TRUST AGREEMENT
TRUST AGREEMENT, between MSDW Structured Asset Corp. (the "Depositor")
and LaSalle Bank National Association (the "Trustee"), made as of the date set
forth in Schedule I attached hereto, which Schedule together with Schedules II
and III attached hereto, are made a part hereof and are hereinafter referred to
collectively as the "Terms Schedule". The terms of the Standard Terms for Trust
Agreements, dated July 7, 1999 (the "Standard Terms") are, except to the extent
otherwise expressly stated, hereby incorporated by reference herein in their
entirety with the same force and effect as though set forth herein. Capitalized
terms used herein and not defined shall have the meanings defined in the
Standard Terms. References to "herein", "hereunder", "this Trust Agreement" and
the like shall include the Terms Schedule attached hereto and the Standard Terms
so incorporated by reference.
WHEREAS, the Depositor and the Trustee desire to establish the Trust
identified in Schedule I attached hereto (the "Trust") for the primary purposes
of (i) holding the Securities, (ii) entering into any Swap Agreement with the
Swap Counterparty and (iii) issuing the Units;
WHEREAS, the Depositor desires that the respective beneficial
interests in the Trust be divided into transferable fractional shares, such
shares to be represented by the Units; and
WHEREAS, the Depositor desires to appoint the Trustee as trustee of
the Trust and the Trustee desires to accept such appointment;
WHEREAS, the Depositor shall transfer, convey and assign to the Trust
without recourse, and the Trust shall acquire, all of the Depositor's right,
title and interest in and under the Securities and other property identified in
Schedule II to the Trust Agreement (the "Trust Property"); and
WHEREAS, the Trust agrees to acquire the Trust Property specified
herein in consideration for Units having an initial Unit Principal Balance
identified in Schedule I attached hereto, subject to the terms and conditions
specified in the Trust Agreement;
NOW THEREFORE, the Depositor hereby appoints the Trustee as trustee
hereunder and hereby requests the Trustee to receive the Securities from the
Depositor and to issue in accordance with the instructions of the Depositor
Units having the terms specified in Schedule I attached hereto, and the Trustee
accepts such appointment and, for itself and its successors and assigns, hereby
declares that it shall hold all the estate, right, title and interest in any
property contributed to the trust account established hereunder (except property
to be applied to the payment or reimbursement of or by the Trustee for any fees
or expenses which under the terms hereof is to be so applied) in trust for the
benefit of all present and future Holders of the fractional shares of beneficial
interest issued hereunder, namely, the Unitholders, and subject to the terms and
provisions hereof and of the Standard Terms.
IN WITNESS WHEREOF, each of the undersigned has executed this
instrument as of the date set forth in the Terms Schedule attached hereto.
LASALLE BANK NATIONAL ASSOCIATION
as Trustee on behalf of the
Trust identified in Schedule
I hereto, and not in its
individual capacity
By: /s/ Xxxxx X. Xxxx
----------------------------
Name: Xxxxx X. Xxxx
Title: Vice President
MSDW STRUCTURED ASSET CORP.
By: /s/ Xxxxx X. Xxxx
----------------------------
Name: Xxxxx X. Xxxx
Title: Vice President
Attachments: Terms Schedule (consisting of Schedules I, II and III)
Schedule I
(Terms of Trust and Units)
Trust: SATURNS Trust No. 2002-4
Date of Trust Agreement: April 25, 2002
Trustee: LaSalle Bank National Association.
References to Chase Bank of Texas,
National Association in the Standard
Terms shall be inapplicable.
Units: The Trust will issue two classes of
Units: the Class A Units and the
Class B Units. Only the Class A
Units will be publicly offered.
Initial Unit Principal Balance
of the Class A Units: $42,500,000
Initial Notional Amount
of the Class B Units: $42,500,000
Issue Price of Units: Class A Units: 100%
Class B Units: $364,000
Number of Units: Class A Units:
1,700,000 (Unit Principal Balance of
$25 each)
Class B Units:
Initially, one (1) Unit representing
100% of the Notional Amount of the
Class B Units
Minimum Denomination: Class A Units:
$25 and $25 increments in excess
thereof. The minimum denomination
specified in Section 5.01(a) of the
Standard Terms shall not apply. Each
$25 of Unit Principal Balance is a
Unit.
Class B Units:
The entire Notional Amount of such
class; provided, that, the Class B
Units may be held in lesser Notional
Amounts if acquired in connection
with a purchase of less than 100% of
the call rights under the Swap
Agreement if the percentage of Class
B Units (as a percentage of all
Class B Units) acquired is equal to
the percentage of call rights (as a
percentage of all call rights)
acquired. Such Class B Unit
representing such percentage may be
transferred (and subsequently
transferred) in whole only unless
transferred in connection with a
transfer of a lesser amount of call
rights under the Swap Agreement. The
minimum denomination specified in
Section 5.01(a) of the Standard
Terms shall not apply.
Cut-off Date: April 25, 2002
Closing Date: April 25, 0000
Xxxxxxxxx Xxxxxxxx: Xxxxxx Xxxxxx dollars
Business Day: New York, New York and Chicago,
Illinois
Interest Rate: Class A Units:
8.000% per annum on the basis of a
360 day year consisting of twelve 30
day months. During an extension
period with respect to the
securities, while interest will
continue to accrue on the Unit
Principal Balance at 8.000% per
annum and interest will accrue on
any deferred interest at 8.000% per
annum.
Class B Unit Units: 0.091% per annum on the basis of a
360 day year consisting of twelve 30
day months. During an extension
period with respect to the
securities, interest will continue
to accrue on the Unit Notional
Amount at 0.091% per annum and
interest will accrue on any deferred
interest at a rate equal to 8.125%
per annum.
The right of the Class A Units to
interest is pari passu with the
right of the Class B Units to
interest.
The Class B Units are also entitled
to the Class B Unit Payment
Obligation of the Swap Counterparty
specified in Schedule III. Payment
of the Class B Unit Payment
Obligation shall result in a
reduction of the Notional Amount of
the Class B Units equal to the Class
B Unit Corresponding Portion.
Interest Reset Period: Not Applicable
Rating: Class A Units Only:
Baa2 by Moody's
BBB- by S&P
Rating Agencies: Moody's and S&P
Scheduled Final Distribution Date: September 1, 2031. The Units will
have the same final maturity as the
Securities.
Prepayment/Redemption: The Trust Property is subject to
redemption in accordance with the
terms of the Securities and as
described in Schedule II and is
subject to call in accordance with
Schedule III. Any such call or
redemption will cause a redemption
of a corresponding portion of the
Class A Units and a reduction in the
Notional Amount of the Class B
Units.
If the rights under the Swap
Agreement are partially exercised or
if there is a partial redemption of
the Securities, the Trustee will
randomly select Units to be redeemed
in full from the proceeds of such
partial exercise of the Swap
Agreement or partial redemption of
the Securities.
Additional Distribution: If any of the Securities are
redeemed by the Security Issuer
prior to April 25, 2007, each of the
Class A Units being redeemed in
connection with such redemption of
Securities (or related exercise of
the rights under the Swap Agreement)
will receive a pro rata distribution
from the proceeds of the redemption
of the Securities remaining after
payment of principal and interest on
the Class A Units up to a maximum of
$2.50 per Class A Unit. The Class A
Units will also receive any
additional amounts available at
maturity or upon a redemption by the
Security Issuer if all or a portion
of the Swap Agreement has expired
unexercised.
Corporate Trust Office: The definition of "Corporate Trust
Office" in the Standard Terms shall
not apply.
The Corporate Trust Office shall be
the Trustee's Asset-Backed
Securities Trust Services Group
having an office at 000 X. XxXxxxx
Xxxxxx, Xxxxx 0000, Xxxxxxx,
Xxxxxxxx 00000 or such other
addresses as the Trustee may
designate from time to time by
notice to the Unitholders, the
Depositor, the Swap Counterparty and
the Guarantor.
Swap Agreement: The ISDA Agreement referred to in
Schedule III. In addition, in
connection with an additional
issuance of Units, any additional
Swap Agreement entered into in
connection therewith.
Swap Counterparty: Party A to the Swap Agreement
referred to in Schedule III or any
assignee thereof. In addition, in
connection with an additional
issuance of Units, Party A to any
additional Swap Agreement or any
assignee thereof.
In the event that there is more than
one Swap Counterparty at any time
when a partial redemption of the
Securities occurs, the Trustee shall
randomly select which options under
the Swap Agreements shall be
selected for exercise or termination
(and receipt of a Swap Termination
Payment).
Guaranty: Xxxxxx Xxxxxxx Xxxx Xxxxxx & Co.
(the "Guarantor") shall guarantee
the obligations of Xxxxxx Xxxxxxx &
Co. International Limited ("MSIL")
for so long as MSIL is Party A to
any Swap Agreement with the Trust.
Swap Notional Amount: The notional amount specified in
Schedule III.
Swap Payment Date: Not Applicable
Swap Rate: Not Applicable
Additional Swap Agreements: In connection with an additional
issuance of Units, the Depositor may
arrange for the Trust to enter into
an additional Swap Agreement with
identical terms to those of the Swap
Agreement entered into as of the
Closing Date with an additional Swap
Counterparty, except that such Swap
Agreement may have a different Swap
Counterparty, number of options, and
premium amount than the Swap
Agreement entered into on the
Closing Date. The Rating Agency
Condition must be satisfied in
connection with respect to the Swap
Counterparty.
Distribution Date: Each March 1 and September 1,
commencing September 1, 2002.
If any payment with respect to the
Securities held by the Trust is not
received by the Trustee by 12 noon
(New York City time) on a
Distribution Date, the corresponding
distribution on the Units will not
occur until the next Business Day
that the Trust is in receipt of
proceeds of such payment prior to 12
noon, with no adjustment to the
amount distributed.
Record Date: Each February 15 and August 15,
regardless of whether such day is a
Business Day.
Form: Global Security
Depositary: DTC
Trustee Fees and Expenses: As compensation for and in payment
of trust expenses related to its
services hereunder other than
Extraordinary Trust Expenses, the
Trustee will receive Trustee Fees on
each Distribution Date in the amount
equal to $3,750. The Trustee Fee
shall cease to accrue after
termination of the Trust. The
"Trigger Amount" with respect to
Extraordinary Trust Expenses for the
Trust is $25,000 and the Maximum
Reimbursable Amount is $100,000. The
Trustee Fee will be paid by the
Expense Administrator. Expenses will
be reimbursed by the Expense
Administrator in accordance with the
Expense Administration Agreement.
Expense Administrator: The Depositor will act as Expense
Administrator on behalf of the Trust
pursuant to an Expense
Administration Agreement, dated as
of the date of the Trust Agreement
(the "Expense Administration
Agreement"), between the Depositor
as Expense Administrator (the
"Expense Administrator") and the
Trust.
The Expense Administrator will
receive a fee equal to 0.05% per
annum of the principal amount of the
Securities held by the Trust as its
fee, payable on the basis of a 360
day year consisting of twelve 30 day
months. The Expense Administrator
will be entitled to interest on any
deferred fee amounts that would have
been payable but for deferral of
interest on the Securities at the
rate of 8.125% per annum and any
additional amounts available as
interest on deferred interest with
respect to the Securities after
application of such amounts to the
deferred interest payable on the
Units. The Expense Administrator's
fee is payable only from available
interest receipts received with
respect to the Securities after
application of such receipts to
payment of accrued interest on the
Units and any Swap Termination
Payments currently owing. The
Expense Administrator will be
entitled to its fee in connection
with an exercise of the Options or a
redemption of the Securities. The
Expense Administrator will not be
entitled to receive its fee from the
proceeds of a termination other than
in connection with an exercise of
Options or a redemption of
Securities.
The Expense Administrator will be
responsible for paying the Trustee
Fee and reimbursing certain other
expenses of the Trust in accordance
with the Expense Administration
Agreement.
Listing: The Depositor has applied to list
the Class A Units on the New York
Stock Exchange
ERISA Restrictions: None of the restrictions in the
Standard Terms relating to the
Employee Retirement Income Security
Act of 1974, as amended, and related
matters shall apply to the Class A
Units. The restrictions shall apply
to the Class B Units and no ERISA
Benefit Plan may acquire an interest
in the Class B Units.
Alternative ERISA Restrictions: Not applicable
Deemed Representations: Not applicable
QIB Restriction: Applicable to the Class B Units. Not
applicable to the Class A Units.
Trust Wind-Up Event: The Trust Wind-Up Events specified
in Sections 9.01(a), 9.01(c),
9.01(d), 9.01(f) and 9.01(h) shall
not apply. The Trust Wind Events
specified in Sections 9.01(b)
(Security Default), 9.01(e) (Early
Termination Date designated due to
"illegality" or "tax event" under
the Swap Agreement), 9.01(g)
(Disqualified Securities), 9.01(i)
(Excess Expense Event) shall apply.
Pursuant to Section 9.01(j), the
following events also shall
constitute Trust Wind-Up Events: (i)
redemption by the Security Issuer of
all Securities held by the Trust and
(ii) exercise of the call rights
under the Swap Agreement as to all
Securities held by the Trust.
If a Trust Wind-Up Event has
occurred in connection with the
exercise of any Option under the
Swap Agreement and if the Selling
Agent cannot obtain a bid for the
Securities in excess of 100% of the
aggregate Unit Principal Balance of
the Class A Units and accrued
interest on the Securities, then the
Securities will not be sold, the
Swap Counterparty's exercise of the
call option will be rescinded (and
the Swap Counterparty shall be
entitled to exercise such options in
the future) and any related Trust
Wind-Up Event will be deemed not to
have occurred.
Termination: If a Trust Wind-Up Event occurs, any
Securities held by the Trust will be
liquidated (by delivery to the
Security Issuer in the event of a
redemption).
If a Trust Wind-Up Event occurs due
to a redemption of the Securities by
the Security Issuer or exercise of
the call rights under the Swap
Agreement as to all Securities held
by the Trust, (i) amounts received
as accrued interest on the
Securities will be applied to the
Class A Units and the Class B Units
pro rata in proportion to the amount
of accrued interest outstanding on
each such Class, (ii) amounts
received as principal or par on the
Securities will be applied to the
Unit Principal Balance of the Class
A Units up to 100% of the Unit
Principal Balance of each Class A
Unit, (iii) if prior to April 25,
2007, any amount received as a
make-whole premium or redemption
premium on the Securities will be
applied to the Class A Units up to
$2.50 per Class A Unit. Remaining
accrued interest will be applied to
the Expense Administrator's fee. Any
remaining amounts (other than the
Class B Unit Payment Obligation of
the Swap Counterparty) will be paid
to the Swap Counterparty as a Swap
Termination Payment under the Swap
Agreement. Amounts in respect of the
Class B Unit Payment Obligation of
the Swap Counterparty (as described
in Schedule III) shall be paid to
the Class B Units.
If the Trust is terminated for any
other reason, the proceeds of
liquidation will be applied to
redeem the Class A Units and the
Class B Units. The Class A Units
will have a claim on the proceeds of
the liquidation equal to their
aggregate Unit Principal Balance
plus accrued interest. The Class B
Units will have a claim on the
proceeds of liquidation equal to the
value calculated (x) by discounting
each remaining scheduled payment at
a rate of 8.125% (on the basis of a
360 day consisting of twelve 30 day
months) and adding (y) accrued
interest. If the proceeds of the
liquidation is less than the
combined claim amounts of the Class
A Units and the Class B Units, the
proceeds will be distributed in
proportion to the claim amounts of
the Class A Units and the Class B
Units in full satisfaction of the
claims of the Units. If the proceeds
of liquidation exceed the claims of
the Class A Units and the Class B
Units, the excess will be paid to
the Swap Counterparty as a Swap
Termination Payment under the Swap
Agreement.
Self-Tenders by Security Issuer: The Trust will not participate in
any self-tender by the Security
Issuer for the Securities and the
Trustee will not accept any
instructions to the contrary from
the Unitholders.
Terms of Retained Interest: The Depositor retains the right to
receive any and all interest that
accrues on the Securities prior to
the Closing Date. The Depositor will
receive such accrued interest on the
first Distribution Date for the
Units and such amount shall be paid
from the interest payment made with
respect to the Securities on the
first Distribution Date.
The amount of the Retained Interest
is $515,801.
If a Security Default occurs on or
prior to the first Distribution Date
and the Depositor does not receive
such Retained Interest amount in
connection with such Distribution
Date, the Depositor will have a
claim for such Retained Interest,
and will share pro rata with holders
of the Units to the extent of such
claim in the proceeds from the
recovery on the Securities.
Call Option Terms: Not applicable.
Security Default: The definition of Security Default
in the Standard Terms shall not
apply. A "Security Default" shall
mean one of the following events:
(i) the acceleration of the
outstanding Securities under the
terms of the Securities and/or the
applicable Security Agreement and
failure to pay the accelerated
amount on the acceleration date;
(ii) the failure of the Security
Issuer (or the Security Guarantor on
its behalf or under the Security
Guaranty) to pay an installment of
principal of, or any amount of
interest due on, the Securities
after the due date thereof and after
the expiration of any applicable
grace period; or (iii) the
occurrence of any of the events of
default under such Securities and/or
Security Agreement relating to the
insolvency or bankruptcy of the
Security Issuer or the Security
Guarantor.
Sale of Securities: If the Trust must sell the
Securities it holds, the Trust will
sell the Securities through the
Selling Agent in accordance with
Section 9.03(b) and the following
terms. The Selling Agent must
solicit at least three bids for all
of the Securities held by the Trust.
The Selling Agent must solicit at
least three of such bids from
registered broker-dealers of
national reputation, but additional
bids may be solicited from one or
more financial institutions or other
counterparties with credit
worthiness acceptable to the Selling
Agent in its discretion. The Selling
Agent will, on behalf of the Trust,
sell the Securities at the highest
bid price received. The Selling
Agent may not bid for the
Securities.
If the Swap Counterparty exercises
any of its Options other than in
connection with a redemption of the
Securities by the Security Issuer, a
number of Securities corresponding
to the number of Options exercised
by the Swap Counterparty will be
sold by the Selling Agent on behalf
of the Trust.
If the Selling Agent cannot obtain a
bid for the Securities in excess of
100% of the aggregate Unit Principal
Balance of the Class A Units to be
redeemed and accrued interest on the
Securities to be sold, then the
Securities will not be sold, the
Swap Counterparty's exercise will be
rescinded (and the Swap Counterparty
shall be entitled to exercise such
Option(s) in the future) and any
related Trust Wind-Up Event will be
deemed not to have occurred.
Additional Issuance of Units: Upon no less than 5 days' notice to
the Trustee, the Depositor may
deposit additional Securities at any
time in exchange for additional
Units in a minimum aggregate amount
of $250,000 (with respect to the
Class A Units issued ) and, if in
excess of such amount, in a $25
integral multiple in excess thereof
(with respect to the Class A Units
issued). The principal amount of
Securities deposited must be in the
same ratio to the Unit Principal
Balance (and Notional Amount with
respect to the Class B Units) of the
Units received for such deposit as
the ratio of the aggregate principal
amount of the Securities deposited
on the Closing Date to the aggregate
Unit Principal Balance (and
aggregate Notional Amount with
respect to the Class B Units) on the
Closing Date. The Depositor must
either arrange for the Swap
Counterparty and the Trust to
increase proportionally the notional
amount under the Swap Agreement or
arrange for an additional Swap
Agreement to be entered into between
the Trust and an additional Swap
Counterparty. The Depositor must
also arrange the issuance of Class B
Units with a Notional Amount equal
to the Unit Principal Balance being
issued in connection with an
additional issuance. Any accrued
interest will be reflected in the
price of the Securities and Class A
Units. The Rating Agency Condition
must be satisfied in connection with
any such additional issuance.
Selling Agent: Xxxxxx Xxxxxxx & Co. Incorporated.
Notwithstanding any provision of the
Standard Terms to the contrary, any
sale of the Securities shall be
conducted by and through the Selling
Agent and not the Trustee.
Rating Agency Condition: The definition of Rating Agencies
Condition in the Standard Terms
shall not apply.
"Rating Agency Condition": With
respect to any specified action or
determination, means receipt of (i)
oral or written confirmation by
Moody's (for so long as the Units
are outstanding and rated by
Moody's) and (ii) written
confirmation by S&P (for so long as
the Units are outstanding and rated
by S&P), that such specified action
or determination will not result in
the reduction or withdrawal of their
then-current ratings on the Units;
provided, however, that if the
Rating Agency Condition specified
herein is to be satisfied only with
respect to Moody's or S&P, only
clause (i) or clause (ii) shall be
applicable. Such satisfaction may
relate either to a specified
transaction or may be a confirmation
with respect to any future
transactions which comply with
generally applicable conditions
published by the applicable rating
agency.
Eligible Account: The definition of "Eligible Account"
in the Standard Terms shall not
apply.
"Eligible Account": A non-interest
bearing account, held in the United
States, in the name of the Trustee
for the benefit of the Trust that is
either (i) 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 Aa2 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 (ii) a segregated
trust account or segregated accounts
maintained as a segregated account
or as segregated accounts and held
by the Trustee in its Corporate
Trust Office in trust for the
benefit of the Unitholders.
Permitted Investments: The following shall be a Permitted
Investment in addition to the
investments specified in the
Standard Terms:
Units of the Dreyfus Cash Management
Fund Investor Shares or any other
money market funds which are rated
in the highest applicable rating
category by each Rating Agency (or
such lower rating if the Rating
Agency Condition is satisfied).
Amendment of Trust Agreement: Section 12.01(a) of the Standard
Terms shall be replaced with the
following:
(a) The Trust Agreement may be
amended from time to time by the
Depositor and the Trustee without
the consent of any of the
Unitholders, upon delivery by the
Depositor of an Opinion of Counsel
acceptable to the Trustee to the
effect that such amendment will not
materially and adversely affect the
interests of any holder of a Class
of Units that is not voting with
respect to such amendment pursuant
to Section 12.01(b), for any of the
following purposes: (i) to cure any
ambiguity or defect or to correct or
supplement any provision in the
Trust Agreement which may be
defective or inconsistent with any
other provision in the Trust
Agreement; (ii) to provide for any
other terms or modify any other
terms with respect to matters or
questions arising under the Trust
Agreement; (iii) to amend the
definitions of Trigger Amount and
Maximum Reimbursable Amount so as to
increase, but not decrease, the
respective amounts contained in such
definitions or to otherwise amend or
waive the terms of Section 10.05(b)
in any manner which shall not
adversely affect the Unitholders in
any material respect; (iv) to amend
or correct or to cure any defect
with respect to the Trustee Fee or
Expense Administrator's fee; (v) to
evidence and provide for the
acceptance of appointment under the
Trust Agreement by a successor
Trustee; or (vi) to add or change
any of the terms of the Trust
Agreement as shall be necessary to
provide for or facilitate the
administration of the Trust,
including any amendment necessary to
ensure the classification of the
Trust as a grantor trust for United
Stated federal income tax purposes;
provided, however, that in the case
of any amendment pursuant to any of
clauses (i) through (v) above, the
Rating Agency Condition shall be
satisfied with respect to such
amendment. If more than one Class of
Units has been issued under the
Trust Agreement, the provisions of
this Section 12.01(a) shall apply to
each Class of Units that is not
materially and adversely affected by
such amendment.
Section 12.01(c) shall be
re-designated Section 12.01(d).
Section 12.01(b) shall be
re-designated Section 12.01(c).
The following shall constitute
Section 12.01(b):
(b) The Trust Agreement may
be amended from time to time by the
Depositor and the Trustee with the
consent of a 100% of the outstanding
Unit Principal Balance of each Class
of Units materially and adversely
affected thereby. The Rating Agency
Condition shall be satisfied with
respect to such amendment unless
Units representing 100% of the Unit
Principal Balance of all affected
Units vote in favor of such
amendment with notice that the
Rating Agency Condition will not be
satisfied.
The following shall constitute
Section 12.01(e):
(e) For purposes of this Section
12.01, Schedule III to any Trust
Agreement and any Swap Agreements
entered into in connection with any
related Trust shall not be
considered part of the Trust
Agreement. Section 7.02 shall govern
action taken under the Trust
Agreement with respect to any
amendments to such Swap Agreements.
Other Terms: The Trust shall not merge or
consolidate with any other trust,
entity or person and the Trust shall
not acquire the assets of, or an
interest in, any other trust, entity
or person except as specifically
contemplated herein.
The Trustee shall provide to the
Unitholders copies of any notices it
receives with respect to a
redemption of the Securities or an
exercise of the call rights under
the Swap Agreement and any other
notices with respect to the
Securities. Any such notice with
respect to an exercise of call
rights or redemption by the Security
Issuer shall be sent at least 20
calendar days prior to the exercise
date or redemption date, as
applicable.
The reference to "B2" in the
definition of Certificate in the
Standard Terms shall be replaced
with "Exhibit B2".
The reference to "Section 10.02(ix)"
in the definition of Available Funds
in the Standard Terms shall be
replaced with "Section
10.02(a)(ix)".
The reference to "Section 3.04" in
the definition of Unit Account in
the Standard Terms shall be replaced
with "Section 3.05".
The transfer by the Depositor to the
Trustee specified in Section 2.01(a)
of the Standard Terms shall be in
trust.
Section 2.06 of the Standard Terms
shall be incorporated herein by
inserting "cash in an amount equal
to the premium under the Swap
Agreement and" after the phrase
"constituting the Trust Property,"
therein.
The reference to "calendar day" in
the last sentence of Section 3.06 of
the Standard Terms shall be replaced
with "Business Day".
Section 4.02(d) of the Standard
Terms shall be incorporated herein
by striking "and the Trustee on
behalf of the Unitholders" from the
first sentence of the second
paragraph thereof.
Section 5.03(c) of the Standard
Terms shall be incorporated herein
by striking "(if so required by the
Trustee or the Unit Registrar)" from
the first sentence thereof.
Section 7.01(c)(i) of the Standard
Terms shall be incorporated herein
by replacing the first word thereof
("after") with "alter".
Section 7.02 of the Standard Terms
shall be incorporated herein by
striking "(i) the Trustee determines
that such amendment will not
adversely affect the interests of
the Unitholders and (ii)" from the
first sentence thereof, inserting
"on which it may conclusively rely"
after "Opinion of Counsel" in such
sentence, and striking "clause (ii)"
from the second sentence of such
Section.
Section 7.01(c) of the Standard
Terms shall be incorporated herein
by inserting "(i)" between
"Securities" and "would" in the
clause that begins "and provided,
further," and adding at the end of
the same sentence "and (ii) will not
alter the classification of the
Trust for Federal income tax
purposes."
Section 9.03(a) of the Standard
Terms shall be incorporated herein
by striking "or oral" after the "at
any time by" in the third sentence
thereof.
Clause (ix) of Section 10.02(a)
shall not apply.
Section 10.02(a)(x) of the Standard
Terms shall be replaced with the
following:
(x) the Trustee shall have the power
to sell the Securities and other
Trust Property, in accordance with
Article IX and XI, through the
Selling Agent or, if the Selling
Agent shall have resigned or
declined to sell some or all of the
Securities, any broker selected by
the Trustee (at the direction of the
Depositor) with reasonable care, in
an amount sufficient to pay any
amount due to the Swap Counterparty
under the Swap Agreement (including
Termination Payments) or
reimbursable to itself in respect of
unpaid Extraordinary Trust Expenses
and to use the proceeds thereof to
make such payments after the
distribution of funds or Trust
Property to Unitholders. Any such
broker shall be instructed by the
Trustee to sell such Trust Property
in a reasonable manner designed to
maximize the sale proceeds.
Section 10.05(b) of the Standard
Terms shall be incorporated herein
by replacing ", pursuant to the
first sentence of this paragraph"
with "the Trustee shall be
indemnified by the Trust, however,"
in the last sentence thereof.
Section 10.06(a) of the Standard
Terms shall be incorporated herein
by inserting "or association" after
the word "corporation" in the second
sentence thereof.
Section 10.07(a) of the Standard
Terms shall be incorporated herein
by replacing "notice or resignation"
with "notice of resignation" in the
second sentence thereof and striking
the last two sentences thereof.
Section 10.10(b) of the Standard
Terms shall be incorporated herein
by inserting "The Trustee shall not
be liable for the acts or omissions
of any co-trustee." after the last
sentence thereof.
Section 10.14 of the Standard Terms
shall be replaced with the
following:
SECTION 10.14. Non-Petition. Prior
to the date that is one year and one
day after all distributions in
respect of the Units have been made,
none of the Trustee, the Trust or
the Depositor shall take any action,
institute any proceeding, join in
any action or proceeding or
otherwise cause any action or
proceeding against any of the others
under the United States Bankruptcy
Code or any other liquidation,
insolvency, bankruptcy, moratorium,
reorganization or similar law
("Insolvency Law") applicable to any
of them, now or hereafter in effect,
or which would be reasonably likely
to cause any of the others to be
subject to, or seek the protection
of, any such Insolvency Law.
Section 12.01(a) of the Standard
Terms shall be incorporated herein
by replacing "(v)" with "(vi)" in
the last proviso thereof.
Section 12.01(c) of the Standard
Terms shall be incorporated herein
by inserting ", provided at the
expense of the party requesting such
amendment," after "Opinion of
Counsel".
Section 12.05 of the Standard Terms
shall be incorporated herein by
striking "the Trustee and" in the
last sentence of the second
paragraph thereof.
The reference to "its President, its
Treasurer, or one of its Vice
Presidents, Assistant Vice
Presidents or Trust Officers" in the
first sentence of Section 5.02(a) of
the Standard Terms shall be replaced
with "a Responsible Officer".
The reference to "the proper
officers" in the second sentence of
Section 5.02(a) of the Standard
Terms shall be replaced with "a
Responsible Officer".
The reference to "one of its
authorized signatories" in the first
sentence of Section 5.02(d) of the
Standard Terms shall be replaced
with "a Responsible Officer".
The reference to the "Trust" in the
first sentence of Section 5.08(b) of
the Standard Terms shall be replaced
with the "Trustee".
References to D&P in the Standard
Terms shall be incorporated as
references to Fitch Inc. ("Fitch").
Schedule II
(Terms of Trust Property)
Securities: DPL Capital Trust II 8.125% trust
preferred capital securities due
September 1, 2031
Security Issuer: DPL Capital Trust II
Security Guarantor: DPL Inc.
The Security Guarantor will be
considered the "Security Issuer" for
purposes of determining whether the
Security Issuer is an Eligible
Issuer and whether the Securities
are Disqualified Securities.
Guarantor Debentures: The Security Guarantor's 8.125%
junior subordinated debentures due
2031. Such debentures are the only
assets of the Security Issuer.
In the event that the Guarantor
Debentures are exchanged for the
Securities or distributed in
liquidation of the Security Issuer,
the Guarantor Debentures shall be
treated as the Securities for all
purposes and the Security Guarantor
shall be treated as the Security
Issuer for all purposes. Such
exchange or liquidation shall not be
considered a redemption.
Principal Amount: $42,500,000
Security Rate: 8.125%
Credit Ratings: Baa2 by Moody's
BBB- by S&P
Listing: Not applicable
Security Agreement: As to the Securities, the Amended
and Restated Trust Agreement, dated
as of August 31, 2001, among the
Security Guarantor as depositor, The
Bank of New York, as property
trustee (referred to herein as the
property trustee and also as the
"Security Trustee"), The Bank of New
York (Delaware) as Delaware trustee,
and two individual administrative
trustees who are employees or
officers affiliated with the
Security Guarantor, as amended and
supplemented from time to time. As
to the Guarantor Debentures, the
indenture dated as of August 31,
2001, between the Security Guarantor
and The Bank of New York, as
trustee, as supplemented by the
First Supplemental Indenture dated
August 31, 2001, and as may be
further supplemented or amended from
time to time.
Form: Global
Currency of
Denomination: United States dollars
Acquisition Price by Trust: $41,631,500
Security Payment Date: Each March 1 and September 1
Original Issue Date: On or about August 31, 2001
The Security Issuer offered to
exchange the securities then issued
for publicly registered securities
and such offering closed on or about
February 4, 2002.
Maturity Date: September 1, 2031
Sinking Fund Terms: Not Applicable
Redemption Terms: The Guarantor Debentures and the
Securities may be redeemed upon a
"tax event" or an "investment
company event" (as defined in the
underlying indenture and trust
agreement). The Guarantor Debentures
may also be distributed in exchange
for the Securities or in liquidation
of the Issuer. In such event the
Guarantor Debentures would become
the Securities under the Trust
Agreement.
CUSIP No.:/ISIN No. 00000XXX0
Security Trustee: The Bank of New York
Guarantor Debenture Trustee: The Bank of New York
Available Information
Regarding the Security
Issuer (if other than U.S.
Treasury obligations): The Security Guarantor is subject to
the informational requirements of
the Securities Exchange Act of 1934,
as amended, and in accordance
therewith files reports and other
information with the Securities and
Exchange Commission (the
"Commission"). Such reports and
other information can be inspected
and copied at the public reference
facilities maintained by the
Commission at 000 Xxxxx Xxxxxx,
X.X., Xxxxxxxxxx, X.X. 00000 and at
the following Regional Offices of
the Commission: Woolworth Building,
000 Xxxxxxxx, Xxx Xxxx, Xxx Xxxx
00000, and Northwest Atrium Center,
000 Xxxx Xxxxxxx Xxxxxx, Xxxxxxx,
Xxxxxxxx 00000. Copies of such
materials can be obtained from the
Public Reference Section of the
Commission at 000 Xxxxx Xxxxxx,
X.X., Xxxxxxxxxx, X.X. 00000 at
prescribed rates.
XXXXXX XXXXXXX
Date: April 25, 2002
To: SATURNS Trust No. 2002-4 From: Xxxxxx Xxxxxxx & Co. International
Limited
Attn: Asset-Backed Securities Group Contact: Xxxxx Xxxx
SATURNS Trust No. 2002-4
Fax: 000-000-0000 Fax: 000-000-0000
Tel: 000-000-0000 Tel: 000-000-0000
--------------------------------------------------------------------------------
Re: Bond Option Transaction. MS Reference Number SQ1BV
The purpose of this letter agreement is to confirm the terms and
conditions of the Transaction entered into between you and Xxxxxx Xxxxxxx & Co.
International Limited ("MSIL"), with Xxxxxx Xxxxxxx & Co. Incorporated
("MS&Co."), as agent, on the Trade Date specified below (the "Transaction").
This letter agreement constitutes a "Confirmation" as referred to in the
Agreement below.
The definitions and provisions contained in the 1997 ISDA Government
Bond Option Definitions as published by the International Swaps and Derivatives
Association, Inc. ("ISDA") are incorporated into this Confirmation and this
transaction shall be deemed a "Government Bond Option Transaction" for purposes
of such definitions. In the event of any inconsistency between those definitions
and this Confirmation, this Confirmation will govern.
1. This Confirmation supplements, forms a part of, and is subject to,
the ISDA Master Agreement dated as of the date hereof, as amended and
supplemented from time to time (the "Agreement"), between you and us. All
provisions contained in the Agreement govern this Confirmation except as
expressly modified below.
2. The terms of the particular Transaction to which this Confirmation
relates are as follows:
I. General Terms
Trade Date: April 17, 2002
Option Style: American
Option Type: Call
Buyer: MSIL ("Party A")
Seller: SATURNS Trust No. 2002-4 ("Party B")
Bonds: The obligation identified as follows:
Bond Issuer: DPL Capital Trust II
Issue: 8.125% Debentures due 2031
CUSIP: 00000XXX0
Coupon: 8.125%
Maturity Date: September 1, 2031
Face Amount Purchased: USD 42,500,000
Premium: USD $106,625
Premium Payment Date: April 25, 2002
Number of Options: 42,500
Option Entitlement: USD 1,000 of face amount of the Bonds per
Option.
Strike Price: (i) For any Exercise Date prior to April 25,
2007, the redemption price of the Bonds
including any make-whole amount (expressed
as a percentage) subject to a maximum of
110% of the face amount of the Bonds but
exclusive of accrued interest or (ii) for
any Exercise Date on or after April 25,
2007, 100% of the face amount of the Bonds
exclusive of accrued interest.
Calculation Agent: Party A
II. Exercise Terms
Automatic Exercise: Inapplicable
Exercise Period: Any Business Day from, and including, 9:00
a.m. (New York time) on April 25, 2007, to,
and including, the Expiration Time on the
Expiration Date; provided, however, the
Exercise Period shall also include any
Business Day prior to April 25, 2007, if
notice of redemption has been delivered by
the Bond Issuer.
Exercise Date: For each Option exercised, the day during
the Exercise Period on which that Option is
exercised.
Rescission of Exercise: If Party B cannot obtain a bid for the Bonds
held by it in excess of the Strike Price
together with accrued interest on the Bonds,
then Party A's notice of exercise shall be
rescinded and the Options for which notice
of exercise was given shall continue in full
force and effect without regard to such
provision of notice.
Multiple Exercise: Inapplicable
Partial Exercise: Inapplicable
Minimum Number of Options: 1
Written Confirmation of Exercise: Applicable. Buyer shall give irrevocable
exercise notice which may be given orally
(including by telephone) during the Exercise
Period but no later than the Notification
Date. Buyer will execute and deliver a
written exercise notice confirming the
substance of such oral notice, however,
failure to provide such written notice will
not affect the validity of the oral notice.
Limitation on Rights of MSIL: Buyer may, by written notice thereof to
Seller, delegate its rights to provide a
notice of exercise hereunder to a third
party (the "Third Party"). Any such
delegation will be irrevocable by Buyer
without the written consent of the Third
Party. Any such Third Party will have the
same rights and obligations regarding
providing notice of exercise hereunder as
the Buyer had prior to such delegation.
While any such delegation is effective,
Seller will only recognize a notice of
exercise that is provided by the Third
Party.
Notification Date: Any date at least 25 calendar days prior to
the Exercise Date.
Limited Right to Confirm Exercise: Inapplicable
Expiration Date: September 1, 2028
Expiration Time: 4:00 p.m. New York time
Business Days: New York and Chicago
III. Settlements:
Settlement: Cash Settlement
Spot Price: The cash proceeds received by Party B in
connection with sale of the Bonds by Party
B, excluding any amounts in respect of
accrued interest. In the event of a
redemption by the Bond Issuer, the
redemption price paid by the Bond Issuer,
excluding accrued interest.
Payment Obligation of Party A: To the Expense Administrator (the "Expense
Administrator Payment Obligation"):
If the Bond Issuer has not given notice of
redemption in connection with the exercise
of Options hereunder and if any such
exercise is an exercise of less than all
Options remaining unexercised hereunder,
Party A shall pay to the Expense
Administrator an amount equal to the present
value of a stream of payments equal to
$7,153 payable on each payment date for the
Bonds until the maturity of the Bonds
discounted at a rate of 6.0% per annum on
the basis of a 360 day year consisting of
twelve 30 day months from the date of such
exercise until the Scheduled Final
Distribution Date (as defined in the Trust
Agreement), assuming for this purpose that
the Trust (as defined in the Trust
Agreement) is not terminated prior to the
Scheduled Final Distribution Date,
multiplied by the Option Entitlement
multiplied by the number of Options
exercised and divided by $42,500,000
To Party B for Payment on the Class B Units
(the "Class B Unit Payment Obligation")
Upon any exercise hereunder or upon any
redemption of Bonds held by Party B by the
Bond Issuer, Party A shall pay to Party B,
for payment to the registered holder of the
Class B Units, the present value of the
Class B Unit Interest, calculated as the sum
of (i) the amount of outstanding accrued
interest in respect of the Class B Unit
Corresponding Portion and (ii) the present
value of the remaining scheduled payments
(other than any accrued interest) in respect
of the Class B Unit Corresponding Portion
discounted at a rate of 8.125% per annum on
the basis of a 360 day year consisting of
twelve 30 day months.
Settlement Date: As applicable, the Business Day of
settlement of the sale of the Bonds by Party
B or the Business Day of settlement of a
redemption of Bonds by the Bond Issuer.
3. Additional Definitions.
"Class B Unit" means the Class B Unit issued under the Trust Agreement.
"Class B Unit Corresponding Portion" means the portion of the Class B
Unit to be redeemed or corresponding notional amount reduction under the Trust
Agreement in connection with an exercise hereunder or a redemption by the Bond
Issuer.
"Class B Unit Interest" means at any time and from time to time, the
interest on the Class B Unit Corresponding Portion that would have accrued at
the rate and in the manner specified in the Trust Agreement and would have been
payable at the times specified in the Trust Agreement had (i) the rights to
purchase the Bonds hereunder not been exercised and (ii) had no redemption by
the Bond Issuer occurred. For the avoidance of doubt, Class B Unit Interest
shall not include amounts actually paid on the Class B Units in connection with
the exercise of the right to purchase the Bonds hereunder or a redemption by the
Bond Issuer and the Class B Unit Interest shall not be construed to entitle the
Class B Unit to any "double" payment of interest.
"Trust Agreement" means the trust agreement dated as of April 25, 2002,
between the MSDW Structured Asset Corp. and LaSalle Bank National Association.
4. Representations. Xxxxxx Xxxxxxx & Co. Incorporated is acting as
agent for both parties but does not guarantee the performance of Party A.
5. Additional Termination Event. As set forth in the Agreement, a Trust
Wind-Up Event will result in an Additional Termination Event under the Agreement
with respect to which Party B shall be the Affected Party and this Transaction
shall be an Affected Transaction.
6. Swap Termination Payments. In the event an Early Termination Date is
designated with respect to which this Transaction is an Affected Transaction,
there shall be payable to Party A as a termination payment in lieu of the
termination payment determined in accordance with Section 6(e) of the Agreement
an amount equal to the excess (if any) of the sale proceeds (or redemption
amount), excluding accrued interest, in excess of the Strike Price (expressed as
a dollar amount).
7. Assignment. The rights under this Confirmation and the Agreement may
be assigned at any time and from time to time in whole or in part; provided that
the Rating Agency Condition (as defined in the Trust Agreement) is satisfied
with respect to such assignment and any transfer. The transferee in any such
assignment or transfer must be a qualified institutional buyer as defined in
Rule 144A under the Securities Act of 1933.
8. Account Details.
Payments to Party A: Citibank, N.A., New York
SWIFT BIC Code: XXXXXX00
ABA No. 021 000 089
FAO: Xxxxxx Xxxxxxx & Co. International Limited
Account No. 0000-0000
Operations Contact: Xxxxxxx Xxxx
Tel 000-000-0000
Fax 000-000-0000
Payments to Party B: LaSalle Bank, Chicago, Illinois
ABA No. 071 000 505
Reference: SATURNS 2002-4
Unit Account / AC-0000000/
Account No.: 00-0000-000
Operations Contact: Xxxx Xxxxxxxx
Tel: 000-000-0000
Fax: 000-000-0000
Please confirm that the foregoing correctly sets forth the terms of our
agreement MS Reference Number SQ1BV by executing this Confirmation and returning
it to us.
Best Regards,
XXXXXX XXXXXXX & CO. INTERNATIONAL LIMITED
BY: /s/ Xxxxx Xxxx
-----------------------------------
Name: Xxxxx Xxxx
Title: Attorney in fact
Acknowledged and agreed as of the date first written above:
SATURNS TRUST NO. 2002-4
BY: LaSalle Bank National Association,
solely as Trustee and not in its individual capacity.
BY: /s/ Xxxxx X. Xxxx
-----------------------------------
Name: Xxxxx X. Xxxx
Title: Vice President
XXXXXX XXXXXXX & CO. INCORPORATED hereby agrees to and
acknowledges its role as agent for both parties in accordance with
the Schedule to the Agreement.
BY: /s/ Xxxx Xxxxx
-----------------------------------
Name: Xxxx Xxxxx
Title: Attorney in fact
