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Article 16
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The issuer, the master agent and the trustee or sub-distributor of an offshore structured product shall sign a joint written agreement among them. The preceding provision does not apply where the aforementioned parties belong to the same legal entity.<br/>The agreement mentioned in the preceding paragraph shall contain the following clauses:<br/>1. Information and assistance to be provided and responsibilities to be assumed by the offshore structured product issuing institution as requested by the master agent and the trustee or sub-distributor for compliance with applicable laws and regulations;<br/>2. In case the offshore structured product has any of the following events, the issuer or master agent shall make public announcement and notify the trustee or sub-distributor within three days from the occurrence thereof, and the trustee or sub-distributor will forward the same information to the investors:<br/>(1) The offshore structured product issuing institution becomes unable to continue to conduct relevant business due to dissolution, suspension of business, transfer of business, merger or acquisition, cessation of business, voidance or revocation of its permit under laws or regulations of the country where it is located, or other similar material event;<br/>(2) The long-term credit rating of the issuing institution or guarantor of offshore structured product or the issue rating of the offshore structured product is downgraded;<br/>(3) The offshore structured product that the issuer or master agent handles has a material event as specified in the agreement that materially affects investors' rights or interests; or<br/>(4) Any other event materially affecting investors' rights or interests.<br/>3. Where an issuer or master agent becomes unable to continue to issue or distribute an offshore structured product, it shall assist the investors in carrying out subsequent redemption of the offshore structured product or other relevant matters.<br/>The clauses to be contained in the agreement mentioned in Paragraph 1 hereof will be drawn up by the TFSR in consultation with the trade association of the trustee or sub-distributor and reported to the FSC for reference.
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