Exhibit
4.11
ESCROW AND
PAYING AGENT AGREEMENT (CLASS
A)
dated as of October 13, 2009
among
WILMINGTON TRUST COMPANY
as Escrow
Agent
MORGAN STANLEY & CO. INCORPORATED,
J.P. MORGAN SECURITIES INC.
and
GOLDMAN,
SACHS & CO.
as
Underwriters
WILMINGTON TRUST COMPANY ,
not in its
individual capacity,
but solely as
Pass Through Trustee
for and on
behalf of
United Air
Lines Pass Through Trust 2009-1A-O
as Pass
Through Trustee
and
WILMINGTON TRUST COMPANY
as Paying
Agent
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TABLE OF CONTENTS
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Page
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Section 1.
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Escrow Agent
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2
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1.01.
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Appointment of Escrow Agent
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2
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1.02.
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Instruction; Etc
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3
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1.03.
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Initial Escrow Amount; Issuance of Escrow
Receipts
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3
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1.04.
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Payments to Receiptholders
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4
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1.05.
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Mutilated, Destroyed, Lost or Stolen Escrow
Receipt
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4
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1.06.
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Additional Escrow Amounts
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5
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1.07.
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Resignation or Removal of Escrow Agent
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5
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1.08.
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Persons Deemed Owners
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5
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1.09.
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Further Assurances
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5
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Section 2.
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Paying Agent
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6
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2.01.
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Appointment of Paying Agent
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6
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2.02.
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Establishment of Paying Agent Account
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6
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2.03.
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Payments from Paying Agent Account
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6
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2.04.
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Withholding Taxes
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7
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2.05.
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Resignation or Removal of Paying Agent
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7
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2.06.
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Notice of Final Withdrawal
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7
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Section 3.
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Payments
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8
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Section 4.
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Other Actions
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8
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Section 5.
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Representations and Warranties of the Escrow
Agent
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8
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Section 6.
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Representations and Warranties of the Paying
Agent
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9
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Section 7.
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Indemnification
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10
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Section 8.
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Amendment, Etc
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11
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Section 9.
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Notices
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11
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Section 10.
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Transfer
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12
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Section 11.
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Entire Agreement
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12
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Section 12.
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Governing Law
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12
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Section 13.
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Waiver of Jury Trial Right
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12
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Section 14.
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Counterparts
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12
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Section 15.
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Rights of Holders
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12
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Exhibit A
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Escrow Receipt
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Exhibit B
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Withdrawal Certificate
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i
ESCROW AND
PAYING AGENT AGREEMENT (CLASS A)
ESCROW AND PAYING AGENT AGREEMENT (Class A) dated as of
October 13, 2009 (as amended, modified or supplemented from
time to time, this “ Agreement ”) among
WILMINGTON TRUST COMPANY , a Delaware banking corporation,
as Escrow Agent (in such capacity, together with its successors in
such capacity, the “ Escrow Agent ”); MORGAN
STANLEY & CO. INCORPORATED , J.P. MORGAN SECURITIES
INC. and GOLDMAN, SACHS & CO. , as Underwriters
(the “ Underwriters ” and together with their
respective transferees and assigns as registered owners of the
Certificates, the “ Investors ”) under the
Underwriting Agreement referred to below; WILMINGTON TRUST
COMPANY , a Delaware banking corporation, not in its individual
capacity except as otherwise expressly provided herein, but solely
as trustee (in such capacity, together with its successors in such
capacity, the “ Pass Through Trustee ”) under
the Pass Through Trust Agreement referred to below; and
WILMINGTON TRUST COMPANY , a Delaware banking corporation,
as paying agent hereunder (in such capacity, together with its
successors in such capacity, the “ Paying Agent
”).
W I T N E S S
E T H :
WHEREAS , United Air Lines, Inc. (“ United
”) and the Pass Through Trustee have entered into a Trust
Supplement, dated as of October 13, 2009 (the “ Trust
Supplement ”) to the Pass Through Trust Agreement, dated
as of June 26, 2007 (together, as amended, modified or
supplemented from time to time in accordance with the terms
thereof, the “ Pass Through Trust Agreement ”)
relating to United Air Lines Pass Through Trust 2009-1A-O (the
“ Pass Through Trust ”) pursuant to which the
United Air Lines Pass Through Trust, Series 2009-1A-O Certificates
referred to therein (the “ Certificates ”) are
being issued (the date of such issuance, the “ Issuance
Date ”);
WHEREAS , United and the Underwriters have entered into an
Underwriting Agreement dated October 5, 2009 (as amended,
modified or supplemented from time to time in accordance with the
terms thereof, the “ Underwriting Agreement ”)
pursuant to which the Pass Through Trustee will issue and sell the
Certificates to the Underwriters (the net proceeds of such sale
being herein referred to as the “ Net Proceeds
”);
WHEREAS , United, the Pass Through Trustee and certain other
persons concurrently herewith are entering into the Note Purchase
Agreement, dated as of the date hereof (the “ Note
Purchase Agreement ”), pursuant to which the Pass Through
Trustee has agreed to acquire from time to time on or prior to the
Deposit Period Termination Date (as defined in the Note Purchase
Agreement) equipment notes (the “ Equipment Notes
”) issued to finance certain aircraft currently owned by
United utilizing a portion of the Net Proceeds;
WHEREAS , the Underwriters and the Pass Through Trustee
intend that the Net Proceeds be held in escrow by the Escrow Agent
on behalf of the Investors, subject to withdrawal upon request by
the Pass Through Trustee and satisfaction of the conditions set
forth in the Note Purchase Agreement for the purpose of purchasing
Equipment Notes, and that pending such withdrawal the Net Proceeds
be deposited on behalf of the Escrow Agent with JPMorgan Chase
Bank, N.A., a national banking association, as Depositary (the
“ Depositary ” which shall also be deemed to
refer to any Replacement Depositary (as defined in the Note
[Escrow and
Paying Agent Agreement (Class A)]
Purchase Agreement)
from and after the date on which the Deposits are transferred to
such Replacement Depositary) under the Deposit Agreement, dated as
of the date hereof between the Depositary and the Escrow Agent
relating to the Pass Through Trust (as amended, modified,
supplemented or replaced from time to time in accordance with the
terms thereof, the “ Deposit Agreement ” which
shall also be deemed to refer to any Replacement Deposit Agreement
(as defined in the Note Purchase Agreement) to which the Escrow
Agent becomes a party pursuant to Section 1.02(a) hereof from
and after the transfer of the Deposits from the Depositary to the
Replacement Depositary) pursuant to which, among other things, the
Depositary will pay interest for distribution to the Investors and
establish accounts from which the Escrow Agent shall make
withdrawals upon request of and proper certification by the Pass
Through Trustee;
WHEREAS , the Escrow Agent wishes to appoint the Paying
Agent to pay amounts required to be distributed to the Investors in
accordance with this Agreement; and
WHEREAS , capitalized terms used but not defined herein
shall have the meanings ascribed to such terms in the Pass Through
Trust Agreement.
NOW, THEREFORE , in consideration of the obligations
contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:
Section 1. Escrow
Agent .
1.01. Appointment of Escrow
Agent . Each of the Underwriters, for and on behalf
of each of the Investors, hereby irrevocably appoints, authorizes
and directs the Escrow Agent to act as escrow agent and fiduciary
hereunder and under the Deposit Agreement for such specific
purposes and with such powers as are specifically delegated to the
Escrow Agent by the terms of this Agreement, together with such
other powers as are reasonably incidental thereto. Any and all
money received and held by the Escrow Agent under this Agreement or
the Deposit Agreement shall be held in escrow by the Escrow Agent
in accordance with the terms of this Agreement. This Agreement is
irrevocable and the Investors’ rights with respect to any
monies received and held in escrow by the Escrow Agent under this
Agreement or the Deposit Agreement shall only be as provided under
the terms and conditions of this Agreement and the Deposit
Agreement. The Escrow Agent (which term as used in this sentence
shall include reference to its affiliates and its own and its
affiliates’ officers, directors, employees and agents):
(a) shall have no duties or responsibilities except those
expressly set forth in this Agreement; (b) shall not be
responsible to the Pass Through Trustee or the Investors for any
recitals, statements, representations or warranties of any person
other than itself contained in this Agreement or the Deposit
Agreement or for the failure by the Pass Through Trustee, the
Investors or any other person or entity (other than the Escrow
Agent) to perform any of its obligations hereunder (whether or not
the Escrow Agent shall have any knowledge thereof); and
(c) shall not be responsible for any action taken or omitted
to be taken by it hereunder or provided for herein or in connection
herewith, except for its own willful misconduct or gross negligence
(or simple negligence in connection with the handling of funds
actually received by it in accordance with the terms of this
Agreement) or breach of its obligations hereunder.
2
[Escrow and
Paying Agent Agreement (Class A)]
1.02. Instruction; Etc.
The Underwriters, for and on behalf of each of the
Investors, hereby irrevocably instruct the Escrow Agent, and the
Escrow Agent agrees, (a) to enter into the Deposit Agreement
and, if requested by the Company pursuant to Section 4(a)(iii)
of the Note Purchase Agreement, to enter into a Replacement Deposit
Agreement with the Replacement Depositary specified by the Company,
(b) to appoint the Paying Agent as provided in this Agreement,
(c) upon receipt at any time and from time to time prior to
the Termination Date (as defined below) of a certificate
substantially in the form of Exhibit B hereto (a “
Withdrawal Certificate ”) executed by the Pass Through
Trustee, together with an attached Notice of Financing Withdrawal
in substantially the form of Exhibit A to the Deposit
Agreement duly completed by the Pass Through Trustee (the “
Applicable Notice of Financing Withdrawal ” and the
withdrawal to which it relates, a “ Financing
Withdrawal ”), immediately to execute the Applicable
Notice of Financing Withdrawal as Escrow Agent and transmit it to
the Depositary by facsimile transmission in accordance with the
Deposit Agreement; provided that, upon the request of the
Pass Through Trustee after such transmission, the Escrow Agent
shall cancel such Applicable Notice of Financing Withdrawal,
(d) upon receipt of a Withdrawal Certificate executed by the
Pass Through Trustee, together with an attached Notice of
Replacement Withdrawal in substantially the form of Exhibit C
to the Deposit Agreement duly completed by the Pass Through
Trustee, to (X) give such Notice of Replacement Withdrawal to
the Depositary requesting a withdrawal, on the date specified in
such notice, which shall not be less than Five Business Days after
such notice is given (the “ Replacement Withdrawal
Date ”), of all Deposits then held by the Depositary
together with all accrued and unpaid interest on such Deposits to
but excluding the Replacement Withdrawal Date, and (Y) direct
the Depositary to transfer such Deposits and accrued interest on
behalf of the Escrow Agent to the Replacement Depositary in
accordance with the Replacement Deposit Agreement, and (e) if
there are any undrawn Deposits (as defined in the Deposit
Agreement) on the “ Termination Date ”, which
shall mean the earlier of (i) the Deposit Period Termination
Date (as defined in the Note Purchase Agreement) and (ii) the
day on which the Escrow Agent receives notice from the Pass Through
Trustee that the Pass Through Trustee’s obligation to
purchase Equipment Notes under the Note Purchase Agreement has
terminated, to immediately give notice to the Depositary (with a
copy to the Paying Agent) substantially in the form of
Exhibit B to the Deposit Agreement requesting a withdrawal of
all of the remaining Deposits, together with accrued and unpaid
interest on such Deposits to the date of withdrawal, on the 25th
day after the date that such notice of withdrawal is given to the
Depositary (or, if not a Business Day, on the next succeeding
Business Day) (a “ Final Withdrawal ”),
provided that if the day scheduled for the Final Withdrawal
in accordance with the foregoing is within 10 days before or after
a Regular Distribution Date, then the Escrow Agent shall request
that such requested Final Withdrawal be made on such Regular
Distribution Date (the date of such requested withdrawal, the
“ Final Withdrawal Date ”). If for any reason
the Escrow Agent shall have failed to give the Final Withdrawal
notice to the Depositary on or before January 14, 2010, and
there are unwithdrawn Deposits on such date, the Final Withdrawal
Date shall be deemed to be January 21, 2010.
1.03. Initial Escrow Amount;
Issuance of Escrow Receipts . The Escrow Agent
hereby directs the Underwriters to, and the Underwriters hereby
acknowledge that on the date hereof they shall, irrevocably deliver
to the Depositary on behalf of the Escrow Agent, an amount in U.S.
dollars (“ Dollars ”) and immediately available
funds equal to $659,107,000 for deposit on behalf of the Escrow
Agent with the Depositary in accordance with Section 2.1 of
the Deposit Agreement. The Underwriters hereby instruct the Escrow
Agent, upon receipt of such sum from the Underwriters, to confirm
such receipt by executing and
3
[Escrow and
Paying Agent Agreement (Class A)]
delivering to the Pass
Through Trustee an Escrow Receipt in the form of Exhibit A
hereto (an “ Escrow Receipt ”), (a) to be
affixed by the Pass Through Trustee to each Certificate and
(b) to evidence the same percentage interest (the “
Escrow Interest ”) in the Account Amounts (as defined
below) as the Fractional Undivided Interest in the Pass Through
Trust evidenced by the Certificate to which it is to be affixed.
The Escrow Agent shall provide to the Pass Through Trustee for
attachment to each Certificate newly issued under and in accordance
with the Pass Through Trust Agreement an executed Escrow Receipt as
the Pass Through Trustee may from time to time request of the
Escrow Agent. Each Escrow Receipt shall be registered by the Escrow
Agent in a register (the “ Register ”)
maintained by the Escrow Agent in the name of the same holder that
is the holder of the Certificate to which it is attached and may
not thereafter be detached from such Certificate to which it is to
be affixed prior to the distribution of the Final Withdrawal (the
“ Final Distribution ”). After the Final
Distribution, no additional Escrow Receipts shall be issued and the
Pass Through Trustee shall request the return to the Escrow Agent
for cancellation of all outstanding Escrow Receipts.
1.04. Payments to
Receiptholders . All payments and distributions made
to holders of an Escrow Receipt (collectively “
Receiptholders ”) in respect of the Escrow Receipt
shall be made only from amounts deposited in the Paying Agent
Account (as defined below) (“ Account Amounts
”). Each Receiptholder, by its acceptance of an Escrow
Receipt, agrees that (a) it will look solely to the Account
Amounts for any payment or distribution due to such Receiptholder
pursuant to the terms of the Escrow Receipt and this Agreement
(subject to Section 15 hereof) and (b) it will have no
recourse to United, the Pass Through Trustee, the Paying Agent, the
Escrow Agent or Wilmington Trust Company, except as expressly
provided herein or in the Pass Through Trust Agreement. No
Receiptholder shall have any right to vote or in any manner
otherwise control the operation and management of the Paying Agent
Account or the obligations of the parties hereto, nor shall
anything set forth herein, or contained in the terms of the Escrow
Receipt, be construed so as to constitute the Receiptholders from
time to time as partners or members of an association.
1.05. Mutilated, Destroyed,
Lost or Stolen Escrow Receipt . If (a) any
mutilated Escrow Receipt is surrendered to the Escrow Agent or the
Escrow Agent receives evidence to its satisfaction of the
destruction, loss or theft of any Escrow Receipt and (b) there
is delivered to the Escrow Agent and the Pass Through Trustee such
security, indemnity or bond, as may be required by them to hold
each of them harmless, then, absent notice to the Escrow Agent or
the Pass Through Trustee that such destroyed, lost or stolen Escrow
Receipt has been acquired by a bona fide purchaser, and provided
that the requirements of Section 8-405 of the Uniform
Commercial Code in effect in any applicable jurisdiction are met,
the Escrow Agent shall execute, authenticate and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Escrow Receipt, a new Escrow Receipt or Escrow Receipts and
of like Escrow Interest in the Account Amounts and bearing a number
not contemporaneously outstanding.
In connection with the issuance of any new Escrow Receipt under
this Section 1.05, the Escrow Agent may require the payment of
a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses
(including the fees and expenses of the Pass Through Trustee and
the Escrow Agent) connected therewith.
4
[Escrow and
Paying Agent Agreement (Class A)]
Any
duplicate Escrow Receipt issued pursuant to this Section 1.05
shall constitute conclusive evidence of the appropriate Escrow
Interest in the Account Amounts, as if originally issued, whether
or not the lost, stolen or destroyed Escrow Receipt shall be found
at any time.
The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, destroyed, lost
or stolen Escrow Receipts.
1.06. Additional Escrow
Amounts . On the date of any Financing Withdrawal,
the Pass Through Trustee may re-deposit with the Depositary some or
all of the amounts so withdrawn in accordance with Section 2.4
of the Deposit Agreement.
1.07. Resignation or Removal
of Escrow Agent . Subject to the appointment and
acceptance of a successor Escrow Agent as provided below, the
Escrow Agent may resign at any time by giving 30 days’ prior
written notice thereof to the Investors, but may not otherwise be
removed except for cause by the written consent of the Investors
with respect to Investors representing Escrow Interests aggregating
not less than a majority in interest in the Account Amounts (an
“ Action of Investors ”). Upon any such
resignation or removal, the Investors, by an Action of Investors,
shall have the right to appoint a successor Escrow Agent. If no
successor Escrow Agent shall have been so appointed and shall have
accepted such appointment within 30 days after the retiring Escrow
Agent’s giving of notice of resignation or the removal of the
retiring Escrow Agent, then the retiring Escrow Agent may appoint a
successor Escrow Agent. Any successor Escrow Agent shall be a bank
which has an office in the United States with a combined capital
and surplus of at least $100,000,000. Upon the acceptance of any
appointment as Escrow Agent hereunder by a successor Escrow Agent,
such successor Escrow Agent shall enter into such documents as the
Pass Through Trustee shall require and shall thereupon succeed to
and become vested with all the rights, powers, privileges and
duties of the retiring Escrow Agent, and the retiring Escrow Agent
shall be discharged from its duties and obligations hereunder. No
resignation or removal of the Escrow Agent shall be effective
unless a written confirmation shall have been obtained from each of
Moody’s Investors Service, Inc. and Standard &
Poor’s Ratings Services, a Standard & Poor’s
Financial Services LLC business, that the replacement of the Escrow
Agent with the successor Escrow Agent will not result in (a) a
reduction of the rating for the Certificates below the then current
rating for the Certificates or (b) a withdrawal or suspension
of the rating of the Certificates.
1.08. Persons Deemed
Owners . Prior to due presentment of a Certificate
for registration of transfer