Common use of of the 1940 Act Clause in Contracts

of the 1940 Act. We hereby acknowledge and agree that pursuant to Section 14(a) of the 1940 Act and the rules promulgated thereunder (or pursuant to an order of the Commission granted to you and the Trusts related thereto) (a) if, within ninety days from the time that a Trust's Registration Statement has become effective under the 1933 Act, the net worth of such Trust declines to less than $100,000 or such Trust is terminated, the trustee of such Trust shall (i) refund, on demand and without deduction, all sales charges to each investor who purchased Units of such Trust, and (ii) liquidate the Securities held by such Trust and distribute the proceeds thereof to the unitholders of such Trust and (b) in the event that redemptions by you or any Underwriter of Units constituting a part of the Units not theretofore sold to the public results in a Trust having a net worth of less than 40 percent of the principal amount of the Securities (or delivery statements relating to contracts for the purchase of any such Securities which, together with cash or an irrevocable letter of credit issued by a bank in the amount required for their purchase, are held by such Trust for purchase of the Securities) initially deposited in such Trust: the trustee of such Trust shall (i) terminate such Trust in the manner provided in the trust agreement and distribute the assets thereof to the unitholders of such Trust, and (ii) refund, on demand and without deduction, all sales charges to each person who purchased Units of such Trust from you or from any Underwriter or broker-dealer participating in the distribution. In the event that a Trust is terminated in accordance with the foregoing, we will refund any sales charges to any purchaser of such Units purchased from us, or purchased from a dealer participating in the distribution of such Units who purchased such Units from us. We authorize you to charge our account for all refunds of sales charges in respect to our Units.