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Unit Investment Trust Funds Omnibus Participating Trust Agreement

The Participant, as TRUSTOR, through this Omnibus Participating Trust Agreement (the “Agreement”), hereby agrees to participate in the Manulife Asset Management and Trust Corporation Unit Investment Trust Fund/s he has duly selected on his Client Suitability (CSA)/Investment Policy Statement (IPS) (the “Fund/s”) established and administered by Manulife Asset Management and Trust Corporation (the “TRUSTEE”). The TRUSTOR also agrees that his initial contribution and subsequent contributions to Fund/s are subject to the approval of the TRUSTEE after which an evidence of participation shall be issued to the TRUSTEE; and that prior to approval, the TRUSTEE shall not be liable to the TRUSTOR for any loss arising from market fluctuations and price volatility of the securities held by the FUND/s.

It is expressly understood and agreed that this Agreement is subject to, and does not amend, modify or limit, the respective Fund/s’ Declaration/s of Trust (the “Plan Rules”). As such, the TRUSTOR, hereby explicitly acknowledges having read and fully understood the Plan Rules pertaining to his investment/s and is amenable to all the terms and conditions contained therein. The TRUSTOR also confirms and certifies that the Fund/s is/are suitable to his investment requirements.

The TRUSTOR and the TRUSTEE likewise agree as follows:

  1. Participation and Redemption. Participation in the Fund/s and redemption of such participation shall be allowed only on the basis of the net asset value of each participation unit (the “NAVPU”) determined in accordance with the applicable Plan Rules. The TRUSTOR’s investment in each Fund shall be expressed in terms of number of units of participation as appearing in the TRUSTOR’s evidence of participation.

    As his participation, the TRUSTOR shall transfer, convey and pay unto the TRUSTEE, such amount representing the value of the units as indicated in the TRUSTOR’s evidence of participation, in the currency likewise indicated therein.

    The TRUSTOR may redeem his participation in a Fund by surrendering his relevant evidence of participation to the TRUSTEE. Alternatively, other means of redemption notice may be honored, provided they are allowed under the TRUSTEE’s policy. Participation and redemption shall be allowed only at such times as provided in the applicable Plan Rules.

    As the participation and redemption of such participation are subject to certain documentary requirements, the NAVPU that will be applicable to the TRUSTOR’s participation or redemption shall depend on the date the participation is actually approved or when the redemption is actually processed.

  2. Client Suitability. Prior to the acceptance of participation, the TRUSTEE shall perform client suitability, through Client Suitability Assessment forms, which shall be acknowledged and signed by the TRUSTOR.

  3. Disclosure of Risks. The TRUSTOR confirms that he has read and understood the Risk Disclosure Statement prior to executing and agreeing to be bound by this Agreement. 

  4. Administration and Investment of Each Fund. Each Fund, which is the pool of trust funds from the participating trustors thereof, shall be managed, administered and invested by the TRUSTEE under the operation of the applicable Plan Rules. 

  5. Disclosure of Investment Outlets. The TRUSTEE shall make available for the information of any interested participant a list of prospective and outstanding investment outlets for each Fund, which list shall be updated at least quarterly.

  6. Compensation. As compensation for the TRUSTEE services, it shall be entitled to compensation as provided in the applicable Plan Rules.

  7. Liability of TRUSTEE. Save that attributable to the TRUSTEE’s fraud, willful default, evident bad faith or gross negligence, the TRUSTEE shall not be liable for any loss or depreciation in the value of the Fund/s or in the value of the TRUSTOR’s units of participation in the Fund/s arising from any act done by the TRUSTEE pursuant to the terms hereof and the applicable Plan Rules. Neither shall the TRUSTEE be liable for refraining to do any act where such inaction in the good faith judgment of the TRUSTEE is necessary and appropriate for the proper and advantageous administration and management of the Fund/s.

  8. Amendments. This Agreement shall be deemed automatically modified as and when the Plan Rules are amended by the TRUSTEE in order to comply with applicable laws and/or Bangko Sentral ng Pilipinas regulations and for such other purposes as may be deemed proper by the TRUSTEE.

  9. Term of Agreement. This Agreement shall continue and remain in force until the termination of the Fund/s in accordance with the Plan Rules or with laws or regulations then existing. 

  10. Reference Documents. The terms and conditions in the Plan Rules, Risk Disclosure Statement, Client Suitability Assessment, and the evidence of participation are incorporated herein by reference, restated herein and shall form integral parts hereof. In executing this Agreement, the TRUSTOR represents that he has carefully read and fully understood the same documents and that he has agreed to be bound by all terms and conditions thereof. In case of inconsistencies, the provisions of the Plan Rules shall prevail over those of this Agreement and the other reference documents.

  11. Evidence of Participation. Contributions of the TRUSTOR into any of the Funds shall be evidenced by a separate Confirmation of Participation or Statement of Account, which is issued by the TRUSTEE for this purpose. Any evidence of participation is non-negotiable and serves only to confirm the units purchased as of its date. The possession of the original copy of any evidence of participation does not constitute proof that the units appearing therein remain outstanding. The TRUSTOR’s outstanding units shall be based on the books and records of the TRUSTEE. The TRUSTEE reserves the right to require the prior surrender of any evidence of participation upon redemption of units. Notwithstanding the requirement for surrender, mere possession of the evidence of participation shall not be presumed or deemed as proof of non-payment of the participation.

  12. Cooling-Off Provision. The participant of the Fund who is a natural person may avail of the cooling-off period of two (2) business days immediately following the approval of his participation in the Fund without penalty, subject to submission of a written notice to the TRUSTEE during the cooling-off period. The settlement amount shall be calculated based on the NAVPU of the Fund to be released on the immediately succeeding business day following receipt of the notice to avail of the cooling-off period.