Document:

cnhc_Ex10_3

		
			EXHIBIT 10.3
		

		
			 
		

		
			SECOND AMENDED AND RESTATED
		

		
			WHOLESALE AND PARTS CNHi CAPITAL FINANCING AGREEMENT
		

		
			THIS SECOND AMENDED AND RESTATED WHOLESALE AND PARTS CNHi CAPITAL FINANCING AGREEMENT is made as of this 31st day of December, 2017 by CNH Industrial Canada, Ltd., a Canada corporation (“CNHi”) and CNH Industrial Capital Canada Ltd., an Alberta corporation (“CNHi Capital”).
		

		
			WHEREAS, CNHi sells parts, supplies, inventory, equipment and other goods and services to Dealers and distributors of agricultural, construction and industrial goods; and
		

		
			WHEREAS, CNHi Capital has made loans to Dealers to finance their purchase of parts, supplies, inventory, equipment and other goods and services from CNHi; and
		

		
			WHEREAS, CNHi desires to obtain financing accommodations for Dealers with respect to the CNHi Parts and Wholegoods it sells to Dealers in the future; and
		

		
			WHEREAS, CNHi Capital wishes to provide such financing accommodations; and
		

		
			WHEREAS, Case Credit Ltd. and CNHi entered into that Wholesale and Parts Credit Financing Agreement dated July 22, 2004 (the “Original Agreement”)as amended; and
		

		
			WHEREAS, CNHi Capital is the successor by conversion of Case Credit Ltd. and the successor in interest to New Holland (Canada) Credit Company (“NHCC”), a partnership between Case Credit Ltd. and CNH Canada Ltd. pursuant to the that Partnership Interest Purchase Agreement dated May 1, 2005; and
		

		
			WHEREAS, CNHi and CNHi Capital are parties to that certain Amended and Restated Wholesale and Parts CNH Capital Financing Agreement dated November 3, 2011 (the “Amended and Restated Agreement”); and
		

		
			WHEREAS, CNHi and CNHi Capital desire to amend and restate the Amended and Restated Agreement in order to, among other things, modify the financing accommodations provided under the Original Agreement with respect to the parts, supplies, inventory, equipment and other goods and services sold by CNHi to said dealers in the future; and
		

		
			NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows:
		

		
			ARTICLE 1
		

		
			DEFINITIONS
		

		
			Unless otherwise defined in this Agreement and the recitals hereto, capitalized terms shall have the meaning given them in this Article and in the CNHi Assignment.
		

		
			“Advance” has the meaning given it in Section 2.5(b).
		

		
			“Agreement” means this Second Amended and Restated Wholesale and Parts CNHi Capital Financing Agreement, as the same may be further amended, restated, modified or supplemented from time to time.
		

		
			“Business Day” means any day other than a Saturday, Sunday or other day CNHi Capital observes as a holiday.
		

		
			“Capital Default” means a default by a Dealer pursuant to a CNHi Dealer Agreement.
		

		
			“CNHi Assignment” has the meaning given to it in Section 2.5(e).
		

		
			“CNHi Capital Receivable” has the meaning given to it in Section 2.5(c).
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			“CNHi Dealer Agreement” means the Sales and Service Agreement or other similar agreement between CNHi and a Dealer pursuant to which CNHi sells CNHi Parts and Wholegoods to the Dealer.
		

		
			“CNHi Parts and Wholegoods” means parts, supplies, inventory, equipment and other goods and services sold to Dealers by CNHi, whether branded Case, Case IH, New Holland, New Holland Construction or under any other brand owned by or licensed to CNHi and its affiliates, and includes, without limitation, replacement parts, attachments, supplies, garments, premiums, tooling, display cases, computers, software, flags, banners, posters, yellow page listings, training, warranty claims and any other services provided by CNHi.
		

		
			“CNHi Receivable” has the meaning given it in Section 2.5(a).
		

		
			“CNHi Sales Incentive” shall have the meaning given it in Article 4.
		

		
			“CNHi Subsidy” shall have the meaning given it in Section 3.2.
		

		
			“Collateral Security” means with respect to any Receivable: (a) the related Invoice, and (b) the Security Interest of CNHi in the related CNHi Parts and Wholegoods (granted under the related Invoice or otherwise) securing the CNHi Receivable.
		

		
			“Dealer” means a dealer authorized by CNHi to sell or distribute any goods manufactured, sold or distributed by CNHi and its affiliates and which has executed a CNHi Dealer Agreement.
		

		
			“Dealer Termination” shall mean the termination in accordance with the terms and conditions of the CNHi Dealer Agreement by CNHi or a Dealer of the CNHi Dealer Agreement.
		

		
			“Invoice” has the meaning given it in Section 2.5(a).
		

		
			“Manufacturer Default” means a default by a Dealer pursuant to a CNHi Dealer Agreement.
		

		
			“Non-Quebec Dealer” has the meaning given to it in Section 2.5(b).
		

		
			“Open Account” means an account established for a Dealer by CNHi Capital pursuant to which CNHi Capital finances parts and other miscellaneous items or services sold to the Dealer.
		

		
			“Open Account Balance” means, as to any Open Account, the balance owing to CNHi Capital by the Dealer, including interest and other charges, less any amount owing to the Dealer as a credit.
		

		
			“Open Account Credit Line” means the maximum dollar amount of financing that CNHi Capital will finance for a Dealer pursuant to an Open Account.
		

		
			“Open Account Terms” means the terms under which CNHi sells parts and other miscellaneous items or services (excluding wholegoods) to Dealers and pursuant to which CNHi Capital finances such goods for the Dealers, as modified from time to time.
		

		
			“Purchase Price” has the meaning given it in Section 2.5(c).
		

		
			“Quebec Dealer” has the meaning given it in Section 2.5(c).
		

		
			“Receivable” means CNHi Capital Receivables, including all CNHi Receivables which become or are to become CNHi Capital Receivables under Section 2.5.
		

		
			“Repurchase Event” shall mean the occurrence of a Capital Default or a Dealer Termination.
		

		
			“Securitization Agreements” has the meaning given to it in Section 2.5(f).
		

		
			“Securitized Receivables” has the meaning given to it in Section 2.5(f).
		

		
			

		 

		

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			“Security Interest” means any security interest, mortgage, hypothec, reservation of ownership, deed of trust, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), preference, participation interest, prior claim, priority or other security agreement or preferential arrangement of any kind or nature whatsoever, and includes any reservation of ownership or retention of title created under a Wholesale Finance Plan with a Quebec Dealer or under an Invoice.
		

		
			“Trade-In Equipment” means (a) used equipment that is accepted in partial payment in connection with the Dealer’s sale or lease of a new item of equipment, or (b) any equipment that is in a trade-in chain that relates back to the sale or lease of a new item of CNHi equipment.
		

		
			“Wholesale Credit Line” means the maximum dollar amount of CNHi wholegoods and parts inventory that CNHi Capital will consider financing for a Dealer.
		

		
			“Wholesale Finance Plan” means a plan established by CNHi Capital, as modified from time to time in consultation with CNHi, setting forth the terms and conditions of the wholesale financing for Dealers.
		

		
			ARTICLE 2
		

		
			WHOLESALE FINANCING
		

		
			2.1         Applications
		

		
			CNHi shall provide to CNHi Capital such credit information, completed application forms and any and all other information and documents requested by CNHi Capital from time to time to enable CNHi Capital to evaluate any request by a Dealer for a Wholesale Credit Line.  CNHi agrees to use its reasonable best efforts to assure that all information provided by it to CNHi Capital will be accurate and complete.
		

		
			2.2         Credit Decisions
		

		
			CNHi Capital shall apply reasonable credit standards in determining the creditworthiness of Dealers.  CNHi Capital shall strive to respond to credit applications within two (2) weeks following receipt of all requested information and material.  If CNHi Capital conditions or rejects a Dealer application, CNHi Capital shall provide to CNHi and, as required by applicable law, to the applicant, the reasons for such conditioning or rejection.
		

		
			2.3         Wholesale Credit Lines; Terms and Conditions of Financing
		

		
			CNHi Capital shall, in its sole discretion, establish for each Dealer the initial Wholesale Credit Lines for each Dealer and, from time to time, review such lines to be made available to each Dealer under the terms hereof.  CNHi Capital may, at its sole discretion, establish all of the terms and conditions relating to the financing of Dealers, including, without limitation, the amounts to be advanced and the interest rates to be charged to Dealers on financing provided by CNHi Capital.  CNHi Capital, at its sole discretion, may reduce, suspend, otherwise modify or terminate any Dealer’s Wholesale Credit Line and may amend or modify the terms and conditions of financing provided by CNHi Capital.
		

		
			2.4         CNHi Parts and Wholegoods Financing Eligibility
		

		
			The terms and conditions of CNHi wholesale financing for Dealers shall be subject to the provisions of the Wholesale Finance Plan as established and amended by CNHi Capital from time to time. Without limiting the foregoing:
		

		
			(a)          New CNHi Parts and Wholegoods.  New Case, CaseIH, New Holland and New Holland Construction brand equipment or other equipment with brands owned by or licensed to CNHi will be eligible for wholesale financing in an amount equal to the invoice price thereof plus freight, handling, taxes and/or sundry charges.
		

		
			(b)          Trade-In Equipment.  Trade-In Equipment will be eligible for wholesale financing in an amount determined from time-to-time by CNHi and notified in writing to CNHi Capital, as long as the amount financed plus freight, handling, taxes and/or sundry charges is not greater than market value.  The minimum amount financed will be CDN$1,500.
		

		
			

		 

		

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			2.5         Advances; Creation, Purchase and Ownership of Receivables
		

		
			(a)          Except as otherwise provided in Article 6, within 3 Business Days of receipt of an invoice from CNHi representing the sale of CNHi Parts or Wholegoods or other goods or services to a Dealer (in each case, an “Invoice”) that (i) have been delivered or provided to a Dealer or (ii) are in transit to a Dealer, CNHi Capital shall pay the amount of said invoice to CNHi in immediately available funds the amounts due or owing by the Dealer under the Invoice (collectively, the “CNHi Receivable”). CNHi Capital may net against such advances any amounts due it pursuant to this Agreement, including, without limitation, all CNHi Sales Incentives and any CNHi Subsidy; provided, however, that as between CNHi and the applicable Dealer, any amounts so deducted by CNHi Capital shall be deemed to have been received by CNHi and the Dealer’s obligations in respect of the related invoice shall be reduced in a like amount.
		

		
			(b)          As provided in the related Wholesale Finance Plans, CNHi and CNHi Capital intend that each payment made by CNHi Capital to CNHi for in respect of a CNHi Receivable shall constitute:
		

		
			(i)           in the case of a CNHi Receivable and Invoice arising from the sale of CNHi Parts and Wholegoods made by CNHi to a Dealer located in the provinces or territories of Canada other than the Province of Quebec (a “Non-Quebec Dealer”), an advance by CNHi Capital to the applicable Non-Quebec Dealer (an “Advance”) in an amount equal to the aggregate outstanding balance of the CNHi Receivable, the proceeds of which Advance are paid by CNHi Capital to CNHi on behalf of that Non-Quebec Dealer to pay the purchase price of the related CNHi Parts and Wholegoods; and
		

		
			(ii)          in the case of a CNHi Receivable and Invoice arising from the sale of CNHi Parts and Wholegoods made by CNHi to a Dealer located in the Province of Quebec (a “Quebec Dealer”), payment of the purchase price of the CNHi Receivable and the related Invoice, which purchase price shall be equal to the aggregate outstanding balance of the CNHi Receivable (a “Purchase Price”).
		

		
			(c)          Upon making an Advance and paying the proceeds of the Advance to CNHi (net of any amounts that CNHi Capital is entitled to deduct pursuant to Section 2.5(a)): (i) a receivable (a “CNHi Capital Receivable”) in the amount of the Advance becomes owing by the applicable Non-Quebec Dealer to CNHi Capital, (ii) such CNHi Capital Receivable (including all terms and conditions of or applicable to the CNHi Capital Receivable and the Invoice pursuant to the Wholesale Finance Plan and all other amounts due and owing thereunder and all rights to payment thereof or thereunder (including interest thereon in accordance with the Wholesale Finance Plan) is governed by the Wholesale Finance Plan, (iii) the CNHi Capital Receivable is owned by CNHi Capital, not by CNHi, (iv) the CNHi Capital Receivable shall be secured by a purchase money security interest in the CNHi Parts and Wholegoods financed under the CNHi Capital Receivable, and (v) the CNHi Receivable owing by the Non-Quebec Dealer to CNHi is extinguished.
		

		
			(d)          Upon payment by CNHi Capital to CNHi of the Purchase Price of a CNHi Receivable owing by a Quebec Dealer to CNHi (net of any amounts that CNHi Capital is entitled to deduct pursuant to Section 2.5(a)): (i) all right, title and interest of CNHi in and to the CNHi Receivable and the related Collateral Security (including all terms and conditions of or applicable to the CNHi Receivable and the Invoice pursuant to the Wholesale Finance Plan and all other amounts due and owing thereunder and all rights to payment thereof or thereunder (including interest thereon in accordance with the Wholesale Finance Plan) and any and all proceeds thereof shall thereupon be sold, assigned, transferred and otherwise conveyed by CNHi to CNHi Capital without the need for any instrument or assignment, and such CNHi Receivable shall thereupon become a CNHi Capital Receivable, (ii) such CNHi Capital Receivable (including all terms and conditions of or applicable to the CNHi Capital Receivable and the Invoice pursuant to the Wholesale Finance Plan and all other amounts due and owing thereunder and all rights to payment thereof or thereunder (including interest thereon in accordance with the Wholesale Finance Plan) is governed by the Wholesale Finance Plan, (iii) the CNHi Capital Receivable is owned by CNHi Capital, not by CNHi, and (iv) the CNHi Capital Receivable shall be secured by a Security Interest in the CNHi Parts and Wholegoods financed under the CNHi Capital Receivable.
		

		
			

		 

		

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			(e)          In connection with the foregoing:
		

		
			(i)           on the date hereof, CNHi shall execute and deliver to CNHi Capital an assignment in the form annexed as Exhibit A hereto (the “CNHi Assignment”) for the purposes of assigning and transferring to CNHi Capital:
		

		
			(A)         the universality of all present and future CNHi Receivables owing by Quebec Dealers under the Accounts that are or have been purchased or are to be purchased under Sections 2.5(a), (b)(ii) and (d) above;
		

		
			(B)         as a further assurance and to the extent that, notwithstanding the parties’ intent as stated above, CNHi is deemed to own any CNHi Capital Receivable (or any related Advance) created under Section 2.5(a), (b)(i) and (c) or any interest therein (and to the extent CNHi owns any similar receivables as to which it has received an advance from CNHi Capital), the universality of all present and future CNHi Capital Receivables owing by Dealers under the Accounts;
		

		
			(C)         all present and future Collateral Security with respect to the foregoing; and
		

		
			(D)         any and all proceeds of any of the foregoing.
		

		
			(ii)          CNHi Capital is authorized to file appropriate PPSA financing statements or similar documents to perfect the foregoing sales and/or assignments and to take all actions necessary from time to time to continue the perfection of such sales and/or assignments.
		

		
			(f)           CNHi acknowledges that CNHi Capital intends to securitize all or substantially all of the Receivables referred to in this Section 2.5, and to the extent provided below the terms of this Agreement are subject to any contrary terms of the agreements governing any such securitization from time to time (including the Sale and Servicing Agreement (as defined in the Assignment)(collectively, the “Securitization Agreements”). Receivables that are subject to the terms of the Securitization Agreements at any point in time are referred to below as “Securitized Receivables.”
		

		
			(g)          It is the intention of the parties hereto that all conveyances of Receivables, Collateral Security and proceeds by CNHi to CNHi Capital contemplated hereunder and provided by the CNHi Assignment be, and be construed as, absolute sales without recourse (except as explicitly provided herein) of such Receivables and other property by CNHi to CNHi Capital and the beneficial interest in and to such Receivables and other property shall not be part of the CNHi’s estate in the event of any bankruptcy or insolvency proceeding by or against CNHi under any bankruptcy or insolvency law.
		

		
			2.6         CNHI Representations and Warranties; Indemnification.
		

		
			With respect to each invoice submitted by CNHi to CNHi Capital for financing, and each advance made by CNHi Capital with respect thereto, CNHi represents and warrants that (a) it has complied and will comply with its policy regarding the recognition of revenue for the sale of CNHi Parts or Wholegoods as that policy exists as of the date of this Agreement and that it has satisfied the conditions precedent therein (“CNHi Revenue Policy”), (b) it has complied and will comply with all applicable CNHi Capital policies, guidelines & procedures (collectively the “CNHi Capital Policy”), and (c) that the invoice represents a valid and enforceable obligation of the related Dealer that is not subject to any dispute, counterclaim or right of setoff of any kind or nature.  In the event a Dealer disputes in whole or in part the validity or enforceability of the invoice or the amount of the obligation of the Dealer represented thereby, CNHi agrees to resolve such dispute with the Dealer within 60 days of its receipt of notice from CNHi Capital of the existence of such dispute.  In the event CNHi (a) fails to comply or satisfy the conditions precedent for the recognition of revenue as set forth in the CNHi Revenue Policy as it exists as of the date of this Agreement, or (b) fails to comply with the CNHi Capital Policy, or (c) fails to resolve such disputes within such 60 day period, CNHi agrees to make an indemnity payment to CNHi Capital in the amount of the then outstanding principal plus accrued interest, if any, owed by the Dealer. CNHi Capital may deduct such amounts from monies otherwise payable by CNHi Capital to CNHi hereunder.
		

		
			

		 

		

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			ARTICLE 3
		

		
			WHOLESALE FINANCE CHARGES
		

		
			3.1         Subsidized Dealer Financing.
		

		
			CNHi shall establish from time to time the applicable period during which its Dealers are eligible to receive interest-free or reduced-rate financing for the purchase of CNHi Parts and Wholegoods.
		

		
			3.2         CNHi Subsidy.
		

		
			In exchange for CNHi Capital’s agreement to provide interest-free or reduced-rate financing to the Dealer during such period described in Section 3.1, CNHi shall pay CNHi Capital a subsidy (the “CNHi Subsidy”).  The CNHi Subsidy shall be calculated by CNHi Capital at its sole discretion.
		

		
			3.3         Dealer Responsibility.
		

		
			CNHi Capital shall establish from time to time interest rates and other charges applicable to financing and other services extended to Dealers under the Open Account and Wholesale Finance Plan terms.  CNHi Capital shall bill and collect directly from Dealers finance charges for which they are responsible.
		

		
			ARTICLE 4
		

		
			SALES INCENTIVES
		

		
			4.1         Sales Incentive Agreement
		

		
			From time to time CNHi may offer incentives to Dealers that require a payment to the Dealer from CNHi upon the Dealer’s sale or lease of an item of equipment (a “CNHi Sales Incentive”).  CNHi Capital may accept an assignment from Dealers of their rights in such CNHi Sales Incentives, and, upon receipt thereof, CNHi Capital may apply such amounts to reduce the amounts due from Dealers to CNHi Capital with respect to wholesale financing of such items of equipment.  CNHi shall be solely responsible for resolving any and all disputes with Dealers relating to such CNHi Sales Incentives.
		

		
			ARTICLE 5
		

		
			WHOLESALE AUDITS
		

		
			5.1         Physical Audits
		

		
			CNHi Capital shall conduct dealer inventory audits of equipment and parts covered by wholesale financing for Dealers.  The frequency of conducting such audits shall be determined by CNHi Capital in its sole discretion.  Such audits shall include CNHi equipment that is on demonstration to prospective customers of a Dealer and CNHi equipment subject to any rental plan.
		

		
			5.2         Audit Reports
		

		
			CNHi Capital shall prepare reports, including the location and status of equipment and/or parts, as appropriate, with respect to each inspection and audit of the Dealer, and CNHi Capital shall provide copies of such audit reports to CNHi upon written request.
		

		
			ARTICLE 6
		

		
			CREDIT WATCH AND STOP SHIP STATUS
		

		
			6.1         Credit Watch Status
		

		
			Upon a Capital Default or if for any reason CNHi Capital deems itself insecure with respect to financing being provided to a Dealer, CNHi Capital may place such Dealer on a status of Credit Watch.  CNHi Capital will provide prompt oral and written notification of such Credit Watch status.  CNHi Capital shall advise CNHi of the reason for any Credit Watch 

		 

		

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status and actions necessary to remove the Credit Watch status.  Upon notice of any Credit Watch, future wholegoods shipments to the affected Dealer must be approved in advance by CNHi Capital.
		

		
			6.2         Open Account Stop Ship Status
		

		
			Upon a Capital Default or if for any reason CNHi Capital deems itself insecure with respect to financing being provided to a Dealer, CNHi Capital may place such Dealer’s Open Account on Stop Ship status.  CNHi Capital will provide prompt oral and written notification of such Stop Ship status to CNHi.  CNHi Capital shall advise CNHi of the reason for any Stop Ship status and actions necessary to reinstate such Dealer’s Open Account Terms.  Upon notification of such Stop Ship status, CNHi shall not ship any additional parts to the affected Dealer or invoice any other miscellaneous charges to the affected Dealer’s Open Account.
		

		
			6.3         Indemnification
		

		
			In the event CNHi breaches any of the terms of its agreement set forth in Sections 6.1 or 6.2 above, CNHi agrees to indemnify CNHi Capital for any and all loss, cost, damage or expense suffered by CNHi Capital as a result of such breach, including, without limitation, any loss of principal or interest for CNHi Capital arising as a result of such breach.
		

		
			ARTICLE 7
		

		
			CNHI WHOLEGOODS AND PARTS REPURCHASE
		

		
			7.1         Dealer Termination; Manufacturer Default
		

		
			CNHi Canada shall provide CNHi Capital with as much advance notice as possible of the occurrence of a Dealer Termination.  CNHi Canada shall also provide CNHi Capital with oral and written notice of the occurrence of a Manufacturer Default.  Upon the occurrence of a Repurchase Event, CNHi Canada shall assist CNHi Capital in the liquidation of the affected Dealer’s assets securing financing provided by CNHi Capital, and shall repurchase certain wholegoods and parts of the affected Dealer, all as herein provided.  If a successor servicer is appointed for CNHi Capital under the Securitization Agreements, the successor servicer will succeed to CNHi Capital’s rights below with respect to Securitized Receivables and the related CNHi Parts and Wholegoods.  In such case, CNHi Capital shall be relieved of its obligations below insofar as they relate to Securitized Receivables.
		

		
			7.2         Joint Audit
		

		
			Within 3 Business Days (or such longer periods as may be mutually agreed by CNHi and CNHi Capital), following the occurrence of a Repurchase Event, CNHi and CNHi Capital will conduct a joint audit of the Dealer.  A written report shall be prepared immediately and signed by representatives of both CNHi and CNHi Capital.
		

		
			7.3         Possession of CNHi Parts and Wholegoods
		

		
			Upon the occurrence of a Repurchase Event, CNHi and CNHi Capital shall attempt to obtain the Dealer’s consent to remove all CNHi Parts and Wholegoods and other collateral in which CNHi Capital holds a Security Interest.  If the Dealer refuses to surrender possession of the same, CNHi Capital shall, at its sole expense, take such legal action as may be necessary to effect possession.  CNHi shall promptly accept all CNHi Parts and Wholegoods when they have been made unconditionally available to CNHi by CNHi Capital if such acceptance is required under applicable buy-back law or any agreement between CNHi and such Dealer.  CNHi shall promptly, at its sole expense, remove all such CNHi Parts and Wholegoods from the Dealer’s location.
		

		
			7.4         Purchase by CNHi of Parts
		

		
			With respect to any new CNHi parts made available to CNHi that (i) are required to be repurchased from the Dealer under applicable buy-back laws or buy-back agreements between CNHi and the Dealer, and (ii) the proceeds of which are necessary to clear the obligations of the Dealer to CNHi Capital (or its assigns) in whole or in part, CNHi shall, upon the occurrence of a Repurchase Event, shall purchase such CNHi parts and pay to CNHi Capital, as owner of the obligations of the Dealer with respect to such items of CNHi parts (or as servicer for the owner), an amount equal to the lesser of (a) the unpaid balance (including interest, charges, etc.) due from the Dealer on the date of repossession, or (b) the amount 

		 

		

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CNHi is required to pay Dealer to repurchase the CNHi parts under applicable law or CNHi’s agreements with the Dealer.  Such amount shall be paid to CNHi Capital within 30 days following the date on which CNHi Capital makes such parts available to CNHi.
		

		
			7.5         Marketing of CNHi Parts
		

		
			With respect to all parts not covered by Section 7.4 above, CNHi will cooperate with CNHi Capital as requested in the sale thereof in a commercially reasonable manner on behalf of CNHi Capital, as owner or servicer of the related obligations.  CNHI shall promptly deliver to CNHi Capital the proceeds of such sale, less such out-of-pocket expenses incurred in connection with such sale as agreed to in writing by CNHi and CNHi Capital.
		

		
			7.6         Wholegoods Repurchase by CNHi
		

		
			With respect to new, unused, resalable CNHi wholegoods made available to CNHi that (i) are required to be repurchased from the Dealer by CNHi under an applicable “buy-back law” or any agreement between CNHi and such Dealer, and (ii) the proceeds of which are necessary to clear the obligations of the Dealer to CNHi Capital (or its assigns) in whole or in part, CNHi shall, upon an occurrence of a Repurchase Event, pay to CNHi Capital, as owner of the obligations of the Dealer to CNHi Capital with respect thereto (or as servicer for such owner) an amount equal to the lesser of (a) the unpaid balance due from the Dealer on the date of repossession or (b) the amount CNHi is required to pay Dealer to repurchase the CNHi wholegoods under applicable law or CNHi’s agreement(s) with the Dealer. Such amount shall be paid to CNHi Capital within 30 days after the equipment has been made unconditionally available to CNHi.
		

		
			7.7         Marketing of Equipment
		

		
			With respect to all items of equipment not covered by Section 7.6 above, CNHi will cooperate with CNHi Capital as requested in the sale thereof in a commercially reasonable manner on behalf of CNHi Capital, as owner or servicer of the related obligations.  CNHi shall promptly deliver to CNHi Capital the proceeds of such sale, less such out-of-pocket expenses incurred in connection with such sale as agreed to in writing by CNHi and CNHi Capital.
		

		
			7.8         Collection Cooperation
		

		
			Each of CNHi Capital and CNHi shall cooperate in the other’s efforts to collect amounts due from Dealers following recovery of possession and disposition of CNHi Parts and Wholegoods financed pursuant to this Agreement.
		

		
			7.9         Compliance with Buy-Back Laws
		

		
			Nothing herein shall be construed as CNHi Capital’s assumption of obligations arising under (a) federal or provincial buy-back laws, or any rules, regulations and court decisions thereunder, or (b) any agreements between a Dealer and CNHi regarding any buy-backs by CNHi.  CNHi shall at all times ensure that the activities undertaken pursuant to this Article are in compliance with such laws, regulations/rules and agreements.
		

		
			7.10       Return Administration
		

		
			Promptly upon the occurrence of a Repurchase Event, CNHi shall be responsible for producing or causing the affected Dealer to produce picking tickets and reports necessary for the identification of CNHi parts to be repossessed or that are voluntarily returned by a Dealer (after Dealer Default or otherwise), and shall be responsible for valuing and determining the eligibility for return of all CNHi parts.
		

		
			7.11       Securitized Receivables Obligations
		

		
			Notwithstanding the foregoing provisions of this Article 7, after a Dealer Termination CNHi Capital may determine to liquidate or realize upon any Securitized Receivables and related Collateral Security without exercising its rights or remedies under this Agreement if CNHi Capital determines that it is obligated to do so or if it determines that the proceeds of realization of any Securitized Receivables and Collateral Security would greater than the proceeds realizable under this Agreement or otherwise.
		

		
			

		 

		

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			ARTICLE 8
		

		
			CNHI GUARANTEE OBLIGATIONS
		

		
			CNHi hereby guarantees all obligations, including the payment of finance charges, of a Dealer to CNHi Capital with respect to the following, to the extent that the following are not Securitized Receivables:
		

		
			(a)          CNHi Parts and Wholegoods sold or otherwise disposed of by the Dealer prior to the CNHi invoice date therefor; and
		

		
			(b)          all CNHi Parts and Wholegoods with respect to which CNHi failed to comply with its obligations under Sections 7.4 and 7.6 hereof.
		

		
			CNHi agrees to purchase from CNHi Capital, upon demand, all obligations of the Dealer with respect to financing guaranteed by CNHi pursuant to this Article 8.
		

		
			ARTICLE 9
		

		
			BOOKS, RECORDS AND REPORTS
		

		
			CNHi shall maintain books of account and other records with respect to matters governed by the provisions of this Agreement.  CNHi shall afford CNHi Capital and its authorized agents reasonable access during normal business hours to such books of account and other records and CNHi shall cause its personnel to assist in any examination thereof.  Any examination will be conducted in a manner that does not unreasonably interfere with normal business operations or customer or employee relations.
		

		
			ARTICLE 10
		

		
			DEFAULT
		

		
			10.1       Events of Default
		

		
			The following shall constitute an event of default (“Event of Default”) hereunder:
		

		
			(a)          Bankruptcy.  If with respect to either CNHi or CNHi Capital there shall be the commencement, voluntary or involuntary, of any case, proceeding or other action (i) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to such party, or seeking to adjudicate such party as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to such party or its debts, or seeking appointment of a receiver, trustee, custodian or other similar official for such party or any substantial part of its assets which remains undismissed, undischarged or unbonded for a period of 60 days from the entry thereof; or (ii) by or against such party of any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets which results in the entry of any order or any such relief which shall not have been vacated, discharged, stayed or bonded pending appeal within sixty (60) days from the entry thereof; or, (iii) by such party in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth above; In addition, the failure or inability of such party generally to, or the admission in writing by such party of its inability to, pay its debts as they become due shall be an Event of Default.
		

		
			(b)          Agreements.  If either CNHi or CNHi Capital shall materially violate any covenant or agreement contained herein or in any other agreement between the parties and such violation remains uncured for 30 days following Notice by the other party, with a demand to cure the noted violation.
		

		
			
		

		
			

		 

		

			9

		

 

		

			 

		

		

		
			ARTICLE 11
		

		
			TERM AND TERMINATION
		

		
			11.1       Default
		

		
			This Agreement may be terminated by either party upon Notice to the other party upon the occurrence of an Event of Default with respect to the other party.
		

		
			11.2       Initial Term; Continuation; Termination Notice
		

		
			The initial term of this Agreement ends on December 31, 2018 (the “Initial Term”). Thereafter, this Agreement shall automatically continue for additional one-year terms, and after the Initial Term, either party may terminate this Agreement upon 90-days Notice (as defined below) to the other party.
		

		
			11.3       Survival of Rights
		

		
			The termination of this Agreement shall not modify or affect the rights or obligations of either party hereunder with respect to any financing extended by CNHi Capital prior to the effective date of termination.
		

		
			ARTICLE 12
		

		
			EFFECTIVE DATE
		

		
			The rights and obligations of the parties hereunder shall be effective on the date hereof and shall apply with respect to any and all financing now or hereafter extended by CNHi Capital under the Wholesale Financing Plan and/or under this Agreement.
		

		
			ARTICLE 13
		

		
			EXCLUSIVITY
		

		
			During the term of this Agreement CNHi will not offer and will not participate with or assist any other person or entity in offering financial services of the type covered by this Agreement.
		

		
			
		

		
			

		 

		

			10

		

 

		

			 

		

		

		
			ARTICLE 14
		

		
			GENERAL PROVISIONS
		

		
			14.1       Notices
		

		
			Except as otherwise provided herein, all notices, requests, consents, approvals or other communications hereunder (collectively “Notices”) shall be in writing in the English language, shall be delivered by hand or sent by registered mail postage prepaid, by air courier delivery service or by facsimile transmission addressed as follows (or to such other person or destination as a party may be notice to the other indicate):
		

		
			If to CNHi Capital:
		

		
			CNH Industrial Capital Canada Ltd.
		

		
			5729 Washington Ave.
		

		
			Racine, WI  53406
		

		
			Fax: (262) 636-5771
		

		
			Attn: Director Commercial Lending
		

		
			If to CNHI:
		

		
			CNH Industrial Canada, Ltd.
		

		
			700 State Street
		

		
			Racine, WI 53403
		

		
			Fax 262-636-5651
		

		
			Attn: Office of the General Counsel
		

		
			All such Notices and communications hereunder shall be deemed given when received, as evidenced by the acknowledgement of receipt issued with respect thereto by the applicable postal authorities, or the signed acknowledgement of receipt of the person to whom such Notice or communication shall have been addressed, or facsimile transmission answerback, as applicable.
		

		
			14.2       Governing Law and Venue
		

		
			This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein, without regard to any conflicts of law doctrine that would apply any other jurisdiction’s law.
		

		
			14.3       Entire Agreement
		

		
			This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and shall be deemed to amend and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions between the parties, whether oral or written, with respect to the subject matter hereof, including, without limitation, the Original Agreement and the Amended and Restated Agreement.
		

		
			14.4       Modifications and Amendments
		

		
			No amendment, modification, waiver or termination of this Agreement shall be binding unless executed in writing by the parties hereto.
		

		
			14.5       Waivers and Extensions
		

		
			Any party to this Agreement may waive any right, breach, or default which such party has the right to waive, provided that such waiver will not be effective against the waiving party unless it is in writing, is signed by such party, and specifically refers to this Agreement.  Waivers may be made in advance or after the right waived has arisen or the breach 

		 

		

			11

		

 

		

			 

		

or default waived has occurred.  Any waiver may be conditional.  No waiver of any breach of any agreement or provision herein contained shall be deemed a waiver of any preceding or succeeding breach thereof nor of any other agreement or provision herein contained.  No waiver or extension of time for performance of any obligations or acts shall be deemed a waiver or extension of the time for performance of any other obligations or acts.
		

		
			14.6       Titles and Headings
		

		
			Titles and headings of sections of this Agreement are for convenience only and shall not affect the construction of any provision of this Agreement.
		

		
			14.7       Successors and Assigns
		

		
			This Agreement and the provisions hereof shall be binding upon and shall inure to the benefit of each of the parties and their respective permitted successors and assigns.
		

		
			14.8       Assignment; No Third Party Beneficiaries
		

		
			This Agreement and the rights, duties and obligations hereunder may not be assigned or delegated by either party without the prior written consent of the other party.  Any assignment or delegation of rights, duties or obligations hereunder made without the prior written consent of the other party hereto shall be void and of no effect.  This Agreement is not intended to confer any rights or benefits on any persons other than the parties hereto.
		

		
			14.9       Severability
		

		
			Any provision of this Agreement which is found to be invalid or unenforceable by any court in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or non-enforceability, and shall not affect the validity or enforceability of the remaining provisions hereof.
		

		
			14.10     Counterparts
		

		
			This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.
		

		
			IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first above written.
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						CNH Industrial Canada, Ltd.

					
					
						 

					
					
						 

					
					
						CNH Industrial Capital Canada Ltd.

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						By:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						Name:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			12

		

 

		

			 

		

		

		
			EXHIBIT A
		

		
			FORM OF ASSIGNMENT
		

		
			ASSIGNMENT
		

		
			THIS ASSIGNMENT is made as of December 31, 2017 by CNH INDUSTRIAL CANADA, LTD., a Canada corporation (the “Seller”), as seller and assignor, in favour of CNH INDUSTRIAL CAPITAL CANADA LTD., an Alberta corporation (in such capacity, the “Purchaser”).
		

		
			WHEREAS the Seller wishes to transfer certain specific, identified, existing and future Receivables and certain Collateral Security to the Purchaser and the Purchaser is willing to accept such transfer;
		

		
			AND WHEREAS capitalized terms used in this Assignment shall have the respective meanings specified in Section 3 hereof;
		

		
			NOW THEREFORE THIS ASSIGNMENT WITNESSES that, in consideration of the sum of $2.00 in the lawful currency of Canada now paid by the Purchaser to the Seller and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by the Seller) the Seller and the Purchaser agree as follows:
		

		
			1.          The Seller does hereby sell, transfer, assign, set over and otherwise convey without recourse (except as expressly provided herein or in the Wholesale Sale and Servicing Agreement) to the Purchaser on the date hereof:
		

		
			(a)        all of the Seller’s right, title and interest in, to and under the universality of (i) all of the Receivables in or under each Account as at the close of business on the Business Day immediately preceding the date hereof, (ii) all Receivables created in or under each Account on each Business Day after the Business Day immediately preceding the date hereof, and (iii) all Collateral Security with respect to such Receivables; and
		

		
			(b)        all of the Seller’s right, title and interest in, to and under all monies due or to become due and all amounts received with respect to the property and assets described in paragraph (a) above and all proceeds (including “proceeds” as defined in the PPSA as in effect in the Province of Ontario) thereof, all created in connection with the Accounts.
		

		
			2.          This Assignment is made pursuant to and upon the representations, warranties and agreements contained in the Sale and Servicing Agreement and is to be governed in all respects by the Wholesale and Parts CNHi Capital Financing Agreement.
		

		
			3.          The Debtor hereby makes the Perfection Representations and Warranties to the Secured Party.  For purposes of this Section 3 Debtor shall mean the Seller, the Secured Party shall mean the Purchaser, and the Specified Agreement shall mean this Agreement.  The Debtor hereby authorizes the Servicer to file financing statements and similar instruments under the PPSA without the Debtor’s signature where allowed by applicable law.
		

		
			
		

		
			

		 

		

			 

		

 

		

			-2-

		

		

		
			4.          Terms used herein with initial capital or upper case letters which are not defined herein shall have the respective meanings assigned to them in the Sale and Servicing Agreement and the Wholesale and Parts CNHi Capital Financing Agreement, as applicable, and the terms specified in Schedule A hereto shall have the meanings assigned thereto in Schedule A.
		

		
			IN WITNESS WHEREOF, the undersigned has caused this Assignment to be duly executed as of December 31, 2017.
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						CNH INDUSTRIAL CANADA, LTD.

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						By:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						Name:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						 

					
					
						 

				

		
			 
		

		
			Accepted and agreed as of December __, 2017
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						CNH INDUSTRIAL CAPITAL CANADA LTD.

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						By:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						Name:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			SCHEDULE A
		

		
			TO ASSIGNMENT
		

		
			“Account” shall mean each Initial Account and each Automatic Additional Account.
		

		
			“Automatic Additional Accounts” means each individual Wholesale Credit Line or Open Account established or created by the Seller or the Purchaser for a Dealer on or after the date of this Assignment.
		

		
			“CNHi” means CNH Industrial Canada, Ltd.
		

		
			“CNHi Parts and Wholegoods” means parts, supplies, inventory, equipment and other goods and services sold to Dealers by CNHi, whether branded Case, Case IH, New Holland, New Holland Construction or under any other brand owned by or licensed to CNHi and its affiliates, and includes, without limitation, replacement parts, attachments, supplies, garments, premiums, tooling, display cases, computers, software, flags, banners, posters, yellow page listings, training, warranty claims and any other services provided by CNHi.
		

		
			“Collateral Security” means with respect to any Receivable: (a) the related invoice, and (b) the Lien of CNHI, if any, in the related CNHI Parts and Wholegoods (granted under the related invoice or otherwise) securing the Receivable.
		

		
			“CNHi Capital” means CNH Industrial Capital Canada Ltd.
		

		
			“Dealer” means a dealer authorized by CNHi to sell or distribute any goods manufactured, sold or distributed by CNHi and its affiliates and which has executed a CNHi Dealer Agreement.
		

		
			“Initial Account” shall mean each individual Wholesale Credit Line or Open Account established or created by the Seller or the Purchaser with a Dealer pursuant to a Wholesale Finance Plan and existing on and as of the close of business on the Business Day preceding the date of this Assignment.
		

		
			“Lien” means any security interest, mortgage, hypothec, reservation of ownership, deed of trust, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), preference, participation interest, priority or other security agreement or preferential arrangement of any kind or nature whatsoever, and includes any reservation of ownership or retention of title created under a Wholesale Finance Plan with a Quebec Dealer or under an invoice.
		

		
			“Open Account” means an account established for a Dealer by CNHi Capital or CNHi pursuant to which CNHi Capital finances CNHi Parts sold to the Dealer.
		

		
			“Open Account Terms” means the terms under which CNHi sells parts and other miscellaneous items and services (excluding wholegoods) to Dealers and pursuant to which CNHi and/or CNHi Capital finances such goods for the Dealers, as modified from time to time.
		

		
			“PPSA”  means (a) the personal property security legislation, as amended, supplemented or replaced from time to time, as in effect in each Province of Canada (other than Québec), (b) the Uniform Commercial Code, as amended, supplemented or replaced from time to time, as in effect in the State of Wisconsin, and (c) the Québec Civil Code, as amended, supplemented or replaced from time to time, as in effect in Québec.
		

		
			“Person” shall mean any legal person, including any individual, corporation, partnership, association, joint-stock company, trust, unincorporated organization, governmental entity or other entity of similar nature.
		

		
			“Quebec Dealer” means a Dealer located or resident in the Province of Quebec.
		

		
			
		

		
			

		 

		

			 

		

 

		

			-2-

		

		

		
			“Receivables” shall mean, with respect to an Account:
		

		
			(a)          all amounts shown on the Seller’s records as amounts payable by the related Dealer to the Seller under the Account and the related Wholesale Finance Plan;
		

		
			(b)          all amounts shown on the Purchaser’s or the Servicer’s records on and after the date hereof as amounts payable by the related Quebec Dealer under the Account and the related Wholesale Finance Plan in respect of credit sales, conditional sales or instalment sales made by the Seller to such Quebec Dealer on or after the date hereof to finance the acquisition of CNHi Parts and Wholegoods by such Dealer from the Seller; and
		

		
			(c)          to the extent that the Seller may have any interest therein, all amounts shown on the Purchaser’s or the Servicer’s records as amounts payable by the related Dealer in respect of advances or extensions of credit made by the Purchaser to such Dealer after the date hereof to finance the acquisition of CNHi Parts and Wholegoods by such Dealer from the Seller.
		

		
			“Rental Plan” means CNHi Rental Equipment Plan, CNHi Rental Flex Plan, Rent-To-Own Plan or any other rental plan from time to time established jointly by CNHi and CNHi Capital in connection with a Wholesale Credit Line and published in the Discounts and Terms.
		

		
			“Sale and Servicing Agreement” means the Amended and Restated Sale and Servicing Agreement dated as of November 30, 2009 between the CNHi Capital Canada Ltd., an Alberta corporation, as seller, in favour of Computershare Trust Company of Canada, in its capacity as trustee of CNHi Capital Canada Wholesale Trust, as amended, restated, supplemented or otherwise modified from time to time.
		

		
			“Servicer” shall mean CNHi Capital, in its capacity as Servicer under the Sale and Servicing Agreement, and its successors or assigns in such capacity under the Sale and Servicing Agreement.
		

		
			“Wholesale and Parts CNHi Capital Financing Agreement” means the Second Amended and Restated Wholesale and Parts CNHi Capital Financing Agreement made as of the date hereof between CNH Industrial Canada, Ltd., a Canadian corporation, and CNH Industrial Capital Canada Ltd., an Alberta corporation.
		

		
			“Wholesale Credit Line” means the maximum dollar amount of CNHi Parts and Wholegoods inventory that CNHi Capital will consider financing for a Dealer.
		

		
			“Wholesale Finance Plan” means each plan established by CNHi Capital, as modified from time to time in consultation with CNHi, setting forth the terms and conditions of the wholesale financing for Dealers.Exhibit

EXHIBIT 10.1

LEGACYTEXAS FINANCIAL GROUP, INC. 
  
2017 OMNIBUS INCENTIVE PLAN 
  
PERFORMANCE SHARE AWARD AGREEMENT 
  
  
PSA - NO. _______ 
  
Performance Shares are hereby awarded on _____________ (the "Grant Date") by LegacyTexas Financial Group, Inc., a Maryland corporation (the "Company"), to ______________ (the "Grantee"), pursuant to the LegacyTexas Financial Group, Inc. 2017 Omnibus Incentive Plan (as the same may from time to time be amended, the "Plan"), and upon the terms and conditions and subject to the restrictions set forth in the Plan and hereinafter set forth.  
 
Each Performance Share earned under this Agreement will be equivalent in value to one share of the Company's common stock, par value $0.01 per share (the "Common Stock"), and will entitle the Grantee to receive from the Company at the times set forth in this Agreement one share of Common Stock, together with any dividend equivalents (as defined below) with respect thereto.  Each Performance Share is subject to the terms and conditions set forth herein and in the Plan. Capitalized terms used herein but not defined herein shall have the meanings ascribed to such terms in the Plan. 

1.Target Number of Performance Shares.  The target number of Performance Shares granted to the Grantee under this Agreement shall be ________. 
 
2.Performance Period, Vesting Date and Number of Performance Shares Available to be Earned.  The number of Performance Shares earned and the Performance Period, vesting and payment dates thereof shall be determined in accordance with Exhibit A attached hereto, the provisions of which are incorporated into this Agreement as if set forth herein. 
  
3.Dividend Equivalents.   The Performance Shares will accumulate dividend equivalents.  The dividend equivalents shall equal the dividends actually paid with respect to Company Common Stock during the period beginning with the Grant Date and ending on the date the Performance Shares are either earned or forfeited. The dividend equivalents shall accumulate, without interest, and be paid in cash at the time shares of Common Stock are paid with respect to any earned Performance Shares, or shall be forfeited at the time the Performance Shares are forfeited. For purposes of determining the amount of dividends accumulated and to be paid with respect any earned Performance Shares, the earned Performance Shares will be considered to have been outstanding from the Grant Date. 
 
4.Effect of Certain Events.  The effect of a Change in Control or of termination of the Grantee's employment upon the Award shall be determined as set forth in Exhibit A attached hereto. 
 
5.Adjustments for Changes in Capitalization of the Company.  In the event of any merger, reorganization, consolidation, recapitalization, separation, liquidation, stock dividend, split up, share combination or other change in the corporate structure of the Company affecting the shares of the Company's Common Stock, such adjustment shall be made in the number of Performance Shares and/or the number and class of shares of Common Stock payable with respect to the Performance Shares subject to this Agreement, as shall be determined to be appropriate and equitable by the Committee to prevent dilution or enlargement of rights, provided that the number of Performance Shares and shares covered by this Agreement shall always be a whole number and the average closing price shall be rounded to the nearest whole cent. 

6.Delivery and Registration of Shares of Common Stock.  The Company's obligation to deliver the Common Stock payable with respect to the Performance Shares earned hereunder shall, if the Committee so requests, be conditioned upon the receipt of a representation as to the investment intention of the Grantee or any other person to whom such Shares are to be delivered, in such form as the Committee shall determine to be necessary or advisable to comply with the provisions of the Securities Act of 1933, as amended, or any other Federal, state or local securities regulation.  It may be provided that any representation requirement shall become inoperative upon a registration of such shares or other action eliminating the necessity of such representation under such Securities Act or other securities regulation.  The Company shall not be required to deliver any shares of Common Stock under the Plan prior to (i) the admission of such shares to listing on any stock exchange or automated quotation system on which the shares of Common Stock may then be listed 

or quoted, and (ii) the completion of such registration or other qualification of such shares under any state or Federal law, rule or regulation, as the Committee shall determine to be necessary or advisable. 

7.Grantee Employment.  Nothing in this Agreement shall limit the right of the Company or any Subsidiary to terminate the Grantee's employment, or otherwise impose upon the Company or any Subsidiary any obligation to employ or accept the services of the Grantee. 

8.Withholding Tax.  The Company shall withhold from any payment or distribution made under this Agreement shares of Common Stock with a Fair Market Value sufficient to satisfy any applicable income, employment or other taxes required by law to be withheld.  The Company shall have the right to deduct from all dividend equivalents paid the amount of any taxes which the Company is required to withhold at the time such amounts are paid to the Grantee. 

9. Regulatory, Recoupment and Holding Period Requirements.  The Grantee acknowledges and agrees that this Award and the Grantee's receipt of any shares of Common Stock hereunder is subject to (a) the provisions of Section 19.3 of the Plan, including possible reduction, cancellation, forfeiture or recoupment (clawback), delayed payment or holding period requirements, upon the occurrence of events set forth in Section 19.3 of the Plan, and (b) any policies which the Company may adopt in furtherance of any Regulatory Requirements (including, but not limited to, the Dodd-Frank Wall Street Reform and Consumer Protection Act) or otherwise. 

10. Non-solicitation. 
 
(a)In exchange for the Company providing the Grantee the consideration set forth herein and other confidential information, during the Grantee's employment with the Company and for a period of one year after the separation of such employment for any reason, the Grantee hereby agrees not to, either directly or indirectly: (i) solicit the employment of, recruit, employ, hire, cause to be employed or hired, entice away, or establish a business with any person whom the Grantee had contact with or job-related information about in the course of such person's employment or other relationship with the Company, or suggest to or discuss with any such person the discontinuation of that person's status or employment with the Company; or (ii) on behalf of any person or entity engaged in the same or similar business as the Company, call on, service, solicit, or accept competing business from the Company's customers or prospective customers whom or which the Grantee, within the previous two (2) years, had or made contact with regarding the Company's business or had access to the Company's information or files about such customer or prospective customer. 
 
(b)To the extent that any provision of this Section 10 shall be determined to be invalid or unenforceable in any respect or to any extent, the provision shall not be void or rendered invalid, but instead shall be automatically amended for such lesser term, to such lesser extent, or in such other lesser degree, as will grant the Company the maximum protection and restrictions on the Grantee's activities permitted by applicable law in such circumstances. If the Grantee violates a non-solicitation provision described above and the Company brings legal action for injunctive relief, the Company shall not, as a result of such breach or the time involved in obtaining the relief, be deprived of the benefit of the full period of the provision(s) violated.  Accordingly, the provision(s) shall be deemed to be in effect for the duration specified therein, computed from the date the relief is granted but not to include any period of time during which the Grantee is in violation of the provision(s). 
  
  (c)      The Company's right to enforce the terms of this Section 10 shall not be affected by the existence or non-existence of any other similar agreement for anyone else, or by the Company's failure to fully enforce, or enforce at all, the terms of any other such agreement.  The provisions of this Section 10 are in addition to and not in lieu of, and do not supersede, cancel or replace, (i) any agreement regarding non-solicitation or non-recruitment of customers, consultants or employees previously or subsequently signed by the Grantee, or (ii) any provisions of an existing agreement regarding any such subjects.  Likewise, this Agreement does not alter or amend the terms of any existing agreement between the Company and the Grantee concerning employment, and such agreement shall not operate to preclude the enforcement (or cancel the terms) of this Agreement. In case of any conflict between the terms of this Agreement and the terms of any such agreement concerning employment, the terms of that agreement shall not operate to cancel, supersede or preclude the enforcement of the terms of this Agreement. The terms of any other such agreement shall be construed and enforced without reference to this Agreement unless such agreement references this Agreement, specifically or generally. 
  
11. Grantee Acceptance.  The Grantee shall signify his/her acceptance of the terms and conditions of this Agreement by signing in the space provided below and returning a signed copy hereof to the Company.  To the extent the terms of any employment, severance or other agreement to which the Grantee is a party with the Company or any Subsidiary that is then in effect provide for any rights that conflict with or are otherwise contrary to the terms contained in this Agreement, including the vesting rights contained in Exhibit A, the terms of this Agreement shall control. 

 
12. Conformity with Plan.  The grant of Performance Shares is intended to conform in all respects with, and is subject to all applicable provisions of, the Plan (which is incorporated herein by reference).  Inconsistencies between this Agreement and the Plan shall be resolved in accordance with the terms of the Plan.  By executing and returning the enclosed copy of this Agreement, the Grantee acknowledges his or her receipt of this Agreement and the Plan and agrees to be bound by all of the terms of this Agreement and the Plan. 
 
13. Electronic Signature.  All references to signatures and delivery of documents in this Agreement may be satisfied by procedures the Company has established or may establish from time to time for an electronic system for execution and delivery of any such documents, including this Agreement.  The Grantee's electronic signature, including, without limitation, "click-through" acceptance of this Agreement through a website maintained by or on behalf of the Company, is the same as, and shall have the same force and effect as, the Grantee's manual signature.  Any such procedures and delivery may be effected by a third party engaged by the Company to provide administrative services relating to this Agreement. 
 
14. Entire Agreement.  This Agreement, including Exhibit A hereto, and the terms of the Plan constitute the entire understanding between the Grantee and the Company, and supersede all other agreements, whether written or oral, with respect to this award of Performance Shares. 
 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed effective as of the date first written above. 

(Signatures contained on following page)
  
                                  LEGACYTEXAS FINANCIAL GROUP, INC. 
  
  
_________________________________________ 
[Name/Title] 
  
        
  
ACCEPTED BY GRANTEE: 
  
  
__________________________________________ 
                                       (Signature) 
  
__________________________________________ 
 (Street Address) 
        
___________________________________________ 
(City, State, and Zip Code) 
  
 
 
Beneficiary Designation: 
 
The Grantee designates the following Beneficiary or Beneficiaries to receive the Earned Performance Shares upon the Grantee's death: 
 
_________________________________________________________________________________ 
  
  
  
  

Exhibit A to Performance Share Award Agreement 
 
References herein to "Agreement" shall mean the Performance Share Award Agreement, inclusive of this Exhibit A, and references to "Award" shall mean the Performance Award evidenced by the Agreement. 
 
1.           Company ROAA and Company ROAE-based Performance Measures 
  
(a)Performance Measures and Performance Goal:  The Performance Measures applicable to this Award are Company ROAA and Company ROAE (as each are defined below), and the Performance Goals are the relative Company ROAA and Company ROAE as compared to the Comparative Peer Group ROAA and Comparative Peer Group ROAE (as each are defined below) for the Performance Period, giving equal weight to each Performance Goal. 
  
(b)Certification of Achievement Relative to Performance Goal:   Following the end of the Performance Period, the Committee will certify the level of the Performance Goals achieved, as well as the Company’s Total Shareholder Return compared to the Total Shareholder Return of the Comparative Peer Group (as each are defined below).  Performance at or above the threshold level will result in all or a portion of the Performance Shares becoming earned, with the Preliminary Net Award (as defined in Section 3(e) below) then adjusted for the Company’s Total Shareholder Return performance to determine the number of Performance Shares actually earned ("Earned Performance Shares") as set forth below.  Earned Performance Shares will vest as set forth below.  Performance Shares will be forfeited and cancelled in full if the Company's performance during the Performance Period does not meet or exceed the threshold percentile rank of the applicable Performance Goal. To the extent the Earned Performance Shares are less than the target number of Performance Shares, such excess Performance Shares shall be forfeited and cancelled.  The certification of the level of the Performance Goals achieved and the corresponding number of Earned Performance Shares shall be determined and certified by the Committee in writing following the last day of the Performance Period, and by no later than April 15th in order to allow for companies in the KBW Index (defined below) to complete and report their own financials for the Performance Period, such date being referred to herein as the "Certification Date." 
   
(c)Vesting Date for Earned Performance Shares:  Subject to Section 5 of this Exhibit A, 100% of the Earned Performance Shares will vest on the Certification Date, provided that the Grantee is then serving as an employee of the Company or any Subsidiary. 
  
(d)Payment of Shares for Earned and Vested Performance Shares:  The Company will issue shares of Common Stock and pay dividend equivalents to the Grantee with respect to any Earned Performance Shares not later than 60 days following the Certification Date. 

		
	  
	2.           Additional  Definitions 

 
(a)Performance Period means the [   ] period commencing [     ] and ending [     ]. 
  
(b)Company ROAA means the average of the Company's core return on average assets over the Performance Period as measured by core (non-GAAP) net income, which is net income adjusted for the impact of merger and acquisition costs, and one-time gains and losses on assets and security sales ("Core Net Income"), divided by average total assets, with the average over the Performance Period determined in accordance with Section 4(b) below. 
  
(c)Company ROAE means the average of the Company's core return on average shareholders' equity over the Performance Period as measured by Core Net Income divided by average total shareholders' equity, with the average over the Performance Period determined in accordance with Section 4(b) below. 

(d)Comparative Peer Group means those companies included in the KBW Index as of the end of a Calculation Period as set forth in Section 4(d) below.

(e)Comparative Peer Group ROAA means the average of the return on average assets for each of the companies in the KBW Index over the Performance Period as calculated by dividing the net income of each such company during the Performance Period by the average total assets of each such company during the Performance Period, with the average over the Performance Period determined in accordance with Section 4(b) below.    
        
(f)      Comparative Peer Group ROAE means the average of the return on average shareholders' equity for each of the companies in the KBW Index over the Performance Period as calculated by dividing net income of each such 

company during the Performance Period by the average total shareholders' equity of each such company during the Performance Period, with the average over the Performance Period determined in accordance with Section 4(b) below. 
(g)    KBW Index means the KBW Nasdaq Regional Banking Index as of the end of each Calculation Period or Performance Period, as applicable.
(h)    Qualifying Termination means termination of employment due to death, Disability, involuntary termination or a resignation for good reason under an employment, severance or other agreement applicable to the Grantee, or an involuntary termination (including a termination for good reason) upon or after a Change in Control. 

(i)     “Total Shareholder Return” or “TSR” as applied to the Company or any company in the Comparative Peer Group means stock price appreciation from the beginning to the end of the Performance Period, including dividends and distributions made, assuming such dividends or distributions are reinvested in the common stock of the Company or any company in the Comparative Peer Group during the Performance Period, expressed as a percentage return.  For purposes of computing TSR, the beginning stock price will be the average price of a share of common stock over the 20 trading days ending on the day before the first day of the Performance Period, and the ending stock price will be the average price of a share of common stock over the 20 trading days ending on the last day of the Performance Period or other measurement period.
  
3.           Calculation. 
For purposes of the Award and this Exhibit A, the number of Performance Shares earned will be calculated as follows (and in accordance with the provisions of Section 4 of this Exhibit A): 
(a)First:   Determine the Company ROAA and Company ROAE and determine the Comparative Peer Group ROAA and the Comparative Peer Group ROAE over the Performance Period. 

(b)Second:  Rank the Company ROAA and Comparative Peer Group ROAA percentages and the Company ROAE and Comparative Peer Group ROAE percentages determined in the first step from low to high (with the company having the lowest percentage being ranked number 1 in each category, the company with the second lowest percentage ranked number 2 in each category, and so on) and determine the Company's percentile rank based upon its position in the list by dividing the Company's position (minus 1) by the total number of companies (including the Company) in the Comparative Peer Group (minus 1) and rounding the quotient to the nearest hundredth. For example, if the Company ROAA were ranked 35 and the Company ROAE were ranked 32 on the list out of 50 companies (including the Company), its percentile rank would be 69.39% (35-1/50-1) and 63.27% (32-1/50-1), respectively. 

(c)Third:  Plot the percentile rank for the Company ROAA and Company ROAE determined in Section 3(b) into the appropriate column of the table below and determine the number of Performance Shares earned as a percent of target, which is the figure in the applicable column in the table below corresponding to that percentile rank.  Use linear interpolation between points in the table below to determine the percentile rank and the corresponding percent of target Performance Shares earned if the Company's percentile rank is between 35% and 90% but not exactly one of the percentile ranks listed in the table below.  For example, if the Company ROAA and Company ROAE percentile ranks are 69.39% and 63.27%, then 148.48% and 133.18% of the target number of Performance Shares applicable to the Company ROAA  and Company ROAE Performance Goals, respectively, would be earned. 
   
	
						
	Measure
	Weighting
	Performance/Payout
	Threshold
	Target
	Maximum

	ROAA
	50%
	Performance
	35th percentile
	50th percentile
	90th percentile

	 
	 
	Payout
	50% of target
	100% of target
	200% of target

	 
	 
	 
	 
	 
	 

	ROAE
	50%
	Performance
	35th percentile
	50th percentile
	90th percentile

	 
	 
	Payout
	50% of target
	100% of target
	200% of target

Note: Awards calculated using this table will be interpolated on a straight-line basis.
 
(d)    Fourth:  Multiply fifty percent (50%) of the target number of Performance Shares awarded to the Grantee under this Agreement by the percent of target Performance Shares earned for each Performance Goal as calculated in Section 3(c), the resulting total being referred to as the “Preliminary Net Award.”

(e)    Fifth:  Plot the Company’s Total Shareholder Return compared to the Total Shareholder Return of the Comparative Peer Group during the Performance Period (i.e., the Company’s Total Shareholder Return will be ranked against the Total Shareholder Return of the Comparative Peer Group). Specifically, the Committee shall calculate the number of Performance Shares that may be paid to the Employee by multiplying the Employee’s Preliminary Net Award by the applicable percentage determined under the chart below.  For purposes of this calculation, Total Shareholder Return will be calculated for each Calculation Period, with the sum of the annual returns for the Calculation Periods then being divided by the number of years in the Performance Period. The resulting total of this step represents the total number of Earned Performance Shares.
	
					
	Modifier
	Performance/Payout
	Threshold
	Target
	Maximum

	Total Shareholder Return
	Performance
	35th percentile
	50th percentile
	90th percentile

	Payout
	80% of Preliminary Net Award
	100% of Preliminary Net Award
	120% of Preliminary Net Award

Note: Awards modified using this table will be interpolated on a straight-line basis between 80% and 120% of the Preliminary Net Award.

4.           Rules. 
The following rules apply to the computation of the number of Performance Shares earned: 
(a)       Weighting of Performance Goals:  The Performance Goals are weighted equally meaning that half of the target number of Performance Shares awarded to the Grantee will be attributable to each Performance Goal.  If the threshold level of performance is not met for a particular Performance Goal, the portion of the target award related to that Performance Goal will not be earned. 
(b)    Calculation of Performance Goals over the Performance Period:  To determine the Company's percentile ranking over the Performance Period under Sections 3(b) and (c) above, the Performance Goals will be calculated annually as of the last day of the Company's fiscal year (each a "Calculation Period"), with the sum of the annual results for each Performance Goal for the Calculation Periods then being divided by the number of years in the Performance Period. 
(c)    No Guaranteed Payout: The minimum number of Performance Shares which may be earned is zero and the maximum number of Performance Shares which may be earned is 200% of target. There is no minimum number of Performance Shares or other consideration that will be paid out, and no Performance Shares will be earned if the percentile rank with respect to each of the Performance Goals is less than the 35th percentile in the Performance Period.  Notwithstanding anything to the contrary in this Agreement, the actual number of Earned Performance Shares may be reduced by the Committee in its sole and absolute discretion based on such factors as the Committee determines to be appropriate and/or advisable.  However, it is the intention of the Committee that it will exercise such negative discretion only in extreme and unusual circumstances. 

(d)    Changes in Companies in the KBW Index:  Companies shall be added and/or removed from the KBW Index as determined by the KBW Index administrator.  A company that is added to the KBW Index before the end of a Calculation Period will be included in the computation of the Performance Goals and the Total Shareholder Return for that Calculation Period.  A company that is removed from the KBW Index before the end of a Calculation Period will not be included in the computation of the Performance Goals or the Total Shareholder Return for that Calculation Period. 
          
		
	5.
	Effect of Certain Events.  

The following provisions will apply in the event of the termination of employment or the occurrence of a Change in Control prior to the end of the Performance Period and completion of the vesting period. 
(a)           Termination of Service Prior to a Change in Control. 
(i)Termination Due to Qualifying Termination:  In the event the Grantee’s employment with the Company terminates due to the Grantee's Qualifying Termination prior to the Certification Date following the end of the Performance Period, this Award shall not terminate and Performance Shares may become earned and vested at the end of the Performance Period.  The number of Performance Shares which shall become earned and vested shall be equal to the percentage of the target number of Performance Shares earned (as certified by the Committee following the end of the Performance Period, or if earlier, the date of a Change in Control) as if the Grantee's employment had not 

terminated, pro-rated based on the Grantee’s number of months' service during the Performance Period; provided that the Common Stock and dividend equivalents underlying such Earned Performance Shares shall be distributed following the Performance Period at such time as distributions are made to others with respect to such Earned Performance Shares, subject to Section 19.4 of the Plan relating to compliance with Section 409A. 
  
(ii)Termination for Any Reason Other Than Due to a Qualifying Termination:  If the Grantee’s employment is terminated for any reason other than a Qualifying Termination prior to the Certification Date following the end of the Performance Period, this Award shall terminate, all outstanding Performance Shares hereunder will be forfeited and cancelled, and no additional amounts shall become payable under this Award as of the date of such employment termination; provided, however, in the event of a termination of employment other than due to a Qualifying Termination or Cause, the Committee in its sole discretion may waive the foregoing automatic cancellation provision and payout on a pro rata basis as set forth in Section 5(a)(i) of this Exhibit A. 
    
 (b)           Effect of Change in Control.  In the event of a Change in Control (as defined in the Plan) prior to the end of the Performance Period, the number of Performance Shares earned shall be calculated and certified by the Committee, and such Performance Shares shall become earned, vested and payable as follows. 
 
(i)     Earned Performance Shares:  The Performance Shares subject to this Award shall be deemed earned to the extent, as determined by the Committee, to which the Performance Goals applicable to the Performance Shares have been met, including application of the TSR performance adjustment described above, during the Performance Period up through and including the effective date of the Change in Control, also giving effect to TSR performance adjustments during the Performance Period  (using the latest available information prior to the date of the Change in Control).  The Committee shall determine and certify the number of Earned Performance Shares in accordance with Section 3 of this Exhibit A.
 
(ii)    Vesting of Performance Shares:  The Common Stock and dividend equivalents underlying such Earned Performance Shares shall vest as of the end of the Performance Period and shall be distributed to the Grantee no later than 60 days following the end of the Performance Period. If the Grantee's employment terminates following the Change in Control in circumstances constituting a Qualifying Termination, all unvested Earned Performance Shares shall vest in full and the Common Stock and dividend equivalents underlying such Performance Shares shall, subject to Section 19.4 of the Plan relating to compliance with Section 409A, be distributed as promptly as practicable and in no event later than 30 days following such termination of employment.

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