Document:

Exhibit
10.33

 

CIPHERLOC
CORPORATION

 

2019
STOCK OPTION/STOCK ISSUANCE PLAN

 

ARTICLE
ONE

 

GENERAL
PROVISIONS

 

I.
PURPOSE OF THE PLAN

 

This
2019 Stock Option/Stock Issuance Plan is intended to promote the interests of Cipherloc Corporation, a Texas corporation, by providing
eligible persons in the Corporation’s employ or service with the opportunity to acquire a proprietary interest, or otherwise
increase their proprietary interest, in the Corporation as an incentive for them to continue in such employ or service.

 

Capitalized
terms herein shall have the meanings assigned to such terms in the attached Appendix.

 

II.
STRUCTURE OF THE PLAN

 

A.
The Plan shall be divided into two (2) separate equity programs:

 

(i)
the Option Grant Program under which eligible persons may, at the discretion of the Plan Administrator, be granted options to
purchase shares of Common Stock, and

 

(ii)
the Stock Issuance Program under which eligible persons may, at the discretion of Plan Administrator, be issued shares of Common
Stock directly, either through the immediate purchase of such shares or as a bonus for services rendered the Corporation (or any
Parent or Subsidiary).

 

B.
The provisions of Articles One and Four shall apply to both equity programs under the Plan and shall accordingly govern the interests
of all persons under the Plan.

 

III.
ADMINISTRATION OF THE PLAN

 

A.
The Plan shall be administered by the Board. However, any or all administrative functions otherwise exercisable by the Board may
be delegated to a Committee. Members of the Committee shall serve for such period as the Board may determine and shall be subject
to removal by the Board at any time. The Board may also at any time terminate the functions of the Committee and reassume all
powers and authority previously delegated to the Committee.

 

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B.
The Plan Administrator shall have full power and authority (subject to the provisions of the Plan) to establish such rules and
regulations as it may deem appropriate for proper administration of the Plan and to make such determinations under, and issue
such interpretations of, the Plan and any outstanding options or stock issuances thereunder as it may deem necessary or advisable.
Decisions of the Plan Administrator shall be final and binding on all parties who have an interest in the Plan or any option grant
or stock issuance thereunder.

 

IV.
ELIGIBILITY

 

A.
The persons eligible to participate in the Plan are as follows:

 

(i)
employees,

 

(ii)
non-employee members of the Board or the non-employee members of the board of directors of any Parent or Subsidiary, and

 

(iii)
consultants and other independent advisors who provide services to the Corporation (or any Parent or Subsidiary).

 

B.
The Plan Administrator shall have full authority to determine, (i) with respect to the grants made under the Option Grant Program,
which eligible persons are to receive such grants, the time or times when those grants are to be made, the number of shares to
be covered by each such grant, which shall not exceed 100% of the eligible party’s annual compensation, the status of the
granted option as either an Incentive Option or a Non-Statutory Option, the time or times when each option is to become exercisable,
the vesting schedule (if any) applicable to the option shares and the maximum term for which the option is to remain outstanding,
and (ii) with respect to stock issuances made under the Stock Issuance Program, which eligible persons are to receive such issuances,
the time or times when those issuances are to be made, the number of shares to be issued to each Participant, the vesting schedule
(if any) applicable to the issued shares and the consideration to be paid by the Participant for such shares.

 

C.
The Plan Administrator shall have the absolute discretion either to grant options in accordance with the Option Grant Program
or to effect stock issuances in accordance with the Stock Issuance Program.

 

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V.
STOCK SUBJECT TO THE PLAN

 

A.
The stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock. The maximum number of
shares of Common Stock which may be issued over the term of the Plan shall not exceed three million (3,000,000) shares.

 

B.
Shares of Common Stock subject to outstanding options shall be available for subsequent issuance under the Plan to the extent:
(i) the options expire or terminate for any reason prior to exercise in full; or (ii) the options are cancelled in accordance
with the cancellation-regrant provisions of Article Two. Unvested shares issued under the Plan and subsequently repurchased by
the Corporation, at the option exercise or direct issue price paid per share, pursuant to the Corporation’s repurchase rights
under the Plan shall be added back to the number of shares of Common Stock reserved for issuance under the Plan and shall accordingly
be available for reissuance through one or more subsequent option grants or direct stock issuances under the Plan.

 

C.
Should any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares,
exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of
consideration, appropriate adjustments shall be made to: (i) the maximum number and/or class of securities issuable under the
Plan; and (ii) the number and/or class of securities and the exercise price per share in effect under each outstanding option
in order to prevent the dilution or enlargement of benefits thereunder. The adjustments determined by the Plan Administrator shall
be final, binding and conclusive. In no event shall any such adjustments be made in connection with the conversion of one or more
outstanding shares of the Corporation’s preferred stock into shares of Common Stock.

 

ARTICLE
TWO

 

OPTION
GRANT PROGRAM

 

I.
OPTION TERMS

 

Each
option shall be evidenced by one or more documents in the form approved by the Plan Administrator; provided, however, that each
such document shall comply with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be
subject to the provisions of the Plan applicable to such options.

 

A.
Exercise Price.

 

1.
The exercise price per share shall be fixed by the Plan Administrator in accordance with the following provisions:

 

(i)
The exercise price per share shall not be less than one hundred percent (100%) of the Fair Market Value per share of Common Stock
on the option grant date. (ii) If the person to whom the option is granted is a 10% Stockholder, then the exercise price per share
shall not be less than one hundred ten percent (110%) of the Fair Market Value per share of Common Stock on the option grant date.

 

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2.
The exercise price shall become immediately due upon exercise of the option and shall, subject to the provisions of Section I
of Article Four and the documents evidencing the option, be payable in cash or check made payable to the Corporation. Should the
Common Stock be registered under Section 12 of the 1934 Act at the time the option is exercised, then the exercise price may also
be paid as follows: (i) in shares of Common Stock held for the requisite period necessary to avoid a charge to the Corporation’s
earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date; or (ii) to the extent the option
is exercised for vested shares, through a special sale and remittance procedure pursuant to which the Optionee shall concurrently
provide irrevocable instructions (A) to a Corporation-designated brokerage firm to effect the immediate sale of the purchased
shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the
aggregate exercise price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes
required to be withheld by the Corporation by reason of such exercise and (B) to the Corporation to deliver the certificates for
the purchased shares directly to such brokerage firm in order to complete the sale.

 

Except
to the extent such sale and remittance procedure is utilized, payment of the exercise price for the purchased shares must be made
on the Exercise Date.

 

B.
Exercise and Term of Options. Each option shall be exercisable at such time or times, during such period and for
such number of shares as shall be determined by the Plan Administrator and set forth in the documents evidencing the option grant.
However, no option shall have a term more than three (3) years measured from the option grant date.

 

C.
Effect of Termination of Service.

 

1.
The following provisions shall govern the exercise of any options held by the Optionee at the time of cessation of Service or
death:

 

(i)
Should the Optionee cease to remain in Service for any reason other than death, Disability or Misconduct, then the Optionee shall
have a period of three (3) months following the date of such cessation of Service during which to exercise each outstanding option
held by such Optionee. (ii) Should Optionee’s Service terminate by reason of Disability, then the Optionee shall have a
period of twelve (12) months following the date of such cessation of Service during which to exercise each outstanding option
held by such Optionee. (iii) If the Optionee dies while holding an outstanding option, then the personal representative of his
or her estate or the person or persons to whom the option is transferred pursuant to the Optionee’s will or the laws of
inheritance or the Optionee’s designated beneficiary or beneficiaries of that option shall have a twelve (12) month period
following the date of the Optionee’s death to exercise such option. (iv) Under no circumstances, however, shall any such
option be exercisable after the specified expiration of the option term. (v) During the applicable post-Service exercise period,
the option may not be exercised in the aggregate for more than the number of vested shares for which the option is exercisable
on the date of the Optionee’s cessation of Service. Upon the expiration of the applicable exercise period or (if earlier)
upon the expiration of the option term, the option shall terminate and cease to be outstanding for any vested shares for which
the option has not been exercised. However, the option shall, immediately upon the Optionee’s cessation of Service, terminate
and cease to be outstanding with respect to all option shares for which the option is not otherwise at the time exercisable or
in which the Optionee is not otherwise at that time vested. (vi) Should Optionee’s Service be terminated for Misconduct
or should Optionee otherwise engage in Misconduct while holding one or more outstanding options under the Plan, then all those
options shall terminate immediately and cease to remain outstanding.

 

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2.
The Plan Administrator shall have the discretion, exercisable either at the time an option is granted or at any time while the
option remains outstanding, to:

 

(i)
extend the period for which the option is to remain exercisable following Optionee’s cessation of Service or death from
the limited period otherwise in effect for that option to such greater period as the Plan Administrator shall deem appropriate,
but in no event beyond the expiration of the option term; and/or

 

(ii)
permit the option to be exercised, during the applicable post-Service exercise period, not only with respect to the number of
vested shares of Common Stock for which such option is exercisable at the time of the Optionee’s cessation of Service but
also with respect to one or more additional installments in which the Optionee would have vested under the option had the Optionee
continued in Service.

 

D.
Stockholder Rights. The holder of an option shall have no stockholder rights with respect to the shares subject
to the option until such person shall have exercised the option, paid the exercise price and become the recordholder of the purchased
shares.

 

E.
Unvested Shares. The Plan Administrator shall have the discretion to grant options which are exercisable for unvested
shares of Common Stock. Should the Optionee cease Service while holding such unvested shares, the Corporation shall have the right
to repurchase, at the exercise price paid per share, any or all those unvested shares. The terms upon which such repurchase right
shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares)
shall be established by the Plan Administrator and set forth in the document evidencing such repurchase right. The Plan Administrator
may not impose a vesting schedule upon any option grant or the shares of Common Stock subject to that option which is more restrictive
than twenty percent (20%) per year vesting, with the initial vesting to occur not later than one (1) year after the option grant
date. However, such limitation shall not be applicable to any option grants made to individuals who are officers of the Corporation,
non-employee Board members or independent consultants.

 

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F.
First Refusal Rights. Until the Common Stock is first registered under Section 12 of the 1934 Act, the Corporation
shall have the right of first refusal with respect to any proposed disposition by the Optionee (or any successor in interest)
of any shares of Common Stock issued under the Plan. Such right of first refusal shall be exercisable in accordance with the terms
established by the Plan Administrator and set forth in the document evidencing such right.

 

G.
Limited Transferability of Options. An Incentive Stock Option shall be exercisable only by the Optionee during his
or her lifetime and shall not be assignable or transferable other than by will or by the laws of inheritance following the Optionee’s
death. A Non-Statutory Option may be assigned in whole or in part during the Optionee’s lifetime to one or more members
of the Optionee’s family or to a trust established exclusively for one or more such family members or to Optionee’s
former spouse, to the extent such assignment is in connection with the Optionee’s estate plan or pursuant to a domestic
relations order. The assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the
Non-Statutory Option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in effect
for the option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Plan
Administrator may deem appropriate. Notwithstanding the foregoing, the Optionee may also designate one or more persons as the
beneficiary or beneficiaries of his or her outstanding options under the Plan, and those options shall, in accordance with such
designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee’s death while holding those
options. Such beneficiary or beneficiaries shall take the transferred options subject to all the terms and conditions of the applicable
agreement evidencing each such transferred option, including (without limitation) the limited period during which the option may
be exercised following the Optionee’s death.

 

II.
INCENTIVE OPTIONS

 

The
terms specified below shall be applicable to all Incentive Options. Except as modified by the provisions of this Section II, all
the provisions of Articles One, Two and Four shall be applicable to Incentive Options. Options which are specifically designated
as Non-Statutory Options shall not be subject to the terms of this Section II.

 

A.
Eligibility. Incentive Options may only be granted to Employees.

 

B.
Exercise Price. The exercise price per share shall not be less than one hundred percent (100%) of the Fair Market
Value per share of Common Stock on the option grant date.

 

C.
Dollar Limitation. The aggregate Fair Market Value of the shares of Common Stock (determined as of the respective
date or dates of grant) for which one or more options granted to any Employee under the Plan (or any other option plan of the
Corporation or any Parent or Subsidiary) may for the first time become exercisable as Incentive Options during any one (1) calendar
year shall not exceed the recipient’s annual income. To the extent the Employee holds two (2) or more such options which
become exercisable for the first time in the same calendar year, the foregoing limitation on the exercisability of such options
as Incentive Options shall be applied based on the order in which such options are granted.

 

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III.
CORPORATE TRANSACTION

 

A.
The shares subject to each option outstanding under the Plan at the time of a Corporate Transaction shall automatically vest in
full so that each such option shall, immediately prior to the effective date of the Corporate Transaction, become exercisable
for all of the shares of Common Stock at the time subject to that option and may be exercised for any or all of those shares as
fully-vested shares of Common Stock.

 

B.
All outstanding repurchase rights under the Option Grant Program shall also terminate automatically, and the shares of Common
Stock subject to those terminated rights shall immediately vest in full, in the event of any Corporate Transaction, except to
the extent: (i) those repurchase rights are assigned to the successor corporation (or parent thereof) in connection with such
Corporate Transaction; or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at
the time the repurchase right is issued.

 

C.
Immediately following the consummation of the Corporate Transaction, all outstanding options shall terminate and cease to be outstanding,
except to the extent assumed by the successor corporation (or parent thereof).

 

D.
Each option which is assumed in connection with a Corporate Transaction shall be appropriately adjusted, immediately after such
Corporate Transaction, to apply to the number and class of securities which would have been issuable to the Optionee in consummation
of such Corporate Transaction, had the option been exercised immediately prior to such Corporate Transaction. Appropriate adjustments
shall also be made to: (i) the number and class of securities available for issuance under the Plan following the consummation
of such Corporate Transaction; and (ii) the exercise price payable per share under each outstanding option, provided the aggregate
exercise price payable for such securities shall remain the same. To the extent the actual holders of the Corporation’s
outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Corporate Transaction, the successor
corporation may, in connection with the assumption of the outstanding options under this Plan, substitute one or more shares of
its own common stock with a fair market value equivalent to the cash consideration paid per share of Common Stock in such Corporate
Transaction.

 

E.
The Plan Administrator shall have the discretion, exercisable either at the time the option is granted or at any time while the
option remains outstanding, to structure one or more options so that those options shall automatically accelerate and vest in
full (and any repurchase rights of the Corporation with respect to the unvested shares subject to those options shall immediately
terminate) upon the occurrence of a Corporate Transaction, whether or not those options are to be assumed in the Corporate Transaction.

 

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F.
The Plan Administrator shall also have full power and authority, exercisable either at the time the option is granted or at any
time while the option remains outstanding, to structure such option so that the shares subject to that option will automatically
vest on an accelerated basis should the Optionee’s Service terminate by reason of an Involuntary Termination within a designated
period (not to exceed eighteen (18) months) following the effective date of any Corporate Transaction in which the option is assumed
and the repurchase rights applicable to those shares do not otherwise terminate. Any option so accelerated shall remain exercisable
for the fully-vested option shares until the expiration or sooner termination of the option term. In addition, the Plan Administrator
may provide that one or more of the Corporation’s outstanding repurchase rights with respect to shares held by the Optionee
at the time of such Involuntary Termination shall immediately terminate on an accelerated basis, and the shares subject to those
terminated rights shall accordingly vest at that time.

 

G.
The portion of any Incentive Option accelerated in connection with a Corporate Transaction shall remain exercisable as an Incentive
Option only to the extent the applicable One Hundred Thousand Dollar limitation is not exceeded. To the extent such dollar limitation
is exceeded, the accelerated portion of such option shall be exercisable as a Non-Statutory Option under the Federal tax laws.

 

H.
The grant of options under the Plan shall in no way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise
change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of
its business or assets.

 

IV.
CANCELLATION AND REGRANT OF OPTIONS

 

The
Plan Administrator shall have the authority to effect, at any time and from time to time, with the consent of the affected option
holders, the cancellation of any or all outstanding options under the Plan and to grant in substitution therefor new options covering
the same or different number of shares of Common Stock but with an exercise price per share based on the Fair Market Value per
share of Common Stock on the new option grant date.

 

ARTICLE
THREE

 

STOCK
ISSUANCE PROGRAM

 

I.
STOCK ISSUANCE TERMS

 

Shares
of Common Stock may be issued under the Stock Issuance Program through direct and immediate issuances without any intervening
option grants. Each such stock issuance shall be evidenced by a Stock Issuance Agreement which complies with the terms specified
below.

 

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A.
Purchase Price.

 

1.
The purchase price per share shall be fixed by the Plan Administrator but shall not be less than one hundred percent (100%) of
the Fair Market Value per share of Common Stock on the issue date. However, the purchase price per share of Common Stock issued
to a 10% Stockholder shall not be less than one hundred and ten percent (110%) of such Fair Market Value.

 

2.
Subject to the provisions of Section I of Article Four, shares of Common Stock may be issued under the Stock Issuance Program
for any of the following items of consideration which the Plan Administrator may deem appropriate in each individual instance:

 

(i)
cash or check made payable to the Corporation; or

 

(ii)
past services rendered to the Corporation (or any Parent or Subsidiary).

 

B.
Vesting Provisions.

 

1.
Shares of Common Stock issued under the Stock Issuance Program may, in the discretion of the Plan Administrator, be fully and
immediately vested upon issuance or may vest in one or more installments over the Participant’s period of Service or upon
attainment of specified performance objectives. However, the Plan Administrator may not impose a vesting schedule upon any stock
issuance effected under the Stock Issuance Program which is more restrictive than twenty percent (20%) per year vesting, with
initial vesting to occur not later than one (1) year after the issuance date. Such limitation shall not apply to any Common Stock
issuances made to the officers of the Corporation, non-employee Board members or independent consultants.

 

2.
Any new, substituted or additional securities or other property (including money paid other than as a regular cash dividend) which
the Participant may have the right to receive with respect to the Participant’s unvested shares of Common Stock by reason
of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change affecting the
outstanding Common Stock as a class without the Corporation’s receipt of consideration shall be issued subject to (i) the
same vesting requirements applicable to the Participant’s unvested shares of Common Stock and (ii) such escrow arrangements
as the Plan Administrator shall deem appropriate.

 

3.
The Participant shall have full stockholder rights with respect to any shares of Common Stock issued to the Participant under
the Stock Issuance Program, whether the Participant’s interest in those shares is vested. Accordingly, the Participant shall
have the right to vote such shares and to receive any regular cash dividends paid on such shares.

 

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4.
Should the Participant cease to remain in Service while holding one or more unvested shares of Common Stock issued under the Stock
Issuance Program or should the performance objectives not be attained with respect to one or more such unvested shares of Common
Stock, then those shares shall be immediately surrendered to the Corporation for cancellation, and the Participant shall have
no further stockholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the
Participant for consideration paid in cash or cash equivalent (including the Participant’s purchase-money indebtedness),
the Corporation shall repay to the Participant the cash consideration paid for the surrendered shares and shall cancel the unpaid
principal balance of any outstanding purchase-money note of the Participant attributable to such surrendered shares.

 

4.
The Plan Administrator may in its discretion waive the surrender and cancellation of one or more unvested shares of Common Stock
(or other assets attributable thereto) which would otherwise occur upon the non-completion of the vesting schedule applicable
to those shares. Such waiver shall result in the immediate vesting of the Participant’s interest in the shares of Common
Stock as to which the waiver applies. Such waiver may be affected at any time, whether before or after the Participant’s
cessation of Service or the attainment or non-attainment of the applicable performance objectives.

 

C.
First Refusal Rights. Until the Common Stock is first registered under Section 12 of the 1934 Act, the Corporation
shall have the right of first refusal with respect to any proposed disposition by the Participant (or any successor in interest)
of any shares of Common Stock issued under the Stock Issuance Program. Such right of first refusal shall be exercisable in accordance
with the terms established by the Plan Administrator and set forth in the document evidencing such right.

 

II.
CORPORATE TRANSACTION

 

A.
Upon the occurrence of a Corporate Transaction, all outstanding repurchase rights under the Stock Issuance Program shall terminate
automatically, and the shares of Common Stock subject to those terminated rights shall immediately vest in full, except to the
extent: (i) those repurchase rights are assigned to the successor corporation (or parent thereof) in connection with such Corporate
Transaction; or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time
the repurchase right is issued.

 

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B.
The Plan Administrator shall have the discretionary authority, exercisable either at the time the unvested shares are issued or
any time while the Corporation’s repurchase rights with respect to those shares remain outstanding, to provide that those
rights shall automatically terminate on an accelerated basis, and the shares of Common Stock subject to those terminated rights
shall immediately vest, in the event the Participant’s Service should subsequently terminate by reason of an Involuntary
Termination within a designated period (not to exceed eighteen (18) months) following the effective date of any Corporate Transaction
in which those repurchase rights are assigned to the successor corporation (or parent thereof).

 

C.
Involuntary Termination Following Corporate Transaction

 

1.
To the extent the Repurchase Right is assigned to the successor corporation (or parent thereof) in connection with a Corporate
Transaction, no accelerated vesting of the Purchased Shares shall occur upon such Corporate Transaction, and the Repurchase Right
shall continue to remain in full force and effect in accordance with the provisions of the Issuance Agreement. Participant shall,
over his or her period of Service following the Corporate Transaction, continue to vest in the Purchased Shares in one or more
installments in accordance with the provisions of the Issuance Agreement. However, upon an Involuntary Termination of Participant’s
Service within eighteen (18) months following the Corporate Transaction, the Repurchase Right shall terminate automatically, and
all the Purchased Shares shall immediately vest in full at that time. Any unvested escrow account maintained on Participant’s
behalf pursuant to Paragraph D.5 of the Issuance Agreement shall also vest at the time of such Involuntary Termination and shall
be paid to Participant promptly thereafter.

 

2.
For purposes of this section, the following definitions shall be in effect:

 

An
Involuntary Termination shall mean the termination of Participant’s Service by reason of:

 

(a)
Participant’s involuntary dismissal or discharge by the Corporation for reasons other than for Misconduct; or

 

(b)
Participant’s voluntary resignation following (A) a change in his or her position with the Corporation (or Parent or Subsidiary
employing Participant) which materially reduces his or her duties and responsibilities or the level of management to which he
or she reports, (B) a reduction in Participant’s level of compensation (including base salary, fringe benefits and target
bonus under any corporate-performance based incentive programs) by more than fifteen percent (15%) or (C) a relocation of Participant’s
place of employment by more than fifty (50) miles, provided and only if such change, reduction or relocation is effected by the
Corporation without Participant’s consent.

 

Misconduct
shall include the termination of Participant’s Service by reason or Participant’s commission of any act of fraud,
embezzlement or dishonesty, any unauthorized use or disclosure by Participant of confidential information or trade secrets of
the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by Participant adversely affecting the business
or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way
preclude or restrict the right of the Corporation (or any Parent or Subsidiary) to discharge or dismiss the Participant or any
other person in the Service of the Corporation (or any Parent or Subsidiary) for any other acts or omissions, but such other acts
or omissions shall not be deemed, for purposes of the Plan to constitute grounds for termination for Misconduct.

 

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III.
SHARE ESCROW/LEGENDS

 

Unvested
shares may, in the Plan Administrator’s discretion, be held in escrow by the Corporation until the Participant’s interest
in such shares vests or may be issued directly to the Participant with restrictive legends on the certificates evidencing those
unvested shares.

 

ARTICLE
FOUR

 

MISCELLANEOUS

 

I.
FINANCING

 

The
Plan Administrator may permit any Optionee or Participant to pay the option exercise price under the Option Grant Program or the
purchase price for shares issued under the Stock Issuance Program by delivering a full-recourse, interest bearing promissory note
payable in one or more installments and secured by the purchased shares. However, any promissory note delivered by a consultant
must be secured by collateral in addition to the purchased shares of Common Stock. In no event may the maximum credit available
to the Optionee or Participant exceed the sum of: (i) the aggregate option exercise price or purchase price payable for the purchased
shares; plus (ii) any Federal, state and local income and employment tax liability incurred by the Optionee or the Participant
in connection with the option exercise or share purchase.

 

II.
EFFECTIVE DATE AND TERM OF PLAN

 

A.
The Plan shall become effective when adopted by the Board, but no option granted under the Plan may be exercised, and no shares
shall be issued under the Plan, until the Plan is approved by the Corporation’s stockholders. If such stockholder approval
is not obtained within twelve (12) months after the date of the Board’s adoption of the Plan, then all options previously
granted under the Plan shall terminate and cease to be outstanding, and no further options shall be granted, and no shares shall
be issued under the Plan. Subject to such limitation, the Plan Administrator may grant options and issue shares under the Plan
at any time after the effective date of the Plan and before the date fixed herein for termination of the Plan.

 

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B.
The Plan shall terminate upon the earliest of: (i) the expiration of the ten (10) year period measured from the date the Plan
is adopted by the Board; (ii) the date on which all shares available for issuance under the Plan shall have been issued as vested
shares; or (iii) the termination of all outstanding options in connection with a Corporate Transaction. All options and unvested
stock issuances outstanding at the time of a clause (i) termination event shall continue to have full force and effect in accordance
with the provisions of the documents evidencing those options or issuances.

 

III.
AMENDMENT OF THE PLAN

 

A.
The Board shall have complete and exclusive power and authority to amend or modify the Plan in any or all respects. However, no
such amendment or modification shall adversely affect the rights and obligations with respect to options or unvested stock issuances
at the time outstanding under the Plan unless the Optionee or the Participant consents to such amendment or modification. In addition,
certain amendments may require stockholder approval pursuant to applicable laws and regulations.

 

B.
Options may be granted under the Option Grant Program and shares may be issued under the Stock Issuance Program which are in each
instance in excess of the number of shares of Common Stock then available for issuance under the Plan, provided any excess shares
actually issued under those programs shall be held in escrow until there is obtained stockholder approval of an amendment sufficiently
increasing the number of shares of Common Stock available for issuance under the Plan. If such stockholder approval is not obtained
within twelve (12) months after the date the first such excess grants or issuances are made, then: (i) any unexercised options
granted on the basis of such excess shares shall terminate and cease to be outstanding; and (ii) the Corporation shall promptly
refund to the Optionees and the Participants the exercise or purchase price paid for any excess shares issued under the Plan and
held in escrow, together with interest (at the applicable Short Term Federal Rate) for the period the shares were held in escrow,
and such shares shall thereupon be automatically cancelled and cease to be outstanding.

 

IV.
USE OF PROCEEDS

 

Any
cash proceeds received by the Corporation from the sale of shares of Common Stock under the Plan shall be used for general corporate
purposes.

 

V.
WITHHOLDING

 

The
Corporation’s obligation to deliver shares of Common Stock upon the exercise of any options granted under the Plan or upon
the issuance or vesting of any shares issued under the Plan shall be subject to the satisfaction of all applicable Federal, state
and local income and employment tax withholding requirements.

 

    	 	13	 

    	 

    

 

VI.
REGULATORY APPROVALS

 

The
implementation of the Plan, the granting of any options under the Plan and the issuance of any shares of Common Stock: (i) upon
the exercise of any option; or (ii) under the Stock Issuance Program shall be subject to the Corporation’s procurement of
all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the options granted under it and
the shares of Common Stock issued pursuant to it.

 

VII.
NO EMPLOYMENT OR SERVICE RIGHTS

 

Nothing
in the Plan shall confer upon the Optionee or the Participant any right to continue in Service for any period of specific duration
or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining
such person) or of the Optionee or the Participant, which rights are hereby expressly reserved by each, to terminate such person’s
Service at any time for any reason, with or without cause.

 

VIII.
FINANCIAL REPORTS

 

The
Corporation shall deliver a balance sheet and an income statement at least annually to everyone holding an outstanding option
under the Plan, unless such individual is a key Employee whose duties in connection with the Corporation (or any Parent or Subsidiary)
assure such individual access to equivalent information.

 

APPENDIX

 

The
following definitions shall be in effect under the Plan:

 

A.
Board shall mean the Corporation’s Board of Directors.

 

B.
Code shall mean the Internal Revenue Code of 1986, as amended.

 

C.
Committee shall mean a committee of two (2) or more Board members appointed by the Board to exercise one or more administrative
functions under the Plan.

 

D.
Common Stock shall mean the Corporation’s common stock.

 

E.
Corporate Transaction shall mean either of the following stockholder-approved transactions to which the Corporation is
a party:

 

(i)
a merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the
Corporation’s outstanding securities are transferred to a person or persons different from the persons holding those securities
immediately prior to such transaction; or

 

    	 	14	 

    	 

    

 

(ii)
the sale, transfer or other disposition of all or substantially all the Corporation’s assets in complete liquidation or
dissolution of the Corporation.

 

F.
Corporation shall mean Cipherloc Corporation, a Texas corporation, and any successor corporation to all or substantially
all the assets or voting stock of Cipherloc Corporation, which shall by appropriate action adopt the Plan.

 

G.
Disability shall mean the inability of the Optionee or the Participant to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment and shall be determined by the Plan Administrator based on
such medical evidence as the Plan Administrator deems warranted under the circumstances.

 

H.
Employee shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the
control and direction of the employer entity as to both the work to be performed and the manner and method of performance.

 

I.
Exercise Date shall mean the date on which the Corporation shall have received written notice of the option exercise.

 

J.
Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

 

(i)
If the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling
price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers
on the Nasdaq National Market and published in The Wall Street Journal. If there is no closing selling price for the Common Stock
on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such
quotation exists.

 

(ii)
If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price
per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary
market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange and published
in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market
Value shall be the closing selling price on the last preceding date for which such quotation exists.

 

(iii)
If the Common Stock is at the time neither listed on any Stock Exchange nor traded on the Nasdaq National Market, then the Fair
Market Value shall be determined by the Plan Administrator after considering such factors as the Plan Administrator shall deem
appropriate.

 

K.
Incentive Option shall mean an option, which satisfies the requirements of Code Section 422.

 

    	 	15	 

    	 

    

 

L.
Involuntary Termination shall mean the termination of the Service of any individual, which occurs by reason of:

 

(i)
such individual’s involuntary dismissal or discharge by the Corporation for reasons other than Misconduct; or

 

(ii)
such individual’s voluntary resignation following

 

(A)
a change in his or her position with the Corporation which materially reduces his or her duties and responsibilities or the level
of management to which he or she reports, (B) a reduction in his or her level of compensation (including base salary, fringe benefits
and target bonus under any corporate-performance based bonus or incentive programs) by more than fifteen percent (15%) or (C)
a relocation of such individual’s place of employment by more than fifty (50) miles, provided and only if such change, reduction
or relocation is effected without the individual’s consent.

 

M.
Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by the Optionee or Participant,
any unauthorized use or disclosure by such person of confidential information or trade secrets of the Corporation (or any Parent
or Subsidiary), or any other intentional misconduct by such person adversely affecting the business or affairs of the Corporation
(or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude or restrict the right
of the Corporation (or any Parent or Subsidiary) to discharge or dismiss any Optionee or Participant or other person in the Service
of the Corporation (or any Parent or Subsidiary) for any other acts or omissions, but such other acts or omissions shall not be
deemed, for purposes of the Plan, to constitute grounds for termination for Misconduct.

 

N.
1934 Act shall mean the Securities Exchange Act of 1934, as amended.

 

O.
Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422.

 

P.
Option Grant Program shall mean the option grant program in effect under the Plan.

 

Q.
Optionee shall mean any person to whom an option is granted under the Plan.

 

R.
Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation,
provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such
chain.

 

S.
Participant shall mean any person who is issued shares of Common Stock under the Stock Issuance Program.

 

T.
Plan shall mean the Corporation’s 2018 Stock Option/Stock Issuance Plan, as set forth in this document.

 

    	 	16	 

    	 

    

 

U.
Plan Administrator shall mean either the Board or the Committee acting in its capacity as administrator of the Plan.

 

V.
Service shall mean the provision of services to the Corporation (or any Parent or Subsidiary) by a person in the capacity
of an Employee, a non-employee member of the board of directors or a consultant or independent advisor, except to the extent otherwise
specifically provided in the documents evidencing the option grant.

 

W.
Stock Exchange shall mean either the American Stock Exchange or the New York Stock Exchange.

 

X.
Stock Issuance Agreement shall mean the agreement entered by the Corporation and the Participant at the time of issuance
of shares of Common Stock under the Stock Issuance Program.

 

Y.
Stock Issuance Program shall mean the stock issuance program in effect under the Plan.

 

Z.
Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with
the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination,
stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

 

AA.
10% Stockholder shall mean the owner of stock (as determined under Code Section 424(d)) possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary).

 

Approved
by the Board of Directors on August 27, 2018.

 

	By	/s/
    Michael De La Garza	 
	 	Michael
    De La Garza, President/CEO	 

 

    	 	17Exhibit 10.1

 

AMENDMENT NO. 9 TO

THIRD AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

 

THIS AMENDMENT NO. 9 TO THIRD AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT (this “Agreement”) is dated and is effective as of December 31, 2018, and is entered into by and among UNITED RENTALS (NORTH AMERICA), INC., a Delaware corporation (the “Originator”),  UNITED RENTALS RECEIVABLES LLC II, a Delaware limited liability company (the “Seller”), UNITED RENTALS, INC., a Delaware corporation (the “Collection Agent”), LIBERTY STREET FUNDING LLC, a Delaware limited liability company (“Liberty”), GOTHAM FUNDING CORPORATION, a Delaware corporation (“Gotham”), and FAIRWAY FINANCE COMPANY, LLC, a Delaware limited liability company (“Fairway”, and together with Liberty and Gotham, the “Purchasers”), THE BANK OF NOVA SCOTIA (“Scotia Capital”), as a Bank (as defined in the Purchase Agreement referred to below), as administrative agent (the “Administrative Agent”) for the Investors and the Banks (as such terms are defined in the Purchase Agreement referred to below) and as purchaser agent for Liberty (the “Liberty Purchaser Agent”), PNC BANK, NATIONAL ASSOCIATION (“PNC”), as a Bank and as purchaser agent for itself (the “PNC Purchaser Agent”), MUFG BANK, LTD. (formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.) (“BTMU”), as a Bank and as purchaser agent for Gotham (the “Gotham Purchaser Agent”), SUNTRUST BANK (“ST”), as a Bank and as purchaser agent for itself (the “ST Purchaser Agent”), BANK OF MONTREAL (“BMO”), as a Bank and as purchaser agent for Fairway (the “Fairway Purchaser Agent”), and THE TORONTO-DOMINION BANK (“TD”), as a Bank and as purchaser agent for itself (the “TD Purchaser Agent”, and together with the Liberty Purchaser Agent, the PNC Purchaser Agent, the Gotham Purchaser Agent, the ST Purchaser Agent and the Fairway Purchaser Agent, the “Purchaser Agents”).  Capitalized terms used and not otherwise defined herein are used as defined in the Purchase Agreement (as defined below).

 

RECITALS

 

WHEREAS, the Seller, the Collection Agent, the Purchasers, the Purchaser Agents, the Banks party thereto and the Administrative Agent are parties to that certain Third Amended and Restated Receivables Purchase Agreement dated as of September 24, 2012 (as amended, supplemented or otherwise modified, the “Purchase Agreement”);

 

WHEREAS, the Originator, the Collection Agent and the Seller are parties to that certain Third Amended and Restated Purchase and Contribution Agreement dated as of September 24, 2012 (as amended, supplemented or otherwise modified, the “Contribution Agreement”);

 

WHEREAS, the Seller desires to (i) increase the Purchase Limit and (ii) in connection with such increase in the Purchase Limit, cause each of Scotia Capital, PNC, BTMU, ST and TD to increase its respective Bank Commitment in an aggregate amount for all such Banks equal to such increase in the Purchase Limit;

 

WHEREAS, each of the applicable parties wishes to confirm their consent to such increase; and

 

1

 

WHEREAS, pursuant to Section 7.01 of the Purchase Agreement, the parties wish to make certain amendments to the Purchase Agreement as hereinafter set forth.

 

NOW, THEREFORE, the parties agree as follows:

 

Section 1.                                           Increase in Purchase Limit and Bank Commitments; Adjustment of Bank Commitments and Percentages.  As of the Effective Date (as defined below):

 

(a)                                 Pursuant to and in accordance with the Purchase Agreement, the Purchase Limit is hereby increased by $100,000,000 and the definition of “Purchase Limit” contained in Exhibit I to the Purchase Agreement is hereby amended by deleting the dollar figure “$875,000,000” contained therein and replacing it with the dollar figure “$975,000,000”.  In accordance with Section 7.01 of the Purchase Agreement, each of the Seller, the Administrative Agent, the Banks, and the Purchaser Agents consents to such amendment.

 

(b)                                 Pursuant to and in accordance with Section 1.13(b) of the Purchase Agreement, in connection with the increase in the Purchase Limit, the Seller desires to cause (v) Scotia Capital to increase its Bank Commitment by $39,000,000, (w) PNC to increase its Bank Commitment by $13,000,000, (x) BTMU to increase its Bank Commitment by $14,000,000, (y) ST to increase its Bank Commitment by $13,000,000 and (z) TD to increase its Bank Commitment by $21,000,000, and each of Scotia Capital, PNC, BTMU, ST and TD agrees to such increase in its respective Bank Commitment.  Each of the Purchasers, the Purchaser Agents and the Administrative Agent hereby consents to such increase in the respective Bank Commitment of each of Scotia Capital, PNC, BTMU, ST and TD.

 

(c)                                  Upon the effectiveness of the Bank Commitment increases in Section 1(b), the Bank Commitment of each of the Banks shall be as follows (and each Bank’s Percentage shall be that percentage determined pursuant to the Purchase Agreement):

 

	
Bank
    	
 
    	
Bank Commitment
    	
 
    
	
ST
    	
 
    	
$
    	
113,000,000
    	
 
    
	
BTMU
    	
 
    	
$
    	
124,000,000
    	
 
    
	
BMO
    	
 
    	
$
    	
100,000,000
    	
 
    
	
PNC
    	
 
    	
$
    	
113,000,000
    	
 
    
	
TD
    	
 
    	
$
    	
186,000,000
    	
 
    
	
Scotia Capital
    	
 
    	
$
    	
339,000,000
    	
 
    
	
TOTAL
    	
 
    	
$
    	
975,000,000.00
    	
 
    

 

(d)                                 In connection with the foregoing adjustments of the Bank Commitments and the resulting adjustments to each Bank’s Percentage, the applicable Banks (or related Purchasers) whose Percentage has decreased shall transfer a Receivable Interest or Receivable Interests to each of the applicable Banks (or related Purchasers) whose Percentage has increased, as applicable, in exchange for an aggregate cash payment from each such Person in an amount equal to the

 

2

 

aggregate Capital of such Receivable Interests so transferred to such Person, so that after giving effect to such transfers of Receivable Interests and such cash payments, each applicable Investor shall hold aggregate outstanding Capital equal to such Investor’s ratable share of the aggregate outstanding Capital of all Investors as of such time (based on the applicable Bank’s Percentage, as so adjusted).  The Seller hereby consents to the foregoing transfers of Receivable Interests.  Each of the Seller, the Purchaser Agents and the Administrative Agent hereby acknowledges and agrees that this Agreement constitutes notice to it by the relevant transferors of the transfer of Receivable Interests pursuant to this Section 1(d).

 

Section 2.                                           Amendments to the Purchase Agreement.  Effective as of the Effective Date, immediately after giving effect to the actions contemplated by Section 1 hereof, the Purchase Agreement is hereby amended to incorporate the changes shown on the marked pages attached hereto as Annex A. Notwithstanding anything to the contrary contained in any Transaction Document, the Originator agrees and acknowledges that each of the Collection Accounts is maintained and owned solely by the Seller and the Originator has no interest in any of the Collection Accounts.

 

Section 3.                                           Effectiveness of this Agreement. This Agreement shall become effective as of the date hereof (the “Effective Date”) at such time as:

 

(a)                                 executed counterparts of this Agreement have been delivered by each party hereto to the other parties hereto;

 

(b)                                 the Purchaser Agent for each of Scotia Capital, PNC, BTMU, ST and TD shall have received payment of a one time upfront fee in an amount equal to two and one-half basis points on the amount of the increase of its related Bank’s Bank Commitment to occur pursuant to this Agreement on the Effective Date;

 

(c)                                  the Administrative Agent shall have received a confirmation, in form and substance reasonably satisfactory to the Administrative Agent, from Sullivan & Cromwell LLP that this Agreement does not affect its opinions included in its opinion rendered on June 29, 2018 with respect to the renewal of the Purchase Agreement; and

 

(d)                                 the Administrative Agent and the Purchaser Agents shall have received, in form and substance reasonably satisfactory to the Administrative Agent and each Purchaser Agent, a certificate of the Secretary or Assistant Secretary of the Seller certifying copies of the resolutions of the Board of Directors of the Seller approving this Agreement and the transactions contemplated hereby.

 

Section 4.                                           Representations and Warranties.  The Originator, the Seller and the Collection Agent represent and warrant as follows:

 

(a)                                 The execution, delivery and performance by the Originator, the Collection Agent and the Seller of this Agreement (i) are within its corporate or limited liability company powers, as applicable, (ii) have been duly authorized by all necessary corporate or limited liability company action, as applicable, and (iii) do not contravene (1) its charter, by-laws or limited liability company agreement, as applicable, (2) any law, rule or regulation applicable to it or (3)

 

3

 

any contractual restriction binding on it or its property, in each case under clauses (2) or (3) where such contravention would reasonably be expected to have a material adverse effect on the collectability of any Pool Receivable, on the Originator, on the Seller or on the performance by the Collection Agent of its obligations under the Contribution Agreement or the Purchase Agreement.  This Agreement has been duly executed and delivered by the Originator, the Seller and the Collection Agent.

 

(b)                                 No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery and performance by the Originator, the Seller or the Collection Agent of this Agreement or any other document to be delivered by the Originator, the Seller or the Collection Agent hereunder other than those already obtained; provided that the right of any assignee of a Receivable the obligor of which is a Government Obligor to enforce such Receivable directly against such obligor may be restricted by the Federal Assignment of Claims Act or any similar applicable law to the extent the Originator or the Seller shall not have complied with the applicable provisions of any such law in connection with the assignment or subsequent reassignment of any such Receivable.

 

(c)                                  This Agreement constitutes the legal, valid and binding obligation of the Originator, the Seller and the Collection Agent, enforceable against the Originator, the Seller and the Collection Agent in accordance with its terms subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights generally and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

(d)                                 The representations and warranties contained in (i) Section 4.01 of the Contribution Agreement (with respect to the Originator), (ii) Exhibit III to the Purchase Agreement (with respect to the Seller) and (iii) Section 4.08 of the Purchase Agreement (with respect to the Collection Agent) are correct in all material respects (except for those representations and warranties that are conditioned by materiality, material adverse effect or a similar qualification, which shall be correct in all respects) on and as of the date hereof as though made on and as of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been correct in all material respects (except for those representations and warranties that are conditioned by materiality, material adverse effect or a similar qualification, which shall have been correct in all respects) on and as of such earlier date.

 

(e)                                  No event has occurred and is continuing, or would result from the transactions contemplated hereby, that constitutes an Event of Termination or an Incipient Event of Termination.

 

Section 5.                                           Purchase Agreement and Contribution Agreement in Full Force and Effect as Amended.

 

(a)                                 All of the provisions of the Purchase Agreement, as amended hereby, and the Contribution Agreement, and all of the provisions of all other documentation required to be delivered with respect thereto shall remain in full force and effect and are ratified and confirmed in all respects.

 

4

 

(b)                                 The respective parties hereto agree to be bound by the terms and conditions of the Purchase Agreement, as amended hereby, and the Contribution Agreement, as applicable, as though such terms and conditions were set forth herein.

 

(c)                                  This Agreement may not be amended or otherwise modified except as provided in the Purchase Agreement.

 

(d)                                 This Agreement shall constitute a Transaction Document under both the Purchase Agreement and the Contribution Agreement.

 

Section 6.                                           Reference in Other Documents; Affirmation of Performance Undertaking Agreement.

 

(a)                                 On and from the date hereof, references to the Purchase Agreement in any agreement or document (including without limitation the Purchase Agreement) shall be deemed to include a reference to the Purchase Agreement, as amended hereby, whether or not reference is made to this Agreement.

 

(b)                                 United Rentals, Inc. hereby consents to this Agreement and hereby affirms and agrees that the Performance Undertaking Agreement is, and shall continue to be, in full force and effect and is hereby ratified and affirmed in all respects.  Upon and at all times after the effectiveness of this Agreement, each reference in the Performance Undertaking Agreement to the “Receivables Purchase Agreement”, “thereunder”, “thereof” or words of like import shall mean and be a reference to the Purchase Agreement as amended by this Agreement, and as hereafter amended or restated.

 

Section 7.                                           Costs and Expenses.

 

The Seller agrees to pay on demand all reasonable and documented costs and expenses in connection with the review, negotiation, revision, execution and delivery of this Agreement and the other documents and agreements to be delivered hereunder and thereunder, including, without limitation, the reasonable and documented fees and out-of-pocket expenses of one firm of primary counsel for the Administrative Agent and the Purchaser Agents, the Purchasers and the Banks.

 

Section 8.                                           Counterparts.

 

This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement.   Delivery of an executed counterpart of a signature page to this Agreement by facsimile or by electronic mail in portable document format (.pdf) shall be effective as delivery of a manually executed counterpart of this Agreement.

 

5

 

Section 9.                                           Headings.

 

The descriptive headings of the various sections of this Agreement are inserted for convenience of reference only and shall not be deemed to affect the meaning or construction of any of the provisions hereof.

 

Section 10.                                    Governing Laws.

 

This Agreement and the rights and obligations of the parties under this Agreement shall be governed by, and construed in accordance with, the laws of the state of New York (without giving effect to the conflict of laws principles thereof, other than Section 5-1401 of the New York General Obligations Law, which shall apply hereto).

 

The remainder of this page is intentionally left blank.

 

6

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

 

	
ORIGINATOR:
    	
UNITED   RENTALS (NORTH AMERICA), INC.
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Irene Moshouris
    
	
 
    	
 
    	
Name:
    	
Irene   Moshouris
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    
	
 
    	
 
    
	
SELLER:
    	
UNITED   RENTALS RECEIVABLES LLC II
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Irene Moshouris
    
	
 
    	
 
    	
Name:
    	
Irene   Moshouris
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    
	
 
    	
 
    
	
COLLECTION   AGENT:
    	
UNITED   RENTALS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Irene Moshouris
    
	
 
    	
 
    	
Name:
    	
Irene   Moshouris
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Treasurer
    

 

	
SOLELY   FOR PURPOSES OF
    	
 
    
	
SECTION 6(b):
    	
 
    
	
 
    	
 
    
	
UNITED   RENTALS, INC.
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    
	
 
    	
/s/   Irene Moshouris
    	
 
    
	
Name:
    	
Irene   Moshouris
    	
 
    
	
Title:
    	
Senior   Vice President and Treasurer
    	
 
    

 

Signature Page —

AMENDMENT NO. 9 TO RPA

 

 

	
ADMINISTRATIVE   AGENT:
    	
THE   BANK OF NOVA SCOTIA
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   M. Grad
    
	
 
    	
 
    	
Name:
    	
M.   Grad
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
PURCHASER:
    	
LIBERTY   STREET FUNDING LLC
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Kevin J. Corrigan
    
	
 
    	
 
    	
Name:
    	
Kevin   J. Corrigan
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
PURCHASER   AGENT:
    	
THE   BANK OF NOVA SCOTIA
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   M. Grad
    
	
 
    	
 
    	
Name:
    	
M.   Grad
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
BANK:
    	
THE   BANK OF NOVA SCOTIA
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   M. Grad
    
	
 
    	
 
    	
Name:
    	
M.   Grad
    
	
 
    	
 
    	
Title:
    	
Director
    

 

Signature Page —

AMENDMENT NO. 9 TO RPA

 

 

	
PURCHASER   AGENT:
    	
PNC   BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Christopher Blaney
    
	
 
    	
 
    	
Name:
    	
Christopher   Blaney
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    
	
BANK:
    	
PNC   BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Christopher Blaney
    
	
 
    	
 
    	
Name:
    	
Christopher   Blaney
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    

 

Signature Page —

AMENDMENT NO. 9 TO RPA

 

 

	
PURCHASER:   
    	
GOTHAM   FUNDING CORPORATION
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Kevin J. Corrigan
    
	
 
    	
 
    	
Name:
    	
Kevin   J. Corrigan
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
PURCHASER   AGENT:
    	
MUFG   BANK, LTD.
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Nicolas Mounier
    
	
 
    	
 
    	
Name:
    	
Nicolas   Mounier
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
BANK:
    	
MUFG   BANK, LTD.
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Nicolas Mounier
    
	
 
    	
 
    	
Name:
    	
Nicolas   Mounier
    
	
 
    	
 
    	
Title:
    	
Director
    

 

Signature Page —

AMENDMENT NO. 9 TO RPA

 

 

	
PURCHASER   AGENT:
    	
SUNTRUST   BANK
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Emily Shields
    
	
 
    	
 
    	
Name:
    	
Emily   Shields
    
	
 
    	
 
    	
Title:
    	
First   Vice President
    
	
 
    	
 
    
	
BANK:
    	
SUNTRUST   BANK
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Emily Shields
    
	
 
    	
 
    	
Name:
    	
Emily   Shields
    
	
 
    	
 
    	
Title:
    	
First   Vice President
    

 

Signature Page —

AMENDMENT NO. 9 TO RPA

 

 

	
PURCHASER:
    	
FAIRWAY   FINANCE COMPANY, LLC
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Irina Khaimova
    
	
 
    	
 
    	
Name:
    	
Irina   Khaimova
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
PURCHASER   AGENT:
    	
BANK   OF MONTREAL
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Karen Louie
    
	
 
    	
 
    	
Name:
    	
Karen   Louie
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
BANK:
    	
BANK   OF MONTREAL
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Karen Louie
    
	
 
    	
 
    	
Name:
    	
Karen   Louie
    
	
 
    	
 
    	
Title:
    	
Director
    

 

Signature Page —

AMENDMENT NO. 9 TO RPA

 

 

	
PURCHASER   AGENT:
    	
THE   TORONTO-DOMINION BANK
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Bradley Purkis
    
	
 
    	
 
    	
Name:
    	
Bradley   Purkis
    
	
 
    	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    
	
BANK:
    	
THE   TORONTO-DOMINION BANK
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    	
/s/   Rene Landry
    
	
 
    	
 
    	
Name:
    	
Rene   Landry
    
	
 
    	
 
    	
Title:
    	
Director
    

 

Signature Page —

AMENDMENT NO. 9 TO RPA

 

 

ANNEX A

CHANGED PAGES TO PURCHASE AGREEMENT

 

 

CONFORMED COPY INCORPORATING

AMENDMENT NO. 89 EFFECTIVE AS OF JUNE 29DECEMBER 31, 2018

 

	
 
    

 

THIRD AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

 

Dated as of September 24, 2012

 

Among

 

UNITED RENTALS RECEIVABLES LLC II,

as Seller,

 

UNITED RENTALS, INC.,

as Collection Agent,

 

LIBERTY STREET FUNDING LLC,

as a Purchaser,

 

GOTHAM FUNDING CORPORATION,

as a Purchaser,

 

FAIRWAY FINANCE COMPANY, LLC,

as a Purchaser,

 

THE BANK OF NOVA SCOTIA,

as Purchaser Agent for Liberty, as Administrative Agent and as a Bank,

 

PNC BANK, NATIONAL ASSOCIATION,

as Purchaser Agent for itself and as a Bank,

 

MUFG BANK, LTD. (formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.),

as Purchaser Agent for Gotham and as a Bank,

 

SUNTRUST BANK,

as Purchaser Agent for itself and as a Bank,

 

BANK OF MONTREAL,

as Purchaser Agent for Fairway and as a Bank,

 

and

 

THE TORONTO-DOMINION BANK,

as Purchaser Agent for itself and as a Bank

 

	
 
    

 

 

Table of Contents

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I                                AMOUNTS   AND TERMS OF THE PURCHASES
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 1.01.
    	
Purchase Facility
    	
2
    
	
SECTION 1.02.
    	
Making Purchases
    	
2
    
	
SECTION 1.03.
    	
Receivable Interest   Computation
    	
7
    
	
SECTION 1.04.
    	
Settlement Procedures
    	
78
    
	
SECTION 1.05.
    	
Fees
    	
12
    
	
SECTION 1.06.
    	
Payments and   Computations, Etc.
    	
12
    
	
SECTION 1.07.
    	
Dividing or Combining   Receivable Interests
    	
13
    
	
SECTION 1.08.
    	
Increased Costs and   Requirements of Law
    	
13
    
	
SECTION 1.09.
    	
Intended Characterization;   Security Interest
    	
15
    
	
SECTION 1.10.
    	
[Reserved]
    	
16
    
	
SECTION 1.11.
    	
Sharing of Payments
    	
16
    
	
SECTION 1.12.
    	
Repurchase Option
    	
167
    
	
SECTION 1.13.
    	
Extension; Additional   Purchasers; Increased Commitments
    	
17
    
	
SECTION 1.14.
    	
Defaulting Banks; Delaying   Banks
    	
18
    
	
 
    	
 
    	
 
    
	
ARTICLE II                           REPRESENTATIONS   AND WARRANTIES; COVENANTS; EVENTS OF TERMINATION
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 2.01.
    	
Representations and   Warranties; Covenants
    	
19
    
	
SECTION 2.02.
    	
Events of Termination
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE III                      INDEMNIFICATION
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 3.01.
    	
Indemnities by the   Seller
    	
20
    
	
 
    	
 
    	
 
    
	
ARTICLE IV                       ADMINISTRATION   AND COLLECTION OF POOL RECEIVABLES
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 4.01.
    	
Designation of   Collection Agent
    	
22
    
	
SECTION 4.02.
    	
Duties of Collection   Agent
    	
223
    
	
SECTION 4.03.
    	
Certain Rights of the   Administrative Agent
    	
234
    
	
SECTION 4.04.
    	
Rights and Remedies
    	
25
    
	
SECTION 4.05.
    	
Further Actions   Evidencing Purchases
    	
256
    
	
SECTION 4.06.
    	
Covenants of the   Collection Agent and the Seller
    	
267
    
	
SECTION 4.07.
    	
Indemnities by the   Collection Agent
    	
278
    
	
SECTION 4.08.
    	
Representations and Warranties   of the Collection Agent
    	
289
    
	
 
    	
 
    	
 
    
	
ARTICLE V                            THE   ADMINISTRATIVE AGENT
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 5.01.
    	
Authorization and   Action
    	
30
    
	
SECTION 5.02.
    	
Administrative Agent’s   Reliance, Etc.
    	
301
    
				

 

i

 

	
SECTION 5.03.
    	
Indemnification of   Administrative Agent
    	
31
    
	
SECTION 5.04.
    	
Scotia Capital and   Affiliates
    	
312
    
	
SECTION 5.05.
    	
Bank’s Purchase   Decision
    	
312
    
	
SECTION 5.06.
    	
[Reserved]
    	
312
    
	
SECTION 5.07.
    	
Notice of Event of   Termination
    	
312
    
	
 
    	
 
    	
 
    
	
ARTICLE VI                       THE PURCHASER   AGENTS
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 6.01.
    	
Authorization
    	
323
    
	
SECTION 6.02.
    	
Reliance by Purchaser   Agent
    	
334
    
	
SECTION 6.03.
    	
Agent and Affiliates
    	
345
    
	
SECTION 6.04.
    	
Notices
    	
345
    
	
SECTION 6.05.
    	
Bank’s Purchase   Decision
    	
345
    
	
 
    	
 
    	
 
    
	
ARTICLE VII                  MISCELLANEOUS
    	
 
    
	
 
    	
 
    	
 
    
	
SECTION 7.01.
    	
Amendments, Etc.
    	
345
    
	
SECTION 7.02.
    	
Notices, Etc.
    	
356
    
	
SECTION 7.03.
    	
Assignability
    	
3940
    
	
SECTION 7.04.
    	
Costs, Expenses and   Taxes
    	
401
    
	
SECTION 7.05.
    	
No Proceedings
    	
434
    
	
SECTION 7.06.
    	
Confidentiality
    	
435
    
	
SECTION 7.07.
    	
Governing Law
    	
445
    
	
SECTION 7.08.
    	
SUBMISSION TO   JURISDICTION
    	
445
    
	
SECTION 7.09.
    	
WAIVER OF JURY TRIAL
    	
446
    
	
SECTION 7.10.
    	
Execution in   Counterparts
    	
456
    
	
SECTION 7.11.
    	
Survival of Termination
    	
456
    
	
SECTION 7.12.
    	
Severability
    	
456
    
	
SECTION 7.13.
    	
Excess Funds
    	
456
    
	
SECTION 7.14.
    	
No Recourse
    	
457
    
	
SECTION 7.15.
    	
Amendment and   Restatement; Acknowledgement
    	
467
    
	
SECTION 7.16.
    	
KYC Information
    	
48
    

 

ii

 

THIRD AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

 

Dated as of September 24, 2012

 

UNITED RENTALS RECEIVABLES LLC II, a Delaware limited liability company (the “Seller”), UNITED RENTALS, INC., a Delaware corporation (the “Collection Agent”), LIBERTY STREET FUNDING LLC (“Liberty”), a Delaware limited liability company, GOTHAM FUNDING CORPORATION (“Gotham”), a Delaware corporation, FAIRWAY FINANCE COMPANY, LLC (“Fairway”), a Delaware limited liability company (each of Liberty, Gotham and Fairway, a “Purchaser”, and together the “Purchasers”), THE BANK OF NOVA SCOTIA (“Scotia Capital”), as a Bank, as administrative agent (the “Administrative Agent”) for the Investors and the Banks (as defined herein) and as purchaser agent for Liberty (the “Liberty Purchaser Agent”), PNC BANK, NATIONAL ASSOCIATION (“PNC”), as a Bank and as purchaser agent for itself (the “PNC Purchaser Agent”), MUFG BANK, LTD. (formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.) (“BTMU”), as a Bank and as purchaser agent for Gotham (the “Gotham Purchaser Agent”), SUNTRUST BANK (“ST”), as a Bank and as purchaser agent for itself (the “ST Purchaser Agent”), BANK OF MONTREAL (“BMO”), as a Bank and as purchaser agent for Fairway (the “Fairway Purchaser Agent”), and THE TORONTO-DOMINION BANK (“TD”), as a Bank and as purchaser agent for itself (the “TD Purchaser Agent”, and together with the Liberty Purchaser Agent, the PNC Purchaser Agent, the Gotham Purchaser Agent, the ST Purchaser Agent and the Fairway Purchaser Agent, the “Purchaser Agents”), agree as follows:

 

PRELIMINARY STATEMENTS

 

Certain terms that are capitalized and used throughout this Agreement are defined in Exhibit I to this Agreement. Capitalized terms not defined herein are used as defined in the Purchase Agreement or, if not defined in the Purchase Agreement, the Credit Agreement. References in the Exhibits to the “Agreement” refer to this Agreement, as amended, modified or supplemented from time to time. All interest rate and yield determinations referenced herein shall be expressed as a decimal and rounded, if necessary, to the nearest one hundredth of a percentage point in the manner set forth herein (as applicable).

 

The Seller has acquired, and may continue to acquire, Receivables and Related Security from the Originator, either by purchase or by contribution to the capital of the Seller, in accordance with the terms of the Purchase Agreement. The Seller is prepared to sell undivided fractional ownership interests (referred to herein as “Receivable Interests”) in the Pool Receivables. The Purchasers may, in their sole discretion, purchase such Receivable Interests in the Pool Receivables, and the Banks are prepared to purchase such Receivable Interests in the Pool Receivables, in each case on the terms set forth herein.

 

Certain parties hereto previously entered into that certain Second Amended and Restated Receivables Purchase Agreement, dated as of September 28, 2011, as amended by that certain Assignment and Acceptance and Amendment Agreement, dated as of December 23, 2011

 

 

Facsimile No.: (312) 293-4948

Emails:       karen.louie@bmo.com

fundingdesk@bmo.com

specialized.deals@bmo.com

Lpg.securitization@bmo.comLpg.securitization@bmo.com

 

If to the TD Purchaser Agent:

 

THE TORONTO-DOMINION BANK

Asset Securitization Group

222 Bay Street,

EY Tower 7th floor

Toronto, Ontario M5K1A2

Attention: Jamie Giles

Tel. No.: (416) 307-8782

Facsimile No.: (416) 307-8840

Emails:       Jamie.Giles@tdsecurities.comJamie.Giles@tdsecurities.com

Monica.miao@tdsecurities.com

 

If to a Purchaser:

 

LIBERTY STREET FUNDING LLC

Global Securitization

445 Broad Hollow Rd.

Melville, NY 11747

Tel. No.: (631) 587-4700

Facsimile No.: (212) 302-8767

 

GOTHAM FUNDING CORPORATION

c/o Global Securitization Services, LLC

114 West 47th Street, Suite 2310

New York, NY 10036

Tel. No.: (212) 295-2777

Facsimile No.: (212) 302-8767

Attention: Frank B. Bilotta

 

FAIRWAY FINANCE COMPANY, LLC

c/o Lord Securities Corp.

48 Wall Street, 27th Floor

New York, New York 10005

Attention: Irina Khaimova

Email: Irina.Khaimova@tmf-group.com

Tel. No.: (212) 346-9008

Facsimile No.: (212) 346-9012

 

38

 

SUNTRUST BANK

3333 Peachtree Road, NE

10th Floor East

Atlanta, Georgia 30326

Attention: Jason Meyer

Tel. No.: (404) 926-5505

Facsimile No.: (404) 926-5100

 

BANK OF MONTREAL

115 S. LaSalle Street

25th Floor West

Chicago, Illinois 60603

Attention: Karen Louie

Tel. No.: (312) 293-4410

Facsimile No.: (312) 293-4948

Emails:       karen.louie@bmo.com

Lpg.securitization@bmo.com

 

THE TORONTO-DOMINION BANK

Asset Securitization Group

222 Bay Street,

EY Tower 7th floor

Toronto, Ontario M5K1A2

Attention: Jamie Giles

Tel. No.: (416) 307-8782

Facsimile No.: (416) 307-8840

Emails:       Jamie.Giles@tdsecurities.comJamie.Giles@tdsecurities.com

Monica.miao@tdsecurities.com

 

SECTION 7.03.                                                           Assignability.

 

(a)                                 This Agreement and the Investors’ rights and obligations herein (including ownership of each Receivable Interest in the Pool Receivables) shall be assignable by participation or otherwise in whole or in part by the Investors and their successors and assigns with the prior written consent of the Seller, which consent shall not be unreasonably withheld or delayed; provided, however, that the Seller’s consent shall not be required for any assignment or participation from an Investor pursuant to the terms of its applicable liquidity agreement. Each assignor of a Receivable Interest in the Pool Receivables or any interest therein shall notify the applicable Purchaser Agent, the Administrative Agent and the Seller of any such assignment. Each assignor of a Receivable Interest in the Pool Receivables may, in connection with the assignment or participation, disclose to the assignee or participant any information relating to the Seller or the Receivables that was furnished to such assignor by or on behalf of the Seller or by the Administrative Agent and the related Purchaser Agent; provided that prior to any such disclosure, the assignee or participant agrees to preserve the confidentiality of any confidential

 

40

 

Investor’s ratable share of the aggregate outstanding Capital of all Investors as of such time (based on the applicable Bank’s Percentage). Accordingly, each Investor which holds aggregate outstanding Capital in excess of such Investor’s ratable share of the aggregate outstanding Capital of all Investors as of such time (based on the applicable Bank’s Percentage) shall transfer a Receivable Interest or Receivable Interests computed on the basis of such excess Capital to an applicable Investor which holds aggregate outstanding Capital less than such Investor’s ratable share of the aggregate outstanding Capital of all Investors as of such time (based on the applicable Bank’s Percentage), in exchange for a cash payment in an amount equal to the aggregate Capital of the Receivable Interests so transferred.

 

(c)                                  All Yield, fees and any other amounts payable by the Seller to the Investors, the Banks, the Administrative Agent or the Purchaser Agents which have accrued, but have not yet been paid, under the Existing Agreement shall remain outstanding hereunder and shall be payable in accordance with the terms hereof and the Fee Agreements.

 

SECTION 7.16.                                                           KYC Information. Each Purchaser Agent, Investor and Bank that is subject to the Act (as hereinafter defined) and the Administrative Agent hereby notifies the Seller that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Seller, which information includes the name and address of the Seller and other information that will allow such Purchaser Agent, Investor, Bank or the Administrative Agent, as applicable, to identify the Seller in accordance with the Act. The Seller shall, promptly following a request by the Administrative Agent or any Purchaser Agent, Investor or Bank, provide all documentation and other information that the Administrative Agent or such Purchaser Agent, Investor or Bank requests in order to comply with its ongoing obligations under the Beneficial Ownership Regulation or other applicable “know your customer” and anti-money laundering rules and regulations, including the Act.

 

48

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

 

	
SELLER:
    	
UNITED RENTALS   RECEIVABLES LLC II
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Irene Moshouris
    
	
 
    	
 
    	
Title:
    	
Vice President and   Treasurer
    
	
 
    	
 
    	
 
    
	
COLLECTION AGENT:
    	
UNITED   RENTALS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Irene Moshouris
    
	
 
    	
 
    	
Title:
    	
Senior Vice President   and Treasurer
    
					

 

Signature Page - Receivables Purchase Agreement

 

 

EXHIBIT I

 

DEFINITIONS

 

As used in the Agreement (including its Exhibits and Annexes), the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

 

“Administrative Agent” means Scotia Capital, in its capacity as administrative agent for the Purchasers and the Banks, or any successor administrative agent.

 

“Administrative Agent’s Account” means the special account (account name: United Rentals Receivable, LLC II; account number: 03454-15) of the Administrative Agent maintained at the office of The Bank of Nova Scotia — NY, ABA 026002532.

 

“Adverse Claim” means a lien, security interest or other charge or encumbrance, or any other type of preferential arrangement, but shall not include the liens in favor of the Seller or Administrative Agent.

 

“Affected Person” has the meaning specified in Section 1.08(a).

 

“Affiliate” means, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by or is under common control with such Person or is a director or officer of such Person.

 

“Affiliated Obligor” means any Obligor that is an Affiliate of another Obligor.

 

“Aged Receivables Ratio” means the percentage equivalent of a fraction, computed as of the last day of each calendar month, obtained by dividing (a) the sum of (i) the Outstanding Balance of Pool Receivables that were 151 to 180 days past their Invoice Date (or, in the case of Extended Term Receivables, that were 211 to 240 days past their Invoice Date ) as of the last day of such month, excluding Pool Receivables that have been written off at any time after the date on which they were 150 days past their Invoice Date (or, in the case of Extended Term Receivables, at any time after the date on which they were 210 days past their Invoice Date), (ii) (without duplication of any amounts included in clause (i) or (iii)) the Outstanding Balance of Pool Receivables that were less than 181 days past their Invoice Date (or, in the case of Extended Term Receivables, that were less than 241 days past their Invoice Date) as of the last day of such month and that, consistent with the Credit and Collection Policy, were written off as uncollectible during such month, and (iii) (without duplication of any amounts included in clause (i) or (ii)) the Outstanding Balance of Pool Receivables that were less than 151 days past their Invoice Date (or, in the case of Extended Term Receivables, that were less than 211 days past their Invoice Date ) as of the last day of such month, as to which the Obligor thereof or any other Person obligated thereon or owning any Related Security in respect thereof has taken any action, or suffered any event to occur, of the type described in paragraph (g) of Exhibit V, by (b) the aggregate dollar amount of all Pool Receivables created during the month ended five months prior to the most recent month-end.

 

I-1

 

than a Fixed Period that corresponds to the month of February or that begins on a day in the month of February and runs to the numerically corresponding day of the following month),

 

(c)                                  other than with respect to a Fixed Period for ST, PNC, BMO or TD (in their respective capacities as a Bank), any Fixed Period as to which the related Purchaser Agent does not receive notice, by no later than 12:00 noon (New York City time) on the third Business Day preceding the first day of such Fixed Period, that the related Receivable Interest will not be funded by issuance of commercial paper, or

 

(d)                                 any Fixed Period for a Receivable Interest the Capital of which allocated to the Investors or Banks is less than $500,000,

 

the “Assignee Rate” for each such Fixed Period shall be an interest rate per annum equal to the Alternate Base Rate in effect on the first day of such Fixed Period; provided further that after the occurrence and during the continuation of an Event of Termination, the “Assignee Rate” for each Fixed Period shall be an interest rate per annum equal to 2% plus the Alternate Base Rate in effect on the first day of such Fixed Period.

 

“Assignment and Acceptance” means an assignment and acceptance agreement entered into by a Bank and an Eligible Assignee and approved by the related Purchaser Agent(s) for such Bank and for such Eligible Assignee, pursuant to which such Eligible Assignee may become a party to the Agreement as a Bank or a Purchaser.

 

“Bank Commitment” of any Bank means, (a) with respect to Scotia Capital, $30039,000,000, or such amount as increased or reduced by any Assignment and Acceptance entered into with other Banks; (b) with respect to PNC, $10013,000,000, or such amount as increased or reduced by any Assignment and Acceptance entered into with other Banks, (c) with respect to BTMU, $11024,000,000, or such amount as increased or reduced by any Assignment and Acceptance entered into with other Banks, (d) with respect to ST, $10013,000,000, or such amount as increased or reduced by any Assignment and Acceptance entered into with other Banks; (e) with respect to BMO, $100,000,000, or such amount as increased or reduced by any Assignment and Acceptance entered into with other Banks; (f) with respect to TD, $1865,000,000, or such amount as increased or reduced by any Assignment and Acceptance entered into with other Banks; or (g) with respect to a Bank that has entered into an Assignment and Acceptance, the amount set forth therein as such Bank’s Bank Commitment, in each case as such amount may be increased or reduced by an Assignment and Acceptance entered into between such Bank and an Eligible Assignee, and as may be further reduced (or terminated) pursuant to the next sentence. Any reduction (or termination) of the Purchase Limit pursuant to the terms of the Agreement shall reduce ratably (or terminate) each Bank’s Bank Commitment.

 

“Banks” means each of Scotia Capital, PNC, BTMU, ST, BMO, TD and each respective Eligible Assignee that shall become a party to the Agreement pursuant to Section 7.03.

 

“Beneficial Ownership Regulation” means 31 C.F.R. Section 1010.230.

 

“BMO” has the meaning as set forth in the preamble to this Agreement and its successors and assigns.

 

I-4

 

“Pooled Commercial Paper” means all short-term Commercial Paper issued by a Purchaser from time to time, subject to any pooling arrangement by such Purchaser, but excluding short-term Commercial Paper issued by such Purchaser both for a tenor and in an amount specifically requested by any Person in connection with any receivables purchase facility effected by such Purchaser.

 

“Purchase Agreement” means the Third Amended and Restated Purchase and Contribution Agreement, dated as of the date of the Agreement, between the Originator, as seller, United Rentals, as collection agent, and United Rental Receivables LLC II, as buyer, as the same may be amended, modified or restated from time to time.

 

“Purchase Limit” means $8975,000,000, as such amount may be reduced pursuant to Section 1.01(b). References to the unused portion of the Purchase Limit shall mean, at any time, the Purchase Limit, as then reduced pursuant to Section 1.01(b), minus the then outstanding Capital of Receivable Interests under the Agreement.

 

“Purchase Request” means a request, substantially in the form of Annex I hereto, delivered by the Seller pursuant to Section 1.02 of the Agreement.

 

“Purchaser” means (i) Liberty Street Funding LLC and any successor or assign of such Purchaser that is a receivables investment company that in the ordinary course of its business issues commercial paper or other securities to fund its acquisition and maintenance of receivables, (ii) Gotham Funding Corporation and any successor or assign of such Purchaser that is a receivables investment company that in the ordinary course of its business issues commercial paper or other securities to fund its acquisition and maintenance of receivables, (iii) Fairway Finance Company, LLC and any successor or assign of such Purchaser that is a receivables investment company that in the ordinary course of its business issues commercial paper or other securities to fund its acquisition and maintenance of receivables, and (iv) any other Person that becomes a Purchaser hereunder that is a receivables investment company that in the ordinary course of its business issues commercial paper or other securities to fund its acquisition and maintenance of receivables.

 

“Purchaser Agent” means (i) Scotia Capital and its permitted successors and assigns as Liberty Purchaser Agent, (ii) PNC and its permitted successors and assigns as PNC Purchaser Agent, (iii) BTMU and its permitted successors and assigns as Gotham Purchaser Agent, (iv) ST and its permitted successors and assigns as ST Purchaser Agent, (v) BMO and its permitted successors and assigns as Fairway Purchaser Agent, and (vi) TD and its permitted successors and assigns as TD Purchaser Agent.

 

“Purchaser Agent’s Account” means (i) with respect to Scotia Capital, the special account (account number 1016733, ABA No. 026-002532, FFC: BNS HOUSTON — NOSCUS4H (Liberty Street Funding LLC — acct 1016733)) of Scotia Capital maintained at the office of Scotia Capital; (ii) with respect to PNC, the special account (account number 1002422076, ABA No. 043-000-096) of PNC maintained at the office of PNC; (iii) with respect to BTMU, the special account (account number 310-035-147, ABA No. 026-009-632) of BTMU maintained at the office of BTMU; (iv) with respect to ST, the special account (account number 1000022220783, ABA No. 061000104, Ref: United Rentals) of ST maintained at the office of

 

I-24

 

EXHIBIT II

 

CONDITIONS OF PURCHASES

 

1.                                      Conditions Precedent to Initial Purchase. The initial purchase of a Receivable Interest in the Pool Receivables under this Third Amended and Restated Agreement is subject to the conditions precedent that the Administrative Agent and each Purchaser Agent shall have received on or before the date of such purchase the following, each (unless otherwise indicated) dated such date, in form and substance satisfactory to the Administrative Agent and each Purchaser Agent:

 

(a)                                 A certificate of the Secretary or Assistant Secretary of the Seller and the Originator certifying (i) copies of the resolutions of the Board of Directors of the Seller and the Originator approving the applicable Transaction Documents, (ii) copies of all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to the Transaction Documents, (iii) the by-laws of the Seller and the Originator and (iv) the names and true signatures of the officers of the Seller and the Originator authorized to sign the Transaction Documents to be signed by it hereunder. Until the Administrative Agent and each Purchaser Agent receives a subsequent incumbency certificate from the Seller or the Originator, as the case may be, the Administrative Agent and each Purchaser Agent shall be entitled to rely on the last such certificate delivered to it by the Seller or the Originator.

 

(b)                                 A certificate of the Secretary or Assistant Secretary of the Parent certifying (i) copies of the resolutions (if required) of the Board of Directors of the Parent approving the Performance Undertaking Agreement, (ii) copies of all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to the Performance Undertaking Agreement and (iii) the names and true signatures of the officers thereof authorized to sign the Performance Undertaking Agreement.

 

(c)                                  A copy of the certificate of formation or articles of incorporation of the Seller, certified as of a recent date by the Secretary of State or other appropriate official of the state of its organization, and a certificate as to the good standing of the Seller from such Secretary of State or other official, dated as of a recent date.

 

(d)                                 Acknowledgment copies or time stamped receipt copies of proper financing statement amendments and assignments, duly filed on or before the date of such initial purchase under the UCC of all relevant jurisdictions reasonably necessary to perfect the ownership and security interests contemplated by the Agreement and the Purchase Agreement.

 

(e)                                  Acknowledgment copies, or time stamped receipt copies of proper financing statements, if any, reasonably necessary to release all security interests and other rights of any Person in the Collateral previously granted by the Seller or the Originator.

 

II-1

 

EXHIBIT III

 

REPRESENTATIONS AND WARRANTIES

 

The Seller represents and warrants as follows:

 

(a)                                 The Seller is a limited liability company duly formed, validly existing and in good standing under the laws of Delaware, and is duly qualified to do business, and is in good standing, in every jurisdiction where the nature of its business requires it to be so qualified, except where the failure to be so qualified or in good standing would not reasonably be expected to have a Material Adverse Effect on the Seller.

 

(b)                                 The execution, delivery and performance by the Seller of each Transaction Document to which it is a party (i) are within the Seller’s limited liability company powers, (ii) have been duly authorized by all necessary limited liability company action, (iii) do not contravene (1) the Seller’s certificate of formation and limited liability company agreement, (2) any law, rule or regulation applicable to the Seller, (3) any contractual restriction binding on the Seller or its property or (4) any order, writ, judgment, award, injunction or decree binding on the Seller or its property, in each case for clauses (2) through (4) where such contravention would reasonably be expected to have a material adverse effect on the collectability of any Pool Receivable or a Material Adverse Effect on the Seller or a material adverse effect on the Seller’s ability to perform its obligations hereunder or under any other Transaction Document, and (iv) do not result in or require the creation of any Adverse Claim upon or with respect to any of its properties (except for the interest created pursuant to the Agreement or permitted by any Transaction Document). Each of the Transaction Documents to which it is a party has been duly executed and delivered by a duly authorized officer of the Seller.

 

(c)                                  No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery and performance by the Seller of the Transaction Documents to which it is a party, except for the filing of UCC financing statements which are referred to herein other than those which have been obtained; provided that the right of any assignee of a Receivable the obligor of which is a Government Obligor to enforce such Receivable directly against such obligor may be restricted by the Federal Assignment of Claims Act or any similar applicable law to the extent the Originator thereof or the Seller shall not have complied with the applicable provisions of any such law in connection with the assignment or subsequent reassignment of any such Receivable.

 

(d)                                 Each of the Transaction Documents to which it is a party constitutes the legal, valid and binding obligation of the Seller enforceable against the Seller in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights generally and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

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pay such Debt and liabilities as they mature and (iv) the Seller is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which the Seller’s property would constitute unreasonably small capital.

 

(o)                                 With respect to each Pool Receivable, the Seller (i) shall have received such Pool Receivable as a contribution to the capital of the Seller by the Originator or (ii) shall have purchased such Pool Receivable from the Originator in exchange for payment (made by the Seller to the Originator in accordance with the provisions of the Purchase Agreement) of cash in an amount that constitutes fair consideration and reasonably equivalent value. Each such sale referred to in clause (ii) of the preceding sentence shall not have been made for or on account of an antecedent Debt owed by the Originator to the Seller and no such sale is voidable or subject to avoidance under any section of the Federal Bankruptcy Code.

 

(p)                                 Each ENB Receivable has been originated pursuant to the terms of a Contract substantially similar to the form of Contract attached hereto as Annex H, as amended from time to time by the Seller with notice to the Purchaser Agents; provided that if any amendment to the form of Contract attached as Annex H hereto adversely affects the enforceability of ENB Receivables or the interests of the Seller or the Investors therein, such amendment shall require the written consent of the Purchaser Agents.

 

(q)                                 Seller is not, nor, to the best of Seller’s knowledge, is it owned or controlled by Persons that are: (i) the target of any sanctions under any Sanctions Laws, or (ii) located, organized or resident in a country or territory that is, or whose government is, the subject of sanctions administered or enforced by the government of the United States or Canada under any Sanctions Law.

 

(r)                                    Neither the entering into of this Agreement, the sale, assignment and transfer of the Receivable Interests hereunder nor the consummation of any other transactions contemplated hereby will result in the acquisition by the Administrative Agent or any of the Investors of an “ownership interest” (as defined under the Volcker Rule) in the Seller.

 

(s)                                   The Seller has not issued any LCR Securities, and the Seller is a consolidated subsidiary of the Parent under generally accepted accounting principles in the United States in effect from time to time.

 

(t)                                    The Seller is an entity that is organized under the laws of the United States or of any State thereof and at least 51% of whose common stock or analogous equity interest is owned by a listed entity and is excluded on that basis from the definition of “Legal Entity Customer” as defined in the Beneficial Ownership Regulation.

 

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EXHIBIT IV

 

COVENANTS OF THE SELLER

 

Until the latest of the Facility Termination Date, the date on which no Capital of or Yield on any Receivable Interest shall be outstanding or the date all other amounts owed by the Seller hereunder to the Investors, the Banks, the Administrative Agent or the Purchaser Agents are paid in full:

 

(a)                                 Compliance with Laws, Etc.

 

(i)                                     The Seller will comply in all material respects with all applicable laws, rules, regulations and orders and preserve and maintain its existence, rights, franchises, qualifications, and privileges except to the extent that the failure so to comply with such laws, rules and regulations or the failure so to preserve and maintain such existence, rights, franchises, qualifications and privileges would not materially adversely affect the collectability of the Receivables Pool, taken as a whole, or the ability of the Seller to perform its obligations under the Transaction Documents.

 

(ii)                                  The Seller will not, directly or indirectly, use the proceeds of the purchase of Receivable Interests in the Pool Receivables, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person, in any manner that would result in a violation of Sanctions Laws by any Person (including any Investor).

 

(b)                                 Offices, Records and Books of Account. The Seller will keep its principal place of business and chief executive office and the office where it keeps its records concerning the Pool Receivables (and all original documents relating thereto) at the address of the Seller set forth in Section 7.02 of the Agreement or, upon 30 days’ prior written notice to the Administrative Agent, at any other locations in jurisdictions where all actions reasonably requested by the Administrative Agent to protect and perfect the interest in the Collateral have been taken and completed. The Seller also will maintain and implement administrative and operating procedures (including, without limitation, an ability to recreate records evidencing Pool Receivables and related Contracts in the event of the destruction of the originals thereof), and keep and maintain all documents, books, records and other information reasonably necessary or advisable for the collection of all Pool Receivables (including, without limitation, records adequate to permit the daily identification of each Pool Receivable and all Collections of and adjustments to each existing Pool Receivable).

 

(c)                                  Performance and Compliance with Contracts and Credit and Collection Policy. The Seller will require, at its expense, that the Originator will timely and fully perform and comply in all material respects with all provisions, covenants and other promises required to be observed by it under the Contracts related to the Pool Receivables, and timely and fully comply in

 

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EXHIBIT V

 

EVENTS OF TERMINATION

 

Each of the following, unless waived in writing in accordance with Section 2.02, shall be an “Event of Termination”:

 

(a)                                 A Collection Agent Default shall have occurred; or

 

(b)                                 The Seller shall fail (i) to transfer or cause to be transferred to the Administrative Agent when requested any rights, pursuant to the Agreement, of the Collection Agent or (ii) to make any payment required under Section 1.04, and any such failure to transfer or pay shall remain unremedied for three Business Days; or

 

(c)                                  Any representation or warranty made or deemed made by the Seller (or any of its officers) pursuant to the Agreement or any other Transaction Document or any information or report delivered by the Seller pursuant to the Agreement or any other Transaction Document shall prove to have been incorrect or untrue in any material respect when made or deemed made or delivered, and such incorrectness or untruth is incapable of remedy or, if capable of remedy, is not corrected or cured within 30 days of the earlier of any Responsible Officer of the Seller becoming aware of such incorrectness or untruth or written notice thereof being given to the Seller by the Administrative Agent or any Purchaser Agent; or

 

(d)                                 The Seller shall fail to perform or observe any other term, covenant or agreement contained in the Agreement or in any other Transaction Document on its part to be performed or observed in any material respect (or, if such term, covenant or agreement is qualified by materiality, material adverse effect or a similar qualification, in any respect), and any such failure shall remain unremedied for 30 days after written notice thereof shall have been given to the Seller by the Administrative Agent or any Purchaser Agent (or, with respect to a failure to deliver any Periodic Report pursuant to the Agreement, such failure shall remain unremedied for five days (with respect to a Monthly Report) or two Business Days (with respect to a Daily Report or a Weekly Report) without a requirement for notice); or

 

(e)                                  The Seller shall fail to pay any principal of or premium or interest on any of its Debt that is outstanding in a principal amount of at least $25,000,000 in the aggregate when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Debt and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of such Debt; or any such Debt shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), redeemed,

 

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EXHIBIT VI

 

COLLECTION AGENT DEFAULTS

 

Each of the following, unless waived in writing by the Required Purchaser Agents (other than as set forth in paragraph (e) which cannot be waived), shall be a “Collection Agent Default”:

 

(a)         The Collection Agent (if United Rentals or any of its Affiliates is the Collection Agent) (i) shall fail to perform or observe in any material respect any term, covenant or agreement under the Agreement (other than as referred to in clause (ii) of this paragraph (a)) and such failure shall remain unremedied for 10 Business Days or (ii) shall fail to make when due any payment or deposit to be made by it under the Transaction Documents and such failure to pay or deposit shall remain unremedied for three Business Days; or

 

(b)         The Collection Agent shall fail to transfer to the Administrative Agent when requested any rights, pursuant to the Agreement, which it then has as Collection Agent and any such failure to transfer shall remain unremedied for three Business Days; or

 

(c)          Any representation or warranty made or deemed made by the Collection Agent (or any of its officers) pursuant to the Agreement or any other Transaction Document or any information or report delivered by the Collection Agent pursuant to the Agreement or any other Transaction Document shall prove to have been incorrect or untrue in any material respect when made or deemed made or delivered, and such incorrectness or untruth is incapable of remedy or, if capable of remedy, is not corrected or cured within 30 days of the earlier of the Collection Agent becoming aware of such incorrectness or untruth or written notice thereof being given to the Collection Agent by the Administrative Agent or any Purchaser Agent; or

 

(d)         The Collection Agent shall fail to pay any principal of or premium or interest on any of its Debt that is outstanding in a principal amount of at least $150,000,000 in the aggregate when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Debt and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of such Debt; or any such Debt shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), redeemed, purchased or defeased, or an offer to repay, redeem, purchase or defease such Debt shall be required to be made, in each case prior to the stated maturity thereof; or

 

(e)          The Collection Agent shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors or file a notice of intention to make a proposal to some or all of its creditors; or any proceeding shall be instituted by or against the Collection Agent seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or

 

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