Document:

Exhibit 10.1

 

Execution Copy

 

COUNTRY CLUB GARDEN APARTMENTS

 

PURCHASE AND SALE AGREEMENT

 

BY AND BETWEEN

 

THE ENTITIES SET FORTH ON EXHIBIT A

 

ATTACHED HERETO,

 

AS SELLER,

 

AND

 

THE HAMILTON COMPANY, OR ITS NOMINEE,

 

AS PURCHASER

 

As of September 27, 2019

 

 

PURCHASE AND SALE AGREEMENT

 

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is made as of the 27th day of September, 2019 (the “Effective Date”), by and between THE ENTITIES SET FORTH ON EXHIBIT A ATTACHED HERETO, each having an office at 57 Mill Street, Woburn, Massachusetts 01801 (collectively, “Seller”), and THE HAMILTON COMPANY, INC., a Massachusetts corporation, having an office at 39 Brighton Avenue, Allston (Boston), Massachusetts 02134 (“Purchaser”).

 

R E C I T A L

 

WHEREAS, Seller is the owner of the Property (as hereinafter defined).  Seller desires to sell the Property to Purchaser and Purchaser desires to buy the Property from Seller, all on and subject to the terms and conditions hereinafter set forth;

 

NOW THEREFORE, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

ARTICLE I

 

PURCHASE AND SALE

 

1.1          Agreement of Purchase and Sale.  Subject to the terms and conditions hereinafter set forth, Seller agrees to sell, assign, transfer and convey to Purchaser and Purchaser agrees to purchase, accept and acquire the following:

 

(a)           those eight (8) certain parcels of land situated in Middlesex County, Massachusetts more particularly described on Schedule 1.1(a) attached hereto and made a part hereof, and known as Country Club Garden Apartments, known as 57 Mill Street, Woburn, Massachusetts, including (i) lots 1 and 2 containing approximately 5.09 acres of developed land (the “Apartment Complex”), and (ii) six parcels of vacant land containing approximately 3.26 acres of vacant land associated therewith (the “Vacant Land”), permitted for seventy-two (72) additional apartment units, clubhouse space and one hundred forty-four (144) parking spaces, together with any and all rights and appurtenances pertaining to such property, including any right, title and interest of Seller in and to adjacent streets, alleys or rights-of-way (collectively, the “Land”);

 

(b)           the buildings, structures, fixtures and other improvements on the Land, including specifically, the fifteen (15) apartment multi-family residential buildings located thereon (the “Buildings”) containing one hundred eighty-one (181) residential apartment units, sufficient parking spaces to comply with applicable legal requirements, pool, patio, picnic area, open community green and community laundry (the “Improvements”);

 

(c)           all of Seller’s right, title and interest in and to all tangible personal property located upon or used in connection with the ownership or operation of the Land or the Improvements (the “Personal Property”), including specifically, without limitation, appliances, furniture, carpeting, draperies and curtains, tools and supplies, wall unit air conditioning, pool, patio, community laundry, and other items of personal property

 

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(excluding cash and accounts receivable) used exclusively in connection with the operation of the Land and the Improvements, but specifically excluding (i) any proprietary or confidential materials; (ii) any property that serves or is used in connection with any property other than the Property; (iii) any property owned by tenants or parties other than Seller; and (iv) any property leased by Seller.  A list of the Personal Property included in the sale is attached as Schedule 1.1(b) and a list of the personal property excluded from the sale is set forth on Schedule 1.1(c) attached hereto (the “Excluded Personal Property Schedule”);

 

(d)           all of Seller’s right, title and interest as landlord in and to all lease agreements as set forth on the rent roll (the “Rent Roll”) attached hereto as Schedule 1.1(d) and made a part hereof, and as updated through Closing (collectively, the “Leases”) and all security deposits, including first and last month’s rent, paid to the landlord under the Leases (including all interest thereon to which the tenants are entitled to receive) to the extent not applied in the case of a tenant default in accordance with the terms of this Agreement (collectively, the “Security Deposits”);

 

(e)           all of Seller’s right, title and interest in and to all contracts and agreements (collectively, the “Property Agreements”) listed and described on Schedule 1.1(e) attached hereto and made a part hereof, relating to the upkeep, repair, maintenance or operation of the Land or Improvements which will extend beyond the Closing Date (as such term is defined in Section 4.1 hereof) and which Purchaser has elected to assume per Section 3.3 hereof (the “Assumed Agreements”);

 

(f)            all of Seller’s right, title and interest in and to all licenses, permits, certificates of occupancy, approvals, dedications, subdivision maps and entitlements now or hereafter issued, approved or granted by governmental agencies having jurisdiction over the Land and Improvements or any portion thereof, together with all renewals and modifications thereof, including, without limitation all of Seller’s right, title and interest in and to that certain Finding and Decision on Application for Comprehensive Permit issued by the City of Woburn Board of Appeals, dated June 21, 2017 and recorded with the Middlesex (South District) Registry of Deeds in Book 69601, Page 295 (collectively, the “Licenses and Permits”);

 

(g)           all of Seller’s right, title and interest in and to all other intangible rights, titles, interests, privileges and appurtenances owned by Seller and related to or used exclusively in connection with the ownership, use or operation of the Land or the Improvements to the extent Seller’s rights and interests therein are transferable, including specifically, without limitation, to the extent assignable, (i) the use of the name “Country Club Garden Apartments” and any logos, trademarks or similar intellectual property encompassing such name; (ii) any domain names, including www.liveccga.com and, (iii) any telephone numbers, including local and toll free numbers, used in connection with the Land and Improvements, but specifically excluding any proprietary or confidential materials and any property that serves or is used in connection with any property other than the Property (collectively, the “Other Intangibles”); and

 

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(h)           all books and records, ledgers, tenant records, delinquency reports, insurance records and policies, title policies and other similar records relating to the operation of the Seller and the Land and Improvements (the “Books and Records,” together with the Land, Improvements, Personal Property, Leases, Security Deposits, Property Agreements and Licenses and Permits and Other Intangibles, collectively, the “Property”), but specifically excluding any proprietary or confidential materials and any of the foregoing that relates to any entity other than Seller or any property other than the Land and the Improvements.

 

(i)            The Purchaser shall have the right to elect to purchase only the Apartment Complex during the Inspection Period (the “Election”).  In the event of such Election, the Purchase Price shall be reduced by $2,500,000.  The Election to purchase only the Apartment Complex is conditioned upon the parties using good faith efforts to agree to the terms and conditions of certain easement during the Inspection Period consistent with the terms of the 40B approvals applicable to the Vacant Land whereby (i) the Purchaser would be afforded easement rights to an exclusive parking area on the Vacant Land serving the Apartment Complex with typical cross indemnity and maintenance provisions, and (ii) the Seller would retain certain easement rights for an access route to Salem Avenue through the Apartment Complex parking by means of a key fob access gate to be constructed and maintained by the Seller (as the owner of the Vacant Land).  If despite such good faith efforts the parties cannot agree on the terms of the foregoing easements during the Inspection Period, then the Election shall be deeded rejected, in which event, the Purchaser shall remain obligated to purchase all of the Property on the terms and conditions set forth in this Agreement.

 

1.2          Purchase Price.  Seller is to sell and Purchaser is to purchase the Property for a total purchase price of Fifty-Nine Million Five Hundred Fifty Thousand and 00/100 Dollars ($59,550,000.00) (the “Purchase Price”).

 

1.3          Payment of Purchase Price.  At Closing the Purchase Price, subject to a credit for the Earnest Money (as defined in Section 1.4) and subject to adjustment as specified herein, shall be paid by wire transfer of immediately available federal funds or by cashier’s, treasurer’s or bank certified check.  The Earnest Money shall be applied towards the Purchase Price.

 

1.4          Earnest Money.  Within two (2) business days (which means any day other than a Saturday, Sunday, or legal holiday under the laws of the United States or the Commonwealth of Massachusetts (a “Business Day”)) of the execution and delivery of this Agreement, Purchaser shall deposit with the Commonwealth Land Title Insurance Company, 265 Franklin Street, 8th floor, Boston, MA Attn:  Phil Tanner, Underwriting Counsel, 617-542-0800, phil.tanner@fnf.com (the “Escrow Agent”), the sum of Six Hundred Thousand and 00/100 Dollars ($600,000.00) (the “Initial Deposit”) in good funds, either by certified bank or cashier’s check or by federal wire transfer. In addition, in the event Purchaser does not terminate this Agreement pursuant to Section 3.2, Purchaser shall, on or before 5:00 p.m. EST on the last day of the Inspection Period (as such term is defined in Section 3.2 hereof), deposit an additional sum of One Million Two Hundred Thousand and 00/100 Dollars ($1,200,000.00) (the “Additional Deposit” and, together with the Initial Deposit, the “Deposit”) with the Escrow Agent.  The Escrow Agent shall hold the Deposit in an interest-bearing account in accordance with Article X and this Section 1.4.  The Deposit,

 

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together with all interest earned on such sums, are herein referred to collectively as the “Earnest Money.”  All interest accruing on such sums shall become a part of the Earnest Money and shall be distributed as Earnest Money in accordance with the terms of this Agreement.  Time is of the essence for the delivery of Earnest Money under this Agreement.

 

1.5          Independent Consideration.  As consideration for Seller’s agreement to enter into this Agreement, Purchaser shall deliver directly to Seller, within two (2) Business Days following the Effective Date,  the sum of  one hundred dollars ($100.00) (the “Independent Consideration”), which Independent Consideration shall be retained by Seller as Seller’s sole property immediately upon receipt thereof and which shall be nonrefundable to Purchaser in all events; provided, however, that the Independent Consideration shall be applied to the Purchase Price at Closing.

 

ARTICLE II

 

TITLE AND SURVEY

 

2.1          Title Examination; Commitment for Title Insurance.  Promptly after the Effective Date, at Purchaser’s sole cost and expense, Purchaser shall order a title commitment (the “Commitment”) from a title company authorized to conduct business in the State in which the Property is located (the “Title Company”) for the issuance of a pro forma owner’s title insurance policy for the Land and Improvements (the “Pro Forma Policy”).  Any and all matters that are of record as of the date of the Commitment are referred to herein as “Title Matters.”

 

2.2          Survey.  Purchaser may, at Purchaser’s sole cost and expense, employ a surveyor or surveying firm, licensed by the State in which the Property is located, to prepare and deliver to Purchaser a survey of the Property (the “Survey”).  Any and all matters that would be shown on such a survey of the Property, prepared in accordance with applicable ALTA survey standards, are referred to herein as “Survey Matters.”

 

2.3          Title Objections; Cure of Title Objections.

 

(a)           Purchaser shall have until 5:00 P.M. eastern standard time on the last day of the Inspection Period (the “Title Objection Period”) to review the Commitment, the related exception documents and the Survey and to notify Seller, in writing, of such objections as Purchaser may have to matters contained therein (“Title Objections”).  Any Title Matters or Survey Matters to which Purchaser does not object prior to the expiration of the Inspection Period or the Purchaser waives pursuant to Section 2.3(b) shall be permitted exceptions to title (each, a “Permitted Exception”).

 

(b)           If Purchaser notifies Seller of its Title Objections prior to the expiration of the Title Objection Period, Seller shall use reasonable efforts to remove, satisfy or otherwise cure such Title Objections to Purchaser’s reasonable satisfaction prior to the Closing Date.  As used herein, “reasonable efforts” shall not require Seller to expend more than One Hundred and Fifty Thousand and 00/100 Dollars ($150,000.00) to cure such objections, exclusive of Financial Encumbrances (as defined below). Seller shall have until the Closing Date to attempt to remove, satisfy or cure the Title Objections, and for this

 

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purpose Seller shall be entitled to a reasonable adjournment of the Closing if additional time is required, but in no event shall the adjournment exceed the earlier of thirty (30) days or December 31, 2019, unless Purchaser agrees to a further extension.  Seller may, but shall not be obligated to, cure or remove same; however, Seller agrees to consult with the Title Company in order to determine which Title Objections, if any, the Title Company is willing to remove, all with no action required on the part of Seller.  Such Title Objections shall be deemed cured or removed if the Title Company issues a revised Commitment to issue, at Closing, an ALTA Owner’s Policy of Title Insurance in the amount of the Purchase Price in favor of Purchaser, with such Title Objections having been removed as exceptions.  In the event Seller is unable to effect a cure prior to either the original Closing Date, which cure shall include the Title Company agreeing to remove any Title Objection as an Permitted Exception from the Commitment and/or Pro Forma Policy or otherwise insured over by the Title Company, or any date to which the Closing has been extended, Purchaser shall have the following options:  (i) to waive such Title Objections (each of which shall be deemed a Permitted Exception) and proceed to the Closing subject to the Permitted Exceptions and without any reduction of the Purchase Price; or (ii) to terminate this Agreement by sending timely written notice thereof to Seller, and upon delivery of such notice of termination, this Agreement shall terminate and the Earnest Money shall be returned to Purchaser, and thereafter neither party hereto shall have any further rights, obligations or liabilities hereunder except to the extent that any right, obligation or liability set forth herein expressly survives termination of this Agreement.  If Seller notifies Purchaser that Seller will be unable to effect a cure thereof (or if Seller has failed to effectuate such cure on or before the Closing Date, as the same may be extended hereunder), Purchaser shall, within three (3) Business Days after such notice has been received or the Closing Date (as the same may be extended hereunder), whichever is earlier, notify Seller in writing whether Purchaser shall elect to proceed to the Closing under sub-section (i) above or to terminate this Agreement under sub-section (ii) above (and failure to timely deliver such notice shall irrevocably be deemed an election by Purchaser to proceed under sub-section (i) above).  Notwithstanding anything to the contrary contained in this Agreement, any title matter which is a financial encumbrance such as a mortgage, deed of trust, or other debt security voluntarily incurred by Seller, which is outstanding against the Property, or any part thereof (herein such matters are referred to as “Financial Encumbrances”) shall in no event be deemed a Permitted Exception, and Seller hereby covenants to remove all Financial Encumbrances on or before the Closing Date without regard to the definition of “reasonable efforts” above.

 

(c)           For the avoidance of doubt, the Property will not conform with the title provisions of this Agreement unless:

 

(i)            All Buildings and other Improvements, including but not limited to, any driveways, patios, walkways, fences, parking spaces, dumpsters, jersey barriers and all means of access to the Property, are located completely within the boundary lines of the Property and do not encroach upon or under the property of any other person or entity without the benefit of a perpetual appurtenant easement;

 

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(ii)           No building, structure or improvement of any kind belonging to another person or entity encroaches upon or under the Property without the benefit of an appurtenant easement; and

 

(iii)          The Property abuts or has indefeasible access to a public way, duly laid out or accepted as such by the city or town in which the Property is located.

 

2.4          Permitted Exceptions to Title.  Notwithstanding anything contained herein to the contrary, the Land and Improvements shall be subject to the following matters, which shall be deemed to be Permitted Exceptions, and Purchaser shall have no right to object to any of the following:

 

(a)           the rights of tenants, as tenants only, under the Leases and any new Leases entered into between the Effective Date and Closing as permitted under this Agreement;

 

(b)           the lien of all ad valorem real estate taxes and assessments for the current fiscal year not yet due and payable as of the Closing Date, subject to adjustment as herein provided;

 

(c)           local, state and federal laws, ordinances or governmental regulations, including, but not limited to, building and zoning laws, ordinances and regulations, now or hereafter in effect relating to the Land and Improvements; and

 

(d)           Title Matters and Survey Matters that are either (i) not subject to objection by Purchaser hereunder; or (ii) not timely objected to by Purchaser; or (iii) timely objected to by Purchaser, with a subsequent cure, waiver or deemed cure and/or waiver to such objection by Purchaser, all in accordance with Section 2.3 and Section 2.5 hereof.

 

2.5          Pre-Closing “Gap” Title Defects.  Following the Inspection Period, Purchaser may, within two (2) Business Days of receipt of any updates to the Commitment or the Pro Forma Policy, notify Seller in writing of any additional objections to any title matters appearing of record subsequent to the date of the Commitment.  With respect to any objections to title set forth in such notice (“Gap Title Objections”), Seller shall have the same option to remove, satisfy or cure, and Purchaser shall have the same option to accept title subject to such matters or to terminate this Agreement as those which apply to any notice of objections made by Purchaser before the expiration of the Inspection Period.  If Seller is required to remove, satisfy or cure, or elects to attempt to remove, satisfy or cure, as applicable, any such matters, the date for Closing may be extended, if necessary, by a reasonable period of time to effect same, but in no event shall the adjournment exceed the earlier of thirty (30) days or December 31, 2019, unless Purchaser agrees to a further extension.  This Section 2.5 is subject to Section 2.3 hereof.

 

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ARTICLE III

 

INSPECTION PERIOD

 

3.1          Right of Inspection.

 

(a)           Purchaser has been expressly advised by Seller to conduct an independent investigation and inspection the Property (subject to the provisions of this Agreement) utilizing experts as Purchaser deems necessary.  During the term of this Agreement, Purchaser shall have the right to make one or more non-invasive inspections of the Property and to examine, at such place or places at the Land and Improvements, in the offices of the property manager or elsewhere as the same may be located, and certain documents related to the Property in Seller’s possession or control, as more specifically identified on Schedule 3.1 attached hereto and incorporated herein by reference shall be made available to the Purchaser (the “Due Diligence Materials”).  Purchaser acknowledges that certain of such documents may have been prepared by third parties, including the property manager, and may have been prepared prior to the Seller’s ownership of the Property.

 

(b)           Purchaser understands and agrees that any on-site inspections of the Land and Improvements shall be conducted upon at least forty-eight (48) hours’ prior notice to Seller (which may be written or oral, provided such oral notice is given to Tom Lichoulas) and provided that, as to in-unit inspections, the notice period shall be consistent with the notice period Seller must give tenants under the Leases and under applicable state and local law.  Any such inspections shall be conducted in the presence of Seller or its representative and shall occur at reasonable times agreed upon by Seller and Purchaser.  Purchaser may not contact any tenants, vendors or service providers without first obtaining Seller’s prior written consent, not to be unreasonably withheld, conditioned or delayed. Purchaser may contact the property manager or its employees with respect to due diligence matters during the course of Purchaser’s inspections, but Purchaser may not discuss anything related to future employment with such employees until after the expiration of the Inspection Period. Such inspection shall not unreasonably interfere with the use of the Land and Improvements or its tenants nor shall Purchaser’s inspection damage the Land and Improvements in any respect.  Such inspection shall not be invasive in any respect (unless Purchaser obtains Seller’s prior written consent to be granted or denied in Seller’s discretion), and in any event shall be conducted in accordance with standards customarily employed in the industry and in compliance with all governmental laws, rules and regulations.  Following each entry by Purchaser with respect to inspections or tests on the Land and Improvements, Purchaser shall restore the Land and Improvements to the condition it was in prior to any such inspections or tests.  Seller shall cooperate with Purchaser in its due diligence but shall not be obligated to incur any liability or expense in connection therewith.

 

(c)           Purchaser agrees (i) that prior to entering the Land and Improvements to conduct any inspection, Purchaser shall obtain and maintain, or shall cause each of its contractors and agents to maintain (and shall deliver evidence satisfactory to Seller thereof), at no cost or expense to Seller, (i) worker’s compensation/employer’s liability coverage in the minimum statutory amount of $500,000.00, (ii) commercial general

 

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liability insurance from an insurer reasonably acceptable to Seller in the amount of $1,000,000 per occurrence/$2,000,000 aggregate, with combined single limit for personal injury or property damage per occurrence, such policies to name Seller as an additional insured party, which insurance shall provide coverage against any claim for personal injury or property damage caused by Purchaser or its agents, representatives or consultants in connection with any such tests and investigations, and (ii) to keep the Land and Improvements free from all liens and encumbrances.  In addition, if Purchaser chooses to conduct any Phase II (as such term is commonly used in the industry) or other invasive testing of the Land (collectively, “Additional Testing”),  Purchaser must first receive Seller’s prior written consent to be granted or denied in Seller’s discretion (per (b) above).  In order to obtain Seller’s consent to Additional Testing, Purchaser shall notify Seller, in writing, of the intended purpose, scope and location of the same on the Property, to which notice there shall be attached a copy of a written proposal prepared by or for Purchaser with regard to such Additional Testing.  Further, Purchaser shall provide Seller with any other information regarding such Additional Testing which Seller may reasonably request.  Seller shall promptly respond (meaning within three (3) business days) to Purchaser’s request to do such Additional Testing upon its receipt and review of all information relating thereto, as set forth above; provided, however, that Seller’s failure to so respond shall be deemed to be a withholding of its consent to allow such Additional Testing.

 

(d)           Purchaser shall observe, and cause its agents and contractors to observe, all appropriate safety precautions in conducting Purchaser’s inspection of the Property and perform all work and cause its agents and contractors to perform all work, in such a manner so as not to cause any damage to the Property, injury to any person or to the environment, or interference with any ongoing operations at the Property.  Purchaser shall indemnify, defend, and hold Seller and its wholly-owned affiliates, subsidiaries, agents, employees, officers, directors, trustees, or other representatives of Seller (collectively, the “Indemnified Parties”) harmless from and against any losses, damages, expenses, liabilities, claims, demands, and causes of action (together with any legal fees and other expense incurred by any of the Indemnified Parties in connection therewith), resulting directly or indirectly from, or in connection with, any inspection of or other entry upon the Property (including any investigation of the Property necessary for completion of any Purchaser’s environmental report(s) and any entry onto the Property with the authorization of Seller) by Purchaser, or its agents, employees, contractors, or other representatives, including, without limitation, any losses, damages, expenses, liabilities, claims, demands, and causes of action resulting, or alleged to be resulting, from injury or death of persons, or damage to the Property or any other property, or mechanic’s or materialmen’s liens placed against the Property in connection with Purchaser’s inspection thereof.  Purchaser agrees to promptly repair any damage to the Property directly or indirectly caused by any acts of Purchaser, or its agents or contractors, and to restore the Property to the condition that existed prior to Purchaser’s entry. Notwithstanding the foregoing, Purchaser shall have no liability or obligation with respect to any adverse condition which existed at the Property prior to Purchaser’s inspection, except to the extent Purchaser’s inspection exacerbates such adverse condition.  This Section shall survive Closing or other termination of this Agreement and any such claims shall not be limited to the Survival Period.

 

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3.2          Right of Termination.  Seller agrees that if Purchaser determines (such determination to be made in Purchaser’s sole discretion) that it does not desire to acquire the Property for any reason or no reason, Purchaser shall have the right to terminate this Agreement by delivering written notice thereof to Seller and the Escrow Agent prior to the expiration of the time period commencing on the Effective Date and ending at 5 p.m. Eastern Time on forty-five (45) days after the later of: the Effective Date or delivery of the Due Diligence Materials  (the “Inspection Period”).  If Purchaser delivers such notice of termination during the Inspection Period, this Agreement shall terminate and the Earnest Money shall be returned to Purchaser, and neither party shall have any further rights, obligations or liabilities hereunder except to the extent that any right, obligation or liability set forth herein expressly survives termination of this Agreement. If Purchaser fails to deliver Seller a notice of termination prior to the expiration of the Inspection Period, Purchaser shall no longer have any right to terminate this Agreement under this Section 3.2, the Earnest Money shall become non-refundable to Purchaser except as otherwise provided in this Agreement, and (subject to any express rights of termination on the part of Purchaser provided elsewhere in this Agreement) Purchaser shall be bound to proceed to Closing and consummate the transaction contemplated hereby pursuant to the terms of this Agreement.  Time is of the essence with respect to the provisions of this Section 3.2.

 

3.3          Assumed Agreements.  On or before expiration of the Inspection Period, Purchaser shall deliver written notice to Seller identifying which Property Agreements shall be assigned to Purchaser at Closing, and such Property Agreements shall constitute the Assumed Agreements for the purposes of this Agreement.  Seller shall terminate all other Property Agreements prior to Closing. Subject to Seller’s obligation to terminate all Property Agreements other than the Assumed Agreements, Seller shall continue to perform any and all of Seller’s obligations under all Property Agreements through the Closing.  Notwithstanding anything contained herein to the contrary, Seller agrees to cause any existing property management agreements and any leasing listing agreements to be terminated effective as of the Closing Date and Seller shall be solely responsible for any fees or payments due thereunder.

 

ARTICLE IV

 

CLOSING

 

4.1          Time and Place.

 

(a)           Subject to the provisions of Section 2.3(b) and Section 2.5 above and Section 4.1(b) below, the consummation of the transaction contemplated hereby (the “Closing”) shall take place pursuant to an escrow arrangement with the Escrow Agent consistent with the terms of this Agreement on Tuesday, December 10, 2019, unless otherwise agreed in writing by the parties.  The date on which the Closing occurs is hereinafter referred to as the “Closing Date”.

 

(b)           At the Closing, Seller and Purchaser shall perform the obligations set forth in, respectively, Section 4.2 and Section 4.3, the performance of which obligations shall be concurrent conditions.

 

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4.2                               Seller’s Obligations at Closing.  At Closing, Seller shall:

 

(a)                                 deliver to Purchaser Quitclaim Deeds duly executed in the form attached hereto as Exhibit B (collectively, the “Deed”), pursuant to which Seller sells, assigns, transfers and conveys the Land and Improvements to Purchaser;

 

(b)                                 deliver to Purchaser a duly executed warranty bill of sale conveying the Personal Property to Purchaser in the form attached hereto as Exhibit C (the “Bill of Sale”);

 

(c)                                  deliver to Purchaser a duly executed assignment and assumption agreement regarding leases, rents, deposits and escrow accounts, in the form attached hereto as Exhibit D (the “Assignment of Leases”);

 

(d)                                 deliver to Purchaser a duly executed assignment and assumption of the Assumed Agreements and the Intangible Property in the form attached hereto as Exhibit E (the “General Assignment”);

 

(e)                                  deliver to Purchaser a certificate, dated as of the Closing Date and executed on behalf of Seller by a duly authorized officer thereof, confirming that the representations and warranties of Seller contained in this Agreement are true and correct in all material respects as of the Closing Date (with appropriate modifications of those representations and warranties made in Section 5.1 hereof to reflect any changes therein including without limitation any changes resulting from actions under Section 5.4 hereof) or identifying any representation or warranty which is not, or no longer is, true and correct and explaining the state of facts giving rise to the change;

 

(f)                                   deliver to Purchaser such evidence as the Title Company may reasonably require as to the authority of the person or persons executing documents on behalf of Seller;

 

(g)                                  deliver to Purchaser a certificate in the form attached hereto as Exhibit F certifying that Seller is not a “foreign person” as defined in the Federal Foreign Investment in Real Property Tax Act of 1980 and the 1984 Tax Reform Act, together with a corporate excise tax lien waiver on behalf of any corporate seller;

 

(h)                                 deliver to Purchaser such affidavits from Seller as the Title Company may reasonably require in order to omit from its title insurance policy all exceptions for parties in possession other than under the Leases and mechanic’s liens, along with a gap indemnity;

 

(i)                                     deliver to Purchaser a counterpart of a closing statement (the “Closing Statement”) prepared by the Escrow Agent that sets forth the prorations and credits, the Purchase Price and other amounts paid and disbursed in accordance with this Agreement;

 

(j)                                    deliver to Purchaser at the Land:

 

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(i)                                     the Leases, together with the leasing and property files and records which are material in connection with the continued operation, leasing and maintenance of the Land and Improvements, if any, in the possession and control of Seller;

 

(ii)                                  all Assumed Agreements, if any, in the possession and control of Seller;

 

(iii)                               all Licenses and Permits, if any, in the possession and control of Seller;

 

(iv)                              the Books and Records; and

 

(v)                                 all Security Deposits and other tenant funds held in escrow (to the extent such Security Deposits or other funds are not applied against delinquent rents or otherwise as provided in the Leases) as reflected in the Updated Rent Roll.

 

(k)                                 deliver an updated Rent Roll (the “Updated Rent Roll”) for the Property, dated within five (5) days of the Closing Date, certified by Seller as being true and correct, containing the same type of information as provided in the Rent Roll;

 

(l)                                     join with Purchaser to execute a notice, which Purchaser shall send to each tenant under each of the Leases informing such tenant of the sale of the Property and of the assignment to Purchaser of Seller’s interest in, and obligations under, the Leases (including, if applicable any security deposits) and directing that all rent and other sums payable after the Closing under each such Lease shall be paid as set forth in the notice;

 

(m)                             deliver to Purchaser possession and occupancy of the Property (including all keys held by Seller or any of Seller’s agents), subject to the Permitted Exceptions; and

 

(n)                                 deliver such additional documents as shall be reasonably required to consummate the transaction expressly contemplated by this Agreement.

 

4.3                               Purchaser’s Obligations at Closing.  At Closing, Purchaser shall:

 

(a)                                 pay to Seller the full amount of the Purchase Price, as increased or decreased by prorations and adjustments as herein provided, in immediately available wire transferred U.S. funds pursuant to Section 1.3 above, it being agreed that at Closing the Earnest Money shall be delivered to Seller and applied towards payment of the Purchase Price;

 

(b)                                 join Seller in execution of the instruments described in Section 4.2(c), Section 4.2(d), Section 4.2(i), and Section 4.2(l) above;

 

(c)                                  deliver to Seller a certificate, dated as of the Closing Date and executed on behalf of Purchaser by a duly authorized officer thereof, confirming that the representations and warranties of Purchaser contained in this Agreement are true and correct as of the Closing Date;

 

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(d)                                 deliver to Seller such evidence as the Title Company may reasonably require as to the authority of the person or persons executing documents on behalf of Purchaser; and

 

(e)                                  deliver such additional documents as shall be reasonably required to consummate the transaction contemplated by this Agreement.

 

4.4                               Credits and Prorations.

 

(a)                                 The following shall be apportioned between Seller and Purchaser with respect to the Property as of 12:01 a.m. Eastern Time on the day of Closing, as if Purchaser owned the Property during the entire day upon which Closing occurs:

 

(i)                                     rents, as and when actually collected by Seller or its management agent (the term “rents” as used in this Agreement includes all payments due and payable by tenants under the Leases), based on the Updated Rent Roll;

 

(ii)                                  taxes for the current fiscal year (including personal property taxes on the Personal Property) and assessments levied against the Land and Improvements;

 

(iii)                               payments due and any prepayments made under the Assumed Agreements;

 

(iv)                              gas, electricity and other utility charges, such charges to be apportioned at Closing on the basis of the most recent meter reading occurring prior to Closing; and

 

(v)                                 any other operating expenses or other items pertaining to the Property (except insurance) which are customarily prorated between a purchaser and a seller of real property in the area in which the Land is located.

 

(b)                                 Notwithstanding anything contained in the foregoing provisions:

 

(i)                                     At Closing, Purchaser shall credit to the account of Seller all refundable cash or other deposits posted with utility companies serving the Land and Improvements, or, at Seller’s option, Seller shall be entitled to receive and retain such refundable cash and deposits.

 

(ii)                                  At Closing, Purchaser shall receive a credit for the aggregate amount of (a) all Security Deposits, and (b) any other deposits due and payable to Seller pursuant to Leases to the extent the same are actually held by or on behalf of Seller; provided, however, Seller shall be entitled to apply Security Deposits against delinquent rent prior to Closing in the ordinary course of business.

 

(iii)                               Any taxes paid at or prior to Closing on account of the real or personal property for the current fiscal year shall be prorated based upon the amounts actually paid.  If taxes and assessments for the current year have not been paid before Closing, Seller shall be charged at Closing an amount equal to that portion of such taxes

 

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and assessments which relates to the period before Closing and, following the Closing, Purchaser shall pay the taxes and assessments prior to their becoming delinquent.  Any such apportionment made with respect to a tax year for which the tax rate or assessed valuation, or both, have not yet been fixed shall be based upon the tax rate and/or assessed valuation last fixed.  To the extent that the actual taxes and assessments for the current year differ from the amount apportioned at Closing, the parties shall make all necessary adjustments by appropriate payments between themselves promptly following Closing.

 

(iv)                              Seller shall receive the entire advantage of any discounts for the prepayment prior to the Closing of any taxes, water rates or sewer rents.

 

(v)                                 Unpaid and delinquent rent after the Closing Date shall be delivered as follows: (a) if Seller collects any unpaid or delinquent rent after the Closing Date relating to post-Closing periods, Seller shall, within ten (10) days after the receipt thereof, deliver to Purchaser any such rent which Purchaser is entitled to hereunder relating to the Closing Date and any period thereafter, and (b) if Purchaser collects any unpaid or delinquent rent which accrued and was due and payable to Seller prior to the Closing Date, Purchaser shall, within ten (10) days after the receipt thereof, deliver to Seller any such rent which Seller is entitled to hereunder relating to the period prior to the Closing Date.  Seller and Purchaser agree that if, as of the Closing, any rent is in arrears (“Delinquent Rent”) for the calendar month in which the Closing occurs but not for prior periods, then the first rent collected by Purchaser shall be deemed to be attributable to the calendar month in which the Closing occurred and it shall be prorated between Purchaser and Seller as of the Closing.  If Delinquent Rent is in arrears for a period prior to the calendar month in which the Closing occurs, then rents collected by Purchaser shall first be applied to current rent and then to Delinquent Rent.  Purchaser will make a good faith effort after Closing to collect all rents (including Delinquent Rent) in the usual course of Purchaser’s operation of the Property.

 

(c)                                  The provisions of this Section 4.4 shall survive Closing; provided that, notwithstanding anything to the contrary in the foregoing, all adjustments and prorations (except as to errors caused by misrepresentation) shall be deemed final upon the expiration of one hundred eighty (180) days after the Closing Date, except (i) as to the items set forth in Section 4.4(c), and (ii) with respect to property taxes, if the current tax rate or assessed valuation is not available by such date, adjustments with respect to property taxes shall be made within thirty (30) days after the later to become available of the tax rate or assessed valuation.

 

4.5                               Closing Costs.  Purchaser shall pay all costs and expenses associated with its due diligence review, its own counsel fees, any fees and other amounts charged by parties providing debt or equity financing to Purchaser or by counsel to such parties, all title insurance premiums and costs, any survey costs, and one half of the Escrow Agent’s fee.  Seller shall pay its own counsel fees, any real estate transfer taxes, the recording costs for any documents required to clear title in accordance herewith, and one half of the Escrow Agent’s fee.  Any other closing costs shall be allocated as is customary in the jurisdiction where the Property is located.

 

4.6                               Conditions Precedent to Obligation of Purchaser.  The obligation of Purchaser to consummate the transaction hereunder shall be subject to the fulfillment on or before the Closing

 

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Date of all of the following conditions, any or all of which may be waived by Purchaser in its sole discretion:

 

(a)                                 Seller shall have delivered to Purchaser all of the items required to be delivered to Purchaser pursuant to the terms of this Agreement, including but not limited to, those provided for in Section 4.2.

 

(b)                                 All of the representations and warranties of Seller contained in this Agreement were true and correct in all material respects when made and shall be true and correct in all material respects as of the Closing Date.

 

(c)                                  Seller shall have performed and observed, in all material respects, all covenants and agreements of this Agreement to be performed and observed by Seller as of the Closing Date.

 

(d)                                 The Property shall be in the same condition on the Closing Date as it was in on the Effective Date, reasonable wear and tear and damage by minor casualty only excepted.

 

4.7                               Conditions Precedent to Obligation of Seller.  The obligation of Seller to consummate the transaction hereunder shall be subject to the fulfillment on or before the Closing Date of all of the following conditions, any or all of which may be waived by Seller in its sole discretion:

 

(a)                                 Seller shall have received the Purchase Price as adjusted pursuant to and payable in the manner provided for in this Agreement.

 

(b)                                 Purchaser shall have delivered to Seller all of the items required to be delivered to Seller pursuant to the terms of this Agreement, including but not limited to, those provided for in Section 4.3.

 

(c)                                  All of the representations and warranties of Purchaser contained in this Agreement were true and correct in all material respects when made and shall be true and correct in all material respects as of the Closing Date.

 

(d)                                 Purchaser shall have performed and observed, in all material respects, all covenants and agreements of this Agreement to be performed and observed by Purchaser as of the Closing Date.

 

4.8                               Failure of Condition.  If any condition set forth in Section 4.6 is not satisfied or waived on or before the Closing, then, so long as the Purchaser has acted in good faith and with due diligence in performing its obligations hereunder and cooperating with Seller in its performance hereunder, such failure of condition shall constitute a default by Seller, and Purchaser may pursue its remedies under Article VI.  If any condition set forth in Section 4.7 is not satisfied or waived on or before the Closing, then, so long as Seller has acted in good faith and with due diligence in performing its obligations hereunder and cooperating with Seller in its performance hereunder, such failure of condition shall constitute a default by Purchaser, and Seller may pursue its remedies under Article VI.

 

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ARTICLE V

 

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

5.1                               Representations and Warranties of Seller.  Seller hereby makes the following representations and warranties to Purchaser as of the Effective Date:

 

(a)                                 Organization and Authority.  Seller has been duly organized and is validly existing under the laws of the Commonwealth of Massachusetts.  Seller has the full right and authority to enter into this Agreement and to consummate or cause to be consummated the transactions contemplated herein to be made by Seller.  The person signing this Agreement on behalf of Seller is authorized to do so, and this Agreement is a legal and binding obligation of Seller enforceable in accordance with its terms, subject to principles of equity and laws affecting creditors’ rights generally. This Agreement and each document to be executed and delivered by Seller at the Closing (i) are, or at the time of Closing will be, duly authorized, executed and delivered by Seller, (ii) do not, and at the time of Closing will not, violate any provision of any judicial order to which Seller is a party or to which Seller or the Property is subject, and (iii) constitute, or in the case of the Seller Closing Documents will constitute, a valid and legally binding obligation of Seller, enforceable against Seller in accordance with its respective terms.

 

(b)                                 Pending Actions.  Except as set forth on Schedule 5.1(b), there is no action, suit, arbitration, unsatisfied order or judgment, governmental investigation or proceeding pending or, to Seller’s knowledge, threatened against Seller, the Land or the transaction contemplated by this Agreement, which, if adversely determined, could individually or in the aggregate have a material adverse effect on title to the Land and Improvements, would have a material adverse effect on the Improvements being used as apartment rental units for lease to the general public or the operation of the Land and Improvements for such purposes, or of the development of the Vacant Land for apartment rental units for lease to the general public, or which could in any material way interfere with the consummation by Seller of the transaction contemplated by this Agreement.

 

(c)                                  Leases.  Seller is the lessor or landlord or the successor lessor or landlord under the Leases.  Except as set forth in the Rent Roll, there are no other leases or occupancy agreements to which Seller is a party affecting the Land and Improvements. The termination of any Lease prior to Closing by reason of the tenant’s default shall not affect the obligations of Purchaser under this Agreement in any manner or entitle Purchaser to an abatement of or credit against the Purchase Price or give rise to any other claim on the part of Purchaser.  The Rent Roll is and the Updated Rent Roll shall be true, correct and complete in all material respects as of the date of delivery of each.  The Rent Roll identifies all Security Deposits, first and last month’s rent, and any interest accrued thereon.  Except as set forth in the Rent Roll, no tenant is entitled to any rent concession, rent-free occupancy, reduction or abatement of rent for any reason whatsoever, and to Seller’s knowledge, neither Seller nor any tenant is in default thereunder.  There are no brokerage agreements relating to the Leases that are currently in effect.

 

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(d)                                 Condemnation.  Seller has received no written notice of any pending condemnation proceedings relating to the Land and Improvements and, to Seller’s knowledge, no such proceedings are threatened.

 

(e)                                  Employees.  Seller has no employees.

 

(f)                                   Conflicting Agreements.  The execution and delivery of this Agreement, the consummation of the transactions contemplated by this Agreement, and the compliance with the terms of this Agreement will not conflict with, or, with or without notice or the passage of time or both, result in a breach of any of the terms or provisions of, or constitute a default under, any material document, instrument, or agreement to which Seller is a party or by which Seller or any of the Property is bound, which breach or default would prevent, hinder, or impair the consummation of the transactions contemplated by this Agreement.

 

(g)                                  Property Agreements.  Seller has delivered true and complete copies of the Property Agreements to which Seller is a party and all existing amendments thereto to Purchaser. There are no Property Agreements to which Seller is a party except as set forth on Schedule 1.1(e).  To Seller’s knowledge, there is no default by any party under any of the Property Agreements.

 

(h)                                 Licenses and Permits.  To Seller’s knowledge, Seller has delivered true and complete copies of the Licenses and Permits and all renewals and modifications thereto to Purchaser. There are no Licenses and Permits to which Seller is a party except as set forth on Schedule 1.1(f).  To Seller’s knowledge, there is no default by any party under any of the Licenses and Permits.

 

(i)                                     Legal Compliance.  Seller has not received written notice from any governmental entity or instrumentality indicating that either the Land or Improvements violates or fails to comply in any material respect with any governmental or judicial law, order, rule or regulation (provided that compliance with environmental laws is addressed in the following sub-section), which violation or failure to comply has not been cured.

 

(j)                                    Bankruptcy. Seller has not filed or been the subject of any filing of a petition under the federal bankruptcy law or any state insolvency laws or laws for the reorganization of debtors. Seller is not insolvent (within the meaning of any applicable Federal or state law relating to bankruptcy or fraudulent transfers) and will not be rendered insolvent by the transactions contemplated by this Agreement.

 

(k)                                 ERISA. No Employee Benefit Plan within the meaning of Section 3.3 of the Employee Retirement Security Act of 1974 (“ERISA”), sponsored or maintained by Seller, its subsidiaries or affiliates has any interest in the Property, whether (without limiting the foregoing) as an owner, lender, lessee, sublessee, creditor, secured party, assignee or otherwise, nor is the Property subject to any lien under ERISA or the Code.

 

(l)                                     OFAC. Seller is not a person or entity with whom the United States, any Person or entities are restricted or prohibited from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s specially designated and blocked persons list) or under any

 

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statute, executive order (including the September 24, 2001 Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action, and is not and will not engage in any dealings or transactions or be otherwise associated with such persons or entities.

 

(m)                             Taxes and Assessments. Except as disclosed on Schedule 5.1(m), Seller has not filed, and has not retained anyone to file, notices of protests against, or to commence action to review, real property tax assessments against the Property.

 

(n)                                 Insurance. Seller has not received any written notice from any insurance company or board of fire underwriters of any defects or inadequacies in or on the Property or any part or component thereof that would materially and adversely affect the insurability of the Property or cause any material increase in the premiums for insurance for the Property that have not been cured or repaired.

 

(o)                                 Personal Property.  Seller owns the Personal Property, which is not subject to any equipment leases, license agreements or other arrangements, except as may be set forth in the Property Agreements and/or Licenses and Permits.

 

5.2                               Knowledge Defined.  References to the “knowledge” of Seller shall refer only to the actual knowledge of James Lichoulas, III and Tom Lichoulas, who are principals of Sellers, and shall not be construed, by imputation or otherwise, to refer to the knowledge of Seller, its members and investors, or any affiliate of any of them, or to any of their officers, agents, managers, representatives or employees or to impose upon such person any duty to investigate the matter to which such actual knowledge, or the absence thereof, pertains.

 

5.3                               Survival of, and Liability with Respect to, Seller’s Representations and Warranties.

 

(a)                                 The representations and warranties of Seller set forth in Section 5.1, as updated by the certificate of Seller to be delivered to Purchaser at Closing in accordance with Section 4.2(e) hereof, shall survive Closing for a period of nine (9) months (the “Survival Period”).

 

(b)                                 No claim for a breach of any representation or warranty of Seller shall be actionable or payable (i) if the breach in question results from or is based on a condition, state of facts or other matter which was known to Purchaser prior to Closing, (ii) unless the valid claims for all such breaches collectively aggregate more than $25,000 and then only to the extent of such excess, and (iii) unless written notice containing a description of the specific nature of such breach shall have been given by Purchaser to Seller prior to the expiration of the Survival Period and an action shall have been commenced by Purchaser against Seller within thirty (30) days after the termination of the Survival Period.

 

(c)                                  In no event shall (i) Seller’s aggregate liability to Purchaser with respect to (A) any breach of any representation or warranty of Seller in this Agreement (as modified by the certificate to be delivered by Seller at Closing pursuant to Section 4.2(e) hereof), and (B) any other claim whatsoever by Purchaser against Seller in connection with this Agreement or the sale of the Property to Seller exceed the amount of the Cap, or (ii) Seller be liable for consequential, speculative or punitive damages.  As used herein, the term

 

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“Cap” shall mean an amount equal to Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00).

 

(d)                                 In no event shall Seller be liable to Purchaser for, or be deemed to be in default hereunder by reason of, any breach of representation or warranty which results from any change that (i) occurs between the Effective Date and the Closing Date and (ii) is expressly permitted under the terms of this Agreement or is beyond the reasonable control of Seller to prevent; provided, however, that the occurrence of a change which is not permitted hereunder or is beyond the reasonable control of Seller to prevent shall, if materially adverse to Purchaser, constitute the non-fulfillment of the condition set forth in Section 4.6(b).  If, despite changes or other matters described in the certificate delivered pursuant to Section 4.2(e), the Closing occurs, Seller’s representations and warranties set forth in this Agreement shall be deemed to have been modified by all statements made in such certificate.

 

5.4                               Covenants of Seller.  Seller hereby covenants with Purchaser as follows:

 

(a)                                 From the Effective Date hereof until the Closing or earlier termination of this Agreement, Seller shall operate and maintain the Property in a manner generally consistent with the manner in which Seller has operated and maintained the Property prior to the date hereof, in all cases subject to ordinary wear and tear.

 

(b)                                 From and after the expiration of the Inspection Period until the Closing, Seller shall not, without Purchaser’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed, (i) apply any Security Deposits except in the ordinary course of business and consistent with Seller’s past practices, (ii) enter into any new Lease or extensions to an existing Lease on Seller’s current standard form of Lease for a term of more than twelve (12) months and (A) in the case of a new Lease, at a monthly rent that is less than Seller’s current monthly rent offered to tenants (except Seller shall be permitted to offer concessions to such new tenant in the Seller’s ordinary course of business, which concessions shall not include more than one (1) month of free rent), and (B) in the case of a renewal of an existing Lease, at a monthly rent that is less than the monthly rent paid by such tenant for the month immediately prior to such renewal, (iii) terminate any existing Lease except for tenant’s default thereunder and in the ordinary course of business and consistent with Seller’s past practices, or (iv) enter into, modify or amend any Property Agreement, leasing commission agreement, relocation agreement or other similar agreement relating to the Property that is not terminable by Seller, without penalty or premium, upon not more than thirty (30) days prior written notice.

 

(c)                                  Other than with respect to Assumed Agreements, upon written request of Purchaser, as of the Closing Date, Seller shall terminate any Property Agreements, leasing commission agreements, relocation agreements or other similar agreements relating to the Property specified by Purchaser.

 

(d)                                 After the Effective Date, Seller shall not create or voluntarily incur any mortgage, lien, pledge or other encumbrance affecting the Property or any portion thereof other than the Permitted Exceptions.

 

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(e)                                  Seller shall not, without Purchaser’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed, institute any proceedings to determine the assessed value of the Land and Improvements or any real property taxes payable with respect thereto.

 

(f)                                   Until the Closing or earlier termination of this Agreement, Seller shall maintain in effect the current levels of insurance regarding the Property.

 

(g)                                  Seller shall execute all applications and instruments, if any, reasonably required in connection with the transfer of the Licenses and Permits to Purchaser, and shall not amend, modify or terminate any such Licenses and Permits without Purchaser’s prior written consent.  Without Purchaser’s prior written consent, Seller shall not consent to, authorize or approve any change in zoning or similar land use classification affecting the Property or any special assessments affecting the Property.

 

5.5                               Representations, Warranties and Covenants of Purchaser.  Purchaser hereby represents and warrants to Seller, and makes the following covenants:

 

(a)                                 Purchaser has been duly incorporated and is validly existing under the laws of the Commonwealth of Massachusetts.  Purchaser has the full right, power and authority to purchase the Property as provided in this Agreement and to carry out Purchaser’s obligations hereunder, and all requisite action necessary to authorize Purchaser to enter into this Agreement and to carry out its obligations hereunder have been, or by the Closing will have been, taken.  The person signing this Agreement on behalf of Purchaser is authorized to do so. This Agreement and each document to be executed and delivered by Purchaser at the Closing (collectively, the “Purchaser Closing Documents”) (i) are, or at the time of Closing will be, duly authorized, executed and delivered by Purchaser, (ii) do not, and at the time of Closing will not, violate any provision of any judicial order to which Purchaser is a party or to which Purchaser is subject, and (iii) constitute, or in the case of the Purchaser Closing Documents will constitute, a valid and legally binding obligation of Purchaser, enforceable against Purchaser in accordance with its respective terms.

 

(b)                                 There is no action, suit, arbitration, unsatisfied order or judgment, government investigation or proceeding pending against Purchaser which, if adversely determined, could individually or in the aggregate materially interfere with the consummation of the transaction contemplated by this Agreement.

 

(c)                                  All documents and information relating to the Property which are disclosed to or obtained by Buyer during the term of this Agreement, including that described in Schedule 3.1 (the “Property Information”) shall be held by Buyer in strict confidence.  Buyer shall not disclose Property Information to any third party except (a) to Buyer’s investors and/or to its lenders, professional advisors, outside counsel, and employees (“Buyer Parties”), and if so disclosed, then only to the extent necessary to facilitate Buyer’s evaluation of the condition of the Property or its financing of the same on a “need-to-know” basis; (b) a required disclosure to any governmental, administrative, or regulatory authority having or asserting jurisdiction over either Buyer, Seller, or the Property; or (c) to any person entitled to receive such information pursuant to a subpoena or other legal process.;

 

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or (d) to the extent necessary or appropriate to enforce Buyer’s rights under this Agreement.  Notwithstanding the foregoing, Property Information shall not include the following: (i) information which has been or becomes generally available to the public other than as a result of a disclosure by Buyer in violation of this Agreement; or (ii) information which was available to Buyer on a non-confidential basis prior to its disclosure to Buyer by Seller.  Buyer shall inform all Buyer Parties to whom it has disclosed Property Information of the confidential nature of the same, and Buyer shall be responsible in the event that such Buyer Parties fail to treat such Property Information confidentially.  The Buyer’s obligations under this Section 5.5(c) shall survive the Closing and any claims arising hereunder not be limited such that they must be made during the Survival Period.

 

(d)                                 Purchaser is not a person or entity with whom the United States, any Person or entities are restricted or prohibited from doing business under OFAC’s regulations (including those named on OFAC’s specially designated and blocked persons list) or under any statute, executive order (including the September 24, 2001 Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action, and is not and will not engage in any dealings or transactions or be otherwise associated with such persons or entities.

 

5.6                               Survival of, and Liability with Respect to, Purchaser’s Representations and Warranties.  Unless otherwise noted above, the representations and warranties of Purchaser set forth in Section 5.5 shall survive Closing and shall be a continuing representation and warranty for the Survival Period.

 

ARTICLE VI

 

DEFAULT

 

6.1                               Default by Purchaser.  If the Closing does not occur by reason of any default of Purchaser (other than a default by Purchaser caused by Seller’s default), including, without limitation, any failure to timely fund with Escrow Agent any portion of the Earnest Money, Seller shall be entitled, as its sole and exclusive remedy at law or in equity, to terminate this Agreement and receive the Earnest Money as liquidated damages for the breach of this Agreement, it being agreed between the parties hereto that the actual damages to Seller in the event of such breach are impractical to ascertain and the amount of the Earnest Money is a reasonable estimate thereof.  In such event, this Agreement will terminate, and Purchaser will have no further rights or obligations hereunder, except with respect to obligations that expressly survive termination.  Notwithstanding the foregoing, nothing contained herein will limit Seller’s remedies at law, in equity or as herein provided in the event of a breach by Purchaser of any obligation that expressly survives termination hereunder.

 

6.2                               Default by Seller.  If the Closing does not occur by reason of any default of Seller (other than a default by Seller caused by Purchaser’s default), Purchaser shall be entitled, as its sole remedy, either (a) to receive the return of the Earnest Money, plus its out-of-pocket expenses incurred in connection with the transactions contemplated hereby, not to exceed Forty Thousand and 00/100 Dollars ($40,000.00)(which reimbursement shall require Purchaser to provide reasonable backup documentation to support such expenses), which shall operate to terminate this

 

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Agreement and release Seller from any and all liability hereunder, or (b) to enforce specific performance of Seller’s obligation to execute the documents required to convey the Property to Purchaser, it being understood and agreed that the remedy of specific performance shall not be available to enforce any other obligation of Seller hereunder. Purchaser shall be deemed to have elected to terminate this Agreement and receive back the Earnest Money if Purchaser fails to file suit for specific performance against Seller on or before thirty (30) days following the date upon which Closing was to have occurred.  Notwithstanding the foregoing, nothing contained herein will limit Purchaser’s remedies at law, in equity or as herein provided in the event of a breach by Seller of any obligation that expressly survives termination hereunder.

 

ARTICLE VII

 

RISK OF LOSS

 

7.1                               Minor Casualty.  If there is any loss or damage to the Land and Improvements which is not a Major Casualty (as defined in Section 7.3) and that has not been fully restored as of the Closing Date, this Agreement shall remain in full force and effect provided Seller assigns all of Seller’s right, title and interest to any claims and proceeds Seller may have with respect to any casualty insurance policies or condemnation awards relating to the Land and Improvements, plus the amount of any deductibles.

 

7.2                               Condemnation and Major Casualty.  If there is a condemnation of the Land and Improvements or any portion thereof (a “Condemnation”), or an event of casualty which is a Major Casualty, Purchaser may terminate this Agreement by written notice to Seller, in which event the Earnest Money shall be returned to Purchaser and neither party shall have any further obligation hereunder other than with respect to those obligations that expressly survive termination of this Agreement. Within ten (10) Business Days after Seller sends Purchaser written notice of the occurrence of a Condemnation or Major Casualty, Purchaser may elect to proceed with Closing by written notice to Purchaser, in which event Seller shall assign to Purchaser all of Seller’s right, title and interest to any claims and proceeds Seller may have with respect to any condemnation awards, or with respect to the casualty claim, relating to the Land and Improvements, plus the amount of any deductibles related to a casualty. If Purchaser does not provide written notice to Seller of its intention to proceed with Closing within ten (10) Business Days after Seller sends Purchaser written notice of the occurrence of a Condemnation or Major Casualty, this Agreement shall terminate, in which event the Earnest Money shall be returned to Purchaser and neither party shall have any further obligation hereunder other than with respect to those obligations that expressly survive termination of this Agreement.

 

7.3                               Definition of Major Casualty.  For purposes of Section 7.1 and Section 7.2, a “Major Casualty” refers to any casualty that results in more than Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) of damage to the Property.

 

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ARTICLE VIII

 

COMMISSIONS

 

8.1                               Brokerage Commissions.  If the transaction contemplated by this Agreement is consummated, but not otherwise, Seller agrees to pay to CBRE and Hunneman (collectively, the “Broker”) at Closing.  CBRE will be paid a brokerage commission pursuant to a separate written agreement between Seller and Broker.  Hunneman will be paid $50,000.00 by the Seller and $100,000.00 by the Purchaser.  Each party agrees that should any claim be made for brokerage commissions or finder’s fees by any broker or finder other than the Broker by, through or on account of any acts of said party or its representatives, said party will indemnify and hold the other party free and harmless from and against any and all loss, liability, cost, damage and expense in connection therewith.  The provisions of this paragraph shall survive Closing.

 

ARTICLE IX

 

DISCLAIMERS AND WAIVERS

 

9.1                               No Reliance on Documents.  Except as expressly stated herein or in any documents delivered at Closing, Seller makes no representation or warranty as to the truth, accuracy or completeness of any materials, data or information delivered by Seller to Purchaser in connection with the transaction contemplated hereby.  Purchaser acknowledges and agrees that all materials, data and information delivered by Seller to Purchaser in connection with the transaction contemplated hereby are provided to Purchaser as a convenience only and that any reliance on or use of such materials, data or information by Purchaser shall be at the sole risk of Purchaser, except as otherwise expressly stated herein or in any documents delivered at Closing.  Without limiting the generality of the foregoing provisions, Purchaser acknowledges and agrees that (a) any environmental or other report with respect to the Land and Improvements which is delivered by Seller to Purchaser shall be for general informational purposes only, (b) Purchaser shall not have any right to rely on any such report delivered by Seller to Purchaser, but rather will rely on its own inspections and investigations of the Land and Improvements and any reports commissioned by Purchaser with respect thereto, and (c) neither Seller, any affiliate of Seller nor the person or entity which prepared any such report delivered by Seller to Purchaser shall have any liability to Purchaser for any inaccuracy in or omission from any such report.

 

9.2                               DISCLAIMERS.  EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN ANY DOCUMENTS DELIVERED AT CLOSING, IT IS UNDERSTOOD AND AGREED THAT SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESSED OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, ZONING, TAX CONSEQUENCES, LATENT OR PATENT PHYSICAL OR ENVIRONMENTAL CONDITION, UTILITIES, OPERATING HISTORY OR PROJECTIONS, VALUATION, GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE LAND AND IMPROVEMENTS WITH LAWS, THE TRUTH, ACCURACY OR COMPLETENESS OF THE PROPERTY DOCUMENTS OR ANY OTHER INFORMATION PROVIDED BY OR ON

 

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BEHALF OF SELLER TO PURCHASER, OR ANY OTHER MATTER OR THING REGARDING THE PROPERTY.  PURCHASER ACKNOWLEDGES AND AGREES THAT UPON CLOSING, SELLER SHALL SELL AND CONVEY TO PURCHASER AND PURCHASER SHALL ACCEPT THE PROPERTY “AS IS, WHERE IS, WITH ALL FAULTS,” EXCEPT TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE IN THIS AGREEMENT OR IN ANY DOCUMENTS DELIVERED AT CLOSING.  PURCHASER HAS NOT RELIED AND WILL NOT RELY ON, AND SELLER IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESSED OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING SPECIFICALLY, WITHOUT LIMITATION, PROPERTY INFORMATION PACKAGES DISTRIBUTED WITH RESPECT TO THE PROPERTY) MADE OR FURNISHED BY SELLER, THE MANAGER OF THE LAND AND IMPROVEMENTS, OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING, UNLESS SPECIFICALLY SET FORTH IN THIS AGREEMENT OR IN ANY DOCUMENTS DELIVERED AT CLOSING.

 

THE AGREEMENTS AND ACKNOWLEDGMENTS CONTAINED IN THIS SECTION 9.2 CONSTITUTE A CONCLUSIVE ADMISSION THAT BUYER, AS A SOPHISTICATED, KNOWLEDGEABLE INVESTOR IN REAL PROPERTY, SHALL ACQUIRE THE PROPERTY SOLELY UPON ITS OWN JUDGMENT AS TO ANY MATTER GERMANE TO THE PROPERTY OR TO BUYER’S CONTEMPLATED USE OR INVESTMENT IN THE PROPERTY, AND NOT UPON ANY STATEMENT, REPRESENTATION OR WARRANTY BY SELLER OR ANY AFFILIATE, AGENT OR REPRESENTATIVE OF SELLER (INCLUDING SELLER’S BROKER), WHICH IS NOT EXPRESSLY SET FORTH IN THIS AGREEMENT OR ANY DOCUMENT REQUIRED TO BE EXECUTED BY SELLER AND DELIVERED TO BUYER AT CLOSING.

 

NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, AS A SOPHISTICATED AND KNOWLEDGEABLE INVESTOR IN REAL PROPERTY, BUYER IS AWARE THAT MOLD, WATER DAMAGE, FUNGI, BACTERIA, INDOOR AIR POLLUTANTS OR OTHER BIOLOGICAL GROWTH OR GROWTH FACTORS (COLLECTIVELY CALLED “INDOOR AIR POLLUTANTS”) MAY EXIST AT THE PROPERTY AND THAT SUCH INDOOR AIR POLLUTANTS MAY BE UNDISCOVERABLE DURING ROUTINE OR INVASIVE INSPECTIONS, OWNERSHIP, OR OPERATIONS OF THE PROPERTY.  IN EVALUATING ITS PURCHASE OF THE PROPERTY AND DETERMINING THE PURCHASE PRICE, BUYER HAS TAKEN (OR SHALL TAKE) THESE MATTERS INTO ACCOUNT, AND BUYER SHALL ASSUME, AT CLOSING, THE RISK OF ALL INDOOR AIR POLLUTANTS, INCLUDING, WITHOUT LIMITATION, THOSE RESULTING FROM PATENT OR LATENT CONSTRUCTION DEFECTS.

 

PURCHASER REPRESENTS TO SELLER THAT PURCHASER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS OF THE LAND AND IMPROVEMENTS, AS PURCHASER DEEMS NECESSARY TO SATISFY ITSELF AS TO THE CONDITION OF THE PROPERTY AND

 

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THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR TOXIC SUBSTANCES ON OR DISCHARGED FROM THE LAND AND IMPROVEMENTS, AND WILL RELY SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS AGENTS OR EMPLOYEES WITH RESPECT THERETO, OTHER THAN SUCH REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER AS ARE EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN ANY DOCUMENTS DELIVERED AT CLOSING.  UPON CLOSING, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY PURCHASER’S INVESTIGATIONS, AND PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER, SELLER’S AFFILIATED ENTITIES (INCLUDING WITHOUT LIMITATION THE PROPERTY MANAGER) AND THEIR RESPECTIVE OFFICERS, DIRECTORS, SHAREHOLDERS, MEMBERS, PARTNERS, EMPLOYEES AND AGENTS (COLLECTIVELY, “SELLER PARTIES”) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES AND EXPENSES) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER MIGHT HAVE ASSERTED OR ALLEGED AGAINST ANY SELLER PARTY OR PARTIES AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS (INCLUDING, WITHOUT LIMITATION, ANY ENVIRONMENTAL LAWS) AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY.

 

9.3                               Environmental Release.

 

(a)                                 PURCHASER AND PURCHASER’S AFFILIATES FURTHER COVENANT AND AGREE NOT TO SUE SELLER AND THE SELLER PARTIES AND RELEASE SELLER AND THE SELLER PARTIES OF AND FROM AND WAIVE ANY CLAIM OR CAUSE OF ACTION, INCLUDING ANY STRICT LIABILITY CLAIM OR CAUSE OF ACTION, THAT PURCHASER OR PURCHASER’S AFFILIATES MAY HAVE AGAINST SELLER OR THE SELLER PARTIES UNDER ANY HAZARDOUS SUBSTANCES LAWS, NOW EXISTING OR HEREAFTER ENACTED OR PROMULGATED, RELATING TO ENVIRONMENTAL MATTERS OR ENVIRONMENTAL CONDITIONS IN, ON, UNDER, ABOUT OR MIGRATING FROM OR ONTO THE PROPERTY, INCLUDING CERCLA (DEFINED BELOW) AND RCRA (DEFINED BELOW), OR BY VIRTUE OF ANY COMMON LAW RIGHT, NOW EXISTING OR HEREAFTER CREATED, RELATED TO ENVIRONMENTAL CONDITIONS OR HAZARDOUS SUBSTANCES IN, ON, UNDER, ABOUT OR MIGRATING FROM OR ONTO THE PROPERTY, UNLESS SPECIFICALLY SET FORTH IN THIS AGREEMENT OR IN ANY DOCUMENTS DELIVERED AT CLOSING.  THE TERMS AND CONDITIONS OF THIS SECTION WILL EXPRESSLY SURVIVE THE TERMINATION OF THIS AGREEMENT OR THE CLOSING, AS THE CASE MAY BE, AND WILL NOT MERGE WITH THE DEEDS.

 

24

 

(b)                                 As used in this Agreement, “Hazardous Substances” shall mean and include, but shall not be limited to any petroleum product and all hazardous or toxic substances, wastes or substances, any substances which because of their quantitated concentration, chemical, or active, flammable, explosive, infectious or other characteristics, constitute or may reasonably be expected to constitute or contribute to a danger or hazard to public health, safety or welfare or to the environment, including, without limitation, any hazardous or toxic waste or substances which are included under or regulated by any environmental laws, regulations and ordinances, whether federal, state or local and whether now existing or hereafter enacted or promulgated, as such laws may be amended from time to time, including, without limitation the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (commonly known as “CERCLA”), as amended, the Superfund Amendments and Reauthorization Act (commonly known as “SARA”), the Resource Conservation and Recovery Act (commonly known as “RCRA”), the Toxic Substance Control Act, the Hazardous Substances Transportation Act, the Clean Water Act, the Safe Drinking Water Act, the Clean Air Act, or any other federal, state or local legislation or ordinances applicable to the Land and Improvements (collectively, “Hazardous Substances Laws”).

 

9.4                               No Financial Representation.  Seller will cooperate with Purchaser in providing such financial information and income and expense data relating to the Property described in Schedule 3.1 in connection with Purchaser’s due diligence review, both during and after the Inspection Period.  Except as otherwise expressly set forth in this Agreement or in any documents delivered at Closing, Seller makes no representation or warranty that such material is complete or accurate or that Purchaser will achieve similar financial or other results with respect to the operations of the Land and Improvements, it being acknowledged by Purchaser that Seller’s experience with the Property and the operation of the Land and Improvements and allocations of revenues or expenses during Seller’s ownership may be vastly different than Purchaser may be able to attain.  Purchaser acknowledges that it is a sophisticated and experienced purchaser of real estate and further that Purchaser has relied upon its own investigation and inquiry with respect to the operation of the Property and releases Seller from any liability with respect to such historical information.

 

9.5                               Effect and Survival of Disclaimers.  Seller and Purchaser acknowledge that the compensation to be paid to Seller for the Property has been decreased to take into account that the Property is being sold subject to the provisions of this Article IX.  Seller and Purchaser agree that the provisions of this Article IX shall survive Closing or any termination of this Agreement.

 

ARTICLE X

 

ESCROW AGENT

 

10.1                        Payment of Purchase Price.  Escrow Agent, following authorization and instruction by the parties at Closing, shall (a) pay to Seller by federal wire transfer of immediately available funds to an account designated by Seller, the Purchase Price less any costs or other amounts to be paid by Seller at Closing pursuant to this Agreement, (b) pay to the appropriate payees out of the proceeds of Closing payable to Seller all costs and amounts to be paid by Seller at Closing pursuant

 

25

 

to this Agreement and (c) pay all costs and amounts to be paid by Purchaser to the appropriate payees at Closing pursuant to this Agreement.

 

10.2                        Earnest Money.  The Escrow Agent will hold the Earnest Money in escrow in an interest-bearing account of the type generally used by the Escrow Agent for the holding of escrow funds until the earlier of the (a) Closing or (b) termination of this Agreement in accordance with any right hereunder.  If this Agreement is terminated prior to the expiration of the Inspection Period or pursuant to another express right of termination established herein, the Earnest Money will be returned by the Escrow Agent to Purchaser. If the Closing occurs, the Earnest Money will be released to Seller, and Purchaser shall receive a credit against the Purchase Price in the amount of the Earnest Money.  If the Closing (as it may be extended in accordance with the terms of this Agreement) does not occur, and Purchaser has not terminated this Agreement pursuant to an express right of termination established herein or is not otherwise expressly entitled to the return of the Earnest Money as provided herein, the Earnest Money shall be released to Seller. In all other instances, the Escrow Agent shall not release the Earnest Money to either party until the Escrow Agent has been requested by Seller or Purchaser to release the Earnest Money and has given the other party five (5) Business Days to dispute, or consent to, the release of the Earnest Money. Purchaser and Seller will provide their respective tax identification numbers, for purposes of reporting the interest earnings, on separate W-9s to be provided to Escrow Agent.

 

10.3                        Liability.

 

(a)                                 The Escrow Agent shall not be liable to any party for any act or omission, except for bad faith, gross negligence or willful misconduct, and the parties agree to indemnify the Escrow Agent and hold the Escrow Agent harmless from any and all claims, damages, losses or expenses arising in connection herewith. The parties acknowledge that the Escrow Agent is acting solely as stakeholder for their mutual convenience. If the Escrow Agent receives written notice of a dispute between the parties with respect to the Earnest Money, the Escrow Agent shall not be bound to release and deliver the Earnest Money to either party but may either (i) continue to hold the Earnest Money until otherwise directed in a writing signed by all parties hereto or (ii) deposit the Earnest Money with the clerk of any court of competent jurisdiction.  Upon such deposit, the Escrow Agent will be released from all duties and responsibilities hereunder.  The Escrow Agent shall have the right to consult with separate counsel of its own choosing (if it deems such consultation advisable) and shall not be liable for any action taken, suffered or omitted by it in accordance with the advice of such counsel.

 

(b)                                 The Escrow Agent shall not be required to defend any legal proceeding which may be instituted against it with respect to the Earnest Money, the Land and Improvements or the subject matter of this Agreement unless the Escrow Agent is requested to do so by Purchaser or Seller and is indemnified to its satisfaction against the cost and expense of such defense. The Escrow Agent shall not be required to institute legal proceedings of any kind and shall have no responsibility for the genuineness or validity of any document or other item deposited with it or the collectability of any check delivered in connection with this Agreement.  The Escrow Agent shall be fully protected in acting in accordance with any written instructions given to it hereunder and believed by it to have been signed by the proper parties.

 

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10.4                        Designation of Certifying Person.  In order to assure compliance with the requirements of Section 6045 of the Internal Revenue Code of 1986, as amended (the “Code”), and any related reporting requirements of the Code, the parties hereto agree as follows:

 

(a)                                 The Escrow Agent agrees to assume all responsibilities for information reporting required under Section 6045(e) of the Code, and Seller and Purchaser hereby designate the Escrow Agent as the person to be responsible for all information reporting under Section 6045(e) of the Code.

 

(b)                                 Seller and Purchaser each hereby agree:

 

(i)                                     to provide to the Escrow Agent all information and certifications regarding such party as reasonably requested by the Escrow Agent or otherwise required to be provided by a party to the transaction described herein under Section 6045 of the Code; and

 

(ii)                                  to provide to the Escrow Agent such party’s taxpayer identification number and a statement in such form as may be requested by the Escrow Agent, signed under penalties of perjury, stating that the taxpayer identification number supplied by such party to the Escrow Agent is correct.

 

10.5                        Survival.  The provisions of this Article X shall survive Closing or any termination of this Agreement.

 

ARTICLE XI

 

MISCELLANEOUS

 

11.1                        Confidentiality.  Prior to the Closing, Purchaser and its representatives shall hold in strictest confidence all data and information obtained with respect to Seller or its respective business, whether obtained before or after the execution and delivery of this Agreement, and shall not disclose the same to others; provided, however, that it is understood and agreed that Purchaser may disclose such data and information to the employees, consultants, accountants, investors, lenders and attorneys of Purchaser provided that such persons agree in writing to treat such data and information confidentially, and in all events Purchaser shall be responsible for its employees, consultants, accountants and attorneys’ obligation to keep confidential the data and information provided to them pursuant to this Agreement. In the event this Agreement is terminated or Purchaser fails to perform hereunder, Purchaser shall promptly return to Seller any statements, documents, schedules, exhibits or other written information obtained from Seller in connection with this Agreement or the transaction contemplated herein. It is understood and agreed that, with respect to any provision of this Agreement which refers to the termination of this Agreement and the return of the Earnest Money to Purchaser, such Earnest Money shall not be returned to Purchaser unless and until Purchaser has fulfilled its obligation to return to Seller the materials described in the preceding sentence. In the event of a breach or threatened breach by Purchaser or its agents or representatives of this Section 11.1, Seller shall be entitled to an injunction restraining Purchaser or its agents or representatives from disclosing, in whole or in part, such confidential information.  Nothing herein shall be construed as prohibiting Seller from pursuing any other

 

27

 

available remedy at law or in equity for such breach or threatened breach.  The provisions of this Section 11.1 shall survive the termination of this Agreement.

 

11.2                        Public Disclosure.  Prior to the Closing, any release to the public of information with respect to the sale contemplated herein or any matters set forth in this Agreement will be made only in the form approved by Purchaser and Seller.  Seller hereby acknowledges and agrees that the Purchaser is a publicly traded entity and is obligated to make an SEC filing of the transaction following execution of this Agreement, which will include the Purchase Price (the “SEC Filing”).  In addition, the Seller agrees to provide audited financial statements to Purchaser at or after the Closing Date for the Purchaser’s auditors to be able to provide adequate disclosure of the transaction.  Our closing on this transaction is not dependent upon their findings, however, we will need cooperation during that period.

 

11.3                        TIME OF THE ESSENCE.  TIME IS OF THE ESSENCE WITH RESPECT TO ALL TIME PERIODS AND DATES FOR PERFORMANCE SET FORTH HEREIN.

 

11.4                        Discharge of Obligations.  The acceptance of the Deed by Purchaser shall be deemed to be a full performance and discharge of every representation and warranty made by Seller herein and every agreement and obligation on the part of Seller to be performed pursuant to the provisions of this Agreement, except those which are herein specifically stated to survive Closing.

 

11.5                        Assignment.  Purchaser may not assign its rights under this Agreement to anyone other than an Affiliate (as hereinafter defined) without first obtaining Seller’s written approval which may be given or withheld in Seller’s sole discretion.  Subject to the conditions set forth in this Section 11.5, Purchaser may assign its rights under this Agreement to an Affiliate or a qualified intermediary in connection with a Section 1031 transaction (a “Qualified Intermediary”) without the prior written consent of Seller. In the event that Purchaser desires to assign its rights under this Agreement to an Affiliate or Qualified Intermediary, Purchaser shall send written notice to Seller at least five (5) Business Days prior to Closing stating the name and, if applicable, the constituent persons or entities of the Affiliate or Qualified Intermediary and providing the signature block of the Affiliate or Qualified Intermediary. Such assignment shall not become effective until such Affiliate or Qualified Intermediary executes an instrument reasonably satisfactory to Seller in form and substance whereby the Affiliate or Qualified Intermediary expressly assumes each of the obligations of Purchaser under this Agreement, including specifically, without limitation, all obligations concerning the Earnest Money. No assignment shall release or otherwise relieve Purchaser from any obligations hereunder.  For purposes of this Section 11.5, the term “Affiliate” means any Person that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with the Person in question.  For purposes of this definition, “control” means the power to direct the day-to-day management and policies of a Person, directly or indirectly, whether through the ownership of voting securities, status as a general partner or managing member, by contract or otherwise, and “Person” means an individual, or a general partnership, limited partnership, corporation, professional corporation, limited liability company, limited liability partnership, joint venture, trust, business trust, cooperative or association or any other legally-recognized entity.  Notwithstanding anything to the contrary contained herein, Purchaser shall not have the right to assign this Agreement to any assignee which, in the reasonable judgment of Seller, will cause the transaction contemplated hereby or any

 

28

 

party thereto to violate the requirements of ERISA.  In order to enable Seller to make such determination, Purchaser shall cause to be delivered to Seller such information as is requested by Seller with respect to a proposed assignee and the constituent persons or entities of any proposed assignee, including specifically, without limitation, any pension or profit sharing plans related thereto.

 

11.6                        Notices.  Any notice pursuant to this Agreement shall be given in writing by (a) personal delivery, or (b) reputable overnight delivery service with proof of delivery, or (c) United States Mail, postage prepaid, registered or certified mail, return receipt requested, or (d) legible email/PDF transmission sent to the intended addressee at the address set forth below, or to such other address or to the attention of such other person as the addressee shall have designated by written notice sent in accordance herewith, and shall be deemed to have been given either at the time of personal delivery, or, in the case of expedited delivery service or mail, as of the date of first attempted delivery at the address and in the manner provided herein, or, in the case of facsimile transmission, as of the date of the facsimile transmission provided that an original of such facsimile is also sent to the intended addressee by means described in clauses (a), (b) or (c) above, and provided also that delivery after 5:00 p.m. Eastern Time on a Business Day, or on a day that is not a Business Day shall be deemed delivered on the following Business Day.  Unless changed in accordance with the preceding sentence, the addresses for notices given pursuant to this Agreement shall be as follows:

 

	
If to Purchaser:
    	
The   Hamilton Company, Inc.
    
	
 
    	
39   Brighton Avenue
    
	
 
    	
Allston,   MA 02134
    
	
 
    	
Attn:   Jameson Brown, President
    
	
 
    	
Email:   jbrown@thehamiltoncompany.com
    
	
 
    	
 
    
	
with a copy to:
    	
Saul   Ewing Arnstein & Lehr LLP
    
	
 
    	
131   Dartmouth Street, Suite 500
    
	
 
    	
Boston,   MA 02116
    
	
 
    	
Attn:   Sally Michael, Esq.
    
	
 
    	
Email:   sally.michael@saul.com
    
	
 
    	
 
    
	
If to Seller:
    	
James T.   Lichoulas, Jr.,
    
	
 
    	
57 Mill Street
    
	
 
    	
Woburn, MA 01801
    
	
 
    	
 
    
	
with a copy to:
    	
Thomas   W. Tavenner, Jr., Esq.
    
	
 
    	
Dalton &   Finegold, LLP
    
	
 
    	
34   Essex Street
    
	
 
    	
Boston,   Massachusetts 01810
    
	
 
    	
Telephone:   978-269-7700
    
	
 
    	
Email:   ttavenner@dfllp.com
    

 

29

 

	
If to Escrow Agent:
    	
Commonwealth Land Title   Insurance Company
    
	
 
    	
265 Franklin Street,   8th Floor
    
	
 
    	
Boston, MA 02110
    
	
 
    	
Attn: Phil   Tanner, Esq.
    
	
 
    	
Email:   phil.tanner@fnf.com
    

 

11.7                        Modifications.  This Agreement cannot be changed orally, and no executory agreement shall be effective to waive, change, modify or discharge it in whole or in part unless such executory agreement is in writing and is signed by the parties against whom enforcement of any waiver, change, modification or discharge is sought.

 

11.8                        Calculation of Time Periods.  Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday under the laws of the State in which the Land is located, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday or legal holiday.  The final day of any such period shall be deemed to end at 5 p.m. Eastern Time unless otherwise noted herein.

 

11.9                        Successors and Assigns.  The terms and provisions of this Agreement are to apply to and bind the permitted successors and assigns of the parties hereto.

 

11.10                 Entire Agreement.  This Agreement, including the Exhibits and Schedules, contains the entire agreement between the parties pertaining to the subject matter hereof and fully supersedes all prior written or oral agreements and understandings between the parties pertaining to such subject matter.

 

11.11                 Further Assurances.  Each party agrees that it will without further consideration execute and deliver such other documents and take such other action, whether prior or subsequent to Closing, as may be reasonably requested by the other party to consummate more effectively the purposes or subject matter of this Agreement. Without limiting the generality of the foregoing, Purchaser shall, if requested by Seller, execute acknowledgments of receipt with respect to any materials delivered by Seller to Purchaser with respect to the Property.  The provisions of this Section 11.11 shall survive Closing.

 

11.12                 Counterparts.  This Agreement may be executed in counterparts, and all such executed counterparts shall constitute the same agreement.  It shall be necessary to account for only one such counterpart in proving this Agreement.

 

11.13                 Severability.  If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in full force and effect.

 

11.14                 Applicable Law.  THIS AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE SUBSTANTIVE

 

30

 

FEDERAL LAWS OF THE UNITED STATES AND THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS.  SELLER AND PURCHASER HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN MIDDLESEX COUNTY, COMMONWEALTH OF MASSACHUSETTS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND HEREBY IRREVOCABLY AGREE THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN SUCH STATE OR FEDERAL COURT. PURCHASER AND SELLER AGREE THAT THE PROVISIONS OF THIS SECTION 11.14 SHALL SURVIVE THE CLOSING OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT.

 

11.15                 No Third Party Beneficiary.  The provisions of this Agreement and of the documents to be executed and delivered at Closing are and will be for the benefit of Seller and Purchaser only and are not for the benefit of any third party, and accordingly, no third party shall have the right to enforce the provisions of this Agreement or of the documents to be executed and delivered at Closing.

 

11.16                 Exhibits and Schedules.  The following schedules or exhibits attached hereto shall be deemed to be an integral part of this Agreement:

 

	
(a)
    	
Exhibit A
    	
List of Sellers
    
	
(b)
    	
Exhibit B
    	
Form of   Deed
    
	
(c)
    	
Exhibit C
    	
Form of   Bill of Sale
    
	
(d)
    	
Exhibit D
    	
Form of   Assignment and Assumption of Leases
    
	
(e)
    	
Exhibit E
    	
Form of   General Assignment
    
	
(f)
    	
Exhibit F
    	
Form of   Certificate as to Foreign Status
    
	
(g)
    	
Exhibit G
    	
Federal   Lead-Based Paint Disclosure
    
	
(h)
    	
Schedule   1.1(a)
    	
Legal   Description
    
	
(i)
    	
Schedule   1.1(b)
    	
Included   Personal Property Schedule
    
	
(j)
    	
Schedule   1.1(c)
    	
Excluded   Personal Property Schedule
    
	
(k)
    	
Schedule   1.1(d)
    	
Rent Roll
    
	
(l)
    	
Schedule   1.1(e)
    	
Property   Agreements
    
	
(m)
    	
Schedule   1.1(f)
    	
Licenses and   Permits
    
	
(n)
    	
Schedule   3.1
    	
Due Diligence   Materials
    
	
(o)
    	
Schedule   5.1(b)
    	
Pending Actions
    
	
(p)
    	
Schedule   5.1(m)
    	
Real Estate Tax   Assessment Actions
    

 

11.17                 Captions.  The section headings appearing in this Agreement are for convenience of reference only and are not intended, to any extent and for any purpose, to limit or define the text of any section or any subsection hereof.

 

11.18                 Construction.  The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any

 

31

 

ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any exhibits or amendments hereto.

 

11.19                 Termination of Agreement.  It is understood and agreed that if either Purchaser or Seller terminates this Agreement pursuant to a right of termination granted hereunder, such termination shall operate to relieve Seller and Purchaser from all obligations under this Agreement, except for such obligations as are specifically stated herein to survive the termination of this Agreement.

 

11.20                 Limitation of Liability.  Notwithstanding anything to the contrary in this Agreement or in any document delivered by Seller in connection with the consummation of the transaction contemplated hereby, it is expressly understood and agreed that Seller’s liability shall be, and is, limited to, and payable and collectible only out of, Seller’s interest in the Property and the proceeds from the sale of the Property, and no other property or asset of Seller or of any of Seller’s directors, officers, employees, shareholders, members or partners shall be subject to any lien, levy, execution, setoff, or other enforcement procedure for satisfaction of any right or remedy of Purchaser in connection with the transaction contemplated hereby.

 

11.21                 Federal Lead-Based Paint Disclosure.  Pursuant to 42 U.S.C. § 4852d, Seller has provided to Purchaser the disclosure attached hereto as Exhibit G.

 

11.22                 1031 Exchange.  Purchaser and Seller each agree to cooperate with the other in effectuating one or more tax-free exchanges under §1031 of the Internal Revenue Code (“Section 1031”) with respect to the sale of the Property hereunder, provided that any such cooperation, including the execution and delivery of any document reasonably requested and which is necessary to effect any or all such tax-free exchanges, shall be without cost, expense or additional liability to the party whose participation is requested.  In connection therewith, to the extent that Section 1031 requires the same, Purchaser and/or Seller, as applicable, consents to an assignment of this Agreement to one or more qualified intermediaries provided that Seller and/or Purchaser, as applicable, remains liable on its obligations hereunder, including, without limitation, the warranties and representations made pursuant to and as limited by the terms and conditions of this Agreement.  In addition, and as a condition to any such assignment, the assigning party shall provide written notice of any such assignment at least five (5) Business Days prior to the effective date thereof together with a copy of the fully executed assignment instrument.  No assignment by Seller or by Purchaser pursuant to this Section 11.22 shall relieve any party of its obligations hereunder.  In addition, nothing contained in this Section 11.22 is intended to confer any adjournment rights that are not otherwise expressly provided in this Agreement.

 

[The remainder of this page is intentionally left blank.]

 

32

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Purchase and Sale Agreement as of the Effective Date.

 

	
 
    	
SELLER:
    
	
 
    	
 
    
	
 
    	
[ADD   SIGNATURE BLOCKS OF SELLERS]
    
	
 
    	
 
    
	
 
    	
PURCHASER:
    
	
 
    	
 
    
	
 
    	
THE HAMILTON   COMPANY, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Jameson Brown
    
	
 
    	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
As to Section 1.4   and Article X only:
    
	
 
    	
 
    
	
 
    	
ESCROW AGENT:
    
	
 
    	
 
    
	
 
    	
COMMONWEALTH LAND TITLE   INSURANCE COMPANY
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Philip A. Tanner
    
	
 
    	
 
    	
Title:
    	
Underwriting Counsel
    

 

[Signature Page #1]

 

 

Exhibit A

 

LIST OF SELLERS

 

1.                                      Ninety-Three Realty Limited Partnership, a Massachusetts limited partnership (Country Club Garden Apartments, 50-82 Mill Street)

 

2.                                      James T. Lichoulas, Jr., as Trustee of 93 Realty Holding Revocable Trust — 53 Mill Street, under Declaration of Trust dated February 2, 2011 (53 Mill Street)

 

3.                                      James T. Lichoulas, Jr. and James T. Lichoulas, III, as Trustees of 93 Realty Holding Revocable Trust — 59 Mill Street, under Declaration of Trust dated February 2,  2011 (59 Mill Street)

 

4.                                      James T. Lichoulas, Jr. and James T. Lichoulas, III, as Trustees of 93 Realty Holding Revocable Trust — 61 Mill Street, under Declaration of Trust dated January 12,  2011 (61 Mill Street)

 

5.                                      93 Realty Holding Co., Inc., a Massachusetts corporation (43 Rear Mill Street and Lots 1 and 5 on Woburn Zoning Map 39, Block 1)

 

6.                                      Mill Street Property Group LLC, a Massachusetts limited liability company

 

A-1

 

EXHIBIT B

 

FORM OF DEED

 

B-1

 

Exhibit C

 

FORM OF
 BILL OF SALE

 

                                   , a                    (“Assignor”), in accordance with the Purchase and Sale Agreement dated September   , 2019 (as the same may have been amended to date, the “Agreement”) by and between Assignor and           , a                (“Assignee”), and in consideration of the sum of Ten Dollars ($10.00) (the sufficiency and receipt of which are hereby acknowledged), does hereby grant, bargain, sell, convey, assign, transfer, set over and deliver (collectively, “assign”) unto Assignee, all of Assignor’s right, title and interest in and to all of the tangible personal property owned by Seller and located on the real property commonly known as Country Club Garden Apartments (collectively, the “Personal Property”) specifically including, but not limited to appliances, furniture, carpeting, draperies and curtains, tools and supplies, and other items of personal property (excluding cash and accounts receivable) used exclusively in connection with the operation of the Land and the Improvements, but specifically excluding (i) any proprietary or confidential materials, (ii) any property that serves or is used in connection with any property other than the Land and the Improvements, (iii) any property owned by tenants or parties other than Assignor, (iv) any property leased by Assignor and (v) any Excluded Personal Property.  As used herein, the terms “Land,” “Improvements” and “Excluded Personal Property” shall have the meanings ascribed thereto in the Agreement.

 

TO HAVE AND TO HOLD the Personal Property unto Assignee and Assignee’s heirs, legal representatives, successors and assigns forever.

 

THE PERSONAL PROPERTY IS BEING ASSIGNED “AS IS”, “WHERE IS”, AND “WITH ALL FAULTS” AS OF THE DATE OF THIS BILL OF SALE, WITHOUT ANY REPRESENTATION OR WARRANTY, EXCEPT THAT SELLER OWNS THE PERSONAL PROPERTY FREE AND CLEAR OF ANY LIENS AND/OR ENCUMBRANCES, WHATSOEVER AS TO ITS CONDITION, FITNESS FOR ANY PARTICULAR PURPOSE, MERCHANTABILITY OR ANY OTHER WARRANTY, EXPRESS OR IMPLIED.

 

IN WITNESS WHEREOF, Assignor has executed and delivered this Bill of Sale as of the     day of             , 2019.

 

	
 
    	
ASSIGNOR:
    
	
 
    	
 
    
	
 
    	
                                 ,   a                                 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

C-1

 

EXHIBIT D

 

FORM OF
 ASSIGNMENT AND ASSUMPTION OF LEASES

 

This Assignment and Assumption of Leases (the “Assignment”) is made as of the       day of             , 2019 by and between                  , a                    (the “Assignor”), and                 , a                 (the “Assignee”).

 

WHEREAS, Assignor is conveying to Assignee by deed of even date herewith title to a certain parcels of land, together with the improvements thereon, situated at and commonly known as Country Club Garden Apartments (the “Property”) pursuant to a Purchase and Sale Agreement dated September   , 2019, between Assignor and Assignee, as the same may have been amended (the “Purchase Agreement”); and

 

WHEREAS, there are presently certain outstanding leases for portions of the Property, which leases, as the same may have been amended, are listed on Exhibit A attached hereto (collectively, the “Leases”); and

 

WHEREAS, in connection with the contemporaneous conveyance of the Property by Assignor to Assignee, Assignor desires to assign its interest in the Leases to Assignee, and Assignee desires to accept such assignment.

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor hereby assigns to Assignee, and Assignee hereby accepts from Assignor, effective as of the date of this Assignment, all of Assignor’s right, title and interest in, to and under the Leases, including any and all security deposits and all prepaid rents and interest accrued thereon shown on Exhibit A.

 

By execution of this Assignment, Assignee assumes and agrees to perform all of the covenants, agreements and obligations of the landlord under the Leases binding on Assignor, as such shall arise or accrue on and after the date of this Assignment.  Without limiting the generality of the preceding sentence, Assignee acknowledges the receipt of all security deposits and all prepaid rents and interest accrued thereon as set forth on Exhibit A and agrees to apply same in accordance with the terms of the Leases.  Assignee hereby agrees to indemnify, hold harmless and defend Assignor from and against any and all obligations, liabilities, costs and claims (including reasonable attorney’s fees) arising as a result of or with respect to any default of any of landlord’s obligations under the Leases occurring on and after the date of this Assignment.

 

Assignor agrees to indemnify, hold harmless and defend Assignee from and against any and all obligations, liabilities, costs and claims (including reasonable attorney’s fees) arising as a result of or with respect to any default of landlord’s obligations under the Leases occurring prior to the date of this Assignment.

 

Assignor acknowledges and agrees that no general or limited partner, officer, trustee, beneficiary, director, member, manager, equity owner, employee or representative of Assignee shall ever have any personal liability under this Assignment.  Assignee acknowledges and agrees

 

D-1

 

that no general or limited partner, officer, trustee, director, member, manager, equity owner, employee or representative of Assignor shall ever have any personal liability under this Assignment.

 

ASSIGNEE ACKNOWLEDGES THAT IT HAS INSPECTED THE LEASES AND THAT THIS ASSIGNMENT IS MADE BY ASSIGNOR AND ACCEPTED BY ASSIGNEE WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, AND WITHOUT RECOURSE AGAINST ASSIGNOR, EXCEPT AS OTHERWISE EXPRESSLY MAY BE SET FORTH HEREIN OR IN THE PURCHASE AGREEMENT.

 

This Assignment may be executed in multiple counterparts and duplicate originals, all of which shall constitute one and the same document.

 

IN WITNESS WHEREOF, Assignor has executed this Assignment as a sealed instrument as of the date first above written.

 

	
 
    	
ASSIGNOR:
    
	
 
    	
 
    
	
 
    	
                                 ,   a                                 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
ASSIGNEE:
    
	
 
    	
 
    
	
 
    	
                                 ,   a                                 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

D-2

 

Exhibit E

 

FORM OF
 GENERAL ASSIGNMENT

 

THIS GENERAL ASSIGNMENT, made and entered into this      day of            , 2019 (this “Assignment”), between                  , a                      (“Assignor”) and                   , a                   (“Assignee”).

 

RECITALS:

 

WHEREAS, Assignor is conveying to Assignee by deed of even date herewith title to certain parcels of land, together with the improvements thereon (the “Property”) pursuant to a Purchase and Sale Agreement dated September   , 2019, between Assignor and Assignee, as such may have been amended (the “Purchase Agreement”; all initially capitalized terms used but not defined herein shall have the definitions ascribed thereto in the Purchase Agreement); and

 

WHEREAS, pursuant to the Purchase Agreement, Assignor has agreed to assign all of its ownership interest in and rights and obligations with respect to the Assumed Agreements, Licenses and Permits, the Books and Records and the Other Intangibles to Assignee, and Assignee has agreed to assume same;

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee hereby agree as follows:

 

Assignor hereby assigns to Assignee all of Assignor’s right, title and interest in, to and under the Assumed Agreements, Licenses and Permits, the Books and Records and the Other Intangibles (collectively, the “Property Matters”). Assignee accepts the Property Matters and assumes and indemnifies Assignor from the obligations and liabilities thereunder that accrue on and after the date hereof.  Assignor assumes and indemnifies Assignee from all obligations for the Property Matters that accrue prior to the date hereof.  Notwithstanding the foregoing, the indemnification obligations of the parties set forth herein are subject to the express provisions of the Purchase Agreement.

 

TO HAVE AND TO HOLD unto Assignee and its successors and assigns to its and their own use and benefit forever.

 

This Assignment is made by Assignor without recourse and without any expressed or implied representation or warranty whatsoever, except as may be expressly set forth herein or in the Purchase Agreement.

 

This Assignment inures to the benefit of the parties hereto and their respective successors and assigns.  This Assignment may be executed in multiple counterparts and duplicate originals, all of which shall constitute one and the same document.

 

E-1

 

IN WITNESS WHEREOF, Assignor and Assignee have executed this General Assignment as of the date first above written.

 

	
 
    	
ASSIGNOR:
    
	
 
    	
 
    
	
 
    	
                                 ,   a                                 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
ASSIGNEE:
    
	
 
    	
 
    
	
 
    	
                                 ,   a                                 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

E-2

 

EXHIBIT F

 

FORM OF
 CERTIFICATE AS TO FOREIGN STATUS

 

Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person.  To inform                                      , a             (“Transferee”), that withholding of tax is not required upon the disposition of a U.S. real property interest by [                ] (“Transferor”), the undersigned hereby certifies the following on behalf of Transferor:

 

1.             Transferor is a                  and is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations).

 

2.             Transferor’s U.S. employer identification number is                   .

 

3.             Transferor’s address is                    .

 

4.             Transferor is not a disregarded entity for federal tax purposes.

 

Transferor understands that this certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement made herein is punishable by fine, imprisonment, or both.  Transferor understands that Transferee is relying on this certification in determining whether withholding is required upon transfer of real property by Transferor.

 

Under penalty of perjury, Transferor and the individual executing on its behalf declare that the statements made in this Certificate as to Foreign Status are true, correct and complete.

 

EXECUTED on                  , 2019.

 

SELLER:

 

[ADD SIGNATURE BLOCKS OF APPLICABLE SELLERS]

 

F-1

 

EXHIBIT G
 FEDERAL LEAD-BASED PAINT DISCLOSURE

 

EVERY PURCHASER OF ANY INTEREST IN RESIDENTIAL REAL PROPERTY ON WHICH A RESIDENTIAL DWELLING WAS BUILT PRIOR TO 1978 IS NOTIFIED THAT SUCH PROPERTY MAY PRESENT EXPOSURE TO LEAD FROM LEAD-BASED PAINT THAT MAY PLACE YOUNG CHILDREN AT RISK OF DEVELOPING LEAD POISONING.  LEAD POISONING IN YOUNG CHILDREN MAY PRODUCE PERMANENT NEUROLOGICAL DAMAGE, INCLUDING LEARNING DISABILITIES, REDUCED INTELLIGENCE QUOTIENT, BEHAVIORAL PROBLEMS, AND IMPAIRED MEMORY.  LEAD POISONING ALSO POSES A PARTICULAR RISK TO PREGNANT WOMEN.  THE SELLER OF ANY INTEREST IN RESIDENTIAL REAL PROPERTY IS REQUIRED TO PROVIDE THE PURCHASER WITH ANY INFORMATION ON LEAD-BASED PAINT HAZARDS FROM RISK ASSESSMENTS OR INSPECTIONS IN THE SELLER’S POSSESSION AND NOTIFY THE PURCHASER OF ANY KNOWN LEAD-BASED PAINT HAZARDS.  A RISK ASSESSMENT OR INSPECTION FOR POSSIBLE LEAD-BASED PAINT HAZARDS IS RECOMMENDED PRIOR TO PURCHASE.

 

By its execution of the Agreement to which this Exhibit F is attached, Purchaser acknowledges that (a) it has read and understands the foregoing Lead Warning Statement, (b) it has reviewed, or during the Inspection Period will review, any documents concerning lead-based paint or lead-based paint hazards located on the Property or otherwise provided for review by Seller, and (c) it has independently obtained a lead hazard information pamphlet in the form prescribed by the Environmental Protection Agency under Section 406 of the Toxic Substances Control Act.  Purchaser shall conduct such studies and tests for lead-based paint during the Inspection Period as Purchaser deems appropriate.

 

G-1

 

SCHEDULE 1.1(A)

 

LEGAL DESCRIPTION

 

SCHEDULE 1.1(B) INCLUDED IN  PERSONAL PROPERTY SCHEDULE

 

 

SCHEDULE 1.1(C)

 

EXCLUDED PERSONAL PROPERTY SCHEDULE

 

 

SCHEDULE 1.1(D)

 

RENT ROLL

 

 

SCHEDULE 1.1(E)

 

PROPERTY AGREEMENTS

 

 

SCHEDULE 1.1(F)

 

LICENSES AND PERMITS

 

 

SCHEDULE 3.1

 

DUE DILIGENCE MATERIALS

 

The materials listed below will be provided only to the extent in Seller’s possession or control:

 

	
1)
    	
Rent Roll for most recent completed calendar month
    
	
 
    	
 
    
	
2)
    	
Current/Aged delinquency report
    
	
 
    	
 
    
	
3)
    	
Tenant Deposit report
    
	
 
    	
 
    
	
4)
    	
Copies of all Property Agreements
    
	
 
    	
 
    
	
5)
    	
Copies of all Leases and rental applications
    
	
 
    	
 
    
	
6)
    	
Most recent environmental Phase I report
    
	
 
    	
 
    
	
7)
    	
Most recent title insurance policy
    
	
 
    	
 
    
	
8)
    	
Certificate evidencing current casualty, property and other insurance   coverages
    
	
 
    	
 
    
	
9)
    	
Five (5) years of loss run reports for general liability and   property damage insurance
    
	
 
    	
 
    
	
10)
    	
Most recent survey, plans, or specifications
    
	
 
    	
 
    
	
11)
    	
All licenses, permits, or approvals
    
	
 
    	
 
    
	
12)
    	
Utility Bills for most recent six (6) months
    
	
 
    	
 
    
	
13)
    	
2018 and 2019 (stub period) Operating Statements
    
	
 
    	
 
    
	
14)
    	
Warranties for services and materials provided to the Property
    
	
 
    	
 
    
	
15)
    	
Other general records relating to the income and expenses of the   Property
    

 

 

SCHEDULE 5.1(B)

 

PENDING ACTIONS

 

None

 

 

SCHEDULE 5.1(M)

 

REAL PROPERTY TAX ASSESSMENT ACTIONS

 

NoneExhibit 4.1

  

  Execution Version 

   

  

  

    

  

  
    

  
    

    

    INDENTURE

     

    

     

    

    between

     

    

     

    

    VERIZON OWNER TRUST 2019-C,

      as Issuer

     

    

     

    

    and

     

    

     

    

    U.S. BANK NATIONAL ASSOCIATION,

      as Indenture Trustee and Note Paying Agent

     

    

     

    

    Dated as of October 8, 2019

     

    

    

    

    

    

    

    
      

     

    
      
        

    

    
    
      	
              ARTICLE I

            	
              USAGE AND DEFINITIONS

            	
              1

            
	
              Section 1.1

            	
              Usage and Definitions

            	
              1

            
	
              Section 1.2

            	
              Incorporation by Reference of Trust Indenture Act

            	
              1

            
	
              ARTICLE II

            	
              THE NOTES

            	
              2

            
	
              Section 2.1

            	
              Form of Notes

            	
              2

            
	
              Section 2.2

            	
              Execution, Authentication and Delivery

            	
              2

            
	
              Section 2.3

            	
              Tax Treatment

            	
              3

            
	
              Section 2.4

            	
              Note Register

            	
              3

            
	
              Section 2.5

            	
              Registration of Transfer and Exchange

            	
              3

            
	
              Section 2.6

            	
              [Reserved]

            	
              4

            
	
              Section 2.7

            	
              Mutilated, Destroyed, Lost or Stolen Notes

            	
              4

            
	
              Section 2.8

            	
              Persons Deemed Owners

            	
              5

            
	
              Section 2.9

            	
              Payments on Notes

            	
              5

            
	
              Section 2.10

            	
              Cancellation of Notes

            	
              7

            
	
              Section 2.11

            	
              Release of Collateral

            	
              7

            
	
              Section 2.12

            	
              Book-Entry Notes

            	
              7

            
	
              Section 2.13

            	
              Definitive Notes

            	
              8

            
	
              Section 2.14

            	
              Authenticating Agents

            	
              8

            
	
              Section 2.15

            	
              Note Paying Agents

            	
              8

            
	
              Section 2.16

            	
              Effect of Benchmark Transition Event

            	
              9

            
	
              ARTICLE III

            	
              COVENANTS, REPRESENTATIONS AND WARRANTIES

            	
              10

            
	
              Section 3.1

            	
              Payment of Principal, Interest and Other Amounts

            	
              10

            
	
              Section 3.2

            	
              Maintenance of Office or Agency

            	
              10

            
	
              Section 3.3

            	
              Money for Payments To Be Held in Trust

            	
              10

            
	
              Section 3.4

            	
              Existence

            	
              12

            
	
              Section 3.5

            	
              Protection of Collateral

            	
              12

            
	
              Section 3.6

            	
              Performance of Obligations

            	
              13

            
	
              Section 3.7

            	
              Negative Covenants

            	
              13

            
	
              Section 3.8

            	
              Opinions on Collateral

            	
              14

            
	
              Section 3.9

            	
              Annual Certificate of Compliance

            	
              15

            
	
              Section 3.10

            	
              Merger and Consolidation; Transfer of Assets

            	
              15

            
	
              Section 3.11

            	
              Successor or Transferee

            	
              16

            
	
              Section 3.12

            	
              No Other Activities

            	
              16

            

      

      

      
        ii

        
          

      

      	
              Section 3.13

            	
              Further Acts and Documents

            	
              16

            
	
              Section 3.14

            	
              Restricted Payments

            	
              16

            
	
              Section 3.15

            	
              Notice of Events of Default

            	
              16

            
	
              Section 3.16

            	
              Review of Issuer’s Records

            	
              16

            
	
              Section 3.17

            	
              Issuer’s Representations and Warranties

            	
              17

            
	
              Section 3.18

            	
              Issuer’s Representations and Warranties About Security Interest

            	
              18

            
	
              ARTICLE IV

            	
              SATISFACTION AND DISCHARGE

            	
              19

            
	
              Section 4.1

            	
              Satisfaction and Discharge of Indenture

            	
              19

            
	
              ARTICLE V

            	
              EVENTS OF DEFAULT; REMEDIES

            	
              20

            
	
              Section 5.1

            	
              Events of Default

            	
              20

            
	
              Section 5.2

            	
              Acceleration of Maturity; Rescission

            	
              21

            
	
              Section 5.3

            	
              Collection of Indebtedness by Indenture Trustee

            	
              21

            
	
              Section 5.4

            	
              Trustee May File Proofs of Claim

            	
              22

            
	
              Section 5.5

            	
              Enforcement of Claims Without Possession of Notes

            	
              22

            
	
              Section 5.6

            	
              Remedies; Priorities

            	
              23

            
	
              Section 5.7

            	
              Optional Preservation of Collateral

            	
              24

            
	
              Section 5.8

            	
              Limitation on Suits

            	
              24

            
	
              Section 5.9

            	
              Unconditional Rights to Receive Principal and Interest

            	
              25

            
	
              Section 5.10

            	
              Restoration of Rights and Remedies

            	
              25

            
	
              Section 5.11

            	
              Rights and Remedies Cumulative

            	
              25

            
	
              Section 5.12

            	
              Delay or Omission Not a Waiver

            	
              25

            
	
              Section 5.13

            	
              Control by Noteholders

            	
              26

            
	
              Section 5.14

            	
              Waiver of Defaults and Events of Default

            	
              26

            
	
              Section 5.15

            	
              Agreement to Pay Costs

            	
              26

            
	
              Section 5.16

            	
              Waiver of Stay or Extension Laws

            	
              27

            
	
              Section 5.17

            	
              Performance and Enforcement of Obligations

            	
              27

            
	
              ARTICLE VI

            	
              INDENTURE TRUSTEE

            	
              27

            
	
              Section 6.1

            	
              Indenture Trustee’s Obligations

            	
              27

            
	
              Section 6.2

            	
              Indenture Trustee’s Rights

            	
              31

            
	
              Section 6.3

            	
              Indenture Trustee’s Individual Rights

            	
              32

            
	
              Section 6.4

            	
              Indenture Trustee’s Disclaimer

            	
              32

            
	
              Section 6.5

            	
              Notice of Defaults and Notice of Payment Defaults

            	
              32

            
	
              Section 6.6

            	
              Reports by Indenture Trustee

            	
              33

            

      

      

      
        iii

        
          

      

      	
              Section 6.7

            	
              Compensation and Indemnity

            	
              34

            
	
              Section 6.8

            	
              Resignation or Removal of Indenture Trustee

            	
              35

            
	
              Section 6.9

            	
              Merger or Consolidation; Transfer of Assets

            	
              36

            
	
              Section 6.10

            	
              Appointment of Separate Trustee or Co-Trustee

            	
              36

            
	
              Section 6.11

            	
              Eligibility

            	
              37

            
	
              Section 6.12

            	
              Inspections of Indenture Trustee

            	
              38

            
	
              Section 6.13

            	
              Indenture Trustee’s Representations and Warranties

            	
              38

            
	
              Section 6.14

            	
              Reporting of Receivables Repurchase Demands

            	
              39

            
	
              Section 6.15

            	
              Preferential Collection of Claims Against the Issuer

            	
              39

            
	
              ARTICLE VII

            	
              NOTEHOLDER COMMUNICATIONS AND REPORTS

            	
              39

            
	
              Section 7.1

            	
              Noteholder Communications

            	
              39

            
	
              Section 7.2

            	
              Reports by Issuer

            	
              40

            
	
              Section 7.3

            	
              Reports by Indenture Trustee

            	
              41

            
	
              ARTICLE VIII

            	
              ACCOUNTS, DISTRIBUTIONS AND RELEASES

            	
              41

            
	
              Section 8.1

            	
              Collection of Funds

            	
              41

            
	
              Section 8.2

            	
              Bank Accounts; Distributions

            	
              41

            
	
              Section 8.3

            	
              Bank Accounts

            	
              45

            
	
              Section 8.4

            	
              Release of Collateral

            	
              46

            
	
              ARTICLE IX

            	
              AMENDMENTS

            	
              47

            
	
              Section 9.1

            	
              Amendments Without Consent of Noteholders or Certificateholders

            	
              47

            
	
              Section 9.2

            	
              Amendments with Consent of Controlling Class

            	
              48

            
	
              Section 9.3

            	
              Execution of Amendments

            	
              49

            
	
              Section 9.4

            	
              Effect of Amendment

            	
              49

            
	
              Section 9.5

            	
              Reference in Notes to Supplemental Indentures

            	
              49

            
	
              Section 9.6

            	
              Consent of Cap Counterparty

            	
              49

            
	
              Section 9.7

            	
              Conformity with TIA

            	
              49

            
	
              ARTICLE X

            	
              REDEMPTION OF NOTES

            	
              49

            
	
              Section 10.1

            	
              Redemption

            	
              49

            
	
              ARTICLE XI

            	
              OTHER AGREEMENTS

            	
              51

            
	
              Section 11.1

            	
              No Petition

            	
              51

            
	
              Section 11.2

            	
              [Reserved]

            	
              51

            
	
              Section 11.3

            	
              Issuer Orders; Certificates and Opinions

            	
              51

            

      

      

      
        iv

        
          

      

      
      	
              Section 11.4

            	
              Acts of Noteholders

            	
              52

            
	
              Section 11.5

            	
              Issuer Obligation

            	
              53

            
	
              Section 11.6

            	
              Conflict with Trust Indenture Act

            	
              53

            
	
              ARTICLE XII

            	
              MISCELLANEOUS

            	
              53

            
	
              Section 12.1

            	
              Benefits of Indenture; Third-Party Beneficiaries

            	
              53

            
	
              Section 12.2

            	
              Notices

            	
              53

            
	
              Section 12.3

            	
              GOVERNING LAW

            	
              54

            
	
              Section 12.4

            	
              Submission to Jurisdiction

            	
              54

            
	
              Section 12.5

            	
              WAIVER OF JURY TRIAL

            	
              55

            
	
              Section 12.6

            	
              No Waiver; Remedies

            	
              55

            
	
              Section 12.7

            	
              Severability

            	
              55

            
	
              Section 12.8

            	
              Headings

            	
              55

            
	
              Section 12.9

            	
              Counterparts

            	
              55

            
	
              Section 12.10

            	
              Customer Identification Program

            	
              55

            
	
              Section 12.11

            	
              Limitation of Rights of the Cap Counterparty

            	
              55

            
	
              Section 12.12

            	
              Intent of the Parties; Reasonableness

            	
              55

            
	
              ARTICLE XIII

            	
              THE CAP AGREEMENT

            	
              56

            
	
              Section 13.1

            	
              Duties With Respect to the Cap Agreement

            	
              56

            
	
              Section 13.2

            	
              Enforcement of Cap Agreement; Replacement Cap Agreement

            	
              57

            
	
              ARTICLE XIV

            	
              ASSET REPRESENTATIONS REVIEW

            	
              57

            
	
              Section 14.1

            	
              Noteholder and Note Owner Requests for Vote on Asset Representations Review

            	
              57

            
	
              Section 14.2

            	
              Noteholder and Note Owner Vote on Asset Representations Review

            	
              58

            
	
              Section 14.3

            	
              Evaluation of Review Report

            	
              58

            

    

     

    

    

    

    

    	
            Exhibit A

          	
            Form of Notes

          	
            A-1

          
	
            Exhibit B

          	
            Servicing Criteria to be Addressed in Assessment of Compliance

          	
            B-1

          

    

    

    

    

    
      v

      
        

    

    
      INDENTURE, dated as of October 8, 2019 (this “Indenture”), between VERIZON OWNER TRUST 2019-C, a Delaware statutory trust, as issuer (the “Issuer”), and U.S. BANK NATIONAL ASSOCIATION, a
        national banking association, as indenture trustee for the benefit of the Secured Parties (in such capacity, the “Indenture Trustee”), and as note paying agent (in such capacity, the “Note Paying Agent”).

       

      In connection with a securitization transaction sponsored by Cellco, the Issuer will issue Notes secured by a pool of Receivables consisting of device payment plan agreements acquired by the Issuer
        from the Depositor, who acquired them from the Originators or the Master Trust.

       

      The parties agree as follows:

       

      GRANTING CLAUSE

       

      The Issuer Grants to the Indenture Trustee at the Closing Date, as Indenture Trustee for the benefit of the Secured Parties, all of the Issuer’s right, title and interest in, to and under, whether now
        owned or later acquired, the Collateral.

       

      This Grant is made in trust to secure (a) the payment of principal of, interest on and other amounts owing on the Notes as stated in this Indenture and (b) compliance by the Issuer with this Indenture
        for the benefit of the Secured Parties.

       

      The Indenture Trustee acknowledges the Grant, accepts the trusts under this Indenture according to this Indenture and agrees to perform its duties as stated in this Indenture so that the interests of
        the Secured Parties may be adequately and effectively protected.

       

      ARTICLE I

        USAGE AND DEFINITIONS

       

      Section 1.1   Usage and Definitions.  Capitalized terms used but not defined in this Indenture are defined in Appendix A to the Transfer and Servicing Agreement,
        dated as of October 8, 2019, among Verizon Owner Trust 2019-C, as Issuer, Verizon ABS LLC, as depositor (the “Depositor”), and Cellco Partnership d/b/a Verizon Wireless, as servicer (in such capacity, the “Servicer”), as marketing
        agent (in such capacity, the “Marketing Agent”) and as custodian (in such capacity, the “Custodian”).  Appendix A also contains usage rules that apply to this Indenture.  Appendix A is incorporated by reference into this Indenture.

       

      Section 1.2    Incorporation by Reference of Trust Indenture Act. 
        Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this Indenture have the following meanings:

       

      “indenture securities” means the Notes

       

      “indenture security holder” means a Noteholder

       

      “indenture to be qualified” means this Indenture

       

      
        
          

      

      
      “indenture trustee” or “institutional trustee” means the Indenture Trustee

       

      “obligor” on the indenture securities means the Issuer and any other obligor on the indenture securities

       

      All other TIA terms used in this Indenture that are (i) defined in the TIA, (ii) defined in the TIA by reference to another statute or (iii) defined by a Commission rule have the meanings so assigned
        to them.

       

      ARTICLE II

        THE NOTES

       

      Section 2.1    Form of Notes.

       

      (a) Form.  Each Class of Notes will be in substantially the form of Exhibit A
        with variations required or permitted by this Indenture.  The Notes may have marks of identification and legends or endorsements as determined by the Responsible Person of the Issuer executing the Notes.  The physical Notes will be produced by a
        method determined by the Responsible Person of the Issuer executing the Notes.

       

      (b) Incorporation by Reference.  Each Note will be dated the date of its
        authentication.  The terms of the Notes in Exhibit A are part of this Indenture and are incorporated into this Indenture by reference.

       

      Section 2.2    Execution, Authentication and Delivery.

       

      (a) Execution.  The Owner Trustee, on behalf of the Issuer, will execute the
        Notes for the Issuer.  The signature of the Responsible Person on the Notes may be manual or facsimile.  Notes having the manual or facsimile signature of an individual who was a Responsible Person of the Issuer will bind the Issuer, even if the
        individual has ceased to be a Responsible Person before the authentication and delivery of the Notes or was not a Responsible Person on the issuance date of the Notes.

       

      (b) Authentication and Delivery.  The Indenture Trustee will, on Issuer Order,
        authenticate and deliver the Notes for original issue in the Classes, Note Interest Rates and initial Note Balances as stated below.

       

      
        	
                Class

              	
                Note Interest Rate

              	
                Initial Note Balance

              
	
                Class A-1a Notes

              	
                1.94%

              	
                $1,275,700,000

              
	
                Class A-1b Notes

              	
                One-Month LIBOR* + 0.42%

              	
                   $150,000,000

              
	
                Class B Notes

              	
                2.06%

              	
                     $98,300,000

              
	
                Class C Notes

              	
                2.16%

              	
                     $76,000,000

              

      

       

      _______________

      
        * Upon the occurrence of a Benchmark Replacement Event, One-Month LIBOR will be replaced by the appropriate Benchmark
            Replacement as set forth in Section 2.16 of the Indenture.

      

      

      

      (c) Denomination.  The Notes will initially be issued as Book-Entry Notes.  The
        Notes will be issued in minimum denominations of $1,000 and in multiples of $1,000.  However, one Note of each Class may be issued in a different amount if it exceeds the minimum denomination for the Class.

       

      
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      (d) Certificate of Authentication.  No Note will have the benefit of this
        Indenture or be valid unless it has a certificate of authentication substantially in the form included in Exhibit A manually executed by an authorized signatory of the Indenture Trustee.  The certificate of authentication on a Note will be
        conclusive evidence that the Note has been duly authenticated and delivered under this Indenture.  Each Note will be dated the date of its authentication.

       

      Section 2.3    Tax Treatment.  The Issuer intends that Notes be treated
        as indebtedness for purposes of U.S. federal, State and local income tax, franchise tax, and any other tax imposed on or measured in whole or in part by income.  The Issuer, by entering into this Indenture, and each Noteholder, by its acceptance of
        a Note (and each Note Owner by its acceptance of an interest in the applicable Book-Entry Note), agree to treat the Notes as indebtedness for purposes of U.S. federal, State and local income tax, franchise tax, and any other tax imposed on or
        measured in whole or in part by income and the Issuer as a mere security device formed to hold the Receivables and issue Notes and Certificates.

       

      Section 2.4    Note Register.  The Issuer appoints the Indenture
        Trustee to be the “Note Registrar” and to keep a register (the “Note Register”) for the purpose of registering Notes and transfers and exchanges of Notes, subject to such reasonable regulations as it may prescribe.  On resignation of
        the Note Registrar, the Issuer will promptly appoint a successor or, if it elects not to make the appointment, assume the obligations of Note Registrar.  If the Issuer appoints a Person other than the Indenture Trustee as Note Registrar, (i) the
        Issuer will notify the Indenture Trustee of the appointment and (ii) the Indenture Trustee will have the right to rely on a certificate executed by an officer of the Note Registrar listing the names and addresses of the Noteholders and the
        principal amounts and number of the Notes.  Each of the Indenture Trustee (if it is not the Note Registrar), the Issuer and the Administrator will have the right to inspect the Note Register at reasonable times and to receive copies of the Note
        Register.

       

      Section 2.5    Registration of Transfer and Exchange.

       

      (a) Transfer of Notes.  A Noteholder may transfer a Note by surrendering the Note
        for registration of transfer at the office or agency of the Issuer maintained under Section 3.2.  If the requirements of Section 8-401(a) of the UCC are met, the Issuer will execute and the Indenture Trustee will authenticate and deliver to the
        Noteholder, in the name of the transferee or transferees, new Notes of the same Class, in the same aggregate principal amount.

       

      (b) Exchange of Notes.  A Noteholder may exchange Notes for other Notes of the
        same Class by surrendering the Notes to be exchanged at the office or agency of the Issuer maintained under Section 3.2.  If the requirements of Section 8-401(a) of the UCC are met, the Issuer will execute, the Indenture Trustee will authenticate
        and the Noteholder will receive from the Indenture Trustee new Notes of the same Class, in the same aggregate principal amount.

       

      (c) Valid Obligation.  Notes issued on the registration of transfer or exchange
        of Notes will be the valid obligations of the Issuer, evidencing the same debt, and have the same benefits under this Indenture as the Notes surrendered for registration of transfer or exchange.

       

      (d) Surrendered Notes.  Every Note surrendered for registration of transfer or
        exchange will be (i) duly endorsed by, or accompanied by a written instrument of transfer in

       

      
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      form satisfactory to the Note Registrar duly executed by, the Noteholder of the Note or the Noteholder’s authorized attorney, with the signature guaranteed by an “eligible guarantor institution” meeting the requirements
        of the Note Registrar including membership or participation in the Securities Transfer Agents Medallion Program or another “signature guarantee program”, according to the Exchange Act and (ii) accompanied by other documents the Note Registrar may
        require.

       

      (e) No Service Charge.  None of the Issuer, the Note Registrar or the Indenture
        Trustee will impose a service charge on a Noteholder for the registration of transfer or exchange of Notes.  The Issuer, the Note Registrar or the Indenture Trustee may require the Noteholder to pay an amount to cover taxes or other governmental
        charges that may be imposed for the registration of transfer or exchange of the Notes.

       

      (f) Registration of Transfers and Exchanges.

       

      (i) The Note Register will register transfers and exchanges of Notes
        in the Note Register.  However, neither the Issuer nor the Note Registrar will be required to register transfers or exchanges of Notes for which the next Payment Date is not more than fifteen (15) days after the requested date of transfer or
        exchange or which have been called for redemption.

       

      (ii) Neither the Indenture Trustee nor the Note Registrar shall have
        any obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note (including any transfers
        between or among Clearing Agency participants or beneficial owners of interests in any Book-Entry Note) other than to require delivery of such certificates and other documentation or evidence as are expressly required by this Indenture, and to
        examine the same to determine substantial compliance as to form with the express requirements hereof.

       

      (g) ERISA Representations.  Each Note Owner that is subject to Title I of ERISA,
        Section 4975 of the Code or Similar Law and any fiduciary acting on behalf of the Note Owner, by accepting an interest or participation in a Note, is deemed to represent that its purchase, holding and disposition of that interest or participation
        does not and will not result in a non-exempt prohibited transaction under Title I of ERISA or Section 4975 of the Code due to the applicability of a statutory or administrative exemption from the prohibited transaction rules (or, if the Note Owner
        is subject to Similar Law, the purchase, holding and disposition does not and will not result in a non-exempt violation of that Similar Law).

       

      Section 2.6    [Reserved].

       

      Section 2.7    Mutilated, Destroyed, Lost or Stolen Notes.

       

      (a) Replacement Notes.  If a mutilated Note is surrendered to the Indenture
        Trustee or the Indenture Trustee receives evidence of the destruction, loss or theft of a Note, the Issuer will execute and, on Issuer Request, the Indenture Trustee will authenticate and deliver a replacement Note of the same Class and principal
        amount in exchange for or in place of the Note if the following conditions are met: (i) the Indenture Trustee receives security or indemnity to hold the

       

      
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      Issuer and the Indenture Trustee harmless, (ii) none of the Issuer, the Note Registrar or the Indenture Trustee have received notice that the Note has been acquired by a protected purchaser, as defined in Section 8-303
        of the UCC and (iii) the requirements of Section 8-405 of the UCC are met.  However, if a destroyed, lost or stolen Note (but not a mutilated Note) is due and payable within fifteen (15) days or has been called for redemption, instead of issuing a
        replacement Note, the Issuer may pay the destroyed, lost or stolen Note when so due or payable or on the Redemption Date without surrender of the Note.  If a protected purchaser of the original Note in place of which the replacement Note was issued
        (or the payment made) presents for payment the original Note, the Issuer and the Indenture Trustee may recover the replacement Note (or the payment) from the Person to whom it was delivered or a Person taking the replacement Note (or the payment)
        from the Person to whom the replacement Note (or the payment) was delivered or an assignee of that Person, except a protected purchaser, and may recover on the security or indemnity provided for the replacement Note (or the payment) for any fee,
        expense, loss, damage or liability incurred by the Issuer or the Indenture Trustee for the replacement Note (or the payment).

       

      (b) Taxes, Charges and Expenses.  On the issuance of a replacement Note under
        Section 2.7(a), (i) the Issuer may require the Noteholder of the Note to pay an amount to cover any taxes or other governmental charges imposed and any other reasonable expenses incurred for the replacement Note, (ii) the Indenture Trustee will,
        for a mutilated Note, cancel the Note and (iii) the Note Registrar will record in the Note Register that the destroyed, lost or stolen Note no longer has the benefits of this Indenture.

       

      (c) Additional Obligation.  Each replacement Note issued under Section 2.7(a)
        will be an original additional contractual obligation of the Issuer and will have the benefits of this Indenture equally and proportionately with other Notes of the same Class duly issued under this Indenture.

       

      (d) Sole Remedy.  This Section 2.7 states the sole remedy available to
        Noteholders for the replacement or payment of mutilated, destroyed, lost or stolen Notes.

       

      Section 2.8    Persons Deemed Owners.  On any date, the Issuer, the
        Indenture Trustee, the Note Registrar and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name a Note is registered as of that date as the owner of the Note for all purposes, including receiving payments of principal
        of and interest on the Note, without regard to any notice or other information to the contrary.

       

      Section 2.9    Payments on Notes.

       

      (a) Interest Accrual.  Each Class of Notes will accrue interest on its Note
        Balance for each Interest Period until the Note Balance has been paid in full at a rate per annum equal to its Note Interest Rate for that Interest Period.  Interest on the Notes for each Interest Period will be calculated on the basis of (i) in
        the case of the Class A-1a Notes, the Class B Notes and the Class C Notes, a 360-day year consisting of twelve 30-day months and (ii) in the case of the Class A-1b Notes, a 360-day year and the actual number of days elapsed in the related Interest
        Period.  Interest on each Note for each Interest Period will be due and payable on the related Payment Date.

       

      
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      (b) Principal.  During the Revolving Period, no principal will be paid on the
        Notes.  During the Amortization Period, the principal of each Class of Notes will be payable in installments on each Payment Date in accordance with the provisions of Article VIII.  The Note Balance of each Class of Notes will be due and payable on
        the earlier of the Redemption Date or the applicable Final Maturity Date.  In addition, the Note Balance of each Class of Notes will be due and payable on the date the Notes are declared to be, or have automatically become, immediately due and
        payable according to Section 5.2(a).

       

      (c) Make-Whole Payments.  A Make-Whole Payment will be due in connection with the
        Optional Redemption of the Notes, as described in Section 8.2 of the Transfer and Servicing Agreement, and on each principal payment made on the Notes during the Amortization Period, if the Amortization Period began as a result of the occurrence of
        an Amortization Event described in either clause (a)(iii) or (d) of the definition of “Amortization Event,” solely to the extent funds are available therefor.  Any Make-Whole Payments on a Class of Notes not previously paid will be due and payable
        on the earlier of the Redemption Date or the applicable Final Maturity Date.  In addition, any Make-Whole Payments on a Class of Notes not previously paid will be due and payable on the date the Notes are declared to be, or have automatically
        become, immediately due and payable according to Section 5.2(a).  For the avoidance of doubt, no Make-Whole Payment will be payable in connection with any principal payment on the Notes resulting from (x) the occurrence of an Amortization Event
        described in either clause (a)(iii) or (d) of the definition of “Amortization Event” if such event occurs after the date set forth in clause (i) of the definition of “Amortization Period” or (y) an Optional Acquisition of the Receivables, as
        described in Section 8.1 of the Transfer and Servicing Agreement.

       

      (d) Monthly Payment of Interest, Principal and Other Amounts.  Payments of
        interest, principal and other amounts on each Class of Notes will be made pro rata to the Noteholders of that Class on each Payment Date.  For Book-Entry Notes, payments will be made by wire transfer to the account designated by the nominee of the
        Clearing Agency according to Section 2.12.  For Definitive Notes, payments will be made (i) if the Noteholder has given to the Note Registrar instructions at least five (5) Business Days before that Payment Date and the aggregate original principal
        amount of the Noteholder’s Notes is at least $1,000,000, by wire transfer to the account of the Noteholder or (ii) by check mailed first class mail, postage prepaid, to the Noteholder’s address as it appears on the Note Register on the related
        Record Date.  Amounts paid by wire transfers or checks that are returned undelivered will be held according to Section 3.3.

       

      (e) Payment of Final Installment.  The final installment of principal (whether
        payable by wire transfer or check) of each Note on a Payment Date, the Redemption Date or the applicable Final Maturity Date will be payable only on presentation and surrender of the Note, subject to Section 2.7(a).  Upon receipt of written notice
        thereof from the Servicer (which may be in the form of the Monthly Investor Report), the Indenture Trustee will notify each Noteholder of the date the Issuer expects to pay the final installment on any of the Notes, which notice will be delivered
        no later than five (5) days before that date (solely to the extent the Indenture Trustee has received notice prior to such date), and the place where the Notes may be presented and surrendered for payment.

       

      
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      Section 2.10    Cancellation of Notes.  Any Person that receives a Note
        surrendered for payment, registration of transfer, exchange or redemption will deliver the Note to the Indenture Trustee, and the Indenture Trustee will promptly cancel it.  The Issuer may surrender to the Indenture Trustee for cancellation Notes
        previously authenticated and delivered under this Indenture which the Issuer may have acquired, and the Indenture Trustee will promptly cancel them.  No Notes will be authenticated in place of or in exchange for Notes cancelled as stated in this
        Section 2.10.  The Indenture Trustee may hold or dispose of cancelled Notes according to its standard retention or disposal policy unless the Issuer directs, by Issuer Order, that they be destroyed or returned to it.

       

      Section 2.11    Release of Collateral.  The Indenture Trustee will
        release property from the Lien of this Indenture only according to Sections 8.4 and 10.1.

       

      Section 2.12    Book-Entry Notes.

       

      (a) Issuance and Registration.  The Notes will be issued as Book-Entry Notes on
        the Closing Date.  The Book-Entry Notes, on original issuance, will be issued in the form of printed Notes representing the Book-Entry Notes and delivered to The Depository Trust Company, the initial Clearing Agency, by, or on behalf of, the
        Issuer.  The Book-Entry Notes will be registered initially on the Note Register in the name of Cede & Co., the nominee of the initial Clearing Agency.

       

      (b) Sole Noteholder.  The Note Registrar and the Indenture Trustee may deal with
        the Clearing Agency as the sole Noteholder of the Book-Entry Notes for all purposes of this Indenture and will not be obligated to the Note Owners, except as stated in Section 7.1.

       

      (c) Rights.  The rights of Note Owners may be exercised only through the Clearing
        Agency and will be limited to those established by law and agreements between the Note Owners and the Clearing Agency and/or its participants under the Depository Agreement.

       

      (d) Clearing Agency Obligations.  The Clearing Agency will make book-entry
        transfers among its participants and receive and transmit payments of principal of and interest on the Book-Entry Notes to the participants.  The Indenture Trustee, the Note Registrar and the Note Paying Agent shall have no responsibility or
        liability for any actions taken or not taken by the Clearing Agency.

       

      (e) Representation of Noteholders.  If this Indenture requires or permits actions
        to be taken based on instructions or directions of the Noteholders of a stated percentage of the Note Balance of the Notes (or the Controlling Class), the Clearing Agency will be deemed to represent those Noteholders only if it has received
        instructions to that effect from Note Owners and/or the Clearing Agency’s participants owning or representing, the required percentage of the beneficial interest of the Notes (or the Controlling Class) and has delivered the instructions to the
        Indenture Trustee.

       

      (f) Conflicts.  If this Section 2.12 conflicts with other terms of this
        Indenture, this Section 2.12 will control.

       

      
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      (g) CUSIP Numbers.  The Issuer in issuing the Notes may use “CUSIP” numbers (if
        then generally in use), and, if so, the Indenture Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Noteholders; provided that any such notice may state that no representation is made as to the correctness of such
        numbers either as printed on the Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or
        omission of such numbers.  The Issuer will promptly notify the Indenture Trustee in writing of any change in the “CUSIP” numbers.

       

      Section 2.13    Definitive Notes.  No Note Owner will receive a
        definitive, fully registered Note (a “Definitive Note”) representing the Note Owner’s interest in the Note unless and until (a) the Administrator notifies the Indenture Trustee that the Clearing Agency is no longer willing or able to
        properly discharge its responsibilities as depository for the Book-Entry Notes and the Administrator is unable to reach an agreement on satisfactory terms with a qualified successor, (b) the Administrator notifies the Indenture Trustee that it
        elects to terminate the book-entry system through the Clearing Agency or (c) after the occurrence and during the continuation of an Event of Default or a Servicer Termination Event, Note Owners of a majority of the Note Balance of the Controlling
        Class notify the Indenture Trustee and the Clearing Agency that they elect to terminate the book-entry system through the Clearing Agency.  In these cases, the Clearing Agency will notify Note Owners and the Indenture Trustee of the availability of
        Definitive Notes.  After the Clearing Agency has surrendered the printed Notes representing the Book-Entry Notes and delivered the registration instructions to the Indenture Trustee, the Issuer will execute and the Indenture Trustee, on Issuer
        Request, will authenticate the Definitive Notes according to the instructions of the Clearing Agency.  None of the Issuer, the Note Registrar or the Indenture Trustee will be liable for delay in delivery of the instructions and may conclusively
        rely, and will be protected in relying, on the instructions.  On the issuance of Definitive Notes to Note Owners, the Indenture Trustee will recognize the holders of the Definitive Notes as Noteholders.

       

      Section 2.14    Authenticating Agents.

       

      (a) Appointment.  The Indenture Trustee may appoint one or more Persons as
        authenticating agents for the Notes (each, an “Authenticating Agent”) with the power to act on its behalf and subject to its direction in the authentication of Notes for issuances, transfers, exchanges and replacements.  The authentication
        of Notes by an Authenticating Agent under this Section 2.14 is deemed to be the authentication of Notes “by the Indenture Trustee.” If no Authenticating Agent is appointed, the Indenture Trustee will be the Authenticating Agent for the Notes.

       

      (b) Resignation and Termination.  An Authenticating Agent may resign by notifying
        the Indenture Trustee and the Owner Trustee.  The Indenture Trustee may terminate the agency of an Authenticating Agent by notifying the Authenticating Agent and the Owner Trustee.

       

      Section 2.15    Note Paying Agents.

       

      (a) Appointment.  The Indenture Trustee may appoint one or more Note Paying
        Agents that meet the eligibility standards for the Indenture Trustee in Section 6.11.  If no Note

       

      
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      Paying Agent is appointed, then the Indenture Trustee will be the Note Paying Agent for the Notes.  Each Note Paying Agent will have the power to make distributions from the Bank Accounts.

       

      (b) Resignation and Termination.  A Note Paying Agent may resign by notifying the
        Indenture Trustee, the Administrator and the Issuer.  The Indenture Trustee may terminate the agency of a Note Paying Agent by notifying the Note Paying Agent, the Administrator and the Issuer.

       

      Section 2.16    Effect of Benchmark Transition Event.

       

      (a) Benchmark Replacement.  If the Administrator determines that a Benchmark
        Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any determination of the Benchmark on any date, the Benchmark Replacement will replace the then-current Benchmark for all purposes
        under the Transaction Documents and the Notes in respect of such determination on such date and all determinations on all subsequent dates.

       

      (b) Benchmark Replacement Conforming Changes.  In connection with the
        implementation of a Benchmark Replacement, the Administrator shall have the right to make Benchmark Replacement Conforming Changes from time to time.  Notice of the occurrence of a Benchmark Transition Event and its related Benchmark Replacement
        Date, the determination of a Benchmark Replacement and the making of any Benchmark Replacement Conforming Changes will be delivered in writing by the Administrator to the Trust, the Owner Trustee, a Responsible Person of the Indenture Trustee, the
        Parent Support Provider, the Sponsor, the Depositor and the Servicer and included in the Monthly Investor Report. Notwithstanding anything in the Transaction Documents to the contrary, upon the delivery of notice to a Responsible Person of the
        Indenture Trustee and the inclusion of such information in the Monthly Investor Report, the relevant Transaction Documents and the Notes will be deemed to have been amended to reflect the new Unadjusted Benchmark Replacement, Benchmark Replacement
        Adjustment and/or Benchmark Replacement Conforming Changes without further compliance with the amendment provisions of the relevant Transaction Documents.

       

      (c) Decisions and Determinations. Any determination, decision or election that
        may be made by the Administrator pursuant to this Section 2.16, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain
        from taking any action or any selection, shall be conclusive and binding absent manifest error, may be made in the Administrator’s sole discretion, and, notwithstanding anything to the contrary in the Transaction Documents, shall become effective
        without consent from any other party or Noteholder and shall not be subject to any of the amendment provisions of the Transaction Documents (including, without limitation, the provisions under Article IX). None of the Issuer, the Owner Trustee, the
        Indenture Trustee, the Note Paying Agent, the Administrator, the Sponsor, the Depositor or the Servicer shall have any liability for any determination made by or on behalf of the Administrator in connection with a Benchmark Transition Event or a
        Benchmark Replacement as set forth above, and each Noteholder, by its acceptance of a Note or a beneficial interest in a Note, shall be deemed to waive and release any and all claims against the Issuer, the Owner Trustee, the Indenture

       

      
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      Trustee, the Note Paying Agent, the Administrator, the Sponsor, the Depositor or the Servicer relating to any such determinations.  Notwithstanding anything in the Transaction Documents to the contrary, upon the
        delivery of notice to a Responsible Person of the Indenture Trustee and inclusion in a Monthly Investor Report of the information set forth in clauses (i) and (ii) of Section 3.5(a)(iii) in the Transfer and Servicing Agreement, the relevant
        Transaction Documents shall be deemed to have been amended to reflect the new Unadjusted Benchmark Replacement, Benchmark Replacement Adjustment and/or Benchmark Replacement Conforming Changes without further compliance with the amendment
        provisions of the relevant Transaction Documents.  Neither the Indenture Trustee nor the Owner Trustee will have any liability or obligation with respect to any determination by the Administrator that a Benchmark Transition Event has occurred or
        the selection of any replacement index.

       

      ARTICLE III

        COVENANTS, REPRESENTATIONS AND WARRANTIES

       

      Section 3.1    Payment of Principal, Interest and Other Amounts.  The
        Issuer will duly and punctually pay the principal of and interest and Make-Whole Payments, if any, on the Notes according to the terms of the Notes and this Indenture.  Amounts withheld under the Code or State or local tax law by any Person from a
        payment to a Noteholder will be considered as having been paid by the Issuer to the Noteholder.

       

      Section 3.2    Maintenance of Office or Agency.  The Issuer will
        maintain an office or agency at the Corporate Trust Office of the Indenture Trustee designated for such purpose, where Notes may be surrendered for registration of transfer or exchange, and where notices to and demands on the Issuer for the Notes
        and this Indenture may be served.  The Issuer initially appoints the Indenture Trustee to serve as its agent for those purposes.  The Issuer will promptly notify the Indenture Trustee of a change in the location of the office or agency.  If the
        Issuer fails to maintain the office or agency or fails to furnish the Indenture Trustee with the address of the office or agency, any surrender, notices or demands may be made or served at the Corporate Trust Office, and the Issuer appoints the
        Indenture Trustee as its agent to receive them.

       

      Section 3.3    Money for Payments To Be Held in Trust.

       

      (a) Payments on the Notes.  Payments on the Notes that are to be made from
        amounts withdrawn from the Bank Accounts will be made on behalf of the Issuer by the Note Paying Agent.  No amounts withdrawn for payments on the Notes may be paid over to the Issuer, except as stated in this Section 3.3.

       

      (b) Agreement by Note Paying Agent.  The Indenture Trustee will, and will cause
        each Note Paying Agent (other than the Indenture Trustee) to, execute and deliver to the Indenture Trustee, an instrument in which the Note Paying Agent agrees with the Indenture Trustee (and if the Indenture Trustee acts as the Note Paying Agent,
        it hereby so agrees) to:

       

      (i)      hold funds held by it for the
        payment of amounts due on the Notes in trust for the benefit of the Persons entitled to that money and pay it to those Persons under this Indenture;

       

      
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      (ii)    notify the Indenture Trustee of
        a default by the Issuer of which it has actual knowledge in the making of a required payment on the Notes;

       

      (iii)     during the continuance of a default, on the request of the Indenture Trustee, immediately pay to the Indenture Trustee money
        held by it in trust;

       

      (iv)      immediately resign as a Note Paying Agent and immediately pay to the Indenture Trustee amounts held by it in trust if it ceases
        to meet the eligibility standards set forth in Section 6.11 for the Indenture Trustee; and

       

      (v)    comply with all requirements of
        the Code for withholding and reporting requirements for payments on the Notes.

       

      (c) Payment Direction.  The Issuer may by Issuer Order, direct a Note Paying
        Agent to pay to the Indenture Trustee money held in trust by the Note Paying Agent, which money will be held by the Indenture Trustee on the same terms as the Note Paying Agent.  On a Note Paying Agent’s payment of money held in trust to the
        Indenture Trustee, the Note Paying Agent will be released from liability for such amounts.

       

      (d) Unclaimed Money.  Subject to applicable law, money held by the Indenture
        Trustee or a Note Paying Agent in trust under this Section 3.3 which remains unclaimed for two years after it became due and payable will be discharged from the trust and paid to the Issuer on Issuer Request.  After discharge and payment, the
        Noteholder of the Note will, as an unsecured general creditor, look only to the Issuer for payment of the amount due and unclaimed, and the Indenture Trustee or the Note Paying Agent will be released from liability for such amounts.  However, the
        Indenture Trustee or the Note Paying Agent, before making the payment, will publish once, at the expense and direction of the Issuer, in a newspaper customarily published on each Business Day in the English language and of general circulation in
        The City of New York, notice that the money remains unclaimed and that after a date stated in the notice, which must be at least thirty (30) days from the date of publication, any unclaimed balance of the money then remaining will be paid to the
        Issuer.  The Indenture Trustee will also use other reasonable means to notify Noteholders of unclaimed payments.

       

      (e) FATCA Withholding.  The Issuer represents, warrants and covenants to the
        Indenture Trustee and the Note Paying Agent that, (i) to the best of the Issuer’s knowledge, the Indenture Trustee, Note Registrar and Note Paying Agent are not obligated in respect of any payments to be made by the Issuer pursuant to this
        Indenture, to make any withholding or deduction pursuant to an agreement described in Section 1471(b) of the Code or otherwise imposed pursuant to Sections 1471 through 1474 of the Code and any regulations or agreements thereunder or official
        interpretations thereof (“FATCA Withholding Tax”), provided such parties have obtained the requisite information about the Noteholders; (ii) the Noteholders are required to provide information sufficient to eliminate the imposition of, or
        determine the amount of, FATCA Withholding Tax (the “FATCA Information”) to the Issuer and the Indenture Trustee, (iii) the Issuer shall comply with all requirements of the Code with respect to the withholding from any payment made by it on
        any Note of any applicable FATCA Withholding Tax imposed thereon and with respect to any applicable reporting requirement in connection therewith; and (iv) to the extent the Issuer determines that FATCA Withholding Tax is applicable, it will

       

      
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      promptly notify the Note Paying Agent of such fact.  To the extent the Issuer has the Noteholders’ information, the Issuer will provide the FATCA Information to the Indenture Trustee, the Note Registrar and the Note
        Paying Agent upon request. Each holder of a Note or an interest therein, by acceptance of such Note or such interest in such Note, will be deemed to have agreed to provide the Issuer, the Indenture Trustee, the Note Registrar and the Note Paying
        Agent with the Noteholder Tax Identification Information and, to the extent FATCA Withholding Tax is applicable, the FATCA Information. In addition, each holder of a Note will be deemed to understand that the Note Paying Agent has the right to
        withhold interest payable with respect to the Note (without any corresponding gross-up) on any beneficial owner of an interest in a Note that fails to comply with the foregoing requirements.

       

      Section 3.4    Existence.  The Issuer will maintain its existence as a
        statutory trust under the Delaware Statutory Trust Act and will obtain and maintain its qualification in each jurisdiction in which the qualification is or will be necessary to protect the validity and enforceability of this Indenture, the Notes
        and the Collateral.

       

      Section 3.5    Protection of Collateral.

       

      (a) Amendments and Financing Statements.  The Issuer will (i) execute and deliver
        amendments to this Indenture and other documents, (ii) file or authorize and cause to be filed financing statements and amendments and continuations of those financing statements and (iii) take other action, in each case, necessary or advisable to:

       

      (A) Grant more effectively any portion of the Collateral pursuant to
        this Indenture;

       

      (B) maintain or preserve the Lien and security interest (and the
        priority of the security interest) of this Indenture;

       

      (C) perfect, maintain perfection, publish notice of or protect the
        validity of a Grant made or to be made by this Indenture;

       

      (D) enforce the Collateral; or

       

      (E) maintain and defend title to the Collateral and the rights of the
        Indenture Trustee and the Secured Parties in the Collateral against the claims of all Persons, subject to Permitted Liens and the Transaction Documents.

       

      (b) Authorization to File.  The Issuer authorizes the Administrator and the
        Indenture Trustee (but the Indenture Trustee shall not be required to do so) to file financing and continuation statements, and amendments to the statements, in the jurisdictions and with the filing offices as the Administrator or the Indenture
        Trustee may determine necessary or advisable to perfect the Indenture Trustee’s interest in the Collateral.  The Administrator (or the Indenture Trustee solely to the extent it has elected to so prepare and file) shall timely prepare and file the
        foregoing and will promptly deliver to the Issuer and the Indenture Trustee file-stamped copies of, or filing receipts for, any financing statement, continuation statement and amendment to a previously filed financing statement.

       

      
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      (c) Indenture Trustee Not Obligated.  The Indenture Trustee is not obligated to
        (i) make a determination of whether filing financing or continuation statements, or amendments to the statements, is required or (ii) file any financing or continuation statements, or amendments to the statements, and will not be liable for failure
        to do so.

       

      (d) Description of Collateral in Financing Statement.  Financing statements filed
        pursuant to this Indenture may describe the Collateral in the same manner as described herein or may describe the Collateral subject thereto as “All of the debtor’s right, title and interest now or hereafter existing in, to and under all assets of
        the debtor, whether now owned or existing or hereafter acquired or arising.”

       

      Section 3.6    Performance of Obligations.

       

      (a) Performance of Obligations.  The Issuer will perform all of its obligations
        under the Transaction Documents and documents included in the Collateral in all material respects.  The Issuer will not take any action and will use its best efforts not to permit any action to be taken by others that would release any Person from
        any of such Person’s material covenants or obligations under any instrument or agreement included in the Collateral or that would result in the amendment, hypothecation, subordination, termination or discharge of, or impair the validity or
        effectiveness of, any such instrument or agreement, except as expressly provided in or permitted under this Indenture, the other Transaction Documents, the Servicing Procedures or such other instrument or agreement.

       

      (b) Subcontracting.  The Issuer may contract with other Persons to assist it in
        performing its obligations under this Indenture.  Initially, the Issuer has contracted with the Servicer and the Administrator to assist the Issuer in performing its obligations under this Indenture.

       

      (c) Servicer Termination Event.  If the Issuer has actual knowledge of a Servicer
        Termination Event, the Issuer will notify the Indenture Trustee and the Rating Agencies of the event and any action the Issuer is taking to correct the situation.  If a Servicer Termination Event results from the failure of the Servicer to perform
        its obligations under the Transfer and Servicing Agreement, the Issuer will take reasonable steps to remedy such failure, including enforcing the obligations of the Servicer under the Transfer and Servicing Agreement.

       

      (d) Cap Agreement.  Promptly following the termination of the Cap Agreement due
        to an “Event of Default” or “Termination Event” (as each such term is defined in the Cap Agreement), the Issuer will use reasonable efforts to enter into a replacement cap agreement on terms similar to those of the terminated Cap Agreement with an
        Eligible Replacement Cap Counterparty unless the Indenture Trustee sells the Collateral pursuant to Section 5.6(a)(ii).

       

      Section 3.7    Negative Covenants.  So long as Notes are Outstanding,
        the Issuer will not, except as permitted in the Transaction Documents:

       

      (a) Dispose of Collateral.  Sell, transfer, exchange or dispose of the Collateral
        unless directed to do so by the Indenture Trustee;

       

      
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      (b) No Release of Material Obligations.  Take action, and will use its
        commercially reasonable efforts to prevent any action from being taken by others, that would release any Person from any material obligation under a document included in the Collateral or that would impair the validity or enforceability of the
        Collateral or a document included in the Collateral;

       

      (c) Set-off.  Claim a credit on, or make a deduction from the payments of
        principal or interest on, the Notes (other than amounts withheld from payments under applicable Law) or assert a claim against a Noteholder by reason of the payment of the taxes levied or assessed on the Issuer or the Collateral;

       

      (d) Dissolve or Liquidate.  Dissolve or liquidate in whole or in part;

       

      (e) Liens.  Permit (i) the validity or effectiveness of this Indenture to be
        impaired, or permit the Lien of this Indenture to be amended, subordinated, terminated or discharged, or permit a Person to be released from obligations under this Indenture except in each case as permitted by this Indenture, (ii) any Lien, other
        than Permitted Liens, to be created on or extend to the Collateral or (iii) the Lien of this Indenture not to be a valid first priority security interest in the Collateral, other than with respect to Permitted Liens;

       

      (f) Modification of Collateral.  Subject to Article IX and the terms and
        conditions of the Collateral or any Transaction Documents, amend, modify, waive, terminate or surrender any Collateral or any Transaction Documents without the consent of the Indenture Trustee or the Noteholders of a majority of the Note Balance of
        the Notes and notifying the Rating Agencies;

       

      (g)   Engage in Non-Permissible Activities.  Engage in any activity other than
        as permitted by the Trust Agreement.

       

      Section 3.8    Opinions on Collateral.

       

      (a) Opinion on Recording.  If this Indenture is subject to recording, the Issuer,
        at its expense, will record it and deliver an Opinion of Counsel to the Indenture Trustee stating that the recording is necessary either for the protection of the Secured Parties or for the enforcement of a right or remedy Granted to the Indenture
        Trustee under this Indenture.

       

      (b) Opinion on Perfection.  On the Closing Date, the Issuer will furnish to the
        Indenture Trustee an Opinion of Counsel stating that this Indenture creates an enforceable security interest in favor of the Indenture Trustee in the Indenture Trustee’s right, title and interest in and to the Collateral transferred by the Issuer
        to the Indenture Trustee pursuant to this Indenture and in any identifiable cash proceeds thereof.

       

      (c) Annual Opinion.  On or before April 30 of each year, beginning in the year
        after the Closing Date, the Issuer will furnish to the Indenture Trustee an Opinion of Counsel either (i) stating that, in the opinion of that counsel, all action has been taken for the recording, filing, re-recording and refiling of this Indenture
        and all financing statements and continuation statements to maintain the Lien of this Indenture or (ii) stating that in the opinion of that counsel no action is necessary to maintain the Lien.

       

      
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      Section 3.9    Annual Certificate of Compliance.  The Issuer will
        deliver to the Indenture Trustee within 90 days after the end of each calendar year, beginning in the year after the Closing Date, an Officer’s Certificate signed by a Responsible Person of the Issuer, stating that (a) a review of the Issuer’s
        activities and of its performance under this Indenture during the prior year has been made under a Responsible Person’s supervision and (b) to the Responsible Person’s knowledge, based on the review, the Issuer has fulfilled in all material
        respects its obligations under this Indenture throughout the prior year or, if there has been a failure to fulfill an obligation in any material respect, stating each failure known to the Responsible Person and the nature and status of the
        failure.  A copy of the Officer’s Certificate may be obtained by any Noteholder or Person certifying it is a Note Owner by a request to the Indenture Trustee at its Corporate Trust Office.  The Issuer’s obligation to deliver an Officer’s
        Certificate under this Section 3.9 will terminate on the payment in full of the Notes.

       

      Section 3.10    Merger and Consolidation; Transfer of Assets.  The
        Issuer will not merge or consolidate with or into any Person or transfer all or substantially all of its assets, unless:

       

      (a) Surviving Person.  The Person (if other than the Issuer) formed by or
        surviving the merger or consolidation, or that acquires those assets, (i) is organized and existing under the laws of the United States or any State and (ii) assumes, by an indenture supplemental to this Indenture (unless the assumption happens by
        operation of law), executed and delivered to the Indenture Trustee, in form reasonably satisfactory to the Indenture Trustee, the due and punctual payment of principal of and interest on the Notes and the performance of the other obligations under
        this Indenture and the other Transaction Documents to be performed by the Issuer;

       

      (b) Subordination.  For a transfer of the assets included in the Collateral, the
        Person who acquires those assets agrees by means of the supplemental indenture executed and delivered to the Indenture Trustee that (i) all right, title and interest transferred will be subject and subordinate to the rights of the Noteholders, (ii)
        unless stated in the supplemental indenture, that Person will indemnify the Issuer for fees, expenses, losses, damages and liabilities (including fees and expenses of defending itself against any loss, damage or liability) related to this Indenture
        and the Notes and (iii) that Person will make all necessary filings, if any, including filings with the Commission required by the Exchange Act for the Notes;

       

      (c) No Default or Event of Default.  Immediately after giving effect to the
        merger, consolidation or transfer, no Default or Event of Default will have occurred and be continuing;

       

      (d) Rating Agency Condition.  The Rating Agency Condition has been satisfied for
        the merger, consolidation or transfer;

       

      (e) Opinion.  The Issuer has received an Opinion of Counsel (with a copy to the
        Indenture Trustee) stating that the merger, consolidation or transfer will not cause (i) any security issued by the Issuer to be deemed sold or exchanged for purposes of Section 1001 of the Code or (ii) the Issuer to be treated as an association or
        publicly traded partnership taxable as a corporation for U.S. federal income tax purposes;

       

      (f) Actions.  Any action necessary to maintain the Lien and security interest
        Granted by this Indenture has been taken; and

       

      
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      (g) Conditions.  The Issuer has delivered to the Depositor, the Servicer, the
        Owner Trustee and the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that the merger, consolidation or transfer and the supplemental indenture comply with this Article III and that all the conditions in this
        Indenture for the merger, consolidation or transfer have been satisfied.

       

      Section 3.11    Successor or Transferee.  (a) On a merger or
        consolidation of the Issuer or a transfer under Section 3.10, the Person formed by or surviving the merger or consolidation (if other than the Issuer) will succeed to, and be substituted for, and may exercise the rights and powers of, the Issuer
        under this Indenture with the same effect as if that Person had been named as the Issuer in this Indenture and (b) for a transfer of the assets of the Issuer under Section 3.10, the predecessor Issuer will be released from its obligations under
        this Indenture to be performed by the successor Issuer for the Notes immediately on receipt of notice by the Indenture Trustee stating that the Issuer is to be released.

       

      Section 3.12    No Other Activities.  The Issuer will not engage in
        activities other than financing, acquiring, owning and pledging the Trust Property as described in the Transaction Documents, entering into the Transaction Documents and activities incidental to those activities.

       

      Section 3.13    Further Acts and Documents.  On request of the
        Indenture Trustee, the Issuer will take action and execute and deliver additional documents reasonably required to perform and carry out the purposes of this Indenture.

       

      Section 3.14    Restricted Payments.

       

      (a) No Set-off.  The Issuer will not, directly or indirectly, (i) make payments
        (by reduction of capital or otherwise) to the Owner Trustee or the Certificateholders, (ii) redeem, purchase, retire or acquire for value an ownership interest in the Issuer or (iii) set aside or segregate amounts for those purposes, except in any
        of such cases as permitted under this Indenture and the other Transaction Documents.

       

      (b) No Other Payments.  The Issuer will not, directly or indirectly, make
        payments to or distributions from the Bank Accounts except according to the Transaction Documents.

       

      Section 3.15    Notice of Events of Default.  The Issuer will notify
        the Indenture Trustee, the Servicer and the Rating Agencies as soon as practicable, but in any event within five (5) Business Days after a Responsible Person of the Issuer has actual knowledge of an Event of Default.

       

      Section 3.16    Review of Issuer’s Records.  The Issuer will maintain
        records and documents relating to its performance under this Indenture according to its customary business practices.  Upon reasonable request not more than once during any calendar year, and with reasonable notice, the Issuer will give the
        Indenture Trustee (or its representatives) access to the records and documents to conduct a review of the Issuer’s performance under this Indenture.  Any access or review will be conducted at the Issuer’s offices during its normal business hours at
        a time reasonably convenient to the Issuer and in a manner that will minimize disruption to its business operations.  Any access or review will be subject to the Issuer’s security, confidentiality and privacy policies and any legal, regulatory and
        data protection policies.  Notwithstanding the

       

      
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      foregoing, the permissive right of the Indenture Trustee to access and review the Issuer’s records shall not constitute an obligation of the Indenture Trustee to do so.

       

      Section 3.17    Issuer’s Representations and Warranties.  The Issuer
        represents and warrants to the Indenture Trustee as of the Closing Date and each Acquisition Date:

       

      (a) Organization and Qualification.  The Issuer is duly formed and validly
        existing as a statutory trust in good standing under the laws of the State of Delaware.

       

      (b) Power, Authority and Enforceability.  The Issuer has the power and authority
        to execute, deliver and perform its obligations under the Transaction Documents to which it is a party.  The Issuer has authorized the execution, delivery and performance of the Transaction Documents to which it is a party.  The Transaction
        Documents to which it is a party are the legal, valid and binding obligation of the Issuer enforceable against the Issuer, except as may be limited by insolvency, bankruptcy, reorganization or other laws relating to the enforcement of creditors’
        rights or by general equitable principles.

       

      (c) No Conflicts and No Violation.  The completion of the transactions
        contemplated by the Transaction Documents to which it is a party and the performance of its obligations under such documents will not (i) conflict with, or be a material breach or material default under any indenture, mortgage, deed of trust, loan
        agreement, guarantee or similar document under which the Issuer is a debtor or guarantor, (ii) result in the creation or imposition of a Lien on the Issuer’s properties or assets under the terms of any indenture, mortgage, deed of trust, loan
        agreement, guarantee or similar document (other than this Indenture), (iii) violate the Trust Agreement or (iv) violate a Law or, to the Issuer’s knowledge, an order, rule or regulation of a federal or State court, regulatory body, administrative
        agency or other governmental instrumentality having jurisdiction over the Issuer or its properties that applies to the Issuer, which, in each case of clauses (i) through (iv), would reasonably be expected to have a Material Adverse Effect.

       

      (d) No Proceedings.  To the Issuer’s knowledge, there are no proceedings or
        investigations pending or threatened in writing before a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Issuer or its properties (i) asserting the invalidity of the
        Transaction Documents or the Notes, (ii) seeking to prevent the issuance of the Notes or the completion of the transactions contemplated by the Transaction Documents, (iii) seeking any determination or ruling that would reasonably be expected to
        have a Material Adverse Effect or would materially adversely impact the validity or enforceability of the Notes or (iv) relating to the Issuer that would reasonably be expected to (A) affect the treatment of the Notes as indebtedness for purposes
        of U.S. federal and State income tax, franchise tax, and any other tax imposed on or measured in whole or in part by income, (B) be deemed to cause a taxable exchange of the Notes for U.S. federal income tax purposes or (C) cause the Issuer to be
        treated as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes, in each case, other than any proceedings that, to the Issuer’s knowledge, would not reasonably be expected to have a material
        adverse effect on the Issuer, the performance by the Issuer of its obligations under, or the validity and enforceability of, the Transaction Documents or the Notes or the tax treatment of the Issuer or the Notes.

       

      
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      (e) No Investment Company.  The Issuer is not an “investment company” as defined
        in the Investment Company Act.  In making this determination, the Issuer is relying on the definition in Section 3(c)(5)(A) of the Investment Company Act, although other exclusions or exemptions may also be available to the Issuer.

       

      (f) Volcker Rule.  The Issuer is structured not to be a “covered fund” under the
        regulations adopted to implement Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly known as the “Volcker Rule.”

       

      Section 3.18    Issuer’s Representations and Warranties About Security
          Interest.  The Issuer represents and warrants to the Indenture Trustee as of the Closing Date and each Acquisition Date, which representations and warranties will survive the termination of this Indenture and may not be waived by the
        Indenture Trustee:

       

      (a) Valid Security Interest.  This Indenture creates a valid and continuing
        security interest (as defined in the applicable UCC) in the Collateral in favor of the Indenture Trustee which is prior to all other Liens, other than Permitted Liens, and is enforceable against creditors of, purchasers from and transferees and
        absolute assignees of the Issuer.

       

      (b) Type.  The Receivables are either “accounts” or “payment intangibles” within
        the meaning of the applicable UCC.

       

      (c) Good Title.  The Issuer owns and has good title to the Collateral free and
        clear of any Lien, other than Permitted Liens.  The Issuer has received all consents and approvals required by the terms of the Collateral to Grant to the Indenture Trustee all of its right, title and interest in the Collateral, except if a
        requirement for consent or approval is extinguished under the applicable UCC.

       

      (d) Filing Financing Statements.  The Issuer has caused, or will cause within ten
        (10) days after the Closing Date, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law to perfect the security interest Granted in the Collateral to the Indenture
        Trustee under this Indenture.  All financing statements filed or to be filed against the Issuer in favor of the Indenture Trustee under this Indenture describing the Collateral will contain a statement to the following effect: “A purchase, absolute
        assignment or transfer of or grant of a security interest in any collateral described in this financing statement will violate the rights of the Secured Parties.”

       

      (e) No Other Sale, Grant or Financing Statements.  Other than the security
        interest Granted to the Indenture Trustee under this Indenture, the Issuer has not sold or Granted a security interest in any of the Collateral.  The Issuer has not authorized the filing of and is not aware of any financing statements against the
        Issuer that include a description of collateral covering any of the Collateral, other than financing statements relating to the security interest Granted to the Indenture Trustee under this Indenture.  The Issuer is not aware of any judgment or tax
        Lien filings against it.

       

      (f) Securities Account.  All Permitted Investments have been and will be credited
        to a Securities Account.  The Securities Intermediary for each Securities Account has agreed to treat

       

      
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      all assets credited to the Securities Accounts as “financial assets” within the meaning of the applicable UCC.

       

      (g) Securities Intermediary Agreement.  The Issuer has delivered to the Indenture
        Trustee a fully executed Account Control Agreement (1) that provides that the agreement is governed solely by the law of the State of New York and that the law of the State of New York shall govern all issues specified in Article 2(1) of the Hague
        Securities Convention, (2) pursuant to which the Securities Intermediary has agreed to comply with all instructions originated by the Indenture Trustee relating to the Securities Accounts without further consent by the Issuer, and (3) with a
        Securities Intermediary that at the time of this Indenture has one or more offices (within the meaning of the Hague Securities Convention) in the United States of America which satisfies the “qualifying office” condition provided in the second
        sentence of Article 4(1) of the Hague Securities Convention.

       

      (h) Name of Securities Accounts.  The Securities Accounts are not in the name of
        a Person other than the Issuer or the Note Paying Agent.  The Issuer has not consented to the Securities Intermediary of a Securities Account complying with entitlement orders of a Person other than the Indenture Trustee.

       

      ARTICLE IV

        SATISFACTION AND DISCHARGE

       

      Section 4.1    Satisfaction and Discharge of Indenture.

       

      (a) Conditions to Satisfaction and Discharge.  Except as stated in Section
        4.1(c), this Indenture will cease to be of further effect for the Notes if:

       

      (i) either (A) the Notes that have been authenticated and delivered
        (other than (1) Notes that have been destroyed, lost or stolen and that have been replaced or paid under Section 2.7 and (2) Notes for which payment money has been deposited in trust or segregated and held in trust by the Issuer and later paid to
        the Issuer or discharged from the trust under Section 3.3) have been delivered to the Indenture Trustee for cancellation or (B) the Notes not delivered to the Indenture Trustee for cancellation have become due and payable and the Issuer has
        deposited or caused to be deposited with the Indenture Trustee money in trust in an amount sufficient to pay and discharge the outstanding Note Balance of the Notes and interest accrued on the Notes on the Redemption Date;

       

      (ii)             the Issuer has paid or caused to be paid all money payable by it under the Transaction Documents; and

       

      (iii)            the Issuer has delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel meeting the requirements of Section 11.3.

       

      (b) Acknowledgement of Satisfaction and Discharge.  After the satisfaction and
        discharge of the Indenture under Section 4.1(a), the Indenture Trustee will (i) upon receipt of an Issuer Order and at the expense of the Issuer, execute documents acknowledging satisfaction and discharge of this Indenture and (ii) at the request
        of the Owner Trustee, the Indenture Trustee will deliver to the Owner Trustee a certificate stating that all Noteholders have been paid in full.

       

      
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      (c) Continuing Rights and Obligations.  After the satisfaction and discharge of
        this Indenture, this Indenture will continue for (i) rights of registration of transfer and exchange, (ii) replacement of mutilated, destroyed, lost or stolen Notes, (iii) the rights of Noteholders to receive payments of principal of and interest
        on the Notes, (iv) the obligations of the Indenture Trustee and any Note Paying Agent under Section 3.3, (v) the rights, obligations and immunities of the Indenture Trustee under this Indenture and (vi) the rights of the Secured Parties as
        beneficiaries of this Indenture in the property deposited with the Indenture Trustee payable to them for a period of two years after the satisfaction and discharge.

       

      ARTICLE V

        EVENTS OF DEFAULT; REMEDIES

       

      Section 5.1    Events of Default.

       

      (a) Events of Default.  The occurrence of one of the following events will be an
        event of default under this Indenture (each, an “Event of Default”):

       

      (i) the Issuer fails to pay interest due on any Class of Notes of the
        Controlling Class on any Payment Date, and the failure continues for five (5) days or more;

       

      (ii)             the Issuer fails to pay the principal of or any Make-Whole Payments on a Note on the applicable Final Maturity Date;

       

      (iii)            the Issuer fails to observe or perform a material covenant or agreement of the Issuer in this Indenture (other than to pay interest on or principal of the Notes),
        or a representation or warranty of the Issuer made in this Indenture or in an Officer’s Certificate or other document delivered under this Indenture is incorrect in any material respect when made, and in each case, the failure or error continues
        for at least sixty (60) days after the Issuer receives written notice from the Indenture Trustee (upon receipt of written notice or actual knowledge thereof by a Responsible Person of the Indenture Trustee), or the Issuer and the Indenture Trustee
        receive written notice from the Noteholders of at least 25% of the Note Balance of the Controlling Class, in each case, stating the failure or error, requiring it to be corrected and stating that the notice is a “Notice of Default”; or

       

      (iv)             an Insolvency Event of the Issuer occurs.

       

      (b) Issuer to Notify.  In addition to the Issuer’s notification obligations set
        forth in Section 3.15, the Issuer will notify the Indenture Trustee within five (5) Business Days after a Responsible Person of the Issuer has knowledge of the occurrence of a Default under Section 5.1(a)(iii), which notice will describe the
        Default, the status of the Default and what action the Issuer is taking to correct the Default.  The Issuer will deliver a copy of the notice to each Qualified Institution (if not the Indenture Trustee) maintaining a Bank Account.

       

      (c) Indenture Trustee to Notify.  In addition to the notice obligations of the
        Indenture Trustee under Section 6.5(a), the Indenture Trustee will notify the Noteholders within five (5) Business Days after a Responsible Person of the Indenture Trustee has actual knowledge of the occurrence of an Event of Default.

       

      
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      Section 5.2    Acceleration of Maturity; Rescission.

       

      (a) Acceleration.  If an Event of Default, other than an Event of Default under
        Section 5.1(a)(iv), occurs and is continuing, the Indenture Trustee may, or the Noteholders of a majority of the Note Balance of the Controlling Class may, declare the Notes to be accelerated by notifying the Issuer (and the Indenture Trustee if
        given by the Noteholders).  On acceleration, the unpaid Note Balance of the Notes, together with accrued and unpaid interest and unpaid Make-Whole Payments, if any, will become immediately due and payable.  If an Event of Default in Section
        5.1(a)(iv) occurs, all unpaid principal of and accrued and unpaid interest on the Notes, and all other amounts payable under this Indenture (including unpaid Make-Whole Payments), will automatically become immediately due and payable without a
        declaration or other act of the Indenture Trustee or a Noteholder.  On the declaration of acceleration or upon actual knowledge of a Responsible Person of the Indenture Trustee of an automatic acceleration, the Indenture Trustee will promptly
        notify each Noteholder and each Qualified Institution (if not the Indenture Trustee) maintaining a Bank Account.

       

      (b) Rescission of Acceleration.  The Noteholders of a majority of the Note
        Balance of the Controlling Class, by notifying the Issuer and the Indenture Trustee, may rescind a declaration of acceleration before a judgment or decree for payment of the amount due has been obtained by the Indenture Trustee as stated in this
        Article V if:

       

      (i) the Issuer has paid or deposited with the Indenture Trustee an
        amount sufficient to (A) pay the due and unpaid principal of and interest on the Notes and all other amounts that would then be due under this Indenture or on the Notes if the Event of Default giving rise to the acceleration had not occurred, (B)
        pay all amounts owed to the Indenture Trustee under Section 6.7 and (C) pay all other outstanding fees and expenses of the Issuer; and

       

      (ii)             all Events of Default, other than the non-payment of the principal of the Notes that has become due solely by acceleration, have been corrected or waived under
        Section 5.14.

       

      Section 5.3    Collection of Indebtedness by Indenture Trustee.

       

      (a) Overdue Amounts.  If an Event of Default under Section 5.1(a)(i) or (ii)
        occurs and is continuing, the Issuer, on demand of the Indenture Trustee, will pay to the Note Paying Agent for the benefit of the Noteholders, the overdue amount with interest at the rate of interest then applicable to the Notes.

       

      (b) Collection Costs.  In addition, the Issuer will pay the costs of collection,
        including the expenses of the Indenture Trustee and its agents, counsel, accountants and experts due to the Indenture Trustee under Section 6.7.

       

      (c) Proceedings.  If the Issuer fails to pay those amounts and the collection
        costs set forth in Section 5.3(b) on demand, the Indenture Trustee, in its own name and as trustee of an express trust, may start a Proceeding to collect the money due and unpaid, and may pursue the Proceeding to final judgment, and may enforce the
        judgment against the Issuer and collect the money due and unpaid in the manner provided by law out of the Collateral.

       

      
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      Section 5.4    Trustee May File Proofs of Claim.

       

      (a) Proofs of Claim.  If there is a Proceeding involving the Issuer under the
        Bankruptcy Code or another bankruptcy, insolvency or other similar law, or in case a trustee, liquidator, receiver or similar official has been appointed for or taken possession of the Issuer or its property, the Indenture Trustee may:

       

      (i) file a proof of claim for the due and unpaid principal of and
        interest on the Notes and file other proofs of claim (including any claims for compensation or indemnification under Section 6.7) or documents necessary or advisable to have the claims of the Indenture Trustee on behalf of the Secured Parties
        allowed in the Proceedings or in other judicial proceedings involving the Issuer, its creditors and its property;

       

      (ii)             unless prohibited by applicable Law, vote on behalf of the Secured Parties in the election of a trustee, a standby trustee or a Person performing similar functions
        in the Proceedings; and

       

      (iii)            collect and receive any money or other property payable or deliverable on the claims and pay all amounts received on the claims of the Secured Parties, including
        the claims asserted by the Indenture Trustee on their behalf.

       

      (b) Authorization by Noteholders.  Each Noteholder authorizes a trustee,
        liquidator, receiver or similar official in a Proceeding to make payments to the Indenture Trustee and, if the Indenture Trustee consents to make payments directly to the Noteholders, to pay to the Indenture Trustee the amounts owed to the
        Indenture Trustee under Section 6.7.

       

      (c) No Right to Consent or Vote.  Except as permitted under Section 5.4(a)(ii),
        this Indenture (i) does not authorize the Indenture Trustee to authorize or consent to or vote for or accept or adopt on behalf of a Noteholder a plan of reorganization, arrangement, adjustment or composition affecting the Notes and (ii) does not
        limit the rights of a Noteholder to authorize the Indenture Trustee to vote on the claim of a Noteholder in the Proceeding.

       

      Section 5.5    Enforcement of Claims Without Possession of Notes.

       

      (a) Notes not Required.  The Indenture Trustee may enforce its rights and make
        claims under this Indenture, or under the Notes, without the possession of the Notes or the production of the Notes in a Proceeding.  A Proceeding started by the Indenture Trustee will be brought in its own name as trustee of an express trust, and
        any recovery of judgment, subject to the payment of the expenses and indemnity of the Indenture Trustee and its agents, counsel, accountants and experts due to the Indenture Trustee under Section 6.7, will be for the benefit of the Secured Parties
        for which the judgment has been recovered.

       

      (b) Proceeding.  In any Proceeding brought by the Indenture Trustee (and any
        Proceeding involving the interpretation of this Indenture to which the Indenture Trustee is a party), the Indenture Trustee will be held to represent all the Secured Parties, and it will not be necessary to make any Secured Party, including a
        Noteholder, a party to the Proceeding.

       

      
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      Section 5.6    Remedies; Priorities.

       

      (a) Remedies.  If the Notes have been accelerated under Section 5.2(a) and the
        declaration of acceleration has not been rescinded according to Section 5.2(b), the Indenture Trustee may do one or more of the following (subject to Section 5.7), and will at the direction of the Noteholders of a majority of the Note Balance of
        the Controlling Class:

       

      (i) start a Proceeding in its own name and as trustee of an express
        trust for the collection of all amounts then payable on the Notes or under this Indenture on the Notes, enforce any judgment obtained and collect from the Issuer money adjudged due;

       

      (ii)             subject to Section 5.6(c), sell or liquidate all or any part of the Collateral or rights or interest in the Collateral at one or more public or private sales called
        and conducted in any manner permitted by law;

       

      (iii)             exercise any remedies of a secured party under the UCC; and

       

      (iv)            take any other action to protect and enforce the rights and remedies of the Indenture Trustee and the Noteholders.

       

      (b) Notice of Sale or Liquidation of Collateral.  The Indenture Trustee will
        notify each Noteholder and the Depositor of a sale or liquidation under Section 5.6(a)(ii) at least fifteen (15) days before the sale or liquidation.  A Noteholder, the Depositor or the Servicer may submit a bid during the sale or liquidation.

       

      (c) Limitation on Collateral Liquidation.  The Indenture Trustee may not sell or
        liquidate the Collateral unless:

       

      (i) the Event of Default is described in Section 5.1(a)(i) or (ii);
        or

       

      (ii)             the Event of Default is described in Section 5.1(a)(iii) and:

       

      
        
          	

                	(A)	
                  the Noteholders representing 100% of the Note Balance of the Notes consent to the sale or liquidation; or

                

        

      

       

      
        
          	

                	(B)	
                  the proceeds of the sale or liquidation are expected to be sufficient to pay in full all amounts owed by the Issuer to the Secured Parties including all principal of and accrued interest and any Make-Whole Payments on the Notes; or

                

        

      

       

      (iii) the Event of Default is described in Section 5.1(a)(iv) and:

       

      
        
          	

                	(A)	
                  the Noteholders representing 100% of the Note Balance of the Controlling Class consent to the sale or liquidation; or

                

        

      

       

      
        
          	

                	(B)	
                  the proceeds of the sale or liquidation are expected to be sufficient to pay in full all amounts owed by the Issuer to the Secured Parties

                

        

      

       

      
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                      including all principal of and accrued interest and any Make-Whole Payments on the Notes; or

                    

                  

          

        

         

      

      
        
          	

                	(C)	
                  the Indenture Trustee (1) determines that the Collateral will not continue to provide sufficient money for the payment of all amounts owed to the Secured Parties, as those payments would have become due if the Notes had not been
                    accelerated and (2) obtains the consent of Noteholders of at least 66-2/3% of the Note Balance of the Controlling Class.

                

        

      

       

      In determining whether the condition in clause (ii)(B), (iii)(B) or (iii)(C) (1) above has been satisfied, the Indenture Trustee may rely on an opinion of a nationally-recognized Independent
        investment banking firm or firm of certified public accountants on the expected proceeds or on the sufficiency of the Collateral for that purpose.

       

      (d) Proceeds of Collateral.  Any money or property collected by the Indenture
        Trustee after the occurrence of an Event of Default that has not been waived or cured and an acceleration of the Notes will be deposited in the Collection Account for distribution according to Section 8.2(e) on the Payment Date after the Collection
        Period during which those amounts are collected.  In all other circumstances, Section 8.2(c) will continue to apply after an Event of Default.

       

      Section 5.7    Optional Preservation of Collateral.  If the Notes have
        been accelerated under Section 5.2(a) and the declaration of acceleration has not been rescinded, the Indenture Trustee may elect to maintain possession of the Collateral, subject to Section 5.13(c).  The Indenture Trustee will take into account
        that the Collections and other amounts expected to be received on the Collateral must be sufficient to pay the unpaid principal of and accrued and unpaid interest and any Make-Whole Payments on the Notes when determining whether or not to maintain
        possession of part of the Collateral.  In making this determination, the Indenture Trustee may rely on an opinion of a nationally-recognized Independent investment banking firm or firm of certified public accountants.

       

      Section 5.8    Limitation on Suits.

       

      (a) Proceedings.  No Noteholder has the right to start a Proceeding under this
        Indenture or for the appointment of a receiver or trustee, or for any other remedy under this Indenture, except (1) pursuant to the dispute resolution procedures described in Section 11.2 of the Transfer and Servicing Agreement or (2) if:

       

      (i) the Noteholder has notified the Indenture Trustee of a continuing
        Event of Default;

       

      (ii)             the Noteholders of at least 25% of the Note Balance of the Controlling Class have requested the Indenture Trustee to start the Proceeding for the Event of Default
        in its own name as Indenture Trustee under this Indenture;

       

      (iii)            the Noteholders have offered reasonable indemnity satisfactory to the Indenture Trustee against fees, expenses, losses, damages, claims and liabilities that may

       

      
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      be incurred by the Indenture Trustee, or its agents, counsel, accountants and experts, in complying with the request;

       

      (iv)             the Indenture Trustee has failed to start the Proceedings for sixty (60) days after it receives the notice, request and offer of indemnity; and

       

      (v) the Noteholders of a majority of the Note Balance of the
        Controlling Class have not given the Indenture Trustee a direction inconsistent with the request during that 60 day period.

       

      (b) No Right to Impair.  No Noteholder has the right to impair the rights of
        another Noteholder or to seek or obtain priority or preference over another Noteholder or to enforce any right under this Indenture, except in the manner stated in this Indenture.

       

      (c) Conflicting Requests.  If the Indenture Trustee receives conflicting requests
        under Section 5.8(a)(ii) from two or more groups of Noteholders, each evidencing less than a majority of the Note Balance of the Controlling Class, the Indenture Trustee will take the action requested by the Noteholders representing the greatest
        percentage of the Note Balance of the Controlling Class, notwithstanding any other provision of this Indenture.

       

      Section 5.9          Unconditional Rights to Receive Principal and Interest.  Each Noteholder has an absolute and unconditional right to receive payment of the
        principal of and interest on its Note on or after the due dates stated in the Note or in this Indenture (or, for redemption, on or after the Redemption Date) and to start a Proceeding for the enforcement of the payment according to Section 5.8. 
        Those rights may not be impaired or affected without the consent of the Noteholder.

       

      Section 5.10    Restoration of Rights and Remedies.  If the Indenture
        Trustee or a Noteholder has started a Proceeding to enforce a right or remedy under this Indenture and the Proceeding has been discontinued or abandoned or has been determined adversely to the Indenture Trustee or to the Noteholder, then the
        Issuer, the Indenture Trustee and the Noteholders, subject to a determination in the Proceeding, will be restored to their former positions under this Indenture, and all rights and remedies of the Indenture Trustee and the Noteholders will continue
        as though no Proceeding had been started.

       

      Section 5.11    Rights and Remedies Cumulative.  No right or remedy of
        the Indenture Trustee or the Noteholders under this Indenture is intended to be exclusive of any other right or remedy, and every right and remedy, if permitted by law, will be cumulative and in addition to every other right and remedy under this
        Indenture.  The exercise of a right or remedy will not prevent the exercise of another right or remedy at the same time.  The Indenture Trustee’s right to seek and recover judgment on the Notes or under this Indenture will not be affected by the
        seeking, obtaining or use of other relief under this Indenture.  Neither the Lien of this Indenture nor the rights or remedies of the Indenture Trustee or the Noteholders will be impaired by the recovery of a judgment by the Indenture Trustee
        against the Issuer or by the execution of a judgment on the Collateral.

       

      Section 5.12    Delay or Omission Not a Waiver.  No delay or omission
        of the Indenture Trustee or a Noteholder to exercise a right or remedy after a Default or Event of Default will

       

      
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      impair the right or remedy, or be a waiver of the Default or Event of Default.  Every right and remedy given by this Article V or by law to the Indenture Trustee or to the Noteholders may be exercised as often as deemed
        advisable by the Indenture Trustee or by the Noteholders.

       

      Section 5.13    Control by Noteholders.  The Noteholders of a majority
        of the Note Balance of the Controlling Class have the right to direct the time, method and place of conducting a Proceeding for a remedy available to the Indenture Trustee for the Notes or exercising a trust or power of the Indenture Trustee,
        subject to the following terms:

       

      (a) No Conflict.  The direction does not conflict with Law or with this
        Indenture.

       

      (b) Direction to Sell or Liquidate.  Except under Section 5.6(c), a direction to
        the Indenture Trustee to sell or liquidate the Collateral must have been made by the Noteholders of 100% of the Note Balance of the Controlling Class.

       

      (c) Non-Unanimous Directions.  If the Indenture Trustee elects to retain the
        Collateral under Section 5.7, then a direction to the Indenture Trustee by Noteholders of less than 100% of the Note Balance of the Controlling Class to sell or liquidate the Collateral will not be effective.

       

      (d) Other Action.  The Indenture Trustee may take other action considered
        advisable by the Indenture Trustee that is not inconsistent with the direction from the Noteholders of a majority of the Note Balance of the Controlling Class.

       

      (e) Adverse Action.  The Indenture Trustee need not take an action for which it
        will not be adequately indemnified or that it determines might have a material adverse effect on the rights of Noteholders not consenting to the action.

       

      Section 5.14    Waiver of Defaults and Events of Default.

       

      (a) Waiver by Controlling Class.  The Noteholders of a majority of the Note
        Balance of the Controlling Class may waive a Default or Event of Default except an Event of Default (i) in the payment of principal of or interest on the Notes (other than an Event of Default relating to failure to pay principal due only by reason
        of acceleration) or (ii) for a covenant or term of this Indenture that cannot be amended, supplemented or modified without the consent of all Noteholders.

       

      (b) Effect of Waiver.  On any waiver, the Default or Event of Default will be
        considered not to have occurred for all purposes of this Indenture.  No waiver will extend to any other Default or Event of Default or impair any right relating to any other Default or Event of Default.

       

      Section 5.15    Agreement to Pay Costs.  The parties to this Indenture
        agree, and each Noteholder by its acceptance of a Note will be deemed to have agreed, that a court may in its discretion require, in a Proceeding for the enforcement of a right or remedy under this Indenture, or in a Proceeding against the
        Indenture Trustee for an action taken or not taken by it as Indenture Trustee, the filing by a party litigant in the Proceeding of an agreement to pay the costs of the Proceeding, and that the court may in its discretion assess reasonable costs,
        including

      
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      reasonable attorneys’ fees, against a party litigant in the Proceeding.  This Section 5.15 will not apply to (a) a Proceeding started by the Indenture Trustee, (b) a Proceeding started by a Noteholder or group of
        Noteholders holding more than 10% of the Note Balance of the Notes (or for a Proceeding for the enforcement of a right or remedy under this Indenture that is started by the Controlling Class, holding more than 10% of the Note Balance of the
        Controlling Class) or (c) a Proceeding started by a Noteholder for the enforcement of the payment of principal of or interest on a Note on or after the respective due dates expressed in the Note and in this Indenture (or, for redemption, on or
        after the Redemption Date).

       

      Section 5.16    Waiver of Stay or Extension Laws.  The Issuer agrees
        that it will not plead or in any manner claim or take the benefit of, a stay or extension that may affect the performance of its obligations under this Indenture, and the Issuer waives the benefit of such law.

       

      Section 5.17    Performance and Enforcement of Obligations.

       

      (a) Actions Requested by Indenture Trustee.  At the Administrator’s expense, the
        Issuer will promptly take any lawful action the Indenture Trustee requests to (i) compel the performance by (A) the Depositor and the Servicer of their obligations to the Issuer under the Transfer and Servicing Agreement and the Master Trust
        Receivables Transfer Agreement or (B) the Depositor and the Originators of their obligations under the Originator Receivables Transfer Agreement and (ii) exercise any rights, remedies, powers, privileges and claims available to the Issuer under
        those agreements as directed by the Indenture Trustee.

       

      (b) Exercise by Indenture Trustee.  If an Event of Default has occurred and is
        continuing, (i) the Indenture Trustee may, and at the written direction of the Noteholders of at least 66-2/3% of the Note Balance of the Controlling Class will, exercise all rights, remedies, powers, privileges and claims of the Issuer against (A)
        the Depositor or the Servicer under the Transfer and Servicing Agreement and the Master Trust Receivables Transfer Agreement, (B) the Depositor and the Originators under the Originator Receivables Transfer Agreement, (C) the Cap Counterparty under
        the Cap Agreement, including the right or power to take any action to compel or secure performance or observance by those Persons of their obligations to the Issuer under those agreements, and to give a consent, request, notice, direction,
        approval, extension or waiver under those agreements and (ii) the right and power of the Issuer to take any such action will be suspended.

       

      ARTICLE VI

        INDENTURE TRUSTEE

       

      Section 6.1    Indenture Trustee’s Obligations.

       

      (a) Standard of Care.  If an Event of Default has occurred and is continuing, the
        Indenture Trustee will exercise the rights and powers vested in it under this Indenture using the same degree of care and skill as a prudent person would use under the circumstances in the conduct of that person’s own affairs.

       

      (b) Obligations; Reliance.  Except during the continuance of an Event of Default:

       

      
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      (i) the Indenture Trustee agrees to perform the duties and only such
        duties as specifically stated in this Indenture and no implied covenants, duties (including fiduciary duties) or obligations are to be read into this Indenture against the Indenture Trustee; and

       

      (ii) in the absence of willful misconduct, bad faith or negligence on
        its part, the Indenture Trustee may conclusively rely, for the truth of the statements and the correctness of the opinions furnished to it, on certificates or opinions furnished to it and, if required by this Indenture, conforming to the
        requirements of this Indenture.  The Indenture Trustee will examine the certificates and opinions to determine whether or not they conform as to form to the requirements (but need not confirm or investigate the accuracy of mathematical calculations
        or other facts therein), if any, of this Indenture.

       

      (c) Indenture Trustee Liable.  The Indenture Trustee will not be relieved from
        liability for its own willful misconduct, bad faith or negligence, except that:

       

      (i) this Section 6.1(c) does not limit the effect of Section 6.1(b);

       

      (ii) the Indenture Trustee will not be liable for an error of
        judgment made in good faith unless it is proved that the Indenture Trustee was negligent in determining the relevant facts;

       

      (iii)            the Indenture Trustee will not be liable for any action taken or not taken in good faith according to this Indenture or the Transfer and Servicing Agreement or a
        direction received by it from the Noteholders in accordance with the provisions of this Indenture or the Transfer and Servicing Agreement; and

       

      (iv) the Indenture Trustee will not be liable for any action taken or
        not taken by it in good faith in the administration of any Noteholder or Verified Note Owner vote about whether to direct the Asset Representations Reviewer to conduct an Asset Representations Review so long as the administration of such vote
        conforms in all material respects to the Indenture Trustee’s standard internal vote solicitation process.

       

      (d) Not Liable for Interest.  The Indenture Trustee will not be liable for
        interest on money received by it, except as the Indenture Trustee may agree in writing with the Issuer.

       

      (e) Not Required to Segregate.  The Indenture Trustee need not segregate any
        funds held by it in trust under this Indenture from other funds unless required by Law, this Indenture or the Transfer and Servicing Agreement.

       

      (f) Section Governs.  Whether or not expressly so provided, every provision of
        this Indenture relating to the conduct of the Indenture Trustee, the liability of the Indenture Trustee or giving protection to the Indenture Trustee is subject to this Section 6.1 and to the TIA.

       

      (g) No Deemed Knowledge.  The Indenture Trustee will not be deemed to have
        knowledge of a breach of the Eligibility Representation, Default or any Event of Default or any other fact (including whether any reacquisition or acquisition request remains unresolved for 180 days) or event unless (i) a Responsible Person of the
        Indenture Trustee has actual knowledge of the breach, Default, Event of Default or other fact or event or (ii) where written notice is

       

      
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      required, a Responsible Person of the Indenture Trustee has actually received written notice of the specific breach, Default, Event of Default or other fact or event at its Corporate Trust Office, and such notice
        specifically identifies the Issuer, this Indenture and such breach, Default, Event of Default, or other fact or event.  Any notice of an occurrence of a breach of the Eligibility Representation under a Receivables Transfer Agreement delivered to
        the Indenture Trustee shall specifically identify the Receivables in breach.  Knowledge or information acquired by U.S. Bank National Association in its capacity as Indenture Trustee, Note Paying Agent or Note Registrar, as applicable, shall not be
        imputed to U.S. Bank National Association in any other capacity in which it may act under the Transaction Documents or to any affiliate of U.S. Bank National Association and vice versa.  For the avoidance of doubt, receipt by the Indenture Trustee
        of a Review Report under the Asset Representations Review Agreement shall not constitute knowledge of any such event or breach.

       

      (h) Action upon Notice of Breach.  Upon the actual knowledge of or receipt of
        written notice by a Responsible Person of the Indenture Trustee of a material breach of an Originator’s Eligibility Representation made in Section 3.3 of the Originator Receivables Transfer Agreement, a material breach of the Servicer’s Eligibility
        Representation made in Section 3.3 of the Master Trust Receivables Transfer Agreement, or any other specified breach by the Servicer under the Transfer and Servicing Agreement, the Indenture Trustee’s sole obligations are to (i) make a demand upon
        the applicable Originator (or to cause the Depositor to make a demand upon the applicable Originator) to reacquire the Receivable under Section 3.4 of the Originator Receivables Transfer Agreement or upon the Servicer to acquire the Receivable
        under Section 3.4 of the Master Trust Receivables Transfer Agreement or Section 3.3 of the Transfer and Servicing Agreement, as applicable and (ii) to the extent amounts due under clause (i) are not remitted by the applicable Originator or the
        Servicer, to promptly provide written notice to the Parent Support Provider of the failure by such party to remit such Acquisition Amount.  Unless the Indenture Trustee receives written direction and indemnity satisfactory to the Indenture Trustee
        from a majority of the Controlling Class of the Notes specifying any additional step, including but not limited to commencing litigation, that the Indenture Trustee should take, the Indenture Trustee shall have no duty or obligation to take any
        further action to investigate or enforce remedies for breaches of representations and warranties.

       

      (i) No Duty to Monitor or Administer.  Except as expressly provided in this
        Indenture and the other Transaction Documents, the Indenture Trustee shall have no obligation to administer, service or collect the Receivables or to maintain, monitor or otherwise supervise the administration, servicing or collection of the
        Receivables.

       

      (j) Enforceable in all Capacities.  The rights, privileges, protections,
        immunities and benefits given to the Indenture Trustee in this Article VI, including its right to be indemnified, are extended to, and will be enforceable by, the Indenture Trustee in each of its capacities under this Indenture and the other
        Transaction Documents, including as Authenticating Agent, Note Registrar and Note Paying Agent under this Indenture and as a “securities intermediary” as defined in Section 8-102 of the UCC and a “bank” as defined in Section 9-102 of the UCC under
        the Account Control Agreement.

       

      (k) Not Required to Pay or Risk Funds.  The Indenture Trustee is not obligated to
        (i) exercise the rights or powers under this Indenture or the other Transaction Documents, expend or

       

      
        29

        
          

      

      risk its own funds or incur any financial liability in the performance of its obligations under this Indenture or the other Transaction Documents, including after an Event of Default, if it has reasonable grounds to
        believe that payment of such funds or adequate indemnity satisfactory to it against that risk or liability is not reasonably assured or given to it by the Trust or (ii) start, pursue or defend litigation, investigate any matter or honor the request
        or direction of the Noteholders under this Indenture (other than (A) requests, demands or directions relating to an asset representation review demand as set forth in Article XIV of this Indenture and Section 11.1 of the Transfer and Servicing
        Agreement, (B) forwarding notices related to dispute resolution procedures as set forth in Section 11.2 of the Transfer and Servicing Agreement and (C) facilitating noteholder communications pursuant to Section 7.1(c) of this Indenture), unless the
        Noteholders have offered to the Indenture Trustee reasonable security or indemnity satisfactory to it for the reasonable expenses that might be incurred by the Indenture Trustee in complying with the request or direction. Notwithstanding anything
        to the contrary in this Indenture, the Indenture Trustee will not be required to take any action if the Indenture Trustee reasonably determines that such action (x) will not be in the best interests of the Noteholders or (y) will be contrary to
        applicable Law.  The permissive right of the Indenture Trustee to take any action under the Transaction Documents shall not be construed as a duty to take such action.

       

      (l) Force Majeure.  The Indenture Trustee will not be responsible or liable for a
        failure or delay in the performance of its obligations under this Indenture from or caused by, directly or indirectly, forces beyond its control, including strikes, work stoppages, acts of war, terrorism, civil or military disturbances, nuclear
        catastrophes, fires, floods, earthquakes, storms, hurricanes or other natural catastrophes and interruptions, loss or failures of mechanical, electronic or communication systems.  The Indenture Trustee will use reasonable efforts consistent with
        accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

       

      (m) Consequential Damages.  The Indenture Trustee will not be responsible or
        liable for special, punitive, indirect or consequential losses or damages (including lost profit), even if the Indenture Trustee has been advised of the likelihood of the loss or damage and regardless of the form of action.

       

      (n) No Duty with Respect to Collateral.  The Indenture Trustee shall be under no
        duty or obligation in connection with the acquisition or Grant by the Issuer to the Indenture Trustee of any item constituting the Collateral, or to evaluate the sufficiency of the documents or instruments delivered to it by or on behalf of the
        Issuer in connection with its Grant or otherwise, in each case, in order to determine compliance with applicable requirements of and restrictions on transfer in respect of such Collateral.

       

      (o) No Duty with Respect to Risk Retention.  The Indenture Trustee will not have
        any obligation or responsibility to monitor or enforce the Sponsor’s compliance with any risk retention requirements under the U.S. Credit Risk Retention Rules or other rules or regulations relating to risk retention.  The Indenture Trustee shall
        not be charged with knowledge of such rules, nor shall it be liable to any Noteholder or other party for violation of such rules now or hereafter in effect, except as otherwise may be explicitly required by law, rule or regulation.

       

      
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      (p) Determination of One-Month LIBOR.  For as long as One-Month LIBOR is the
        Benchmark, the Indenture Trustee shall calculate One-Month LIBOR as of each LIBOR Determination Date for so long as the Class A-1b Notes are Outstanding; provided that if One-Month LIBOR does not appear on the Reuters Screen LIBOR01 Page on any
        LIBOR Determination Date the Indenture Trustee shall calculate One-Month-LIBOR using the rates solicited or as otherwise directed by the Administrator.  All calculations of One-Month LIBOR by the Indenture Trustee, in absence of manifest error,
        shall be conclusive for all purposes and binding on the Noteholders.  The Indenture Trustee shall not be responsible for determining the reference banks, rates or method used to calculate One-Month LIBOR or be liable for any error resulting from
        its calculation of One-Month LIBOR made in good faith.  In no event will the Indenture Trustee be responsible for determining any substitute or successor for One-Month LIBOR. The Indenture Trustee will not have any liability or obligation with
        respect to any determination of One-Month LIBOR by the Administrator or the selection of any replacement index and shall have no obligation to monitor or make any determination, decision or election in connection with a Benchmark Transition Event,
        Benchmark Replacement, Benchmark Replacement Adjustment and/or any Benchmark Replacement Conforming Changes (all of which shall be the sole obligation of the Administrator), even if the Administrator does not act.

       

      (q) Liability for Dissemination of Information.  Except as required by the
        Transaction Documents, the Indenture Trustee shall not be liable for the dissemination of any information contained in any Review Report or summary thereof, any 10-D or other filing, or any other dissemination of information required or made in
        accordance with the Transaction Documents and shall have no responsibility, or liability for the failure of any party to redact or remove any Personally Identifiable Information or other confidential information in any document

       

      Section 6.2    Indenture Trustee’s Rights.

       

      (a) Reliance on Documents.  The Indenture Trustee may conclusively rely on any
        document believed by it to be genuine and which appears on its face to be properly executed and signed or presented by the proper Person.  The Indenture Trustee is not required to investigate any facts or matters or to verify any calculations or
        amounts stated in any document (including the Monthly Investor Report).  The Indenture Trustee will not be liable for any action taken or not taken in good faith in reliance on a document believed by it to be genuine.

       

      (b) Reliance on Opinions.  Before the Indenture Trustee acts or does not act, it
        may require and rely on an Officer’s Certificate or an Opinion of Counsel, at the expense of the Issuer.  The Indenture Trustee will not be liable for any action taken or not taken in good faith in reliance on an Officer’s Certificate or Opinion of
        Counsel.

       

      (c) Use of Agents.  The Indenture Trustee may exercise its rights or powers under
        this Indenture or perform its obligations under this Indenture either directly or by or through agents or attorneys or a custodian or nominee.  The Indenture Trustee will not be responsible for misconduct or negligence on the part of, or for the
        supervision of, the agent, counsel, custodian or nominee appointed with due care by it under this Indenture.

       

      
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      (d) Good Faith.  The Indenture Trustee will not be liable for any action taken or
        not taken in good faith which it believes to be authorized or within its rights or powers under this Indenture so long as the action taken or not taken does not amount to negligence.

       

      (e) Advice from Counsel.  The Indenture Trustee may consult with counsel,
        accountants, appraisers or other experts or advisors, and the advice or opinion of counsel, accountants, appraisers or other experts or advisors on any matters relating to this Indenture and the Notes will be full and complete authorization and
        protection from liability for any action taken or not taken by it under this Indenture in good faith and according to the advice or opinion of that counsel, accountant, appraiser or expert or advisor.

       

      (f) No Determination of Materiality.  The Indenture Trustee shall not be required
        to determine the materiality or adverse effect of breaches of representations or warranties or other events for purposes of notice or enforcement hereunder or under any other Transaction Document.

       

      (g) Incumbency.  The Indenture Trustee may request that the Issuer and any other
        Person deliver a certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture.

       

      (h) No Duty with Respect to Regulatory Requirements.  The Indenture Trustee shall
        have no responsibility to prepare or file or make any determination with respect to any tax or securities law filing or report, or to monitor, enforce, make any determination or take any action with respect to any risk retention requirements or
        other regulatory requirements and shall have no liability for the failure of the Issuer, the Notes or the Noteholders or any other Person to satisfy any such requirements.

       

      Section 6.3    Indenture Trustee’s Individual Rights.  The Indenture
        Trustee and any Note Paying Agent, Note Registrar or Authenticating Agent under this Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may deal with the Issuer or its Affiliates with the same rights it
        would have if it were not Indenture Trustee or Note Paying Agent, Note Registrar or Authenticating Agent.

       

      Section 6.4    Indenture Trustee’s Disclaimer.  The Indenture Trustee
        will not be liable for (a) the validity or adequacy of this Indenture or the Notes, (b) the Issuer’s use of the proceeds from the Notes, (c) any statement of the Issuer in this Indenture or in the Notes, other than the Indenture Trustee’s
        certificate of authentication, or (d) any statement of the Issuer, the Depositor or the Servicer in any prospectus or offering document used for the offering or sale of the Notes.

       

      Section 6.5    Notice of Defaults and Notice of Payment Defaults.

       

      (a) Within ninety (90) days after a Responsible Person of the Indenture Trustee has
        actual knowledge of, or actually receives written notice of, a Default under this Indenture, the Indenture Trustee will mail, as described in Section 313(c) of the TIA, to each Noteholder, notice of the Default, unless the Default has been
        corrected or waived.  However, except for a Default in the payment of principal of or interest on a Note, the Indenture Trustee may withhold the notice if and so long as a committee of its Responsible Persons in good faith determines that the
        withholding of the notice is in the interests of the Noteholders.

       

      

      
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      (b) Promptly, but not later than five (5) days, after a Responsible Person of the
        Indenture Trustee has actual knowledge of, or actually receives written notice of, the failure of (i) any Originator to remit an Acquisition Amount under Section 3.4 of the Originator Receivables Transfer Agreement, (ii) the Servicer to remit an
        Acquisition Amount under Section 3.4 of the Master Trust Receivables Transfer Agreement or Section 3.3 of the Transfer and Servicing Agreement, (iii) the Servicer to deposit Collections into the Collection Account when such amounts are to be
        deposited or (iv) the Marketing Agent to remit, or to cause the related Originator to remit, any amounts due under Section 3.11(b) of the Transfer and Servicing Agreement, the Indenture Trustee will notify the Parent Support Provider in writing of
        such payment default.

       

      Section 6.6    Reports by Indenture Trustee.

       

      (a) Tax Information.  Starting in the year after the Closing Date, the Indenture
        Trustee will deliver or make available to each Person who at any time during the prior calendar year was a Noteholder of record, a statement containing the information required to be given to a noteholder by an issuer of indebtedness, in the form
        and at the time required under the Code.

       

      (b) Monthly Investor Report.  On each Payment Date, the Indenture Trustee will
        deliver the Monthly Investor Report to each Noteholder of record as of the most recent Record Date (which delivery may be made by e-mail to the e-mail addresses in the Note Register without need for confirmation of receipt or by making the report
        available to the Noteholders through the Indenture Trustee’s website, which initially is located at https://pivot.usbank.com (or via such other internet website as may be designated by the Indenture Trustee for such purpose).  Noteholders with
        questions may direct them to the Indenture Trustee’s bondholder services group at (800) 934-6802.

       

      (c) [Reserved]. 

       

      (d) Annual Assessment of Compliance.  On or before March 1 of each year,
        beginning in the year after the Closing Date, the Indenture Trustee will:

       

      (i) deliver to the Issuer, the Depositor, the Administrator and the
        Servicer, a report regarding the Indenture Trustee’s assessment of compliance with the Servicing Criteria specified on Exhibit B during the immediately preceding calendar year, including disclosure of any material instance of non-compliance
        identified by the Indenture Trustee, as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB.  Such report shall be addressed to the Issuer and signed by an authorized officer of the Indenture Trustee; and,

       

      (ii) deliver to the Issuer, the Depositor, the Administrator and the
        Servicer a report of a registered public accounting firm reasonably acceptable to the Issuer and the Administrator that attests to, and reports on, the assessment of compliance made by the Indenture Trustee and delivered pursuant to the preceding
        paragraph.  This attestation shall be delivered in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S‐X under the Securities Act and the Exchange Act.

       

      The reports will be delivered in a format suitable for filing with the Commission on EDGAR.

       

      
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      (e) Obligation to Update Disclosure.  The Indenture Trustee will notify and
        provide information, and certify that information in an Officer’s Certificate, to the Issuer, the Administrator and the Depositor on the occurrence of any event or condition relating to the Indenture Trustee or actions taken by the Indenture
        Trustee that (i) may be required to be disclosed by the Issuer under Item 2 (the institution of, material developments in, or termination of legal proceedings against the Indenture Trustee that are material to the Noteholders) of Form 10-D under
        the Exchange Act within five (5) Business Days of a Responsible Person of the Indenture Trustee having actual knowledge of such proceeding, (ii) the Issuer, or the Administrator on behalf of the Issuer, reasonably requests of the Indenture Trustee
        that the Administrator believes is necessary to comply with the Issuer’s reporting obligations under the Exchange Act within two (2) Business Days of request, (iii) is required to be disclosed under Item 5 (submission of matters to a vote of the
        Noteholders) of Form 10-D under the Exchange Act (other than with respect to submissions of matter to a vote of the Noteholders pursuant to Section 14.1 of this Indenture) within five (5) Business Days of a Responsible Person of the Indenture
        Trustee having actual knowledge of the submission, or (iv) is required to be disclosed under Item 6.04 (failure to make a distribution when required) of Form 8-K under the Exchange Act within two (2) Business Days of the failure to make a
        distribution when required, as applicable.

       

      Section 6.7    Compensation and Indemnity.

       

      (a) Fees.  The Issuer will pay the Indenture Trustee as compensation for
        performing its obligations under this Indenture the Indenture Trustee Fee.  The Indenture Trustee’s compensation will not be limited by law on compensation of a trustee of an express trust.  The Issuer will reimburse the Indenture Trustee for its
        reasonable expenses in performing its obligations under this Indenture and the other Transaction Documents, including costs of collection and the reasonable compensation and expenses of the Indenture Trustee’s agents, counsel, accountants and
        experts, but excluding expenses resulting from the Indenture Trustee’s willful misconduct, bad faith or negligence.

       

      (b) Indemnification.  The Issuer agrees to indemnify U.S. Bank National
        Association in each of its capacities under this Indenture and the Transaction Documents) and its officers, directors, employees and agents (each, an “Indemnified Person”) against any and all loss, liability, claim, suit, action, expense
        (including reasonable attorney’s fees and expenses), damages, costs and disbursements incurred in connection with, arising out of or resulting from the administration of the trusts created hereunder and the performance of its obligations under this
        Indenture and the other Transaction Documents (including any such amount incurred by the Indemnified Person in connection with (x) defending itself against any claim, legal action or proceeding or (y) the enforcement of any indemnification or other
        obligation of the Issuer, the Servicer or any other transaction party) not resulting from (i) the Indenture Trustee’s own willful misconduct, negligence or bad faith or (ii) the Indenture Trustee’s breach of its representations or warranties in
        this Indenture.

       

      (c) Proceedings.  If an Indemnified Person receives notice of the start of a
        Proceeding against it, the Indemnified Person will, if a claim under the Proceeding will be made under this Section 6.7, promptly notify the Issuer of the Proceeding; provided, that the failure to give such notice shall not affect the right of an
        Indemnified Person to indemnification hereunder to the

       

      
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      extent that such failure does not prejudice the rights of the Issuer or the Indemnified Person in such Proceeding.  The Issuer may participate in and assume the defense and settlement of the Proceeding at its expense. 
        If the Issuer notifies the Indemnified Person of its intention to assume the defense of the Proceeding, the Issuer will assume such defense with counsel reasonably satisfactory to the Indemnified Person and in

        a manner reasonably satisfactory to the Indemnified Person.  The Issuer will not be liable for legal expenses of separate counsel to the Indemnified Person unless there is a conflict between the interests of the Issuer and the Indemnified Person. 
        If there is a conflict or if the parties cannot reasonably agree as to the selection of counsel, the Issuer will pay for the separate counsel to the Indemnified Person.  No settlement of the Proceeding in which a claim is brought against the Issuer
        may be settled in the name of, on behalf of or in any manner in which the Issuer is understood to acknowledge the validity of any claim without the approval of the Issuer and the Indemnified Person, which approvals will not be unreasonably
        withheld.

       

      (d) Survival of Obligations.  The Issuer’s obligations to the Indenture Trustee
        under this Section 6.7 will survive the resignation or removal of the Indenture Trustee and the discharge of this Indenture.  Expenses incurred by the Indenture Trustee after the occurrence of a Default stated in Section 5.1(a)(iv) are intended to
        be expenses of administration under the Bankruptcy Code or another applicable federal or State bankruptcy, insolvency or similar law.

       

      (e) Repayment.  If the Issuer makes a payment to an Indemnified Person under
        Section 6.7(b) and the Indemnified Person later collects from others any amounts for which the payment was made, the Indemnified Person will promptly repay those amounts to the Issuer.

       

      (f) Available Funds.  Payments required to be made by the Issuer under this
        Section 6.7 will be made solely from funds used to make payments under this Indenture.

       

      Section 6.8    Resignation or Removal of Indenture Trustee.

       

      (a) Resignation.  The Indenture Trustee may resign by notifying the Issuer and
        the Administrator in writing at least thirty (30) days in advance.

       

      (b) Removal by Controlling Class.  The Noteholders of a majority of the Note
        Balance of the Controlling Class may, without cause, remove the Indenture Trustee and terminate its rights and obligations under this Indenture by notifying the Indenture Trustee and the Issuer, in writing, at least thirty (30) days prior to such
        removal.

       

      (c) Removal by Issuer.  The Issuer must remove the Indenture Trustee and
        terminate its rights and obligations under this Indenture if:

       

      (i) the Indenture Trustee fails to comply with the eligibility
        requirements in Section 6.11;

       

      (ii) the Indenture Trustee becomes legally unable to act or incapable
        of acting as Indenture Trustee; or

       

      (iii)            an Insolvency Event for the Indenture Trustee occurs.

       

      
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      (d) Appointment of Successor.  If the Indenture Trustee resigns or is removed or
        if a vacancy exists in the office of the Indenture Trustee, the Issuer or the Noteholders of a majority of the Note Balance of the Controlling Class must appoint a successor Indenture Trustee promptly.  If a successor Indenture Trustee does not
        take office within sixty (60) days after the Indenture Trustee resigns or is removed, the Indenture Trustee, the Issuer or the Noteholders of a majority of the Note Balance of the Controlling Class may petition a court of competent jurisdiction (at
        the expense of the Issuer) to appoint a successor Indenture Trustee.

       

      (e) Acceptance of Appointment.  No resignation or removal of the Indenture
        Trustee will become effective until the acceptance of appointment by the successor Indenture Trustee under this Section 6.8.  Any successor Indenture Trustee will deliver a written acceptance of its appointment to the outgoing Indenture Trustee,
        the Issuer and the Administrator.  The Issuer will continue to pay amounts owed to the predecessor Indenture Trustee for the period it was Indenture Trustee according to Sections 6.7 and 8.2.  The successor Indenture Trustee will notify the Secured
        Parties of its succession and the Issuer or Administrator will deliver a copy of the notice to the Rating Agencies.

       

      (f) Transition of Indenture Trustee Obligations.  On the resignation or removal
        of the Indenture Trustee becoming effective under Section 6.8(e), all rights, powers and obligations of the Indenture Trustee under this Indenture will become the rights, powers and obligations of the successor Indenture Trustee.  The predecessor
        Indenture Trustee will promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee.  The Depositor will reimburse the Indenture Trustee and any successor Indenture Trustee for expenses related to the
        replacement of the Indenture Trustee, if those amounts have not been paid under Section 8.2.

       

      Section 6.9    Merger or Consolidation; Transfer of Assets.

       

      (a) Merger or Consolidation.  If the Indenture Trustee merges or consolidates
        with, or transfers all or substantially all of its corporate trust business or assets to, any Person, the resulting, surviving or transferee Person will be the successor Indenture Trustee so long as that Person is qualified and eligible under
        Section 6.11.  The Indenture Trustee will promptly notify the Servicer and the Issuer of the succession, and the Issuer will notify the Rating Agencies.

       

      (b) Authentication of Notes.  If, at the time the successor by merger or
        consolidation to the Indenture Trustee succeeds to the trusts created by this Indenture, Notes have been authenticated but not delivered, the successor Indenture Trustee may adopt the certificate of authentication of a predecessor Indenture Trustee
        and deliver the Notes so authenticated.  If at that time any Notes have not been authenticated, the successor Indenture Trustee may authenticate the Notes.  In each of those cases, the certificates will have the same force and effect given in the
        Notes or in this Indenture as the certificate of the predecessor Indenture Trustee.

       

      Section 6.10    Appointment of Separate Trustee or Co-Trustee.

       

      (a) Appointment.  For the purpose of meeting the legal requirement of a
        jurisdiction in which part of the Collateral may be located or for such other reasons as may be necessary or desirable (including to resolve any conflict of interest issues), after notifying the Issuer and the Servicer, the Indenture Trustee may
        appoint one or more Persons to act as a separate trustee or

       

      
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      separate trustees, or co-trustee or co-trustees, of all or part of the Collateral, and to vest in those Persons, in this capacity and for the benefit of the Secured Parties, title to all or part of the Collateral, and,
        subject to this Section 6.10, rights, powers and obligations the Indenture Trustee may consider necessary or desirable.  No separate trustee or co-trustee will be required to be eligible as a successor trustee under Section 6.11 and no notice to
        the Secured Parties of the appointment of a separate trustee or co-trustee will be required under Section 6.8.

       

      (b) Terms of Appointment.  Every separate trustee and co-trustee will be
        appointed and act subject to the following:

       

      (i) all rights, powers and obligations of the Indenture Trustee set
        forth in the instrument of appointment will be exercised or performed by the separate trustee or the Indenture Trustee or co-trustee jointly (it being understood that a co-trustee will not be authorized to act separately without the Indenture
        Trustee joining in the act, except if under the law of a jurisdiction in which a particular act or acts are to be performed the Indenture Trustee will be incompetent or unqualified to perform those act or acts, in which event those acts will be
        exercised and performed singly by the co-trustee, but solely at the direction of the requisite Noteholders);

       

      (ii) no trustee will be personally liable by reason of an act or
        omission of another trustee under this Indenture; and

       

      (iii)            the Indenture Trustee may accept the resignation of or remove a separate trustee or co-trustee.

       

      (c) Notices.  Any notice, request or other writing given to the Indenture Trustee
        will be deemed to have been given to each appointed separate trustee and co-trustee, as effectively as if given to each of them.

       

      (d) Rights of Appointee.  Every document appointing a separate trustee or
        co-trustee will refer to this Indenture and the conditions of this Section 6.10.  Each separate trustee and

        co-trustee, on its acceptance of its appointment will have the rights, powers and obligations stated in its appointment, subject to this Indenture.  The document will be filed with the Indenture Trustee, and the Indenture Trustee will provide the
        Issuer with a copy of each document.

       

      (e) Indenture Trustee as Agent.  A separate trustee or co-trustee, with the
        consent of the Indenture Trustee, may appoint the Indenture Trustee as its agent or attorney-in-fact with power and authority, if permitted by law, to do each lawful act under or for this Indenture on its behalf and in its name.  If a separate
        trustee or co-trustee becomes incapable of acting, resigns or is removed, all of its rights, powers and obligations will be exercised by the Indenture Trustee, if permitted by law, without the appointment of a new or successor trustee.

       

      Section 6.11    Eligibility.  The Indenture Trustee must satisfy the
        requirements of Section 310(a) of the TIA and must comply with Section 310(b) of the TIA.  The Indenture Trustee or its parent must have a combined capital and surplus of at least $50,000,000 as stated in its most recent annual published report of
        condition and must have a long-term debt rating of at least investment grade by each of the Rating Agencies or must be acceptable to each of the

       

      
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      Rating Agencies or satisfy the Rating Agency Condition.  Promptly after the Indenture Trustee fails to satisfy the requirements in this Section 6.11 or ceases to be a Qualified Institution, the Indenture Trustee will
        notify the Issuer and the Servicer of the failure.

       

      Section 6.12    Inspections of Indenture Trustee.  The Indenture
        Trustee agrees that, with reasonable prior notice, it will permit authorized representatives of the Issuer, the Servicer or the Administrator, during the Indenture Trustee’s normal business hours, to have access to and review the facilities,
        processes, books of account, records, reports and other documents and materials of the Indenture Trustee relating to (a) the performance of the Indenture Trustee’s obligations under this Indenture, (b) the payments of fees and expenses of the
        Indenture Trustee for its performance and (c) any claim made by the Indenture Trustee under this Indenture.  In addition, the Indenture Trustee will permit those representatives to make copies and extracts of the books and records and to discuss
        them with the Indenture Trustee’s officers and employees.  Any access and review will be subject to the Indenture Trustee’s confidentiality and privacy policies.  The Indenture Trustee will maintain all relevant books, records, reports and other
        documents and materials for a period of two years after the termination of its obligations under this Indenture.

       

      Section 6.13    Indenture Trustee’s Representations and Warranties. 
        The Indenture Trustee represents and warrants to the Issuer as of the Closing Date:

       

      (a) Organization.  The Indenture Trustee is duly organized, validly existing and
        qualified as a national banking association under the laws of the United States.

       

      (b) Power and Authority.  The Indenture Trustee has the corporate power and
        authority to execute, deliver and perform its obligations under this Indenture.  The Indenture Trustee has taken all action necessary to authorize the execution, delivery and performance by it of this Indenture.

       

      (c) Enforceability.  This Indenture has been duly executed by an authorized
        officer of the Indenture Trustee and constitutes the legal, valid and binding obligation of the Indenture Trustee enforceable against the Indenture Trustee in accordance with its terms, except as may be limited by (i) insolvency, bankruptcy,
        reorganization, moratorium or other laws now or hereafter in effect relating to the enforcement of creditors’ rights generally, (ii) general equitable principles (regardless of whether such enforceability is considered in a proceeding at law or in
        equity) and (iii) with respect to rights of indemnity hereunder, limitations of public policy under applicable securities laws.

       

      (d) No Defaults.  To the best knowledge of the Responsible Persons of the
        Indenture Trustee, the Indenture Trustee is not in breach of or default under any law or regulation of the United States of America, or any department, division, agency or instrumentality thereof having jurisdiction over the trust powers of the
        Indenture Trustee which would materially impair the ability of the Indenture Trustee to perform its obligations under this Indenture.

       

      (e) No Consents.  To the best knowledge of the Responsible Persons of the
        Indenture Trustee, no authorization, consent or other order of any federal government authority or agency having jurisdiction over the trust powers of the Indenture Trustee are required to be obtained by

       

      

      
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      the Indenture Trustee for the valid authorization, execution and delivery by the Indenture Trustee of the Indenture or the authentication of the Notes.

       

      (f) Eligibility.  The Indenture Trustee satisfies the requirements of Section
        310(a) of the TIA and is a Qualified Institution.  The Indenture Trustee or its parent has a combined capital and surplus of at least $50,000,000 as stated in its most recent annual published report of condition.

       

      Section 6.14    Reporting of Receivables Repurchase Demands.  The
        Indenture Trustee will (a) notify the Sponsor, the Administrator, the Depositor and the Servicer, as soon as practicable and within five (5) Business Days, of demands or requests actually received by a Responsible Person of the Indenture Trustee
        for the reacquisition or acquisition, as applicable, of any Receivable under Section 3.4 of the Originator Receivables Transfer Agreement, Section 3.4 of the Master Trust Receivables Transfer Agreement or Section 2.5 of the Transfer and Servicing
        Agreement, (b) promptly on request by the Sponsor, the Depositor, the Administrator or the Servicer, provide to them other information reasonably requested and within its possession to facilitate compliance by them with Rule 15Ga-1 under the
        Exchange Act and (c) if requested by the Sponsor, the Depositor, the Administrator or the Servicer, provide a written certification no later than fifteen (15) days following the end of any quarter or year that the Indenture Trustee has not received
        any reacquisition demands or requests for that period, or if reacquisition or acquisition, as applicable, demands or requests have been received during that period, that the Indenture Trustee has provided all the information reasonably requested
        under clause (b) above.  The Indenture Trustee and the Issuer will not have responsibility or liability for a filing required to be made by a securitizer under the Exchange Act.

       

      Section 6.15    Preferential Collection of Claims Against the Issuer. 
        The Indenture Trustee will comply with Section 311(a) of the TIA, excluding each creditor relationship listed in Section 311(b) of the TIA.  An Indenture Trustee who has resigned or been removed will be subject to Section 311(c) of the TIA.

       

      ARTICLE VII

        NOTEHOLDER COMMUNICATIONS AND REPORTS

       

      Section 7.1     Noteholder Communications.

       

      (a) Noteholder List.  If the Indenture Trustee is not the Note Registrar, the
        Issuer will furnish a list of the names and addresses of the Noteholders to the Indenture Trustee (a) not more than five (5) days after each Record Date, as of that Record Date and (b) not more than thirty (30) days after receipt by the Issuer of a
        request from the Indenture Trustee, as of a date not more than ten (10) days before the time the list is furnished.  If the Indenture Trustee is the Note Registrar, the Indenture Trustee, on the request of the Owner Trustee, will furnish within ten
        (10) days to the Owner Trustee a list of Noteholders as of the date stated by the Owner Trustee.

       

      (b) Noteholder List Retention.  The Indenture Trustee will maintain a current
        list of the names and addresses of the Noteholders based on the most recent list furnished to the Indenture Trustee under Section 7.1(a) and the names and addresses of Noteholders received by the Indenture Trustee in its capacity as Note Registrar.

       

      
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      (c) Noteholder Communications.  Noteholders may communicate with other
        Noteholders about their rights under this Indenture or under the Notes.  Within ten (10) days following receipt by the Indenture Trustee of a request by three or more Noteholders to receive a copy of the current list of Noteholders, the Indenture
        Trustee will (i) provide a current list of Noteholders to the Noteholders making the request and (ii) notify the Administrator of the request by giving to the Administrator a copy of the request and a copy of the list of Noteholders produced in
        response to the request.

       

      (d) Noteholder Communications with Indenture Trustee.  A Noteholder (if the Notes
        are represented by Definitive Notes) or a Note Owner (if the Notes are represented by Book-Entry Notes) may communicate with the Indenture Trustee and give notices and make requests and demands and give directions to the Indenture Trustee through
        the procedures of the Clearing Agency and by notifying the Indenture Trustee and providing to the Indenture Trustee a copy of the communication such Noteholder or Note Owner, as applicable, proposes to send.  Any Note Owner must provide a written
        certification stating that the Note Owner is a beneficial owner of a Note, together with supporting documentation such as a trade confirmation, an account statement, a letter from a broker or dealer verifying ownership or another similar document
        evidencing ownership of a Note.  The Indenture Trustee will not be required to take action in response to requests, demands or directions of a Noteholder or a Note Owner (other than (A) requests, demands or directions relating to an asset
        representation review demand as set forth in Article XIV of this Indenture and Section 11.1 of the Transfer and Servicing Agreement, (B) forwarding notices related to dispute resolution procedures as set forth in Section 11.2 of the Transfer and
        Servicing Agreement and (C) facilitating noteholder communications pursuant to Section 7.1(c) of this Indenture), unless the Noteholder or Note Owner has offered reasonable security or indemnity reasonably satisfactory to the Indenture Trustee to
        protect it against the fees and expenses that it may incur in complying with the request, demand or direction.

       

      (e) Fiscal Year.  The fiscal year of the Issuer will be the calendar year.

       

      (f) TIA Communication.  Noteholders may communicate under Section 312(b) of the
        TIA with other Noteholders about their rights under this Indenture or under the Notes.  The Issuer, the Indenture Trustee and the Note Registrar will have the protection of Section 312(c) of the TIA.

       

      Section 7.2    Reports by Issuer.

       

      (a) Securities and Exchange Commission Filings.  The Issuer will, or will cause
        the Administrator or the Servicer to: 

       

      (i) file with the Commission (A) the annual reports and the
        information, documents and other reports (or copies or parts the Commission may prescribe) that the Issuer is required to file with the Commission under Section 13 or 15(d) of the Exchange Act, including annual reports on Form 10-K and monthly
        distribution reports on Form 10-D, and (B) additional information, documents and reports about compliance by the Issuer with this Indenture required by the Commission;

       

      
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      (ii) make available to the Indenture Trustee, within 15 days after
        the Issuer is required to file the same with the Commission, the annual reports and the information, documents or other reports filed with the Commission under Section 7.2(a)(i); and

       

      (iii)             make available to the Indenture Trustee the information, documents and reports (or summaries of such items) required to be filed by the Issuer under
        Section 7.2(a)(i) and (ii) as may be required by rules and regulations prescribed by the Commission.

       

      (b) Documents and Reports to Noteholders.  The Indenture Trustee will transmit to
        all Noteholders, as described in Section 313(c) of the TIA, the information, documents and reports (or summaries of such items) supplied to the Indenture Trustee under Section 7.2(a). 

       

      Section 7.3    Reports by Indenture Trustee.

       

      (a) Annual Report.  Within 90 days after each April 15, beginning in the year
        after the Closing Date, the Indenture Trustee will prepare and transmit to each Noteholder a report dated as of April 15 of the applicable year that complies with Section 313(a) of the TIA, but only if the report is required under Section 313(a) of
        the TIA.  The Indenture Trustee will also prepare and transmit to Noteholders any report required under Section 313(b) of the TIA.  A report transmitted to the Noteholders under this Section 7.3(a) will be transmitted in compliance with
        Section 313(c) of the TIA.

       

      (b) Filing.  The Indenture Trustee will file with the Commission and any stock
        exchange on which the Notes are listed a copy of each report delivered under Section 7.3(a) at the time of its mailing to the Noteholders.  The Issuer will notify the Indenture Trustee if and when the Notes are listed on a stock exchange.

       

      ARTICLE VIII

        ACCOUNTS, DISTRIBUTIONS AND RELEASES

       

      Section 8.1    Collection of Funds.  Except as permitted under this
        Indenture, the Indenture Trustee may demand payment or delivery of, and will receive and collect, directly the funds and other property payable to or to be received by the Note Paying Agent under this Indenture and the Transfer and Servicing
        Agreement.  The Note Paying Agent will apply the funds and other property received by it, and will make deposits into, and distributions from, the Bank Accounts, under this Indenture and the Transfer and Servicing Agreement.  The Issuer, or the
        Administrator on its behalf, will direct the Cap Counterparty to remit any Cap Payments into the Collection Account on or before the second Business Day preceding each Payment Date.

       

      Section 8.2    Bank Accounts; Distributions.

       

      (a) Establishment.  On and after the Closing Date, the Note Paying Agent will
        maintain the Bank Accounts established by the Servicer under Section 4.1 of the Transfer and Servicing Agreement.

       

      (b) Bank Account Withdrawals.  On or before each Payment Date, the Note Paying
        Agent will withdraw the amounts required to be withdrawn from the Reserve Account, the

       

      
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      Negative Carry Account and the Acquisition Account and deposit them into the Collection Account or pay them to the Depositor, as applicable, according to Section 4.4 of the Transfer and Servicing Agreement.

       

      (c) Distributions from Collection Account.  Subject to Section 8.2(e), on each
        Payment Date, the Note Paying Agent will (based on the information in the most recent Monthly Investor Report) withdraw from the Collection Account and make deposits and payments, to the extent of Available Funds in the Collection Account for that
        Payment Date, in the following order of priority (pro rata within each priority level based on the amounts due except as otherwise stated):

       

      (i)             first, to the Indenture Trustee, the Owner Trustee and the Asset Representations Reviewer, (x) the Indenture Trustee Fee, the Owner Trustee Fee and the Asset
        Representations Reviewer Fee, respectively, owed to such party under this Indenture, the Trust Agreement or the Asset Representations Review Agreement, as applicable and (y) any payment of expenses and indemnities then due to the Indenture Trustee,
        the Owner Trustee and the Asset Representations Reviewer, up to, with respect to clause (y) a maximum of $400,000 in the aggregate per calendar year; provided, that $200,000 of such cap will be allocated to reimbursable expenses and indemnities of
        the Indenture Trustee, $100,000 of such cap will be allocated to reimbursable expenses and indemnities of the Owner Trustee and $100,000 of such cap will be allocated to reimbursable expenses and indemnities of the Asset Representations Reviewer
        (and on the Payment Date occurring in December of each calendar year, each such party will have the right to reimbursement from any unused portion of the cap allocated to another party to the extent that the expenses and indemnities reimbursable to
        such party exceed the related allocated amount at the end of such calendar year); provided, further that after the occurrence of any Event of Default, other than an Event of Default set forth in Section 5.1(a)(iii), such cap will not apply;

       

      (ii)            second, (x) to the Servicer, unpaid Servicing Fees and (y) on the first Payment Date following the assumption by a Successor Servicer of its duties as
        Successor Servicer, to such Successor Servicer, a one-time Successor Servicer engagement fee of $150,000;

       

      (iii)           third, to the Noteholders of Class A Notes, the aggregate Accrued Note Interest for the Class A-1a Notes and Class A-1b Notes, pro rata, based on the Accrued Note Interest due on each such Class of Notes;

       

      (iv)           fourth, during the Amortization Period, for allocation as principal under Section 8.2(d), the First Priority Principal Payment;

       

      (v)            fifth, to the Noteholders of Class B Notes, the Accrued Note Interest for the Class B Notes;

       

      (vi)           sixth, during the Amortization Period, for allocation as principal under Section 8.2(d), the Second Priority Principal Payment;

       

      
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      (vii)          seventh, to the Noteholders of Class C Notes, the Accrued Note Interest for the Class C Notes;

       

      (viii)         eighth, during the Amortization Period, for allocation as principal under Section 8.2(d), the Third Priority Principal Payment;

       

      (ix)           ninth, during the Amortization Period, for allocation as principal under Section 8.2(d), the Regular Priority Principal Payment;

       

      (x)            tenth, solely if an Amortization Event has occurred and is continuing, to the Noteholders, payable sequentially by Class, remaining amounts due on the Notes,
        payable until the Note Balance of each Class of Notes is reduced to zero;

       

      (xi)           eleventh, to any Successor Servicer, the Additional Successor Servicer Fee, if any;

       

      (xii)          twelfth, to the Reserve Account, the amount required to bring the amount in the Reserve Account up to the Required Reserve Amount;

       

      (xiii)         thirteenth, during the Revolving Period, to the Acquisition Account, the Acquisition Deposit Amount for that Payment Date;

       

      (xiv)         fourteenth, during the Revolving Period, if amounts are in the Acquisition Account, to the Negative Carry Account, the Negative Carry Deposit Amount;

       

      (xv)          fifteenth, to the Noteholders, any Make-Whole Payments due on the Notes, payable sequentially by Class, based on the amount due (with any such Make-Whole
        Payments applied to the Class A Notes allocated to each class of Class A Notes, pro rata based on the Make-Whole Payment due to each such Class);

       

      (xvi)         sixteenth, (x) to the payment of all amounts due to the Indenture Trustee, the Owner Trustee and the Asset Representations Reviewer to the extent not paid
        under Section 8.2(c)(i) on that Payment Date and (y) to the extent that the Administrator has paid any fees of the Indenture Trustee, the Owner Trustee and the Asset Representations Reviewer on the Closing Date pursuant to Section 2.2(e) of the
        Administration Agreement, to the Administrator for the reimbursement of such amounts;

       

      (xvii)        seventeenth, to the payment of any expenses of the Issuer identified by the Administrator, on behalf of the Issuer; and

       

      (xviii)       eighteenth, to the Certificate Distribution Account for distribution sequentially to the Class B Certificateholders and the Class A Certificateholders, in that
        order, any remaining amounts.

       

      For the avoidance of doubt, all amounts due to the Owner Trustee, the Indenture Trustee or the Asset Representations Reviewer in excess of the amounts paid to such party pursuant to priorities (i) and
        (xvi) during any calendar year will become due and payable in each succeeding calendar year, subject to the applicable limitations set forth therein, until paid in full.

       

      

      
        43

        
          

      

       (d) Distributions of Principal.  On each Payment Date during the Amortization
        Period, the Note Paying Agent will (based on the information in the most recent Monthly Investor Report) pay any amounts allocated to principal under Section 8.2(c) in the following order of priority, in each case, applied pro rata according to the
        Note Balance of the Notes of that Class:

       

      (i)               first, to the Noteholders of Class A-1a Notes and Class A-1b Notes, pro rata based on the Note Balance of each
        such Class of Notes, in payment of principal until the aggregate Note Balance of the Class A Notes has been reduced to zero;

       

      (ii)              second, to the Noteholders of Class B Notes in payment of principal until the Note Balance of the Class B Notes has been reduced to zero;

       

      (iii)             third, to the Noteholders of Class C Notes in payment of principal until the Note Balance of the Class C Notes has been reduced to zero; and

       

      (iv)              fourth, to the Certificate Distribution Account for distribution sequentially to the Class B Certificateholders and the Class A Certificateholders, in that
        order, any remaining amounts.

       

      (e) Distributions Following Acceleration.  If the Notes are accelerated after an
        Event of Default, on each Payment Date starting with the Payment Date relating to the Collection Period in which the Notes are accelerated, the Note Paying Agent will (based on the information in the most recent Monthly Investor Report) withdraw
        from the Bank Accounts and make deposits and payments, to the extent of funds in the Bank Accounts for the related Collection Period, in the following order of priority (pro rata to the Persons within each priority level based on the amounts due
        except as stated):

       

      (i)                first, pro rata, to the payment of all amounts, including the Indenture Trustee Fee, the Owner Trustee Fee and
        the Asset Representations Reviewer Fee, and expenses and indemnities due to the Indenture Trustee, the Owner Trustee and the Asset Representations Reviewer;

       

      (ii)               second, (x) to the Servicer, unpaid Servicing Fees and (y) on the first Payment Date following the assumption by a Successor Servicer of its duties as
        Successor Servicer, to such Successor Servicer a one-time Successor Servicer engagement fee of $150,000;

       

      (iii)              third, to the Noteholders of Class A Notes, the aggregate Accrued Note Interest for the Class A-1a Notes and Class A-1b Notes, pro rata, based on the Accrued Note Interest due on each such Class of Notes;

       

      (iv)              fourth, to the Noteholders of Class A-1a Notes and Class A-1b Notes, pro rata based

        on the Note Balance of each such Class of Notes, in payment of principal until the aggregate Note Balance of the Class A-1a Notes and Class A-1b Notes has been reduced to zero;

       

      
        44

        
          

      

      (v)               fifth, to the Noteholders of Class B Notes, the Accrued Note Interest for the Class B Notes;

       

      (vi)              sixth, to the Noteholders of Class B Notes in payment of principal until the Note Balance of the Class B Notes is reduced to zero;

       

      (vii)             seventh, to the Noteholders of Class C Notes, the Accrued Note Interest for the Class C Notes;

       

      (viii)            eighth, to the Noteholders of Class C Notes in payment of principal until the Note Balance of the Class C Notes is reduced to zero;

       

      (ix)              ninth, to any Successor Servicer, the Additional Successor Servicer Fee, if any;

       

      (x)               tenth, to the Noteholders, any Make-Whole Payments due on the Notes, payable sequentially by Class, based on the amount due (with any such Make-Whole
        Payments applied to the Class A Notes allocated to the Class A Notes, pro rata based on the Make-Whole Payment due to each such Class);

       

      (xi)              eleventh, to any parties identified by the Administrator, any remaining expenses of the Issuer; and

       

      (xii)             twelfth, to the Certificate Distribution Account for distribution sequentially to the Class B Certificateholders and the Class A Certificateholders, in
        that order, any remaining amounts.

       

      (f) Amounts in Acquisition Account.  On each Acquisition Date, the Note Paying
        Agent (according to the instructions provided in the Transfer Notice) will withdraw funds in the Acquisition Account (after the payments under Section 8.2(c) on that Acquisition Date) and pay the amounts to the Depositor for the acquisition of
        Additional Receivables by the Issuer on that Acquisition Date.

       

      (g) Subordination Agreement.  Each of (i) the subordination of interest payments
        to the Noteholders of the Class B Notes to the payment of any First Priority Principal Payment to the Noteholders of the Class A Notes and (ii) the subordination of interest payments to the Noteholders of the Class C Notes to the payment of any
        Second Priority Principal Payment to the Noteholders of the Class A Notes and the Class B Notes under Section 8.2(c) is a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code.

       

      Section 8.3    Bank Accounts.

       

      (a) Limited Liability for Permitted Investments.  Subject to Section 6.1(c),
        neither the Indenture Trustee nor the Note Paying Agent will be liable for any insufficiency in Bank Accounts resulting from a loss on a Permitted Investment, except for losses attributable to U.S. Bank National Association’s failure to make
        payments on the Permitted Investments issued by U.S. Bank National Association, in its commercial capacity as principal obligor and not as trustee.

       

      
        45

        
          

      

      (b) Notice to Qualified Institution.  A Responsible Person of the Indenture
        Trustee will notify the Qualified Institution maintaining the Bank Accounts (if not the Indenture Trustee) if an Event of Default has occurred and is continuing.

       

      Section 8.4    Release of Collateral.

       

      (a) Release of Property.  The Indenture Trustee may, and when required by this
        Indenture will, release Collateral from the Lien of this Indenture, in each case, according to this Indenture.  Except under Sections 8.4(b), 8.4(c) and 10.1 and Section 3.4 of the Transfer and Servicing Agreement for which the related Collateral
        will automatically be released, the Indenture Trustee will release Collateral from the Lien of this Indenture only on receipt of an Issuer Request and an Officer’s Certificate and an Opinion of Counsel meeting the requirements of Section 11.3 and
        (if required by the TIA) Independent Certificates according to Sections 314(c) and 314(d)(1) of the TIA.

       

      (b) Deemed Release.  The Indenture Trustee will be deemed to release, and does
        release, and each Noteholder or Note Owner by its acceptance of a Note or an interest or participation in a Note acknowledges that the Indenture Trustee will release Liens and other rights and interests it possesses, without further action of the
        parties, in, to and under:

       

      (i) each Receivable and all proceeds of the Receivable sold by the
        Issuer under Section 3.4(c) of the Originator Receivables Transfer Agreement, Section 3.4(c) of the Master Trust Receivables Transfer Agreement or Section 2.5 or 3.3(e) of the Transfer and Servicing Agreement, effective when the Receivable is
        deemed sold and assigned by the Issuer under the applicable Section; and

       

      (ii) each Receivable sold by the Servicer under Section 3.4 of the
        Transfer and Servicing Agreement, effective when the Receivable is deemed sold by the Servicer.

       

      (c) Release of Funds.  When there are no Notes Outstanding and all amounts due
        from the Issuer to the Indenture Trustee have been paid in full under Section 6.7 or 10.1, the Indenture Trustee will release the Collateral from the Lien of this Indenture and release to the Issuer or any other Person entitled to those funds under
        this Indenture or the other Transaction Documents, the funds then in the Bank Accounts under this Indenture.  The Indenture Trustee will release Collateral from the Lien of this Indenture under this Section 8.4(c) only on receipt of an Issuer
        Request and an Officer’s Certificate and an Opinion of Counsel meeting the requirements of Section 11.3.

       

      (d) Termination Statements.  On receipt of an Issuer Request accompanied by an
        Officer’s Certificate and an Opinion of Counsel meeting the requirements of Section 11.3, the Indenture Trustee will execute termination statements and other documents to release Collateral as permitted by this Section 8.4 and Section 10.1.  No
        party relying on a document or authorization executed by the Indenture Trustee under this Article VIII is required to determine the Indenture Trustee’s authority, inquire into the satisfaction of conditions precedent or require evidence of the
        application of funds.

       

      
        46

        
          

      

      ARTICLE IX

        AMENDMENTS

       

      Section 9.1    Amendments Without Consent of Noteholders or
          Certificateholders.

       

      (a) General Amendments.  Without the consent of the Noteholders or the
        Certificateholders, but after notifying the Rating Agencies, the Issuer and the Indenture Trustee may, and the Indenture Trustee, when directed by Issuer Order will, amend this Indenture:

       

      (i) to correct or expand the description of property subject to the
        Lien of this Indenture, or better to assure, convey and confirm to the Indenture Trustee property subject or required to be subjected to the Lien of this Indenture, or to subject additional property to the Lien of this Indenture;

       

      (ii) to evidence the succession of any other Person to the Issuer,
        and the assumption by the successor of the obligations of the Issuer in this Indenture and in the Notes;

       

      (iii)             to add to the covenants of the Issuer, for the benefit of the Noteholders, or to surrender a right or power given to the Issuer in this Indenture;

       

      (iv)             to transfer, assign, mortgage or pledge property to or with the Indenture Trustee;

       

      (v) to clarify an ambiguity, correct an error or correct or
        supplement any term in this Indenture inconsistent with another term in this Indenture or to add provisions which are not inconsistent with the provisions of this Indenture if the action does not have a material adverse effect on the interests of
        the Noteholders or the Certificateholders, as applicable;

       

      (vi)             to evidence the acceptance of the appointment under this Indenture of a successor trustee and to add to or change this Indenture as necessary to facilitate the
        administration of the trusts under this Indenture by more than one trustee;

       

      (vii)            to correct any manifest error in the terms of this Indenture as compared to the terms expressly set forth in the Prospectus; or

       

      (viii)           to modify, eliminate or add to the terms of this Indenture to effect the qualification of this Indenture under the TIA and to add to this Indenture any other terms
        required by the TIA.

       

      In addition, the Administrator may amend any term or provision of this Indenture from time to time for the purpose of making Benchmark Replacement Conforming Changes, without the consent of
        Noteholders, the Certificateholders, any party to this Indenture or any other Person.

       

      (b) Amendments without Material Adverse Effect.  Other than as set forth in
        Section 9.2, without the consent of the Noteholders, the Issuer and the Indenture Trustee may, and the

       

      
        47

        
          

      

      Indenture Trustee when directed by Issuer Order will, amend this Indenture to add terms to, or to change or eliminate the terms of, this Indenture or to modify in any manner the rights of the Noteholders under this
        Indenture, if:

       

      (i) the Administrator delivers to the Indenture Trustee an Officer’s
        Certificate stating that the amendment will not have a material adverse effect on the Notes; or

       

      (ii) the Rating Agency Condition has been satisfied.

       

      Section 9.2    Amendments with Consent of Controlling Class.

       

      (a) Amendments.  With the consent of the Noteholders of a majority of the Note
        Balance of the Controlling Class and after notifying the Rating Agencies, the Issuer and the Indenture Trustee may, and the Indenture Trustee when directed by Issuer Order will, amend this Indenture to add any provisions to, or change in any manner
        or eliminate any of the provision of, this Indenture or for the purpose of modifying in any manner the rights of the Noteholders under this Indenture.  However, no amendment, without the consent of each Noteholder of each Outstanding Note adversely
        affected by the amendment, will:

       

      
        
          	

                	(A)	
                  change (1) the applicable Final Maturity Date on a Note or (2) the principal amount of or interest rate or any Make-Whole Payment on a Note;

                

        

      

       

      
        
          	

                	(B)	
                  modify the percentage of the Note Balance of the Notes or the Controlling Class required for any action;

                

        

      

       

      
        
          	

                	(C)	
                  modify or alter the definition of “Outstanding,” “Controlling Class” or “Amortization Events;

                

        

      

       

      
        
          	

                	(D)	
                  change the Required Reserve Amount, the Required Acquisition Deposit Amount or the Required Negative Carry Amount;

                

        

      

       

      
        
          	

                	(E)	
                  permit the creation of any Lien ranking prior or equal to the Lien of this Indenture on the Collateral, other than Permitted Liens, or, except as permitted by this Indenture or the other Transaction Documents, release the Lien of
                    this Indenture on the Collateral; or

                

        

      

       

      
        
          	

                	(F)	
                  impair the right to institute suit for the enforcement of payment as provided in Section 5.8.

                

        

      

       

      (b) Noteholder Consent.  For any amendment to this Indenture or any other
        Transaction Document requiring the consent of the Noteholders, the Indenture Trustee will, when directed by Issuer Order, notify the Noteholders to request consent and follow its reasonable procedures to obtain consent.  For the avoidance of doubt,
        any Noteholder consenting to any amendment shall be deemed to agree that such amendment does not have a material adverse effect on such Noteholder.

       

      
        48

        
          

      

      Section 9.3    Execution of Amendments.

       

      (a) Form; Authorization; Reliance.  It shall not be necessary for the consent of
        the Noteholders to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof.  Each amendment will be in form reasonably satisfactory to the Indenture Trustee. 
        The Indenture Trustee is authorized to execute the amendment and any other agreements required by the amendment.  For any amendment, the Issuer will deliver to the Indenture Trustee and the Owner Trustee an Opinion of Counsel stating that the
        amendment is permitted by this Indenture and that all conditions to the amendment have been satisfied.

       

      (b) Indenture Trustee Not Obligated.  Notwithstanding anything to the contrary
        herein, the Indenture Trustee is not obligated to enter into an amendment that adversely affects the Indenture Trustee’s rights, powers, duties, obligations, liabilities, indemnities or immunities under this Indenture.

       

      Section 9.4    Effect of Amendment.  On the execution of an amendment
        under this Article IX, this Indenture will be amended by the amendment, and the amendment will be part of this Indenture for all purposes.  Every Noteholder of Notes authenticated and delivered before or after the amendment will be bound by the
        amendment.

       

      Section 9.5    Reference in Notes to Supplemental Indentures.  Notes
        authenticated and delivered after the execution of an amendment under this Article IX may, and if required by the Indenture Trustee will, bear a notation about the amendment.  New Notes modified to conform to an amendment may be prepared and
        executed by the Issuer and authenticated and delivered by the Indenture Trustee in exchange for the Outstanding Notes.

       

      Section 9.6    Consent of Cap Counterparty.  Notwithstanding anything
        to the contrary herein, no amendment under Sections 9.1 or 9.2 shall materially adversely affect (i) the Cap Counterparty’s ability to enforce or protect its rights or remedies under the Cap Agreement, (ii) the ability of the Issuer to timely and
        fully perform its obligations under the Cap Agreement or (iii) any of the Issuer’s obligations under the Cap Agreement that relates to the Cap Counterparty unless the Cap Counterparty shall have consented in writing to such action.

       

      Section 9.7    Conformity with TIA.  Each amendment of this Indenture
        executed under this Article IX will conform to the requirements of the TIA as then in effect so long as this Indenture is qualified under the TIA.

       

      ARTICLE X

        REDEMPTION OF NOTES

       

      Section 10.1    Redemption.

       

      (a) Clean-Up Redemption and Optional Redemption.

       

      (i) The Notes may be redeemed, in whole but not in part, as a
        Clean-Up Redemption at the direction of the Issuer on any Payment Date on which the Class A Certificateholder (for as long as the Class A Certificateholder is an Originator or an

       

      
        49

        
          

      

      Affiliate of the Originators) elects to exercise its option to acquire the Trust Property under Section 8.1 of the Transfer and Servicing Agreement.  Upon such election, the Class A Certificateholder
        shall notify the Issuer, the Servicer, the Indenture Trustee, the Owner Trustee and the Rating Agencies, in writing, of the Payment Date on which such Optional Acquisition and Clean-Up Redemption shall occur, which notice will be provided at least
        ten (10) days before the date of the redemption of the Notes (the “Redemption Date”).

       

      (ii) The Notes may be redeemed, in whole but not in part, as an
        Optional Redemption at the direction of the Issuer on any Payment Date on which the Class A Certificateholder (for as long as the Class A Certificateholder is an Originator or an Affiliate of the Originators) elects to redeem the Notes and a
        transferee subsequently acquires the Trust Property as set forth under Section 8.2 of the Transfer and Servicing Agreement.  Upon such election, the Class A Certificateholder shall notify the Issuer, the Servicer, the Indenture Trustee, the Owner
        Trustee and the Rating Agencies, in writing of the Payment Date on which such Optional Redemption shall occur, which notice will be provided at least ten (10) days before the Redemption Date.

       

      (iii) After the Indenture Trustee receives the notice set forth in
        either clause (i) or clause (ii) above, the Indenture Trustee will promptly notify the Noteholders (and any related expenses incurred by the Indenture Trustee shall be payable by the Issuer):

       

      
        
          	

                	(A)	
                  of the Redemption Date;

                

        

      

       

      
        
          	

                	(B)	
                  of the outstanding Note Balance of each Class of the Notes to be redeemed;

                

        

      

       

      
        
          	

                	(C)	
                  of the place to surrender the Notes for final payment (which will be the office or agency of the Issuer maintained under Section 3.2); and

                

        

      

       

      
        
          	

                	(D)	
                  that on the Redemption Date, the outstanding Note Balance of the Notes plus accrued and unpaid interest and any unpaid Make-Whole Payments on the Notes will become due and payable in full and that interest on the Notes will cease to
                    accrue from and after the Redemption Date, unless the Issuer fails to pay the Notes on the Redemption Date.

                

        

      

       

      Failure to give notice of redemption to a Noteholder, or any defect therein, shall not impair or affect the validity of the redemption of any other Note.

       

      (b) Deposit of Note Redemption Price.  Amounts required to be deposited into the
        Collection Account to effectuate a redemption of the Notes will be deposited on the Redemption Date into the Collection Account, as required under Section 8.1 of the Transfer and Servicing Agreement or Section 8.2 of the Transfer and Servicing
        Agreement, as applicable, and the Notes will be paid in full on the Redemption Date.

       

      
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      (c) Release of Funds.  On the Redemption Date, the outstanding Note Balance of
        the Notes plus accrued and unpaid interest and any unpaid Make-Whole Payments on the Notes will become due and payable and interest on the Notes will cease to accrue from and after the Redemption Date, unless the Issuer fails to pay the Notes on
        the Redemption Date.  On redemption, the Indenture Trustee will release the Collateral from the Lien of this Indenture and release to the Issuer or any other Person entitled to funds then in the Bank Accounts under this Indenture according to
        Section 8.4(c).

       

      ARTICLE XI

        OTHER AGREEMENTS

       

      Section 11.1    No Petition.  The Indenture Trustee and each Noteholder
        or Note Owner, by accepting a Note or an interest or participation in a Note, agrees that, before the date that is one year and one day (or, if longer, any applicable preference period) after the payment in full of (a) all securities issued by the
        Depositor or by a trust for which the Depositor was a depositor and (b) the Notes, it will not start or pursue against, or join any other Person in starting or pursuing against, (i) the Depositor or (ii) the Issuer, respectively, any bankruptcy,
        reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law; provided that the foregoing shall not be deemed to prevent the Indenture Trustee from filing a proof of claim in any such
        proceeding.  This Section 11.1 will survive the resignation or removal of the Indenture Trustee under this Indenture and the termination of this Indenture.

       

      Section 11.2    [Reserved].

       

      Section 11.3    Issuer Orders; Certificates and Opinions.

       

      (a) Issuer Order or Issuer Request.  For an order or request by the Issuer to the
        Indenture Trustee to take an action under this Indenture or any other Transaction Document, the Issuer will deliver the following documents to the Indenture Trustee: (i) a written order (an “Issuer Order”) or a written request (an “Issuer
          Request”), signed in the name of the Issuer by a Responsible Person and delivered to the Indenture Trustee, (ii) an Officer’s Certificate of the Issuer stating that all conditions in this Indenture or other Transaction Documents for the
        proposed action have been satisfied, (iii) an Opinion of Counsel stating that such action is authorized or permitted by the Indenture and the other Transaction Documents and all conditions precedent have been satisfied and (iv) if required by the
        TIA, an Independent Certificate.  However, if this Indenture requires the furnishing of specific documents for the action to be taken, no additional certificate or opinion is required to be delivered.

       

      (b) Form of Certificates and Opinions.

       

      (i) Each certificate or opinion on compliance with a condition or
        covenant in this Indenture will include:

       

      
        
          	

                	(A)	
                  a statement that each signatory of the certificate or opinion has read the covenant or condition and the definitions in this Indenture or the Transaction Document relating to the covenant or condition;

                   

                  

                

        

      

      
        51

        
          

      

      
        
          	

                	(B)	
                  a brief statement about the nature and scope of the examination or investigation on which the statements or opinions in the certificate or opinion are based;

                

        

      

       

      
        
          	

                	(C)	
                  a statement that, in the opinion of the signatory, the signatory has made an examination or investigation if necessary to enable the signatory to express an informed opinion on whether or not the covenant or condition has been
                    complied with; and

                

        

      

       

      
        
          	

                	(D)	
                  a statement about whether, in the opinion of the signatory, the condition or covenant has been complied with.

                

        

      

       

      (ii) Any Officer’s Certificate of a Responsible Person of the Issuer
        may be based, for legal matters, on an opinion of counsel, unless that Responsible Person knows, or in the exercise of reasonable care should know, that the opinion is erroneous.  Any Officer’s Certificate of a Responsible Person of the Issuer or
        opinion of counsel may be based, for factual matters, on an Officer’s Certificate of a Responsible Person of the Servicer, the Depositor or the Issuer (including by the Administrator on behalf of the Issuer), stating that the information about
        those factual matters is in the possession of the Servicer, the Depositor, the Issuer or the Administrator, unless the Responsible Person of the Issuer or counsel knows, or in the exercise of reasonable care should know, that the Officer’s
        Certificate is erroneous.

       

      (c) Ordinary Course of Business.  The Issuer may, without furnishing any
        Officer’s Certificates under this Section 11.3, (i) collect, sell or dispose of Receivables in the ordinary course of its business, so long as Collections and other proceeds of the dispositions are applied according to this Indenture and (ii) make
        cash payments out of the Bank Accounts, in each case, as and if permitted or required by the Transaction Documents.

       

      (d) Exemptive Orders.  If the Commission issues an exemptive order under Section
        304(d) of the TIA modifying the Indenture Trustee’s obligations under Sections 314(c) and 314(d)(1) of the TIA, the Indenture Trustee will release property from the Lien of this Indenture only according to the Transaction Documents and the
        conditions and procedures stated in the exemptive order.

       

      Section 11.4    Acts of Noteholders.

       

      (a) Any request, demand, authorization, direction, notice, consent, waiver or other
        action provided by this Indenture to be given or taken by the Noteholders or a stated percentage of Noteholders may be embodied in and evidenced by one or more instruments or documents signed by the Noteholders or Note Owners in person or by agents
        duly appointed in writing.  Except as otherwise expressly stated in this Indenture, the action will become effective when the instruments or documents are delivered to the Indenture Trustee and, if required, to the Issuer.  Such instruments or
        documents (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders signing such instrument or document.  Proof of execution of such instrument or of a writing appointing any such agent
        shall be sufficient for any purpose of this Indenture and conclusive in favor of the Indenture Trustee if

       

      
        52

        
          

      

      made in the manner provided in this Section 11.4.  Any such acts will bind the Noteholder of every Note issued upon the registration of the Note or in exchange for the Note or in place of the Note, for all purposes
        including in respect of anything done, omitted or suffered to be done by the Indenture Trustee or the Issuer in reliance thereon, whether or not notation of the action is made on the Note.

       

      (b) The fact and date of the execution by any Person of any such instrument or document
        may be proved in any manner that the Indenture Trustee deems sufficient.

       

      (c) The ownership of Notes shall be proved by the Note Register.

       

      Section 11.5    Issuer Obligation.  No recourse may be taken, directly
        or indirectly, for the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under this Indenture or a certificate or other writing delivered under this Indenture or the Notes, against (a) the Indenture Trustee or
        the Owner Trustee each in its individual capacity, (b) each holder of a beneficial interest in the Issuer, (c) each partner, owner, beneficiary, agent, officer, director, employee or agent of the Indenture Trustee or the Owner Trustee, each in its
        individual capacity or (d) each holder of a beneficial interest in the Owner Trustee or the Indenture Trustee, each in its individual capacity.  The Indenture Trustee and the Owner Trustee have none of these obligations in their individual
        capacities.  For all purposes of this Indenture, the Owner Trustee will be subject to, and have the benefits of, Articles V, VI and VII of the Trust Agreement.

       

      Section 11.6    Conflict with Trust Indenture Act.  If any part of this
        Indenture limits, qualifies or conflicts with any other part of this Indenture that is required or deemed to be included in this Indenture by the TIA, the required or deemed part will control.  Sections 310 through 317 of the TIA that impose
        obligations on a Person (including those automatically deemed included in this Indenture unless expressly excluded by this Indenture) are a part of and govern this Indenture.

       

      ARTICLE XII

        MISCELLANEOUS

       

      Section 12.1    Benefits of Indenture; Third-Party Beneficiaries.  This
        Indenture and the Notes are for the benefit of and will be binding on the parties and their permitted successors and assigns.  The Secured Parties, each Person with rights to payments or distributions under this Indenture and the Certificateholders
        will be third-party beneficiaries of this Indenture and may enforce this Indenture according to its terms.  No other Person will have any right or obligation under this Indenture or the Notes.

       

      Section 12.2    Notices.

       

      (a) Notices to Parties.  Notices, requests, directions, consents, waivers or
        other communications to or from the parties to this Indenture must be in writing and will be considered received by the recipient:

       

      (i) for overnight mail, on delivery or, for registered first class
        mail, postage prepaid, three (3) days after deposit in the mail properly addressed to the recipient;

       

      
        53

        
          

      

      (ii)             for a fax, when receipt is confirmed by telephone, reply email or reply fax from the recipient;

       

      (iii)            for an email, when receipt is confirmed by telephone or reply email from the recipient; and

       

      (iv)            for an electronic posting to a password-protected website to which the recipient has access, on delivery of an email (without the requirement of confirmation of
        receipt) stating that the electronic posting has been made.

       

      (b) Notice Addresses.  A notice, request, direction, consent, waiver or other
        communication will be addressed to the recipient stated in Schedule B to the Transfer and Servicing Agreement, which address the party may change by notifying the other party.

       

      (c) Notice to Noteholders.  Notices to a Noteholder will be considered received
        by the Noteholder:

       

      (i) for Definitive Notes, for overnight mail, on delivery or, for
        registered first class mail, postage prepaid, three (3) days after deposit in the mail properly addressed to the Noteholder at its address in the Note Register; or

       

      (ii)             for Book-Entry Notes, when delivered under the procedures of the Clearing Agency, whether or not the Noteholder actually receives the notice.

       

      (d) Notices to Rating Agencies.  Where this Indenture requires for notice to the
        Rating Agencies, failure to give the notice will not affect other rights or obligations under this Indenture, and will not be a Default or Event of Default.

       

      (e) Waiver of Notices.  Where this Indenture provides for notice in any manner,
        such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event and such waiver shall be the equivalent of such notice.  Waivers of notice by the Noteholders shall be filed with the Indenture
        Trustee but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

       

      Section 12.3    GOVERNING LAW.  THIS INDENTURE, INCLUDING THE RIGHTS
        AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT WITHOUT REGARD
        TO ANY OTHERWISE APPLICABLE CONFLICTS OF LAW PRINCIPLES), AND THE LAW OF THE STATE OF NEW YORK SHALL GOVERN ALL ISSUES SPECIFIED IN ARTICLE 2(1) OF THE HAGUE SECURITIES CONVENTION.

       

      Section 12.4    Submission to Jurisdiction.  Each party submits to the
        nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for legal proceedings relating to this Indenture.  Each party irrevocably waives, to
        the fullest extent permitted by law, any objection

       

      
        54

        
          

      

      that it may now or in the future have to the venue of a proceeding brought in such a court and any claim that the proceeding was brought in an inconvenient forum.

       

      Section 12.5    WAIVER OF JURY TRIAL.  TO THE EXTENT PERMITTED BY
        APPLICABLE LAW, EACH PARTY HERETO IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF, OR IN CONNECTION WITH, THIS INDENTURE ANY MATTER ARISING THEREUNDER WHETHER SOUNDING IN CONTRACT, TORT OR
        OTHERWISE.

       

      Section 12.6    No Waiver; Remedies.  No party’s failure or delay in
        exercising a power, right or remedy under this Indenture will operate as a waiver.  No single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power, right or remedy or the exercise of any other
        power, right or remedy.  The powers, rights and remedies under this Indenture are in addition to any powers, rights and remedies under law.

       

      Section 12.7    Severability.  If a part of this Indenture is held
        invalid, illegal or unenforceable, then it will be deemed severable from the remaining Indenture and will not affect the validity, legality or enforceability of the remaining Indenture.

       

      Section 12.8    Headings.  The headings in this Indenture are included
        for convenience and will not affect the meaning or interpretation of this Indenture.

       

      Section 12.9    Counterparts.  This Indenture may be executed in
        multiple counterparts.  Each counterpart will be an original and all counterparts will together be one document.

       

      Section 12.10               Customer Identification Program.  To help the government fight the funding of terrorism and money laundering activities, Federal law
        requires all financial institutions to obtain, verify and record information that identifies each Person who opens an account.  For a non-individual person such as a business entity, charity, a trust or other legal entity, the Indenture Trustee and
        any Qualified Institution may ask for documentation to verify its formation and existence as a legal entity. They may also ask to see financial statements, licenses, identification and authorization from individuals claiming authority to represent
        the entity or other relevant documentation.

       

      Section 12.11    Limitation of Rights of the Cap Counterparty.  All of
        the rights of the Cap Counterparty in, to and under this Indenture or any other Transaction Document, other than the Cap Agreement (including, but not limited to, the Cap Counterparty’s rights to receive notice of any action hereunder or under any
        other Transaction Document and to give or withhold consent to any action hereunder or under any other Transaction Document), shall terminate upon the termination of the Cap Agreement in accordance with the terms thereof.

       

      Section 12.12    Intent of the Parties; Reasonableness.  The Issuer and
        the Indenture Trustee acknowledge and agree that the purpose of Sections 3.9 and 6.6 of this Indenture is to facilitate compliance by the Issuer and the Depositor with the provisions of Regulation AB and related rules and regulations of the
        Commission.  Neither the Issuer nor the Administrator (acting on behalf of the Issuer) shall exercise its right to request delivery of information or other performance under these provisions other than in good faith, or for purposes other than
        compliance with the Securities Act, the Exchange Act and the rules and regulations of the

       

      
        55

        
          

      

      Commission thereunder (or the provision in a private offering of disclosure comparable to that required under the Securities Act).  The Indenture Trustee acknowledges that interpretations of the requirements of
        Regulation AB may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to comply with
        reasonable requests made by the Issuer (or the Administrator, acting on behalf of the Issuer) in good faith for delivery of information under these provisions on the basis of evolving interpretations of Regulation AB.  In connection with this
        transaction, the Indenture Trustee shall cooperate fully with the Issuer (or the Administrator, acting on behalf of the Issuer) to deliver to the Issuer (or the Administrator, acting on behalf of the Issuer), any and all statements, reports,
        certifications, records and any other information necessary in the good faith determination of the Issuer (or the Administrator, acting on behalf of the Issuer) to permit the Issuer to comply with the provisions of Regulation AB, together with such
        disclosures relating to the Indenture Trustee reasonably believed by the Issuer (or the Administrator, acting in good faith on behalf of the Issuer) to be necessary in order to effect such compliance.  The Issuer (or the Administrator, acting on
        behalf of the Issuer) shall cooperate with the Indenture Trustee by providing timely notice of requests for information under these provisions and by reasonably limiting such requests to information required, in the reasonable judgment or the
        Issuer to comply with Regulation AB.

       

      ARTICLE XIII

        THE CAP AGREEMENT

       

      Section 13.1    Duties With Respect to the Cap Agreement.  With respect
        to the Cap Agreement, the Issuer will, or will cause the Administrator to:

       

      (a) prepare for execution all documents that are the duty of the Issuer to prepare or
        deliver pursuant to the Cap Agreement;

       

      (b) direct the Cap Counterparty to remit any Cap Payments into the Collection Account no
        later than the second Business Day preceding the related Payment Date;

       

      (c) if the Cap Counterparty is required to post collateral under the Cap Agreement,
        coordinate with the Servicer and the Indenture Trustee to establish a Cap Collateral Account (as set forth in the Cap Agreement and in Section 9.10 of the Transfer and Servicing Agreement), and coordinate the holding of securities deposited therein
        and the investment of any cash deposited therein;

       

      (d) provide to the Rating Agencies a copy of any proposed amendment or supplement to the
        Cap Agreement at least five (5) days prior to the effective date of such amendment or supplement.  Such proposed amendment or supplement will be effective only after the Rating Agency Condition is satisfied, unless such amendment or supplement
        solely clarifies any term or provision, corrects any inconsistency, cures any ambiguity or corrects any typographical error in the Cap Agreement;

       

      (e) obtain from the Cap Counterparty the determination of One-Month LIBOR under the Cap
        Agreement and the amount of any Cap Payments payable on each Payment Date; and

       

      (f) use reasonable efforts to enforce the rights of the Issuer under the Cap Agreement.

       

      
        56

        
          

      

      Section 13.2    Enforcement of Cap Agreement; Replacement Cap Agreement.

       

      (a) If at any time the Cap Agreement becomes subject to early termination due to the
        occurrence of any “Termination Event” or “Event of Default” (as each such term is defined in the Cap Agreement), the Administrator or the Issuer shall deliver written notice of the occurrence of such “Termination Event” or “Event of Default” (as
        each such term is defined in the Cap Agreement) to the Owner Trustee and the Indenture Trustee and the Issuer, or the Administrator on behalf of the Issuer, and, if applicable, the Indenture Trustee (at the written direction of the Noteholders of a
        majority of the Note Balance of the Controlling Class) shall use reasonable efforts (following the expiration of any applicable grace period) to enforce the rights of the Issuer thereunder as may be permitted by the terms of the Cap Agreement and
        consistent with the terms hereof.

       

      (b) Promptly following the early termination of the Cap Agreement due to a “Termination
        Event” or “Event of Default” (as each such term is defined in the Cap Agreement) (unless the Indenture Trustee is selling or liquidating the Collateral pursuant to the Indenture), the Issuer shall, or shall cause the Administrator to, use
        reasonable efforts to enter into a replacement interest rate cap agreement on terms similar to those of the Cap Agreement with an Eligible Replacement Cap Counterparty.

       

      ARTICLE XIV

        ASSET REPRESENTATIONS REVIEW

       

      Section 14.1    Noteholder and Note Owner Requests for Vote on Asset
          Representations Review.  If the Indenture Trustee receives a notice from the Servicer that the Servicer will be providing notice to the Administrator, the Indenture Trustee and each Noteholder pursuant to Section 11.1(a) of the Transfer and
        Servicing Agreement regarding the occurrence of a Delinquency Trigger, then the Indenture Trustee shall promptly inform the Servicer and the Administrator regarding the method by which Noteholders and Note Owners may contact the Indenture Trustee
        in order to request a vote on whether to cause the 60-Day Delinquent Receivables to be reviewed by the Asset Representations Reviewer pursuant to the terms of the Asset Representations Review Agreement.  The Indenture Trustee shall promptly notify
        the Servicer, the Depositor and the Administrator upon the receipt of any request for a vote.  The Indenture Trustee will set a record date for purposes of determining the identity of Noteholders or Note Owners, as applicable, entitled to vote in
        accordance with TIA Section 316(c) as of the date of filing of the Form 10-D that disclosed that the Delinquency Trigger was met or exceeded.  Noteholders and Note Owners may request a vote not later than ninety (90) days after the date on which
        the Form 10-D describing the occurrence of such Delinquency Trigger shall have been filed by the Administrator, on behalf of the Issuer, pursuant to the terms of Section 2.9(a)(i) of the Administration Agreement; provided that, if the requesting
        party is a Note Owner and not a Noteholder, the Note Owner must include with its request a written certification (in a form reasonably acceptable to the Indenture Trustee) that the requesting party is a Note Owner, together with one of the
        following additional forms of documentation of the requesting party’s status as a Note Owner: (A) a trade confirmation; (B) an account statement; (C) a letter from a broker-dealer that is reasonably acceptable to the Indenture Trustee; or (D) any
        other form of documentation that is reasonably acceptable to the Indenture Trustee (any such Note Owner who provides the required certification and documentation, a “Verified Note Owner”).  The Indenture

       

      

      
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       Trustee shall promptly notify the Servicer, the Depositor and the Administrator if Noteholders and Verified Note Owners representing at least 5% of the aggregate Note Balance (such requesting Noteholders and Verified
        Note Owners, collectively, the “Requesting Noteholders”) properly and timely request a vote to cause the 60-Day Delinquent Receivables to be reviewed by the Asset Representations Reviewer pursuant to the terms of the Asset Representations
        Review Agreement.  For the avoidance of doubt, the Indenture Trustee shall not be required to (i) determine whether, or give notice to Noteholders that, a Delinquency Trigger has occurred or (ii) to provide any instruction regarding any Asset
        Representations Review (other than to provide a Review Notice) or to determine which Receivables are subject to any particular Asset Representations Review.

       

      Section 14.2    Noteholder and Note Owner Vote on Asset Representations
          Review.  Beginning promptly after receipt from the Administrator of a copy of a notice sent to Noteholders and Note Owners pursuant to Section 2.9(a)(ii) of the Administration Agreement, the Indenture Trustee shall cause the initiation of
        such a review to be submitted to a yes or no vote of the Noteholders (with respect to Book-Entry Notes, as directed by the related Note Owners via the applicable Clearing Agency pursuant to its procedures for such votes) of record as of the most
        recent Record Date.  Any Noteholder vote about whether to direct the Asset Representations Reviewer to conduct an Asset Representations Review shall be conducted by the Indenture Trustee in accordance with its standard internal vote solicitation
        process.  The Indenture Trustee may select a vote agent that is experienced in the administration of Noteholder votes and/or consent solicitations to conduct and administer any Noteholder vote about whether to direct the Asset Representations
        Reviewer to conduct an Asset Representations Review and, so long as the Indenture Trustee selects such vote agent with due care, the Indenture Trustee will not be liable for any actions or inactions of such vote agent. If, by no earlier than the
        deadline specified by the Administrator pursuant to Section 2.9(a)(ii) of the Administration Agreement, a majority of the Noteholders casting a vote so direct (provided that such affirmative votes represent votes by Noteholders holding at least 5%
        of the aggregate Note Balance), the Indenture Trustee will promptly notify the Asset Representations Reviewer, the Administrator and the Servicer that the requisite Noteholders have directed the Asset Representations Reviewer to perform a review of
        the 60-Day Delinquent Receivables for the purpose of determining whether such 60-Day Delinquent Receivables were in compliance with the Eligibility Representation made by the applicable Originator pursuant to Section 3.3 of the Originator
        Receivables Transfer Agreement or by the Servicer pursuant to Section 3.3 of the Master Trust Receivables Transfer Agreement.

       

      Section 14.3    Evaluation of Review Report.  If a Noteholder or a
        Verified Note Owner notifies the Indenture Trustee in writing that it considers any non-compliance of any representation to be a breach of the applicable Receivables Transfer Agreement, or requests in writing that any Receivable be reacquired or
        acquired, as applicable (including, for the avoidance of doubt, as described in Section 11.2 of the Transfer and Servicing Agreement), the Indenture Trustee will forward, as soon as practicable and within five (5) Business Days, that written notice
        to the Administrator and the related Originator or the Servicer (in the case of Receivables transferred by the Master Trust).  In addition, the Indenture Trustee, on behalf of the Requesting Party may, but is not obligated to, request the
        reacquisition or acquisition, as applicable, of a 60-Day Delinquent Receivable on behalf of all Noteholders.  Subject to the provisions for indemnification and certain limitations contained in this Indenture, the Indenture Trustee (acting

       

      
        58

        
          

      

      at the direction of Noteholders evidencing at least a majority of the aggregate Note Balance of the Controlling Class of Notes, acting together as a single Class) shall, in the time, method and place directed by such
        Noteholders, exercise any trust or power conferred on the Indenture Trustee, including the ability to assert to the Administrator and the related Originator or the Servicer (in the case of Receivables transferred by the Master Trust), on behalf of
        all Noteholders, whether any such non-compliance may be a breach and to request the reacquisition or acquisition, as applicable, of the related 60-Day Delinquent Receivable.  The Indenture Trustee shall have no duty or obligation to determine
        whether any noncompliance with representations or warranties constitute a breach under the Transaction Documents or to make any determination as to the materiality of any breach.

       

      The related Originator or the Servicer (in the case of Receivables transferred by the Master Trust) will have the sole ability to determine if there was non-compliance with the Eligibility
        Representation made by it that constitutes a breach, and whether to reacquire or acquire, as applicable, the related 60-Day Delinquent Receivable from the Issuer.

      

      

      

      

       

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        59

        
          

      

      IN WITNESS WHEREOF, the undersigned has caused this Indenture to be executed by its duly authorized officer as of the date and year first above written.

       

      

      

      
        VERIZON OWNER TRUST 2019-C,

          as Issuer

        

        

        
          
            	

                  	By:	
                    Wilmington Trust, National Association, not in its 

                    individual capacity but solely as Owner Trustee of 

                    Verizon Owner Trust 2019-C

                  

          

        

        

        

        

        

        

        

        By:      /s/ Clarice Wright                            

        Name: Clarice Wright

        Title:  Assistant Vice President

        

        

        

        

        

        

        U.S. BANK NATIONAL ASSOCIATION,

          not in its individual capacity but solely as Indenture Trustee and as Note Paying Agent

        

        

        

        

        

        

        By:     /s/ Matthew M. Smith                            

        Name: Matthew M. Smith

        Title:  Vice President

      

      

      

      

      

      

      

      

      

      
        
          

      

      
      Exhibit A

      

      

      Form of Notes

       

      UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
        NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN ANOTHER NAME REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND PAYMENT IS MADE TO CEDE & CO. OR TO ANOTHER ENTITY REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
        PLEDGE OR OTHER USE OF THIS NOTE FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER OF THIS NOTE, CEDE & CO., HAS AN INTEREST IN THIS NOTE.

       

      THIS NOTE IS NOT AN OBLIGATION OF, AND WILL NOT BE INSURED OR GUARANTEED BY, ANY GOVERNMENTAL AGENCY OR VERIZON ABS LLC, CELLCO PARTNERSHIP D/B/A VERIZON WIRELESS, VERIZON COMMUNICATIONS INC., THE ORIGINATORS, THE
        MASTER TRUST, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES.  THE PRINCIPAL AND INTEREST ON THIS NOTE IS PAYABLE SOLELY FROM PAYMENTS ON THE RECEIVABLES AND AMOUNTS ON DEPOSIT IN THE BANK ACCOUNTS.

       

      EACH HOLDER OF THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE) THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SECTION 4975 OF THE INTERNAL REVENUE
        CODE OF 1986, AS AMENDED (THE “CODE”), OR A FEDERAL, STATE, LOCAL OR NON-U.S. LAW OR REGULATION THAT IS SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE (A “SIMILAR LAW”) AND ANY FIDUCIARY ACTING ON BEHALF OF THE HOLDER, BY
        ACCEPTING THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE), IS DEEMED TO REPRESENT THAT ITS PURCHASE, HOLDING AND DISPOSITION OF THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE) DOES NOT AND WILL NOT RESULT IN A NON-EXEMPT
        PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE CODE DUE TO THE APPLICABILITY OF A STATUTORY OR ADMINISTRATIVE EXEMPTION FROM THE PROHIBITED TRANSACTION RULES (OR, IF THE HOLDER IS SUBJECT TO ANY SIMILAR LAW, ITS PURCHASE,
        HOLDING AND DISPOSITION DOES NOT AND WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF THE SIMILAR LAW).

       

      THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS STATED IN THIS NOTE.  ACCORDINGLY, THE OUTSTANDING NOTE BALANCE OF THIS NOTE MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE OF THIS NOTE.

       

      

      

       

      
        A-1

        
          

      

      REGISTERED               $[___________]

      	
              No. R-1

            	
              CUSIP NO. [_______]

            

      

      

      VERIZON OWNER TRUST 2019-C

      

      

      CLASS [A-1a][A-1b][B][C] [One-Month LIBOR1 +] [___]% ASSET BACKED NOTES

       

      Verizon Owner Trust 2019-C, a statutory trust organized under the laws of the State of Delaware (the “Issuer”), for value received, promises to pay to CEDE & CO., or registered assigns,
        the principal sum of [____________] DOLLARS payable during the Amortization Period on the 20th day of each month, or, if that day is not a Business Day, the next succeeding Business Day, starting in November 2019 (each, a “Payment Date”) in
        an amount equal to the aggregate amount payable to Noteholders of Class [A-1a][A-1b][B][C] Notes on that Payment Date from the amounts payable as principal on the Class [A-1a][A-1b][B][C] Notes under Section 3.1 of the Indenture, dated as of
        October 8, 2019 (the “Indenture”), between the Issuer and U.S. Bank National Association, as Indenture Trustee (the “Indenture Trustee”).  However, the entire unpaid Note Balance of this Note will be due and payable on the earlier of
        (a) the [______] Payment Date (the “Final Maturity Date”), or (b) the Redemption Date under Section 10.1 of the Indenture.  The entire unpaid Note Balance of the Notes will be due and payable on the date on which the Notes are declared to
        be, or have automatically become, immediately due and payable under Section 5.2(a) of the Indenture.  Principal payments on the Class [A-1a][A-1b][B][C] Notes will be made pro rata to the Noteholders entitled to those principal payments. 
        Capitalized terms used but not defined in this Note are defined in Article I of the Indenture, which also contains usage rules that apply to this Note.

       

      The Issuer will pay interest on this Note at the rate per annum shown above on each Payment Date until the principal of this Note is paid or made available for payment, on the Note Balance of this
        Note outstanding on the Payment Date immediately preceding such Payment Date (in each case, after giving effect to payments of principal made on the Payment Date immediately preceding such Payment Date), subject to limitations in Section 3.1 of the
        Indenture[Class A-1b only:, and provided that, if the sum of One-Month LIBOR plus [__]% is less than 0.00% for any Interest Period, then the per annum rate at which interest will accrue on this Class A-1b
        Note for such Interest Period will be 0.00%].  [Class A-1a, Class B and Class C only:][Interest on this Note will accrue for each Payment Date from and including the 20th day of the calendar month
        immediately preceding such Payment Date to but excluding the 20th day of the calendar month in which such Payment Date occurs (or, for the initial Payment Date, from and including the Closing Date to but excluding November 20, 2019).  Interest will
        be computed on the basis of a 360-day year of twelve 30 day months.][Class A-1b only:][Interest on this Note will accrue for each Payment Date from and including the Payment Date immediately preceding the
        current Payment Date to but excluding the current Payment Date (or, for the initial Payment Date, from and including the Closing Date to but excluding November 20, 2019).  Interest will be computed on the basis of a 360-day year and the actual
        number of days elapsed in the related Interest Period.]

       

      The principal of and interest and any Make-Whole Payments on this Note are payable in the coin or currency of the United States of America that at the time of payment is legal tender for payment of
        public and private debts.  Payments made by the Issuer on this Note will be

      
        

          ________________

        1 [ONLY FOR THE CLASS A-1B NOTES: Upon the occurrence of a Benchmark Replacement Event, One-Month LIBOR will be replaced by the
          appropriate Benchmark Replacement as set forth in Section 2.16 of the Indenture.

      
        A-2

        
          

      

      applied first to interest due and payable on this Note as stated above and then to the unpaid principal of this Note.

       

      This Note is one of a duly authorized issue of Class [A-1a][A-1b][B][C] [One-Month LIBOR +] [___%] Asset Backed Notes (the “Class [A-1a][A-1b][B][C] Notes”) of the Issuer.  Also authorized
        under the Indenture are the Class [A-1a][A-1b][B][C] Notes.  The Indenture and indentures supplemental to the Indenture state the respective rights and obligations of the Issuer, the Indenture Trustee and the Noteholders.  The Notes are subject to
        the Indenture.

       

      The Class [A-1a][A-1b][B][C] Notes are and will be equally and ratably secured by the collateral pledged as security therefor under the Indenture.  Interest on and principal of the Notes will be
        payable according to the priority of payments stated in Section 8.2 of the Indenture.  [Class B only:][The Class B Notes are subordinated in right of payment to the Class A Notes.] [Class C only:][The Class C Notes are subordinated in right of payment to the Class A and Class B Notes.]

       

      Payments of interest on this Note on each Payment Date, together with each installment of principal if not in full payment of this Note, will be made to the Noteholder of this Note either by wire
        transfer, to the account of the Noteholder at a bank or other entity having proper facilities for the wire transfer, if the Noteholder has given to the Note Registrar proper written instructions at least five (5) Business Days before that Payment
        Date and the Noteholder’s Notes in the aggregate evidence a denomination of not less than $1,000, or, if not, by check mailed first class mail, postage prepaid, to the Noteholder’s address as it appears on the Note Register on each Record Date. 
        However, unless Definitive Notes have been issued to Note Owners, payment will be made by wire transfer to the account designated by Cede & Co., as nominee of the Clearing Agency or a successor nominee.  The payments will be made without
        requiring that this Note be submitted for notation of payment.  Any reduction in the Note Balance of this Note effected by payments made on a Payment Date will bind future Noteholders of this Note and of a Note issued on the registration of
        transfer of this Note or in exchange of this Note or in place of this Note, whether or not noted on this Note.  If money is expected to be available for payment in full of the then remaining unpaid Note Balance of this Note on a Payment Date, then
        the Indenture Trustee, in the name of and on behalf of the Issuer, will notify the Noteholder of this Note as of the Record Date immediately preceding such Payment Date by notice mailed or transmitted by fax before that Payment Date, and the amount
        then due and payable will be payable only on presentation and surrender of this Note at the Indenture Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for those purposes located in The City of New York.

       

      The Issuer will pay interest on overdue installments of interest at the Class [A-1a][A-1b][B][C] Note Interest Rate if lawful.

       

      The Notes may be redeemed, in whole but not in part, in the manner and to the extent described in the Indenture and the Transfer and Servicing Agreement.

       

      The transfer of this Note is subject to the restrictions on transfer stated on the face of this Note and to the other limitations in the Indenture.  Subject to the satisfaction of those
        restrictions and limitations, the transfer of this Note may be registered on the Note Register on surrender of

       

      
        A-3

        
          

      

      this Note for registration of transfer at the office or agency designated by the Issuer under the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Indenture
        Trustee duly executed by, the Noteholder of this Note or its attorney-in-fact, with the signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, and then one or more new Notes of the same Class in
        authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No service charge will be charged for the registration of transfer or exchange of this Note, but the transferor may be
        required to pay an amount to cover any tax or other governmental charge that may be imposed under any registration of transfer or exchange.

       

      Each Noteholder or Note Owner, by accepting a Note or, for a Note Owner, an interest or participation in a Note, agrees that no recourse may be taken, directly or indirectly, for the obligations of
        the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or a certificate or other writing delivered for the Notes and the Indenture, against (i) the Indenture Trustee or the Owner Trustee, each in its individual
        capacity, (ii) any holder of a beneficial interest in the Issuer, (iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of the Indenture Trustee or the Owner Trustee, each in its individual capacity or (iv) any holder
        of a beneficial interest in the Owner Trustee or the Indenture Trustee, each in its individual capacity.

       

      The obligations of the Issuer under the Indenture are solely the obligations of the Issuer and do not represent an obligation or interest in any assets of the Depositor other than the Depositor
        Transferred Property conveyed to the Issuer under the Transfer and Servicing Agreement.  Each Noteholder and Note Owner, by its acceptance of a Note or an interest or participation in a Note, acknowledges and agrees that it has no right, title or
        interest in or to any Other Assets of the Depositor.  If the Noteholder or Note Owner either (i) asserts an interest or claim to, or benefit from, Other Assets or (ii) is deemed to have any interest, claim to or benefit in or from Other Assets,
        whether by operation of law, legal process, under insolvency laws or otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code), then the Noteholder or Note Owner further acknowledges and agrees that any interest, claim or benefit in
        or from Other Assets is and will be expressly subordinated to the indefeasible payment in full of the other obligations and liabilities, which, under the relevant documents relating to the securitization or conveyance of those Other Assets, are
        entitled to be paid from, entitled to the benefits of, or secured by those Other Assets (whether or not any entitlement or security interest is legally perfected or otherwise entitled to a priority of distributions or application under applicable
        law, including insolvency laws, and whether or not asserted against the Depositor), including the payment of post-petition interest on the other obligations and liabilities.  THIS PARAGRAPH IS A SUBORDINATION AGREEMENT WITHIN THE MEANING OF SECTION
        510(a) OF THE BANKRUPTCY CODE.

       

      Each Noteholder or Note Owner, by accepting a Note or, for a Note Owner, an interest or participation in a Note, agrees that, before the date that is one year and one day (or, if longer, any
        applicable preference period) after the payment in full of (a) all securities issued by the Depositor or by a trust for which the Depositor was a depositor and (b) the Notes, it will not start or pursue against (i) the Depositor or (ii) the Issuer,
        respectively, or join any other Person in starting or pursuing against the Depositor or the Issuer of, any bankruptcy, reorganization,

       

      
        A-4

        
          

      

      arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law.

       

      The Issuer has entered into the Indenture, and this Note is issued with the intention that, for purposes of U.S. federal, State and local income tax, franchise tax, and any other tax imposed on or
        measured in whole or in party by income, Notes will qualify as indebtedness of the Issuer secured by the Collateral.  Each Noteholder or Note Owner, by its acceptance of a Note or an interest or participation in a Note, will be deemed to agree to
        treat the Notes as indebtedness for purposes of U.S. federal, State and local income tax, franchise tax and any other tax imposed on or measured in whole or in part by income and the Issuer as a mere security device formed to hold the Receivables
        and issue Notes and Certificates.

       

      For any date, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Note is registered as of that date as the owner of this
        Note for the purpose of receiving payments of principal of and any interest on the Note and for all other purposes, without regard to any notice or other information to the contrary.

       

      The Indenture permits, with some exceptions requiring the consent of all adversely affected Noteholders under the Indenture, the amendment of the Indenture and the modification of the rights and
        obligations of the Issuer and the rights of the Noteholders under the Indenture by the Issuer with the consent of the Noteholders of Notes evidencing not less than a majority of the Note Balance of the Controlling Class.  The Indenture also permits
        the Indenture Trustee to amend or waive some terms and conditions in the Indenture without the consent of the Noteholders if some conditions are satisfied.  In addition, the Indenture contains terms permitting the Noteholders of Notes evidencing
        stated percentages of the Note Balance of the Notes or of the Controlling Class, on behalf of all Noteholders, to waive compliance by the Issuer with some terms of the Indenture and some defaults under the Indenture and their consequences.  Any
        consent or waiver by the Noteholder of this Note will be conclusive and bind the Noteholder and all future Noteholders of this Note and of any Note issued on the registration of transfer of this Note or in exchange of this Note or in place of this
        Note whether or not notation of the consent or waiver is made on this Note.

       

      The term “Issuer,” as used in this Note, includes any successor to the Issuer under the Indenture.

       

      The Issuer is permitted by the Indenture, under some circumstances, to merge or consolidate, subject to the rights of the Indenture Trustee and the Noteholders under the Indenture.

       

      The Notes are issuable only in registered form in denominations as stated in the Indenture, subject to some limitations in the Indenture.

       

      THIS NOTE AND THE INDENTURE, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING
        SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW

       

      
        A-5

        
          

      

      OF THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF LAW PROVISIONS THEREOF).

       

      No reference in this Note to the Indenture, and no terms of this Note or of the Indenture, will alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
        principal of and interest on this Note at the time, place and rate, and in the coin or currency prescribed in this Note.

       

      Except as permitted under the Transaction Documents, none of U.S. Bank National Association, in its individual capacity, Wilmington Trust, National Association, in its individual capacity, any
        owner of a beneficial interest in the Issuer, or their respective partners, beneficiaries, agents, officers, directors, employees or successors or assigns will be personally liable for, nor will recourse be had to any of them for, the payment of
        principal of or interest on this Note or performance of, or omission to perform, any of the covenants, obligations or indemnifications in the Indenture.  The Noteholder of this Note, by its acceptance of this Note, agrees that, except as permitted
        in the Transaction Documents, for an Event of Default under the Indenture, the Noteholder has no claim against those Persons for any deficiency, loss or claim from this Note.  However, nothing in this Note will be taken to prevent recourse to, and
        enforcement against, the assets of the Issuer for liabilities, obligations and undertakings in the Indenture or in this Note.

       

      Unless the certificate of authentication on this Note has been executed by the Indenture Trustee whose name appears below by manual signature, this Note will not have the benefit of the Indenture,
        or be valid or obligatory for any purpose.

       

      [Remainder of Page Left Blank]

      

      

      
        A-6

        
          

      

      The Issuer has caused this instrument to be signed, manually or in facsimile, by its Responsible Person, as of the date below.

       

      Date: [__________]

      	 	
              VERIZON OWNER TRUST 2019-C

            
	 	 	 
	 	
              BY:

            	
              Wilmington Trust, National Association, not in its 

              individual capacity but solely as Owner Trustee of 

              Verizon Owner Trust 2019-C

            
	 	 	 
	 	 	 
	 	 	 
	 	
              By:

            	
                                                                                                 

            
	 	 	
              Name:

            
	 	 	
              Title:

            

      

      

      

      

      CERTIFICATE OF AUTHENTICATION

       

      This is one of the Class [A-1a][A-1b][B][C] Notes designated above and referred to in the Indenture.

       

      Date: [__________]

      	 	
              U.S. BANK NATIONAL ASSOCIATION,

            
	 	 	
              not in its individual capacity but

                  solely as Indenture Trustee

            
	 	 	 
	 	 	 
	 	 	 
	 	
              By:

            	
                                                                                                 

            
	 	 	
              Name:

            
	 	 	
              Title:

            

      

      

      

      

      
        A-7

        
          

      

      ASSIGNMENT

       

      Social Security or taxpayer I.D. or other identifying number of assignee:

       

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

       

      ___________________________________

        (name and address of assignee)

       

      the within Note and all rights under said Note, and hereby irrevocably constitutes and appoints _________________, attorney, to transfer said Note on the books kept for registration of said Note, with full power of
        substitution in the premises.

       

      

      

      	
              Dated:  

                

            	 	 	 	
              */

            
	  

            	 	 	
              Signature Guaranteed

            	 

      

      

          */

      

      

      

      

      

      

      

      

      

      

      
        
          	*/	
                  NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatever.  The signature
                    must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion Program or another “signature
                    guarantee program” selected by the Note Registrar in addition to, or in substitution for, the Securities Transfer Agents Medallion Program, all in accordance with the Exchange Act.

                

        

      

      
        A-8

        
          

      

      
      Exhibit B

      

      

      SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

       

      The assessment of compliance to be delivered by the Indenture Trustee, shall address, at a minimum, the criteria specified below:

      

      

      

      

      	
              Reference

            	
              Criteria

            
	 	
              Cash Collection and Administration

            
	
              1122(d)(2)(ii)

            	
              Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.

            
	
              1122(d)(2)(iv)

            	
              The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of cash) as set
                forth in the transaction agreements.

            
	
              1122(d)(2)(v)

            	
              Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository institution” with
                respect to a foreign financial institution means a foreign financial institution that meets the requirements of § 240.13k-1(b)(1) of the Securities Exchange Act of 1934, as amended.

            
	 	
              Investor Remittances and Reporting

            
	
              1122(d)(3)(ii)

            	
              Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.

            
	
              1122(d)(3)(iii)

            	
              Disbursements made to an investor are posted within two business days to the servicer’s investor records, or such other number of days specified in the transaction agreements.

            
	
              1122(d)(3)(iv)

            	
              Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.

            

      

      

       

      

      

      

      

    

    

    

    

    

    

    

    

  

  

  B-1

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