Liquidating Trust Agreement

Exhibit 10.2









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









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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










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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





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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:









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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.





(d) "BENEFICIARIES" shall mean the holders of Trust Units from time to time on or after the Record Date, including the Initial Beneficiaries and the Subsequent Beneficiaries.





(e) "GRANTOR" shall mean the Partnership.





(f) "INITIAL BENEFICIARIES" shall mean the initial holders of Trust Units.





(g) "LIQUIDATING TRUST" shall mean the liquidating trust maintained by the Managing Trustee holding the Trust Assets of the Partnership, identified as the "ICON Cash Flow Partners L.P. Seven Liquidating Trust"; also referred to herein as the "Trust."





(h) "MANAGER" shall mean such Person or Persons who have been employed by, or who have contracted with, the Managing Trustee to assist in the management of the Trust, and for the avoidance of doubt, the Manager may be the General Partner or any Affiliate of the General Partner.









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(i) "PARTNERSHIP UNITS" shall mean the limited and general partnership units in the Partnership held by each of the Beneficiaries as of the Record Date.





(j) "PERSON" shall mean any natural person, partnership, trust, corporation, association or other legal entity, including, but not limited to, the General Partner and any Affiliate of the General Partner.





(k) "RECORD DATE" shall mean the date selected by the Grantor for determination of the holders of Partnership Units entitled to become Beneficiaries.





(l) "SUBSEQUENT BENEFICIARIES" shall mean Beneficiaries as reflected on the books and records of the Trust from time to time after the Effective Date, other than the Initial Beneficiaries.





(m) "TRUST" shall mean a Delaware Statutory Trust pursuant to Chapter 38 of Title 12 of the Delaware Code and created by the filing of a Certificate of Trust with the Secretary of State of the State of Delaware.





(n) "TRUST ASSETS" shall mean all the property held from time to time by the Managing Trustee under this Agreement, which initially shall consist of the Retained Assets of the Partnership granted, assigned and conveyed to the Managing Trustee by the Partnership, the Cash Reserves, and, in addition, shall thereafter include all proceeds and other receipts of, from, or attributable to any assets, causes of actions or claims held by the Trust.





(o) "TRUST UNITS" shall mean those equal, undivided portions into which the Beneficial Interests in the Trust Assets are divided, as evidenced on the books and records of the Trust.





(p) "TRUSTEE(S)" shall mean the original Trustee(s) under this Agreement and their successor(s) and assignee(s), if any.





ARTICLE II

NATURE OF TRANSFER



2.1 Purpose of the Trust .



(a) It is expected that the Partnership shall dissolve and liquidate prior to fully winding up its affairs, including, but not limited to, the sale of its remaining assets, the collection of any receivables and the payment of any unsatisfied debts, claims, liabilities, commitments, suits and other obligations, whether contingent or fixed or otherwise (the "Liabilities"), except for such liabilities and obligations for which the Partnership has previously established reserves by the retention of the Cash Reserves as described in the recitals hereto. The Trust hereby is organized for the sole purpose of winding up the affairs of the Partnership as promptly as reasonably possible and with no objective to continue or engage in the conduct of a trade or business.





(b) The Cash Reserves and Retained Assets to be granted, assigned and conveyed to the Managing Trustee as of the Effective Date will be held in the Trust, and the Managing Trustee will: (i) further liquidate the Trust Assets as it deems necessary to carry out the purpose of the Trust and facilitate distribution of the Trust Assets; (ii) protect, conserve and manage the Trust Assets in accordance with the terms and conditions hereof; and (iii) distribute the Trust Assets in accordance with the terms and conditions hereof.





(c) It is intended that the grant, assignment and conveyance of the Cash Reserves and the Retained Assets by the Partnership to the Managing Trustee pursuant hereto shall be treated for federal and state income tax purposes as if the Partnership made such distributions directly to the holders of Partnership Units. It is further intended that for federal, state and local income tax purposes the Trust shall be treated as a liquidating trust under Treasury Regulation Section 301.7701-4(d) and any analogous provision of state or local law, and the Beneficiaries shall be treated as the owners of their respective share of the Trust pursuant to Sections 671 through 679 of the Code and any analogous provision of state or local law and shall be taxed on their respective share of the Trust's taxable income (including both ordinary income and capital gains) pursuant to Section 671 of the Code and any analogous provision of state or local law. The Managing Trustee shall file all tax returns required to be filed with any governmental agency consistent with this position, including, but not limited to, any returns required of grantor trusts pursuant to Treasury Regulation Section 1.671-4(a). The Partnership agrees that a transfer agent acting on its behalf may prepare and file applicable K-1's with respect to the Beneficiaries' Partnership income. To the extent that the Managing Trustee becomes liable for the payment of taxes, including withholding taxes, with respect to income derived from the investment of funds held hereunder or any payment made hereunder (coll ...