matter unless written notice thereof is received by the Administrative Agent at its office at 200 South Wacker Drive, Suite 3700, Chicago, IL 60606, Attention: Christopher Hogg. 

 

 (d)           The Administrative Agent may at any time resign and be discharged from its obligations and duties hereunder by giving written notice thereof to the Depositor. Upon receiving such notice of resignation, the Depositor shall as promptly as possible (and in any event within 45 calendar days after the date of such notice of resignation) appoint a successor Administrative Agent by written instrument, in duplicate, which instrument shall be delivered to the resigning Administrative Agent and to the successor Administrative Agent.  A copy of such instrument shall be delivered to the Certificateholders and the Trustee by the Depositor.  If no such successor Administrative Agent shall have been so appointed and have accepted appointment within 45 calendar days after the giving of such notice of resignation, the resigning Administrative Agent may petition any court of competent jurisdiction for the appointment of a successor Administrative Agent. 

 

 (e)           The Depositor may remove the Administrative Agent at any time; provided, that the Depositor, in connection with any such removal, appoints a successor Administrative Agent by written instrument, in duplicate, which instrument shall be delivered to the Administrative Agent so removed and to the successor Administrative Agent. A copy of such instrument shall be delivered to the Certificateholders and the Trustee by the Depositor. 

 

 (f)           Any resignation or removal of the Administrative Agent and appointment of a successor Administrative Agent pursuant to any of the terms of Section 3.11(d) or (e) shall not become effective until acceptance of appointment by the successor Administrative Agent as provided in Section 3.11(g). 

 

  

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 (g)           Any successor Administrative Agent appointed as provided in Section 3.11(d) or (e) shall execute, acknowledge and deliver to the Depositor, the Trustee and its predecessor Administrative Agent an instrument accepting such appointment under this Agreement, and thereupon the resignation or removal of the predecessor Administrative Agent shall become effective, and such successor Administrative Agent, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of the predecessor Administrative Agent under this Agreement, with the like effect as if originally named as Administrative Agent in this Agreement. The predecessor Administrative Agent shall deliver to the successor Administrative Agent all documents and statements held by it under this Agreement, and the Depositor and the predecessor Administrative Agent shall execute and deliver such instruments and do such other things as may reasonably be required for more fully and certainly vesting and confirming in the successor Administrative Agent all such rights, powers, duties and obligations. Upon acceptance of appointment by a successor Administrative Agent as provided herein, the Depositor shall transmit notice of the succession of such Administrative Agent under this Agreement to all Certificateholders and the Trustee. 

 

 (h)           Any corporation or association into which the Administrative Agent may be merged or converted or with which it may be consolidated, or any corporation or association resulting from any merger, conversion or consolidation to which the Administrative Agent shall be a party, or any corporation or association succeeding to the business of the Administrative Agent, shall be the successor of the Administrative Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties to this Agreement, anything in this Agreement to the contrary notwithstanding. 

 

 Section 3.12                           Indemnification of Administrative Agent. 

 

 The Administrative Agent and any director, officer, employee or agent of the Administrative Agent shall be indemnified by the Trust and held harmless against any loss, liability or expense incurred in connection with any Proceeding relating to this Agreement or the Certificates or the performance of any of the Administrative Agent’s duties under this Agreement (each such loss, liability or expense indemnified hereunder shall be considered a Trust Expense), other than any loss, liability or expense (i) that constitutes a specific liability of the Administrative Agent under this Agreement or (ii) incurred by reason of willful misconduct, bad faith or negligence in the performance of the Administrative Agent’s duties hereunder or as a result of a breach or reckless disregard of the Administrative Agent’s obligations and duties hereunder; provided, however, that with respect to any such Proceeding, (1) the Administrative Agent shall have given the Trust notice thereof promptly after the Administrative Agent shall have knowledge thereof, (2) while maintaining control over its own defense in any such Proceeding, the Administrative Agent shall consult with the Trust in preparing such defense, (3) if any Person ever alleges such willful misconduct, bad faith or negligence by the Administrative Agent, the indemnification provided for in this Section 3.12 shall nonetheless be paid upon demand, subject to later adjustment or reimbursement, until such time as a court of competent jurisdiction enters a final judgment as to the extent and effect of the alleged willful misconduct, bad faith or negligence.  In the event the Administrative Agent is not indemnified by the Trust in accordance with this Section 3.12, the Administrative Agent shall nevertheless remain obligated to perform its duties under this Agreement. 

 

  

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 ARTICLE IV 

 DISTRIBUTIONS AND REPORTS TO CERTIFICATEHOLDERS 

 

 Section 4.01                           Distributions. 

 

 (a)           On each Regular Distribution Date for the Certificates, the Trustee shall distribute the Available Funds in the Certificate Account to the Certificateholders on a pro rata basis (based on their Fractional Undivided Interests). 

 

 (b)           Upon redemption or at the stated maturity of an Underlying CD the Trustee will distribute the principal and premium, if any, portion of Available Funds to the Certificateholders on a pro rata basis (based on their Fractional Undivided Interests).  Upon such payment, the Certificate Principal Balance of each Certificate will be reduced on a pro rata basis (based on its Fractional Undivided Interest) with respect to payment of the principal amount of each Underlying CDs paid at its stated maturity or upon redemption, exclusive of any premium.  In such cases, the Trustee will decrease the Certificate Principal Balance of each Certificate to reflect the maturing or redeemed Underlying CDs or and will also deliver the principal and any premium and interest so received on the maturing or redeemed Underlying CDs.  In addition, in the event of any optional redemption of any Underlying CD by the related Underlying Issuer prior to the stated maturity of such Underlying CD, the Trustee shall notify the Depositary to decrease the beneficial ownership interests in each Global Certificate on a pro rata basis. 

 

 All distributions made to Certificateholders pursuant to this Section 4.01(a) shall be made to (i) Certificateholders on the Record Date for a Regular Distribution Date or (ii) Certificateholders against presentation and surrender of their Certificates on the Final Scheduled Distribution Date. 

 

 (c)           If the Trustee receives a payment of principal of or premium or interest on an Underlying CD after the due date for such payment as specified in such Underlying CD then the Trustee will distribute the amounts so received no more than three (3) Business Days following receipt of such payment (each, a “Special Distribution Date”) to Certificateholders on the Record Date for a Special Distribution Date, in the manner specified in Section 4.01(a). 

 

 (d)           If Underlying CDs are retained by the Trustee pursuant to Section 3.08 or 3.09, the Trustee shall apply the retained Underlying CDs to payment of such unpaid Trust Expenses in the manner provided for in (a)(ii) above. 

 

 Section 4.02                           Reports to Certificateholders; Notices. 

 

 (a)           On the Business Day next succeeding each Distribution Date, the Trustee shall forward or cause to be forwarded to the Depositor and each Certificateholder a statement setting forth: 

 

 (i)           the amount of distributions to Certificateholders allocable to principal or interest portion of Available Funds or the amount of any premiums payable to Certificateholders on a Special Distribution Date resulting from the optional redemption of Underlying CDs; 

 

  

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 (ii)           the aggregate Certificate Principal Balance at the close of business on such Distribution Date; 

 

 (iii)           the amount received by the Trustee on the related Underlying CDs for the applicable Underlying CD Accrual Period; and 

 

 (iv)           the aggregate principal amount of the Underlying CDs as of such Distribution Date and the weighted average interest rate per annum applicable to the Underlying CDs for the next succeeding Underlying CD Accrual Period. 

 

 Within 60 days after each anniversary date of the issuance of the Certificates, the Depositor shall cause an independent public accounting firm to furnish a report to the Trustee to the effect that such firm has compared the information contained in the statements delivered to the Depositor and each Certificateholder pursuant to Section 4.02(a) with information contained in the accounts, records and computer systems for such period.  The Depositor will cause a copy of each report delivered pursuant to this Section 4.02(a) to be delivered to the [Rating Agencies] at the same time it is delivered to the Trustee. 

 

 In the case of information furnished pursuant to clause (i) above, any amount shall be expressed as a Dollar amount per minimum denomination of Certificates or for such other specified portion thereof.  Within a reasonable period of time after the end of each calendar year, the Trustee shall furnish to each Person who at any time during each such calendar year was a Certificateholder a statement containing the information set forth in clause (i) above, aggregated for such calendar year or the applicable portion thereof during which such Person was a Certificateholder, which statement shall contain sufficient information to allow Certificateholders to calculate their U.S. Federal income tax liability with respect to the Certificates.  Such obligation of the Trustee shall be deemed to have been satisfied to the extent that substantially comparable information shall have been provided by the Trustee pursuant to any requirements of the Code as are from time to time in effect. 

 

 (b)           If there is a Removal Event with respect to any Underlying CD or Underlying Issuer and such Removal Event is actually known to a Responsible Officer of the Trustee, the Trustee shall give notice to the Certificateholders thereof as promptly as reasonably practicable in the manner and to the extent provided in TIA Section 313(c).  Such notice will set forth (i) the identity of the Underlying Issuer of the relevant Underlying CDs, (ii) the date and nature of such Removal Event, if any, including whether such Removal Event relates to the failure of such Underlying Issuer to pay the principal of or premium, if any, or interest on such Underlying CDs, (iii) the aggregate principal amount of such Underlying CDs and the aggregate principal amount and weighted average interest rate per annum applicable to the remaining Underlying CDs, (iv) the Certificate Principal Balance of each Certificate after the removal of such Underlying CDs from the Trust Property, and (v) the then current rating of the Certificates by each applicable Rating Agency after taking such removal into account.  In addition to delivering such notice, in the event of the occurrence of any such event requiring removal of any Underlying CD from the Trust Property, the Trustee shall notify the Depositary to decrease the beneficial ownership interests in each Global Certificate on a pro rata basis. 

 

  

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 (c)           The Trustee will promptly deliver to the Certificateholders copies of all notices and communications it receives from any Underlying Issuer or the trustee or fiscal agent relating to any Underlying CDs, including notice of the optional redemption of any Underlying CDs by the related Underlying Issuer. 

 

 (d)           Within 60 days after May 15 of each year, the Trustee shall mail a brief report dated as of such date that complies with TIA Section 313(a) to (i) each Certificateholder as provided by TIA Section 313(c) and (ii) the Depositor. The Trustee also shall comply with TIA Section 313(b).  The Trustee will file a copy of each such report with each stock exchange upon which the Certificates are listed and with the Commission to the extent required by law, rule or regulations. 

 

 Section 4.03                                    Compliance with Tax Reporting and Withholding Requirements. 

 

 (a)           The Trustee shall file or cause to be filed, within the time limits established by law, U.S. federal and State income tax returns and information statements as a trust, the Certificateholders of which are treated as the owners thereof under Section 671 of the Code, for each of the Trust's taxable years. The Trust's taxable year shall be the calendar year.  Notwithstanding any other provision of this Agreement to the contrary, the Trustee shall comply with all U.S. federal withholding requirements (including any applicable exceptions thereto) respecting distributions to, or receipts of amounts on behalf of, Certificateholders.  The consent of Certificateholders shall not be required for any such withholding.  In the event that the Trustee does withhold any amount from any distribution to any Certificateholder pursuant to U.S. federal withholding requirements, the Trustee shall indicate the amount so withheld in the statement required pursuant to Section 4.02. 

 

 (b)           Each Certificateholder or holder of an interest in a Certificate, by acceptance of such trust certificate or such interest therein, agrees to provide to the Trustee or the Administrative Agent, upon its request, the certificateholder tax identification information and, to the extent FATCA Withholding Tax is applicable, the Certificateholder FATCA Information. In addition, each Certificateholder or holder of an interest in a Certificate, by acceptance of such Certificate or such interest therein, agrees that the Trustee has the right to withhold any amounts of interest (properly withholdable under law and without any corresponding gross-up) payable to a Certificateholder or holder of an interest in a Certificate that fails to comply with the requirements of the preceding sentence. 

 

 For purposes of the paragraph above: 

 

 The term “FATCA” means Sections 1471 through 1474 of the Code (or any amended or successor version) and any current or future regulations or official interpretations thereof. 

 

 The term “FATCA Withholding Tax” means any withholding or deduction pursuant to an agreement described in Section 1471(b) of the Code or otherwise imposed pursuant to FATCA. 

 

 The term “Certificateholder FATCA Information” means, with respect to any Certificateholder or holder of an interest in a Certificate, information sufficient to eliminate the imposition of, or determine the amount of, U.S. withholding tax under FATCA. 

 

  

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 Section 4.04                            Preservation of Information, Communications to Certificateholders. 

 

 (a)           The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of the Certificateholders contained in the most recent list furnished to the Trustee by the Certificate Registrar and the names and addresses of Certificateholders received by the Trustee in its capacity as Certificate Registrar, if applicable.  The Trustee may destroy any list furnished to it by the Certificate Registrar as provided upon receipt of a new list. 

 

 (b)           Certificateholders shall have the right to communicate pursuant to TIA Section 312(b) with other Certificateholders with respect to their rights under this Agreement or under the Certificates. 

 

 (c)           The Depositor, the Trustee and the Certificate Registrar shall have the protections provided pursuant to TIA Section 312(c). 

 

 Section 4.05                           Exchange Act Reports.  The Trustee will promptly deliver to Certificateholders, upon written request, copies of any reports filed with the Commission by the Depositor on behalf of the Trust and which have been filed with the Trustee by the Depositor pursuant to Section 6.06 hereof in respect of the Certificates under the Exchange Act. 

 

 

 ARTICLE V 

 THE CERTIFICATES 

 

 Section 5.01                           The Certificates. 

 

 (a)           There is hereby created a series of Certificates to be distinguished and known as  Incapital Trust Products II Trust __, CD Pass-Through Certificates.  Each Certificate represents a Fractional Undivided Interest in the assets of the Trust.  The aggregate Certificate Principal Balance of the Certificates shall initially be equal to $_____________.  Certificates will be denominated in Dollars and issued in denominations of $1,000.   No additional interests in the Trust other than the Certificates shall be issued hereunder, except in accordance with Section 5.04. 

 

 (b)           The Certificates will initially be issued as one or more Global Certificates in definitive, fully registered form without coupons, substantially in the form set forth in Exhibit A, and DTC will be the Depositary.  Upon issuance, the Global Certificates will initially be deposited with the Trustee in its capacity as custodian on behalf of DTC.  Such Global Certificates shall initially be registered in the name of Cede & Co. or another nominee designated by DTC.  Global Certificates will clear and settle in book-entry only form through the facilities of one or more Depositaries.  Unless and until it is exchanged in whole or in part for Certificates, a Global Certificate may not be transferred except as a whole by the Depositary for such Global Certificate to a nominee of such Depositary or by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by such Depositary or any such nominee to a successor of such Depositary or a nominee of such successor.  The Certificate Principal Balance of any Global Certificate may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for DTC for such Global Certificate, as provided in Section 5.01(d) hereof. 

 

  

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 (c)           With respect to any transfer or exchange of Certificated Certificates, the Certificate Registrar shall register the transfer or exchange of any such Certificate without requiring any additional certification. 

 

 (d)           Interests of beneficial owners in a Global Certificate may be transferred in accordance with the rules and procedures of DTC and any other applicable Depositaries.  In connection with any exchange of beneficial ownership interests in a Global Certificate for Certificated Certificates pursuant to Section 5.11(b), the Certificate Registrar shall reflect on its books and records the date of such exchange and a decrease in the Certificate Principal Balance of such Global Certificate in an amount equal to the Certificate Principal Balance of the beneficial ownership interests in such Global Certificate being exchanged for Certificated Certificates. 

 

 (e)           The Certificates shall be personal property giving only the rights specifically set forth therein and in this Agreement.  The Certificates shall have no preemptive or similar rights and when issued and delivered to the Holders against payment of the purchase price therefor will be fully paid and nonassessable by the Trust.  The Holders of the Certificates, in their capacities as such, 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. THE RECEIPT AND ACCEPTANCE OF A CERTIFICATE OR ANY INTEREST THEREIN BY OR ON BEHALF OF A HOLDER OR ANY BENEFICIAL CERTIFICATEHOLDER, WITHOUT ANY SIGNATURE OR FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE HOLDER AND ALL OTHERS HAVING A BENEFICIAL INTEREST IN SUCH CERTIFICATE OF ALL THE TERMS AND PROVISIONS OF THIS AGREEMENT, AND SHALL CONSTITUTE THE AGREEMENT OF THE TRUST, SUCH HOLDER AND SUCH OTHERS THAT THE TERMS AND PROVISIONS OF THIS AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS BETWEEN THE TRUST AND SUCH HOLDER AND SUCH OTHERS. 

 

 Section 5.02                           Execution, Authentication and Delivery. 

 

 (a)           The Certificates shall be executed on behalf of the Trust by the Trustee by one of its Responsible Officers.  The signature of a Responsible Officer may be manual or facsimile. Certificates bearing the manual or facsimile signature of an individual who was, at any time, a Responsible Officer shall be valid, notwithstanding that such individual ceased to be a Responsible Officer prior to the execution, authentication and delivery of such Certificates or was not a Responsible Officer at the date of such Certificates. 

 

 (b)           Each Certificate shall be dated as of the date of its authentication. 

 

 (c)           Subject to Section 5.10(e), no Certificate shall be entitled to any benefit under this Agreement or be valid or obligatory for any purpose, unless there appears on such Certificate a certificate of authentication substantially in the form as contained in the form of Certificate attached to this Agreement as Exhibit A executed by the Trustee by the signature of one of its authorized signatories, which signature shall be manual, and such certificate upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has been duly authenticated and delivered under this Agreement and is entitled to the benefits of this Agreement. 

 

  

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 Section 5.03                           Registration; Registration of Transfer and Exchange. 

 

 (a)           The Trustee shall keep or cause to be kept, at its Corporate Trust Office, a register (the “Certificate Register”) for the Certificates in which, subject to such reasonable regulations as it may prescribe, a transfer agent and registrar (which may be the Trustee) (the “Certificate Registrar”) shall provide for the registration of Certificates and the registration of transfers and exchanges of Certificates. The Trustee is hereby initially appointed the Certificate Registrar for such purposes until the earlier to occur of (i) the appointment by the Depositor of a different Certificate Registrar, (ii) the resignation or termination of the Trustee and appointment of a successor trustee in accordance with Sections 8.07 and 8.08, in which case such successor trustee shall assume the duties of Certificate Registrar and (iii) the termination of the Trust and discharge of the Trustee's obligations under this Agreement in accordance with Article IX; provided, however, that the Depositor may appoint one or more Co-Certificate Registrars.  Upon the resignation of any Certificate Registrar appointed by the Depositor pursuant to clause (i) above, the Trustee shall promptly appoint a successor Certificate Registrar or, in the absence of such appointment, assume the duties of Certificate Registrar. 

 

 Upon (i) the appointment by the Depositor of a Certificate Registrar other than the Trustee, (ii) the appointment by the Depositor of any Co-Certificate Registrar or (iii) any change in the identity of the Certificate Registrar or any Co-Certificate Registrar, the Depositor will, in each case, give the Trustee written notice within three Business Days of any such appointment or change and of the location, and any change in the location, of the Certificate Register, and the Trustee shall have the right to rely upon a certificate executed on behalf of the Certificate Registrar by an Executive Officer thereof as to the names and addresses of the Certificateholders and the Certificate Principal Balance and number of each Certificate. 

 

 Upon surrender for registration of transfer of any Certificate at the Corporate Trust Office of the Trustee, if the requirements of Section 8-401(1) of the UCC are met to the Trustee's satisfaction, the Trustee shall execute, authenticate and deliver, in the name of the designated transferee or transferees, one or more new Certificates of any authorized denomination of a like tenor and aggregate Certificate Principal Balance. 

 

 (b)           At the option of the Certificateholder, Certificates may be exchanged for other Certificates of any authorized denomination or denominations of like tenor and aggregate Certificate Principal Balance upon surrender of the Certificates to be exchanged at the Corporate Trust Office of the Trustee.  Whenever any Certificates are so surrendered for exchange, the Trustee shall execute, authenticate and deliver the requested Certificates that the Certificateholder making the exchange is entitled to receive.  Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Trustee, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Trustee in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

 

  

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 (c)           Every Certificate surrendered for registration of transfer or exchange shall be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Trustee and the Certificate Registrar, duly executed, by the Certificateholder or his/her attorney duly authorized in writing, with such signature guaranteed by an eligible guarantor institution (as set forth in Section 5.03(b)), and such other documents as the Trustee may reasonably require. 

 

 All Certificates issued upon any registration of transfer or exchange of Certificates shall constitute complete and indefeasible evidence of ownership in the Trust Property and be entitled to the same benefits under this Agreement as the Certificates surrendered upon such registration of transfer or exchange. 

 

 No service charge shall be made to a Certificateholder for any registration of transfer or exchange of its Certificates, but the Trustee may require payment by the Certificateholders of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Certificates other than an exchange contemplated in Section 3.08(a) or 3.09(a), not involving any transfer. 

 

 Section 5.04                           Mutilated, Destroyed, Lost and Stolen Certificates.  If (i) any mutilated Certificate is presented to the Depositor and the Trustee or (ii) the Depositor and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Certificate, and there is delivered to the Depositor and the Trustee such security or indemnity as they may reasonably require to save each of them harmless, and neither the Depositor nor the Trustee receives notice that such Certificate has been acquired by a protected purchaser, then, in each case, the Trustee shall execute, authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of any authorized denomination or denominations of like tenor and Certificate Principal Balance, bearing a number not contemporaneously Outstanding, so that neither gain nor loss in interest shall result from such exchange or substitution. 

 

 Upon the issuance of any new Certificate under this Section 5.04, the Trustee may require the payment by the Certificateholder of a sum sufficient to cover any tax or other governmental charge that may be imposed in respect thereto and any other reasonable expenses (including the reasonable fees and expenses of the Trustee) connected therewith. 

 

 Every new Certificate issued pursuant to this Section 5.04 shall constitute complete and indefeasible evidence of ownership in the Trust Property, whether or not the destroyed, lost or stolen Certificate shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Agreement equally and proportionately with any and all other Certificates, if any, duly issued thereunder. 

 

 The terms of this Section 5.04 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Certificates. 

 

  

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 Section 5.05                           Distributions in Respect of Certificates. 

 

 (a)           Distributions on a Certificate that are payable on a Regular Distribution Date other than the Final Scheduled Distribution Date or a Special Distribution Date (other than a Special Distribution Date resulting from the optional redemption of Underlying CDs) shall be made to the Person in whose name such Certificate (or one or more Predecessor Certificates) is registered at the close of business on the Record Date immediately preceding such Regular Distribution Date or Special Distribution Date, as the case may be.  Distributions on Certificates on such Regular Distribution Date or Special Distribution Date, as the case may be, shall be made by check mailed to the address of the Certificateholder entitled thereto as such address shall appear in the Certificate Register.  Distributions on Certificates on the Final Scheduled Distribution Date, on a Special Distribution Date resulting from the optional redemption of Underlying CDs or upon a removal of Underlying CDs from the Trust Property under the circumstances prescribed in this Agreement shall be made in same-day funds against presentation and surrender of such Certificates to the Trustee at its Corporate Trust Office. Notwithstanding the foregoing, payments on Global Certificates shall be made in same-day funds on the applicable Distribution Date. 

 

 (b)           Subject to the terms of this Agreement to the contrary, each Certificate delivered under this Agreement upon transfer of or in exchange for or in lieu of any other Certificate shall carry the rights to amounts to be distributed that are accrued and undistributed, and to accrue, that were carried by such other Certificate. 

 

 Section 5.06                           Persons Deemed Owners.  Subject to Section 5.05, prior to due presentment of a Certificate for registration of transfer, the Depositor, the Trustee and any agent of the Depositor or the Trustee may treat the Person in whose name any Certificate is registered as the owner of such Certificate for the purpose of receiving distributions on such Certificate and for all other purposes whatsoever, whether or not such Certificate be overdue, and none of the Depositor, the Trustee or any agent of the Depositor or the Trustee shall be affected by notice to the contrary. 

 

 None of the Depositor, the Trustee or any agent of the Depositor or the Trustee will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Certificate or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests. 

 

 Notwithstanding the foregoing, with respect to any Global Certificate, nothing herein shall prevent the Depositor, the Trustee or any agent of the Depositor or the Trustee from giving effect to any written certification, proxy or other authorization furnished by any Depositary, as a Holder, with respect to such Global Certificate or impair, as between such Depositary and owners of beneficial interests in such Global Certificate, the operation of customary practices governing the exercise of the rights of such Depositary (or its nominee) as Holder of such Global Certificate. 

 

 Section 5.07                           Cancellation.  All Certificates presented and surrendered for payment, transfer or exchange shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and shall be promptly canceled by it.  No Certificates shall be authenticated in lieu of or in exchange for any Certificates canceled as provided in this Section 5.07. 

 

  

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 Section 5.08                           Currency of Distributions in Respect of Certificates.  Distributions on the Certificates will be made in Dollars. 

 

 Section 5.09                           Appointment of Paying Agent. 

 

 (a)           The Trustee may appoint one or more paying agents (each, a “Paying Agent”) with respect to the Certificates.  Any such Paying Agent shall be authorized to make distributions to Certificateholders pursuant to this Agreement and shall report the amounts of such distributions to the Trustee.  The Trustee may remove the Paying Agent if the Trustee determines in its sole discretion that the Paying Agent shall have failed to perform its obligations under this Agreement in any material respect or if the Paying Agent fails to satisfy the eligibility requirements set forth in paragraph (b) of this Section 5.09.  The Trustee is hereby initially appointed a Paying Agent.  Any Paying Agent shall be permitted to resign as Paying Agent upon 30 calendar days' written notice to the Trustee.  In the event that the Trustee shall no longer be the Paying Agent and the Depositor has not appointed a co-Paying Agent, the Trustee shall appoint a successor Paying Agent.  The Trustee shall cause each such Paying Agent to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee that it will hold all sums, if any, held by it for distribution to the Certificateholders in an Eligible Account in trust for the benefit of the Certificateholders entitled thereto until such sums shall be distributed to such Certificateholders.  The Paying Agent shall return all unclaimed funds to the Trustee within two years from the time such funds were first eligible to be claimed. 

 

 (b)           The Paying Agent shall at all times be a corporation or an association the combined capital and surplus of which is at least $200,000,000 (or is a wholly-owned subsidiary of a bank holding company having a consolidated capital and surplus of at least $200,000,000) and the long-term debt obligations of which are rated in one of the four highest categories assigned long-term debt obligations by each of the Rating Agencies and shall be subject to supervision or examination by U.S. federal or State authority.  If such corporation or association publishes reports of conditions at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then the combined capital and surplus of such corporation or association shall be deemed to be its combined capital and surplus as set forth in its most recent report of conditions so published. In the event that at any time the Paying Agent shall cease to be eligible in accordance with the terms of this Section 5.09(b), the Paying Agent shall release all Trust Property to the Trustee and then resign immediately.  Upon the receipt by the Trustee of notice of such resignation, the Trustee shall act as Paying Agent until the appointment of a successor Paying Agent in accordance with Section 5.09(a). 

 

 (c)           The terms of Article VIII, as applicable, shall apply to the Trustee also in its role as Paying Agent, for so long as the Trustee shall act as Paying Agent. 

 

 Section 5.10                           Authenticating Agent. 

 

  

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 (a)           The Trustee may appoint any one or more Authenticating Agents (each, an “Authenticating Agent”) with respect to the Certificates which shall be authorized to act on behalf of the Trustee in authenticating the Certificates in connection with the issuance, delivery and registration or transfer or exchange of the Certificates.  Whenever reference is made in this Agreement to the authentication of Certificates by the Trustee or the Trustee's unit of authentication, such reference shall be deemed to include authentication on behalf of the Trustee by an Authenticating Agent.  Each Authenticating Agent must be reasonably acceptable to the Depositor. 

 

 (b)           Any institution succeeding to the corporate agency business of any Authenticating Agent shall continue to be an Authenticating Agent without the execution or filling of any power or any further act on the part of the Trustee or such Authenticating Agent.  An Authenticating Agent may at any time resign by giving notice of resignation to the Trustee and the Depositor. The Trustee may at any time terminate the agency of an Authenticating Agent by signing and delivering a written notice of termination to such Authenticating Agent and to the Depositor. Upon receiving such a notice of resignation or upon such a termination, or in case at any time an Authenticating Agent shall cease to be acceptable to the Trustee or the Depositor, the Trustee may appoint a successor Authenticating Agent.  Subsequent to any such removal or resignation of the Authenticating Agent, the Trustee shall act as Authenticating Agent until a successor Authenticating Agent, if any, is appointed. Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent. 

 

 (c)           The Depositor agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section 5.10. 

 

 (d)           The provision of Sections 8.01, 8.02 and 8.03 shall be applicable to any Authenticating Agent. 

 

 (e)           Pursuant to an appointment made under this Section 5.10, the Certificates may have endorsed thereon, in lieu of the Trustee's certificate of authentication, an alternate certificate of authentication in substantially the following form: 

 

 “This is one of the Certificates referred to in the within-mentioned Trust Agreement. 

 

 _________________________ 

 as Authenticating Agent for the Trustee, 

 

 By________________________ 

 Authorized Signatory” 

 

 Section 5.11                           Issuance Matters. 

 

 (a)           The Certificates shall be issued on the Closing Date upon (i) deposit of the Underlying CDs into the Trust by the Depositor in exchange for all the Certificates and (ii) the due authentication by the Trustee of the Certificates in the form set forth in Exhibit A attached hereto. 

 

  

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 (b)           Any Global Certificate representing Certificates shall be exchangeable for Certificated Certificates only if (i) the Depositary notifies the Depositor that it is unwilling or unable to continue as depositary for the Global Certificates or the Depositor determines that the Depositary is unable to continue as depositary, and the Depositor thereupon fails to appoint a successor Depositary within 60 calendar days or (ii) the Depositor, in its sole discretion, at any time determines not to have Certificates represented by Global Certificates.  Any Global Certificate that is exchangeable pursuant to the preceding sentence will be exchangeable for Certificated Certificates of like tenor and Certificated Principal Balance, in any authorized denomination or denominations and registered in the names of such Person or Persons as the Depositary shall direct.  Upon such exchange, the Trustee shall execute and authenticate such Certificated Certificates and register the same in the name of, and deliver the same to, such Person or Persons consistent with Section 5.02. 

 

 (c)           Any Global Certificate representing Certificates shall bear a legend in substantially the following form: 

 

 “This Certificate is a Global Certificate within the meaning of the Trust Agreement hereinafter referred to and is registered in the name of the Depositary or the nominee of a Depositary.  This Certificate is exchangeable for Certificates registered in the name of a Person other than the Depositary or its nominee only in the limited circumstances described in the Trust Agreement, and may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor.” 

 

 (d)           Each Person that purchases a Certificate will be deemed to represent that its acquisition of such Certificate will not constitute or result in a non-exempt prohibited transaction. In addition, in the event the Certificates do not constitute Publicly Offered Securities, each Person that purchases a Certificate on behalf of an employee benefit plan or other plan that is subject to the provisions of ERISA Section 406 or Section 4975 of the Code will be deemed to represent that: (i) the plan is so represented in this regard by a QPAM or INHAM (as those terms are defined in Prohibited Transaction Class Exemption (“PTE”) 84-14 and PTE 96-23, respectively) and will be so represented for so long as such plan holds the related Certificate, and that the other conditions of PTE 84-14 or PTE 96-23 are and will at all times be satisfied, (ii) the conditions to the applicability of PTE 90-1, PTE 95-60 or PTE 91-38 are and will at all times be satisfied, or (iii) the conditions of another applicable exemption are and will at all times be satisfied, such that in the case of clause (i), (ii) or (iii) above the applicable exemption applies to the purchase, continued holding and disposition of such Certificate, as well as to the underlying transactions of the Trust. 

 

 

 ARTICLE VI 

 THE DEPOSITOR 

 

 Section 6.01                           Representations and Warranties of the Depositor. 

 

 (a)           The Depositor represents and warrants to the Trustee that as of the Closing Date: 

 

  

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 (i)           the Depositor is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware; 

 

 (ii)           the execution, delivery and performance of this Agreement by the Depositor will not violate the Depositor's Limited Liability Company Agreement or constitute a default under, or result in the breach or acceleration of, any contract, agreement or other  instrument to which the Depositor is a party or by which the Depositor or any of its assets is bound; 

 

 (iii)           the Depositor has the full power and authority to enter into and consummate all transactions contemplated by this Agreement, has duly authorized the execution, delivery and performance of this Agreement and has duly executed and delivered this Agreement; and this Agreement, assuming due authorization, execution and delivery by the Trustee, will constitute a valid and legally binding obligation of the Depositor, enforceable against it in accordance with the terms hereof, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other laws relating to or affecting the rights of creditors generally or by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law); and 

 

 (iv)           the Depositor is not in violation, and the execution, delivery and performance of this Agreement by the Depositor will not constitute a violation, of any order decree of any court or any order or regulation of any U.S. federal or State governmental agency having jurisdiction over the Depositor or any of its assets, which violation would reasonably be expected to materially and adversely affect the Depositor's duties and obligations under this Agreement. 

 

 (b)           It is the express intent of the parties hereto that the conveyance of the Underlying CDs by the Depositor to the Trustee be, and be construed as, a sale of the Underlying CDs by the Depositor and not a pledge of any Underlying CDs by the Depositor to secure a debt or other obligation of the Depositor. In the event that, notwithstanding the aforementioned intent of the parties, any Underlying CDs are held to be property of the Depositor, then it is the express intent of the parties that such conveyance be deemed a pledge of such Underlying CDs by the Depositor to the Trustee to secure a debt or other obligation of the Depositor. In connection with the grant of a security interest in any Underlying CDs, the Depositor hereby represents and warrants to the Trustee that as of the Closing Date: 

 

 (i)           In the event such Underlying CDs are held to be property of the Depositor, then this Agreement creates a valid and continuing security interest (as defined in the UCC) in such Underlying CDs in favor of the Trustee, which security interest is prior to all other liens, claims or other encumbrances and is enforceable as such against creditors of, and purchasers from, the Depositor; 

 

 (ii)           Such Underlying CDs have been credited to the Certificate Account; 

 

  

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 (iii)           Immediately prior to the conveyance of such Underlying CDs to the Trust, the Depositor owned and had good and marketable title to such Underlying CDs free and clear of any lien, claim or other encumbrance of any Person; 

 

 (iv)           The Depositor has received all consents and approvals required by the terms of such Underlying CDs to the conveyance to the Trustee of its interest and rights in such Underlying CDs as contemplated by this Agreement; 

 

 (v)           The Depositor has not assigned, pledged, granted a security interest in, sold or otherwise conveyed any interest in such Underlying CDs (or, if any such interest has been assigned, pledged or otherwise encumbered, it has been released); the Depositor has not authorized the filing of and is not aware of any financing statements against the Depositor that includes a description of such Underlying CDs; and the Depositor is not aware of any judgment or tax lien filings against the Depositor; and 

 

 (vi)           The Certificate Account is not in the name of any Person other than the Trustee; and the Depositor has not consented to the compliance by the Trustee with entitlement orders of any Person other than the Trustee, as trustee of the Trust. 

 

 Section 6.02                           Breach of Representation or Warranty.  Upon the Depositor's discovery of a breach of any representation or warranty of the Depositor set forth in Section 6.01 that materially and adversely affects the rights of the Certificateholders, the Depositor shall notify the Trustee of such breach and shall use its reasonable efforts to cure such breach in all material respects within five Business Days of its discovery. 

 

 Section 6.03                           Liability of the Depositor.  The Depositor shall be liable in accordance with this Agreement only to the extent of the obligations specifically imposed upon it under this Agreement. 

 

 Section 6.04                           Limitation on Liability of the Depositor. 

 

 (a)           Unless otherwise expressly specified in this Agreement, the Depositor shall not be under any obligation to expend or risk its own funds, except to the extent of its obligation to pay any amount payable under Section 8.05(b) hereof, or otherwise incur financial liability in the performance of its duties thereunder or in the exercise of any of its rights or powers if reasonable grounds exist for believing that the repayment of such funds or adequate indemnity against such risk or liability is not assured to it. 

 

 (b)           Unless otherwise expressly specified in this Agreement, the Depositor shall not have any liability, for any losses, costs or damages or otherwise, to the Trustee or the Certificateholders for any act or omission except for its willful misconduct, bad faith or gross negligence in the performance of duties specifically set forth in this Agreement. Notwithstanding anything to the contrary contained herein, the managers, officers, employees and agents of the Depositor shall not have any liability, for any losses, costs or damages or otherwise, to the Trustee or the Certificateholders for any act or omission, whether on their part or on the part of the Depositor or otherwise. 

 

  

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 (c)           Unless otherwise expressly specified in this Agreement, the Depositor shall not be under any obligation to appear in, prosecute or defend any Proceeding; provided, however, that the Depositor may in its discretion undertake any such Proceeding which it may deem necessary or desirable with respect to this Agreement. 

 

 (d)           The sole obligor with respect to any Underlying CD is the Underlying Issuer thereof. The Depositor shall not have any obligation on or with respect to the Underlying CDs. The Depositor, in its capacity as the depositor of the Underlying CDs into the Trust under this Agreement, is not authorized to proceed against the Underlying Issuer of any Underlying CD or to assert the rights and privileges of Certificateholders (except to the extent the Depositor is otherwise a Certificateholder) and has no duty in respect thereof. 

 

 Section 6.05                           Depositor May Purchase Certificates.  The Depositor or its Affiliates may at any time purchase Certificates in the open market or otherwise. Certificates so purchased by the Depositor may, at the discretion of the Depositor, be held or resold. 

 

 Section 6.06                           Preparation and Filing of Exchange Act Reports; Obligations of the Depositor.  The Depositor, as agent of the Trust, shall: 

 

 (a)           prepare, sign and file with the Commission, within the time period set forth below, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe), if any, which the Depositor on behalf of the Trust may be required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act or otherwise required by Regulation AB (collectively, “Reports”) with respect to the Trust. The names of such Reports and the dates on which they are required to be filed with the Commission are as follows: 

 

 (i)           Form 8-K, within the time requirement prescribed by the Exchange Act if the filing of Form 8-K is necessary; 

 

 (ii)           Form 10-K, within the time requirement prescribed by the Exchange Act; and 

 

 (iii)          such other reports as may be required pursuant to Section 13 or 15(d) of the Exchange Act or otherwise as required by Regulation AB. 

 

 (b)           deliver to the Trustee, within 15 calendar days after the Depositor is required to file the same with the Commission, such additional information, documents and reports with respect to compliance by the Depositor with the conditions and covenants of this Agreement, if any, as may be required to be filed with the Commission from time to time by such rules and regulations; 

 

 (c)           deliver to the Trustee, which shall then transmit by mail to all  Certificateholders described in TIA Section 313(c), in the manner and to the extent provided therein, such summaries of any information, documents and reports required to be filed by the Depositor and received pursuant to clauses (a) and (b) of this Section 6.06, if any, as may be required by rules and regulations prescribed from time to time by the Commission; 

 

 

  

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 (d)           prepare, sign and file with the Commission, if necessary appropriate or advisable, a Form 8-A under the Exchange Act; and 

 

 (e)           prepare and deliver to the Certificates Agents and other dealers such number of copies of the prospectus relating to the offer and sale of the Certificates as is reasonably requested by them and required to be delivered to purchasers of the Certificates under the Securities Act. 

 

 Section 6.07                           Preferential Collection of Claims Against Depositor.  The Trustee shall comply with TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent required by TIA Section 311(a). 

 

 

 ARTICLE VII 

 RIGHTS OF CERTIFICATEHOLDERS 

 

 Section 7.01                           Voting Rights with Respect to Underlying CDs. 

 

 (a)           Within five Business Days after receipt of notice of any meeting of, or other occasion for the exercise of voting rights or the giving of consents or waivers, or the acceptance of a tender offer, by, registered holders of any of the Underlying CDs, the Trustee shall give notice to the Certificateholders setting forth (i) a Record Date established therefor by the Trustee, (ii) such information as is contained in such notice to registered holders of such Underlying CDs, (iii) a statement that the Certificateholders as of such record date will be entitled, subject to any applicable provision of law and any applicable terms of such Underlying CDs, to direct the Trustee as to the exercise of voting rights or giving of consents or waivers or the acceptance of a tender offer, if any, that the Trustee, as the registered holder of such Underlying CDs, is entitled to exercise or give or accept, as the case may be, and (iv) a statement as to the manner in which instructions may be given to the Trustee. 

 

 (b)           The voting, consent or waiver or tender rights allocable to the registered holders of Underlying CDs pursuant to the terms thereof will be allocated among the Certificateholders on a pro rata basis (based on their respective Fractional Undivided Interests) as of a record date established therefor by the Trustee, and upon the written direction of the Certificateholders, received on or before the record date established by the Trustee for such purpose, the Trustee shall, insofar as practicable and permitted under any applicable provision of law and any applicable provision of the related Underlying CDs, vote and/or tender the principal amount of Underlying CDs that coincides with each such Certificateholder's Certificate Principal Balance in accordance with any nondiscretionary instruction set forth in the written direction of each such Certificateholder; provided, however, that neither the Trustee, in its capacity as such under this Agreement (subject to the provisions of 7.02), nor any Certificateholder may (subject to the provisions of 7.02) take any action that would affect the conditions under which Underlying CDs may be removed from Trust Property. 

 

 (c)           In the absence of any written direction from the Certificateholders in accordance with Section 7.02, the Trustee shall not exercise any voting, consent or waiver rights with respect to the Underlying CDs. 

 

  

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 (d)           The Trustee shall endeavor to notify Certificateholders of such rights or discretionary actions or of the date or dates by when such rights must be exercised or such action must be taken provided that the Trustee has received, with respect to Underlying CDs issued in the United States, from the related Underlying Issuer timely notice of such rights or discretionary corporate action or of the date or dates such rights must be exercised or such action must be taken. If the Trustee shall not actually receive such notice, the Trustee shall have no liability for failing to so notify Certificateholders. 

 

 Section 7.02                           Direction of Remedies.  The holders of a majority in aggregate Certificate Principal Balance of the Outstanding Certificates shall have the right to direct any Proceeding for any remedy in respect of any Underlying CD available to the Trustee as the registered holder of such Underlying CD.  Holders of a majority in aggregate Certificate Principal Balance of the Outstanding Certificates also have the right to direct the Trustee to direct any Proceeding for any remedy available to the applicable trustee of the Underlying CD Agreement under which any Underlying CD is issued. 

 

 Notwithstanding anything to the contrary contained herein, upon request of any Certificateholder, the Trustee, on behalf of such Certificateholder, shall enforce any of the Trustee's rights under U.S. federal or State securities laws as the purchaser of Underlying CDs from the related Underlying Issuers and shall promptly notify the Certificateholders that it has received such a request and is pursuing such enforcement. 

 

 Section 7.03                           Meetings of Certificateholders.  Certificateholders may exercise any voting right, give any consent or direct the Trustee at a separate meeting of Certificateholders convened for that purpose or by written consent. The Trustee will mail to each Certificateholder a notice of any meeting at which the Certificateholders are entitled to vote or consent or notice of any matter upon which action by written consent of those Certificateholders is to be taken. Each such notice will include a statement setting forth the following information: 

 

 (i)           the date of the meeting or the date by which the action is to be taken; and 

 

 (ii)           a description of any resolution proposed for adoption at the meeting on which the Certificateholders are entitled to vote or consent or of the matter upon which written consent is sought. 

 

 

 ARTICLE VIII 

 CONCERNING THE TRUSTEE AND THE DELAWARE TRUSTEE 

 

 Section 8.01                           Duties of Trustee. 

 

 (a)           The Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Agreement. Any permissive right of the Trustee enumerated in this Agreement shall not be construed as a duty. 

 

  

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 (b)           The Trustee, upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments furnished to the Trustee which are specifically required to be furnished pursuant to any provision of this Agreement, shall examine them to determine whether they conform to the requirements of this Agreement. If any such instrument is found not to conform to the requirements of this Agreement, the Trustee shall inform the Person delivering such instrument and request that the instrument be corrected, and if the instrument is not corrected to the Trustee's satisfaction, the Trustee will provide notice thereof to the Depositor and the Certificateholders. 

 

 (c)           No provision of this Agreement shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act or its own misconduct; provided, however, that: 

 

 (i)           the duties and obligations of the Trustee shall be determined solely by the express terms of this Agreement, the Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Agreement, no implied covenants or obligations (except for any applicable fiduciary duty under Delaware law to the beneficiaries of the Trust) shall be read into this Agreement against the Trustee and, in the absence of bad faith or willful misconduct on the part of the Trustee, the Trustee may conclusively rely upon any certificates or opinions furnished to the Trustee as to the truth and correctness of any statements contained therein; 

 

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

 

 (iii)           except with respect to actions or duties required to be taken or performed, as applicable, by the Trustee under the express terms of this Agreement, the Trustee shall not be required to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties or in the exercise of any of its rights or powers under this Agreement if there is reasonable ground for believing that the repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it; 

 

 (iv)           in the event that a Paying Agent or the Certificate Registrar shall fail to perform any obligation, duty or agreement in the manner or on the day required to be performed by such Paying Agent or Certificate Registrar, as the case may be, under this Agreement, the Trustee shall be obligated promptly upon knowledge of a Responsible Officer thereof to perform such obligation, duty or agreement in the manner so required; and 

 

 (v)           the Trustee shall not be personally liable for any indirect, special or consequential damages, or for loss of business or lost profits, regardless of the form of action and even if the same were foreseeable. 

 

 Section 8.02                           Certain Matters Affecting the Trustee. 

 

 (a)           Except as otherwise provided in Section 8.01: 

 

  

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 (i)           the Trustee may request and conclusively rely upon and shall be protected in acting or refraining from acting upon any resolution, Officers' Certificate, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document reasonably believed by it to be genuine and to have been signed by the proper party or parties; 

 

 (ii)           the Trustee may consult with counsel of its selection and, in connection with the preparation of the Trust's tax returns, accountants, and any advice or Opinion of Counsel or advice given by such tax return prepared by accountants shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by the Trustee under this Agreement in good faith and in accordance with such advice or Opinion of Counsel or the filing of any tax return; 

 

 (iii)           except for the duties and obligations of the Trustee expressly created by this Agreement, the Trustee shall be under no obligation to exercise any of the trusts or powers vested in it by this Agreement or to institute, conduct or defend any Proceeding hereunder or in relation thereto, at the request, order or direction of any of the Certificateholders pursuant to the terms of this Agreement unless such Certificateholders or the Depositor shall have offered to the Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities which may be incurred therein or thereby; 

 

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

 

 (v)           the Trustee shall not be bound to make any investigation into the facts of matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, approval, bond or other paper or document believed by it to be genuine; 

 

 (vi)           the Trustee may execute any of the trusts or powers or perform any duties under this Agreement either directly or by or through agents, attorneys, accountants or custodians and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent, attorney accountants or custodian appointed with due care by it hereunder; 

 

 (vii)           the Trustee shall not be personally liable for any loss, fee, tax or other charge  resulting from the investment or reinvestment of funds or for any liquidation of an investment held in any Certificate Account pursuant to Sections 3.05 and 3.06; 

 

 (viii)           the Trustee shall not be deemed to have notice or actual knowledge of any matter, unless (A) a Responsible Officer assigned to and working in the Corporate Trust Office has actual knowledge thereof or (B) written notice thereof is received by the Trustee at the Corporate Trust Office; 

 

 (ix)           the Trustee shall not be personally liable for its failure to act or delay in acting by reason of circumstances beyond its reasonable control, including without limitation, acts of God, acts of war or terrorism, earthquakes, fires, floods, civil or military disturbances, sabotage, epidemics, riots, interruptions, loss or malfunctions of utilities, computer (hardware or software) or communications services; 

 

  

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 (x)           the Trustee shall not be personally liable for any acts or omissions of the Depositary or the U.S. Federal Reserve Banks or any malfunction in connection with the book-entry system of the Depositary or the U.S. Federal Reserve Banks; 

 

 (xi)           the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed by the Trustee to act hereunder; and 

 

 (xii)           the Trustee may request that the Depositor deliver an Officers’ Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Agreement, which Officers’ Certificate may be signed by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded. 

 

 (b)           Upon any application or request by the Depositor to the Trustee to take any action under the provisions of this Agreement, which action is subject to the satisfaction of a condition precedent (including any covenants compliance with which constitutes a condition precedent), the Depositor shall furnish to the Trustee:  (i) an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Agreement relating to the proposed action have been complied with, (ii) an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with and (iii) (if required by the TIA) an Independent Certificate from a firm of certified public accountants meeting the applicable requirements of the TIA, except that, in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Agreement, no additional certificate or opinion need be furnished.  Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Agreement shall include: 

 

 (i)           a statement that such signatory of such certificate or opinion has read or has caused to be read such covenant or condition and the definitions herein relating thereto; 

 

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

 

 (iii)           a statement that, in the judgment of each such signatory, such signatory has made such examination or investigations as is necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition has been complied with; and 

 

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

 

 (c)           The Trustee shall have the legal power to exercise all of the rights, powers and privileges of holders of the Underlying Securities in which the Certificates evidence an interest.  However, neither the Trustee (except as specifically provided herein or in the TIA) nor the Depositor shall be under any obligation whatsoever to appear in, prosecute or defend any action, suit or other proceeding in respect of Underlying Securities or Certificates. 

 

  

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 (d)           All rights of action under this Agreement or under any of the Certificates, enforceable by the Trustee, may be enforced by it without the possession of any of the Certificates, or the production thereof at the trial or other Proceeding relating thereto, and any Proceeding instituted by the Trustee shall be brought in its name for the benefit of all the Certificateholders, subject to the terms of this Agreement. 

 

 Section 8.03                           Limitation on Liability of Trustee.  The Trustee assumes no responsibility for the correctness of the recitals contained in this Agreement, the Certificates or any document issued in connection with the sale of the Certificates (other than its signature and authentication on the Certificates in its capacity as Authentication Agent). The sole obligor with respect to any Underlying CD is the related Underlying Issuer. Except as set forth in Section 8.12, the Trustee makes no representations or warranties as to the validity or sufficiency of this Agreement, the Certificates (other than its signature and authentication on the Certificates), any Underlying CD or any related document. The Trustee shall not be accountable for the use or application by the Depositor of any of the Certificates or of the proceeds of such Certificates, or for the use or application of any funds paid to the Depositor in respect of the Underlying CDs. The Certificates do not represent interests in or obligations of the Trustee, and the Trustee shall not be responsible or accountable for any tax, accounting or other treatment proposed to be applied to the Certificates or any interest therein. 

 

 Section 8.04                           Trustee May Own Certificates.  The Trustee, in its individual capacity or in any other capacity, may become the owner or pledgee of Certificates with the same rights it would have if it were not Trustee. 

 

 Section 8.05                           Trustee Fees and Expenses; Limited Indemnification; Reserve Account. 

 

 (a)           As compensation for its services required hereunder and in payment of its expenses (including the fees and disbursements of its counsel) incurred in connection with the performance of such services, the Trustee shall be entitled to reimbursement for all reasonable expenses and disbursements on each Regular Distribution Date (the “Trustee Fees”), which amount shall be payable solely from funds on deposit in the Reserve Account. If there are any remaining actual unpaid Trust Expenses after applying such funds in the Reserve Account, the Depositor will be responsible for paying such unpaid expenses on the next succeeding Regular Distribution Date [(i) directly or (ii) indirectly by depositing sufficient funds in the Reserve Account to pay such unpaid expenses]. 

 

  

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 (b)           The Trustee and any director, officer, employee or agent of the Trustee shall be indemnified by the Depositor and held harmless against any loss, liability or expense incurred in connection with this Agreement or the Certificates or the performance of any of the Trustee's duties under this Agreement, other than any loss, liability or expense (i) that constitutes a specific liability of the Trustee under this Agreement or (ii) incurred by reason of willful misconduct, bad faith or gross negligence in the performance of the Trustee's duties hereunder or as a result of reckless disregard of the Trustee's obligations and duties hereunder (such loss, liability or expense, other than as described in clauses (i) and (ii) of this sentence, “Extraordinary Trust Expense”); provided, however, that with respect to any such Proceeding, (1) the Trustee shall have given the Depositor notice thereof promptly after the Trustee shall have knowledge thereof, (2) while maintaining control over its own defense in any such Proceeding, the Trustee shall consult with the Depositor in preparing such defense, and (3) if any Person ever alleges such willful misconduct, bad faith or gross negligence by the Trustee, the indemnification provided for in this Section 8.05(b) shall nonetheless be paid upon demand, subject to later adjustment or reimbursement, until such time as a court of competent jurisdiction enters a final judgment as to the extent and effect of the alleged willful misconduct, bad faith or gross negligence. In the event the Trustee is not indemnified by the Depositor in accordance with this Section 8.05(b), the Trustee shall nevertheless remain obligated to perform its duties under this Agreement (but the Trustee shall not be required to pay any out-of-pocket expenses). 

 

 (c)           The Trustee and the Depositor expressly acknowledge that the limited obligations of the Depositor to indemnify the Trustee pursuant to Section 8.05(b) do not extend to amounts attributable to compensation for services or payment of expenses of the Trustee, which amounts are payable in full in accordance with Section 8.05(a). 

 

 (d)           On the Closing Date, the Trustee shall establish a Reserve Account. Funds, if any, on deposit in the Reserve Account shall be (x) held separate and apart from, and shall not be commingled with, any other moneys, including, without limitation, any moneys held by the Trustee pursuant to this Agreement, (y) invested by the Trustee as directed in writing by the Depositor in Eligible Investments (or invested in the Eligible Investments specified in clause (2) of the definition thereof in the event that the Depositor does not provide direction and (z) deposited and withdrawn in accordance with the provisions of Section 8.05(a). The Certificates shall evidence ownership of the Reserve Account for U.S. federal income tax purposes and the Reserve Account will not be treated as an asset of the Trust for any purpose. In the event that all actual Trust Expenses are paid in full upon the final distribution to Certificateholders of all amounts due in respect of the Underlying CDs, all funds on deposit in the Reserve Account shall be distributed to the Certificateholders on a pro rata basis. 

 

 Section 8.06                           Eligibility Requirements for Trustee. 

 

 (a)           The Trustee shall at all times satisfy the requirements of TIA Section 310(a) and Section (a)(4)(i) of Rule 3a-7 under the Investment Company Act. The Trustee hereunder shall at all times be a corporation or association which is not an Affiliate of the Depositor (but may have normal banking relationships with the Depositor or any obligor with respect to the Underlying CDs and their respective Affiliates) organized and doing business under the laws of any State or the United States, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $200,000,000 (or is a wholly-owned subsidiary of a bank holding company having a consolidated capital and surplus of at least $200,000,000) and subject to supervision or examination by U.S. federal or State banking authorities, and the long-term debt obligations of which are rated in one of the four highest categories assigned long-term debt obligations by each of the Rating Agencies. If such corporation or association publishes reports of conditions at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then the combined capital and surplus of such corporation or association shall be deemed to be its combined capital and surplus as set forth in its most recent report of conditions so published. In the event that at any time the Trustee shall cease to be eligible in accordance with the terms of this Section 8.06, the Trustee shall resign immediately in the manner and with the effect specified in Section 8.07. 

 

  

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 (b)           The Trustee shall comply with Section 310(b) of the TIA; provided, however, that there shall be excluded from the operation of TIA Section 310(b)(1) other outstanding debt securities of the Underlying Issuer if the requirements for such exclusion set forth in TIA Section 310(b)(1) are met. 

 

 Section 8.07                           Resignation or Removal of the Trustee and the Delaware Trustee. 

 

 (a)           Subject to the last sentence of this Section 8.07(a), each of the Trustee or the Delaware Trustee may at any time resign and be discharged from their respective obligations and duties hereunder by giving written notice thereof to the Depositor and to all Certificateholders. Upon receiving such notice of resignation, the Depositor shall as promptly as possible (and in any event within 45 calendar days after the date of such notice of resignation) appoint a successor Trustee or Successor Delaware Trustee (as defined below) by written instrument, in duplicate, which instrument shall be delivered to the resigning Trustee and to the successor Trustee or Successor Delaware Trustee. A copy of such instrument shall be delivered to the Certificateholders by the Depositor. If no such successor Trustee or Successor Delaware Trustee shall have been so appointed and have accepted appointment within 45 calendar days after the giving of such notice of resignation, the resigning Trustee or the Delaware Trustee may petition, at the expense of the Depositor, any court of competent jurisdiction for the appointment of a successor Trustee for the Certificates. 

 

 (b)           If at any time the Trustee or the Delaware Trustee shall cease to be eligible in accordance with the terms of Sections 8.06 and 8.14, respectively and shall fail to resign after written request therefor by the Depositor, or if at any time the Trustee or the Delaware Trustee shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or a receiver of the Trustee or the Delaware Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or the Delaware Trustee or of their respective property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Depositor may remove the Trustee or the Delaware Trustee and appoint a successor Trustee or Successor Delaware Trustee by written instrument, in duplicate, which instrument shall be delivered to the Trustee or the Delaware Trustee so removed and to the successor Trustee or Successor Delaware Trustee. A copy of such instrument shall be delivered to the Certificateholders by the Depositor. 

 

 (c)           Any resignation or removal of the Trustee or the Delaware Trustee and appointment of a successor Trustee or Successor Delaware Trustee pursuant to any of the terms of this Section 8.07 shall not become effective until acceptance of appointment by the successor Trustee or Successor Delaware Trustee as provided in Section 8.08. 

 

 Section 8.08                           Successor Trustee and Successor Delaware Trustee. 

 

  

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 (a)           Any successor Trustee appointed as provided in Section 8.07 shall execute, acknowledge and deliver to the Depositor and its predecessor Trustee an instrument accepting such appointment under this Agreement, and thereupon the resignation or removal of the predecessor Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of the predecessor Trustee under this Agreement, with the like effect as if originally named as Trustee in this Agreement. The predecessor Trustee, upon payment of all amounts owed to it hereunder, shall deliver to the successor Trustee all documents and statements held by it under this Agreement, and the Depositor and the predecessor Trustee shall execute and deliver such instruments and do such other things as may reasonably be required for more fully and certainly vesting and confirming in the successor Trustee all such rights, powers, duties and obligations. No successor Trustee shall accept appointment as provided in this Section 8.08 unless at the time of such acceptance such successor Trustee shall be eligible under the terms of Section 8.06. 

 

 (b)           Upon acceptance of appointment by a successor Trustee as provided in this Section 8.08, the Depositor shall transmit notice of the succession of such Trustee under this Agreement to all Certificateholders. 

 

 (c)           The Delaware Trustee shall not be removed until a successor Trustee possessing the qualifications to act as Delaware Trustee under Section 8.14 and 8.16 (a “Successor Delaware Trustee”) has been appointed and has accepted such appointment by written instrument executed by such Successor Delaware Trustee and delivered to the Trustees and the Depositor. 

 

 Section 8.09                           Merger or Consolidation of Trustee.  Any corporation or association into which the Trustee or the Delaware Trustee may be merged or converted or with which it may be consolidated or any corporation or association resulting from any merger, conversion or consolidation to which the Trustee or the Delaware Trustee shall be a party, or any corporation or association succeeding to all or substantially all the corporate trust business of the Trustee or the Delaware Trustee, shall be the successor of the Trustee or the Delaware Trustee, respectively under this Agreement, provided, that such corporation or association shall be eligible under the terms of Section 8.06 or 8.14, as the case may be, without the execution or filing of any paper or any further act on the part of any of the parties to this Agreement, anything in this Agreement to the contrary notwithstanding. 

 

 Section 8.10                           Appointment of Co-Trustee. 

 

 (a)           Notwithstanding any other terms of this Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any party of the Trust Property may at the time be located, the Depositor and the Trustee acting jointly shall have the power and shall execute and deliver all instruments to appoint one or more Persons approved by the Trustee to act as co-Trustee or co-Trustees, jointly with the Trustee, of all or any part of the Trust Property, and to vest in such Person or Persons, in such capacity, such title to the Trust Property, or any part thereof, and, subject to the other terms of this Section 8.10, such powers, duties, obligations, rights and trusts as the Depositor and the Trustee may consider necessary or desirable. If the Depositor shall not have joined in such appointment within 30 calendar days after the receipt by it of a request so to do, the Trustee alone shall have the power to make such appointment. No co-Trustee under this Agreement shall be required to meet the terms of eligibility as a successor Trustee under Section 8.06, and no notice to Certificateholders of the appointment of a co-Trustee or co-Trustees shall be required under Section 8.08. 

 

  

 43 

  

 

 (b)           In the case of any appointment of a co-Trustee pursuant to this Section 8.10, all rights, powers, duties and obligations conferred or imposed upon the Trustee shall be conferred or imposed upon and exercised or performed by the Trustee and such co-Trustee jointly, except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed by the Trustee, the 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 such Trust Property or any portion thereof in any such jurisdiction) shall be exercised and performed by such co-Trustee at the direction of the Trustee. 

 

 (c)           Any notice, request or other writing given to the Trustee shall be deemed to have been given to each of the co-Trustees, as effectively as if given to each of them. Every instrument appointment any co-Trustee shall refer to this Agreement and the conditions of this Article VIII. Each co-Trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, jointly with the Trustee subject to all the terms of this Agreement, specifically including every provision of this Agreement relating to the conduct of, affecting the liability of, or affording protection to, the Trustee. Every such instrument shall be filed with the Trustee. 

 

 (d)           Any co-Trustee may, at any time, constitute the 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 co-Trustee shall die, become incapable of acting, resign or be removed, all its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Trustee, to the extent permitted by law, without the appointment of a new or successor Trustee. 

 

 (e)           No Trustee hereunder shall be personally liable by reason of any act or omission of any other Trustee hereunder. 

 

 Section 8.11                           Presentment and Surrender at Corporate Trust Office.  The Certificates may be surrendered for registration of transfer or exchange, and presented and surrendered on the Final Scheduled Distribution Date, on a Special Distribution Date resulting from the optional redemption of Underlying CDs or upon an event requiring removal of any Underlying CDs from the Trust Property, and notices and demands to or upon the Trustee in respect of the Certificates and this Agreement may be served, at the designated office of the Trustee. 

 

 Section 8.12                           Representations and Warranties of Trustee. 

 

 (a)           The Trustee represents and warrants that: 

 

 (i)           the Trustee is a national association duly organized, validly existing and in good standing under the laws of the United States. 

 

 (ii)           the Trustee has full power, authority and right to execute, authenticate, deliver and perform its duties and obligations under this Agreement and the Certificates and has taken all necessary action to authorize the execution, authentication, delivery and performance by it (or, with respect to the Certificates, by an Authenticating Agent on its behalf, if applicable) of this Agreement and the Certificates; 

 

  

 44 

  

 

 (iii)           the execution, authentication and delivery of this Agreement and the Certificates by the Trustee and its performance of and compliance with the terms of this Agreement and the Certificates will not violate the Trustee's charter or by-laws or constitute a default under, or result in the breach or acceleration of, any contract, agreement or other instrument to which the Trustee is a party or which may be applicable to the Trustee or any of its assets; and 

 

 (iv)           as of the Closing Date, each of this Agreement and the Certificates has been duly executed, authenticated and delivered by the Trustee (or, with respect to the Certificates, by an Authenticating Agent on its behalf, if applicable), and this Agreement constitutes the valid and legally binding obligation of the Trustee, enforceable in accordance with its terms, except as enforcement may be limited by the applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally or by general principles of equity. 

 

 (b)           Within 30 calendar days of the discovery by the Trustee of a breach of any of its representations or warranties set forth in this Section 8.12, the Trustee shall take commercially reasonable efforts to cure such breach. 

 

 Section 8.13                           Limitation of Powers and Duties.  The Trust is constituted solely for the purposes of acquiring and holding the Underlying CDs, issuing the Certificates and engaging in activities necessary, advisable or incidental to the foregoing. The Trust may not incur any additional debt other than debt that does not constitute a claim against the Trust Property. The Trustee is not authorized to acquire any other investments or engage in any activities not authorized in this Agreement and, in particular, subject to the Trustee’s obligation to perform all acts required of it by this Agreement, the Trustee is not authorized (i) to Transfer any of the Underlying CDs or interests therein to any Person except as contemplated in Section 3.08 or 3.09 or (ii) to do anything that would cause the Trust to (1) be required to be registered under the Investment Company Act or (2) cause the Trust to be taxed as a corporation or a publicly traded partnership taxable as a corporation or otherwise alter the classification of the Trust for U.S. Federal income tax purposes. 

 

 Section 8.14                           Delaware Trustee. 

 

 (a)           The Delaware Trustee is appointed to serve as the trustee of the Trust in the State of Delaware for the sole purpose of satisfying the requirement of Section 3807(a) of the Act that the Trust have at least one trustee with a principal place of business in the State of Delaware.  It is understood and agreed by the parties hereto that the Delaware Trustee shall have none of the duties or liabilities of the other Trustee. 

 

 (b)           The duties of the Delaware Trustee shall be limited to (i) accepting legal process served on the Trust in the State of Delaware and (ii) the execution of any certificates required to be filed with the Delaware Secretary of State which the Delaware Trustee is required to execute under Section 3811 of the Act.  To the extent that, at law or in equity, the Delaware Trustee has duties (including fiduciary duties) and liabilities relating thereto to the Trust or the Certificateholders, it is hereby understood and agreed by the other parties hereto that such duties and liabilities are replaced by the duties and liabilities of the Delaware Trustee expressly set forth in this Agreement.  The Delaware Trustee shall have no liability for the acts or omissions of the other Trustee. 

 

  

 45 

  

 

 (c)           The Delaware Trustee shall be entitled to all of the same rights, protections indemnities and immunities under this Agreement and with respect to the Trust as the other Trustee.  No amendment or waiver of any provision of this Agreement which adversely affects the Delaware Trustee shall be effective against it without its prior written consent. 

 

 Section 8.15                           Qualifications of Delaware Trustee.  If required by the Business Act, the Delaware Trustee shall be: 

 

 (a)           a natural person who is a resident of the State of Delaware; or 

 

 (b)           if not a natural person, an entity which has its principal place of business in the State of Delaware, and otherwise meets the requirements of applicable law; 

 

 provided that, if the Trustee has its principal place of business in the State of Delaware and otherwise meets the requirements of applicable law, then the Trustee shall also be the Delaware Trustee and Section 8.14 shall have no application. 

 

 Section 8.16                           Representations and Warranties of Delaware Trustee.  The Delaware Trustee represents and warrants to the Trust and to the Depositor as of the date hereof, and each Successor Delaware Trustee represents and warrants to the Trust and the Depositor at the time of the Successor Delaware Trustee’s acceptance of its appointment as Delaware Trustee, that: 

 

 (a)           the Delaware Trustee is duly organized, validly existing and in good standing under the laws of the State of Delaware or the laws of the United States, with trust powers and the authority to execute and deliver, and to carry out and perform its obligations under the terms of, this Trust Agreement; 

 

 (b)           the Delaware Trustee has been authorized to perform its obligations under the Certificate of Trust and the Trust Agreement.  The Trust Agreement under Delaware law constitutes a legal, valid and binding obligation of the Delaware Trustee, enforceable against it in accordance with its terms, subject to applicable bankruptcy, reorganization, moratorium, insolvency, and other similar laws affecting creditors’ rights generally and to general principles of equity and the discretion of the court (regardless of whether the enforcement of such remedies is considered in a proceeding in equity or at law); 

 

 (c)           no consent, approval or authorization of, or registration with or notice to, any federal banking authority is required for the execution, delivery or performance by the Delaware Trustee of this Trust Agreement; and 

 

 (d)           the Delaware Trustee is an entity which has its principal place of business in the State of Delaware. 

 

 Section 8.17                           Certain Qualifications of Delaware Trustee Generally.  The Delaware Trustee (unless the Trustee also acts as Delaware Trustee) shall either be a natural person who is at least 21 years of age or a legal entity that shall act through one or more Officers. 

 

  

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 ARTICLE IX 

 TERMINATION 

 

 Section 9.01                           Termination of the Trust. 

 

 (a)           The Trust shall dissolve upon the earlier of the receipt by the Trust of all amounts required to be paid by the Underlying Issuers of their respective Underlying CDs then constituting a part of the Trust Property or [date][45 years from the date of this Agreement]. 

 

 (b)           Upon the dissolution of the Trust, (i) the Trust shall carry on no business except for the purpose of winding up its affairs, including the obligations of the Trustee on behalf of the Trust to provide reports and other information under this Agreement and to make distributions to Certificateholders as herein set forth and (ii) the Trustee shall proceed to wind up the affairs of the Trust and shall continue, under this Agreement, to have the powers to fulfill or discharge the Trust’s contracts, collect its assets, discharge or pay its liabilities and do all other acts appropriate to liquidate its business. 

 

 (c)           Written notice of any termination shall be provided to each Certificateholder and the Depositor within ten Business Days of such termination, unless such termination occurs on the Final Scheduled Distribution Date. 

 

 (d)           On the Final Scheduled Distribution Date, unless none of the Certificates are then Outstanding, the Trustee shall distribute to each Certificateholder presenting and surrendering its Certificates, the amount distributable on the Final Scheduled Distribution Date pursuant to Section 4.01 in respect of the Certificates so presented and surrendered. Any funds not distributed on the Final Scheduled Distribution Date shall be set aside and held in trust by the Trustee for the benefit of Certificateholders that fail to present and surrender their Certificates on the Final Scheduled Distribution Date and shall be disposed of upon such presentation and surrender, subject to Sections 4.01 and 5.09. Immediately following the deposit of such funds in trust hereunder, the Trustee shall execute and file with the Secretary of State of the State of Delaware a certificate of cancellation under the Act, and thereupon the Trustee shall be discharged from all liabilities and duties hereunder, the rights and interests of all Certificateholders shall cease and the Trust shall terminate. 

 

 

 ARTICLE X 

 MISCELLANEOUS TERMS 

 

 Section 10.01                          Trust Indenture Act; Conflict with Trust Indenture Act. 

 

 (a)           This Trust Agreement is subject to the provisions of the TIA that are required to be part of this Trust Agreement and shall, to the extent applicable, be governed by such provisions. 

 

  

 47 

  

 

 (b)           The Trustee shall be the only Trustee which is the trustee for the purpose of the TIA. 

 

 (c)           If any provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included in this Trust Agreement by any of the provisions of the TIA, such required provision shall control.  If any provision of this Trust Agreement modifies or excludes any provision of the TIA which may be so modified or excluded, the latter provision shall be deemed to apply to this Trust Agreement as so modified or excluded, as the case may be. 

 

 (d)           The application of the TIA to this Trust Agreement shall not affect the nature of the Certificates as equity securities representing undivided beneficial interests in the assets of the Trust. 

 

 Section 10.02                          Amendment of this Agreement. 

 

 (a)           This Agreement may be amended from time to time by the Depositor, the Trustee and the Delaware Trustee without the consent of any of the Certificateholders for any of the following purposes: (i) to cure any ambiguity or to correct or supplement any provision in this Agreement which may be defective or inconsistent with any other provision in this Agreement; (ii) to add to the covenants, restrictions or obligations of the Depositor for the benefit of the Certificateholders, (iii) to comply with any requirements imposed by the Code; (iv) to amend or waive the terms of Section 8.05(b) in any manner which shall not adversely affect the Certificateholders in any material respect; (v) to evidence and provide for the acceptance of appointment under this Agreement by a successor Trustee or Successor Delaware Trustee or (vi) to correct or supplement any provision in this Agreement which is inconsistent with any other provision hereunder. 

 

 (b)           This Agreement may also be amended from time to time by the Depositor, the Trustee and the Delaware Trustee with the consent of Certificateholders representing a majority of the aggregate Certificate Principal Balances of the Outstanding Certificates on the date of such determination as of the date of such amendment 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 Certificateholders; provided, however, that, the consent of 100% of the aggregate Certificate Principal Balances of all Outstanding Certificates on the date of such determination shall be required in the event any such amendment would (i) reduce in any manner the amount, delay the timing or otherwise alter the pass-through nature of payments received on Underlying CDs that are required to be distributed on any Certificate, (ii) reduce the Certificate Principal Balance of the Certificates except upon payment on the Final Scheduled Distribution Date or upon the occurrence of a Removal Event or Wind-up Event, an event requiring removal of any Underlying CDs from the Trust Property pursuant to Section 3.10 or the optional redemption of Underlying CDs, or (iii) reduce the aforesaid required percentages required for the consent to any amendment with the consent of the Certificateholders. 

 

  

 48 

  

 

 (c)           Notwithstanding the foregoing, no amendment of this Agreement pursuant to Section 10.02(a) or (b) hereof shall be permitted that would (1) require the Trust to be registered under the Investment Company Act, (2) cause the Trust to be taxed as an association or publicly traded partnership taxable as a corporation or otherwise alter the classification of the Trust for U.S. Federal income tax purposes, (3) result in a sale or exchange of any Certificate for tax purposes, (4) change or add any Removal Events or Wind-up Events or any conditions under which any Underlying CDs are required to be removed from the Trust Property, (5) substitute Underlying CDs of an Underlying Issuer for debt securities of another issuer or (6) modify the provisions of this Agreement in a manner that would permit the Trustee, in its capacity as such under this Agreement, or the Certificateholders to declare or waive an event of default in respect of the Underlying CDs. 

 

 (d)           Promptly after the execution of any amendment under this Section 10.02, the Trustee shall furnish a copy of such amendment to each Certificateholder. 

 

 Section 10.03                          Counterparts.  This Agreement may be executed simultaneously in any number of counterparts, each of which counterparts shall be deemed to be an original, and such counterparts shall constitute but one and the same instrument. 

 

 Section 10.04                          Limitation on Rights of Certificateholders. 

 

 (a)           The death or incapacity of any Certificateholder shall not (1) operate to terminate this Agreement or the Trust Property, (2) entitle such Certificateholder's legal representatives or heirs to claim an accounting or to take any Proceeding in any court for a partition or winding up of the Trust Property or (3) otherwise affect the rights, obligations and liabilities of the parties thereto or any of them. 

 

 (b)           Except as otherwise expressly provided herein, no Certificateholder shall have any right to control the operation and management of any Trust Property, or the obligations of the parties thereto, nor shall anything in this Agreement set forth, or contained in the terms of the Certificates, be construed so as to constitute the Certificateholders from time to time as partners or members of an association. In addition, no Certificateholder shall be under any liability to any third person by reason of any action taken by the parties to this Agreement pursuant to any provision thereof. 

 

 Section 10.05                          Governing Law; Non-exclusive Submission to Jurisdiction; Waiver of Jury Trial.  THIS AGREEMENT AND EACH CERTIFICATE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.  With respect to any Proceedings relating to or arising out of this Agreement, the Depositor, Trustee (including any Authentication Agent, Certificate Registrar and Paying Agent), Administrative Agent, the Delaware Trustee and each Certificateholder irrevocably submits to the non-exclusive jurisdiction of the courts of the State of New York and the United States District Court located in the Borough of Manhattan in New York City. Nothing in this Agreement precludes any such Person from bringing Proceedings in any other jurisdiction, nor will the bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction.  EACH OF THE DEPOSITOR AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE CERTIFICATES OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

 

  

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 Section 10.06                          Notices.  All directions, demands and notices under this Agreement shall be in writing (which may include a facsimile transmission) and shall be delivered to the Trustee at 1 Federal Street, 3rd Floor, Boston, MA 02110, Attention: Maryellen Hunter, to the Delaware Trustee at 300 Delaware Avenue, 9th Floor, Wilmington, DE 19801, Attention: Corporate Trust, and to the Administrative Agent at 200 South Wacker Drive, Suite 3700, Chicago, IL 60606. Any notice required to be given to a Certificateholder will be sent by first class mail, postage prepaid, to the last address of such Certificateholder set forth in the Certificate Register or will be given by facsimile to such number as may be provided to the Trustee and the Administrative Agent. Any notice so mailed within the time prescribed in this Agreement shall be conclusively presumed to have been duly given when mailed, whether or not the Certificateholder receives such notice. Notices given by facsimile will be effective upon confirmation (including electronic confirmation) of effective transmission. 

 

 Section 10.07                          Severability of Terms.  If any one or more of the covenants, agreements or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements or terms shall be deemed severable from the remaining covenants, agreements or terms of this Agreement and shall in no way affect the validity or enforceability of the other terms of this Agreement or of the Certificates or the rights of the Certificateholders. 

 

 Section 10.08                          Notice to Rating Agencies.  The Trustee shall use its best efforts promptly to provide notice to the Rating Agencies with respect to each of the following events as to which it has actual knowledge: 

 

 (i)           any material change or amendment to this Agreement; 

 

 (ii)           the resignation or termination of the Trustee; 

 

 (iii)           any change in the location of the Certificate Account; 

 

 (iv)           any Removal Event; 

 

 (v)           any event requiring removal of any Underlying CD from the Trust Property in accordance with Section 3.12; 

 

 (vi)           any optional redemption of Underlying CDs; and 

 

 (vii)           the final distribution to Certificateholders. 

 

 In addition, the Trustee shall promptly make available on its website (currently located at usbank.com\abs) to the Rating Agencies (i) copies of each report to Certificateholders described in Section 4.02 and (ii) any other information with respect to the Certificates or the Trust Property reasonably requested by any Rating Agency in connection with maintaining the then current ratings of the Certificates. Any such notice pursuant to this Section 10.08 shall be in writing and shall be deemed to have been duly given if personally delivered, sent by facsimile or mailed by first class mail, postage prepaid, or by express delivery service to the Rating Agencies. 

 

  

 50 

  

 

 The Trustee shall not have any verbal discussions with or provide information to any Rating Agency regarding the transactions contemplated by this Indenture without prior notice to the Issuer to ensure compliance with Rule 17g-5 under the Exchange Act (“Rule 17g-5”) and the timely posting of information on any website maintained by the Issuer in order to comply with Rule 17g-5.  The Trustee agrees to provide all information or documents required to be delivered by it to each Rating Agency to the Issuer for posting on its Rule 17g-5 compliant website. 

 The Trustee makes this covenant as a matter of courtesy and accommodation only and shall not be liable to any Person for any failure to comply therewith. 

 

 Section 10.09                          No Recourse.  Each Holder, by its acceptance of a Certificate or a beneficial interest or participation therein, acknowledges that such Holder's Certificate represents a beneficial ownership interest in the assets of the Trust only and does not represent an interest in or obligation of the Depositor, the Trustee, any Affiliate of the Depositor or the Trustee or any other entity or any of their respective directors, managers, officers, employees or agents and no recourse may be had against such Persons or individuals or their respective assets, except as may be expressly set forth or contemplated in this Agreement or the Certificates, and each Holder's recourse is limited to the Trust Property secured hereby. The Trustee shall have no recourse to the Underlying CDs. 

 

 Section 10.10                          No Petition Covenant.  Notwithstanding any prior termination of this Agreement, the Trustee and each Certificateholder shall not, prior to the date which is one year and one day after the termination of this Agreement, acquiesce in, petition or otherwise invoke or cause the Trust or the Depositor to invoke the process of any court or governmental authority for the purpose of commencing or sustaining a case against the Trust or the Depositor under any U.S. federal or State bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Trust or the Depositor or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Trust or the Depositor. 

 

 Section 10.11                          Intention of Parties.  The parties hereto intend that the Trust be classified for U.S. federal income tax purposes as a grantor trust under Subpart E, Part I of Subchapter J of the Code and not as a trust or association taxable as a corporation or as a partnership. Each Certificateholder, by its acceptance of its Certificate or a beneficial interest or participation therein, agrees to treat the Trust as a grantor trust for all U.S. federal, State and local income tax purposes. The powers granted and obligations undertaken pursuant to this Agreement shall be so construed so as to further such intent. 

 

  

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 Section 10.12                          Force Majeure.  In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances. 

 

 [The remainder of this page is intentionally left blank] 

 

  

 52 

  

 

 IN WITNESS WHEREOF, the Depositor, the Trustee, the Delaware Trustee, and Securities Intermediary and the Administrative Agent have each caused this Agreement to be duly executed by its duly authorized representative as of the date first above written. 

 

 

	
 Incapital Trust Products II LLC, as Depositor 

	   
	   	   
	
 By: 

	    	   
	
 Name: Christopher O’Connor 

	   
	
 Title: Chief Executive Officer and Manager 

	   
	    	    	   
	   	   	   
	   	   	   
	
 U.S. Bank National Association, 

 as Trustee and Securities Intermediary 

	   
	   	   
	
 By: 

	    	   
	
 Name: 

	   
	
 Title: 

	   
	   	   
	   	   
	   	   
	
 U.S. Bank Trust National Association, 

 as Delaware Trustee 

	   
	   	   
	
 By: 

	    	   
	
 Name: 

	   
	
 Title: 

	   
	   	   
	   	   
	    	    	   
	
 INCAPITAL HOLDINGS LLC, 

 as Administrative Agent 

	   
	   	   
	
 By: 

	    	   
	
 Name: Phil Johnson 

	   
	
 Title: President 

	   

  

 

  

 

 SCHEDULE I 

 

 Underlying CD Schedule 

 

 

	

 Issuer 

 

	

 Coupon/ 

 Formula 

 

	

 Day-Count 

 Convention 

 

	

 Interest 

 Payment 

 Date(s) 

 

	

 Principal 

 Amount 

 ($MM) 

 

	

 % of 

 Aggregate 

 Principal 

 Amount 

 

	

 Maturity 

 Date 

 

	

 First 

 [Mandatory] 

 [Optional] 

 Redemption 

 Date 

 

	

 [Mandatory][ 

 Optional] 

 Redemption 

 Price 

 

  

 S-1 

  

 

 EXHIBIT A

 

 FORM OF CERTIFICATE

 

 [FACE OF CERTIFICATE] 

 

 EACH PERSON THAT PURCHASES A CERTIFICATE WILL BE DEEMED TO REPRESENT THAT ITS ACQUISITION OF SUCH CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION. IN ADDITION, IN THE EVENT THE CERTIFICATES DO NOT CONSTITUTE PUBLICLY OFFERED SECURITIES, EACH PERSON THAT PURCHASES THIS CERTIFICATE ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN THAT IS SUBJECT TO THE PROVISIONS OF SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, WILL BE DEEMED TO REPRESENT THAT EITHER (I) THE PLAN IS SO REPRESENTED IN THIS REGARD BY A QPAM OR INHAM (AS THOSE TERMS ARE DEFINED IN PROHIBITED TRANSACTION CLASS EXEMPTION (“PTE”) 84-14 AND PTE 96-23, RESPECTIVELY) AND WILL BE SO REPRESENTED FOR SO LONG AS SUCH PLAN HOLDS THIS CERTIFICATE, AND THAT THE OTHER CONDITIONS OF PTE 84-14 OR PTE 96-23 ARE AND WILL AT ALL TIMES BE SATISFIED, (II) THE CONDITIONS TO THE APPLICABILITY OF PTE 90-1, PTE 95-60 OR PTE 91-38 ARE AND WILL AT ALL TIMES BE SATISFIED OR (III) THE CONDITIONS OF ANOTHER APPLICABLE EXEMPTION ARE AND WILL AT ALL TIMES BE SATISFIED, SUCH THAT IN THE CASE OF EITHER (I), (II) OR (III), THE APPLICABLE EXEMPTION APPLIES TO THE PURCHASE, CONTINUED HOLDING AND DISPOSITION OF THIS CERTIFICATE, AS WELL AS TO THE UNDERLYING TRANSACTIONS OF THE TRUST REFERRED TO HEREIN. 

 

  

 A-1 

  

 

 [Include if this Certificate is a Global Certificate: 

 

 This Certificate is a Global Certificate within the meaning of the Trust Agreement hereinafter referred to and is registered in the name of the Depositary or a nominee of the Depositary. This Certificate is exchangeable for Certificates registered in the name of a Person other than the Depositary or its nominee only in the limited circumstances described in the Trust Agreement, and may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor.] 

 

 [Include if this Certificate is a Global Certificate and DTC is the Depositary: 

 

 Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trustee or its agent for registration of transfer, exchange or payment, and any certificate issued in exchange for this certificate or any portion hereof is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), any transfer, pledge or other use hereof for value or otherwise by or to any person is wrongful inasmuch as the registered owner hereof, Cede & Co., has an interest herein.] 

 

  

 A-2 

  

 

	
 CERTIFICATE 

	
 CERTIFICATE PRINCIPAL BALANCE: $_______ 

 No. ______ 

 CUSIP No.: 

 ISIN US: 

 Common Code No: 

 

 Incapital Trust Products II Trust __________ 

 CD Pass-Through Certificate 

 

 Issuance Date: 

 

 Final Scheduled Distribution Date: 

 

 Evidencing a Fractional Undivided Interest in 

 Incapital Trust Products II Trust __ 

 

 THIS CERTIFIES THAT _______________, for value received, is the registered owner (the “Certificateholder”) of $__________ (___________ dollars) in Certificate Principal Balance, subject to change as specified in Schedule 1 hereto, in Incapital Trust Products II Trust ___  (the “Trust”) created pursuant to a Trust Agreement, dated as of _____, 201_, (the “Trust Agreement”), among U.S. Bank Trust National Association, as trustee and securities intermediary (the “Trustee”), U.S. Bank National Association, as Delaware trustee, Incapital Trust Products II LLC, as depositor (the “Depositor”), and Incapital Holdings LLC, as administrative agent (the “Administrative Agent”), a summary of certain of the pertinent provisions of which is set forth below. To the extent not otherwise defined herein, the capitalized terms used herein have the meanings assigned to them in the Trust Agreement. 

 

 This Certificate is one of the duly authorized Certificates designated as “CD Pass-Through Certificates” (the “Certificates”). This Certificate is issued under and is subject to the terms, provisions, and conditions of the Trust Agreement. By virtue of its acceptance hereof, the Holder assents to and agrees to be bound by the provisions of the Trust Agreement. 

 

 This Certificate evidences a Fractional Undivided Interest in the Trust Property. Subject to the terms and conditions of the Trust Agreement, until the obligations created by the Trust Agreement shall have terminated in accordance therewith, Certificateholders will be entitled to receive on the related Distribution Date distributions in an amount equal to their Fractional Undivided Interest in the amounts received by the Trustee and required to be distributed to Certificateholders on such Distribution Date pursuant to the terms of the Trust Agreement. 

 

 Except as otherwise provided in the Trust Agreement and notwithstanding the foregoing, distributions payable on the Final Schedule Distribution Date will be made only upon presentation and surrender of this Certificate at the designated office of the Trustee. 

 

 Each Certificateholder, by its acceptance of this Certificate or a beneficial interest herein, agrees to treat the Trust as a trust, the certificateholders of which are treated as the owners thereof under Section 671 of the Code, for U.S. federal income tax purposes. 

 

  

 A-3 

  

 

 Each Certificateholder, by its acceptance of this Certificate or a beneficial interest herein, acknowledges that the Administrative Agent will furnish the Certificateholder Information (1) pursuant to any order from a judicial body or administrative agency involved in a judicial or administrative proceeding or if it has been served with legal process demanding such information pursuant to any judicial or administrative proceeding or inquiry, or (2) if it has received a request for such information from any applicable federal or state bank regulatory authority.  The term “Certificateholder Information” means the name, address and taxpayer identification number of each Certificateholder and the principal amount of Certificates or beneficial interest therein held by such Certificateholder. 

 

 THE TRUST AGREEMENT AND THIS CERTIFICATE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF. 

 

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Trustee, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Trustee in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. Unless the certificate of authentication hereon has been executed by the Trustee, by manual or facsimile signature, this Certificate shall not be entitled to any benefit under the Trust Agreement or be valid for any purpose. 

 

 This Certificate does not purport to summarize the Trust Agreement and reference is hereby made to the Trust Agreement for information with respect to the rights, benefits, obligations and duties evidenced thereby. A copy of the Trust Agreement may be examined by any Certificateholder, upon request (free of charge), during normal business hours at the Corporate Trust Office of the Trustee, located initially at 300 Delaware Avenue, 9th Floor, Wilmington, DE 19801, and at such other places, if any, designated by the Trustee. 

 

 Reference is hereby made to the further terms of this Certificate set forth on the reverse hereof, which further terms shall for all purposes have the same effect as if set forth at this place. 

 

 IN WITNESS WHEREOF, the Trustee, on behalf of the Trust, and not in its individual capacity, has caused this Certificate to be duly executed. 

 

 

 

	   	
 Incapital Trust Products II Trust ___________ 

	   
	   	   	   
	   	    	
 By:  U.S. Bank National Association, as Trustee 

	   
	   	   	   	   
	   	    	
 By: 

	   
	   	    	    	   
	   	    	
 Authorized Signatory 

	   

  

 A-4 

  

 

 Dated: 

 

 

 Trustee's Certificate of Authentication: 

 

 This is one of the Certificates referred to in the within-mentioned Trust Agreement. 

 

	
 Dated: 

	    	
 U.S. Bank National Association, 

 as Trustee 

	   
	   	   	   	   
	   	   	   	   
	    	    	    	   
	    	
 By: 

	    	   
	   	   	   	   
	    	    	    	   
	   	   	   	   
	    	    	
 Authorized Signatory 

	   

  

 A-5 

  

 

 [REVERSE OF CERTIFICATE] 

 Incapital Trust Products II Trust ___ 

 CD Pass-Through Certificate 

 

 The Trust Agreement permits the amendment thereof, in certain circumstances, without the consent of the Holders of any of the Certificates. 

 

 As provided in the Trust Agreement and subject to certain limitations herein and therein set forth, the transfer of this Certificate is registrable in the Certificate Register upon surrender of this Certificate for registration of transfer at the designated office of the Trustee, accompanied by a written instrument of transfer in form and substance satisfactory to the Trustee duly completed and executed by the Holder hereof or such Holder's attorney duly authorized in writing, and thereupon one or more new Certificates of authorized denominations evidencing the same aggregate Certificate Principal Balance will be issued to the designated transferee. 

 

 As provided in the Trust Agreement and subject to certain limitations herein and therein set forth, this Certificate is exchangeable for new Certificates of authorized denominations representing the same aggregate Certificate Principal Balance, as requested by the Holder surrendering the same. The Trustee may require payment of a sum sufficient to cover any tax or governmental charges payable in connection therewith and any expenses reasonably incurred by the Trustee, except as otherwise specified in the Trust Agreement. 

 

 The Certificates are issuable only in registered form without coupons initially in denominations of $1,000. 

 

 Prior to due presentment for registration of transfer, the Depositor, the Trustee and any agent of the Depositor or the Trustee may treat the person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Depositor, the Trustee or any such agent shall be affected by any notice to the contrary. 

 

 The obligations and responsibilities created by the Trust Agreement and the Trust created thereby will terminate upon the payment to Certificateholders of all amounts required to be paid to them pursuant to the Trust Agreement. 

 

 Notwithstanding anything contained in the Trust Agreement to the contrary, the Trust Agreement has been accepted by the Trustee, not in its individual capacity but solely as Trustee. In no event shall the Trustee have any liability for the representations, warranties, covenants, agreements or other obligations of the Depositor thereunder or in any of the certificates, notices or agreements of the Depositor delivered pursuant thereto, as to all of which recourse shall be had solely to the assets of the Depositor, and, except as expressly specified in Section 8.05 of the Trust Agreement, under no circumstances shall the Trustee be personally liable for the payment of any indebtedness or expenses of the Trust. This Certificate does not represent an interest in or obligation of the Trustee and the Trustee shall not be responsible or accountable for any tax, accounting or other treatment proposed to be applied to the Certificates or any interest therein except as expressly provided in the Trust Agreement. 

 

  

 A-6 

  

 

 [Include if this Certificate is a Global Certificate] 

 

 Schedule 1 

 

 SCHEDULE OF CHANGES IN OUTSTANDING CERTIFICATE PRINCIPAL BALANCE 

 

 The following notations in respect of changes in the outstanding Certificate Principal Balance of this Global Certificate have been made in respect of a Removal Event or a Special Distribution Date resulting from the optional redemption of Underlying CDs: 

 

 

 

 

 

 

	
 Date 

	
 Initial 

 Certificate 

 Principal 

 Balance 

	
 Change in 

 Outstanding 

 Principal 

 Balance 

	
 New 

 Certificate 

 Principal 

 Balance 

	
 Notation 

 Made by 

	    	    	    	    	    

  

 A-7 

  

 

 Annex A

 

 

 FORM OF NOTICE OF REMOVAL OF 

 UNDERLYING CDS FROM TRUST PROPERTY 

 

 [Name and Address of Certificateholder] 

 

 Re:  Incapital Trust Products II Trust ___ 

 CD Pass-Through Certificates 

 

 We hereby notify you in accordance with Section 3.08(a) of the Trust Agreement, dated as of _____, 201_, (the “Trust Agreement”), among Incapital Trust Products II LLC, as Depositor, U.S. Bank National Association, as trustee and securities intermediary, U.S. Bank Trust National Association, as Delaware trustee and Incapital Holdings LLC, as administrative agent, [of the occurrence of a Removal Event/Wind-up Event with respect to the following Underlying CDs: [specify series or issue of Underlying CDs and specific Removal Event/Wind-up Event]] [that the following series or issue of Underlying CDs are subject to removal from the Trust Property in accordance with Section 3.11 of the Trust Agreement.] 

 

 [In accordance with Section 3.08/3.09, you have the right to have the administrative agent sell your pro rata portion of the Underlying CDs [subject to removal and receive the proceeds thereof]. If you choose to exercise this option, please notify us no later than three Business Days from your receipt of this notification by completing and returning to our attention, the form of notice specified in Annex B to the Trust Agreement.] [[If you choose not to exercise this option,] we will distribute to you your pro rata portion of the Underlying CDs subject to removal.] 

 

 Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Trust Agreement. 

 

	    	
 INCAPITAL HOLDINGS LLC 

	   	   
	   	   
	   	   
	    	    	    
	    	    	    
	    	
 By: 

	    
	    	
 Name: 

	    	
 Title: 

 

  

 A-1 

  

 

 Annex B 

 

 

 FORM OF NOTICE OF ELECTION TO SELL 

 

 [Administrative Agent] 

 Attention: Corporate Trust Administration 

 

	Re: 	

 Incapital Trust Products II Trust ___ 

	 	

 CD Pass-Through Certificates 

 

 The undersigned Holder of this Certificate hereby irrevocably exercises the option to effect the sale of its pro rata portion of the Underlying CDs subject to removal as specified in the notice received by the Trustee on _______, 201_, with respect to the following Underlying CDs: [specify series or issue of Underlying CDs subject to removal] in accordance with the terms of the Trust Agreement, dated as of _______ (the “Trust Agreement”), among Incapital Trust Products II LLC, as Depositor, U.S. Bank National Association, as trustee and securities intermediary, U.S. Bank Trust National Association, as Delaware trustee, and Incapital Holdings LLC, as administrative agent. 

 

 

	
 Dated: 

	    	   	
 Signature 

	    

 

 

 

 

	
 Signature Guarantee: 

	    	    

 

 

 

	

 Social Security or other 

 Taxpayer Identification 

	
 Number, if any: 

	    	    

 

 

  B-1ex4_2.htm

 Exhibit 4.2 

 

  

 SELLING AGENT AGREEMENT 

 

 by and among 

 

 Incapital Trust Products II Trust ___, 

 

 Incapital Trust Products II LLC 

 

 and the 

 

 Agents named herein 

 

 ________ __, 20__ 

 

 

 

  

    

    

    

 

 ________ __, 20__ 

 

 

 

 

 To the Agent listed on 

 the signature page hereto 

 

 c/o Incapital LLC 

 200 South Wacker Drive, Suite 3700 

 Chicago, IL 60606 

 

 

 

 The issuer, Incapital Trust Products II Trust __, a Delaware statutory trust (the “Trust”) formed pursuant to a trust agreement (the “Trust Agreement”), dated ________ __, 20__, by and among Incapital Trust Products II LLC, as depositor (the “Depositor”), U.S. Bank National Association, as trustee (the “Trustee”), U.S. Bank Trust National Association, as Delaware trustee and on behalf of the Trust, and Incapital Holdings LLC, as administrative agent (the “Administrative Agent”), proposes to issue and sell up to $_____________ aggregate amount of the Trust’s CD Pass-Through Certificates (the “Certificates”).  The terms of the Certificates are described in the Prospectus and Prospectus Supplement referred to below. All capitalized terms used herein and not otherwise defined shall have the respective meanings assigned to them in the Trust Agreement. 

 

 Subject to the terms and conditions contained in this Agreement, the Trust hereby appoints you as its agent (“Agent”) for the purpose of soliciting offers to purchase the Certificates and each of you hereby agrees to use your best efforts to solicit offers to purchase Certificates upon terms acceptable to the Trust and the Depositor in accordance with the terms hereof.  The Trust reserves the right to enter into agreements substantially identical hereto with other agents. 

 

 I. 

 

 The Depositor has filed with the Securities and Exchange Commission (the “SEC”) a registration statement (File No. 333-205157) relating to the sale of certificates of one or more trusts formed by it, including the Trust, and the offering of the Certificates thereof, from time to time, in accordance with Rule 415 under the Securities Act of 1933, as amended (the “1933 Act”).  Such registration statement and the prospectus forming a part thereof, including all documents incorporated therein by reference, as from time to time amended or supplemented, including any Prospectus Supplement, are referred to herein as the “Registration Statement” and the “Prospectus,” respectively.  The Registration Statement has been declared effective by the SEC, and the Trust Agreement has been qualified under the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”). 

 

    

    

    

 

 II. 

 

 The Depositor and the Trust hereby represent and warrant to the Agent jointly and severally that: 

 

 (a)           No stop order suspending the effectiveness of the Registration Statement, as amended from time to time, shall have been issued and no proceedings for that purpose shall have been instituted or threatened. 

 

 (b)           As of the date hereof and as of any time that the Registration Statement or the Prospectus shall be amended or supplemented or there is filed with the SEC any document incorporated by reference into the Prospectus (other than any Current Report on Form 8-K relating exclusively to the issuance of Certificates under the Registration Statement or furnished solely for the purpose of disclosure under Item 7.01 thereof) (each of the times referenced above being referred to herein as a “Representation Date”) as follows: 

 

 (i)            The Depositor meets the requirements for use of Form S-3 under the 1933 Act and has filed with the SEC the Registration Statement, which has been declared effective.  The Registration Statement meets the requirements of Rule 415 under the 1933 Act and complies in all other material respects with said Rule. 

 

 (ii)           (a) The Registration Statement, as amended or supplemented, the Prospectus and the Trust Agreement will comply in all material respects with the applicable requirements of the 1933 Act, the Trust Indenture Act and the 1934 Act and the respective rules and regulations thereunder, (b) the Registration Statement, as amended as of any such time, will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein not misleading, and (c) the Prospectus, as amended or supplemented as of any such time, will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that neither the Trust nor the Depositor makes any representations or warranties as to (x) that part of the Registration Statement which shall constitute the Statement of Eligibility and Qualification of the Trustee (Form T-1) under the Trust Indenture Act or (y) the information contained in or omitted from the Registration Statement or the Prospectus or any amendment thereof or supplement thereto in reliance upon and in conformity with information furnished in writing to the Depositor by or on behalf of the Agent specifically for inclusion in the Registration Statement and the Prospectus. 

 

    

 2 

    

 

 (iii)           The documents incorporated by reference or deemed to be incorporated by reference in the Registration Statement and the Prospectus, at the time they were or hereafter are filed with the SEC, complied and will comply in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC thereunder and, when read together with the other information in the Prospectus, at the date hereof, at the date of the Prospectus and at each Representation Date, did not and will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 

 

 (c)           The conditions for use of Form S-3 to register the offering of the Certificates under the 1933 Act, as set forth in the General Instructions to such form, have been satisfied. 

 

 (d)           The Certificates have been given an “investment grade” rating by a “nationally recognized statistical rating organization” as that term is defined by the Commission for purposes of Rule 436(g)(2) under the 1933 Act. 

 

 III. 

 

 The obligations of each Agent hereunder shall be subject to the accuracy in all material respects of the representations and warranties on the part of the Trust and the Depositor contained herein as of the date hereof, to the accuracy in all material respects of the statements of the Trust and the Depositor made in any certificates delivered in connection with the transactions contemplated hereby, to the performance in all material respects by the Trust and the Depositor of their respective obligations hereunder and to the satisfaction of the following additional conditions. 

 

 (a)           On the date hereof, such Agent shall have received the following legal opinions, dated as of the date hereof and in form and substance satisfactory to such Agent: 

 

 (1)           The opinion of Morrison & Foerster LLP, counsel for the Trust and the Depositor, to the effect that: 

 

 (i)            The Depositor is a duly formed limited liability company, validly existing and in good standing under the laws of the State of Delaware and the Depositor has the requisite power and authority to conduct its business as described in the Prospectus; 

 

 (ii)           The Depositor is qualified or licensed to do business as a foreign limited liability company, as applicable, in any jurisdiction in which such counsel has knowledge that the Depositor is required to be so qualified or licensed; 

 

 (iii)          This Agreement has been duly authorized, executed and delivered by each of the Trust and the Depositor and constitutes a legal, valid and binding obligation of the Trust and the Depositor; 

 

    

 3 

    

 

 (iv)          The Trust Agreement has been duly qualified under the Trust Indenture Act; 

 

 (v)           The Registration Statement has become effective under the 1933 Act and, to such counsel’s knowledge, no stop order suspending the effectiveness of the Registration Statement has been issued and no proceeding for that purpose has been instituted or threatened; and the Registration Statement (other than the financial statements and other financial and statistical information contained therein or incorporated by reference therein, as to which such counsel need express no opinion) as of the effective date thereof, complied as to form in all material respects with the applicable requirements of the 1933 Act, the Securities Exchange Act of 1934, as amended (the “1934 Act”), the Trust Indenture Act, and the respective rules and regulations of the SEC thereunder; 

 

 (vi)          The form of Certificate attached to the Secretary’s Certificate delivered by the Depositor to the Agent conforms in all material respects to the descriptions thereof contained in the Prospectus; 

 

 (vii)         The Trust Agreement conforms in all material respects to the description thereof contained in the Prospectus; 

 

 (viii)        Such counsel is without knowledge that (1) there is any pending or threatened action, suit or proceeding before or by any court or governmental agency, authority or body or any arbitrator involving either the Trust or the Depositor of a character required to be disclosed in the Registration Statement or Prospectus which is omitted or not adequately disclosed therein, or (2) any franchise, contract or other document of a character required to be described in the Registration Statement or Prospectus, or to be filed as an exhibit to the Registration Statement, is not so described or filed as required; 

 

 (ix)           Neither the issuance and sale of the Certificates, the consummation of any other of the transactions herein contemplated nor the fulfillment of the terms hereof will to such counsel’s knowledge conflict with, result in a breach of, or constitute a default under (1) the terms of any material agreement or instrument known to such counsel and to which the Depositor is a party or bound, or (2) any order, law or regulation known to such counsel to be applicable to the Depositor of any court, regulatory body, administrative agency, governmental body or arbitrator having jurisdiction over the Depositor; 

 

 (x)            No consent, approval, authorization or order of any court or governmental agency or body is required on behalf of the Depositor for the consummation of the transactions contemplated herein, except such as have been obtained under the 1933 Act and such as may be required under foreign or state securities laws in connection with the purchase and distribution of the Certificates; and 

 

    

 4 

    

 

 (xi)           [Based upon the assumptions and analysis set forth in such opinion, in the event of an Underlying CD Issuer’s insolvency, such counsel believes that the Certificateholders would be recognized as the beneficial owners of the CDs of such Underlying CD Issuer held by the Trust by the Federal Deposit Insurance Corporation and afforded the same opportunity for recovery as if the funds deposited in such CDs had been deposited directly by the Certificateholders in the same Underlying CD Issuer.] 

 

 In rendering such opinion, counsel may rely as to matters of fact, to the extent deemed proper, on certificates of responsible officers of the Depositor and public officials. 

 

 In rendering such opinion, but without opining in connection therewith, such counsel shall state that nothing has come to its attention that leads it to believe that (i) the Registration Statement, at the time it became effective and as of its most recent effective date, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading, or (ii) the Prospectus, as of its date, at the time it was filed with the Commission pursuant to Rule 424(b) under the 1933 Act or as of the date of such opinion, contained or contains any untrue statement of a material fact or omitted or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that such counsel is not passing upon and does not assume any responsibility for the accuracy, completeness or fairness of the statements contained in the Registration Statement or the Prospectus (other than as stated in paragraphs (vi) and (vii) above), and such counsel has not been requested to and does not make any comment in this paragraph with respect to the financial statements, supporting schedules, footnotes and other financial information contained in the Registration Statement or the Prospectus. 

 

 (2)           The opinion of Richards, Layton and Finger, LLP, special Delaware counsel to the Depositor and the Trust, to the effect that: 

 

 (i)            The Trust has been duly created and is validly existing in good standing as a trust under the laws of the State of Delaware; 

 

 (ii)            Under the laws of the State of Delaware and under the Trust Agreement, the Trust has the trust power and authority (a) to own its properties and conduct its business, (b) to execute and deliver the Agreements (as defined in such opinion) to which it is a party, and (c) to issue and perform its obligations under the Certificates, all as described in the Trust Agreement; 

 

 (iii)           The Trust Agreement constitutes a valid and binding obligation of the Depositor and the Trustees, enforceable against the Depositor in accordance with its terms; 

 

 (iv)          Under the laws of the State of Delaware and under the Trust Agreement, the execution and delivery by the Trust of the Agreements to which it is a party, and the performance by the Trust of its obligations thereunder, have been duly authorized by all necessary action on the part of the Trust; 

 

    

 5 

    

 

 (v)           The Certificates will represent valid, fully paid and non-assessable undivided beneficial interests in the assets of the Trust; 

 

 (vi)          Under the laws of the State of Delaware and the Trust Agreement, the issuance of the Certificates is not subject to any preemptive rights; 

 

 (vii)         Neither the issuance and sale of the Certificates, the consummation of any other of the transactions herein contemplated nor the fulfillment of the terms hereof will to such counsel’s knowledge conflict with, result in a breach of, or constitute a default under the Trust Agreement; and 

 

 (viii)        No authorization, approval or other action by, and no notice to or filing with, any government authority or regulatory body of the State of Delaware is required for the issuance and sale of the Certificates or the consummation of the transactions contemplated hereunder or under the Trust Agreement. 

 

 In rendering such opinion, counsel may rely as to matters of fact, to the extent deemed proper, on certificates of responsible officers of the Depositor and public officials. 

 

 (3)           The opinion of Brad Busscher, Esq., general counsel to the Agent, covering the matters referred to in subparagraph (1) under the subheadings (iv) through (vii), inclusive, above. 

 

 In rendering such opinion, counsel may rely as to matters of fact, to the extent deemed proper, on certificates of responsible officers of the Trust, the Depositor and public officials. 

 

 (b)           On the date hereof, the Agent, the Depositor and the Trust shall have received a certificate from U.S. Bank Trust National Association, (“Delaware Trustee”), dated the date hereof, to the effect that: (i) it is a Delaware banking corporation with trust powers, duly organized, validly existing and in good standing under the laws of the State of Delaware with all necessary power and authority to execute and deliver, and to carry out and perform its obligations under the terms of the Trust Agreement forming the Trust and to act as trustee thereunder and has duly accepted such duties;  (ii) the Trust Agreement has been duly executed and delivered in the name of and on its behalf as the Delaware Trustee;  (iii) at the date hereof, the Trust Agreement is in full force and effect with respect to the Delaware Trustee; and (iv) each person who, on behalf of the Delaware Trustee, executed and delivered the Trust Agreement was at the date thereof duly elected, appointed or authorized, qualified and acting as an officer or authorized signatory of the Delaware Trustee and was duly authorized and empowered to perform such acts at the respective times of such acts, and the signatures of such persons appearing on such documents are their genuine signatures. 

 

    

 6 

    

 

 (c)           On the date hereof, the Agent shall have received a certificate of the Chief Executive Officer and the Chief Financial Officer of the Depositor, dated as of the date hereof, to the effect that the signers of such certificate have carefully examined the Registration Statement, the Prospectus and this Agreement and that (i) since the respective dates as of which information is given in the Registration Statement and the Prospectus, there has been no material adverse change or development involving a prospective material adverse change in the condition of the Trust or the Depositor, whether or not arising from transactions in the ordinary course of business, except as set forth or contemplated in the Prospectus, (ii) the representations and warranties of the Trust and the Depositor contained in this Agreement are true and correct with the same force and effect as though expressly made at and as of the date of such certificate, (iii) neither the Trust nor the Depositor has failed to perform or comply with all the agreements and has satisfied all the conditions on its part to be performed or satisfied hereunder at or prior to the date of such certificate, (iv) no stop order suspending the effectiveness of the Registration Statement has been issued and any proceedings for that purpose have been instituted or threatened by the SEC and (v) no litigation or proceeding is pending to restrain or enjoin the issuance or delivery of the Certificates, or which in any way affects the validity of the Certificates. 

 

 (d)           On the date hereof counsel to the Agent shall have been furnished with such documents and opinions as such counsel may reasonably require for the purpose of enabling such counsel to pass upon the issuance and sale of Certificates as herein contemplated, or in order to evidence the accuracy and completeness of any of the representations and warranties, or the fulfillment of any of the conditions, contained herein; and all proceedings taken by the Trust or the Depositor in connection with the issuance and sale of Certificates as herein contemplated shall be satisfactory in form and substance to counsel to the Agent. 

 

 (e)           There shall not have come to the attention of the Agent any facts that would cause it to believe that the Prospectus, at the time it was required to be delivered to a purchaser of the Certificates, included an untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein, in light of the circumstances existing at the time of such delivery, not misleading. 

 

 IV. 

 

 In further consideration of your agreements herein contained, the Trust and the Depositor, as applicable, hereby covenant, jointly and severally, as follows: 

 

 (a)           The Depositor will notify the Agent immediately of (i) the effectiveness of any amendment to the Registration Statement, (ii) the filing of any supplement to the Prospectus, (iii) the receipt of any comments from the SEC with respect to the Registration Statement or the Prospectus (other than with respect to a document filed with the SEC pursuant to the 1934 Act which will be incorporated by reference in the Registration Statement and the Prospectus), (iv) any request by the SEC for any amendment to the Registration Statement or any amendment or supplement to the Prospectus or for additional information relating thereto (other than such a request with respect to a document filed with the SEC pursuant to the 1934 Act which will be incorporated by reference in the Registration Statement and the Prospectus), and (v) the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose.  The Trust and the Depositor will make every reasonable effort to prevent the issuance of any stop order and, if any stop order is issued, to obtain the lifting thereof at the earliest possible moment. 

 

    

 7 

    

 

 (b)           The Depositor will give the Agent notice of its intention to file or prepare any additional registration statement with respect to the registration of additional Certificates or any amendment to the Registration Statement or any amendment or supplement to the Prospectus (other than an amendment or supplement effected by the filing of a document with the SEC pursuant to the 1934 Act) and, upon request, will furnish the Agent with copies of any such registration statement or amendment or supplement proposed to be filed or prepared a reasonable time in advance of such proposed filing or preparation, as the case may be, and will not file any such registration statement or amendment or supplement in a form as to which the Agent or counsel to the Agent reasonably object. 

 

 (c)           The Depositor will deliver to the Agent without charge, as many signed and conformed copies of (i) the Trust Agreement, (ii) the Registration Statement (as originally filed) and of each amendment thereto (including exhibits filed therewith or incorporated by reference therein and documents incorporated by reference in the Prospectus) and (iii) a certified copy of the authorization of the issuance and sale of the Certificates as the Agent may reasonably request.  The Depositor will furnish to the Agent as many copies of the Prospectus (as amended or supplemented) as the Agent shall reasonably request so long as the Agent is required to deliver a Prospectus in connection with sales or solicitations of offers to purchase the Certificates under the 1933 Act.  Upon request, the Depositor will furnish to the Agent a paper copy of any Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or any reports on any successor forms, if any, filed by the Depositor, on behalf of the Trust, with the SEC pursuant to the 1934 Act as soon as practicable after the filing thereof. 

 

 (d)           Except as otherwise provided in subsection (g) of this Section, if at any time during the term of this Agreement any event shall occur or condition exist as a result of which it is necessary, in the reasonable opinion of counsel to the Agent or counsel for the Depositor, to further amend or supplement the Prospectus in order that the Prospectus will not include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein not misleading in light of the circumstances existing at the time the Prospectus is delivered to a purchaser, or if it shall be necessary, in the reasonable opinion of either counsel to the Agent or counsel for the Depositor, to amend or supplement the Registration Statement or the Prospectus in order to comply with the requirements of the 1933 Act or the rules and regulations promulgated thereunder, immediate notice shall be given, and confirmed in writing, to the Agent to cease the solicitation of offers to purchase the Certificates, and the Depositor will promptly prepare and file with the SEC such amendment or supplement, whether by filing documents pursuant to the 1934 Act, the 1933 Act or otherwise, as may be necessary to correct such untrue statement or omission or to make the Registration Statement and Prospectus comply with such requirements. 

 

    

 8 

    

 

 (e)           The Trust and the Depositor each will endeavor, in cooperation with the Agent, to qualify the Certificates for offering and sale under the applicable securities laws of such states and other jurisdictions of the United States as the Agent may designate and will maintain such qualifications in effect for as long as may be required for the distribution of the Certificates; provided, however, that neither the Trust nor the Depositor shall be obligated to file any general consent to service of process or to qualify as a foreign corporation in any jurisdiction in which it is not so qualified.  The Depositor will file, on behalf of itself and on behalf of the Trust, such statements and reports as may be required by the laws of each jurisdiction in which the Certificates have been qualified as above provided.  The Depositor will promptly advise the Agent of the receipt by it or by the Trust of any notification with respect to the suspension of the qualification of the Certificates for sale in any such state or jurisdiction or the initiating or threatening of any proceeding for such purpose. 

 

 (f)            The Depositor, during the period when the Prospectus is required to be delivered under the 1933 Act, will file promptly all documents required to be filed with the SEC pursuant to the 1934 Act. 

 

 (g)           The Depositor shall not be required to comply with the provisions of subsections (d) of this Section or the provisions of Sections VII (a) and (b) during any period from the time the Agent have suspended solicitation of purchases of the Certificates in their capacity as agent pursuant to a request from the Trust or the Depositor, as applicable, to the time the Trust or the Depositor, as applicable, shall determine that solicitation of purchases of the Certificates should be resumed. 

 

 V. 

 

 (a)           The Agent proposes to solicit offers to purchase the Certificates upon the terms and conditions set forth herein and in the Prospectus.  For the purpose of such solicitation the Agent will use the Prospectus as then supplemented which has been most recently distributed to the Agent by the Depositor, and the Agent will solicit offers to purchase only as permitted or contemplated thereby and herein and will solicit offers to purchase the Certificates only as permitted by the 1933 Act and the applicable securities laws or regulations of any jurisdiction.  Each of the Depositor and the Trust reserves the right, in its sole discretion, to suspend solicitation of offers to purchase Certificates commencing at any time for any period of time or permanently.  Upon receipt of instructions (which may be given orally) from the Depositor or the Trust, the Agent will suspend promptly solicitation of offers to purchase until such time as the Depositor or the Trust, as applicable, has advised the Agent that such solicitation may be resumed. 

 

 Unless otherwise instructed by the Depositor, the Agent is authorized to solicit offers to purchase the Certificates only in denominations of $1,000 or more (in multiples of $1,000).  The Agent is not authorized to appoint subagents or to engage the services of any other broker or dealer in connection with the offer or sale of the Certificates except under the terms of the Master Selected Dealer Agreement attached hereto as Exhibit A.  Unless otherwise instructed by the Depositor, the Agent shall communicate to the Depositor, orally or in writing, each offer to purchase Certificates.  The Depositor shall have the sole right to accept offers to purchase Certificates and may reject any proposed offers to purchase Certificates as a whole or in part.  The Agent shall have the right, in its discretion reasonably exercised, to reject any proposed purchase of Certificates, as a whole or in part, and any such rejection shall not be deemed a breach of its agreements contained herein.  The Trust agrees to pay the Agent, as consideration for soliciting offers to purchase Certificates, a concession in the form of a discount equal to the percentages of the initial offering price of each Certificate actually sold as set forth in Schedule I hereto (the “Concession”).  The Agent or other subagents or dealers (the “Selected Dealers”) will share the above-mentioned Concession in such proportions as they may agree. 

 

    

 9 

    

 

 (b)           The Trust, the Depositor and the Agent each acknowledges and agrees, and each Selected Dealer will be required to acknowledge and agree, that the Certificates are being offered for sale in the United States only. 

 

 VI. 

 

 (a)           Each sale of Certificates shall be made in accordance with the terms of this Agreement and on the terms specified on Schedule I attached hereto.  The offering of Certificates by the Trust hereunder shall be deemed to have been made on the basis of the representations, warranties and agreements of the Trust and the Depositor, as applicable, herein contained and shall be subject to the terms and conditions herein set forth.  Schedule I may specify, among other things, the principal amount of Certificates to be purchased, the underlying debt securities held by the Trust, the interest rate or formula and maturity date or dates of such underlying debt securities, the distribution dates, if any, the net proceeds to the Trust, the initial public offering price at which the Certificates are proposed to be offered, and the time and place of delivery of and payment for such Certificates (the “Closing Date”), whether the underlying debt securities provide for a Survivor’s Option, and any other relevant terms.  In connection with the resale of the Certificates purchased, without the consent of the Depositor, the Agent is not authorized to appoint subagents or to engage the service of any other broker or dealer, nor may the Agent reallow any portion of the Concession. 

 

 VII. 

 

 (a)           The Depositor and the Trust jointly and severally agree to indemnify and hold harmless the Agent and each person who controls the Agent within the meaning of either the 1933 Act or the 1934 Act against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the 1933 Act, the 1934 Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement as originally filed or in any amendment thereof, or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Prospectus, or any amendment or supplement thereof, or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and agrees to reimburse each such indemnified party for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that (i) neither the Trust nor the Depositor will be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished to either the Trust or the Depositor by or on behalf of the Agent specifically for inclusion in the Registration Statement or Prospectus or any amendment or supplement thereof, or arises out of or is based upon statements in or omissions from that part of the Registration Statement which shall constitute the Statement of Eligibility and Qualification of the Trustee (Form T-1) under the Trust Indenture Act and (ii) such indemnity with respect to the Prospectus shall not inure to the benefit of the Agent (or any person controlling the Agent) from whom the person asserting any such loss, claim, damage or liability purchased the Certificates which are the subject thereof if the Agent failed to deliver a copy of the Prospectus as amended or supplemented to such person in connection with the sale of such Certificates excluding documents incorporated therein by reference at or prior to the written confirmation of the sale of such Certificates to such person in any case where such delivery is required by the 1933 Act and the untrue statement or omission of a material fact contained in the Prospectus was corrected in the Prospectus as amended or supplemented.  This indemnity agreement will be in addition to any liability which the Trust or the Depositor may otherwise severally have. 

 

    

 10 

    

 

 (b)           The Agent agrees to indemnify and hold harmless the Trust and the Depositor, each of the members and officers of the Depositor who signs the Registration Statement and each person who controls either the Trust or the Depositor within the meaning of either the 1933 Act or the 1934 Act, to the same extent as the foregoing indemnity from the Trust or the Depositor to the Agent, but only with reference to written information relating to the Agent furnished to the Depositor by or on behalf of the Agent specifically for inclusion in the Registration Statement or Prospectus or any amendment or supplement thereof.  This indemnity agreement will be in addition to any liability which the Agent may otherwise have.  The Trust and the Depositor each acknowledge that (i) the name of the Agent and the statements required by Item 508 of Regulation S-K set forth in the language on the cover page or under the heading “Plan of Distribution,” (ii) the sentences relating to concessions and reallowances, and (iii) the paragraph related to stabilization and syndicate covering transactions in the Prospectus constitute the only information furnished in writing by or on behalf of the Agent for inclusion in the Registration Statement or Prospectus or any amendment or supplement thereof. 

 

 (c)           Promptly after receipt by an indemnified party under this Section VII of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section VIII, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party except to the extent, if any, that such failure materially prejudices the indemnifying party.  In case any such action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein, and, to the extent that it may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof, with counsel satisfactory to such indemnified party; provided, however, that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties.  Upon receipt of notice from the indemnifying party to such indemnified party of its election so to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section VII for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless (i) the indemnified party shall have employed separate counsel in connection with the assertion of legal defenses in accordance with the proviso to the next preceding sentence (it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel (in addition to local counsel), approved by the Agent in the case of paragraph (a), representing the indemnified parties under paragraph (a) who are parties to such action), (ii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the action or (iii) the indemnifying party has authorized the employment of counsel for the indemnified party at the expense of the indemnifying party; and except that if clause (i) or (iii) is applicable, such liability shall be only in respect of the counsel referred to in such clause (i) or (iii). 

 

    

 11 

    

 

 (d)           To provide for just and equitable contribution in circumstances in which the indemnification provided for in paragraph (a) of this Section VII is due in accordance with its terms but is for any reason held by a court to be unavailable from the Trust or the Depositor on the grounds of policy or otherwise, the Trust, the Depositor and the Agent shall contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending same) to which the Trust, the Depositor and one or more of the Agent may be subject in such proportion so that the Agent is responsible for that portion represented by the percentage that the total commissions and underwriting discounts received by the Agent bears to the total sales price from the sale of Certificates sold to or through the Agent to the date of such liability, and the Trust or the Depositor is responsible for the balance.  However, if the allocation provided by the foregoing sentence is not permitted by applicable law, the Trust, the Depositor and the Agent shall contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending same) to which the Trust, the Depositor and the Agent may be subject in such proportion to reflect the relative fault of the Trust or the Depositor on the one hand and the Agent on the other in connection with the statements or omissions or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Trust, the Depositor or the Agent, the parties’ relative intents, knowledge, access to information and opportunity to correct or prevent such statement or omission, and any other equitable considerations appropriate in the circumstances.  The Trust, the Depositor and the Agent agree that it would not be equitable if the amount of such contribution were determined by pro rata or per capita allocation or by any other method of allocation that does not take into account the equitable considerations referred to above in this paragraph (d).  Notwithstanding anything to the contrary contained herein, (i) in no case shall the Agent be responsible for any amount in excess of the commissions and underwriting discounts received by the Agent in connection with the Certificates from which such losses, liabilities, claims, damages and expenses arise and (ii) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  For purposes of this Section VII, each person who controls the Agent within the meaning of the 1933 Act shall have the same rights to contribution as the Agent, and each person who controls the Trust or the Depositor within the meaning of either the 1933 Act or the 1934 Act, each officer of the Depositor who shall have signed the Registration Statement and each member of the Depositor shall have the same rights to contribution as the Trust or the Depositor, subject in each case to the provisions of this paragraph (d). Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this paragraph (d), notify such party or parties from whom contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any other obligation it or they may have hereunder or otherwise than under this paragraph (d). 

 

    

 12 

    

 

 VIII. 

 

 The Depositor or the Agent may terminate the appointment and arrangements described in this Agreement.  Upon receipt of instructions from the Depositor, the Agent shall suspend or terminate the participation of any Selected Dealer under the Master Selected Dealer Agreement attached hereto as Exhibit A.  Such actions may be taken, in the case of the Depositor, by giving prompt written notice of suspension to the Agent and by giving not less than 5 days’ written notice of termination to the affected party and the other parties to this Agreement, or in the case of the Agent, by giving not less than 5 days’ written notice of termination to the Trust and the Depositor and except that, if at the time of termination an offer for the purchase of Certificates shall have been accepted by the Depositor but the time of delivery to the purchaser or his agent of the Certificate or Certificates relating thereto shall not yet have occurred, the Trust and the Depositor each shall have the obligations provided herein with respect to such Certificate or Certificates. The Depositor shall promptly notify the other parties in writing of any such termination. 

 

 The Agent may terminate this Agreement immediately upon notice to the Trust and the Depositor at any time prior to the Closing Date, if (i) there has been, since the date of such agreement, any material adverse change or any development involving a prospective material adverse change in the condition (financial or other), earnings, business or properties of the Trust the effect of which is such as to make it, in the judgment of the Agent, impracticable to market the Certificates or enforce contracts for the sale of the Certificates, (ii) a material disruption in the commercial banking or securities settlement or clearance services in the United States has occurred or a banking moratorium shall have been declared by Federal or New York State authorities, or (iii) there shall have occurred any outbreak or material escalation of hostilities or other calamity or crisis (in the United States or elsewhere) the effect of which on the financial markets of the United States the effect of which is such as to make it, in the judgment of the Agent, impracticable to market the Certificates or enforce contracts for the sale of the Certificates. 

 

 If this Agreement is terminated, Section IV(c), Section VII and Section XI hereof shall survive and shall remain in effect. 

 

    

 13 

    

 

 IX. 

 

 Except as otherwise specifically provided herein, all statements, requests, notices and advices hereunder shall be in writing, or by telephone if promptly confirmed in writing, and shall be sufficient in all respects if delivered or sent by telex, facsimile transmission (confirmed in writing) or registered mail to the parties at their respective address specified below.  All such notices shall be effective on receipt. 

 

 If to the Trust: 

 

 U.S. Bank National Association 

 1 Federal Street, Boston, MA 02110 

 Attention: Amy Byrnes 

 Facsimile: [ ] 

 

 With a copy to: 

 Incapital Holdings, LLC 

 200 South Wacker Drive, Suite 3700 

 Chicago, IL 60606 

 Attention:  Christopher Hogg 

 Facsimile: (312) 379-3701 

 If to the Depositor: 

 c/o Administrative Agent 

 Incapital Holdings LLC 

 200 South Wacker Drive, Suite 3700 

 Chicago, IL 60606 

 Attention: Christopher Hogg 

 Facsimile: (312) 379-3701 

 

 With a copy to: 

 Morrison & Foerster LLP 

 250 West 55th Street 

 New York, NY 10019 

 Attention: Anna Pinedo, Esq. 

 Facsimile: (212) 468-7900 

 If to the Agent: 

 Incapital LLC 

 200 South Wacker Drive, Suite 3700 

 Chicago, IL 60606 

 Attention: Brad Busscher, Esq. 

 Facsimile: (312) 379-3731 

 

    

 14 

    

or at such other address as such party may designate from time to time by notice duly given in accordance with the terms of this Section. 

 

 X. 

 

 This Agreement shall be binding upon the Agent, the Trust and the Depositor, and inure solely to the benefit of the Agent, the Trust and the Depositor and any other person expressly entitled to indemnification hereunder and the respective personal representatives, successors and assigns of each, and no other person shall acquire or have any rights under or by virtue of this Agreement. 

 

 XI. 

 

 This Agreement shall be governed by and construed in accordance with the substantive laws of the State of New York.  Each party to this Agreement irrevocably agrees that any legal action or proceeding against it arising out of or in connection with this Agreement or for recognition or enforcement of any judgment rendered against it in connection with this Agreement may be brought in any Federal or New York State court sitting in the County of New York, New York, and, by execution and delivery of this Agreement, such party hereby irrevocably accepts and submits to the jurisdiction of each of the aforesaid courts in person, generally and unconditionally with respect to any such action or proceeding for itself and in respect of its property, assets and revenues.  Each party hereby also irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of venue of any such action or proceeding brought in any such court and any claim that any such action or proceeding has been brought in an inconvenient forum. 

 

 XII. 

 

 If this Agreement is executed by or on behalf of any party, such person hereby states that at the time of the execution of this Agreement he has no notice of revocation of the power of attorney by which he has executed this Agreement as such attorney. 

 

 The Trust will pay the following expenses incident to the performance of its obligations under this Agreement, including:  (i) a portion of the fees related to the preparation and filing of the Registration Statement as originally filed; (ii) the preparation, filing and reproduction of this Agreement; (iii) the preparation, issuance and delivery of the Certificates to the Agent, including capital duties, stamp duties and transfer taxes, if any, payable upon issuance of any of the Certificates, the sale of the Certificates and the fees and expenses of any transfer agent for the Certificates; (iv) the fees and expenses of counsel to any such transfer agent or trustee; (v) the fees and disbursements of the Trust’s counsel and the Depositor’s accountants and counsel; (vi) the reasonable fees and disbursements of counsel to the Agent incurred from time to time in connection with the transactions contemplated hereby; (vii) the qualification of the Certificates under state securities laws, including filing fees and the reasonable fees and disbursements of counsel for the Depositor in connection therewith and in connection with the preparation of any Blue Sky survey; (viii) the printing and delivery to the Agent of copies of the Registration Statement and of each amendment thereto, of the Prospectus and any amendments or supplements thereto; (ix) the printing and delivery to the Agent of copies of any Blue Sky survey; (x) the fees of the Financial Industry Regulatory Authority, Inc.; (xi) the preparation, printing, reproduction and delivery to the Agent of copies of the Trust Agreement and all supplements and amendments thereto; (xii) if applicable, any fees charged by rating agencies for the rating of the Certificates; (xii) the fees and expenses of any depository and any nominee thereof in connection with the Certificates; and (xiii) if applicable, the fees of the American Stock Exchange. 

 

    

 15 

    

 

 This Agreement may be executed by each of the parties hereto in any number of counterparts, and by each of the parties hereto on separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. Facsimile signatures shall be deemed original signatures. 

 

 [The remainder of this page is intentionally left blank] 

 

    

 16 

    

 

 If the foregoing is in accordance with your understanding, please sign and return to us a counterpart hereof, and upon acceptance hereof by you, this letter and such acceptance hereof shall constitute a binding agreement between the Trust and you. 

 

	    	
 Very truly yours, 

	   	   
	    	
 Incapital Trust Products II LLC, 

	    	
 as Depositor 

	   	   
	    	
 By: 

	    	    
	    	    	
 Name: Christopher O’Connor 

	    	    	
 Title: Chief Executive Officer and Manager 

	    	    	    	    
	    	
 Incapital Trust Products II Trust ___, 

	    	
 as Issuer 

	   	   
	    	
 By: 

	
 U.S. Bank National Association 

	    
	    	    	    
	   	   	   
	    	
 By: 

	    	    
	    	    	
 Name: 

	    	    	
 Title: 

 

 Confirmed and accepted 

 as of the date first above written: 

 

 INCAPITAL LLC 

 

	
 By: 

	    
	   	 Name: 
	   	 Title: 

 

    

  

    

 

 SCHEDULE I 

 

 Incapital Trust Products II Trust __ 

 c/o Administrative Agent 

 Incapital Holdings LLC 

 200 South Wacker Drive, Suite 3700 

 Chicago, IL 60606 

 Facsimile: (312) 379-3701 

 The undersigned agrees to purchase the following aggregate principal amount of Certificates: 

 $____________ 

 The terms of such Certificates shall be as follows: 

 CUSIP Number:  ________________ 

 Price to Public:  _________________ 

 Purchasing Agent’s concession:  _______________ 

 Net Proceeds to Issuer:  __________________ 

 Symbol on Amex:  ______________________ 

 Underlying debt securities:  _______________ 

 Regular Distribution Dates:  ___________________ 

 Survivor’s Option:  _______________ 

 Closing Date:  ___________________ 

 [Any other terms] 

	    	
 [Agent] 

	    	    
	   	   
	    	    
	    	
 By: 

	    
	    	    	
 Name: 

	    	    	
 Title: 

 

 ACCEPTED: 

 Incapital Trust Products II Trust__ 

 U.S. Bank Trust National Association, 

 as Delaware Trustee 

	
 By: 

	    
	 Name: 
	 Title: 

    

 18 

    

 EXHIBIT A 

 

 

 Master Selected Dealer Agreement 

 

 «FirstName» 

 «Company» 

 «Address1» 

 «Address2» 

 «City», «State»  «Postal» 

 

 Dear Selected Dealer: 

 

 In connection with public offerings of securities after the date hereof for which we are acting as manager of an underwriting syndicate or are otherwise responsible for the distribution of securities to the public by means of an offering of securities for sale to selected dealers, you may be offered the right as such a selected dealer to purchase as principal a portion of such securities.  This will confirm our mutual agreement as to the general terms and conditions applicable to your participation in any such selected dealer group organized by us as follows. 

 

 1.           Applicability of this Agreement.  The terms and conditions of this Agreement shall be applicable to any public offering of securities (“Securities”), pursuant to a registration statement filed under the Securities Act of 1933, as amended (the “Securities Act”), or exempt from registration thereunder (other than a public offering of Securities effected wholly outside the United States of America), wherein Incapital LLC clearing through Pershing, LLC (the “Account”) (acting for its own Account or for the account of any underwriting or similar group or syndicate) is responsible for managing or otherwise implementing the sale of the Securities to selected dealers (“Selected Dealers”) and has expressly informed you that such terms and conditions shall be applicable.  Any such offering of Securities to you as a Selected Dealer is hereinafter called an “Offering”.  In the case of any Offering where we are acting for the account of any underwriting or similar group or syndicate (“Underwriters”), the terms and conditions of this Agreement shall be for the benefit of, and binding upon, such Underwriters, including, in the case of any Offering where we are acting with others as representatives of Underwriters, such other representatives. 

 

    

 A-1 

    

 

 2.             Conditions of Offering; Acceptance and Purchases.  Any Offering:  (i) will be subject to delivery of the Securities and their acceptance by us and any other Underwriters; (ii) may be subject to the approval of all legal matters by counsel and the satisfaction of other conditions, and (iii) may be made on the basis of reservation of Securities or an allotment against subscription.  We will advise you by electronic mail, facsimile or other form of written communication (“Written Communication”, which term, in the case of any Offering described in Section 3(a) or 3(b) hereof, may include a prospectus or offering circular) of the particular method and supplementary terms and conditions (including, without limitation, the information as to prices and offering date referred to in Section 3(c) hereof) of any Offering in which you are invited to participate.  To the extent such supplementary terms and conditions are inconsistent with any provision herein, such terms and conditions shall supersede any such provision.  Unless otherwise indicated in any such Written Communication, acceptances and other communications by you with respect to an Offering should be sent to Incapital LLC, 200 South Wacker Drive Suite 3700, Chicago IL 60606. We reserve the right to reject any acceptance in whole or in part.  Unless notified otherwise by us, Securities purchased by you shall be paid for on such date as we shall determine, on one day’s prior notice to you, by certified or official bank check, in an amount equal to the Public Offering Prices (as hereinafter defined) or, if we shall so advise you, at such Public Offering Price less the Concession (as hereinafter defined), payable in New York Clearing House funds to the order of Pershing, LLC clearing for the account of Incapital LLC, against delivery of the Securities.  If Securities are purchased and paid for at such Public Offering Price, such Concession will be paid after the termination of the provisions of Section 3(c) hereof with respect to such Securities.  Notwithstanding the foregoing, unless notified otherwise by us, payment for and delivery of Securities purchased by you shall be made through the facilities of The Depository Trust Company, if you are a member, unless you have otherwise notified us prior to the date specified in a Written Communication to you from us or, if you are not a member, settlement may be made through a correspondent who is a member pursuant to instructions which you will send to us prior to such specified date. 

 

 3.            Representations, Warranties and Agreements. 

 

 (a)           Registered Offerings.  In the case of any Offering of Securities that is registered under the Securities Act (“Registered Offering”), we shall provide you with such number of copies of each preliminary prospectus and of the final prospectus relating thereto as you may reasonably request for the purposes contemplated by the Securities Act and the Securities Exchange Act of 1934 (the “Exchange Act”) and the applicable rules and regulations of the Securities and Exchange Commission thereunder.  You represent and warrant that you are familiar with Rule 15c2-8 under the Exchange Act relating to the distribution of preliminary and final prospectuses and agree that you will comply therewith.  You agree to make a record of your distribution of each preliminary prospectus and, when furnished with copies of any revised preliminary prospectus, you will, upon our request, promptly forward copies thereof to each person to whom you have theretofore distributed a preliminary prospectus.  You agree that in purchasing Securities in a Registered Offering you will rely upon no statement whatsoever, written or oral, other than the statements in the final prospectus delivered to you by us.  You will not be authorized by the issuer or other seller of Securities offered pursuant to a prospectus or by any Underwriter to give any information or to make any representation not contained in the prospectus in connection with the sale of such Securities. 

 

 (b)           Offerings Pursuant to an Offering Circular.  In the case of any Offering of Securities, other than a Registered Offering, which is made pursuant to an offering circular or other document comparable to a prospectus in a Registered Offering, we shall provide you with such number of copies of each preliminary offering circular and of the final offering circular relating thereto as you may reasonably request.  You agree that you will comply with the applicable Federal and state laws, and the applicable rules and regulations of any regulatory body promulgated thereunder, governing the use and distribution of offering circulars by brokers or dealers.  You agree that in purchasing Securities pursuant to an offering circular you will rely upon no statements whatsoever, written or oral, other than the statements in the final offering circular delivered to you by us.  You will not be authorized by the issuer or other seller of Securities offered pursuant to an offering circular or by any Underwriter to give any information or to make any representation not contained in the offering circular in connection with the sale of such Securities. 

 

    

 A-2 

    

 

 (c)           Offer and Sale to the Public.  With respect to any Offering of Securities, we will inform you by a Written Communication of the public offering price, the selling concession, the reallowance (if any) to dealers and the time when you may commence selling Securities to the public.  After such public offering has commenced, we may change the public offering price, the selling concession and the reallowance to dealers.  The offering price, selling concession and reallowance (if any) to dealers at any time in effect with respect to an Offering are hereinafter referred to, respectively, as the “Public Offering Price”, the “Concession” and the “Reallowance”.  With respect to each Offering of Securities, until the provisions of this Section 3(c) shall be terminated pursuant to Section 4 hereof, you agree to offer Securities to the public at no more than the Public Offering Price.  If so notified by us, you may sell Securities to the public at a lesser negotiated price than the Public Offering Price, but in an amount not to exceed the “Concession.”  If a Reallowance is in effect, a reallowance from the Public Offering Price not in excess of such Reallowance may be allowed as consideration for services rendered in distribution to dealers who are actually engaged in the investment banking or securities business, who execute the written agreement prescribed by Rule 5141 of Conduct Rules of the Financial Industry Regulatory Authority (the “FINRA”) and who are either members in good standing of FINRA or foreign banks, dealers or institutions not eligible for membership in FINRA who represent to you that they will promptly reoffer such Securities at the Public Offering Price and will abide by the conditions with respect to foreign banks, dealers and institutions set forth in Section 3(e) hereof. 

 

 (d)           Over-allotment; Stabilization; Unsold Allotments.  We may, with respect to any Offering, be authorized to over-allot in arranging sales to Selected Dealers, to purchase and sell Securities for long or short account and to stabilize or maintain the market price of the Securities.  You agree that, upon our request at any time and from time to time prior to the termination of the provisions of Section 3(c) hereof with respect to any Offering, you will report to us the amount of Securities purchased by you pursuant to such Offering which then remain unsold by you and will, upon our request at any such time, sell to us for our account or the account of one or more Underwriters such amount of such unsold Securities as we may designate at the Public Offering Price less an amount to be determined by us not in excess of the Concession.  If, prior to the later of (i) the termination of the provisions of Section 3(c) hereof with respect to any Offering or (ii) the covering by us of any short position created by us in connection with such Offering for our account or the account of one or more Underwriters, we purchase or contract to purchase for our account or the account of one or more Underwriters in the open market or otherwise any Securities purchased by you under this Agreement as part of such Offering, you agree to pay us on demand an amount equal to the Concession with respect to such Securities (unless you shall have purchased such Securities pursuant to Section 2 hereof at the Public Offering Price in which case we shall not be obligated to pay such Concession to you pursuant to Section 2) plus transfer taxes and broker’s commissions or dealer’s mark-up, if any, paid in connection with such purchase or contract to purchase. 

 

    

 A-3 

    

 

 (e)           FINRA.  You represent and warrant that you are actually engaged in the investment banking or securities business and either a member in good standing of the FINRA or, if you are not such a member, you are a foreign bank, dealer or institution not eligible for membership in the FINRA which agrees to make no sales within the United States, its territories or its possessions or to persons who are citizens thereof or residents therein, and in making other sales to comply with the FINRA’s interpretation with respect to free riding and withholding.  You further represent, by your participation in an Offering, that you have provided to us all documents and other information required to be filed with respect to you, any related person or any person associated with you or any such related person pursuant to the supplementary requirements of the FINRA’s interpretation with respect to review of corporate financing as such requirements relate to such Offering. 

 

 You agree that, in connection with any purchase or sale of the Securities wherein a Concession, discount or other allowance is received or granted, (1) you will comply with the provisions of Rule 5141 of the Conduct Rules and (2) if you are a non-FINRA member broker or dealer in a foreign country, you will also comply as though you were an FINRA member, with the provisions of Rule 5141. 

 

 You further agree that, in connection with any purchase of securities from us that is not otherwise covered by the terms of this Agreement (whether we are acting as manager, as a member of an underwriting syndicate or a selling group or otherwise), if a selling Concession, discount or other allowance is granted to you, clauses (1) and (2) of the preceding paragraph will be applicable. 

 

 (f)            Relationship among Underwriters and Selected Dealers.  We may buy Securities from or sell Securities to any Underwriter or Selected Dealer and, without consent, the Underwriters (if any) and the Selected Dealers may purchase Securities from and sell Securities to each other at the Public Offering Price less all or any part of the Concession.  Unless otherwise specified in a separate agreement between you and us, this agreement does not authorize you to act as agent for:  (i) us; (ii) any Underwriter; (iii) the issuer; or (iv) other seller of any Securities in offering Securities to the public or otherwise.  Neither we nor any Underwriter shall be under any obligation to you except for obligations assumed hereby or in any Written Communication from us in connection with any Offering.  Nothing contained herein or in any Written Communication from us shall constitute the Selected Dealers an association or partners with us or any Underwriter or with one another.  If the Selected Dealers, among themselves or with the Underwriters, should be deemed to constitute a partnership for Federal income tax purposes, then you elect to be excluded from the application of Subchapter K, Chapter 1, Subtitle A of the Internal Revenue Code of 1986 and agree not to take any position inconsistent with that election.  You authorize us, in our discretion, to execute and file on your behalf such evidence of that election as may be required by the Internal Revenue Service.  In connection with any Offering, you shall be liable for your proportionate amount of any tax, claim, demand or liability that may be asserted against you alone or against one or more Selected Dealers participating in such Offering, or against us or the Underwriters, based upon the claim that the Selected Dealers, or any of them, constitute an association, an unincorporated business or other entity, including, in each case, your proportionate amount of any expense incurred in defending against any such tax, claim, demand or liability. 

 

    

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 (g)           Blue Sky Laws.  Upon application to us, we shall inform you as to any advice we have received from counsel concerning the jurisdictions in which Securities have been qualified for sale or are exempt under the securities or blue sky laws of such jurisdictions, but we do not assume any obligation or responsibility as to your right to sell Securities in any such jurisdiction. 

 

 (h)           Compliance with Law.  You agree that in selling Securities pursuant to any Offering (which agreement shall also be for the benefit of the issuer or other seller of such Securities) you will comply with all applicable laws, rules and regulations, including the applicable provisions of the Securities Act and the Exchange Act, the applicable rules and regulations of the Securities and Exchange Commission thereunder, the applicable rules and regulations of the FINRA, the applicable rules and regulations of any securities exchange having jurisdiction over the Offering and the applicable laws, rules and regulations specified in Section 3(b) hereof. 

 

 Furthermore, you acknowledge and agree that certain Offerings of Securities (i) may be made in the United States only and/or (ii) may be offerings of Securities of an affiliate of a United States bank but are not savings accounts, deposits or other obligations of any such bank and would not be guaranteed by such bank or insured by the Federal Deposit Insurance Corporation or any other governmental agency. 

 

 4.             Termination, Supplements and Amendments.  This Agreement shall continue in full force and effect until terminated by a written instrument executed by each of the parties hereto.  This Agreement may be supplemented or amended by us by written notice thereof to you, and any such supplement or amendment to this Agreement shall be effective with respect to any Offering to which this Agreement applies after the date of such supplement or amendment.  Each reference to “this Agreement” herein shall, as appropriate, be to this Agreement as so amended and supplemented.  The terms and conditions set forth in Section 3(c) hereof with regard to any Offering will terminate at the close of business on the 30th day after the commencement of the public offering of the Securities to which such Offering relates, but in our discretion may be extended by us for a further period not exceeding 30 days and in our discretion, whether or not extended, may be terminated at any earlier time. 

 

 5.             Successors and Assigns.  This Agreement shall be binding on, and inure to the benefit of, the parties hereto and other persons specified in Section 1 hereof, and the respective successors and assigns of each of them. 

 

 6.             Governing Law.  This Agreement and the terms and conditions set forth herein with respect to any Offering together with such supplementary terms and conditions with respect to such Offering as may be contained in any Written Communication from us to you in connection therewith shall be governed by, and construed in accordance with, the laws of the State of New York. 

 

    

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 Please confirm by signing and returning to us the enclosed copy of this Agreement that your subscription to, or your acceptance of any reservation of, any Securities pursuant to an Offering shall constitute (i) acceptance of and agreement to the terms and conditions of this Agreement (as supplemented and amended pursuant to Section 4 hereof) together with and subject to any supplementary terms and conditions contained in any Written Communication from us in connection with such Offering, all of which shall constitute a binding agreement between you and us, individually or as representative of any Underwriters, (ii) confirmation that your representations and warranties set forth in Section 3 hereof are true and correct at that time, (iii) confirmation that your agreements set forth in Sections 2 and 3 hereof have been and will be fully performed by you to the extent and at the times required thereby and (iv) in the case of any Offering described in Section 3(a) and 3(b) hereof, acknowledgment that you will request and have received from us sufficient copies of the final prospectus or offering circular, as the case may be, with respect to such Offering in order to comply with your undertakings in Section 3(a) or 3(b) hereof. 

 

	    	
 Very truly yours, 

	    	    
	    	
 INCAPITAL LLC 

	    	    
	    	
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