Common use of Service Charge to Be Paid to BD Clause in Contracts

Service Charge to Be Paid to BD. (a) On the initial Dividend Distribution Date for a particular series of AMPS the Company shall pay to BD the product of (i) a fraction, the numerator of which is the number of days in the initial Dividend Period with respect to such series and the denominator of which is 360 days, times (ii) the Initial Broker-Dealer Fee Rate times (iii) the aggregate liquidation preference of the AMPS of such series placed by BD on the Date of Original Issue thereof. (b) On each Dividend Distribution Date (other than the initial Dividend Distribution Date) for a particular series of AMPS following each Auction Date, the Company shall pay to BD an amount initially equal to the product of the Broker-Dealer Fee Rate times (i) if an Auction was held on such Auction Date, the sum of (A) the aggregate liquidation preference of the AMPS of such series placed by BD in such Auction that were (1) the subject of submitted Bids of Existing Holders submitted by BD and continued to be held as a result of such submission, (2) the subject of Submitted Bids of Potential Holders submitted by BD and purchased as a result of such submission or (3) the aggregate liquidation preference of the AMPS of such series subject to valid Hold Orders (determined in accordance with the Articles Supplementary) submitted to the Auction Agent by BD and (B) the aggregate liquidation preference of the AMPS of such series deemed to be subject to Hold Orders by Existing Holders pursuant to the Articles Supplementary that were acquired by such Existing Holders through BD, or (ii) if an Auction was not held on such Auction Date, the aggregate liquidation preference of the AMPS of such series that were acquired by Existing Holders through BD multiplied by a fraction, the numerator of which is the number of days in the Dividend Period to which such Dividend Distribution Date for such series relates and the denominator of which is 360. For purposes of subclauses (i) and (ii) of the foregoing sentence, if any Existing Holder who acquired AMPS through BD transfers those AMPS to another Person other than pursuant to an Auction, then the broker-dealer for the AMPS so transferred shall continue to be BD.