CorTS(R) SUPPLEMENT 2001-22
between
STRUCTURED PRODUCTS CORP.,
as Depositor
and
U.S. BANK TRUST NATIONAL ASSOCIATION,
as Trustee
CorTS(R) Trust III For IBM Debentures
TABLE OF CONTENTS
Page
Preliminary Statement ............................................1
Section 1. Certain Defined Terms.................................1
Section 2. Creation and Declaration of Trust; Sale of Term
Assets; Acceptance by Trustee.........................5
Section 3. Designation..........................................5
Section 4. Date of the Certificates..............................5
Section 5. Certificate Principal Balance and Denominations;
Additional Term Assets................................6
Section 6. Currency of the Certificates..........................6
Section 7. Form of Securities....................................6
Section 8. Call Warrants.........................................6
Section 9. Certain Provisions of Base Trust Agreement Not
Applicable............................................7
Section 10. Distributions.........................................7
Section 11. Termination of Trust..................................9
Section 12. Conditional Right to Shorten Maturity................10
Section 13. Limitation of Powers and Duties......................10
Section 14. Compensation of Trustee..............................11
Section 15. Modification or Amendment............................12
Section 16. Accounting...........................................12
Section 17. No Investment of Amounts Received on Term Assets....12
Section 18. No Event of Default..................................12
Section 19. Notices..............................................12
Section 20. Access to Certain Documentation......................13
Section 21. Advances.............................................13
Section 22. Ratification of Agreement............................13
Section 23. Counterparts.........................................13
Section 24. Governing Law........................................13
Section 25. Affiliate Exchange Right.............................13
Section 26. Certificate of Compliance............................13
Section 27. Appointment of Co-Trustee............................14
Exhibit A..-- Identification of the Term Assets as of Closing Date
Exhibit B..-- Terms of the Certificates as of Closing Date
Exhibit C..-- Form of Certificates
Exhibit D..-- Form of Call Warrant
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CorTS(R) SUPPLEMENT 2001-22, dated as of May 9, 2001 (this "Series
Supplement"), between STRUCTURED PRODUCTS CORP., a Delaware
corporation, as depositor (the "Depositor"), and U.S. Bank TRUST
National Association, a national banking association, as trustee (the
"Trustee").
PRELIMINARY STATEMENT
Pursuant to the Base Trust Agreement, dated as of December 15, 2000 (the
"Base Trust Agreement" and, as supplemented pursuant to the Series Supplement,
the "Agreement"), between the Depositor and the Trustee, such parties may at any
time and from time to time enter into a series supplement supplemental to the
Base Trust Agreement for the purpose of creating a trust. Section 5.13 of the
Base Trust Agreement provides that the Depositor may at any time and from time
to time direct the Trustee to authenticate and deliver, on behalf of any such
trust, a new Series of trust certificates. Each trust certificate of such new
Series of trust certificates will represent a fractional undivided beneficial
interest in such trust. Certain terms and conditions applicable to each such
Series are to be set forth in the related series supplement to the Base Trust
Agreement.
Pursuant to this Series Supplement, the Depositor and the Trustee shall
create and establish a new trust to be known as CorTS(R) Trust III For IBM
Debentures, and a new Series of trust certificates to be issued thereby, which
certificates shall be known as the CorTS(R) Certificates, and the Depositor and
the Trustee shall herein specify certain terms and conditions in respect
thereof.
The Certificates shall be Fixed Rate Certificates issued in one Class (the
"Certificates"). The Trust also is issuing call options with respect to
$95,480,000 principal amount of Term Assets (the "Call Warrants").
On behalf of and pursuant to the authorizing resolutions of the Board of
Directors of the Depositor, an authorized officer of the Depositor has
authorized the execution, authentication and delivery of the Certificates, and
has authorized the Base Trust Agreement and this Series Supplement in accordance
with the terms of Section 5.13 of the Base Trust Agreement.
Section 1... Certain Defined Terms. (a) All terms used in this Series
Supplement that are defined in the Base Trust Agreement, either directly or by
reference therein, have the meanings assigned to such terms therein, except to
the extent such terms are defined or modified in this Series Supplement or the
context requires otherwise. The Base Trust Agreement also contains rules as to
usage which shall be applicable hereto.
(b) Pursuant to Article I of the Base Trust Agreement, the meaning of
certain defined terms used in the Base Trust Agreement shall, when applied to
the trust certificates of a particular Series, be as defined in Article I but
with such additional provisions and modifications as are specified in the
related series supplement. With respect to the Certificates, the following
definitions shall apply:
"Acceleration": The acceleration of the maturity of the Term Assets after
the occurrence of any default on the Term Assets other than a Payment Default.
"Agreement": Agreement shall have the meaning specified in the Preliminary
Statement to this Series Supplement.
"Base Trust Agreement": Base Trust Agreement shall have the meaning
specified in the Preliminary Statement to this Series Supplement.
"Business Day": Any day other than a Saturday, Sunday or a day on which
banking institutions in New York, New York are authorized or obligated by law,
executive order or governmental decree to be closed.
"Call Warrant": Call Warrant shall have the meaning specified in the
Preliminary Statement to this Series Supplement.
"Certificateholder" or "Holder": With respect to any Certificate, the
Holder thereof.
"Certificateholders" or "Holders": The Holders of the Certificates.
"Closing Date": May 9, 2001.
"Certificate Account": With respect to this Series, the Eligible Account
established and maintained by the Trustee in its corporate trust department in
the Trustee's name for the benefit of the related Certificateholders, into which
all payments made on or with respect to the related Term Assets will be
deposited.
"Collection Period": The period from (but excluding) the preceding
Distribution Date (or, in the case of the first Distribution Date, from and
including the Closing Date), through and including the current Distribution
Date.
"Corporate Trust Office": U.S. Bank Trust National Association, 000 Xxxx
Xxxxxx, Xxxxx 0000, Xxx Xxxx, Xxx Xxxx 00000, Attention: Corporate Trust or such
other corporate trust office as the Trustee shall designate in writing to the
Depositor and the Certificateholders.
"Depositary": The Depository Trust Company.
"Distribution Date": Any Scheduled Distribution Date, the Maturity Date or
any Term Assets Default Distribution Date or any Term Assets Redemption
Distribution Date.
"Fixed Payment": Each equal semiannual installment of interest payable on
the Term Assets on each June 1 and December 1 or, if any such day is not a
Business Day, then the immediately following Business Day, except that the final
installment of interest will be payable on December 1, 2096, commencing on June
1, 2001 through and including December 1, 2096.
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"Interest Collections": With respect to any Distribution Date, all payments
received by the Trustee, during the Collection Period ending on such
Distribution Date, in respect of (i) interest on the Term Assets and (ii)
penalties or other amounts required to be paid because of late payments on the
Term Assets.
"Maturity Date": December 1, 2096.
"Payment Default": A default by the Term Assets Issuer in the payment of
any amount due on the Term Assets after the same becomes due and payable (and
the expiration of any applicable grace period on the Term Assets).
"Place of Distribution": New York, New York.
"Rating Agency": Each of Xxxxx'x Investors Service, Inc. ("Moody's"), and
Standard & Poor's Ratings Services ("S&P"), a division of The XxXxxx-Xxxx
Companies, Inc., and any successor to either of the foregoing. References to
"the Rating Agency" in the Agreement shall be deemed to be each such credit
rating agency.
"Record Date": With respect to any Distribution Date, the day immediately
preceding such Distribution Date.
"Scheduled Distribution Date": The first day of each June and December or,
if any such day is not a Business Day, then the immediately following Business
Day, except that the final Scheduled Distribution Date shall be December 1,
2096, commencing June 1, 2001 through and including December 1, 2096; provided,
however, that payment on each Scheduled Distribution Date shall be subject to
prior payment of interest or principal, as applicable, on the Term Assets.
"Specified Currency": United States Dollars.
"Tax Event": Tax Event means the receipt by the Term Assets Issuer of an
opinion of a nationally recognized independent tax counsel (which may be counsel
to the Term Assets Issuer) to the effect that on or after the date of the
issuance of the Term Assets, as a result of (i) any amendment to, clarification
of, or change (including any announced prospective change) in, the laws (or any
regulations thereunder) of the United States, (ii) any judicial decision,
official administrative pronouncement, ruling, regulatory procedure, notice or
announcement, including any notice or announcement of intent to adopt such
procedures or regulations (an "Administrative Action"), or (iii) any amendment
or clarification of, or change in the official position or the interpretation of
such Administrative Action or judicial decision that differs from the
theretofore generally accepted position, in each case, on or after, the date of
the issuance of the Term Assets, such change in tax laws creates a more than
insubstantial risk that interest paid by the Term Assets Issuer on the Term
Assets is not, or will not be, deductible, in whole or in part, by the Term
Assets Issuer for purposes of United States federal income tax law.
"Term Assets": As of the Closing Date, $95,480,000 aggregate principal
amount of 7.125% debentures issued by the Term Assets Issuer, sold to the
Trustee by the Depositor and identified on Exhibit A hereto. Additional Term
Assets may also be sold to the Trustee from time to time pursuant to Section 5
of this Series Supplement.
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"Term Assets Default Distribution Date": The date on which the Trustee
makes a distribution of the proceeds received in connection with a recovery on
the Term Assets (in the case of Payment Default, after deducting any costs
incurred in connection therewith) following a Payment Default or an Acceleration
or other default with respect to the Term Assets.
"Term Assets Issuer": International Business Machines Corporation ("IBM").
"Term Assets Payment Date": The first day of each June and December,
commencing on June 1, 2001 and ending on December 1, 2096; provided, however,
that if any Term Assets Payment Date would otherwise fall on a day that is not a
Business Day, such Term Assets Payment Date will be the following Business Day.
"Term Assets Prospectus": The prospectus of the Term Assets Issuer, dated
December 3, 1996, as supplemented by a supplement thereto, dated December 3,
1996, with respect to the Term Assets.
"Term Assets Redemption Distribution Date": The date on which the Trustee
receives payment for a redemption of Term Assets in accordance with their terms;
provided, however, if the Trustee receives such payment after 10:00 A.M. (New
York City time) on such date, the Term Assets Redemption Distribution Date shall
be on the next Business Day.
"Term Assets Trustee": The trustee for the Term Assets.
"Trust": CorTS(R)Trust III For IBM Debentures.
"Trust Termination Event": (a) the payment in full at maturity or upon
early redemption of the Certificates, (b) the distribution of the proceeds
received upon a recovery on the Term Assets in the case of a Payment Default
(after deducting the costs incurred in connection therewith) or an Acceleration
thereof (or other default with respect to the Term Assets), (c) the distribution
in kind of the Term Assets upon a tender by an affiliate of the Depositor of
100% of the then outstanding Call Warrants and Certificates in exchange for 100%
of the Term Assets, or (d) the sale by the Trustee in accordance with the Call
Warrants of all the Term Assets and the distribution in full of all amounts due
to Certificateholders.
"Voting Rights": The Certificateholders shall have 100% of the total Voting
Rights with respect to the Certificates, which Voting Rights shall be allocated
among all Holders of Certificates in proportion to the principal balances held
by such Holders on any date of determination.
"Warrant Agent Agreement": The Warrant Agent Agreement, dated as of the
date hereof, between the Depositor and U.S. Bank Trust National Association, as
Warrant Agent and as Trustee, as the same may be amended or modified from time
to time.
"Warrant Exercise Date": Warrant Exercise Date shall have the meaning given
to such term in the Call Warrant.
"Warrant Exercise Purchase Price": An amount paid by the
Warrantholder on each Warrant Exercise Date equal to 98.9584% of the principal
amount of the Term Assets being
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purchased pursuant to the exercise of the Call Warrants plus accrued and unpaid
interest to and including the Warrant Exercise Date.
"Warrantholder": Warrantholder shall have the meaning given to such term in
the Call Warrant.
Section 2. Creation and Declaration of Trust; Sale of Term Assets;
Acceptance by Trustee. (a) The Trust, of which the Trustee is the trustee, is
hereby created under the laws of the State of New York for the benefit of the
holders of the Certificates. The Trust shall be irrevocable.
(b) The Depositor, concurrently with the execution and delivery hereof and
pursuant to Section 2.1 of the Base Trust Agreement, has delivered or caused to
be delivered to the Trustee the Term Assets.
(c) The Depositor does hereby sell, transfer, assign, set over and
otherwise convey to the Trustee on behalf and for the benefit of the holders of
the Certificates and the Trust, without recourse, the Term Assets. The Trustee
shall pay the purchase price for the Term Assets by delivering to, or at the
direction of, the Depositor, all of the Certificates on the Closing Date and
making the payments identified in Section 10(l) of this Series Supplement.
(d) The Trustee hereby (i) acknowledges such sale, deposit and delivery,
pursuant to subsections (b) and (c) above, and receipt by it of the Term Assets,
(ii) accepts the trusts created hereunder in accordance with the provisions
hereof and of the Base Trust Agreement but subject to the Trustee's obligation,
as and when the same may arise, to make any payment or other distribution of the
assets of the Trust as may be required pursuant to this Series Supplement, the
Base Trust Agreement and the Certificates, and (iii) agrees to perform the
duties herein or therein required and any failure to receive reimbursement of
expenses and disbursements under Section 14 hereof shall not release the Trustee
from its duties herein or therein.
Section 3. Designation. There is hereby created a Series of trust
certificates to be issued pursuant to the Base Trust Agreement and this Series
Supplement to be known as the "CorTS(R) Certificates." The Certificates shall be
issued in one class, in the amount set forth in Section 5 and with the
additional terms set forth in Exhibit B to this Series Supplement. The
Certificates shall be issued in substantially the form set forth in Exhibit C to
this Series Supplement with such necessary or appropriate changes as shall be
approved by the Depositor and the Trustee, such approval to be manifested by the
execution and authentication thereof by the Trustee. The Certificates shall
evidence undivided ownership interests in the assets of the Trust, subject to
the liabilities of the Trust and shall be payable solely from payments or
property received by the Trustee on or in respect of the Term Assets.
Section 4. Date of the Certificates. The Certificates that are
authenticated and delivered by the Trustee to or upon Depositor Order on the
Closing Date shall be dated the Closing Date. All other Certificates that are
authenticated after the Closing Date for any other purpose under the Agreement
shall be dated the date of their authentication.
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Section 5. Certificate Principal Balance and Denominations; Additional Term
Assets. On the Closing Date, up to 3,779,416 Certificates with a Certificate
Principal Balance of $94,485,400 may be authenticated and delivered under the
Base Trust Agreement and this Series Supplement. The Certificate Principal
Balance shall initially equal 98.9584% of the initial principal amount of Term
Assets sold to the Trustee and deposited in the Trust. Such Certificate
Principal Balance shall be calculated without regard to Certificates
authenticated and delivered upon registration of, transfer of, or in exchange
for, or in lieu of, other Certificates pursuant to Sections 5.3, 5.4 or 5.5 of
the Base Trust Agreement. The Depositor may sell to the Trustee additional Term
Assets on any date hereafter upon at least five (5) Business Days notice to the
Trustee and upon (i) satisfaction of the Rating Agency Condition and (ii)
delivery of an Opinion of Counsel to the effect that the sale of such additional
Term Assets will not materially increase the likelihood that the Trust would
fail to qualify as a grantor trust under the Code. Upon such sale to the
Trustee, the Trustee shall deposit such additional Term Assets in the
Certificate Account, and shall authenticate and deliver to the Depositor, or its
order, Certificates in a Certificate Principal Balance equal to 98.9584% of the
principal amount of such additional Term Assets. Any such additional
Certificates authenticated and delivered shall rank pari passu with any
Certificates previously issued in accordance with this Series Supplement.
Section 6. Currency of the Certificates. All distributions on the
Certificates will be made in the Specified Currency.
Section 7. Form of Securities. The Trustee shall execute and deliver the
Certificates in the form of one or more global certificates registered in the
name of DTC or its nominee.
Section 8. Call Warrants. (a) Concurrently with the execution of this
Series Supplement, the Trustee, on behalf of the Trust, shall execute the
Warrant Agent Agreement and one Call Warrant, dated as of the date hereof and
substantially in the form of Exhibit D hereto, initially evidencing all of the
Call Warrants. The Trustee shall perform the Trust's obligations under the
Warrant Agent Agreement and the Call Warrants in accordance with their
respective terms.
(b) The Trustee may not enter into any amendment or modification of the
Call Warrant except as provided in Section VI.4 of the Call Warrant.
(c) The Trustee shall notify the Certificateholders and the Rating Agencies
upon receipt of any notice, pursuant to the provision of the Call Warrants, of a
Warrantholder's intent to exercise its Call Warrants. Such notice from the
Trustee shall state the Warrant Exercise Date, that such exercise of the Call
Warrant is conditional upon receipt by the Trustee of the Warrant Exercise
Purchase Price with respect to such exercise, that the Trustee will select by
lot for redemption a principal amount of Certificates equal to 98.9584% of the
principal amount of Term Assets to be purchased, and that such redemption of the
Certificates will occur on the Warrant Exercise Date at a price equal to $25 per
Certificate plus accrued and unpaid interest to the date of redemption. A holder
of a Call Warrant may rescind its notice given pursuant to the terms of the Call
Warrant and any rescission of such notice or failure to pay the Warrant Exercise
Purchase Price pursuant to a rescinded notice shall not adversely affect the
right of a Warrantholder to deliver a notice thereafter. The Trustee shall
promptly notify
6
Certificateholders of any rescission of such a notice and that the redemption of
Certificates in connection with such exercise is also rescinded.
(d) Upon the exercise of any Call Warrant in accordance with the terms of
the Call Warrants, the Trustee, after receipt of the Warrant Exercise Purchase
Price and the Call Warrants being exercised, shall deliver or cause to be
delivered upon the written direction of the Warrant Agent, by 1:00 p.m. (New
York City time) on the related Warrant Exercise Date, the Term Assets as
specified in the exercised Call Warrant by instructing the Depositary to credit
such Term Assets to the account of the exercising Warrantholder or its nominee,
provided that the Trustee shall have received notice of the exercise of such
Call Warrant from the Warrant Agent in accordance with the terms of the Call
Warrants and shall have received from the Warrant Agent an amount, in
immediately available funds in a form acceptable to the Trustee, equal to the
Warrant Exercise Purchase Price for such Term Assets by 1:00 p.m. (New York City
time) on the related Warrant Exercise Date.
(e) Upon receipt of the Warrant Exercise Purchase Price pursuant to this
Section 8 and the Call Warrants being exercised, the Trustee shall deposit the
amount of the Warrant Exercise Purchase Price in the Certificate Account on or
before the related Warrant Exercise Date. The Certificates to be redeemed will
be selected by the Trustee or DTC by lot and will be paid for on the Warrant
Exercise Date.
Section 9. Certain Provisions of Base Trust Agreement Not Applicable. The
provisions of Sections 2.3, 3.2, 3.3, 3.4, 3.5, 3.6, 3.8, 3.10, 3.11, 3.12,
5.16, 5.17, 6.1(c) through (e), 6.6 and 9.1 of the Base Trust Agreement and any
other provision of the Base Trust Agreement, which imposes obligations on, or
creates rights in favor of, the Trustee or the Certificateholders as a result of
or in connection with an "Event of Default" or "Administrative Agent Termination
Event" shall be inapplicable with respect to the Certificates. In addition,
there is no "Administrative Agent" specified herein, and all references to
"Administrative Agent" in the Base Trust Agreement, therefore shall be
inapplicable with respect to the Certificates.
Section 10.. Distributions.
(a) On each Scheduled Distribution Date, the Trustee shall distribute to
the Certificateholders the related Fixed Payment, to the extent of Interest
Collections, and on the Maturity Date shall distribute to the Certificateholders
the principal balance of the Certificates (in the amount of $94,485,400) and an
additional distribution of principal of $994,600, to the extent the principal of
the Term Assets is received by the Trustee on such date, and shall distribute
all other amounts held in the Trust pursuant to Section 10(k) of this Series
Supplement; provided, however, if any such payment with respect to the Term
Assets is made to the Trustee after the Term Assets Payment Date on which such
payment was due, the Trustee shall distribute such amount received on the
Business Day following such receipt.
(b) In the event of a Payment Default, the Trustee shall proceed against
the Term Assets Issuer on behalf of the Certificateholders to enforce the Term
Assets or otherwise to protect the interests of the Certificateholders, subject
to the receipt of indemnity in form and substance satisfactory to the Trustee;
provided that, holders of the Certificates representing a
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majority of the Voting Rights on the Certificates will be entitled to direct the
Trustee in any such proceeding or direct the Trustee to sell the Term Assets,
subject to the Trustee's receipt of satisfactory indemnity. If the Trustee is
directed to sell the Term Assets, the Trustee shall solicit bids for the sale of
the Term Assets with settlement thereof on or before the third (3rd) Business
Day after such sale from three leading dealers in the relevant market. Any of
the following dealers shall be deemed to qualify as leading dealers: (1) Credit
Suisse First Boston Corporation, (2) Xxxxxxx, Xxxxx & Co., (3) Xxxxxx Brothers
Inc., (4) Xxxxxxx Lynch, Xxxxxx, Xxxxxx & Xxxxx Incorporated, (5) UBS Securities
LLC and (6) Xxxxxxx Xxxxx Xxxxxx Inc.; provided, however, that no bid from
Xxxxxxx Xxxxx Xxxxxx Inc. or any affiliate thereof shall be accepted unless such
bid equals the then fair market value of such Term Assets. The Trustee shall not
be responsible for the failure to obtain a bid so long as it has made reasonable
efforts to obtain bids. If a bid for the sale of the Term Assets has been
accepted by the Trustee but the sale has failed to settle on the proposed
settlement date, the Trustee shall request new bids from such leading dealers.
In the event of an Acceleration and a corresponding payment on the Term Assets,
the Trustee shall distribute the proceeds to the Certificateholders no later
than two (2) Business Days after the receipt of immediately available funds.
(c) In the event that the Trustee receives money or other property in
respect of the Term Assets (other than a scheduled payment on or with respect to
an interest payment date) as a result of a Payment Default on the Term Assets
(including from the sale thereof), the Trustee will promptly give notice as
provided in Section 19(c) to the Depositary, or for any Certificates which are
not then held by DTC or any other depository, directly to the registered holders
of the Certificates then outstanding and unpaid. Such notice shall state that,
not later than 30 days after the receipt of such moneys or other property, the
Trustee will allocate and distribute such moneys or other property to the
holders of Certificates then outstanding and unpaid, pro rata by principal
amount (after deducting the costs incurred in connection therewith and subject
to clause (l) of this Section 10). Property other than cash will be liquidated
by the Trustee, and the proceeds thereof distributed in cash, only to the extent
necessary to avoid distribution of fractional securities to Certificateholders.
In-kind distribution of Term Assets to Certificateholders will be deemed to
reduce the principal amount of Certificates on a dollar-for-dollar basis.
Following such in kind distribution, all Certificates will be cancelled. Other
than as provided in clause (l) below, no amounts will be distributed to the
Depositor in respect of the Term Assets.
(d) Distributions to the Certificateholders on each Distribution Date will
be made to the Certificateholders of record on the Record Date.
(e) All distributions to Certificateholders shall be allocated pro rata
among the Certificates based on their respective principal balances as of the
Record Date.
(f) Notwithstanding any provision of the Agreement to the contrary, to the
extent funds are available, the Trustee will initiate payment in immediately
available funds by 10:00 A.M. (New York City time) on each Distribution Date of
all amounts payable to each Certificateholder with respect to any Certificate
held by such Certificateholder or its nominee (without the necessity for any
presentation or surrender thereof or any notation of such payment thereon) in
the manner and at the address as each Certificateholder may from time to time
direct the Trustee in writing fifteen (15) days prior to such Distribution Date
requesting that such
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payment will be so made and designating the bank account to which such payments
shall be so made. The Trustee shall be entitled to rely on the last instruction
delivered by the Certificateholder pursuant to this Section 10(f) unless a new
instruction is delivered fifteen (15) days prior to a Distribution Date.
(g) Upon receipt by the Trustee of a notice that all or a portion of the
Term Assets are to be redeemed, the Trustee shall select by lot for redemption a
principal amount of Certificates equal to 98.9584% of the principal amount of
the Term Assets to be redeemed and establish the Term Assets Redemption
Distribution Date. Notice of such redemption shall be given by the Trustee to
the registered Certificateholders not less than fifteen (15) days prior to the
Term Assets Redemption Distribution Date by mail to each registered
Certificateholder at such registered Certificateholder's last address on the
register maintained by the Trustee; provided, however, that the Trustee shall
not be required to give any notice of redemption prior to the third business day
after the date it receives notice of such redemption. The redemption price for
such Certificates is set forth below in Section 10(j) of this Series Supplement.
(h) The Term Assets Issuer has the right to redeem the Term Assets (in
whole or in part) at any time, at a price equal to the greater of (i) 100% of
the principal amount of the Term Assets to be redeemed and (ii) the present
value of the remaining scheduled payments of principal and interest discounted
to the redemption date on a semiannual basis (assuming a 360-day year consisting
of twelve 30-day months) at a certain treasury benchmark rate plus 0.15% plus,
in each case, accrued interest thereon to the redemption date.
(i) Reserved.
(j) The holder of a Certificate which is redeemed will receive, on the Term
Assets Redemption Distribution Date, a payment equal to its pro rata share of
the distributions made on the Term Assets.
(k) The rights of the Certificateholders to receive distributions in
respect of the Certificates, and all interests of the Certificateholders in such
distributions, shall be as set forth in this Series Supplement. Notwithstanding
anything in the Agreement to the contrary, to the extent there remains on
deposit monies or property in the Trust after all the accrued and unpaid Fixed
Payments and the return of the Certificate Principal Balance are made on the
Certificates, such remaining monies or property shall be distributed to the
Certificateholders on a pro rata basis based on the Certificate Principal
Balance of the Certificates held on the date the final Fixed Payment was made on
the Certificates. The Trustee shall in no way be responsible or liable to the
Certificateholders nor shall any Certificateholder in any way be responsible or
liable to any other Certificateholder in respect of amounts previously
distributed on the Certificates based on their respective principal balances.
(l) On the Closing Date, as partial payment for the Term Assets, the
Trustee shall deliver to, or at the direction of, the Depositor all of the
Certificates. On June 1, 2001, as payment of the balance of the purchase price
for the Term Assets, the Trustee shall pay to the Depositor from the Fixed
Payment received on such date the amount of the interest accrued on the Term
Assets from December 1, 2000 to but not including the Closing Date, which amount
equals $2,985,739.17. In the event that the Fixed Payment is not received by the
Trustee on such
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date or otherwise is insufficient to pay such amount of accrued interest to the
Depositor, the Depositor shall have a claim for the unpaid portion of such
amount and shall share pari passu with Certificateholders to the extent of such
claim in the proceeds from the sale of the Term Assets.
Section 11 . Termination of Trust. (a) The Trust shall terminate upon the
occurrence of any Trust Termination Event.
(b) Except for any reports and other information required to be provided to
Certificateholders hereunder and under the Base Trust Agreement and except as
otherwise specified herein and therein, the obligations of the Trustee will
terminate upon the distribution to Certificateholders of all amounts required to
be distributed to them and the disposition of all Term Assets held by the
Trustee. The Trust shall thereupon terminate, except for surviving rights of
indemnity.
Section 12 . Conditional Right to Shorten Maturity. (a) Upon occurrence of
a Tax Event, the Term Assets Issuer will have the right to shorten the maturity
of the Term Assets to the extent required in the opinion of a nationally
recognized independent tax counsel, such that after the shortening of the
maturity, interest paid on the Term Assets will be deductible for federal income
tax purposes.
(b) In the event that the Term Assets Issuer elects to exercise its right
to shorten the maturity of the Term Assets on the occurrence of a Tax Event, the
Term Assets Issuer will mail a notice of shortened maturity to each holder of
record of the Term Assets by first-class mail not more than 60 days after the
occurrence of such Tax Event, stating the new maturity date of the Term Assets.
Upon receipt by the Trustee of such notice, the Trustee shall notify the Rating
Agencies of the Term Assets Issuer's election to shorten the Maturity Date.
(c) In the event that the Term Assets Issuer shortens the Maturity Date of
the Term Assets, the Maturity Date of the Certificates will be similarly
shortened.
Section 13 Limitation of Powers and Duties. (a) The Trustee shall
administer the Trust and the Term Assets solely as specified herein and in the
Base Trust Agreement.
(b) The Trust is constituted solely for the purpose of acquiring and
holding the Term Assets. The Trustee is not authorized to acquire any other
investments or engage in any activities not authorized herein and, in
particular, unless expressly provided in the Agreement, the Trustee is not
authorized (i) to sell, assign, transfer, exchange, pledge, set-off or otherwise
dispose of any of the Term Assets, once acquired, or interests therein,
including to Certificateholders, (ii) to merge or consolidate the Trust with any
other entity, or (iii) to do anything that would materially increase the
likelihood that the Trust will fail to qualify as a grantor trust for United
States federal income tax purposes. In addition, the Trustee has no power to
create, assume or incur indebtedness or other liabilities in the name of the
Trust other than as contemplated herein and in the Base Trust Agreement.
(c) The parties acknowledge that the Trustee, as the holder of the Term
Assets, has the right to vote and give consents and waivers in respect of the
Term Assets and enforce the other rights, if any, of a holder of the Term
Assets, except as otherwise limited by the
10
Base Trust Agreement or this Series Supplement. In the event that the Trustee
receives a request from the Term Assets Trustee, the Term Assets Issuer or, if
applicable, the Depositary with respect to the Term Assets, for the Trustee's
consent to any amendment, modification or waiver of the Term Assets, or any
document relating thereto, or receives any other solicitation for any action
with respect to the Term Assets, the Trustee shall within two (2) Business Days
mail a notice of such proposed amendment, modification, waiver or solicitation
to each Certificateholder of record as of the date of such request. The Trustee
shall request instructions from the Certificateholders as to what action to take
in response to such request and shall be protected in taking no action if no
direction is received. Except as otherwise provided herein, the Trustee shall
consent or vote, or refrain from consenting or voting, in the same proportion
(based on the principal balances of the Certificates) as the Certificates of the
Trust were actually voted or not voted by the Holders thereof as of the date
determined by the Trustee prior to the date such vote or consent is required;
provided, however, that, notwithstanding anything to the contrary in the Base
Trust Agreement or this Series Supplement, the Trustee shall at no time vote in
favor of or consent to any matter (i) which would alter the timing or amount of
any payment on the Term Assets (including, without limitation, any demand to
accelerate the Term Assets) or (ii) which would result in the exchange or
substitution of any Term Asset whether or not pursuant to a plan for the
refunding or refinancing of such Term Asset, except in each case with the
unanimous consent of the Certificateholders and subject to the requirement that
such vote would not materially increase the likelihood that the Trust will fail
to qualify as a grantor trust for federal income tax purposes, such
determination to be based solely on an Opinion of Counsel. The Trustee shall
have no liability for any failure to act or to refrain from acting resulting
from the Certificateholders' late return of, or failure to return, directions
requested by the Trustee from the Certificateholders.
(d) Notwithstanding any provision of the Agreement to the contrary, the
Trustee may require from the Certificateholders prior to taking any action at
the direction of the Certificateholders, an indemnity agreement of a
Certificateholder or any of its Affiliates to provide for security or indemnity
against the costs, expenses and liabilities the Trustee may incur by reason of
any such action. An unsecured indemnity agreement, if acceptable to the Trustee,
shall be deemed to be sufficient to satisfy such security or indemnity
requirement.
(e) Notwithstanding any provision of the Agreement to the contrary, the
Trustee shall act as the sole Authenticating Agent, Paying Agent and Registrar.
Section 14 . Compensation of Trustee. Each of the Trustee and U.S. Bank
National Association, as co-trustee (the "co-trustee"), shall be entitled to
receive from the Depositor as compensation for its services hereunder, trustee's
fees pursuant to a separate agreement among the Trustee, the co-trustee, and the
Depositor, and shall be reimbursed for all reasonable expenses, disbursements
and advances incurred or made by it (including the reasonable compensation,
disbursements and expenses of its counsel and other persons not regularly in its
employ). The Depositor shall indemnify and hold harmless each of the Trustee and
the co-trustee, and its successors, assigns, agents and servants against any and
all loss, liability or reasonable expense (including attorneys' fees) incurred
by it in connection with the administration of this trust and the performance of
its duties thereunder. The Trustee and the co-trustee shall notify the Depositor
promptly of any claim for which they may seek indemnity. Failure by the Trustee
or the co-trustee to so notify the Depositor shall not relieve the Depositor
11
of its obligations hereunder. The Depositor need not reimburse any expense or
indemnify against any loss, liability or expense incurred by the Trustee or the
co-trustee through the Trustee's or the co-trustee's own willful misconduct,
negligence or bad faith. The indemnities contained in this Section 14 shall
survive the resignation or termination of the Trustee or the co-trustee, or the
termination of this Agreement.
Failure by the Depositor to pay, reimburse or indemnify the Trustee or the
co-trustee shall not entitle the Trustee or the co-trustee to any payment,
reimbursement or indemnification from the Trust, nor shall such failure release
either the Trustee or the co-trustee from the duties it is required to perform
under this Series Supplement. Any unpaid, unreimbursed or unindemnified amounts
shall not be borne by the Trust and shall not constitute a claim against the
Trust, but shall be borne by each of the Trustee and the co-trustee in its
individual capacity, and the Trustee and the co-trustee shall have no recourse
against the Trust with respect thereto.
Section 15 . Modification or Amendment. The Trustee shall not enter into
any modification or amendment of the Base Trust Agreement or this Series
Supplement unless such modification or amendment is in accordance with Section
10.1 of the Base Trust Agreement. Pursuant to Section 5 of this Series
Supplement, the Depositor may sell to the Trustee additional Term Assets from
time to time without violation or trigger of this Section 15.
Section 16 . Accounting. Notwithstanding Section 3.16 of the Base Trust
Agreement, Independent Public Accountants' Administration Report, no such
accounting reports shall be required. Pursuant to Section 4.2 of the Base Trust
Agreement, Reports to Certificateholders, the Trustee shall cause the statements
to be prepared and forwarded as provided therein.
Section 17 . No Investment of Amounts Received on Term Assets. All amounts
received on or with respect to the Term Assets shall be held uninvested by the
Trustee.
Section 18 . No Event of Default. There shall be no Events of Default
defined with respect to the Certificates.
Section 19 . Notices. (a) All directions, demands and notices hereunder and
under the Base Trust Agreement shall be in writing and shall be deemed to have
been duly given when received if personally delivered or mailed by first class
mail, postage prepaid or by express delivery service or by certified mail,
return receipt requested or delivered in any other manner specified herein, (i)
in the case of the Depositor, to Structured Products Corp., 000 Xxxxxxxxx
Xxxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Secretary, or such other
address as may hereafter be furnished to the Trustee in writing by the
Depositor, and (ii) in the case of the Trustee, to U.S. Bank Trust National
Association, 000 Xxxx Xxxxxx, Xxxxx 0000, Xxx Xxxx, Xxx Xxxx 00000, Attention:
Corporate Trust, facsimile number (000) 000-0000, or such other address as may
hereafter be furnished to the Depositor in writing by the Trustee.
(b) For purposes of delivering notices to the Rating Agency under Section
10.07 of the Base Trust Agreement, Notice to Rating Agency, or otherwise, such
notices shall be mailed or delivered as provided in such Section 10.07, Notice
to Rating Agency, to: Standard &
12
Poor's Ratings Services, 00 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000; and Xxxxx'x
Investors Service, Inc., Structured Derivative Products, 00 Xxxxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx 00000; or such other address as the Rating Agency may designate
in writing to the parties hereto.
(c) In the event a Payment Default or an Acceleration occurs, the Trustee
shall promptly give notice to the Depositary or, for any Certificates which are
not then held by the Depositary or any other depository, directly to the
registered holders of the Certificates thereof. Such notice shall set forth (i)
the identity of the issue of Term Assets, (ii) the date and nature of such
Payment Default or Acceleration, (iii) the principal amount of the interest or
principal in default, (iv) the Certificates affected by the Payment Default or
Acceleration, and (v) any other information which the Trustee may deem
appropriate.
(d) Notwithstanding any provisions of the Agreement to the contrary, the
Trustee shall deliver all notices or reports required to be delivered to or by
the Trustee or the Depositor to the Certificateholders without charge to such
Certificateholders.
Section 20 . Access to Certain Documentation. Access to documentation
regarding the Term Assets will be afforded without charge to any
Certificateholder so requesting pursuant to Section 3.17 of the Base Trust
Agreement, Access to Certain Documentation. Additionally, the Trustee shall
provide at the request of any Certificateholder without charge to such
Certificateholder the name and address of each Certificateholder of Certificates
hereunder as recorded in the Certificate Register for purposes of contacting the
other Certificateholders with respect to their rights hereunder or for the
purposes of effecting purchases or sales of the Certificates, subject to the
transfer restrictions set forth herein.
Section 21 . Advances. There is no Administrative Agent specified herein;
hence no person (including the Trustee) shall be permitted or obligated to make
Advances as described in Section 4.3 of the Base Trust Agreement, Advances.
Section 22 . Ratification of Agreement. With respect to the Series issued
hereby, the Base Trust Agreement (including the grant of a security interest in
Section 10.8 of the Agreement with respect to the Term Assets conveyed
hereunder), as supplemented by this Series Supplement, is in all respects
ratified and confirmed, and the Base Trust Agreement as so supplemented by this
Series Supplement shall be read, taken and construed as one and the same
instrument. To the extent there is any inconsistency between the terms of the
Base Trust Agreement and this Series Supplement, the terms of this Series
Supplement shall govern.
Section 23 . Counterparts. This Series Supplement may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all of such counterparts shall together constitute but one and the
same instrument.
Section 24 . Governing Law. This Series Supplement and each Certificate
issued hereunder shall be governed by and construed in accordance with the laws
of the State of New York applicable to agreements made and to be performed
entirely therein without reference to such State's principles of conflicts of
law to the extent that the application of the laws of another jurisdiction would
be required thereby, and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws.
13
Section 25 . Affiliate Exchange Right. Any affiliate of the Depositor who
certifies in writing that it is one, but not the Depositor itself, will have the
right on any date to tender to the Trustee Certificates of a specified principal
amount together with Call Warrants relating to a principal amount of Term Assets
in a principal amount of 101.053% of the Certificates tendered, and to receive
in exchange Term Assets in a principal amount of 101.053% of the Certificates
tendered.
Section 26 . Certificate of Compliance. The Depositor shall deliver to the
Trustee on or prior to June 30 of each year prior to a Trust Termination Event
the Officer's Certificate as to compliance as required by Section 6.1(b) of the
Base Trust Agreement.
Section 27. Appointment of Co-Trustee. The Depositor and the Trustee hereby
appoint U.S. Bank National Association, a national banking association, as
co-trustee under the Agreement. Any action required to be taken by the Trustee
may be taken by U.S. Bank National Association, as co-trustee, in full
satisfaction of the obligations of the Trustee. By its acceptance of this Series
Supplement, U.S. Bank National Association hereby accepts its appointment as
co-trustee under the Agreement.
14
IN WITNESS WHEREOF, the parties hereto have caused this Series Trust
Agreement to be executed by their respective duly authorized officers as of the
date first above written.
STRUCTURED PRODUCTS CORP.
By: /s/ Xxxxxxx X. Xxxxxx
_________________________
Authorized Signatory
U.S. BANK TRUST NATIONAL ASSOCIATION,
as Trustee
By: /s/ Xxxxxxx Xxxxx
_______________________________
Responsible Officer
ACCEPTED AND ACKNOWLEDGED BY:
U.S. BANK NATIONAL ASSOCIATION,
as Co-Trustee
By: /s/ Xxxxxxx Xxxxx
----------------------------------
Responsible Officer
EXHIBIT A
IDENTIFICATION OF THE TERM ASSETS AS OF CLOSING DATE
Issuer: International Business Machines
Corporation
Term Assets: 7.125% Debentures due December 1, 2096
Maturity Date: December 1, 2096
Original Principal Amount Issued: $850,000,000
CUSIP No.: 000000XX0
Stated Interest Rate: 7.125% per annum
Interest Payment Dates: June 1 and December 1, except that
the final interest payment date
will be December 1, 2096
Redemption: The Term Assets are redeemable (in
whole or in part) at any time by
the Term Assets Issuer.
Principal Amount of Term
Assets Deposited
Under Trust Agreement: $95,480,000
The Term Assets will be held by the Trustee as book-entry credits to an account
of the Trustee or its agent at The Depository Trust Company, New York, New York
("DTC").
A-1
EXHIBIT B
TERMS OF THE CERTIFICATES AS OF CLOSING DATE
Maximum Number of CorTS(R)
Certificates Up to 3,779,416
Aggregate Principal Amount
of CorTS(R)Certificates: $94,485,400
Authorized Denomination: $25 and integral multiples thereof
Rating Agencies: Standard & Poor's Ratings Services,
and Xxxxx'x Investors Service, Inc.
Closing Date: May 9, 2001
Distribution Dates: June 1 and December 1, the Maturity
Date, any Term Assets Redemption
Distribution Date or any Term Assets
Default Distribution Date.
Interest Rate: 7.20%
Maturity Date: December 1, 2096
Record Date: With respect to any Distribution
Date, the day immediately preceding
such Distribution Date.
Trustee's Fees: The Trustee's fees shall be payable
by the Depositor pursuant to a
separate fee agreement between the
Trustee and the Depositor.
Initial Certificate Registrar: U.S. Bank Trust National Association
Corporate Trust Office: U.S. Bank Trust National Association
000 Xxxx Xxxxxx, Xxxxx 0000
Xxx Xxxx, Xxx Xxxx 00000
Attention: Corporate Trust
Department, Regarding CorTS(R)Trust
III For IBM Debentures
B-1
EXHIBIT C
FORM OF CERTIFICATES
THIS CERTIFICATE REPRESENTS AN UNDIVIDED INTEREST IN THE TRUST AND DOES NOT
EVIDENCE AN OBLIGATION OF, OR AN INTEREST IN, AND IS NOT GUARANTEED BY THE
DEPOSITOR OR THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS
CERTIFICATE NOR THE TRUST ASSETS ARE INSURED OR GUARANTEED BY ANY GOVERNMENTAL
AGENCY OR ANY OTHER PERSON.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC") OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED 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.
CERTIFICATE NUMBER R-1 3,779,416 Certificates
CUSIP: 22081Q 20 7 $94,485,400 Certificate Principal Amount
CORTS(R) CERTIFICATES
evidencing an undivided interest in the Trust, as defined below, the assets of
which include 7.125% Debentures issued by International Business Machines
Corporation due December 1, 2096.
This Certificate does not represent an interest in or obligation of the
Depositor or any of its affiliates.
THIS CERTIFIES THAT Cede & Co. is the registered owner of a nonassessable,
fully-paid, fractional undivided interest in CorTS(R)Trust III For IBM
Debentures (the "Trust") formed by Structured Products Corp., as depositor (the
"Depositor").
The Trust was created pursuant to a Base Trust Agreement, dated as of
December 15, 2000 (as amended and supplemented, the "Agreement"), between the
Depositor and U.S. Bank Trust National Association, a national banking
association, not in its individual capacity but solely as Trustee (the
"Trustee"), as supplemented by the CorTS(R) Supplement 2001-22, dated as of May
9, 2001 (the "Series Supplement" and, together with the Agreement, the "Trust
Agreement"), between the Depositor and the Trustee. This Certificate does not
purport to summarize the Trust Agreement and reference is hereby made to the
Trust Agreement for
C-1
information with respect to the interests, rights, benefits, obligations,
proceeds and duties evidenced hereby and the rights, duties and obligations of
the Trustee with respect hereto. A copy of the Trust Agreement may be obtained
from the Trustee by written request sent to the Corporate Trust Office.
Capitalized terms used but not defined herein have the meanings assigned to them
in the Trust Agreement.
This Certificate is one of the duly authorized Certificates designated as
"CorTS(R) Certificates" (herein called the "Certificate" or "Certificates").
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Trust Agreement, to which Trust Agreement the Holder of this
Certificate by virtue of the acceptance hereof assents and by which such Holder
is bound. The assets of the Trust include the Term Assets and all proceeds of
the Term Assets. Additional Term Assets may be sold to the Trustee and
additional Certificates may be authenticated and delivered from time to time as
provided in the Trust Agreement, which additional Certificates shall rank pari
passu with all other Certificates issued in accordance with the Series
Supplement.
Under the Trust Agreement, there shall be distributed on the dates
specified in the Trust Agreement (a "Distribution Date"), to the person in whose
name this Certificate is registered at the close of business on the related
Record Date, such Certificateholder's fractional undivided interest in the
amount of distributions of the Term Assets to be distributed to
Certificateholders on such Distribution Date. The Term Assets will pay interest
on June 1 and December 1 of each year, except that the final payment of interest
will be on December 1, 2096, with the next interest payment date occurring on
June 1, 2001. The principal of the Term Assets is scheduled to be paid on
December 1, 2096.
The distributions in respect of this Certificate are payable in such coin
or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts as set forth in the Series Trust
Agreement.
It is the intent of the Depositor and the Certificateholders that the Trust
will be classified as a grantor trust under subpart E, Part I of subchapter J of
the Internal Revenue Code of 1986, as amended. Except as otherwise required by
appropriate taxing authorities, the Depositor and the Trustee, by executing the
Trust Agreement, and each Certificateholder, by acceptance of a Certificate,
agrees to treat, and to take no action inconsistent with the treatment of, the
Certificates for such tax purposes as interests in a grantor trust and the
provisions of the Trust Agreement shall be interpreted to further this intention
of the parties.
Each Certificateholder, by its acceptance of a Certificate, covenants and
agrees that such Certificateholder shall not, prior to the date which is one
year and one day after the termination of the Trust Agreement, acquiesce,
petition or otherwise invoke or cause the Depositor to invoke the process of any
court or governmental authority for the purpose of commencing or sustaining a
case against the Depositor under any federal or state bankruptcy, insolvency,
reorganization or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Depositor or
any substantial part of its property, or ordering the winding up or liquidation
of the affairs of the Depositor.
C-2
The Trust Agreement permits the amendment thereof, in certain
circumstances, without the consent of the Holders of any of the Certificates.
Unless the certificate of authentication hereon shall have been executed by
an authorized officer of the Trustee by manual signature, this Certificate shall
not entitle the Holder hereof to any benefit under the Trust Agreement or be
valid for any purpose.
A copy of the Trust Agreement is available upon request and all of its
terms and conditions are hereby incorporated by reference and made a part
hereof.
THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.
C-3
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed by its manual or facsimile signature.
U.S. BANK TRUST NATIONAL
ASSOCIATION, not in its individual
capacity but solely as Trustee and
Authenticating Agent
By:
--------------------------------
Authorized Signatory
EXHIBIT D
FORM OF CALL WARRANT
CORTS(R)TRUST III FOR IBM DEBENTURES
Call Warrant
Dated as of May 9, 2001
THIS CALL WARRANT HAS NOT BEEN, AND THE WARRANTS REPRESENTED HEREBY HAVE NOT
BEEN, REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION UNDER
SUCH ACT IS IN EFFECT OR PURSUANT TO AN EXEMPTION THEREFROM UNDER SUCH ACT. THIS
CALL WARRANT AND ANY WARRANT REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN
COMPLIANCE WITH THE CONDITIONS SPECIFIED IN THIS CALL WARRANT.
CORTS(R) TRUST III FOR IBM DEBENTURES
Call Warrant
95,480 Warrants; Each Warrant Relating to $1,000 principal amount of Term Assets
No. W-1 May 9, 2001
CORTS(R) Trust III For IBM Debentures (the "Trust"), a trust created under
the laws of the State of New York pursuant to a Base Trust Agreement, dated as
of December 15, 2000 (the "Agreement"), between Structured Products Corp. (the
"Depositor") and U.S. Bank Trust National Association, a national banking
association, not in its individual capacity but solely as Trustee (the
"Trustee"), as supplemented by the CorTS(R) Supplement 2001-22, dated as of May
9, 2001 (the "Series Supplement" and, together with the Agreement, the "Trust
Agreement"), between the Depositor and the Trustee, for value received, hereby
certifies that Salomon Brothers International Limited or registered assigns, is
entitled to purchase $95,480,000 principal amount of the assets set forth on
Schedule 1 hereto in whole or part on any Warrant Exercise Date (as defined
below) designated by the holder of this instrument (this "Call Warrant") at a
purchase price equal to the Warrant Exercise Purchase Price (as defined below),
all subject to the terms and conditions set forth below.
Certain capitalized terms used in this Call Warrant are defined in Article
IV hereof; capitalized terms used but not defined herein shall have the
respective meanings set forth in the Trust Agreement; references to an "Exhibit"
are, unless otherwise specified, to one of the Exhibits attached to this Call
Warrant and references to a "Section" are, unless otherwise specified, to one of
the sections of this Call Warrant.
D-1
Article I
Exercise of Warrants
Section I.1 Manner of Exercise. (a) This Call Warrant may be exercised by
the holder hereof (each, a "Warrantholder"), in whole or in part, on any Warrant
Exercise Date, set forth in the prior written notice to the Warrant Agent and
the Trustee delivered at any time on or before the Business Day that is at least
fifteen (15) days before such Warrant Exercise Date, by surrender of this Call
Warrant to the Warrant Agent at its office set forth in Section VI.3 hereof no
later than 11:00 a.m. (New York City time) on such Warrant Exercise Date;
provided that such holder shall have made payment to the Warrant Agent, by wire
transfer or other immediately available funds acceptable to the Warrant Agent,
in the amount of the applicable Warrant Exercise Purchase Price, in a manner
such that funds are available to the Warrant Agent no later than 11:00 a.m. (New
York City time) on such Warrant Exercise Date, and such holder shall thereupon
be entitled to delivery of the Term Assets equal to $1,000 per Call Warrant
purchased hereunder in accordance with this Article I; provided further that the
Warrantholder may not exercise this Call Warrant at any time when such
Warrantholder is insolvent, and in connection therewith, such Warrantholder
shall be required to certify that it is solvent at the time of exercise
settlement, by completing the Form of Subscription attached to this Call Warrant
and delivering such completed Form of Subscription to the Trustee on or prior to
the Warrant Exercise Date.
(b) The Warrant Agent shall notify the Trustee immediately upon receipt by
the Warrant Agent of a notice by the holder of this Call Warrant and upon
receipt of payment of the applicable Warrant Exercise Purchase Price from such
holder pursuant to clause (a) of this Section I.1. The Warrant Agent shall
transfer each payment made by the holder hereof pursuant to clause (a) of this
Section I.1 to the Trustee in immediately available funds, for application
pursuant to the Trust Agreement no later than 1:00 p.m. (New York City time) on
the applicable Warrant Exercise Date (and, pending such transfer, shall hold
each such payment for the benefit of the holder hereof in a segregated trust
account).
(c) A notice by the holder of a Call Warrant does not impose any
obligations on a holder of a Call Warrant in any way to pay any Warrant Exercise
Purchase Price. If, by 11:00 a.m. (New York City time) on the Warrant Exercise
Date, the holder of the Call Warrant being exercised has not paid the Warrant
Exercise Purchase Price, then such notice shall automatically expire and none of
the holder of such Call Warrant, the Warrant Agent and the Trustee shall have
any obligations with respect to such notice by the holder of such Call Warrant.
The expiration of a notice by the holder of this Call Warrant shall in no way
affect a holder of a Call Warrant's right to subsequently deliver a notice which
satisfies the terms of the Trust Agreement.
Section I.2 Transfer of Term Assets. As soon as practicable after each
surrender of this Call Warrant, in whole or in part, and no later than 11:00
a.m. (New York City time) on the Warrant Exercise Date and upon satisfaction of
all other requirements described in this Call Warrant, the Warrant Agent shall
instruct the Trustee to cause the Term Assets represented by the number of
Warrants being exercised hereunder to be registered on the book-entry system of
the related depositary in the registered name or names furnished by the holder,
and, in case such exercise is in part only, a new Call Warrant of like tenor,
representing the remaining outstanding Warrants of the holder, shall be
delivered by the Warrant Agent to the holder hereof. The Trustee shall cause the
delivery of such portion of the Term Assets to the holder or its nominee no
later than 1:00 p.m. (New York City time) on the applicable Warrant Exercise
Date in accordance with Section 8(d) of the Trust Agreement.
Section I.3 Cancellation and Destruction of Call Warrant. All Call Warrants
surrendered to the Warrant Agent for the purpose of exercise (in whole or in
part) pursuant to Section I.1 and actually exercised, or for the purpose of
transfer or exchange pursuant to Article III, shall be cancelled by the Warrant
Agent, and no Call Warrant shall be issued in lieu thereof. The Warrant Agent
shall destroy all cancelled Call Warrants.
Section I.4 No Rights as Holder of Term Assets Conferred by Warrants. Prior
to the exercise hereof, this Call Warrant shall not entitle the holder hereof to
any of the rights of a holder of the Term Assets, including, without limitation,
the right to receive the payment of any amount on or in respect of the Term
Assets or to enforce any of the covenants of the Trust Agreement.
Article II
Restrictions on Transfer
Section II.1 Restrictive Legends. Except as otherwise permitted by this
Article II, each Call Warrant (including each Call Warrant issued upon the
transfer of any Call Warrant) shall be issued with a legend in substantially the
following form:
"This Call Warrant has not been, and the Warrants represented hereby have
not been, registered under the Securities Act of 1933, as amended, and may not
be transferred, sold or otherwise disposed of except while a registration under
such Act is in effect or pursuant to an exemption therefrom under such Act. This
Call Warrant and any Warrant represented hereby may be transferred only in
compliance with the conditions specified in this Call Warrant and may not be
transferred to Xxxxxxx Xxxxx Xxxxxx Inc. or Structured Products Corp."
Section II.2 Notice of Proposed Transfer; Opinions of Counsel. Prior to any
transfer of any Call Warrant or portion thereof, the holder hereof will give
five (5) Business Days (or such lesser period acceptable to the Warrant Agent)
prior written notice to the Warrant Agent of such holder's intention to effect
such transfer and to comply in all other respects with this Section II.2. Each
transfer of a portion of a Call Warrant must be for a whole number of Warrants.
Each such notice (a) shall describe the manner and circumstances of the proposed
transfer in sufficient detail to enable counsel for the holder to render the
opinions referred to below, and (b) shall designate counsel for the holder
giving such notice. The holder giving such notice will submit a copy thereof to
the counsel designated in such notice. If (A) in the opinion of such counsel for
the holder the proposed transfer may be effected without registration of such
Call Warrant under the Securities Act (such opinion stating the basis for such
determination) and (B) such opinion is in form and substance satisfactory to the
Depositor and the Warrant Agent, such holder shall thereupon be entitled to
transfer such Call Warrant in accordance with the terms of the notice delivered
by such holder to the Warrant Agent. Each instrument representing such Call
Warrant or portion thereof issued upon or in connection with such transfer shall
bear
the restrictive legend required by Section II.1, unless the Warrant Agent shall
have received an opinion of counsel satisfactory to the Warrant Agent and the
Depositor that such legend is no longer required to ensure compliance with the
Securities Act.
Article III
Registration and Transfer of Call Warrants, etc.
Section III.1 Warrant Register; Ownership of Call Warrants. The Warrant
Agent will keep a register in which the Warrant Agent will provide for the
registration of Call Warrants and the registration of transfers of Call Warrants
representing whole numbers of Warrants. The Trustee and the Warrant Agent may
treat the Person in whose name any Call Warrant is registered on such register
as the owner thereof for all purposes, and the Trustee and the Warrant Agent
shall not be affected by any notice to the contrary.
Section III.2 Transfer and Exchange of Call Warrants. Upon surrender of any
Call Warrant for registration of transfer or for exchange to the Warrant Agent,
the Warrant Agent shall (subject to compliance with Article II) execute and
deliver, and cause the Trustee, on behalf of the Trust, to execute and deliver,
in exchange therefor, a new Call Warrant of like tenor and evidencing a like
whole number of Warrants, in the name of such holder or as such holder (upon
payment by such holder of any applicable transfer taxes or government charges)
may direct.
Section III.3 Replacement of Call Warrants. Upon receipt of evidence
reasonably satisfactory to the Warrant Agent of the loss, theft, destruction or
mutilation of any Call Warrant and, in the case of any such loss, theft or
destruction of any Call Warrant, upon delivery of an indemnity bond in such
reasonable amount as the Warrant Agent may determine, or, in the case of any
such mutilation, upon the surrender of such Call Warrant for cancellation to the
Warrant Agent, the Warrant Agent shall execute and deliver, and cause the
Trustee, on behalf of the Trust, to execute and deliver, in lieu thereof, a new
Call Warrant of like tenor bearing a number not contemporaneously outstanding.
Section III.4 Execution and Delivery of Call Warrants by Trustee. The
Trustee, on behalf of the Trust, hereby agrees (subject to compliance with
Article II) to execute and deliver such new Call Warrants issued in accordance
with Section I.2 or this Article III as the Warrant Agent shall request in
accordance herewith.
Article IV
Definitions
As used herein, unless the context otherwise requires, the following terms
have the following respective meanings:
"Business Day": As defined in the Trust Agreement.
"Call Warrant": This instrument.
"Closing Date": May 9, 2001.
"Depositor": As defined in the introduction to this Call Warrant,
or any successor thereto under the Trust Agreement.
"Depositor Order": As defined in the Trust Agreement.
"Person": Any individual, corporation, partnership, joint venture,
association, joint stock company, trust (including any beneficiary thereof),
unincorporated organization or government or any agency or political subdivision
thereof.
"Rating Agencies": Standard & Poor's Ratings Services and Xxxxx'x Investors
Service, Inc. and any successor thereto.
"Responsible Officer": As defined in the Trust Agreement.
"Securities Act": The Securities Act of 1933, or any similar federal
statute, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time.
"Trust": As defined in the introduction to this Call Warrant.
"Trust Agreement": The Base Trust Agreement, dated as of December 15, 2000,
between the Depositor and the Trustee, as supplemented by the CorTS(R)
Supplement 2001-22, dated as of May 9, 2001, between the Depositor and the
Trustee, incorporating by reference the definitions and assumptions thereto, as
the same may be amended or modified from time to time.
"Trustee": As defined in the introduction to this
Warrant, or any successor thereto under the Trust Agreement.
"Warrant": The right to purchase, on a pro rata basis, an aggregate of
$1,000 in par amount of the Term Assets.
"Warrant Agent": U.S. Bank Trust National Association, a national banking
association, in its capacity as warrant agent hereunder, or any successor
thereto hereunder.
"Warrant Exercise Date": Any Business Day on or after May 9, 2006, as set
forth in the notice from the Warrantholder to the Warrant Agent and the Trustee.
"Warrant Exercise Purchase Price": An amount paid by the Warrantholder on
each Warrant Exercise Date equal to 98.9584% of the principal amount of the Term
Assets being purchased pursuant to the exercise of the Call Warrants plus
accrued and unpaid interest to and including the Warrant Exercise Date.
Article V
Warrant Agent
Section V.1 Limitation on Liability. The Warrant Agent shall be protected
and shall incur no liability for or in respect of any action taken, suffered or
omitted by it in connection
with its administration of the Call Warrants in reliance upon any instrument of
assignment or transfer, power of attorney, endorsement, affidavit, letter,
notice, direction, consent, certificate, statement or other paper or document in
good faith believed by it to be genuine and to be signed, executed and, where
necessary, verified and acknowledged, by the proper Person or Persons.
Section V.2 Duties of Warrant Agent. The Warrant Agent undertakes only the
specific duties and obligations imposed hereunder upon the following terms and
conditions, by all of which the Depositor, the Trust, the Trustee and each
holder of a Call Warrant shall be bound:
(a) The Warrant Agent may consult with legal counsel (who may be legal
counsel for the Depositor), and the opinion of such counsel shall be full and
complete authorization and protection to the Warrant Agent as to any action
taken or omitted by it in good faith and in accordance with such opinion,
provided the Warrant Agent shall have exercised reasonable care in the selection
by it of such counsel.
(b) Whenever in the performance of its duties hereunder, the Warrant Agent
shall deem it necessary or desirable that any fact or matter be proved or
established by the Depositor or the Trustee prior to taking or suffering any
action hereunder, such fact or matter may be deemed to be conclusively proved
and established by a Depositor Order or a certificate signed by a Responsible
Officer of the Trustee and delivered to the Warrant Agent; and such certificate
shall be full authorization to the Warrant Agent for any action taken or
suffered in good faith by it hereunder in reliance upon such certificate.
(c) The Warrant Agent shall be liable hereunder only for its own
negligence, willful misconduct or bad faith.
(d) The Warrant Agent shall not be liable for or by reason of any of the
statements of fact or recitals contained herein or be required to verify the
same, but all such statements and recitals are and shall be deemed to have been
made by the Trust and the Depositor only.
(e) The Warrant Agent shall not have any responsibility in respect of and
makes no representation as to the validity of this Call Warrant or the execution
and delivery hereof (except the due execution hereof by the Warrant Agent); nor
shall it be responsible for any breach by the Trust of any covenant or condition
contained in this Call Warrant; nor shall it by any act hereunder be deemed to
make any representation or warranty as to the Term Assets to be purchased
hereunder.
(f) The Warrant Agent is xxxxxx authorized and directed to accept
instructions with respect to the performance of its duties hereunder from the
Chairman of the Board, the Chief Executive Officer, Chief Financial Officer,
Chief Operating Officer, President, a Vice President, its Treasurer, an
Assistant Treasurer, its Secretary or an Assistant Secretary of the Depositor,
and any Responsible Officer of the Trustee, and to apply to such officers for
advice or instructions in connection with its duties, and it shall not be liable
for any action taken or suffered to be taken by it in good faith in accordance
with instructions of any such officer.
(g) The Warrant Agent and any shareholder, director, officer or employee of
the Warrant Agent may buy, sell or deal in any of the Call Warrants or other
securities of the
Trust or otherwise act as fully and freely as though it were not Warrant Agent
hereunder, so long as such persons do so in full compliance with all applicable
laws. Nothing herein shall preclude the Warrant Agent from acting in any other
capacity for the Trust, the Depositor or for any other legal entity.
(h) The Warrant Agent may execute and exercise any of the rights or powers
hereby vested in it or perform any duty hereunder either by itself or by or
through its attorneys or agents.
(i) The Warrant Agent shall act solely as the agent of the Trust hereunder.
The Warrant Agent shall not be liable except for the failure to perform such
duties as are specifically set forth herein, and no implied covenants or
obligations shall be read into this Call Warrant against the Warrant Agent,
whose duties shall be determined solely by the express provisions hereof. The
Warrant Agent shall not be deemed to be a fiduciary.
(j) The Warrant Agent shall not have any duty to calculate or determine any
adjustments with respect either to the Warrant Exercise Purchase Price or to the
kind and amount of property receivable by holders of Call Warrants upon the
exercise thereof.
(k) The Warrant Agent shall not be responsible for any failure on the part
of the Trustee to comply with any of its covenants and obligations contained
herein.
(l) The Warrant Agent shall not be under any obligation or duty to
institute, appear in or defend any action, suit or legal proceeding in respect
hereof, unless first indemnified to its satisfaction, but this provision shall
not affect the power of the Warrant Agent to take such action as the Warrant
Agent may consider proper, whether with or without such indemnity. The Warrant
Agent shall promptly notify the Depositor and the Trustee in writing of any
claim made or action, suit or proceeding instituted against it arising out of or
in connection with this Call Warrant.
(m) The Trustee will perform, execute, acknowledge and deliver or cause to
be performed, executed, acknowledged and delivered all such further acts,
instruments and assurances as may be required by the Warrant Agent in order to
enable it to carry out or perform its duties hereunder.
Section V.3 Change of Warrant Agent. The Warrant Agent may resign and be
discharged from its duties hereunder upon thirty (30) days notice in writing
mailed to the Depositor and the Trustee by registered or certified mail, and to
the holders of the Call Warrants by first-class mail at the expense of the
Depositor; provided that no such resignation or discharge shall become effective
until a successor Warrant Agent shall have been appointed hereunder. The
Depositor may remove the Warrant Agent or any successor Warrant Agent upon
thirty (30) days notice in writing, mailed to the Warrant Agent or successor
Warrant Agent, as the case may be, and to the holders of the Call Warrants by
first-class mail; provided further that no such removal shall become effective
until a successor Warrant Agent shall have been appointed hereunder. If the
Warrant Agent shall resign or be removed or shall otherwise become incapable of
acting, the Depositor shall promptly appoint a successor to the Warrant Agent,
which may be designated as an interim Warrant Agent. If an interim Warrant Agent
is designated, the Depositor shall then
appoint a permanent successor to the Warrant Agent, which may be the interim
Warrant Agent. If the Depositor shall fail to make such appointment of a
permanent successor within a period of thirty (30) days after such removal or
within sixty (60) days after notification in writing of such resignation or
incapacity by the resigning or incapacitated Warrant Agent or by the holder of a
Call Warrant, then the Warrant Agent or registered holder of any Warrant may
apply to any court of competent jurisdiction for the appointment of such a
successor. Any successor to the Warrant Agent appointed hereunder must be rated
in one of the four highest rating categories by the Rating Agencies. Any entity
which may be merged or consolidated with or which shall otherwise succeed to
substantially all of the trust or agency business of the Warrant Agent shall be
deemed to be the successor Warrant Agent without any further action.
Article VI
Miscellaneous
Section VI.1 Remedies. The remedies at law of the holder of this Call
Warrant in the event of any default or threatened default by the Warrant Agent
in the performance of or compliance with any of the terms of this Call Warrant
are not and will not be adequate and, to the fullest extent permitted by law,
such terms may be specifically enforced by a decree for the specific performance
of any agreement contained herein or by an injunction against a violation of any
of the terms hereof or otherwise.
Section VI.2 Limitation on Liabilities of Holder. Nothing contained in this
Call Warrant shall be construed as imposing any obligation on the holder hereof
to purchase any of the Term Assets except in accordance with the terms hereof.
Section VI.3 Notices. All notices and other communications under this Call
Warrant shall be in writing and shall be delivered, or mailed by registered or
certified mail, return receipt requested, by a nationally recognized overnight
courier, postage prepaid, addressed (a) if to any holder of any Call Warrant, at
the registered address of such holder as set forth in the register kept by the
Warrant Agent, or (b) if to the Warrant Agent, to 000 Xxxx Xxxxxx, Xxxxx 0000,
Xxx Xxxx, Xxx Xxxx 00000, Attention: Corporate Trust or to such other address
notice of which the Warrant Agent shall have given to the holder hereof and the
Trustee or (c) if to the Trust or the Trustee, to the Corporate Trust Office (as
set forth in the Trust Agreement); provided that the exercise of any Call
Warrant shall be effective in the manner provided in Article I.
Section VI.4 Amendment. (a) This Call Warrant may be amended from time to
time by the Depositor, the Trustee and the Warrant Agent without the consent of
the holder hereof, upon receipt of an opinion of counsel satisfactory to the
Warrant Agent that the provisions hereof have been satisfied and that such
amendment would not alter the status of the Trust as a grantor trust under the
Code, for any of the following purposes: (i) to cure any ambiguity or to correct
or supplement any provision herein which may be defective or inconsistent with
any other provision herein or to provide for any other terms or modify any other
provisions with respect to matters or questions arising under this Warrant which
shall not adversely affect in any material respect the interests of the holder
hereof or any holder of a Certificate or (ii) to evidence and provide for the
acceptance of appointment hereunder of a Warrant Agent other than U.S. Bank
Trust National Association.
(b) Without limiting the generality of the foregoing, this Call Warrant may
also be modified or amended from time to time by the Depositor, the Trustee and
the Warrant Agent with the consent of the holders of 66-2/3% of the Warrants,
upon receipt of an opinion of counsel satisfactory to the Warrant Agent that the
provisions hereof (including, without limitation, the following proviso) have
been satisfied, for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Call Warrant or of modifying
in any manner the rights of the holders of this Call Warrant; provided, however,
that no such amendment shall (i) adversely affect in any material respect the
interests of holders of Certificates without the consent of the holders of
Certificates evidencing not less than the Required Percentage-Amendment of the
aggregate Voting Rights of such affected Certificates (as such terms are defined
in the Trust Agreement) and without written confirmation from the Rating
Agencies that such amendment will not result in a downgrading or withdrawal of
its rating of the Certificates; (ii) alter the dates on which Warrants are
exercisable or the amounts payable upon exercise of a Warrant without the
consent of the holders of Certificates evidencing not less than 100% of the
aggregate Voting Rights of such affected Certificates and the holders of 100% of
the affected Warrants or (iii) reduce the percentage of aggregate Voting Rights
required by (i) or (ii) without the consent of the holders of all such affected
Certificates. Notwithstanding any other provision of this Warrant, this Section
VI.4(b) shall not be amended without the consent of the holders of 100% of the
affected Warrants.
(c) Promptly after the execution of any such amendment or modification, the
Warrant Agent shall furnish a copy of such amendment or modification to each
holder of a Call Warrant, to each holder of a Certificate and to the Rating
Agencies. It shall not be necessary for the consent of holders of Warrants or
Certificates under this Section to approve the particular form of any proposed
amendment, but it shall be sufficient if such consent shall approve the
substance thereof. The manner of obtaining such consents and of evidencing the
authorization of the execution thereof shall be subject to such reasonable
regulations as the Warrant Agent may prescribe.
Section VI.5 Expiration. The right to exercise this Call Warrant shall
expire on the earliest to occur of (a) the cancellation hereof, (b) the
termination of the Trust Agreement, (c) the liquidation, disposition, or
maturity of all of the Term Assets, or (d) the occurrence of a Payment Default
or an Acceleration.
Section VI.6 Descriptive Headings. The headings in this Call Warrant are
for purposes of reference only and shall not limit or otherwise affect the
meaning hereof.
Section VI.7 GOVERNING LAW. THIS WARRANT INSTRUMENT SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY,
THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF
LAWS.
Section VI.8 Judicial Proceedings; Waiver of Jury. Any judicial proceeding
brought against the Trust, the Trustee or the Warrant Agent with respect to this
Call Warrant may be brought in any court of competent jurisdiction in the County
of New York, State of New York or of the United States of America for the
Southern District of New York and, by execution and delivery of this Call
Warrant, the Trustee on behalf of the Trust and the Warrant Agent (a)
D-8
accept, generally and unconditionally, the nonexclusive jurisdiction of such
courts and any related appellate court, and irrevocably agree that the Trust,
the Trustee and the Warrant Agent shall be bound by any judgment rendered
thereby in connection with this Call Warrant, subject to any rights of appeal,
and (b) irrevocably waive any objection that the Trust or the Trustee, the
Warrant Agent may now or hereafter have as to the venue of any such suit, action
or proceeding brought in such a court or that such court is an inconvenient
forum.
Section VI.9 Nonpetition Covenant; No Recourse. Each of (i) the holder of
this Call Warrant by its acceptance hereof, and (ii) the Warrant Agent agrees,
that it shall not (and, in the case of the holder, that it shall not direct the
Warrant Agent to), until the date which is one year and one day after the
payment in full of the Certificates and all other securities issued by the
Trust, the Depositor or entities formed, established or settled by the
Depositor, acquiesce, petition or otherwise invoke or cause the Trust, the
Depositor, or any such other entity to invoke the process of the United States
of America, any State or other political subdivision thereof or any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government for the purpose of commencing or
sustaining a case by or against the Trust, the Depositor or any such other
entity under a federal or state bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or
other similar official of the Trust, the Depositor or any such other entity or
all or any part of the property or assets of Trust, the Depositor or any such
other entity or ordering the winding up or liquidation of the affairs of the
Trust, the Depositor or any such other entity.
Each of (i) the holder of this Call Warrant, by its acceptance hereof, and
(ii) the Warrant Agent agrees, that it shall not have any recourse to the Term
Assets.
U.S. BANK TRUST NATIONAL ASSOCIATION,
not in its individual
capacity but solely as
Trustee and Authenticating
Agent
By:
---------------------------
Authorized Signatory
U.S. BANK TRUST NATIONAL ASSOCIATION,
as Warrant Agent
By:
---------------------------
Authorized Signatory
FORM OF SUBSCRIPTION
[To be executed only upon exercise of Warrants]
To CorTS(R) Trust III For IBM Debentures
U.S. Bank Trust National Association, as Trustee
000 Xxxx Xxxxxx, Xxxxx 0000
Xxx Xxxx, Xxx Xxxx 00000
Attention: Corporate Trust
The undersigned registered holder of the within Call Warrant, having
previously given notice thereof in accordance with the terms of the Call
Warrant, hereby irrevocably exercises Warrant(s) for, and purchases pursuant
thereto, the Term Assets receivable upon such exercise, and herewith makes
payment of $1,000 per Warrant therefor, and requests that such Term Assets be
transferred to [insert information required for transfer of Term Assets]. In
connection therewith, the undersigned hereby certifies that it is solvent as of
the date hereof, as required by Section I.1 of the Call Warrant.
Dated:
(Signature must conform in all respects to name of holder as specified on
the face of Warrant)
(Street Address)
(City)(State)(Zip Code)
FORM OF ASSIGNMENT
[To be executed only upon transfer of Call Warrant]
For value received, the undersigned registered holder of the within Call Warrant
hereby sells, assigns and transfers unto the Warrant(s) [Must be whole number]
to purchase Term Assets to which such Call Warrant relates, and appoints
Attorney to make such transfer on the books of the Warrant Agent maintained for
such purpose, with full power of substitution in the premises.
Dated:
(Signature must conform in all respects to name of
holder as specified on the face of Warrant)
(Street Address)
(City)(State)(Zip Code)
Signed in the presence of:
Schedule 1
To the Call Warrant
$95,480,000 aggregate principal amount of 7.125% debentures due December 1, 2096
issued by International Business Machines Corporation.
