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Liquidating Trust Agreement

 

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Title:

Liquidating Trust Agreement

Entities:

Icon Cash Flow Partners L P Seven

Date:

2007

Size:

99KB total

Price:

$41

ID:

#2943790

 

 

► Miscellany ► Trusts ► Liquidating Trust Agreements

 

 

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LIQUIDATING TRUST AGREEMENT
 
Dated as of July 12, 2007
 
by and between
 
ICON CASH FLOW PARTNERS L.P. SEVEN
 
individually as Grantor
 
and
 
ICON CAPITAL CORP.
 
as Managing Trustee
 
and
 
NRAI SERVICES, LLC
 
 as Resident Trustee
 
 
 
1

 
 
 
TABLE OF CONTENTS


LIQUIDATING TRUST AGREEMENT..............................................................................................................................................................................
4
RECITALS..........................................................................................................................................................................................................................
4
ARTICLE I:  NAME AND DEFINITIONS..........................................................................................................................................................................
5
1.1
Name.......................................................................................................................................................................................................................
5
1.2
Certain Terms Defined..............................................................................................................................................................................................
5
ARTICLE II:  NATURE OF TRANSFER............................................................................................................................................................................
6
2.1
Purpose of Trust........................................................................................................................................................................................................
6
2.2
Prohibited Activities...................................................................................................................................................................................................
7
2.3
No Reversion to the Partnership.................................................................................................................................................................................
7
2.4
Payment of Liabilities.................................................................................................................................................................................................
7
2.5
Bill of Sale, Assignment, Acceptance and Assumption Agreement; Instruments of  Further Assurance...........................................................................
7
2.6
Incidents of Ownership..............................................................................................................................................................................................
7
2.7
Notice to Unlocated Holders of Partnership Units........................................................................................................................................................
7
ARTICLE III:  BENEFICIARIES.........................................................................................................................................................................................
8
3.1
Beneficial Interests....................................................................................................................................................................................................
8
3.2
Rights of Beneficiaries...............................................................................................................................................................................................
8
3.3
No Transfer of Interests of Beneficiaries....................................................................................................................................................................
9
3.4
Managing Trustee as Beneficiary................................................................................................................................................................................
9
ARTICLE IV:  DURATION AND TERMINATION OF TRUST.........................................................................................................................................
9
4.1
Duration....................................................................................................................................................................................................................
9
4.2
Other Obligations of the Managing Trustee upon Termination.......................................................................................................................................
9
ARTICLE V:  ADMINISTRATION OF TRUST ASSETS....................................................................................................................................................
10
5.1
Sale of Trust Assets...................................................................................................................................................................................................
10
5.2
Transactions with Related Persons..............................................................................................................................................................................
10
5.3
Payment of Claims, Expenses and Liabilities................................................................................................................................................................
10
5.4
Interim Distributions...................................................................................................................................................................................................
10
5.5
Final Distribution........................................................................................................................................................................................................
10
5.6
Reports to Beneficiaries and Others............................................................................................................................................................................
11
5.7
Federal Income Tax Information.................................................................................................................................................................................
11
5.8
Employment of Manager............................................................................................................................................................................................
11
ARTICLE VI:  POWERS OF AND LIMITATIONS ON THE MANAGING TRUSTEE.......................................................................................................
12
6.1
Limitations on the Managing Trustee...........................................................................................................................................................................
12
6.2
Specific Powers of the Managing Trustee...................................................................................................................................................................
12
ARTICLE VII:  RESIDENT TRUSTEE...............................................................................................................................................................................
14
7.1
Generally...................................................................................................................................................................................................................
14
7.2
Fees and Indemnity....................................................................................................................................................................................................
16
7.3
Insurance..................................................................................................................................................................................................................
16
7.4
Miscellaneous............................................................................................................................................................................................................
16
ARTICLE VIII:  CONCERNING THE MANAGING TRUSTEE, EMPLOYEES AND AGENTS.........................................................................................
17
8.1
Generally...................................................................................................................................................................................................................
17
8.2
Reliance by Managing Trustee....................................................................................................................................................................................
18
8.3
Limitation on Liability to Third Persons........................................................................................................................................................................
19
8.4
Recitals.....................................................................................................................................................................................................................
19
8.5
Indemnification..........................................................................................................................................................................................................
19
8.6
Rights of Managing Trustees, Employees, Independent Contractors and Agents to Own Trust Units or Other Property and to Engage in Other Business...
20
ARTICLE IX:  PROTECTION OF PERSONS DEALING WITH THE MANAGING TRUSTEE..........................................................................................
20
 
 
 
2

 
 
 
9.1
Reliance on Statements by the Managing Trustee........................................................................................................................................................
20
ARTICLE X:  REIMBURSEMENT TO THE MANAGING TRUSTEE................................................................................................................................
21
10.1
Expenses..................................................................................................................................................................................................................
21
ARTICLE XI:  THE MANAGING TRUSTEE AND SUCCESSOR MANAGING TRUSTEE...............................................................................................
21
11.1
Number and Qualification of Managing Trustees..........................................................................................................................................................
21
11.2
Resignation and Removal...........................................................................................................................................................................................
21
11.3
Appointment of Successor..........................................................................................................................................................................................
22
11.4
Acceptance of Appointment by Successor Managing Trustee.......................................................................................................................................
22
11.5
Bonds.......................................................................................................................................................................................................................
22
ARTICLE XII:  CONCERNING THE BENEFICIARIES.....................................................................................................................................................
22
12.1
Evidence of Action by Beneficiaries............................................................................................................................................................................
22
12.2
Limitation on Suits by Beneficiaries.............................................................................................................................................................................
22
12.3
Requirement of Undertaking.......................................................................................................................................................................................
22
ARTICLE XIII:  MEETING OF BENEFICIARIES...............................................................................................................................................................
23
13.1
Purpose of Meetings..................................................................................................................................................................................................
23
13.2
Meeting Called by Managing Trustee..........................................................................................................................................................................
23
13.3
Meeting Called on Request of Beneficiaries.................................................................................................................................................................
23
13.4
Persons Entitled to Vote at Meeting of Beneficiaries....................................................................................................................................................
23
13.5
Quorum.....................................................................................................................................................................................................................
23
13.6
Adjournment of Meeting.............................................................................................................................................................................................
23
13.7
Conduct of Meeting...................................................................................................................................................................................................
23
ARTICLE XIV:  AMENDMENTS.......................................................................................................................................................................................
24
14.1
Consent of Beneficiaries............................................................................................................................................................................................
24
14.2
Effect of Amendment................................................................................................................................................................................................
24
14.3
Managing Trustee?s Declining to Execute Documents..................................................................................................................................................
24
ARTICLE XV:  MISCELLANEOUS PROVISIONS............................................................................................................................................................
24
15.1
Filing Documents.......................................................................................................................................................................................................
24
15.2
Intention of Parties to Establish Trust..........................................................................................................................................................................
24
15.3
Beneficiaries Have No Rights or Privileges as Holders of Partnership Units..................................................................................................................
24
15.4
Laws as to Construction.............................................................................................................................................................................................
25
15.5
Severability...............................................................................................................................................................................................................
25
15.6
Notices.....................................................................................................................................................................................................................
25
15.7
Counterparts.............................................................................................................................................................................................................
25
     
EXHIBIT A:  Bill of Sale, Assignment, Acceptance and Assumption Agreement.....................................................................................................................
27

 
3

 


 
LIQUIDATING TRUST AGREEMENT
 
This LIQUIDATING TRUST AGREEMENT (this ?Agreement?), dated as of July 12, 2007 (the ?Effective Date?), by and between ICON Cash Flow Partners L.P. Seven, a Delaware limited partnership, as Grantor (the ?Partnership?), ICON Capital Corp., a Delaware corporation, as Managing Trustee (the ?Managing Trustee?), and NRAI Services, LLC, a Delaware limited liability company, as Resident Trustee (the ?Resident Trustee? and, with the Managing Trustee, the ?Trustees?).
 
 
RECITALS:
 
WHEREAS, the Partnership was organized for the objectives and purposes of owning and leasing, and otherwise dealing with equipment and other personal property; and
 
 
WHEREAS, ICON Capital Corp., a Delaware corporation (the ?General Partner?) filed a Certificate of Cancellation with Secretary of State of the State of Delaware pursuant to the terms of its Third Amended and Restated Agreement of Limited Partnership dated as of September 12, 1995, as amended on October 1, 1997 (the ?Partnership Agreement?); and
 
 
WHEREAS, as of the date hereof, substantially all of the assets of the Partnership have been sold or otherwise disposed of; and
 
 
WHEREAS, the General Partner believes it to be in the best interest of the Partnership to complete the liquidation of the Partnership by transferring all remaining assets of the Partnership (the ?Retained Assets?) to a liquidating trust (the ?Liquidating Trust? or ?Trust?) with ICON Capital Corp. serving as its initial Managing Trustee, including cash reserves set aside for the contingent and existing obligations of the Partnership and the Liquidating Trust (the ?Cash Reserves?); and
 
 
WHEREAS, the Managing Trustee shall administer the Liquidating Trust pursuant to the terms of this Agreement and, upon satisfaction of all liabilities and obligations of the Partnership and the Liquidating Trust, the Managing Trustee shall distribute the residue of the proceeds of the liquidation of the assets of the Partnership in accordance with the terms hereof.
 
 
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Partnership hereby agrees to grant, release, assign, convey and deliver unto the Managing Trustee for the benefit of the Beneficiaries (as hereinafter defined), all of the right, title and interest of the Partnership in and to the Retained Assets and Cash Reserves for the uses and purposes stated herein on the Effective Date, subject to the terms and provisions set out below, and the Managing Trustee hereby agrees to accept such Retained Assets and Cash Reserves and such Trust, subject to the following terms and provisions:
 

 
4

 

 
ARTICLE I
NAME AND DEFINITIONS
 
1.1 Name. This Trust shall be known as the ICON Cash Flow Partners L.P. Seven Liquidating Trust.

1.2 Certain Terms Defined.  For all purposes of this instrument, unless the context otherwise requires:
 
(a) ?AFFILIATE? shall mean, with respect to any Person, (a) any other Person directly or indirectly controlling, controlled by or under common control with such Person, (b) any officer, director or partner of such Person, (c) any other Person owning or controlling 10% or more of the outstanding voting securities of such Person and (d) if such Person is an officer, director or partner, any other person for which such Person acts in such capacity.
 
 
(b) ?AGREEMENT? shall mean this instrument as originally executed or as it may from time to time be amended pursuant to the terms hereof.
 
 
(c) ?BENEFICIAL INTEREST? shall mean each Beneficiary?s proportionate share of the Trust Assets in the Trust determined by the ratio of the number of Partnership Units held by the Initial Beneficiary on the close of business on the Record Date in the Partnership over the total number of Partnership Units existing on such Record Date in the Partnership and thereafter each Beneficiary?s proportional beneficial interest in the Trust represented by Trust Units.

 

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