Document:

Form of Series 2017-1 Indenture Supplement

 Exhibit 4.1 

SERIES 2017-1 

FORM OF INDENTURE SUPPLEMENT 

BETWEEN 
 ALLY MASTER
OWNER TRUST 
 ISSUING ENTITY 

AND 
 WELLS FARGO BANK,
NATIONAL ASSOCIATION 
 INDENTURE TRUSTEE 

DATED AS OF FEBRUARY 22, 2017 

SERIES 2017-1 ASSET BACKED NOTES, 

CLASS A, CLASS B, CLASS C AND CLASS D 

AND 
 SERIES 2017-1 ASSET BACKED EQUITY NOTES 
 CLASS E 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I CREATION OF SERIES 2017-1
NOTES
	  	 	2	  
	 SECTION 1.01
	 	 Designation
	  	 	2	  
	 SECTION 1.02
	 	 Reopening of Class or Tranche of Notes
	  	 	3	  
		
	 ARTICLE II DEFINITIONS
	  	 	3	  
	 SECTION 2.01
	 	 Definitions
	  	 	3	  
	 SECTION 2.02
	 	 Other Definitional Provisions
	  	 	21	  
		
	 ARTICLE III SERVICING FEE
	  	 	22	  
	 SECTION 3.01
	 	 Servicing Compensation
	  	 	22	  
		
	 ARTICLE IV RIGHTS AND OBLIGATIONS OF SERIES
2017-1 NOTEHOLDERS AND ALLOCATION AND APPLICATION OF COLLECTIONS
	  	 	22	  
	 SECTION 4.01
	 	 Collections and Allocations
	  	 	22	  
	 SECTION 4.02
	 	 Determination of Monthly Interest
	  	 	23	  
	 SECTION 4.03
	 	 Determination of Monthly Principal Amount
	  	 	23	  
	 SECTION 4.04
	 	 Application of Available Funds on Deposit in Note Defeasance Account, Collection Account and
Other Sources
	  	 	24	  
	 SECTION 4.05
	 	 Series Charge-Offs
	  	 	29	  
	 SECTION 4.06
	 	 Reallocated Principal Collections
	  	 	30	  
	 SECTION 4.07
	 	 Excess Interest Collections
	  	 	31	  
	 SECTION 4.08
	 	 Shared Principal Collections
	  	 	31	  
	 SECTION 4.09
	 	 Reinstatement of Invested Amount
	  	 	32	  
	 SECTION 4.10
	 	 Note Distribution Account
	  	 	33	  
	 SECTION 4.11
	 	 Reserve Fund
	  	 	33	  
	 SECTION 4.12
	 	 Determination of LIBOR
	  	 	35	  
	 SECTION 4.13
	 	 Account Holder
	  	 	36	  
	 SECTION 4.14
	 	 Transfer Restrictions
	  	 	36	  
	 SECTION 4.15
	 	 Note Defeasance Account
	  	 	38	  
	 SECTION 4.16
	 	 FATCA
	  	 	40	  
	 SECTION 4.17
	 	 Asset Representations Review
	  	 	40	  
	 SECTION 4.18
	 	 Unfulfilled Repurchase Demands; Dispute Resolution
	  	 	42	  
		
	 ARTICLE V DELIVERY OF SERIES 2017-1 NOTES;
DISTRIBUTIONS; REPORTS TO SERIES 2017-1 NOTEHOLDERS
	  	 	46	  
	 SECTION 5.01
	 	 Delivery and Payment for Series 2017-1 Notes
	  	 	46	  
	 SECTION 5.02
	 	 Distributions
	  	 	46	  
	 SECTION 5.03
	 	 Reports and Statements to Series 2017-1
Noteholders
	  	 	47	  
	 SECTION 5.04
	 	 Other Information to be Provided by the Indenture Trustee and the Owner Trustee
	  	 	48	  

  
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	 ARTICLE VI SERIES 2017-1 EARLY AMORTIZATION
EVENTS AND SERIES 2017-1 EVENTS OF DEFAULT
	  	 	49	  
	 SECTION 6.01
	 	 Series 2017-1 Early Amortization Events
	  	 	49	  
	 SECTION 6.02
	 	 Series 2017-1 Events of Default
	  	 	51	  
	 SECTION 6.03
	 	 Acceleration of Maturity; Rescission and Annulment
	  	 	52	  
		
	 ARTICLE VII REDEMPTION OF SERIES 2017-1
NOTES; SERIES LEGAL MATURITY; FINAL DISTRIBUTIONS
	  	 	53	  
	 SECTION 7.01
	 	 Optional Redemption of Series 2017-1 Notes
	  	 	53	  
	 SECTION 7.02
	 	 Series Legal Maturity
	  	 	54	  
		
	 ARTICLE VIII MISCELLANEOUS PROVISIONS
	  	 	55	  
	 SECTION 8.01
	 	 Ratification of Agreement
	  	 	55	  
	 SECTION 8.02
	 	 Form of Delivery of Series 2017-1 Notes
	  	 	56	  
	 SECTION 8.03
	 	 Counterparts
	  	 	56	  
	 SECTION 8.04
	 	 Governing Law
	  	 	56	  
	 SECTION 8.05
	 	 Effect of Headings and Table of Contents
	  	 	56	  
	 SECTION 8.06
	 	 Notices
	  	 	56	  
	 SECTION 8.07
	 	 Submission to Jurisdiction; Waiver of Jury Trial. Each of the parties hereto hereby irrevocably
and unconditionally:
	  	 	56	  
	 SECTION 8.08
	 	 U.S.A. PATRIOT Act
	  	 	57	  
	 SECTION 8.09
	 	 Compliance with Credit Risk Retention Rules
	  	 	57	  
	 SECTION 8.10
	 	 Limitation of Liability of Owner Trustee
	  	 	57	  
			
	 EXHIBIT A
	 	 Form of Note
	  	 	A-1	  
	 EXHIBIT B
	 	 Form of Monthly Statement
	  	 	B-1	  
	 EXHIBIT C
	 	 Servicing Criteria to be Addressed in Indenture Trustee’s Assessment of
Compliance
	  	 	C-1	  

  
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 SERIES 2017-1 INDENTURE SUPPLEMENT, dated as of
February 22, 2017, by and between ALLY MASTER OWNER TRUST, a Delaware statutory trust, as Issuing Entity, and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Indenture Trustee. 

RECITALS 

A.    Section 2.1 of the Indenture provides, among other things, that the Issuing Entity and the Indenture Trustee
may at any time and from time to time enter into an Indenture Supplement to authorize the issuance by the Issuing Entity of Notes in one or more Series. 

B.    The parties to this Indenture Supplement, by executing and delivering this Indenture Supplement, are providing for
the creation of the Series 2017-1 Notes and specifying the Principal Terms thereof. 
 In
consideration of the mutual covenants and agreements contained in this Indenture Supplement, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 

GRANTING CLAUSES 
 In
addition to the grant of the Indenture, the Issuing Entity hereby grants to the Indenture Trustee, for the exclusive benefit of the Holders of the Series 2017-1 Notes, all of the Issuing Entity’s right,
title and interest (whether now owned or hereafter acquired) in, to and under the following (collectively, the “Series Collateral”) with respect to the Series 2017-1: 

(i)    all Collections on the Receivables allocated to the Series
2017-1 Notes; 
 (ii)    all Eligible Investments and all monies,
instruments, securities, security entitlements, documents, certificates of deposit and other property from time to time on deposit in or credited to the Series Accounts (including any subaccount thereof) and in all interest, proceeds, earnings,
income, revenue, dividends and other distributions thereof (including any accrued discount realized on liquidation of any investment purchased at a discount) other than Investment Proceeds with respect to the Note Defeasance Account; and 

(iii)    all present and future claims, demands, causes of action and choses in action regarding any of the
foregoing and all payments on any of the foregoing and all proceeds of any nature whatsoever regarding any of the foregoing, including all proceeds of the voluntary or involuntary conversion thereof into cash or other liquid property and all cash
proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, condemnation awards, rights to payment of any kind and other forms of obligations and receivables, instruments and
other property that at any time constitute any part of or are included in the proceeds of any of the foregoing. 

 The foregoing grants are made in trust to secure (a) the Issuing Entity’s obligations
under the Series 2017-1 Notes equally and ratably without prejudice, priority or distinction between any Series 2017-1 Note and any other Series 2017-1 Notes, other than as expressly provided in this Indenture Supplement, (b) the payment of all other sums payable under the Series 2017-1 Notes, the Indenture and
this Indenture Supplement and (c) the compliance with the terms and conditions of the Series 2017-1 Notes, the Indenture and this Indenture Supplement, all as provided herein or therein. 

The Indenture Trustee, as indenture trustee on behalf of the Noteholders, hereby acknowledges the foregoing grants, accepts the trusts under
this Indenture Supplement in accordance with the provisions of this Indenture Supplement, and agrees to perform the duties herein required to the end that the interests of the Noteholders may be adequately protected. 

ARTICLE I 
 CREATION OF
SERIES 2017-1 NOTES 
 SECTION 1.01    Designation. 

(a)    There is hereby created a Series of Notes to be issued by the Issuing Entity on the Closing Date pursuant to the
Indenture and this Indenture Supplement to be known as the “Series 2017-1 Asset Backed Notes” or the “Series 2017-1 Notes.” The Series 2017-1 Notes shall be issued in five Classes, the first shall be known as the “Series 2017-1 Floating Rate Asset Backed Notes, Class A,”
the second shall be known as the “Series 2017-1 Fixed Rate Asset Backed Notes, Class B,” the third shall be known as the “Series
2017-1 Fixed Rate Asset Backed Notes, Class C,” the fourth shall be known as the “Series 2017-1 Fixed Rate Asset Backed Notes,
Class D,” and the fifth shall be known as the “Series 2017-1 Asset Backed Equity Notes, Class E.” The Series
2017-1 Notes shall be due and payable on the Series 2017-1 Legal Maturity Date. 

(b)    Series 2017-1 shall be a Nonoverconcentration Series. Series 2017-1 shall be in Excess Interest Sharing Group One and in Principal Sharing Group One. Series 2017-1 shall not be a Shared Enhancement Series or in an Interest Reallocation
Group. Series 2017-1 shall not be subordinated to any other Series. 

(c)    The Series 2017-1 Notes are “Notes” and this Indenture Supplement
is an “Indenture Supplement” for all purposes under the Indenture. If any provision of the Series 2017-1 Notes or this Indenture Supplement conflicts with or is inconsistent with any provision of the
Indenture, the provisions of the Series 2017-1 Notes or this Indenture Supplement, as the case may be, shall control. 

(d)    Each term defined in Section 2.01 of this Indenture Supplement relates only to Series 2017-1 and this Indenture Supplement and to no other Series or Indenture Supplements. 

(e)    Notwithstanding anything to the contrary in the Indenture, the Series
2017-1 Notes, other than the Class E Note, shall be issued in fully registered form in minimum amounts of $1,000 and in integral multiples of $1,000 in excess thereof (except that one Note from each such
class may be issued in a different amount so long as such amount exceeds $1,000); provided that the minimum amounts of the Series 2017-1 Notes, other than the Class E Note,

  
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shall be subject to the restrictions set forth in Section 4.14. The Class E Note shall be issued in fully registered form in a principal amount equal to the
Class E Note Principal Balance. The Class E Note will be issuable in a minimum denomination of 100% of the Class E Note Principal Balance. 

SECTION 1.02    Reopening of Class or Tranche of Notes. 

The Depositor may from time to time, with notice to the Rating Agencies but without notice to, or the consent of, the holders of a
Class or Tranche of Series 2017-1 Notes, create and issue additional Series 2017-1 Notes equal in rank to any Class or Tranche of Series 2017-1 Notes previously offered in all respects or in all respects except for the payment of interest accruing prior to the Issuance Date of such additional Series 2017-1
Notes in a Class or Tranche of Series 2017-1 Notes or except for the first payment of interest following the Issuance Date of such additional Series 2017-1 Notes in
a Class or Tranche of Series 2017-1 Notes. This is called a “reopening.” When issued, the additional Series 2017-1 Notes of a Class or Tranche
shall be equally and ratably entitled to the benefits of the Indenture and this Indenture Supplement applicable to those Series 2017-1 Notes with the other Outstanding Notes of that Class or Tranche
without preference, priority or distinction. These additional Series 2017-1 Notes may be consolidated and form a single Class or Tranche with the previously issued Series
2017-1 Notes and shall have the same terms as to status, redemption or otherwise as the previously issued Series 2017-1 Notes. 

ARTICLE II 
 DEFINITIONS

 SECTION 2.01    Definitions. 

Whenever used in this Indenture Supplement, the following words and phrases have the following meanings, and the definitions of such terms are
applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. 

AAA: The American Arbitration Association. 

AAA Rules: The AAA’s Commercial Arbitration Rules and Mediation Procedures in effect as of the Closing Date. 

Accumulation Period Factor: With respect to any Collection Period, a fraction: 

(a)    the numerator of which is equal to the sum of the invested amounts of all outstanding Series in
Principal Sharing Group One (including the Invested Amount for Series 2017-1) as of the last day of the Revolving Period; and 

(b)    the denominator of which is equal to the sum of (i) the Invested Amount as of the last day of
the Revolving Period, plus (ii) the invested amounts as of the last day 

  
 3 

 
of the Revolving Period of all outstanding Series in Principal Sharing Group One (other than the Invested Amount for Series 2017-1) that are expected to be
paying or accumulating principal during the period from such Collection Period to the Collection Period immediately preceding the Series 2017-1 Expected Maturity Date; 

provided, however, that this definition may be changed at any time upon receipt by the Indenture Trustee of an Officer’s
Certificate from the Servicer that such change shall not have an Adverse Effect. 
 Accumulation Period Length: Has the meaning
specified in Section 4.04(h). 
 Additional Available Series Principal Collections: With respect to any Distribution Date and
the related Collection Period, an amount equal to any Available Series Interest Collections, Reserve Fund Available Amounts and Excess Interest Collections from other Series in the same Excess Interest Sharing Group as the Series 2017-1 Notes that, as provided in Sections 4.04(a) and (b), are to be treated as Additional Available Series Principal Collections with respect to that Distribution Date. 

ADR Proceeding: Either an Arbitration or a Mediation. 

Annual Fee Cap: $75,000 with respect to the Owner Trustee and $125,000 in the aggregate with respect to all other parties. 

Arbitration: A binding arbitration proceeding with the AAA conducted pursuant to the rules set forth in the AAA Rules. 

Asset Representations Review: A review by the Asset Representations Reviewer as specified in the Asset Representations Review Agreement
of all Accounts classified as “programmed” or “no credit” designated to the Issuing Entity as of the applicable review date and the Receivables in those Accounts to determine whether such Accounts and Receivables satisfy the
representations and warranties set forth in Section 4.01(a) of the Pooling and Servicing Agreement as of the date specified in Section 4.01(a) of the Pooling and Servicing Agreement. 

Asset Representations Review Agreement: The Asset Representations Review Agreement, dated as of the date hereof, between the Issuing
Entity and the Asset Representations Reviewer, as amended, supplemented, restated or otherwise modified from time to time. 
 Asset
Representations Review Notice: Has the meaning specified in Section 4.17(d). 
 Asset Representations Reviewer: Clayton
Fixed Income Services LLC, as asset representations reviewer under the Asset Representations Review Agreement, or any successor asset representations reviewer under the Asset Representations Review Agreement. 

  
 4 

 Available Series Interest Collections: With respect to any Distribution Date, an amount
equal to the sum of (a) the Series Interest Collections with respect to such Distribution Date, plus (b) all interest and Investment Proceeds on Eligible Investments credited to the Reserve Fund and the Note Distribution Account
(net of losses and investment expenses) during the related Collection Period. 
 Available Series Principal Collections: With respect
to any date, an amount equal to the sum of (i) the Series Principal Collections for such date, plus (ii) any Shared Principal Collections with respect to other Series in Principal Sharing Group One (including any amounts on deposit
in the Excess Funding Account that are allocated to Series 2017-1 pursuant to the Indenture for application as Shared Principal Collections) for such date, plus (iii) if such date is also a Distribution
Date, the amount of any Additional Available Series Principal Collections remaining after application thereof pursuant to Section 4.04(f) being treated as Available Series Principal Collections on such date plus (iv) the amounts, if any,
withdrawn from the Excess Funding Account and applied pursuant to Section 4.04(g), minus (v) the amount of any Series Principal Collections being treated as Reallocated Principal Collections pursuant to
Section 4.06. 
 Average Class A Note Principal Balance: For any period, an amount equal
to the result of (a) the aggregate of the Class A Note Principal Balance for each day during that period divided by (b) the number of days in that period. 

Average Class B Note Principal Balance: For any period, an amount equal to the result of (a) the aggregate of
the Class B Note Principal Balance for each day during that period divided by (b) the number of days in that period. 
 Average
Class C Note Principal Balance: For any period, an amount equal to the result of (a) the aggregate of the Class C Note Principal Balance for each day during that period divided by (b) the number of days in that
period. 
 Average Class D Note Principal Balance: For any period, an amount equal to the result of (a) the
aggregate of the Class D Note Principal Balance for each day during that period divided by (b) the number of days in that period. 

Average Net Invested Amount: For any period, an amount equal to the result of (a) Net Invested Amount for each day during that
period divided by (b) the number of days in that period. 
 Back-up Servicing Fee
Rate: 0.0065% per annum or such other percentage (not to exceed 0.0065% without satisfaction of the Series 2017-1 Rating Agency Condition) as may be specified as such in the
Back-up Servicing Agreement. 
 Bloomberg Screen BBAM Page: The display page currently so
designated on the Bloomberg Screen BBAM Page (or such other page as may replace such page in that service for the purpose of displaying comparable rates or prices). 

  
 5 

 Class A Invested Amount: As of any date, an amount equal to
(a) the Class A Note Principal Balance as of such date, minus (b) the excess, if any, of (i) the cumulative amount of Reallocated Principal Collections allocable to the Class A Notes immediately before such date pursuant to
Section 4.06 over (ii) the cumulative amount of reimbursements thereof pursuant to Section 4.09 before that date, but limited to an amount that would reduce the Class A Invested Amount to
zero, minus (c) the excess, if any, of (i) the cumulative amount of Series Charge-Offs allocable to the Class A Notes immediately before such date pursuant to Section 4.05(b) over (ii) the cumulative amounts of
reimbursements thereof pursuant to Section 4.09 before that date, but limited to an amount that would reduce the Class A Invested Amount to zero. 

Class A Monthly Interest: Has the meaning specified in Section 4.02(a). 

Class A Note: Any one of the Series 2017-1 Floating Rate Asset Backed Notes,
Class A executed by the Issuing Entity and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A. 

Class A Note Initial Principal Balance: $650,000,000. 

Class A Note Interest Rate: With respect to any Interest Period, LIBOR for such Interest Period plus 0.40% per
annum. 
 Class A Note Principal Balance: As of any date, the Class A Note Initial Principal Balance, minus
the aggregate amount of any principal payments made to the Class A Noteholders on or prior to such date. 

Class A Noteholder: The Person in whose name a Class A Note is registered in the Note Register. 

Class B Invested Amount: As of any date, an amount equal to (a) the Class B Note Principal Balance as of
such date, minus (b) the excess, if any, of (i) the cumulative amount of Reallocated Principal Collections allocable to the Class B Notes immediately before such date pursuant to Section 4.06 over
(ii) the cumulative amount of reimbursements thereof pursuant to Section 4.09 before that date, but limited to an amount that would reduce the Class B Invested Amount to zero, minus (c) the excess, if
any, of (i) the cumulative amount of Series Charge-Offs allocable to the Class B Notes immediately before such date pursuant to Section 4.05(b) over (ii) the cumulative amounts of
reimbursements thereof pursuant to Section 4.09 before that date, but limited to an amount that would reduce the Class B Invested Amount to zero. 

Class B Monthly Interest: Has the meaning specified in Section 4.02(c). 

Class B Note: Any one of the Series 2017-1 Fixed Rate Asset Backed Notes,
Class B executed by the Issuing Entity and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A. 

Class B Note Initial Principal Balance: $47,508,000. 

  
 6 

 Class B Note Interest Rate: With respect to any Interest Period, 2.33%
per annum. 
 Class B Note Principal Balance: As of any date, the Class B Note Initial Principal Balance,
minus the aggregate amount of any principal payments made to the Class B Noteholders on or prior to such date. 

Class B Noteholder: The Person in whose name a Class B Note is registered in the Note Register. 

Class C Invested Amount: As of any date, an amount equal to (a) the Class C Note Principal Balance as of
such date, minus (b) the excess, if any, of (i) the cumulative amount of Reallocated Principal Collections allocable to the Class C Notes immediately before such date pursuant to Section 4.06 over
(ii) the cumulative amount of reimbursements thereof pursuant to Section 4.09 before that date, but limited to an amount that would reduce the Class C Invested Amount to zero, minus (c) the excess, if
any, of (i) the cumulative amount of Series Charge-Offs allocable to the Class C Notes immediately before such date pursuant to Section 4.05(b) over (ii) the cumulative amounts of
reimbursements thereof pursuant to Section 4.09 before that date, but limited to an amount that would reduce the Class C Invested Amount to zero. 

Class C Monthly Interest: Has the meaning specified in Section 4.02(d). 

Class C Note: Any one of the Series 2017-1 Fixed Rate Asset Backed Notes,
Class C executed by the Issuing Entity and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A. 

Class C Note Initial Principal Balance: $34,551,000. 

Class C Note Interest Rate: With respect to any Interest Period, 2.63% per annum. 

Class C Note Principal Balance: As of any date, the Class C Note Initial Principal Balance, minus the
aggregate amount of any principal payments made to the Class C Noteholders on or prior to such date. 
 Class C
Noteholder: The Person in whose name a Class C Note is registered in the Note Register. 
 Class D Invested
Amount: As of any date, an amount equal to (a) the Class D Note Principal Balance as of such date, minus (b) the excess, if any, of (i) the cumulative amount of Reallocated Principal Collections allocable to the
Class D Notes immediately before such date pursuant to Section 4.06 over (ii) the cumulative amount of reimbursements thereof pursuant to Section 4.09 before that date, but limited to an
amount that would reduce the Class D Invested Amount to zero, minus (c) the excess, if any, of (i) the cumulative amount of Series Charge-Offs allocable to the Class D Notes
immediately before such date pursuant to Section 4.05(b) over (ii) the cumulative amounts of reimbursements thereof pursuant to Section 4.09 before that date, but limited to an amount that would reduce the
Class D Invested Amount to zero. 

  
 7 

 Class D Monthly Interest: Has the meaning specified in Section
4.02(e). 
 Class D Note: Any one of the Series 2017-1 Fixed Rate
Asset Backed Notes, Class D executed by the Issuing Entity and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A. 

Class D Note Initial Principal Balance: $25,914,000. 

Class D Note Interest Rate: With respect to any Interest Period, 3.17% per annum. 

Class D Note Principal Balance: As of any date, the Class D Note Initial Principal Balance, minus the
aggregate amount of any principal payments made to the Class D Noteholders on or prior to such date. 
 Class D
Noteholder: The Person in whose name a Class D Note is registered in the Note Register. 
 Class E Invested
Amount: 
 (a)    With respect to the Closing Date, $105,814,375, and 

(b)    with respect to any subsequent date, an amount equal to 

(i)    the Class E Invested Amount determined as of the immediately preceding Distribution Date (or,
with respect to the initial Distribution Date, the Class E Invested Amount as of the Closing Date); 

(ii)    minus (A) the amount of Reallocated Principal Collections allocable to the Class E
Notes pursuant to Section 4.06, if any, since the Distribution Date immediately preceding such date, but limited to an amount that would reduce the Class E Invested Amount to zero, plus (B) the amount of
reimbursements of Reallocated Principal Collections allocable to the Class E Notes pursuant to Section 4.09, if any, since the Distribution Date immediately preceding such date; 

(iii)    minus (A) the amount of Series Charge-Offs
allocable to the Class E Notes pursuant to Section 4.05(b), if any, since the Distribution Date immediately preceding such date, but limited to an amount that would reduce the Class E Invested Amount to zero, plus
(B) the amount of reimbursements of Series Charge-Offs allocable to the Class E Notes pursuant to Section 4.09, if any, since the Distribution Date immediately preceding
such date; 
 (iv)    minus an amount equal to the product of (A) the Subordination
Percentage and (B) the increase, if any, in the Series 2017-1 Excess Funding Amount since the Distribution Date immediately preceding such date; 

  
 8 

 (v)    plus an amount equal to the product of
(A) the Subordination Percentage and (B) the decrease, if any, in the Series 2017-1 Excess Funding Amount since the Distribution Date immediately preceding such date (to the extent that the Required
Nonoverconcentration Pool Balance would not exceed the Nonoverconcentration Pool Balance, any such excess to become Class E Invested Amount on the date and to the extent that such additions would not result in the Required Nonoverconcentration
Pool Balance exceeding the Nonoverconcentration Pool Balance); 
 (vi)    plus an amount equal to
the increase, if any, in the Required Class E Invested Amount as a result of a change in the Subordination Factor since the Distribution Date immediately preceding such date (to the extent that the Required Nonoverconcentration Pool Balance
would not exceed the Nonoverconcentration Pool Balance, any such excess to become Class E Invested Amount on the date and to the extent that such additions would not result in the Required Nonoverconcentration Pool Balance exceeding the
Nonoverconcentration Pool Balance); 
 (vii)    minus an amount equal to the decrease, if any, in
the Required Class E Invested Amount as a result of a change in the Subordination Factor since the Distribution Date immediately preceding such date; 

(viii)    plus the amount of any Available Series Interest Collections treated as Additional
Available Series Principal Collections on such date to ensure that the Class E Invested Amount as of such date is not less than the Required Class E Invested Amount pursuant to Section 4.04(a)(ix); 

(ix)    minus the aggregate amount of any principal payments made to the Class E Noteholders
since the Distribution Date immediately preceding such date; 
 provided, however, that in no event shall the Class E Invested Amount as
of any date be more than the Required Class E Invested Amount as of such date; provided that the Depositor may at any time and from time to time increase the Class E Invested Amount by allocating a portion of the Nonoverconcentration
Certificate Interest thereto; provided such increase shall not cause the Required Nonoverconcentration Pool Balance to exceed the Nonoverconcentration Pool Balance or cause the Nonoverconcentration Certificate Amount to be less than the Required
Nonoverconcentration Certificate Amount. Notwithstanding the foregoing, the Depositor shall not be permitted to increase the Class E Invested Amount without satisfaction of the Series 2017-1 Rating Agency
Condition with respect to each Class of Series 2017-1 Notes in connection therewith if such increase would result in the aggregate amount of all such increases, together with all amounts resulting from a
discretionary increase in the Series 2017-1 Subordination Factor and the Reserve Fund, exceeding 5.0% of the Note Principal Balance as of the date of such increase. 

  
 9 

 Class E Note: Any one of the Series
2017-1 Asset Backed Equity Notes, Class E executed by the Issuing Entity and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A. 

Class E Note Initial Principal Balance: $105,814,375. 

Class E Note Principal Balance: As of any date, the Class E Note Initial Principal Balance, minus the
aggregate amount of any principal payments made to the Class E Noteholders before such date; provided, however, that the Depositor, at any time and from time to time, may (A) in connection with an increase in the Class E
Invested Amount increase the Class E Note Principal Balance, but not in excess of the increase in the Class E Invested Amount or (B) decrease the Class E Note Principal Balance upon satisfaction of the Series 2017-1 Rating Agency Condition and obtaining written consent of all of the Class E Noteholders. 

Class E Noteholder: The Person in whose name a Class E Note is registered in the Note Register. 

Closing Date: February 22, 2017. 

Consent Rating Agency: Has the meaning set forth in the Ratings Free Writing Prospectus. 

Controlled Accumulation Amount: The result of (a) the Note Principal Balance as of the last day of the Revolving Period (less the
aggregate amount, if any, already on deposit in the Note Distribution Account and the Note Defeasance Account to pay principal of the Series 2017-1 Notes as of the close of business on the last day of the
Revolving Period) divided by (b) the number of months in the Controlled Accumulation Period. 
 Controlled Accumulation Period:
Unless an Early Amortization Event has occurred prior thereto, the period beginning on the first day of the August 2018 Collection Period or such later date as is determined in accordance with Section 4.04(h) and ending on the earlier to
occur of (a) the close of business on the day immediately preceding the commencement of the Early Amortization Period and (b) the end of the Collection Period immediately preceding the Distribution Date on which the Note Principal Balance
shall be paid in full. 
 Controlled Deposit Amount: For any Collection Period with respect to the Controlled Accumulation Period, an
amount equal to the sum of (a) the Controlled Accumulation Amount for such Collection Period and (b) any Deficit Controlled Accumulation Amount for the immediately preceding Collection Period. 

Deficit Controlled Accumulation Amount: (a) for the Collection Period immediately preceding the Controlled Accumulation Period,
zero, and (b) for any Collection Period in the Controlled Accumulation Period, the excess, if any, of the Controlled Deposit Amount for such Collection Period over the aggregate amount deposited into the Note Distribution Account or the
Note Defeasance Account with respect to such Collection Period. 

  
 10 

 Determination Date: The tenth day of each calendar month, or if such tenth day is not a
Business Day, the next succeeding Business Day. 
 Distribution Date: March 15, 2017, and the 15th day of each calendar month
thereafter, or if such 15th day is not a Business Day, the next succeeding Business Day. 
 Downgrade Trigger: As of the last day of
any monthly period, the percentage of Accounts of Dealers located in the United States rated “programmed” or “no credit” as of the end of the most recent monthly period exceeds 13.85%. For purposes of this definition, the
percentage of Accounts of Dealers located in the United States rated “programmed” or “no credit” as of the end of any monthly period shall be equal to (a) the aggregate outstanding principal balance of receivables in such
Accounts that were rated “programmed” or “no credit” as of the last day of that monthly period, including any defaulted or charged-off Accounts that are then rated “programmed” or
“no credit,” divided by (b) the aggregate outstanding principal balance of all receivables in such Accounts as of the last day of that monthly period. 

Early Amortization Period: The period beginning on the first day on which an Early Amortization Event with respect to Series 2017-1 occurs and ending on the earlier to occur of (a) the end of the Collection Period immediately preceding the Distribution Date on which the Note Principal Balance shall be paid in full and (b) the
Series 2017-1 Legal Maturity Date. 
 Excess Interest Collections: With respect to Series 2017-1, the meaning specified in Section 4.07. 
 FATCA: Sections 1471
through 1474 of the Code (or any amended or successor version) and any current or future regulations or official interpretations thereof. 

FATCA Withholding Tax: Any withholding or deduction pursuant to an agreement described in Section 1471(b) of the Code or otherwise
imposed pursuant to FATCA. 
 Fixed Series Percentage: With respect to any date, the percentage equivalent (not to exceed 100%) of a
fraction (a) the numerator of which is the Net Invested Amount as of such date or, if the Revolving Period is no longer in effect, as of the close of business on the last day of the Revolving Period and (b) the denominator of which is the
greater of (i) the Adjusted Nonoverconcentration Pool Balance as of the close of business on the last day of the immediately preceding Collection Period (or, in the case of the first Collection Period, the Closing Date) and (ii) the sum of
the numerators used to calculate the applicable fixed series percentages for allocating Nonoverconcentration Principal Collections to all outstanding Series (including Series 2017-1) with respect to such date.

 Floating Series Percentage: With respect to any Collection Period, the percentage equivalent (not to exceed 100%) of a fraction
(a) the numerator of which is the Average Net Invested Amount for that Collection Period and (b) the denominator of which is the greater of (i) the average of the Adjusted Nonoverconcentration Pool Balance for each day during such

  
 11 

 
Collection Period and (ii) the sum of the numerators used to calculate the applicable floating series percentages for allocating Nonoverconcentration Interest Collections to all outstanding
Series (including Series 2017-1) with respect to such Collection Period. 
 Indenture: The
Indenture, dated as of February 12, 2010, between the Issuing Entity and the Indenture Trustee, as the same may be amended, supplemented or otherwise modified from time to time. 

Indenture Supplement: This Series 2017-1 Indenture Supplement, as the same may be amended,
supplemented or otherwise modified from time to time. 
 Initial Invested Amount: With respect to the Series 2017-1 Notes, the Initial Note Principal Balance. 
 Initial Note Principal Balance: The sum of
(a) the Class A Note Initial Principal Balance, plus (b) the Class B Note Initial Principal Balance, plus (c) the Class C Note Initial Principal Balance, plus (d) the Class D Note Initial
Principal Balance, plus (e) the Class E Note Initial Principal Balance. 
 Insolvency Event of Default: With respect
to the Series 2017-1, any Event of Default specified in Sections 6.02(e) or (f). 

Interest Collections Shortfall: Has, with respect to Series 2017-1, the meaning specified in
Section 4.07. 
 Interest Period: With respect to any Distribution Date, the period from and including the
Distribution Date immediately preceding such Distribution Date (or, in the case of the first Distribution Date, from and including the Closing Date) to but excluding such Distribution Date. 

Invested Amount: The sum of the Investor Invested Amount and the Class E Invested Amount. 

Investor Invested Amount: As of any date, the sum of the Class A Invested Amount, the Class B Invested Amount, the
Class C Invested Amount and the Class D Invested Amount, in each case, as of such date. 
 Investor Note Principal Balance:
As of any date of determination, the sum of the Class A Note Principal Balance, the Class B Note Principal Balance, the Class C Note Principal Balance and the Class D Note Principal Balance, in each case, as of such date. 

Investor Notes: The Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes. 

  
 12 

 LIBOR: With respect to any Interest Period, the London interbank offered rate for one-month United States dollar deposits determined by the Indenture Trustee for such Interest Period pursuant to Section 4.12. 

LIBOR Determination Date: With respect to any Interest Period, the second London Business Day before the commencement of such Interest
Period. 
 London Business Day: Any day other than a Saturday, Sunday or any other day on which banks in London are required or
authorized to be closed for business. 
 Majority of Manufacturers: Two or more Manufacturers that the aggregate amount of all
Eligible Principal Receivables held by the Issuing Entity as of that date for which the related Vehicle Collateral Security is a Vehicle manufactured by one of those Manufacturers is 50.0% or more of the Pool Balance. 

Mediation: A non-binding mediation or arbitration proceeding with the AAA conducted pursuant to
the rules set forth in the AAA Rules. 
 Monthly Back-up Servicing Fee: With respect
to any Distribution Date on which the Back-up Servicing Agreement is in effect, an amount equal to one-twelfth (or, with respect to the first Distribution Date, the
number of days from the Series Cut-Off Date until the last day of the preceding Collection Period, calculated on the basis of a 360 day year of twelve 30-day months/360)
of the product of (i) the Back-up Servicing Fee Rate, (ii) the Floating Series Percentage for the related Collection Period and (iii) the Nonoverconcentration Pool Balance as of the close of
business on the last day of the immediately preceding Collection Period. 
 Monthly Interest: With respect to any Distribution Date,
the sum of (a) the Class A Monthly Interest for such Distribution Date, plus (b) the Class B Monthly Interest for such Distribution Date, plus (c) the Class C Monthly Interest for such Distribution Date,
plus (d) the Class D Monthly Interest for such Distribution Date. 
 Monthly Nonoverconcentration Defaulted Amount:
With respect to any Collection Period, the aggregate of Nonoverconcentration Defaulted Amounts for each day in that Collection Period. 

Monthly Payment Rate: For any Collection Period, the percentage equivalent of a fraction (a) the numerator of which is the
Principal Collections for such Collection Period with respect to Principal Receivables arising under the Scheduled Accounts and (b) the denominator of which is the average daily aggregate principal balance of all Principal Receivables arising
under the Scheduled Accounts during such Collection Period. 
 Monthly Principal Amount: With respect to any Collection Period, the
aggregate amount required to be deposited into the Note Distribution Account or the Note Defeasance Account with respect to that Collection Period in respect of the Series 2017-1 Notes as determined pursuant
to Section 4.03. 

  
 13 

 Monthly Servicing Fee: With respect to any Distribution Date, an amount equal to one-twelfth (or, with respect to the first Distribution Date, the number of days from the Series Cut-Off Date until the last day of the preceding Collection Period, calculated
on the basis of a 360 day year of twelve 30-day months/360) of the product of (a) the Servicing Fee Rate, (b) the Floating Series Percentage for the related Collection Period and (c) the
Nonoverconcentration Pool Balance as of the close of business on the last day of the immediately preceding Collection Period. 
 Monthly
Statement: Has the meaning specified in Section 5.03(b). 
 Net Invested Amount: With respect to the Series 2017-1 Notes as of any date of determination, the sum of (a) the Net Investor Invested Amount as of such date and (b) the excess, if any, of (i) the Class E Invested Amount as of such date over
(ii) the sum of (1) the Note Distribution Account Amount allocated to pay principal of the Class E Notes, if any, on such date and (2) the amount on deposit in the Note Defeasance Account (excluding amounts representing
Investment Proceeds) on that date allocated to pay principal of the Class E Notes, if any, on such date. 
 Net Investor Invested
Amount: With respect to the Investor Notes as of any date of determination, the excess, if any, of (i) the Investor Invested Amount as of such date over (ii) the sum of (1) Note Distribution Account Amount allocated to pay
principal of the Investor Notes, if any, on such date and (2) the amount on deposit in the Note Defeasance Account (excluding amounts representing Investment Proceeds) on that date allocated to pay principal of the Investor Notes, if any, on
such date. 
 Note Defeasance Account: Has the meaning specified in Section 4.15(a). 

Note Distribution Account: Has the meaning specified in Section 4.10(a). 

Note Distribution Account Amount: On any date, an amount equal to the sum of (a) the amount on deposit in the Note Distribution
Account (excluding amounts representing Investment Proceeds) on that date and (b) the aggregate amount of outstanding Permitted Delayed Remittances with respect to the Note Distribution Account. 

Note Principal Balance: As of any date of determination, the sum of the Investor Note Principal Balance on such date and the
Class E Note Principal Balance on such date. 
 Noteholder FATCA Information: With respect to any Noteholder or holder of an
interest in a Note, information sufficient to eliminate the imposition of, or determine the amount of, U.S. withholding tax under FATCA. 

Noteholder Tax Identification Information: With respect to any Noteholder or holder of an interest in a Note, properly completed and
signed tax certifications (generally, in the case of U.S. Federal Income Tax, IRS Form W-9 (or applicable successor form) in the case of a person that is a “United States Person” within the meaning
of Section 7701(a)(30) of the Code or the appropriate IRS Form W-8 (or applicable successor form) in the case of a person that is not a “United States Person” within the meaning of Section
7701(a)(30) of the Code). 

  
 14 

 Notice Rating Agency: Has the meaning set forth in the Ratings Free Writing Prospectus.

 Panel: As defined in Section 4.18(c)(iv)(2). 

Principal Sharing Group One: Series 2017-1 and each other Series specified in the related
Indenture Supplements to be included in Principal Sharing Group One. 
 Principal Shortfall: With respect to Series 2017-1, the meaning specified in Section 4.08. 
 Rating Agency: Has the
meaning set forth in the Ratings Free Writing Prospectus. 
 Ratings Free Writing Prospectus: The issuer free writing prospectus, as
defined in Rule 433 of the Securities Act, filed by the Depositor on February 10, 2017, relating to the Series 2017-1 Notes. 

Reallocated Principal Collections: With respect to any Distribution Date, the amounts applied in accordance with
Section 4.06 in an amount not to exceed: 
 (a)    with respect to amounts to
be applied to pay Monthly Servicing Fees, Monthly Back-up Servicing Fees and Class A Monthly Interest, the sum of the Class A Invested Amount, the Class B Invested Amount, Class C Invested
Amount, Class D Invested Amount and Class E Invested Amount for that Distribution Date (in each case, after giving effect to any change in that amount on that date); 

(b)    with respect to amounts to be applied to pay Class B Monthly Interest, the sum of the
Class B Invested Amount, the Class C Invested Amount, the Class D Invested Amount and the Class E Invested Amount (in each case, after giving effect to any change in that amount on that date, including clause (a) above);

 (c)    with respect to amounts to be applied to pay Class C Monthly Interest, the sum of the
Class C Invested Amount, the Class D Invested Amount and the Class E Invested Amount (in each case, after giving effect to any change in that amount on that date, including clauses (a) and (b) above); and 

(d)    with respect to amounts to be applied to pay Class D Monthly Interest, the sum of the
Class D Invested Amount and the Class E Invested Amount (in each case, after giving effect to any change in that amount on that date, including clauses (a), (b) and (c) above). 

Reassignment Amount: With respect to any Distribution Date, after giving effect to any deposits and distributions otherwise to be made
on such Distribution Date, the sum of (a) the Note Principal Balance on such Distribution Date, plus (b) the Monthly Interest for such Distribution Date, together with any Monthly Interest previously due but not paid to the Series 2017-1 Noteholders on prior Distribution Dates. 

  
 15 

 Regulation RR: The regulations contained in 17 C.F.R. Part 246. 

Repurchase Response Notice: A notice delivered by the Indenture Trustee to a Noteholder or Note Owner indicating that a Repurchase
Request is unresolved. 
 Repurchase Request: Has the meaning specified in Section 4.18(a). 

Requesting Party: Has the meaning specified in Section 4.18(b). 

Required Accumulation Factor Number: A fraction, rounded upwards to the nearest whole number, the numerator of which is one and the
denominator of which is equal to the lowest Monthly Payment Rate on the Accounts, expressed as a decimal, for the 12 months preceding the date of such calculation; provided, however, that this definition may be changed at any time
upon receipt by the Indenture Trustee of an Officer’s Certificate from the Servicer that such change shall not have an Adverse Effect. 

Required Class E Invested Amount: As of any Distribution Date, the product of (i) the Subordination Percentage
and (ii) the excess, if any, of (A) (1) with respect to any Distribution Date occurring during the Controlled Accumulation Period or the Early Amortization Period, the Net Investor Invested Amount as of the last day of the Revolving
Period, and (2) with respect to any Distribution Date occurring during the Revolving Period, the Net Investor Invested Amount as of such Distribution Date, over (B) the Series 2017-1 Excess Funding
Amount on such date (after giving effect to any changes in such amount on such date). 
 Required Pool Percentage: 100%, except that
the Depositor may reduce this percentage so long as the Series 2017-1 Rating Agency Condition is satisfied with respect to the Series 2017-1 Notes, but without the
consent of any Noteholder or any other Person. 
 Reserve Fund: Has the meaning specified in Section 4.11(a). 

Reserve Fund Available Amount: With respect to any Distribution Date, the lesser of (a) the amount on deposit in the Reserve Fund
on such date (excluding any Investment Proceeds on amounts on deposit therein and before giving effect to any (i) deposit made or to be made therein pursuant to Section 4.04(a) on such date or (ii) any withdrawal made or to be made
therefrom pursuant to Section 4.04(b)(ii) on such date) and (b) the Reserve Fund Required Amount for such Distribution Date. 

Reserve Fund Deposit Amount: With respect to any Distribution Date, the excess, if any, of (a) the Reserve Fund Required Amount
for such Distribution Date, over (b) the Reserve Fund Available Amount for such Distribution Date. 
 Reserve Fund Initial
Amount: $4,318,937. 

  
 16 

 Reserve Fund Required Amount: With respect to any Distribution Date, an amount equal to
the product of Reserve Fund Required Percentage and the Invested Amount as of such Distribution Date (after giving effect to any changes therein on such Distribution Date); provided, however, that the Depositor may, in its discretion,
increase or, upon satisfaction of the Series 2017-1 Rating Agency Condition, decrease the Reserve Fund Required Amount. Notwithstanding the foregoing, the Depositor shall not be permitted to increase the
Reserve Fund Required Amount in its discretion without satisfaction of the Series 2017-1 Rating Agency Condition if such increase would result in the aggregate amount of all such increases, together with all
amounts added to the Class E Invested Amount and all amount resulting from a discretionary increase in the Class E Invested Amount or in the Subordination Factor, exceeding 5.0% of the Note Principal Balance as of the date of such
increase. 
 Reserve Fund Required Percentage: As of any date, 0.50%; provided, however, that in the event the Subordination Factor
would otherwise be required to increase as a result of a decrease in the Monthly Payment Rate in accordance with the definition of Subordination Factor, the Depositor may by delivering an Officer’s Certificate to the Indenture Trustee and the
Rating Agencies prior to the date such increase was to become effective, elect to increase the Reserve Fund Required Percentage in an amount in percentage points equal to (i) an additional 2.20% rather than increasing the Subordination Factor
by 2.56% pursuant to clause (i) of the first proviso of the definition of Subordination Factor, (ii) an additional 2.40% rather than increasing the Subordination Factor by 2.80% pursuant to clause (ii) of the first proviso of the
definition of Subordination Factor or (iii) an additional 2.65% rather than increasing the Subordination Factor by 3.09% pursuant to clause (iii) of the first proviso of the definition of Subordination Factor. In the event that the
Depositor shall elect to so increase the Reserve Fund Required Percentage rather than the Subordination Factor, any increase in the Monthly Payment Rate that otherwise would have resulted in a decrease in the Subordination Factor will alternatively
result in a corresponding decrease in the Reserve Fund Required Percentage to the extent that the Reserve Fund Required Percentage had been increased rather than making the corresponding increase in the Subordination Factor. The election of the
Depositor to increase the Reserve Fund Required Percentage rather than increasing the Subordination Factor shall be deemed not to be a discretionary increase. 

Reserve Fund Trigger Amount: As of any date, an amount equal to the product of 0.50% and the Invested Amount on such date (after giving
effect to any changes therein on such date); provided, however, that, if the Reserve Fund Required Amount has been increased solely as a result of a decrease in the Three Month Average Payment Rate, then with respect to that Distribution Date and
each Distribution Date thereafter until the amount on deposit in the Reserve Fund equals the Reserve Fund Required Amount, the Reserve Fund Trigger Amount will equal $0. 

Revolving Period: The period beginning on the Closing Date and ending on the earlier of the close of business on the day immediately
preceding the date on which the Controlled Accumulation Period or the Early Amortization Period commences. 

  
 17 

 Series 2017-1: The Series of Notes, the Principal
Terms of which are specified in this Indenture Supplement. 
 Series 2017-1 Certificate
Interest: The portion of the Certificate Interest representing the right to receive the distributions allocated to the holders of the Certificate Interest pursuant to Section 4.04(a)(xiv), Section 4.11(d) and Section
4.11(e). 
 Series 2017-1 Event of Default: Has the meaning specified in
Section 6.02. 
 Series 2017-1 Early Amortization Event: Has the
meaning specified in Section 6.01. 
 Series 2017-1 Excess Funding
Amount: As of any date of determination, the product of (a) the amount on deposit in the Excess Funding Account (excluding amounts representing Investment Proceeds) on such date, times (b) a fraction (i) the numerator of
which is the Net Invested Amount as of such date and (ii) the denominator of which is the sum of the net invested amounts of each outstanding Nonoverconcentration Series (including Series 2017-1) being
allocated a portion of the funds on deposit in the Excess Funding Account. 
 Series 2017-1
Expected Maturity Date: The February 2019 Distribution Date. 
 Series 2017-1 Insolvency
Event of Default: The Series 2017-1 Events of Default set forth in clauses (e) or (f) of Section 6.02. 

Series 2017-1 Issuing Entity Insolvency Event of Default: The Series 2017-1 Event of Default set forth in clause (f) of Section 6.02. 

Series 2017-1 Legal Maturity Date: The February 2021 Distribution Date. 

Series 2017-1 Note: A Class A Note, a Class B Note, a Class C Note, a
Class D Note or a Class E Note. 
 Series 2017-1 Noteholder: A Class A
Noteholder, a Class B Noteholder, a Class C Noteholder, a Class D Noteholder or a Class E Noteholder. 
 Series 2017-1 Noteholders’ Collateral: The Noteholders’ Collateral for the Series 2017-1. 

Series 2017-1 Note Owner: With respect to any Series
2017-1 Note issued as a Book Entry Note, the Person who is the beneficial owner of such Book Entry Note, as reflected on the books of the related Clearing Agency, or on the books of a Person maintaining an
account with such Clearing Agency (directly as a Clearing Agency Participant or as an Indirect Participant, in each case in accordance with the rules of such Clearing Agency). 

Series 2017-1 Private Notes: The Series 2017-1
Class B Notes, the Series 2017-1 Class C Notes, the Series 2017-1 Class D Notes and the Series 2017-1 Class E
Notes. 

  
 18 

 Series 2017-1 Rating Agency Condition: The
condition that each of the Consent Rating Agencies with respect to the Series 2017-1 Notes shall have notified the Depositor, the Servicer and the Issuing Entity in writing that such action shall not result in
a downgrade, suspension or withdrawal of the then current rating of the Series 2017-1 Notes then rated by such Rating Agency; provided, however, that with respect to each Notice Rating Agency, it shall be
sufficient that such Notice Rating Agency shall be given prior written notice thereof. 
 Series Accounts: With respect to Series 2017-1, the Note Distribution Account, the Note Defeasance Account, and the Reserve Fund. 
 Series
Charge-Offs: Has the meaning specified in Section 4.05. 

Series Collateral: Has the meaning specified in the granting clauses of this Indenture Supplement. 

Series Cut-Off Date: The close of business on January 31, 2017. 

Series Defaulted Amount: With respect to any Distribution Date, the amount of the Nonoverconcentration Defaulted Amount for the related
Collection Period allocated to the Series 2017-1 pursuant to Section 4.01(d). 
 Series
Defaulted Percentage: With respect to any Collection Period, the Floating Series Percentage. 
 Series Interest Collections: With
respect to any Distribution Date, the amount of Nonoverconcentration Interest Collections for the related Collection Period (or, in the case of the initial Distribution Date, the period from the Series Cut-Off
Date until the last day of the Collection Period preceding such Distribution Date) allocated to the Series 2017-1 pursuant to Section 4.01(b). 

Series Interest Percentage: With respect to any Collection Period, the Floating Series Percentage. 

Series Principal Collections: With respect to any date, the amount of the Nonoverconcentration Principal Collections for that date
allocated to the Series 2017-1 pursuant to Section 4.01(c). 
 Series Principal
Percentage: For any date, the Fixed Series Percentage. 
 Series Required Certificate Amount: On any date, the product of
(a) the excess, if any, of (i) the Required Pool Percentage over (ii) 100% and (b) the Net Invested Amount on that date. 

Shared Principal Collections: With respect to Series 2017-1, has the meaning specified in
Section 4.08. 

  
 19 

 Significant Manufacturer: As of any date, a Manufacturer that the aggregate amount of all
Eligible Principal Receivables held by the Issuing Entity as of that date for which the related Vehicle Collateral Security is a Vehicle manufactured by such Manufacturer is 35.0% (or, in the case of Chrysler, 25.0%) or more of the Pool Balance.

 Special Pass-Through Entity: A grantor trust, S corporation or partnership where more than
50% of the value of a beneficial owner’s interest in such pass-through entity is attributable to the pass-through entity’s interest in the Class B Note, Class C Note, and/or Class D
Note, as applicable. 
 Subordination Factor: As of any date, 12.25%; provided, however, that if on any Distribution
Date, the Three Month Average Payment Rate is (i) less than 25.00% but greater than or equal to 22.50%, (ii) less than 22.50% but greater than or equal to 20.00%, or (iii) less than 20.00%, then on such Distribution Date, the Subordination
Factor shall be increased by (i) 2.56% over what it would have been had the Three Month Average Payment Rate been greater than or equal to 25.00%, (ii) 2.80% over what it would have been had the Three Month Average Payment Rate been less than 25.00%
but greater than or equal to 22.50%, or (iii) 3.09% over what it would have been had the Three Month Average Payment Rate been less than 22.50% but greater than or equal 20.00%, respectively; provided, however, that if after any such
increase in the Subordination Factor, on any Distribution Date the Three Month Average Payment Rate as of such Distribution Date is, and the Three Month Average Payment Date with respect to each of the two prior Distribution Dates was,
(i) greater than or equal to 20.00% but less than 22.50%, (ii) greater than or equal to 22.50% but less than 25.00% or (iii) greater than or equal to 25.00%, then on such Distribution Date, the Subordination Factor shall be decreased by
(i) 3.09% over what it would have been had the Three Month Average Payment Rate been less than 20.00%, (ii) 2.80% over what it would have been had the Three Month Average Payment Rate been less than 22.50% but greater than or equal to 20.00% or
(iii) 2.56% over what it would have been had the Three Month Average Payment Rate been less than 25.00% but greater than or equal to 22.50%, respectively; provided, further, that the Depositor may, by delivering an Officer’s
Certificate to the Indenture Trustee and the Rating Agencies prior to the date such increase was to become effective, elect to increase the Reserve Fund Required Percentage by an additional amount in percentage points equal to 2.20%, 2.40%, or
2.65%, as applicable, pursuant to the proviso in the definition of “Reserve Fund Required Percentage” rather than increasing the Subordination Factor by an additional 2.56%, 2.80%, or 3.09%, respectively. In addition, the Depositor may
(a) in its discretion increase the Subordination Factor, increasing the Subordination Percentage and thereby increasing the Class E Invested Amount and the Class E Principal Amount by an amount equal to the product of (i) the
increase in the Subordination Percentage and (ii) the excess, if any, of (A) the Net Invested Amount over (B) the Series 2017-1 Excess Funding Amount on such date (after giving effect to any
changes in such amount on such date); provided such increase shall not cause the Required Nonoverconcentration Pool Balance to exceed the Nonoverconcentration Pool Balance or cause the Nonoverconcentration Certificate Amount to be less than the
Required Nonoverconcentration Certificate Amount or (b) upon satisfaction of the Series 2017-1 Rating Agency Condition with respect to each Class of Series
2017-1 Notes in 

  
 20 

 
connection therewith, decrease the Subordination Factor, with corresponding decreases in the Subordination Percentage, the Class E Invested Amount and the Class E Principal Amount.
Notwithstanding the foregoing, the Depositor shall not be permitted to increase the Subordination Factor in its discretion without satisfaction of the Series 2017-1 Rating Agency Condition with respect to each
Class of Series 2017-1 Notes in connection therewith if such increase would result in the aggregate amount of all such increases, together with discretionary increases in the Class E Invested Amount
and the Reserve Fund, exceeding 5.0% of the Note Principal Balance as of the date of such increase. 
 Subordination Percentage: As
of any date, an amount (expressed as a percentage) equal to (a) the Subordination Factor divided by (b) the result of 100% minus the Subordination Factor. 

Third Party Due Diligence Provider: Any Person hired by an underwriter or the Seller to perform due diligence on the Accounts or the
Receivables in connection with the offer and sale of the Class A Notes. 
 Three Month Average Payment Rate: As of any
Distribution Date, the arithmetic average of the Monthly Payment Rate determined with respect to each of the three Collection Periods immediately preceding such Distribution Date. 

Verified Note Owner: A Series 2017-1 Note Owner that has provided the Indenture Trustee or the
Servicer, as applicable, with each of (i) a written certification that it is a beneficial owner of a specified Outstanding Amount of the Series 2017-1 Notes and (ii) a trade confirmation, an account
statement, a letter from a broker or dealer or other similar document showing that such Series 2017-1 Note Owner is a beneficial owner of such Outstanding Amount of the Series
2017-1 Notes. 
 Wholly-Owned Affiliate: Has the meaning specified in Regulation RR. 

SECTION 2.02    Other Definitional Provisions. 

(a)    Certain capitalized terms used but not otherwise defined in this Indenture Supplement shall have the respective
meanings assigned to them in Part I of Appendix A to the Trust Sale and Servicing Agreement, dated as of February 12, 2010 (the “Trust Sale and Servicing Agreement”), among Ally Master Owner Trust, Ally Wholesale
Enterprises LLC, Ally Bank, and Ally Financial Inc. (formerly GMAC Inc.) (including any successors or assigns thereto, “Ally Financial”), as amended, supplemented, restated or otherwise modified from time to time. 

(b)    All references herein to “this Indenture Supplement” are to this Indenture Supplement as it may be
amended, supplemented or modified from time to time, and all references herein to Articles, Sections, subsections and exhibits are to Articles, Sections, subsections and exhibits of this Indenture Supplement unless otherwise specified. 

  
 21 

 (c)    All terms defined in this Indenture Supplement shall have the defined
meanings when used in any certificate, notice, Note or other document made or delivered pursuant hereto unless otherwise defined therein. 

(d)    The rules of construction set forth in Part II of Appendix A to the Trust Sale and Servicing
Agreement shall be applicable to this Indenture Supplement. 
 ARTICLE III 

SERVICING FEE 

SECTION 3.01    Servicing Compensation. 

The share of the Servicing Fee and the Back-up Servicing Fee, respectively, allocable to the Series 2017-1 Noteholders with respect to any Distribution Date is equal to the Monthly Servicing Fee and the Monthly Back-up Servicing Fee, respectively. The portion of the
Servicing Fee and Back-up Servicing Fee that is not allocable to the Series 2017-1 Noteholders shall be paid by the holders of the Certificate Interest or the
Noteholders of other Series (as provided in the related Indenture Supplements) and in no event shall the Issuing Entity, the Indenture Trustee or the Series 2017-1 Noteholders be liable for the share of the
Servicing Fee or the Back-up Servicing Fee to be paid by the holders of the Certificate Interest or the Noteholders of any other Series. 

ARTICLE IV 
 RIGHTS AND
OBLIGATIONS OF SERIES 2017-1 NOTEHOLDERS 
 AND ALLOCATION AND APPLICATION OF COLLECTIONS

 SECTION 4.01    Collections and Allocations. 

(a)    Allocations to Series 2017-1. As provided in Section
8.4(a) of the Indenture, Nonoverconcentration Interest Collections, Nonoverconcentration Principal Collections and Nonoverconcentration Defaulted Amounts shall be allocated to Series 2017-1 and then
applied in accordance with this Article IV. No Overconcentration Interest Collections, Overconcentration Principal Collections or Overconcentration Defaulted Amounts shall be allocated to the Series
2017-1. 
 (b)    On each Determination Date beginning on the Determination Date
in March 2017, the Servicer shall allocate to the Series 2017-1 an amount of Nonoverconcentration Interest Collections for the related Collection Period (or, in the case of the initial Distribution Date, the
prior Collection Period) equal to the product of (i) the Series Interest Percentage for the related Collection Period, and (ii) the Nonoverconcentration Interest Collections for such Collection Period; provided, however, that
for purposes of calculating the Series Interest Percentage for this Section 4.01(b), the Series 2017-1 Notes shall be deemed to have been outstanding since the Series
Cut-Off Date. 
 (c)    On each Business Day beginning on the Closing Date, the
Servicer shall allocate to the Series 2017-1 an amount of Nonoverconcentration Principal Collections for that date equal to the product of (i) the Series Principal Percentage for that date and
(ii) the Nonoverconcentration Principal Collections for that date. 

  
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 (d)    On each Determination Date beginning on the Determination Date in
March 2017, the Servicer shall allocate to the Series 2017-1 an amount of the Nonoverconcentration Defaulted Amount for the related Collection Period equal to the product of (i) the Series Defaulted
Percentage for the related Collection Period and (ii) the Monthly Nonoverconcentration Defaulted Amount for the related Collection Period. 

SECTION 4.02    Determination of Monthly Interest. 

(a)    The amount of monthly interest due with respect to the Class A Notes for any Distribution Date and the related
Interest Period (the “Class A Monthly Interest”) shall be calculated by the Servicer and shall be an amount equal to the product of (i) a fraction, the numerator of which is the actual number of days in the related Interest
Period and the denominator of which is 360, times (ii) the Class A Note Interest Rate, times (iii) the Average Class A Note Principal Balance for the related Interest Period. 

(b)    [Reserved]. 

(c)    The amount of monthly interest due with respect to the Class B Notes for any Distribution Date and the related
Interest Period (the “Class B Monthly Interest”) shall be calculated by the Servicer and shall be an amount equal to the product of (i) one-twelfth (or, in the case of the March 2017
Distribution Date, a fraction, the numerator of which is 23 and the denominator of which is 360), times (ii) the Class B Note Interest Rate, times (iii) the Average Class B Note Principal Balance for the related Interest
Period. 
 (d)    The amount of monthly interest due with respect to the Class C Notes for any Distribution Date
and the related Interest Period (the “Class C Monthly Interest”) shall be calculated by the Servicer and shall be an amount equal to the product of (i) one-twelfth (or, in the case of the
March 2017 Distribution Date, a fraction, the numerator of which is 23 and the denominator of which is 360), times (ii) the Class C Note Interest Rate, times (iii) the Average Class C Note Principal Balance for the related
Interest Period. 
 (e)    The amount of monthly interest due with respect to the Class D Notes for any
Distribution Date and the related Interest Period (the “Class D Monthly Interest”) shall be calculated by the Servicer and shall be an amount equal to the product of (i) one-twelfth (or,
in the case of the March 2017 Distribution Date, a fraction, the numerator of which is 23 and the denominator of which is 360), times (ii) the Class D Note Interest Rate, times (iii) the Average Class D Note Principal
Balance for the related Interest Period. 
 SECTION 4.03    Determination of Monthly Principal Amount. 

The aggregate amount of monthly principal to be deposited into the Note Defeasance Account or the Note Distribution Account with respect to any
Collection Period in the Controlled Accumulation Period or, if earlier, any Collection Period or portion thereof in the Early Amortization Period (the “Monthly Principal Amount”), shall be equal to the least of (a) the sum

  
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of (i) the Available Series Principal Collections for each Business Day during such Collection Period, (ii) Additional Available Series Principal Collections for the related
Distribution Date and (iii) any Series 2017-1 Excess Funding Amount with respect to such period, (b) for each Collection Period with respect to the Controlled Accumulation Period, the Controlled
Deposit Amount for such Collection Period, and (c) the Net Invested Amount (after taking into account any adjustments to be made on the related Distribution Date pursuant to Sections 4.05 and 4.06).  

SECTION 4.04    Application of Available Funds on Deposit in Note Defeasance Account, Collection Account and Other
Sources. 
 (a)    On each Distribution Date, the Servicer shall apply, or direct the Indenture Trustee to apply by
written instruction to the Indenture Trustee, Available Series Interest Collections with respect to such Distribution Date, (x) on deposit in the Collection Account, and (y) solely to make the allocations, distributions or deposits
specified in clauses (ii) through (v) below, in the manner and order set forth therein, on deposit in the Note Defeasance Account (excluding amounts representing Investment Proceeds), in the following priority: 

(i)    first, an amount equal to the Monthly Servicing Fee for such Distribution Date, together with any
Monthly Servicing Fees previously due but not paid to the Servicer on prior Distribution Dates, shall be distributed to the Servicer (unless such amount has been netted against deposits into the Collection Account in accordance with
Section 8.4 of the Indenture); second, pro rata, an amount equal to the accrued and unpaid fees, expenses and indemnities owed to the Indenture Trustee, the Owner Trustee, the Administrator, the Asset Representations
Reviewer, and any other fees or expenses of the Issuing Entity payable by the Servicer or the Administrator (to the extent not paid by the Servicer, the Administrator or the Asset Representations Reviewer) shall be distributed to the Indenture
Trustee, the Owner Trustee, the Administrator, the Asset Representations Reviewer or the Person to whom such payment is owed, as applicable, provided that the amount distributed pursuant to this clause second shall not exceed the Annual Fee
Cap in any calendar year; third, an amount equal to the Monthly Back-up Servicing Fee for such Distribution Date, together with any Monthly Back-up Servicing Fees
previously due but not paid to the Back-up Servicer on prior Distribution Dates, shall be distributed to the Back-up Servicer; 

(ii)    an amount equal to the Class A Monthly Interest for such Distribution Date, together with any
Class A Monthly Interest previously due but not paid to the Class A Noteholders on prior Distribution Dates, shall be allocated and set aside from such funds in the Note Defeasance Account and, to the extent such funds are not sufficient,
the remainder shall be deposited into the Note Distribution Account from the Collection Account, for payment to the Class A Noteholders; 

(iii)    an amount equal to the Class B Monthly Interest for such Distribution Date, together with any
Class B Monthly Interest previously due but not paid to the Class B Noteholders on prior Distribution Dates, shall be allocated and set aside from such 

  
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funds in the Note Defeasance Account and, to the extent such funds are not sufficient, the remainder shall be deposited into the Note Distribution Account from the Collection Account, for payment
to the Class B Noteholders; 
 (iv)    an amount equal to the Class C Monthly Interest for such
Distribution Date, together with any Class C Monthly Interest previously due but not paid to the Class C Noteholders on prior Distribution Dates, shall be allocated and set aside from such funds in the Note Defeasance Account and, to the
extent such funds are not sufficient, the remainder shall be deposited into the Note Distribution Account from the Collection Account, for payment to the Class C Noteholders; 

(v)    an amount equal to the Class D Monthly Interest for such Distribution Date, together with any
Class D Monthly Interest previously due but not paid to the Class D Noteholders on prior Distribution Dates, shall be allocated and set aside from such funds in the Note Defeasance Account and, to the extent such funds are not sufficient,
the remainder shall be deposited into the Note Distribution Account from the Collection Account, for payment to the Class D Noteholders; 

(vi)    an amount equal to the Series Defaulted Amount for such Distribution Date shall be treated as
Additional Available Series Principal Collections for such Distribution Date; 
 (vii)    an amount equal
to the sum of Series Charge-Offs that have not been previously reimbursed shall be treated as Additional Available Series Principal Collections for such Distribution Date; 

(viii)    the amount equal to the sum of Reallocated Principal Collections that have not been previously
reimbursed shall be treated as Additional Available Series Principal Collections for such Distribution Date; 

(ix)    the amount necessary to cause the Class E Invested Amount to not be less than the Required
Class E Invested Amount shall be treated as Additional Available Series Principal Collections for such Distribution Date; 

(x)    an amount equal to the Reserve Fund Deposit Amount for such Distribution Date shall be deposited
into the Reserve Fund; 
 (xi)    the amount required to repay the Servicer for all outstanding Servicer
Advances made in respect of the Series 2017-1 Notes shall be distributed to the Servicer (unless such amount has been netted against deposits into the Collection Account in accordance with
Section 8.4 of the Indenture); 
 (xii)    pro rata, the amounts required to
pay any remaining fees, expenses, indemnities or other amounts required to be paid pursuant to clause second of subsection (i) above but not paid as a result of the proviso thereto, the amount required to reimburse

  
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the Back-up Servicer for all unpaid Servicer Termination Costs in excess of the amounts reimbursed by funds from the Servicer Termination Costs Reserve
Account and the amount required to reimburse the Back-up Servicer for all unpaid amounts due to the Back-up Servicer pursuant to the
Back-up Servicing Agreement shall be distributed to the applicable person; 

(xiii)    an amount equal to the Interest Collections Shortfalls for other outstanding Series in Excess
Interest Sharing Group One shall be treated as Excess Interest Collections available from Series 2017-1 and applied to cover the Interest Collections Shortfalls for other outstanding Series in Excess Interest
Sharing Group One; and 
 (xiv)    all remaining Available Series Interest Collections for such
Distribution Date shall be deposited in the Certificate Distribution Account for distribution to the holders of the Certificate in accordance with the Trust Agreement (unless such amount has been netted against deposits into the Collection Account
in accordance with Section 8.4 of the Indenture), but only to the extent that such remaining amount is not otherwise required to be deposited into the Excess Funding Account or the Cash Collateral Account pursuant to
Section 8.3 of the Indenture. 
 (b)    If Available Series Interest Collections with respect
to any Distribution Date are insufficient to distribute or deposit the full amounts required under Section 4.04(a), the Servicer shall apply, or direct the Indenture Trustee to apply by written instructions to the Indenture Trustee, on such
Distribution Date available funds from the following sources in the following order to make up any such shortfalls to the extent provided below: 

(i)    first, from Excess Interest Collections available from other outstanding Series in Excess Interest
Sharing Group One, but only to cover shortfalls in the distributions and deposits required under clauses (i) through (xi) of Section 4.04(a) in that order; 

(ii)    second, from the Reserve Fund Available Amount, but only to cover shortfalls in the distributions
and deposits required under clauses (i) through (viii) of Section 4.04(a) in that order; 

(iii)    third, from the Reallocated Principal Collections for such Distribution Date, but only to cover
shortfalls in the distributions required under clauses (i) through (v) of Section 4.04(a) in that order; and 

(iv)    fourth, from the Servicer to the extent that the Servicer, in its sole discretion, decides to make
an advance, but only to cover shortfalls in the distributions and deposits required under clauses (i) through (x) of Section 4.04(a) in that order, and only to the extent that the Servicer expects to recover such advances
(each, a “Servicer Advance”) pursuant to Section 4.04(a)(xi) on subsequent Distribution Dates. 

  
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 (c)    On each Business Day with respect to the Revolving Period, the
Servicer shall apply, or direct the Indenture Trustee to apply by written instruction to the Indenture Trustee, Available Series Principal Collections for such date as Shared Principal Collections with respect to Principal Sharing Group One and
applied in accordance with Section 4.08 hereof and Section 8.5(c) of the Indenture. 

(d)    On each Business Day with respect to the Controlled Accumulation Period, the Servicer shall apply, or direct the
Indenture Trustee to apply by written instruction to the Indenture Trustee, Available Series Principal Collections for such date to make the following distributions or deposits in the following priority: 

(i)    first, an amount equal to the excess, if any, of (A) the Monthly Principal Amount for the
related Collection Period over (B) the amount previously deposited during that Collection Period for the payment of principal to the Noteholders shall be deposited into the Note Distribution Account or, if elected pursuant to Section
4.04(k), the Note Defeasance Account, for payment of principal to the Noteholders; and 

(ii)    second, any remaining amounts shall be treated as Shared Principal Collections with respect to
Principal Sharing Group One and applied in accordance with Section 4.08 hereof and Section 8.5(c) of the Indenture. 

(e)    On each Business Day with respect to the Early Amortization Period, the Servicer shall apply, or direct the
Indenture Trustee to apply by written instruction to the Indenture Trustee, Available Series Principal Collections for such date to make the following distributions or deposits in the following priority: 

(i)    first, the amount necessary to reduce the Note Principal Balance to zero, but not more than the
amount that would reduce the Invested Amount to zero, shall be deposited into the Note Distribution Account or, if elected pursuant to Section 4.04(k), the Note Defeasance Account, for payment of principal to the Noteholders in accordance
with Section 5.02(b); and 
 (ii)    second, any remaining amounts shall be treated as Shared
Principal Collections with respect to Principal Sharing Group One and applied in accordance with Section 4.08 hereof and Section 8.5(c) of the Indenture. 

(f)    On each Distribution Date, the Servicer shall apply, or direct the Indenture Trustee to apply by written
instructions to the Indenture Trustee, Additional Available Series Principal Collections, if any, (i) first, to make the applications of Additional Available Series Principal Collections required pursuant to
Section 4.06, (ii) second, to make the deposits and distributions required to be made during the related Collection Period pursuant to Sections 4.04(c), (d) and (e) that have not otherwise been made as of
such Distribution Date, and (iii) third, any remaining Additional Available Series Principal Collections shall be treated as Available Series Principal Collections for such date. 

  
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 (g)    On the first Business Day of the earlier to occur of the Controlled
Accumulation Period and the Early Amortization Period, the Indenture Trustee, acting in accordance with written instructions from the Servicer, shall withdraw from the Excess Funding Account and apply in accordance with Sections 4.04(d) or
(e), as applicable, an amount equal to the lesser of (i) the Series 2017-1 Excess Funding Amount for such date and (ii) the amount required to be deposited or distributed on that date pursuant
to Section 4.04(d)(i) or 4.04(e)(i), as applicable that was not previously deposited or distributed on that date. 

(h)    The Controlled Accumulation Period is scheduled to commence on the first day of the August 2018 Collection Period;
provided, however, that, if the Accumulation Period Length (determined as described below) is less than six Collection Periods, the date on which the Controlled Accumulation Period actually commences shall be delayed to the first day
of the Collection Period that is the number of whole Collection Periods before the Series 2017-1 Expected Maturity Date at least equal to the Accumulation Period Length and, as a result, the number of
Collection Periods in the Controlled Accumulation Period shall at least equal the Accumulation Period Length. On or before each Determination Date beginning with the Determination Date in the July 2018 Collection Period and ending when the
Controlled Accumulation Period begins, the Servicer shall determine the “Accumulation Period Length” as of such Determination Date, which shall equal the number of whole Collection Periods such that the sum of the Accumulation
Period Factors for each Collection Period during such period shall be equal to or greater than the Required Accumulation Factor Number; provided, however, that the Accumulation Period Length shall not be determined to be less than
one Collection Period. If the number of whole Collection Periods remaining after such Determination Date and before the Series 2017-1 Expected Maturity Date is less than or equal to the Accumulation
Period Length calculated as of such Determination Date, the Controlled Accumulation Period shall commence on the first day of the following Collection Period; provided, however, if such number of Collection Periods is greater than such
Accumulation Period Length, the commencement of the Controlled Accumulation Period shall be delayed until at least the next Determination Date, at which time the Accumulation Period Length shall be recalculated as described above. 

(i)    All distributions that are deposited by the Indenture Trustee into the Certificate Distribution Account for
distribution to the holders of the Certificate pursuant to this Indenture Supplement shall be made in accordance with such written remittance instructions as may be provided to the Indenture Trustee by the Depositor from time to time. 

(j)    Notwithstanding any other provision of this Indenture Supplement or the Indenture, if any amount is required to be
deposited into any Series Account or other account pursuant to this Indenture Supplement and all or part of the amount of such deposit is to be deposited into another account or otherwise distributed on that date, such amount may be deposited
directly into the applicable subsequent account or distributed directly to the applicable recipient without first being deposited into the initial Series Account or account. 

(k)    Note Defeasance Account. With respect to each Collection Period, no later than 10:00 am Central time on any
Business Day of such Collection Period, including pursuant to Section 4.04(d) and (e), the Servicer, at the direction of the Depositor, shall and, the Servicer may (if Ally Financial or an Affiliate of Ally Financial is the Servicer),
in its discretion, specify 

  
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to the Indenture Trustee an amount of Available Series Interest Collections and Available Series Principal Collections to be withdrawn from the Collection Account or, with respect to any amounts
on deposit in the Note Distribution Account constituting Available Series Principal Collections, the Note Distribution Account, and deposited into the Note Defeasance Account. With respect to any Collection Period, the aggregate of such amounts
deposited into the Note Defeasance Account, as reasonably calculated by the Servicer (i) with respect to each Collection Period (or portion thereof) that does not occur during a Controlled Accumulation Period or Early Amortization Period, shall
not be in excess of the lesser of (1) Available Series Interest Collections for such Collection Period plus Reallocated Principal Collections for the related Distribution Date less the Monthly Servicing Fee for such Collection Period and
(2) the aggregate amount necessary to make the allocations and distributions required by clauses (ii) through (v) of Section 4.04(a) and (ii) with respect to each Collection Period (or portion thereof) that occurs during a
Controlled Accumulation Period or Early Amortization Period, shall not be in excess of the lesser of (1) the aggregate of the Available Series Interest Collections for such Collection Period, plus the Available Series Principal Collections for
such Collection Period, less the Monthly Servicing Fee for such Collection Period and (2) the aggregate amount necessary to make the allocations and distributions required by (x) clauses (ii) through (v) of Section 4.04(a) and
(y) Section 4.04(d) or 4.04(e), as applicable, during such Collection Period. The Servicer shall not have any liability for any such calculation made in good faith. Any amount on deposit in the Note Defeasance Account on any
Distribution Date (after giving effect to all deposits therein or withdrawals therefrom on such Distribution Date) shall remain on deposit in the Note Defeasance Account for distribution on the next Distribution Date in accordance with this
Indenture Supplement. 
 (l)    No later than 10:00 am Central time on each Business Day on which amounts are to be
withdrawn from the Collection Account or the Note Distribution Account and deposited into the Note Defeasance Account pursuant to Section 4.04(k), the Servicer shall notify the Indenture Trustee of the sources and amounts to be deposited in
the Note Defeasance Account on such Business Day and the Indenture Trustee shall transfer such amount from the Collection Account or the Note Distribution Account, as applicable, to the Note Defeasance Account. 

SECTION 4.05    Series Charge-Offs. 

(a)    On each Determination Date, the Servicer shall calculate the Series Defaulted Amount, if any, for the related
Distribution Date. If the Series Defaulted Amount for any Distribution Date exceeds the sum of: 

(i)    the Available Series Interest Collections for such Distribution Date applied to fund such Series
Defaulted Amount pursuant to Section 4.04(a)(vi); 
 (ii)    the Excess Interest Collections
available from other outstanding Series in Excess Interest Sharing Group One for such Distribution Date applied to fund such Series Defaulted Amount pursuant to Section 4.04(a)(vi) in accordance with Section 4.04(b)(i); 

(iii)    the Reserve Fund Available Amount for such Distribution Date applied to fund such Series Defaulted
Amount pursuant to Section 4.04(a)(vi) in accordance with Section 4.04(b)(ii) (after giving effect to the application of such amounts to items (i) through (v) in Section 4.04(a)); and 

  
 29 

 (iv)    the amount of Servicer Advances for such Distribution
Date applied to fund such Series Defaulted Amount pursuant to Section 4.04(a)(vi) in accordance with Section 4.04(b)(iv); 
 then, a
“Series Charge-Off” in the amount of such excess shall exist for such Distribution Date and shall reduce the Invested Amount. 

(b)    The reduction in the Invested Amount for such Distribution Date due to such Series
Charge-Off shall be allocated as follows: 
 (i)    first, the
Class E Invested Amount shall be reduced by the amount of such reduction until the Class E Invested Amount is reduced to zero; then 

(ii)    second, the Class D Invested Amount shall be reduced by any remaining amount until the
Class D Invested Amount is reduced to zero; then 
 (iii)    third, the Class C Invested Amount
shall be reduced by any remaining amount until the Class C Invested Amount is reduced to zero; then 

(iv)    fourth, the Class B Invested Amount shall be reduced by any remaining amount until the
Class B Invested Amount is reduced to zero; and then 
 (v)    fifth, the Class A Invested
Amount shall be reduced by any remaining amount until the Class A Invested Amount is reduced to zero. 

SECTION 4.06    Reallocated Principal Collections. 

On each Distribution Date, the Servicer shall apply, or direct the Indenture Trustee by written instruction to the Indenture Trustee to apply,
the portion of Reallocated Principal Collections specified in Section 4.04(b)(iii) from the following sources and in the following order of priority, (i) first, Additional Available Series Principal Collections for that Distribution Date
available in accordance with Section 4.04(f), (ii) second, Series Principal Collections for that date, (iii) third, amounts on deposit in the Note Defeasance Account (to the extent such funds are used to cover shortfalls in the
distributions required under clauses (ii) through (v) of Section 4.04(a)), and (iv) fourth, amounts on deposit in the Note Distribution Account for the payment of principal (first for the Class E Notes, then for the
Class D Notes, then for the Class C Notes, then for the Class B Notes and then for the Class A Notes), but not in excess of the amounts specified in the definition of “Reallocated Principal Collections,” in accordance
with Section 4.04(b)(iii). If, on any Distribution Date, Reallocated Principal Collections for such Distribution Date are so applied, then the Invested Amount shall be reduced by the amount of such application and, if such amounts are from
withdrawals from the Note Distribution Account or the Note Defeasance Account, those amounts shall be deemed not to have been allocated or 

  
 30 

 
deposited into the Note Distribution Account or the Note Defeasance Account, as applicable, for purposes of this Indenture Supplement. The reduction in the Invested Amount for such Distribution
Date due to the application of such Reallocated Principal Collections shall be allocated as follows: 
 (a)    first,
the Class E Invested Amount shall be reduced by the amount of such reduction until the Class E Invested Amount is reduced to zero; then 

(b)    second, the Class D Invested Amount shall be reduced by any remaining amount until the Class D Invested
Amount is reduced to zero; then 
 (c)    third, the Class C Invested Amount shall be reduced by any remaining
amount until the Class C Invested Amount is reduced to zero; then 
 (d)    fourth, the Class B Invested
Amount shall be reduced by any remaining amount until the Class B Invested Amount is reduced to zero; and then 

(e)    fifth, the Class A Invested Amount shall be reduced by any remaining amount until the Class A Invested
Amount is reduced to zero. 
 SECTION 4.07    Excess Interest Collections. 

Subject to Section 8.05(b) of the Indenture, Excess Interest Collections with respect to the Excess Interest Sharing Series in Excess
Interest Sharing Group One for any Distribution Date shall be allocated to Series 2017-1 in an amount equal to the product of (i) the aggregate amount of Excess Interest Collections with respect to all
the Excess Interest Sharing Series in Excess Interest Sharing Group One for such Distribution Date and (ii) a fraction, the numerator of which is the Interest Collections Shortfall for Series 2017-1 for
such Distribution Date and the denominator of which is the aggregate amount of Interest Collections Shortfalls for all the Excess Interest Sharing Series in Excess Interest Sharing Group One for such Distribution Date. The “Interest
Collections Shortfall” for Series 2017-1 for any Distribution Date shall equal the excess, if any, of (a) the full amount required to be paid, without duplication, pursuant to clauses
(i) through (xi) of Section 4.04(a) on such Distribution Date, over (b) the Available Series Interest Collections for such Distribution Date. The maximum amount of “Excess Interest Collections”
with respect to Series 2017-1 for any Distribution Date available for other Series in Excess Sharing Group One shall equal the excess, if any, of (a) the Available Series Interest Collections for such
Distribution Date over (b) the full amount required to be distributed, without duplication, pursuant to clauses (i) through (xi) of Section 4.04(a) on such Distribution Date. 

SECTION 4.08    Shared Principal Collections. 

Subject to Section 8.5(c) of the Indenture, the aggregate amount of Shared Principal Collections with respect to the Principal Sharing
Series in Principal Sharing Group One for any date shall be allocated to Series 2017-1 in an amount equal to the product of (i) the aggregate amount of Shared Principal Collections, times
(ii) a fraction, the numerator of which is the 

  
 31 

 
Principal Shortfall for Series 2017-1 for such date and the denominator of which is the aggregate amount of Principal Shortfalls for all the Principal
Sharing Series in Principal Sharing Group One for such date. The “Principal Shortfall” for Series 2017-1 shall equal (a) for any date in the Revolving Period, zero, (b) for any date
in the Controlled Accumulation Period, the amount to be deposited or distributed pursuant to Sections 4.04(d) over the amount previously deposited or distributed pursuant to that subsection, and (c) for any date in the Early Amortization
Period, the amount to be deposited or distributed pursuant to Section 4.04(e) over the amount previously deposited or distributed pursuant to that subsection. The “Shared Principal Collections” with respect to Series 2017-1 for any date shall equal the excess, if any, of (a) the Available Series Principal Collections for such date (without giving effect to clause (ii) of the definition thereof) over
(b) the full amount required to be deposited or distributed, without duplication, pursuant to Sections 4.04(c), (d) or (e) on such date. 

SECTION 4.09    Reinstatement of Invested Amount. 

(a)    The Invested Amount shall be reinstated on any Distribution Date by the amount of any Available Series Interest
Collections that are applied pursuant to Section 4.04(a)(vi), (vii), (viii) and (ix). This amount shall be applied as follows: 

(i)    first, if the Class A Invested Amount has been reduced pursuant to Sections 4.05 or
4.06, to the Class A Invested Amount until it equals the Class A Note Principal Balance minus the aggregate amount on deposit in the Note Distribution Account and the Note Defeasance Account (excluding, in each case, amounts
representing Investment Proceeds) allocated to it; then 
 (ii)    second, if the Class B Invested
Amount has been reduced pursuant to Sections 4.05 or 4.06, to the Class B Invested Amount until it equals the Class B Note Principal Balance minus the aggregate amount on deposit in the Note Distribution Account and the Note
Defeasance Account (excluding amounts representing Investment Proceeds) allocated to it; then 

(iii)    third, if the Class C Invested Amount has been reduced pursuant to Sections 4.05 or
4.06, to the Class C Invested Amount until it equals the Class C Note Principal Balance minus the aggregate amount on deposit in the Note Distribution Account and the Note Defeasance Account (excluding, in each case, amounts
representing Investment Proceeds) allocated to it; then 
 (iv)    fourth, if the Class D Invested
Amount has been reduced pursuant to Sections 4.05 or 4.06, to the Class D Invested Amount until it equals the Class D Note Principal Balance minus the aggregate amount on deposit in the Note Distribution Account and the Note
Defeasance Account (excluding, in each case, amounts representing Investment Proceeds) allocated to it; and then 

  
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 (v)    fifth, if the Class E Invested Amount has been
reduced pursuant to Sections 4.05 or 4.06, to the Class E Invested Amount until it equals the Required Class E Invested Amount. 

SECTION 4.10    Note Distribution Account. 

(a)    The Servicer, for the benefit of the Noteholders, shall establish and maintain with the Indenture Trustee in the
name of the Indenture Trustee, on behalf of the Issuing Entity, an Eligible Deposit Account (including any subaccounts thereof) bearing a designation clearly indicating that the funds and other property credited thereto are held for the benefit of
the Noteholders (the “Note Distribution Account”). The Indenture Trustee shall possess all right, title and interest in all Eligible Investments and all monies, cash, instruments, securities, securities entitlements, documents,
certificates of deposit and other property from time to time on deposit in or credited to the Note Distribution Account and in all Investment Proceeds with respect thereto (including any accrued discount realized on liquidation of any investment
purchased at a discount) for the benefit of the Noteholders. Except as expressly provided in this Indenture Supplement and the Trust Sale and Servicing Agreement, the Servicer agrees that it has no right of setoff or banker’s lien against, and
no right to otherwise deduct from, any funds and other property held in the Note Distribution Account for any amount owed to it by the Indenture Trustee, the Issuing Entity, any Noteholder or any Series Enhancer. The Indenture Trustee, at the
written direction of the Servicer, shall make deposits and withdrawals from the Note Distribution Account from time to time, in the amounts and for the purposes set forth in this Indenture Supplement. 

(b)    Funds on deposit in the Note Distribution Account shall, at the written direction of the Servicer, be invested by
the Indenture Trustee (including a Securities Intermediary) in Eligible Investments selected by the Servicer. All such Eligible Investments shall be held by the Indenture Trustee or its nominee for the benefit of the Noteholders. The Indenture
Trustee shall cause each Eligible Investment to be delivered to it (including a Securities Intermediary) and credited to the Note Distribution Account. On each Distribution Date, all Investment Proceeds on deposit in the Note Distribution Account
shall be treated as Available Series Interest Collections with respect to the related Collection Period. The Indenture Trustee shall bear no responsibility or liability for any losses resulting from investment or reinvestment of any funds in
accordance with this Section 4.10(b) nor for the selection of Eligible Investments in accordance with the provisions of this Indenture Supplement, the Indenture or the Trust Sale and Servicing Agreement. 

SECTION 4.11    Reserve Fund. 

(a)    The Servicer, for the benefit of the Series 2017-1 Noteholders, shall
establish and maintain with the Indenture Trustee or its nominee in the name of the Indenture Trustee, on behalf of the Issuing Entity, an Eligible Deposit Account (including any subaccounts thereof) bearing a designation clearly indicating that the
funds and other property credited thereto are held for the benefit of the Series 2017-1 Noteholders (the “Reserve Fund”). The Indenture 

  
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Trustee shall possess all right, title and interest in all Eligible Investments and all monies, cash, instruments, securities, securities entitlements, documents, certificates of deposit and
other property from time to time on deposit in or credited to the Reserve Fund and in all interest, proceeds, earnings, income, revenue, dividends and other distributions thereof (including any accrued discount realized on liquidation of any
investment purchased at a discount) for the benefit of the Series 2017-1 Noteholders. Except as expressly provided in this Indenture Supplement and the Trust Sale and Servicing Agreement, the Servicer agrees
that it has no right of setoff or banker’s lien against, and no right to otherwise deduct from, any funds and other property held in the Reserve Fund for any amount owed to it by the Indenture Trustee, the Issuing Entity, any Noteholder or any
Series Enhancer. The Indenture Trustee, at the written direction of the Servicer, shall make deposits to and withdrawals from the Reserve Fund from time to time in the amounts and for the purposes set forth in this Indenture Supplement. 

(b)    Funds on deposit in the Reserve Fund shall, at the written direction of the Servicer, be invested by the Indenture
Trustee or its nominee (including the Securities Intermediary) in Eligible Investments. All such Eligible Investments shall be held by the Indenture Trustee or its nominee for the benefit of the Series 2017-1
Noteholders. The Indenture Trustee shall cause each Eligible Investment to be delivered to it or its nominee (including a securities intermediary) and shall be credited to the Reserve Fund. Funds on deposit in the Reserve Fund shall be invested in
Eligible Investments. On each Distribution Date, all Investment Proceeds on deposit in the Reserve Fund shall be treated as Available Series Interest Collections for such Distribution Date. The Indenture Trustee shall bear no responsibility or
liability for any losses resulting from investment or reinvestment of any funds in accordance with this Section 4.11(b) nor for the selection of Eligible Investments in accordance with the provisions of this Indenture Supplement, the
Indenture or the Trust Sale and Servicing Agreement. 
 (c)    The Reserve Fund initially shall be funded by the
Depositor on the Closing Date in the amount of the Reserve Fund Initial Amount. After the Closing Date, funds shall be deposited into the Reserve Fund as provided in Section 4.04(a)(x). The Depositor may at any time and from time to time make
additional deposits into the Reserve Fund; provided, however, the Depositor shall not be permitted to make any such discretionary deposit without satisfaction of the Series 2017-1 Rating Agency
Condition with respect to each Class of Series 2017-1 Notes in connection therewith if such deposit, together with any discretionary increases in the Subordination Factor and the Class E Invested
Amount, would result in the aggregate amount of all such deposits and increases exceeding 5.0% of the Note Principal Balance as of the date of such deposit. 

(d)    If on any Distribution Date, after giving effect to all withdrawals from and deposits to the Reserve Fund, the
amount on deposit in the Reserve Fund (excluding amounts representing Investment Proceeds) exceeds the Reserve Fund Required Amount then in effect, the Indenture Trustee shall, at the written direction of the Servicer, distribute such excess to the
Owner Trustee for distribution to the holders of the Certificate Interest in accordance with the Trust Agreement. 

  
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 (e)    Upon the earlier to occur of the date on which the Series 2017-1 Notes are paid in full and the Series 2017-1 Legal Maturity Date, any funds remaining in the Reserve Fund, after giving effect to any deposits and withdrawals made
therefrom on such date, shall be distributed to the Owner Trustee for distribution to the holders of the Certificate Interest in accordance with the Trust Agreement. The Reserve Fund shall thereafter be deemed to have terminated for purposes of this
Indenture Supplement. 
 SECTION 4.12    Determination of LIBOR. 

(a)    On each LIBOR Determination Date, the Indenture Trustee shall determine LIBOR on the basis of the rate for deposits
in United States dollars for a one-month period which appears on Bloomberg Screen BBAM Page as of 11:00 a.m., London time, on such date. If such rate does not appear on such page (or such other page as may
replace that page on that service, or if such service is no longer offered, such other service for displaying LIBOR or comparable rates as may be selected by the Indenture Trustee after consultation with the Depositor), the rate shall be the One
Month Reference Bank Rate. The “One Month Reference Bank Rate” shall be determined on the basis of the rates at which deposits in U.S. dollars are offered by the reference banks (which shall be four major banks that are engaged in
transactions in the London interbank market, selected by the Indenture Trustee after consultation with the Depositor) as of 11:00 a.m., London time, on the applicable LIBOR Determination Date to prime banks in the London interbank market for a
period of one month commencing on such preceding Distribution Date in amounts approximately equal to the principal balance of the Series 2017-1 Notes. The Indenture Trustee shall request the principal London
office of each of the reference banks to provide a quotation of its rate. If at least two such quotations are provided, the rate shall be the arithmetic mean of the quotations, rounded upwards to the nearest
one-sixteenth of one percent. If on any such date fewer than two quotations are provided as requested, the rate shall be the arithmetic mean, rounded upwards to the nearest
one-sixteenth of one percent, of the rates quoted by one or more major banks in New York, selected by the Indenture Trustee after consultation with the Depositor, as of 11:00 a.m., New York time, on such date
to leading European banks for U.S. dollar deposits for a period of one month commencing on such applicable date in amounts approximately equal to the then outstanding principal balance of the Series 2017-1
Notes. If no such quotation can be obtained, the rate shall be LIBOR for the prior Distribution Date. 

(b)    On each LIBOR Determination Date, the Indenture Trustee shall send to the Servicer, the Issuing Entity and the
Administrator, by facsimile or email transmission, notification of LIBOR for the following Interest Period. 

(c)    The Servicer shall provide, in the Monthly Statement, the Class A Note Interest Rate, the Class B Note
Interest Rate, the Class C Note Interest Rate and the Class D Note Interest Rate applicable to each Distribution Date. 

  
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 (d)    Other than the determination of LIBOR as provided for herein, all
other determinations and calculations provided for in this Indenture Supplement shall be made by the Servicer. 

SECTION 4.13    Account Holder. 

Notwithstanding 8.3(e)(i) or any other provision of the Indenture, it shall not be permissible to maintain a Designated Account in or move a
Designated Account to the corporate trust department of the Account Holder unless the Account Holder or any securities issued by the Account Holder have a long term debt rating from Standard & Poor’s of not less than “A”.

 SECTION 4.14    Transfer Restrictions. 

(a)    The Class E Notes (or interests therein) may not be acquired by or for the account of (i) a Benefit Plan
other than an insurance company general account (as defined in Prohibited Transaction Class Exemption (“PTCE”) 95-60) whose underlying assets include less than 25% “plan assets” and
for which the purchase and holding of the Class E Notes is eligible for and satisfied all conditions for relief under PTCE 95-60 or (ii) an employee benefit plan or plan that is not subject to the
provisions of Title I of ERISA or Section 4975 of the Code if such acquisition would result in a non-exempt prohibited transaction under, or a non-exempt violation
of, any applicable law that is substantially similar to Title I of ERISA or Section 4975 of the Code. By accepting and holding a Class E Note (or interest therein), the Holder thereof and any related Note Owner shall each be deemed to have
represented and warranted that it is not, nor is it acquiring the Note for the account of either, (i) a Benefit Plan other than an insurance company general account (as defined in Prohibited Transaction Class Exemption (“PTCE”) 95-60) whose underlying assets include less than 25% “plan assets” and for which the purchase and holding of the Class E Notes is eligible for and satisfied all conditions for relief under PTCE 95-60 or (ii) an employee benefit plan or plan that is not subject to the provisions of Title I of ERISA or Section 4975 of the Code if such acquisition would result in a
non-exempt prohibited transaction under, or a non-exempt violation of, any applicable law that is substantially similar to Title I of ERISA or Section 4975 of the
Code. By accepting and holding a Class A Note, Class B Note, Class C Note or Class D Note (or interest therein), the Holder thereof and any related Note Owner shall be deemed to have represented and warranted that either
(i) it is not, nor is it acquiring the Note for the account of, a Benefit Plan or any other plan that is subject to any law that is substantially similar to Title I of ERISA or Section 4975 of the Code or (ii) the acquisition and
holding of the Note will not give rise to a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a non-exempt violation
of substantially similar law. In addition, Benefit Plans may not acquire (i) a Class A Note, Class B Note, Class C Note, or Class D Note at any time that such Note would not be treated as indebtedness without substantial
equity features, or (ii) a Class B Note, Class C Note or Class D Note at any time that the ratings on such Note are below investment grade. By accepting and holding a Class A Note, Class B Note, Class C Note or
Class D Note (or interest therein), the Holder thereof and any related Note Owner shall each be deemed to have represented and warranted that its acquisition of such note is in compliance with the foregoing restriction. 

  
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 (b)    The Series 2017-1 Private
Notes will not be registered under the Securities Act or the securities or blue sky laws of any other jurisdiction. Consequently, the Series 2017-1 Private Notes are not transferable other than pursuant to an
exemption from the registration requirements of the Securities Act and satisfaction of certain other provisions specified herein. No sale, pledge or other transfer of the Series 2017-1 Private Notes (or
interest therein) may be made by any Person unless either (i) such sale, pledge or other transfer is made to or by the Depositor, (ii) so long as the Series 2017-1 Private Notes are eligible for
resale pursuant to Rule 144A under the Securities Act, such sale, pledge or other transfer is made to a person whom the transferor “reasonably believes” within the meaning of Rule 144A under the Securities Act is a “qualified
institutional buyer” within the meaning of Rule 144A under the Securities Act (a “Qualified Institutional Buyer”) acting for its own account (and not for the account of others) or as a fiduciary or agent for others (which
others also are Qualified Institutional Buyers) to whom notice is given that the sale, pledge or transfer is being made in reliance on Rule 144A under the Securities Act, or (iii) such sale, pledge or other transfer is otherwise made in a
transaction exempt from the registration requirements of the Securities Act, in which case (A) the Indenture Trustee shall require that both the prospective transferor and the prospective transferee certify to the Indenture Trustee and the
Depositor in writing the facts surrounding such transfer, which certification shall be in form and substance satisfactory to the Indenture Trustee and the Depositor, and (B) the Indenture Trustee shall require a written opinion of counsel
(which will not be at the expense of the Issuing Entity, the Seller, the Depositor, the Servicer or the Indenture Trustee) satisfactory to the Depositor and the Indenture Trustee to the effect that such transfer will not violate the Securities Act.
Neither the Depositor nor the Indenture Trustee shall be obligated to register the Series 2017-1 Private Notes under the Securities Act, qualify the Series 2017-1
Private Notes under the securities laws of any state or provide registration rights to any purchaser or holder thereof. 

(c)    Transfer of a Class E Note may only be made to a Person who is a United States Person (within the meaning of
Section 7701(a)(30) of the Internal Revenue Code). Any Person acquiring a Class E Note or an interest therein (i) shall not be deemed to have made the representations set forth in Section 2.14 of the Indenture and
(ii) other than the Depositor shall not acquire or hold such Class E Note or interest therein in the form of a Book Entry Note. 

(d)    No sale, pledge or other transfer may be made to any one person of a Class E Note with a face amount of less
than the amount determined in accordance with Section 1.01(E) hereof (in order to prevent the Issuing Entity from being treated as a “publicly traded partnership” under Section 7704 of the Code), and, in the case of any Person
acting on behalf of one or more third parties (other than a bank (as defined in Section 3(a)(2) of the Securities Act) acting in its fiduciary capacity), for a Class E Note with a face amount of less than such amount for each such third party.
Any attempted transfer in contravention of the immediately preceding restriction will be void ab initio and the purported transferor will continue to be treated as the owner of the Class E Notes for all purposes. No Class E Note may
be transferred unless the transferor provides to the Indenture Trustee an opinion of independent counsel that the transfer will not cause the Issuing Entity to be treated as an association (or publicly traded partnership) taxable as a corporation
for federal income tax purposes. 

  
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 (e)    (i) A sale, pledge, or transfer of a Class B Note, Class C
Note or Class D Note may only be made to a Person who is a United State Person (within the meaning of Section 7701(a)(30) of the Internal Revenue Code). A Person other than the Depositor acquiring a Class B Note, Class C Note or
Class D Note or an interest therein shall be deemed to have made the representations set forth in Section 2.14 of the Indenture; and (ii) no sale, pledge, or transfer of a Class B Note, Class C Note or
Class D Note shall be made (x) to any one person with a face amount of less than 100% of the Class B Note Principal Balance, Class C Note Principal Balance or Class D Note Principal Balance, as applicable, or (y) to a
Special Pass-Through Entity, in each case, unless (A) an opinion of counsel satisfactory to the Indenture Trustee and the Depositor that such sale, pledge, or transfer shall not cause the Issuing Entity
to be treated as an association (or publicly traded partnership) taxable as a corporation for federal income tax purposes shall have been delivered to the Indenture Trustee and the Depositor and (B) the Depositor shall have provided prior
written approval; provided, however, that the restrictions in this Section 4.14(e) shall not apply in the event counsel satisfactory to the Indenture Trustee and the Depositor has rendered an opinion to the effect that the
Class B Note, Class C Note or Class D Note to be sold, pledged, or transferred will be characterized as indebtedness for federal income tax purposes. Any attempted transfer in contravention of this Section 4.14(e) will be void
ab initio and the purported transferor will continue to be treated as the owner of, as applicable, the Class B Note, Class C Note or Class D Note for all purposes. 

SECTION 4.15    Note Defeasance Account. 

(a)    The Indenture Trustee, for the benefit of the Series 2017-1 Noteholders,
shall establish and maintain in the name of the Indenture Trustee, an Eligible Deposit Account (including any subaccounts thereof) bearing a designation clearly indicating that the funds and other property credited thereto are held for the benefit
of the Series 2017-1 Noteholders (the “Note Defeasance Account”). The Indenture Trustee shall possess all right, title and interest in all Eligible Investments and all monies, cash,
instruments, securities, securities entitlements, documents, certificates of deposit and other property from time to time on deposit in or credited to the Note Defeasance Account for the benefit of the Series
2017-1 Noteholders (other than Investment Proceeds, which shall be for the benefit of the Indenture Trustee). Except as expressly provided in this Indenture Supplement, the Servicer agrees that it has no right
of setoff or banker’s lien against, and no right to otherwise deduct from, any funds and other property held in the Note Defeasance Account for any amount owed to it by the Indenture Trustee, the Issuing Entity, any Noteholder or any Series
Enhancer. The Indenture Trustee, at the written direction of the Servicer, shall make deposits and withdrawals from the Note Defeasance Account from time to time, in the amounts and for the purposes set forth in this Indenture Supplement. 

(b)    Funds on deposit in the Note Defeasance Account shall, at the direction or election of the Indenture Trustee, be
invested by the Indenture Trustee (including the Securities Intermediary) in Eligible Investments that mature prior to the next Distribution Date selected by 

  
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the Indenture Trustee. All such Eligible Investments shall be held by the Indenture Trustee or its nominee for the benefit of the Series 2017-1
Noteholders. The Indenture Trustee shall cause each Eligible Investment to be delivered to it (including the Securities Intermediary) and shall be credited to the Note Defeasance Account. Notwithstanding anything to the contrary in the Indenture,
the Indenture Trustee shall be entitled to receive all Investment Proceeds on the Note Defeasance Account when and as paid without any obligation to the Owner Trustee, the Servicer or the Depositor in respect thereof. The Indenture Trustee will have
no obligation to deposit any such amount in any account established hereunder or the Indenture. Notwithstanding Sections 6.1(f) and 8.3(f) of the Indenture, the Indenture Trustee shall be liable for any investment losses with respect
to funds on deposit in the Note Defeasance Account. 
 (c)    All payments of amounts due and payable with respect to
any Notes that are to be made from amounts withdrawn from the Note Defeasance Account pursuant to this Indenture Supplement shall be made by the Indenture Trustee or by another Paying Agent from available funds on deposit in the Note Defeasance
Account. 
 (d)    Upon the irrevocable deposit of any amount into the Note Defeasance Account pursuant to this
Indenture Supplement, the Issuing Entity shall have no further liability for, and shall be deemed to be discharged and released from its obligations with respect to, the Series 2017-1 Notes to the extent of
the amount so deposited as such amounts are to be applied to the payments of interest on and principal of the Series 2017-1 Notes in accordance with the priorities specified in this Indenture Supplement, and
the Holders of the Series 2017-1 Notes shall have recourse and shall look solely to the Note Defeasance Account for the payment of such amounts. 

(e)    All monies deposited with the Indenture Trustee in the Note Defeasance Account pursuant to this Indenture
Supplement shall be held in trust in a segregated trust account and (except for Investment Proceeds thereon) applied by the Indenture Trustee, in accordance with the provisions of the Series 2017-1 Notes and
this Indenture Supplement, to the payment, either directly or through any Paying Agent, as the Indenture Trustee may determine, to the Holders of Series 2017-1 Notes for payment on or redemption of the Series 2017-1 Notes, and no amounts so withdrawn from the Note Defeasance Account for payments of Notes shall be paid over to the Issuing Entity. 

(f)    The Indenture Trustee may, at such time as there are no Notes Outstanding, notify the Issuing Entity thereof in
writing and withdraw and retain any funds then on deposit in the Note Defeasance Account. 
 (g)    Sections
8.3(f) and (g) of the Indenture shall not apply to the Note Defeasance Account. 
 (h)    The Note
Defeasance Account shall constitute a “Note Distribution Account” solely for purposes of Sections 2.7, 3.1, 3.3(b), and 10.1 of the Indenture. 

  
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 SECTION 4.16    FATCA. 

Each Noteholder or holder of an interest in a Note, by acceptance of such Note or such interest therein, agrees to provide to the Indenture
Trustee, any Paying Agent or the Issuing Entity, upon its request, the Noteholder Tax Identification Information and, to the extent FATCA Withholding Tax is applicable, the Noteholder FATCA Information. In addition, each Noteholder or holder of an
interest in a Note, by acceptance of such Note or such interest therein, agrees that the Indenture Trustee has the right to withhold any amounts of interest (properly withholdable under law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in a Note that fails to comply with the requirements of the preceding sentence. 

SECTION 4.17    Asset Representations Review. 

(a)    Within 90 days of publication that the Downgrade Trigger has been met or exceeded in the Monthly Statement, the
Series 2017-1 Noteholder holders of 5% or more of the Outstanding Amount of Series 2017-1 Notes shall be entitled to demand in accordance with
Section 12.4 of the Indenture that the Indenture Trustee conduct a vote of all Series 2017-1 Noteholders and Series 2017-1 Note Owners to
determine whether to cause the Asset Representations Reviewer to conduct an Asset Representations Review; provided that for the purpose of determining the holders of the Outstanding Amount of the Series
2017-1 Notes, any Notes held by Ally Bank, Ally Financial or any of their Affiliates shall not be included in such calculation. 

(b)    Upon the direction of the requisite Series 2017-1 Noteholders or Series 2017-1 Note Owners set forth in Section 4.17(a), the Indenture Trustee shall cause the Note Depository to conduct a vote of all Series 2017-1 Noteholders. The Indenture
Trustee shall provide to the Servicer the voting instructions and procedures applicable to the Series 2017-1 Noteholders to be included in the Monthly Statement related to the monthly period in which the
Series 2017-1 Noteholders demand that a vote be conducted. Each Series 2017-1 Noteholder that elects to vote shall vote whether or not the Asset Representations Reviewer
should be directed to conduct an Asset Representations Review. The Indenture Trustee will notify the Series 2017-1 Noteholders and Series 2017-1 Note Owners by posting a
notice to vote on its website for at least 150 days after the filing of the Monthly Statement indicating that the Downgrade Trigger has been met or exceeded, and the Series 2017-1 Noteholders and Series 2017-1 Note Owners shall be permitted to vote for at least 150 days after such filing. 

(c)    In the event that a Series 2017-1 Note Owner exercises its right to vote
such Series 2017-1 Note Owner’s beneficial interest, the Indenture Trustee shall verify that each such Series 2017-1 Note Owner is a Verified Note Owner and shall
provide such evidence to the Issuing Entity. The Note Depository shall provide to the Series 2017-1 Note Owners the voting instructions and procedures applicable to the Series
2017-1 Note Owners. 
 (d)    If holders of a majority of the Series 2017-1 Notes by Outstanding Amount voting pursuant to Section 4.17(b) vote to cause the Asset Representations Reviewer to conduct an Asset Representations Review, the Indenture Trustee shall provide a notice
to the Administrator 

  
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on behalf of the Issuing Entity (the “Asset Representations Review Notice”), which shall promptly provide such Asset Representations Review Notice to the Depositor and the
Servicer. The Depositor shall promptly deliver to the Seller any Asset Representations Review Notice and the Servicer shall disclose on the Monthly Statement relating to the monthly period in which the Asset Representations Review commences that the
Asset Representations Review has been initiated. Each of the Depositor and the Issuing Entity agrees to cooperate with the Asset Representations Reviewer, the Servicer and the Seller with respect to any Asset Representations Review commenced in
accordance with this Section 4.17. 
 (e)    The Indenture Trustee shall cooperate with the
Asset Representations Reviewer in the event an Asset Representations Review is commenced pursuant to Section 4.17(d) and shall provide the Asset Representations Reviewer with any documents or other information reasonably requested by the
Asset Representations Reviewer in connection with the Asset Representations Review. In accordance with Section 4.3 of the Trust Sale and Servicing Agreement and Sections 3(b) and (c) of the Custodian Agreement, the Servicer and the
Custodian, respectively, shall provide the Asset Representations Reviewer (if an Asset Representations Review Notice has been delivered) access to the documentation regarding the Receivables pursuant to the Trust Sale and Servicing Agreement and the
Receivables Files and the related accounts, records and computer systems maintained by the Custodian pursuant to the Custodian Agreement and release to the Asset Representations Reviewer any Receivable (and its related Receivables File) to the Asset
Representations Reviewer to enable the Asset Representations Reviewer to perform its obligations under the Asset Representations Review Agreement. 

(f)    If the Asset Representations Reviewer gives notice of its intent to resign or the Administrator on behalf of the
Issuing Entity terminates the Asset Representations Reviewer pursuant to the terms of the Asset Representations Review Agreement or if a vacancy exists in the office of the Asset Representations Reviewer for any reason (the Asset Representations
Reviewer in such event being referred to herein as the retiring Asset Representations Reviewer), the Administrator on behalf of the Issuing Entity shall promptly appoint and designate a successor Asset Representations Reviewer; provided,
however that such successor Asset Representations Review shall not be an Affiliate of any of the Seller, the Administrator, the Depositor, the Issuing Entity, the Servicer, any Third Party Due Diligence Provider, the Owner Trustee or the
Indenture Trustee. The Administrator on behalf of the Issuing Entity shall deliver a written notice to the Depositor, the Servicer and the Seller of the acceptance of a successor Asset Representations Reviewer. In the event that an Asset
Representations Review has commenced at the time the retiring Asset Representations Reviewer resigns or a vacancy exists, the Administrator on behalf of the Issuing Entity shall cause the retiring Asset Representations Reviewer to provide the
successor Asset Representations Reviewer with any information relating to the Asset Representations Review. 

(g)    The Seller shall (i) at all times while any Series 2017-1 Notes that
have been registered under the Securities Act or the securities laws of any other jurisdiction remain Outstanding, ensure that an Asset Representations Reviewer is appointed, (ii) cooperate with the Asset Representations Reviewer in creating
procedures for a review of the representations and warranties set forth in Section 4.01(a) of the Pooling and Servicing Agreement, (iii) provide the Asset Representations Reviewer with the Asset Representations Review Notice and
(iv) provide the Asset Representations Reviewer with reasonable access to the Seller’s offices and information databases upon the initiation of an Asset Representations Review. 

  
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 (h)    Upon receipt of a final report from the Asset Representations
Reviewer, the Seller and the Depositor shall review any Accounts and Receivables with respect to which the Asset Representations Reviewer has determined that a breach of a representation or warranty set forth in Section 4.01(a) of the Pooling and
Servicing Agreement has occurred and determine whether a repurchase of such Receivables is required pursuant to Section 4.01(c) of the Pooling and Servicing Agreement or Section 2.5 of the Trust Sale and Servicing Agreement. The Series 2017-1 Noteholders shall have the right to request from the Sponsor a copy of the final report prepared by the Asset Representations Reviewer. 

SECTION 4.18    Unfulfilled Repurchase Demands; Dispute Resolution. 

(a)    Unfulfilled Repurchase Demands. If the Indenture Trustee receives a written request (which request from the
Owner Trustee, the Indenture Trustee, any Series 2017-1 Note Owner or any Series 2017-1 Noteholder shall set forth (i) each Account and Receivable that is subject
to a Repurchase Request, (ii) the specific representation or warranty contained in Section 4.01(c) of the Pooling and Servicing Agreement it alleges was breached, (iii) the loss that occurred as a result of such breach and (iv) the
material and adverse effect of such breach on the interests of the Issuing Entity and, with respect to a request from a Series 2017-1 Noteholder or a Series 2017-1 Note
Owner, such request shall initially be provided to the Indenture Trustee to repurchase a Receivable pursuant to Section 2.5 of the Trust Sale and Servicing Agreement) (each, a “Repurchase Request”), and the Depositor or the
Seller does not repurchase the Receivables related to such Repurchase Request within 180 days of the receipt of such Repurchase Request, the Indenture Trustee shall deliver a Repurchase Response Notice to the related
2017-1 Noteholder or 2017-1 Note Owner. 

(b)    In the event the Depositor fails to repurchase a Receivable pursuant to Section 2.5 of the Trust Sale and
Servicing Agreement, or fails to cause the Seller to repurchase a Receivable pursuant to Section 4.01(c) of the Pooling and Servicing Agreement, within 180 days of the delivery of the Repurchase Request and such Repurchase Request has not been
resolved, the alleged breach has not otherwise been cured or the related Receivable has not otherwise been repurchased, the party that provided the Repurchase Request pursuant to Section 2.5 of the Trust Sale and Servicing Agreement (the
“Requesting Party”) may refer the Repurchase Request to an ADR Proceeding, at its discretion, pursuant to Section 4.18(c) by filing in accordance with AAA Rules and providing a notice to the Sponsor and the Depositor at
securitization@ally.com, in the case of the Series 2017-1 Noteholders, or by contacting the Indenture Trustee in accordance with Section 12.4 of the Indenture, in the case of the
Series 2017-1 Note Owners; provided, however, that any such referral of a Repurchase Request shall be made (i) within the applicable statute of limitations period and (ii) within 30
days of the delivery of the Repurchase Response Notice indicating that the related Repurchase Request has not been resolved; provided further that in the event an Asset Representations Review has been completed and the Asset
Representations Reviewer has determined that the representations and warranties related to an Account or a Receivable with respect to which a Repurchase Request has been made have been satisfied, the Requesting Party may not refer such Repurchase
Request to an ADR Proceeding. 

  
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 (c)    Dispute Resolution. 

(i)    General. If a Requesting Party provides notice of a referral of a Repurchase Request to an
ADR Proceeding, the Depositor shall respond to such notice within 30 days and submit to the ADR Proceeding requested. Each ADR Proceeding shall take place in New York, New York. 

(ii)    Confidentiality. Each ADR Proceeding, including the occurrence of such ADR Proceeding, the
nature and amount of any relief sought or granted and the results of any discovery taken in such ADR Proceeding, shall be kept strictly confidential by each of the Depositor and the Requesting Party, except as necessary in connection with a judicial
challenge to or enforcement of an award, or as otherwise required by law. 
 (iii)    Mediation.
If the Requesting Party chooses to refer the Repurchase Request to Mediation, the following provisions shall apply: 

(1)    The Depositor and the Requesting Party shall agree on a neutral mediator within 15 days of the acknowledgement of
the notice set forth in Section 4.18(c)(i); provided, that the mediator shall satisfy each of the following conditions: 

a.    the mediator shall be selected from a list of neutral mediators maintained by the AAA; 

b.    the mediator shall be an attorney admitted to practice law in the State of New York; and 

c.    the mediator shall be an attorney specializing in commercial litigation with at least 15 years of
experience; 
 provided, however, that if the Depositor and the Requesting Party do not agree on a mediator, a mediator shall be
selected by the AAA in accordance with AAA Rules for appointment of a mediator. 
 (2)    The Mediation shall commence no
later than 15 Business Days following selection of a mediator, and shall conclude within 30 days of the start of Mediation. 

(3)    The Depositor and the Requesting Party shall mutually agree upon the allocation of the expenses incurred in
connection with the Mediation; provided, however, that if the Depositor and the Requesting Party do not agree on the allocation of expenses, the expenses shall be determined in accordance with AAA Rules. 

(4)    If the Depositor and the Requesting Party fail to agree at the completion of the Mediation, the Requesting Party may
submit the Repurchase Request to Arbitration in accordance with Section 4.18(c)(iv) or may seek adjudication of the Repurchase Request in court. 

  
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 (iv)    Arbitration. If the Requesting Party refers
the Repurchase Request to Arbitration, the following provisions shall apply: 
 (1)    The Depositor shall provide a
notice of the commencement of such Arbitration and instructions for other Series 2017-1 Noteholders or Series 2017-1 Note Owners to participate in such Arbitration to
the Servicer for inclusion in the Monthly Statement. 
 (2)    The Repurchase Request shall be referred to a panel of
three arbitrators (the “Panel”) to be selected as follows: 
 a.    the Requesting Party shall appoint
one arbitrator to the panel within 5 Business Days of providing notice of its selection of Arbitration; 
 b.    the
Depositor shall appoint one arbitrator to the panel within 5 Business Days of the Requesting Party providing notice of its selection of Arbitration; and 

c.    the arbitrators selected pursuant to clauses a and b will select a third arbitrator within 5 Business
Days of the appointment of the second arbitrator; 
 provided, that each arbitrator shall satisfy each of the following conditions:
(i) the arbitrator shall be selected from a list of neutral arbitrators maintained by the AAA, (ii) the arbitrator shall be an attorney admitted to practice law in the State of New York; and (iii) the arbitrator shall be an attorney
specializing in commercial litigation with at least 15 years of experience. 
 (3)    The arbitrator will have the
ability to to schedule, hear and determine any motions, including discovery motions, according to New York law, and will do so at the motion of any party. The following procedural time limits shall apply to the Arbitration: 

a.    discovery shall be completed within 30 days of appointment of the third arbitrator; 

b.    the evidentiary hearing on the merits shall commence no later than 60 days following the appointment of the third
arbitrator, and shall proceed for no more than 10 consecutive business days with equal time allotted to each side for the presentation of direct evidence and cross examination; and 

c.    the Panel shall render its decision on the Repurchase Request within 90 days of the selection of the panel; 

provided, that in each case, the Panel may modify such time limits if, based on the facts and circumstances of the particular dispute,
good cause exists, there is an unavoidable delay or with the consent of all of the parties. 

  
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 (4)    The following limitations on the Arbitration proceeding shall apply:

 a.    each party shall be limited to two witness depositions not to exceed five hours; 

b.    each party shall be limited to two interrogatories; 

c.    each party shall be limited to one document request; and 

d.    each party shall be limited to one request for admissions. 

provided, that in each case, the Panel may modify such time limits if, based on the facts and circumstances of the particular dispute,
good cause exists, there is an unavoidable delay or with the consent of all of the parties. 
 (5)    Any briefs
submitted in the Arbitration shall be no more than 10 pages each and shall be limited to (i) initial statements of the case, (ii) discovery motions and (iii) a pre-hearing brief. 

(6)    For Receivables on which the related Dealer has made at least 12 monthly payments, the burden of proof for an
alleged breach of representations and warranties shall be clear and convincing evidence of a breach and for all other Receivables, the burden of proof for an alleged breach shall be a preponderance of the evidence. 

(7)    The Panel shall decide the Repurchase Request in accordance with this Agreement, including choice-of-law provisions, and the Pooling and Servicing Agreement, including the provisions set forth in Section 4.01(c) thereof. 

(8)    The Panel shall not be permitted to award punitive or special damages. 

(9)    The Panel shall determine the allocation of the expenses of the Arbitration between the Depositor and the Requesting
Party. 
 (10)    Once the Panel makes a decision with respect to a Receivable, such decision shall be binding on the
Interested Parties as to such Receivable, and such Receivable may not be subject to an additional ADR Proceeding or court adjudication. 

(11)    Judgment on the Panel’s award will be entered in any court having jurisdiction. 

(d)    The Seller hereby agrees to cooperate with the Interested Parties in any ADR Proceeding commenced pursuant to this
Section 4.18. The Purchaser hereby agrees to provide the Seller with the opportunity to exercise any rights of the Purchaser pursuant to this Section 4.18 with respect to an ADR Proceeding to the
extent a dispute relates to the representations and warranties of the Seller contained in Section 4.01(a) of the Pooling and Servicing Agreement. 

  
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 ARTICLE V 

DELIVERY OF SERIES 2017-1 NOTES; 

DISTRIBUTIONS; REPORTS TO SERIES 2017-1 NOTEHOLDERS 

SECTION 5.01    Delivery and Payment for Series 2017-1 Notes. 

The Indenture Trustee shall authenticate the Series 2017-1 Notes in accordance with
Section 2.2 of the Indenture. The Indenture Trustee shall deliver the Series 2017-1 Notes to the Issuing Entity when so authenticated. 

SECTION 5.02    Distributions. 

(a)    On each Distribution Date, based solely on the information contained in the Monthly Statement, the Indenture Trustee
shall distribute to each Class A Noteholder, Class B Noteholder, Class C Noteholder and Class D Noteholder of record on the related Record Date (other than as provided in Section 11.2 of the Indenture)
such Class A Noteholder’s, Class B Noteholder’s, Class C Noteholder’s and Class D Noteholder’s, respectively, pro rata share of the amounts allocated and available in the Note Distribution Account and
the Note Defeasance Account on such Distribution Date to pay interest on the Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes, respectively, pursuant to this Indenture Supplement. 

(b)    On the Series 2017-1 Expected Maturity Date and on each Distribution Date
with respect to the Early Amortization Period, based solely on the information contained in the Monthly Statement, from the amounts allocated during the related or any prior Collection Period or, with respect to Additional Available Series Principal
Collections, on such or any prior Distribution Date and available in the Note Distribution Account and the Note Defeasance Account on such Distribution Date to pay principal of the Series 2017-1 Notes pursuant
to this Indenture Supplement, the Indenture Trustee shall distribute: 
 (i)    first, pro rata to each
Class A Noteholder of record on the related Record Date (other than as provided in Section 11.2 of the Indenture), principal of the Class A Notes until the Class A Notes have been paid in full, 

(ii)    second, pro rata to each Class B Noteholder of record on the related Record Date (other than
as provided in Section 11.2 of the Indenture), principal of the Class B Notes until the Class B Notes have been paid in full, provided, however, that in no event shall any amount be paid as principal
with respect to the Class B Notes unless the Class A Principal Balance is zero, 

(iii)    third, pro rata to each Class C Noteholder of record on the related Record Date (other than
as provided in Section 11.2 of the Indenture), principal of the Class C Notes until the Class C Notes have been paid in full, provided, however, that in no event shall any amount be paid as principal
with respect to the Class C Notes unless the Class A Principal Balance and the Class B Principal Balance are zero, 

  
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 (iv)    fourth, pro rata to each Class D Noteholder of
record on the related Record Date (other than as provided in Section 11.2 of the Indenture), principal of the Class D Notes until the Class D Notes have been paid in full, provided, however, that in
no event shall any amount be paid as principal with respect to the Class D Notes unless the Class A Principal Balance, the Class B Principal Balance and the Class C Principal Balance are zero, and 

(v)    fifth, pro rata to each Class E Noteholder of record on the related Record Date (other than as
provided in Section 11.2 of the Indenture), principal of the Class E Notes until the Class E Notes have been paid in full, provided, however, that in no event shall any amount be paid as principal
with respect to the Class E Notes unless the Class A Principal Balance, the Class B Principal Balance, the Class C Principal Balance and the Class D Principal Balance are zero. 

(c)    The distributions to be made pursuant to this Section are subject to the provisions of Sections 2.5 of the
Trust Sale and Servicing Agreement, Section 11.2 of the Indenture and Section 7.01 of this Indenture Supplement. 

(d)    Except as provided in Section 11.2 of the Indenture with respect to a final distribution,
distributions to Series 2017-1 Noteholders hereunder shall be made by (i) wire transfer (to the account specified by the applicable Noteholder) or check mailed first class, postage prepaid to each Series 2017-1 Noteholder (at such Noteholder’s address as it appears in the Note Register), except that with respect to any Series 2017-1 Notes registered in the name of the
nominee of a Clearing Agency, such distribution shall be made in immediately available funds and (ii) without presentation or surrender of any Series 2017-1 Note or the making of any notation thereon.

 (e)    The amount of all distributions and deposits that are required to be made by the Indenture Trustee on each
Distribution Date pursuant to this Section 5.02 shall be set forth in written instructions (which may be in the form of the Monthly Statement) provided by the Servicer to the Indenture Trustee no later than the second Business Day prior
to the related Distribution Date. 
 (f)    Except with respect to the reimbursement of investment losses pursuant to
Section 4.15(b), the Indenture Trustee shall have no duty to make any deposits or distributions or any other payments under this Indenture Supplement unless and until it has sufficient cash to make such payments and it has received written
instructions from the Servicer as to such deposits, distributions and payments. 
 SECTION 5.03    Reports and
Statements to Series 2017-1 Noteholders. 
 (a)    The Indenture Trustee will
make available each month to each Series 2017-1 Noteholder the statements referred to in Section 5.03(b) below (and certain other documents, reports and information regarding the Receivables provided by
the Servicer form time to time) via the Indenture Trustee’s website, with the use of a password provided by the Indenture Trustee. The Indenture Trustee’s website will be located at www.CTSLink.com or at such other

  
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address as the Indenture Trustee shall notify the Series 2017-1 Noteholders from time to time. For assistance with regard to this service, the Series 2017-1 Noteholders can call the Indenture Trustee’s Corporate Trust Office at (866) 846-4526. The Indenture Trustee shall have the right to change the way the statements
referred to in Section 5.03(b) below are distributed in order to make such distribution more convenient and/or more accessible to the parties entitled to receive such statements so long as such statements are only provided to the then current
Series 2017-1 Noteholders. The Indenture Trustee shall provide notification of any such change to all parties entitled to receive such statements in the manner described in
Section 12.4, Section 12.5 or Section 12.6 of the Indenture, as appropriate. 

(b)    No later than the second Business Day preceding each Distribution Date, the Servicer shall deliver to the Owner
Trustee, the Indenture Trustee and, if Ally Financial or an Affiliate of Ally Financial is the Servicer, each Rating Agency (or, if Ally Financial or an Affiliate of Ally Financial is not the Servicer, to the Depositor, who shall promptly provide
such Monthly Statement to each Rating Agency) a statement substantially in the form of Exhibit B (the “Monthly Statement”) prepared by the Servicer; provided that the Servicer may amend the form of Exhibit B
from time to time. 
 (c)    A copy of each statement or certificate provided pursuant to Section 5.03(a) or
(b) may be obtained by any Series 2017-1 Noteholder by a request in writing to the Servicer. 

(d)    Within the prescribed period of time for tax reporting purposes after the end of each calendar year during the term
of this Indenture Supplement, the Indenture Trustee and the Administrator shall furnish (or cause to be furnished), to each Person who at any time during such calendar year shall have been a holder of record of Series
2017-1 Notes, and received any payment thereon, a statement containing such information as may be required by the Code and applicable Treasury Regulations to enable such Noteholder to prepare its federal
income tax returns. 
 SECTION 5.04    Other Information to be Provided by the Indenture Trustee and the Owner
Trustee. 
 (a)    The Indenture Trustee agrees to deliver on or before March 1 of each year, a report signed by
an authorized officer of the Indenture Trustee regarding the Indenture Trustee’s assessment of compliance with the servicing criteria specified on Exhibit C, including disclosure of any material instance of
non-compliance identified by the Indenture Trustee (provided, that to the extent the Indenture Trustee identifies any material instance of non-compliance, the
Indenture Trustee shall disclose on its report whether such material instance of non-compliance relates to the Receivables or the Series 2017-1 Notes and whether and to
what extent the Indenture Trustee has instituted steps to remediate such material instance of non-compliance), for the preceding calendar year relating to the Indenture Trusee’s servicing platform with
respect to asset-backed securities that are backed by assets of the same type as the Receivables and including the Receivables. The Indenture Trustee agrees to cooperate in good faith with any reasonable request by the Depositor for information
regarding the Indenture Trustee which is required in order to enable the Depositor to comply with the provisions of Items 1104(e) and 1121(c) of Regulation AB and Rule 15Ga-1 under the Exchange Act as it
relates to the Indenture Trustee or to the Indenture Trustee’s obligations under this Indenture Supplement and the 

  
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Indenture; provided that with respect to Rule 15Ga-1, and Items 1121(c) and 1104(e), the Indenture Trustee shall not be deemed a
“securitizer” or an “issuer” under Regulation AB or under the Exchange Act. 
 (b)    The Indenture
Trustee shall provide the Depositor with notification, as soon as practicable and in any event within five Business Days, of (i) all demands communicated to the Indenture Trustee for the repurchase or replacement of any Receivable pursuant to
Section 3.04(c), 4.01(c) or 4.02(c) of the Pooling and Servicing Agreement or Section 2.5 or 3.1(c) of the Trust Sale and Servicing Agreement, as applicable, and (ii) all requests by
Verified Note Owners to communicate with other Series 2017-1 Noteholders regarding the exercise of remedies pursuant to the Basic Documents. 

(c)    In addition to the information required by Section 13.4(c) of the Indenture, the Indenture Trustee shall also
provide such a description of any affiliation between the Indenture Trustee and the Asset Representations Reviewer. 

(d)    The Owner Trustee agrees to cooperate in good faith with any reasonable request by the Depositor for information
regarding the Owner Trustee which is required in order to enable the Depositor to comply with the provisions of Items 1104(e) and 1121(c) of Regulation AB and Rule 15Ga-1 under the Exchange Act as it relates
to the Owner Trustee or to the Owner Trustee’s obligations under the Trust Agreement; provided that with respect to Rule 15Ga-1, and Items 1121(c) and 1104(e), the Owner Trustee shall not be deemed
a “securitizer” or an “issuer” under Regulation AB or under the Exchange Act; and provided further, that any such request shall be limited to information reasonably available to the Responsible Officers of the Owner Trustee. 

(e)    The Owner Trustee shall provide the Depositor with notification, as soon as practicable and in any event within
five Business Days, of all demands communicated to a Responsible Officer of the Owner Trustee for the repurchase or replacement of any Receivable pursuant to Section 3.04(c), 4.01(c) or 4.02(c) of the Pooling and Servicing
Agreement or Section 2.5 or 3.1(c) of the Trust Sale and Servicing Agreement, as applicable; provided that any such request shall be limited to information reasonably available to the Responsible Officers of the
Owner Trustee. 
 ARTICLE VI 

SERIES 2017-1 EARLY AMORTIZATION EVENTS AND SERIES 2017-1
EVENTS OF DEFAULT 
 SECTION 6.01    Series 2017-1 Early
Amortization Events. 
 If any one of the following events occurs with respect to the Series
2017-1 Notes: 
 (a)    failure on the part of the Depositor, the Servicer or
the Seller, as applicable, to duly observe or perform in any material respect any other covenants or agreements of the Depositor, the Servicer or the Seller, as the case may be, set forth in the Trust Sale and Servicing Agreement or the Pooling and
Servicing Agreement, which failure continues unremedied for a period of 60 days after the date on which written notice of such failure, requiring the same to be 

  
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remedied, shall have been given by the Indenture Trustee or the Owner Trustee to the Depositor, provided, however, that no Early Amortization Event shall be deemed to occur if such
failure results in the creation of Warranty Receivables or Administrative Receivables and such Warranty Receivables or Administrative Receivables are purchased by the Seller, the Depositor or the Servicer in accordance with the Basic Documents; 

(b)    any representation or warranty made by the Seller in the Pooling and Servicing Agreement or the Depositor in the
Trust Sale and Servicing Agreement or any information contained on the Schedule of Accounts, (i) shall prove to have been incorrect in any material respect when made or when delivered, and shall continue to be incorrect in any material respect
for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Depositor by the Indenture Trustee or the Owner Trustee (at the direction of the Certificateholders) and
(ii) as a result of such incorrectness the interests of the Noteholders are materially and adversely affected, provided, however, that no Early Amortization Event shall be deemed to occur if such failure results in the creation of
Warranty Receivables or Administrative Receivables and such Warranty Receivables or Administrative Receivables are purchased by the Seller, the Depositor or the Servicer in accordance with the Basic Documents; 

(c)    on any Distribution Date, the average of the Monthly Payment Rates for the three preceding Collection Periods is
less than 17.50%; 
 (d)    the unpaid principal amount of Outstanding Series
2017-1 Notes (together with accrued and unpaid interest thereon) shall have become immediately due and payable as a result of an Event of Default pursuant to Section 6.03 of this
Indenture Supplement; 
 (e)    an Insolvency Event with respect to the Seller, the Depositor or the Servicer (or Ally
Financial, if Ally Financial is not the Servicer); 
 (f)    on any Distribution Date, the amount on deposit in the
Excess Funding Account exceeds 30.0% of the sum of the Net Invested Amounts of all outstanding Series (including Series 2017-1), being determined as the average over the six Collection Periods immediately
preceding the Distribution Date, or, if shorter, the period from the initial issuance date through and including the last day of the immediately preceding Collection Period); 

(g)    the Issuing Entity or the Depositor is required to register under the Investment Company Act; 

(h)    a Liquidation Event occurs with respect to a Significant Manufacturer or with respect to a Majority of
Manufacturers; 
 (i)    on any Distribution Date, the Required Class E Invested Amount for such Distribution Date
exceeds the Class E Invested Amount; 
 (j)    a failure by the Depositor to transfer to the Issuing Entity
Receivables arising in connection with Additional Accounts within 15 Business Days after the date on which the Depositor is required to convey such Receivables pursuant to Section 2.7(a) of the Trust Sale and Servicing Agreement; 

  
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 (k)    on any three consecutive Distribution Dates, the amount on deposit in
the Reserve Fund is less than the Reserve Fund Required Amount; 
 (l)    on any Distribution Date, the Reserve Fund
Required Amount for such Distribution Date exceeds the amount on deposit in the Reserve Fund by more than the Reserve Fund Trigger Amount; or 

(m)    failure on the part of the Depositor, the Servicer or the Seller, as applicable, to pay (or set aside for payment)
all amounts required to be paid as principal on any Series 2017-1 Notes on the Series 2017-1 Expected Maturity Date; 

then, (i) in the case of any event described in clauses (a) or (b) above, after any applicable grace period, either the
Indenture Trustee or the Holders of at least a majority of the Outstanding Amount of Series 2017-1 Notes by notice then given in writing to the Depositor and the Servicer (and to the Indenture Trustee if given
by the Series 2017-1 Noteholders) may declare that an Early Amortization Event with respect to the Series 2017-1 Notes (a “Series
2017-1 Early Amortization Event”) has occurred as of the date of such notice, and (ii) in the case of any event described in clauses (c) through (m) above, immediately and
without any notice or other action on the part of the Indenture Trustee or the Series 2017-1 Noteholders, a Series 2017-1 Early Amortization Event shall be deemed to
have occurred. 
 SECTION 6.02    Series 2017-1 Events of
Default. 
 For the purposes of this Indenture Supplement, “Event of Default” wherever used herein, means any one
of the following events: 
 (a)    failure to pay any interest on any Investor Note as and when the same becomes due and
payable, and such default shall continue unremedied for a period of thirty-five (35) days; or 

(b)    except as set forth in Section 6.02(c) below, failure to pay any instalment of the
principal of any Investor Note as and when the same becomes due and payable, and such default continues unremedied for a period of thirty (30) days after there shall have been given, by registered or certified mail, written notice thereof to
the Issuing Entity and the Servicer by the Indenture Trustee or to the Issuing Entity, the Servicer and the Indenture Trustee by the Holders of not less than 25% of the Outstanding Amount of such Notes, a written notice specifying such default and
demanding that it be remedied and stating that such notice is a “Notice of Default” hereunder; or 

(c)    failure to pay in full the Outstanding Amount attributable to the Series
2017-1 Notes on or prior to the Series 2017-1 Legal Maturity Date for such Notes; or 

(d)    default in the observance or performance in any material respect of any covenant or agreement of the Issuing Entity
made in the Indenture or this Indenture Supplement in respect of the Series 2017-1 Notes (other than a covenant or agreement in respect of the Series 2017-1 Notes a
default in the observance or performance which is specifically dealt with elsewhere in this Section 6.02), which failure materially and adversely affects the rights of the Noteholders, 

  
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and such default shall continue or not be cured for a period of 30 days after there shall have been given, by registered or certified mail, to the Issuing Entity and the Servicer by the Indenture
Trustee or to the Issuing Entity, the Servicer and the Indenture Trustee by the Holders of at least 25% of the Outstanding Amount of the Series 2017-1 Notes, a written notice specifying such default and
requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or 

(e)    the filing of an order for relief by a court having jurisdiction in the premises in respect of the Issuing Entity
or any substantial part of the Trust Estate in an involuntary case under the Bankruptcy Code, and such order shall have continued undischarged or unstayed for a period of 90 days; or the filing of a decree or order by a court having jurisdiction in
the premises approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of the Issuing Entity under any other Insolvency Law, and such decree or order shall have continued undischarged or unstayed for a
period of 90 days; or the filing of a decree or order of a court having jurisdiction in the premises appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuing Entity or for any substantial part
of the Trust Estate, or ordering the winding-up or liquidation of the Issuing Entity’s affairs, and such decree or order shall have continued undischarged and unstayed for a period of 90 consecutive days;
or 
 (f)    the commencement by the Issuing Entity of a voluntary case under the Bankruptcy Code; or the filing of a
petition or answer or consent by the Issuing Entity seeking reorganization, arrangement, adjustment or composition under any other Insolvency Law, or consent to the filing of any such petition, answer or consent; or the consent by the Issuing Entity
to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuing Entity or for any substantial part of the Trust Estate, or the making by the Issuing Entity of an
assignment for the benefit of creditors, or the admission in writing of its inability to pay its debts generally as such debts become due. 

The Issuing Entity shall deliver to the Indenture Trustee within five Business Days after learning of the occurrence thereof, written notice
in the form of an Officer’s Certificate of any event which with the giving of notice and the lapse of time would become an Event of Default under Section 6.02(d), its status and what action the Issuing Entity is taking
or proposes to take with respect thereto. 
 SECTION 6.03    Acceleration of Maturity; Rescission and
Annulment. 
 (a)    If an Event of Default, other than an Event of Default as a result of an
Insolvency Event with respect to the Issuing Entity, should occur and is continuing, then the Indenture Trustee may, or shall, at the direction of the Holders of at least a majority of the Outstanding Amount of the Series 2017-1 Notes, declare all the Series 2017-1 Notes to be immediately due and payable, by a notice in writing to the Issuing Entity and the Servicer (and to the Indenture
Trustee if declared by such Noteholders) setting forth the Event or Events of Default. If an Insolvency Event of Default occurs and is continuing, then the Series 2017-1 Notes shall immediately and without
further action become due and payable, and the Indenture Trustee shall give a notice to such effect in writing to the Issuing Entity (although failure to give such notice shall not affect the immediate acceleration of maturity). Upon any such
declaration or automatic 

  
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occurrence, the Revolving Period or the Controlled Accumulation Period, as applicable, with respect to the Series 2017-1 Notes shall terminate, an Early
Amortization Period shall commence and the unpaid principal amount of such Series 2017-1 Notes, together with accrued and unpaid interest thereon through the date of acceleration, shall become immediately due
and payable. 
 (b)    At any time after such acceleration of maturity has occurred pursuant to Section 6.03(a)
and before a judgment or decree for payment of the money due has been obtained by the Indenture Trustee as provided in Article V of the Indenture, the Holders of at least a majority of the Outstanding Amount of the Series 2017-1 Notes, by written notice to the Issuing Entity, the Servicer and the Indenture Trustee, may rescind and annul such acceleration and its consequences with respect to the Series
2017-1 Notes. No such rescission and annulment shall extend to or affect any subsequent Event of Default or impair any right consequent thereto; and provided, further, that if the Indenture
Trustee shall have proceeded to enforce any right under the Indenture and such proceedings shall have been discontinued or abandoned because of such rescission and annulment or for any other reason, or shall have been determined adversely to the
Indenture Trustee, then and in every such case, the Indenture Trustee, the Issuing Entity and the Noteholders, as the case may be, shall be restored to their respective former positions and rights hereunder and under the Indenture, and all rights,
remedies and powers of the Indenture Trustee, the Issuing Entity and the Noteholders, as the case may be, shall continue as though no such proceedings had been commenced. 

(c)    If the Series 2017-1 Notes shall have been accelerated following an Event
of Default, the Indenture Trustee may exercise the remedies available to it as set forth in Article V of the Indenture. 

(d)    Any money or property collected by the Indenture Trustee pursuant to this Section 6.03
following the acceleration of the maturities of the Series 2017-1 Notes (so long as such acceleration has not been rescinded or annulled) shall be paid out or allocated in accordance with Section 5.4(b)
of the Indenture; provided, that following the payment of the amounts due to the Indenture Trustee and the Owner Trustee pursuant to Section 5.4(b)(i) of the Indenture, any money or property collected by the Indenture Trustee pursuant
to this Section 6.03 shall be used to pay any accrued and unpaid fees, expenses and indemnities owed to the Asset Representations Reviewer pursuant to the Asset Representations Review Agreement prior to the payments
specified in Section 5.4(b)(ii) of the Indenture. 
 ARTICLE VII 

REDEMPTION OF SERIES 2017-1 NOTES; SERIES LEGAL MATURITY; FINAL 

DISTRIBUTIONS 

SECTION 7.01    Optional Redemption of Series 2017-1 Notes. 

(a)    On any day occurring on or after the date on which the Note Principal Balance is reduced to 10% or less of the
Initial Note Principal Balance, the Servicer (if Ally Financial or an Affiliate of Ally Financial is the Servicer) shall have the option to purchase the Series 2017-1 Noteholders’ Collateral and thereby
cause a redemption of the Series 2017-1 Notes, at a purchase price equal to (i) if such day is a Distribution Date, the Reassignment Amount for such Distribution Date or (ii) if such day is not a
Distribution Date, the Reassignment Amount for the Distribution Date following such day. 

  
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 (b)    Upon any such election, the Servicer shall give the Depositor, the
Indenture Trustee, the Issuing Entity and, if applicable, other holders of the Certificate Interest at least 30 days prior written notice of the date on which the Servicer intends to exercise such optional redemption as well as the Reassignment
Amount and the Indenture Trustee shall provide notice to Holders of the Series 2017-1 Notes that it has received such notice from the Servicer. No later than 11:00 a.m. (New York City time) on such day the
Servicer shall deposit the Reassignment Amount into the Collection Account or, at the direction of the Depositor or the election of the Servicer in an amount not to exceed the interest and principal to be paid with respect to the Series 2017-1 Notes, the Note Defeasance Account, in immediately available funds. Such redemption option is subject to payment in full of the Reassignment Amount. Following such deposit into the Collection Amount or the
Note Defeasance Account, as applicable, in accordance with the foregoing, the Invested Amount of the Series 2017-1 Notes shall be deemed reduced to zero and the Series
2017-1 Noteholders shall be deemed to have no further interest in the Receivables. The Reassignment Amount shall be distributed as set forth in Section 7.02. 

SECTION 7.02    Series Legal Maturity. 

(a)    The amount to be paid by the Depositor with respect to Series 2017-1 in
connection with a reassignment of the Noteholders’ Collateral pursuant to Section 2.5 of the Trust Sale and Servicing Agreement shall be the Reassignment Amount for the first Distribution Date following the Collection
Period in which the reassignment obligation arises under the Trust Sale and Servicing Agreement. With respect to the Reassignment Amount deposited into the Collection Account or the Note Defeasance Account, as applicable, pursuant to
Section 2.5 of the Trust Sale and Servicing Agreement or pursuant to Section 7.01 of this Indenture Supplement or the proceeds from any Foreclosure Remedy pursuant to
Section 5.4 of the Indenture, the Indenture Trustee shall, in accordance with the written direction of the Servicer, no later than 11:00 a.m. (New York City time) on the related Distribution Date, make deposits or
distributions of the following amounts (in the priority set forth below and, in each case after giving effect to any deposits and distributions otherwise to be made on such date) in immediately available funds first, from amounts on deposit in the
Note Defeasance Account and, to the extent the amounts on deposit in the Note Defeasance Account are insufficient to make such allocations, second, from available funds on deposit in the Collection Account, to make the following distributions or
deposits in the following priority: 
 (i)    (A) the Class A Note Principal Balance on such
Distribution Date shall be distributed to the Indenture Trustee for payment to the Class A Noteholders and (B) an amount equal to the sum of (1) the Class A Monthly Interest for such Distribution Date and (2) any
Class A Monthly Interest previously due but not paid to the Class A Noteholders on prior Distribution Dates, shall be distributed to the Indenture Trustee for payment to the Class A Noteholders on such Distribution Date; 

  
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 (ii)    (A) the Class B Note Principal Balance on such
Distribution Date shall be distributed to the Indenture Trustee for payment to the Class B Noteholders and (B) an amount equal to the sum of (1) the Class B Monthly Interest for such Distribution Date and (2) any
Class B Monthly Interest previously due but not paid to the Class B Noteholders on prior Distribution Dates, shall be distributed to the Indenture Trustee for payment to the Class B Noteholders on such Distribution Date; 

(iii)    (A) the Class C Note Principal Balance on such Distribution Date shall be distributed to the
Indenture Trustee for payment to the Class C Noteholders and (B) an amount equal to the sum of (1) the Class C Monthly Interest for such Distribution Date and (2) any Class C Monthly Interest previously due but not paid
to the Class C Noteholders on prior Distribution Dates, shall be distributed to the Indenture Trustee for payment to the Class C Noteholders on such Distribution Date; 

(iv)    (A) the Class D Note Principal Balance on such Distribution Date shall be distributed to the
Indenture Trustee for payment to the Class D Noteholders and (B) an amount equal to the sum of (1) the Class D Monthly Interest for such Distribution Date and (2) any Class D Monthly Interest previously due but not paid
to the Class D Noteholders on prior Distribution Dates, shall be distributed to the Indenture Trustee for payment to the Class D Noteholders on such Distribution Date; and 

(v)    the Class E Note Principal Balance on such Distribution Date shall be distributed to the
Indenture Trustee for payment to the Class E Noteholders on such Distribution Date. 
 (b)    Notwithstanding
anything to the contrary in this Indenture Supplement, the Indenture or the Trust Sale and Servicing Agreement, (i) all amounts distributed to the Indenture Trustee pursuant to Section 7.02(a) for payment to the Series 2017-1 Noteholders shall be deemed distributed in full to the Series 2017-1 Noteholders on the date on which such funds are distributed to the Indenture Trustee pursuant to
this Section and shall be deemed to be a final distribution pursuant to Section 11.2 of the Indenture and (ii) in the event that the amounts available for final distribution to the Series
2017-1 Noteholders and to the Noteholders of any other Series on any Distribution Date are less than the full amount required to be so distributed, the available amounts shall be allocated to each Series based
on the respective amounts required to be distributed to each such Series (including Series 2017-1) on such Distribution Date. 

ARTICLE VIII 

MISCELLANEOUS PROVISIONS 

SECTION 8.01    Ratification of Agreement. 

As supplemented by this Indenture Supplement, the Indenture is in all respects ratified and confirmed and the Indenture as so supplemented by
this Indenture Supplement is to be read, taken and construed as one and the same instrument. 

  
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 SECTION 8.02    Form of Delivery of Series 2017-1 Notes. 
 The Series 2017-1 Notes shall be delivered as
Registered Notes as provided in Section 2.2 of the Indenture. 

SECTION 8.03    Counterparts. 

This Indenture Supplement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all
counterparts shall together constitute one and the same instrument. 
 SECTION 8.04    Governing Law. 

THIS INDENTURE SUPPLEMENT AND EACH SERIES 2017-1 NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO THE CONFLICT OF LAW PROVISIONS THEREOF OR OF ANY OTHER JURISDICTION OTHER THAN SECTION 5-1401 AND SECTION
5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

SECTION 8.05    Effect of Headings and Table of Contents. 

The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 

SECTION 8.06    Notices. 

(a)    If Standard & Poor’s is not a Rating Agency, the Issuing Entity (or the Servicer or Administrator on
its behalf) shall deliver all notices, requests, consents or other communications delivered to the Rating Agencies hereunder to Standard & Poor’s concurrently with the delivery thereof to the Rating Agencies. 

(b)    All notices, requests, reports, consents or other communications deliverable to the Rating Agencies hereunder or
under any other Basic Document by the Owner Trustee, the Issuing Entity or the Indenture Trustee shall instead be delivered to the Depositor, which shall promptly deliver such document to the Rating Agencies (which may be delivered by posting such
document to the website maintained by the Depositor for notifications to nationally recognized statistical rating organizations). 

SECTION 8.07    Submission to Jurisdiction; Waiver of Jury Trial. Each of the parties hereto hereby
irrevocably and unconditionally: 
 (a)    submits for itself and its property in any legal action relating to the
Indenture, this Indenture Supplement or any other documents executed and delivered in connection herewith, or for recognition and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the State of New
York, the courts of the United States of America for the Southern District of New York and appellate courts from any thereof; 

  
 56 

 (b)    agrees that any such action may be brought in such courts and waives
any objection that it may now or hereafter have to the venue of such action in any such court or that such action was brought in an inconvenient court and agrees not to plead or claim the same; and 

(c)    waives, to the fullest extent permitted by law, any and all right to trial by jury in any legal proceeding arising
out of or relating to the Indenture, this Indenture Supplement or the transactions contemplated hereby. 

SECTION 8.08    U.S.A. PATRIOT Act. 

The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. PATRIOT Act, the Indenture Trustee is required to obtain,
verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Indenture Trustee. The parties to this Indenture Supplement agree that they shall provide the Indenture Trustee
with such information as they may request in order for them to satisfy the requirements of the U.S.A. PATRIOT Act. 

SECTION 8.09    Compliance with Credit Risk Retention Rules. 

The Sponsor or a Wholly-Owned Affiliate of the Sponsor shall, to the extent required, retain an economic interest in the credit risk of the
securitized assets in accordance in all material respects with Regulation RR, including the restrictions on sale, pledging and hedging set forth therein. 

SECTION 8.10    Limitation of Liability of Owner Trustee. 

It is expressly understood that (i) this Indenture Supplement and each Series 2017-1 Note has been
executed by U.S. Bank Trust National Association, not in its individual capacity but solely as Owner Trustee on behalf of the Issuing Entity, (ii) each of the representations, undertakings and agreements herein or therein made on the part of
the Issuing Entity is made and intended not as a personal representation, undertaking or agreement by U.S. Bank Trust National Association but is made and intended for the purpose of binding only the Issuing Entity, (iii) nothing herein
contained shall be construed as creating any liability on U.S. Bank Trust National Association, individually or personally, to perform any covenant of the Issuing Entity either expressed or implied contained herein, all such liability, if any, being
expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto, and (iv) under no circumstances will U.S. Bank Trust National Association be personally liable for the payment of any obligation,
indebtedness or expenses of the Issuing Entity or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuing Entity under this Indenture Supplement or any Series 2017-1 Note. In addition, in no event shall the Owner Trustee have any responsibility to monitor compliance with or enforce compliance with the Regulation RR or other rules or regulations relating to risk retention.
The Owner 

  
 57 

 
Trustee shall not be charged with knowledge of such rules, nor shall it be liable to any noteholder, certificateholder, the Depositor, the Servicer or other person for violation of such rules now
or hereinafter in effect. The Owner Trustee shall not be required to monitor, initiate or conduct any proceedings to enforce the obligations of the Trust, the Depositor, the Servicer or any other person with respect to any breach of representation
or warranty under any Basic Document and the Owner Trustee shall not have any duty to conduct any investigation as to the occurrence of any condition requiring the repurchase or substitution of any Receivable by any person pursuant to any Basic
Document. For the avoidance of doubt, the Owner Trustee shall not be responsible to evaluate the qualifications of any mediator or arbitrator, or be personally liable for paying the fees or expenses of any mediation or arbitration initiated by a
Requesting Party, and under no circumstances shall the Owner Trustee be personally liable for any expenses allocated to the Requesting Party in any dispute resolution proceeding. 

  
 58 

 IN WITNESS WHEREOF, the Issuing Entity and the Indenture Trustee have caused this Indenture Supplement to be duly
executed by their respective duly authorized officers, all as of the day and year first above written. 
  

			
	ALLY MASTER OWNER TRUST, as Issuing Entity
	
	By U.S. Bank Trust National Association, not in its individual capacity, but solely as Owner Trustee
		
	By	 	  

	Name:	 	
	Title:	 	
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity, but solely as Indenture Trustee and Securities Intermediary
		
	By	 	  

	Name:	 	
	Title:	 	

  

			
	Acknowledged and Agreed, solely for purposes of Sections 5.04(d) and (e)
	
	U.S. BANK TRUST NATIONAL ASSOCIATION, not in its individual capacity, but solely as Owner Trustee
		
	By	 	  

	Name:	 	
	Title:	 	

  
 59 

			
	Acknowledged and Agreed, solely for purposes of Section 4.17
	
	ALLY FINANCIAL INC., as Administrator, Servicer and Custodian
		
	By	 	  

	Name:	 	
	Title:	 	

  
 60 

			
	Acknowledged and Agreed, solely for purposes of Section 8.09
	
	 ALLY BANK, as Sponsor

		
	By	 	  

	Name:	 	
	Title:	 	

  
 61 

 EXHIBIT A 

FORM OF CLASS [A][B][C][D][E] NOTE 

[Unless this Class [A] Note is presented by an authorized representative of The Depository Trust Company, a New York corporation
(“DTC”), to the Issuing Entity or its agent for registration of transfer, exchange or payment, and any Note issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
inasmuch as the registered owner hereof, Cede & Co., has an interest herein.] 
 [This Class [B][C][D][E] Note has not and will not
be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or under the securities or blue sky laws of any State in the United States or any foreign securities laws. By its acceptance of this
Class [B][C][D][E] Note (or interest therein), the Holder of this Class [B][C][D][E] Note (or such interest), if other than the Depositor, is deemed to represent and warrant to the Depositor and the Indenture Trustee that it is a “Qualified
Institutional Buyer” as defined in Rule 144A under the Securities Act and is acquiring this Class [B][C][D][E] Note (or interest therein) for its own account (and not for the account of others) or as a fiduciary or agent for others (which
others also are Qualified Institutional Buyers) or has otherwise acquired an interest in the Class [B][C][D][E] Note in a transaction that is exempt from the registration requirements of the Securities Act.] 

[No sale, pledge or other transfer of this Class [B][C][D][E] Note (or interest therein) may be made by any Person unless either (i) such
sale, pledge or other transfer is made by or to the Depositor, (ii) at the time of such sale, pledge or other transfer, (A) this Class [B][C][D][E] Note is eligible for resale pursuant to Rule 144A under the Securities Act, and such sale,
pledge or other transfer is made to a person whom the transferor “reasonably believes” within the meaning of Rule 144A under the Securities Act is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act (a “Qualified Institutional Buyer”) acting for its own account or the accounts of other Qualified Institutional Buyers, and (B) the transferee is aware that the transferor of this Class [B][C][D][E] Note intends
to rely on the exemption from the registration requirements of the Securities Act provided by Rule 144A under the Securities Act, or (iii) such sale, pledge or other transfer is otherwise made in a transaction exempt from the registration
requirements of the Securities Act, in which case (A) the Indenture Trustee shall require that both the prospective transferor and the prospective transferee certify to the Indenture Trustee and the Depositor in writing the facts surrounding
such transfer, which certification shall be in form and substance satisfactory to the Indenture Trustee and the Depositor, and (B) the Indenture Trustee shall require a written opinion of 

  
 Ex. A-1 

 
counsel (which will not be at the expense of the Seller, the Depositor, the Administrator, the Issuing Entity, the Servicer or the Indenture Trustee) satisfactory to the Depositor and the
Indenture Trustee to the effect that such transfer will not violate the Securities Act and satisfaction of certain other provisions specified herein.] 

Each Noteholder or Note Owner, by acceptance of this Note (or interest therein), hereby covenant and agree that by accepting the benefits of
the Indenture such Noteholder or Note Owner shall not, prior to the date which is one year and one day after the termination of the Indenture with respect to the Issuing Entity and, with respect to the Depositor, the Securities issued by each other
trust formed by and each other financing by the Depositor, acquiesce, petition or otherwise invoke or cause the Depositor or the Issuing Entity to invoke the process of any court or government authority for the purpose of commencing or sustaining a
case against the Depositor or the Issuing Entity under any Insolvency Law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Depositor or the Issuing Entity or any substantial part of
the property of either of them, or ordering the winding up or liquidation of the affairs of the Depositor or the Issuing Entity. 
 Each
Noteholder, by acceptance of this Note (or interest therein), covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuing Entity, the Owner Trustee or the Indenture Trustee on the Notes
or under the Indenture or any certificate or other writing delivered in connection herewith or therewith, against: 

(i)    the Indenture Trustee or the Owner Trustee in its individual capacity; 

(ii)    the Depositor or any other owner of a beneficial interest in the Issuing Entity; or 

(iii)    any partner, owner, beneficiary, agent, officer, director or employee of the Indenture Trustee or
the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuing Entity, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual
capacity, except as any such Person may have expressly agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their individual capacity) and except that any such partner, owner or beneficiary shall
be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 

Except as expressly provided in the Basic Documents, none of the Seller, the Depositor, the Servicer, the Indenture Trustee nor the Owner
Trustee in their respective individual capacities, any owner of a beneficial interest in the Issuing Entity, nor any of 

  
 Ex. A-2 

 
their respective partners, owners, beneficiaries, agents, officers, directors, employees or successors or assigns, shall be personally liable for, nor shall recourse be had to any of them for,
the payment of principal of [or interest on], or performance of, or omission to perform, any of the covenants, obligations or indemnifications contained in this Note or the Indenture, it being expressly understood that said covenants, obligations
and indemnifications have been made solely by the Issuing Entity. Each Noteholder by accepting this Note (or any interest therein) acknowledges that such Noteholder’s Note (or interest therein) represents beneficial interests in the Issuing
Entity only and does not represent interests in or obligations of the Depositor, the Servicer, the Administrator, the Owner Trustee, the Indenture Trustee or any Affiliate thereof (other than the Issuing Entity) and no recourse, either directly or
indirectly, may be had against such parties or their assets, except as may be expressly set forth or contemplated in the Basic Documents. Each Noteholder by the acceptance of a Note (or beneficial interest therein) agrees that except as expressly
provided in the Basic Documents, in the event of nonpayment of any amounts with respect to the Notes, it shall have no claim against any of Depositor, the Servicer, the Administrator, the Owner Trustee, the Indenture Trustee or any Affiliate for any
deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuing Entity for any and all liabilities, obligations and
undertakings contained in the Indenture or in the Notes. 
 If any of the foregoing covenants of a Noteholder is prohibited by, or declared
illegal or otherwise unenforceable against or with respect to any Noteholder under applicable law by any court or other authority of competent jurisdiction, and, as a result, a Noteholder is deemed to have an interest in any assets of the Depositor
or any Affiliate of the Depositor other than the Issuing Entity (“other assets”), each Noteholder or Note Owner by the acceptance of this Note (or beneficial interest therein), agrees that (i) its claim against any such other assets
shall be, and hereby is, subject and subordinate in all respects to the rights of other Persons to whom rights in the other assets have been expressly granted (“entitled Persons”), including to the payment in full of all amounts owing to
such entitled Persons, and (ii) the covenant set forth in the preceding clause (i) constitutes a “subordination agreement” within the meaning of, and subject to, Section 510(a) of the Bankruptcy Code. 

[The holder of this Note, by acceptance of this Note, and each holder of a beneficial interest therein, unless otherwise required by the
appropriate taxing authorities, agree to treat this Note as indebtedness of the Issuing Entity for applicable United States federal, state and local income and franchise tax purposes and any other taxes imposed upon, measured by or based upon gross
or net income.] 
 [Any holder of this Class [A][B][C][D] Note, by its acceptance of this Class [A][B][C][D] Note, shall be deemed to have
represented that either (a) it is not acquiring the Class [A][B][C][D] Note with the assets of (i) an employee benefit plan (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended

  
 Ex. A-3 

 
(“ERISA”)) that is subject to the provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended (the
“Code”) which is subject to Section 4975 of the Code, (iii) an entity whose underlying assets are treated under regulations issued by the U.S. Department of Labor, as modified by Section 3(42) of ERISA, to include
plan assets by reason of investment by an employee benefit plan or a plan in such entity or (iv) any other plan that is subject to any law that is substantially similar to Title I of ERISA or Section 4975 of the Code; or (b) the
acquisition and holding of the Class [A][B][C][D] Note will not give rise to a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a non-exempt violation of any substantially similar applicable law. Employee benefit plans subject to the provisions of Title I of ERISA, plans subject to Section 4975 of the Code and entities whose underlying
assets include plan assets by reason of an employee benefit plan’s or plan’s investment in such entity may not acquire this Class [A][B][C][D] Note at any time that this Class [A][B][C][D] Note would not be treated as indebtedness without
substantial equity features [or the ratings on this Class [B][C][D] Note are below investment grade]. [Any holder of this Class [E] Note, by its acceptance of this Class [E] Note, shall be deemed to have represented that (a) it is not acquiring
the Class [E] Note with the plan assets of (i) an employee benefit plan (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) that is subject to the provisions of Title I
of ERISA, (ii) a plan described in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended (the “Code”) which is subject to Section 4975 of the Code, (iii) an entity whose underlying assets include plan
assets by reason of investment by an employee benefit plan or a plan in such entity other than an insurance company general account (as defined in Prohibited Transaction Class Exemption (“PTCE”)
95-60) whose underlying assets include less than 25% “plan assets” and for which the purchase and holding of the Class [E] Notes is eligible for and satisfied all conditions for relief under PTCE 95-60 or (iv) an employee benefit plan or plan that is not subject to the provisions of Title I of ERISA or Section 4975 of the Code if such acquisition would result in a
non-exempt prohibited transaction under, or a non-exempt violation of, any applicable law that is substantially similar to Title I of ERISA or Section 4975 of the
Code.] 
 [Transfer of this Class E Note may only be made to a Person who is a United States Person (within the meaning of Section
7701(a)(30) of the Internal Revenue Code). Any Person acquiring this Class E Note or an interest therein (i) shall not be deemed to have made the representations set forth in Section 2.14 of the Indenture and (ii) other than the
Depositor shall not acquire or hold this Class E Note or interest herein in the form of a Book Entry Note.] 
 [No sale, pledge or
other transfer may be made to any one person of a Class E Note with a face amount of less than the amount determined in accordance with Section 1.01(f) of the Indenture Supplement (in order to prevent the Issuing Entity from being
treated as a “publicly traded partnership” under Section 7704 of the Code, and, in the case 

  
 Ex. A-4 

 
of any Person acting on behalf of one or more third parties (other than a bank (as defined in Section 3(a)(2) of the Securities Act) acting in its fiduciary capacity), for a Class E Note
with a face amount of less than such amount for each such third party. Any attempted transfer in contravention of the immediately preceding restriction will be void ab initio and the purported transferor will continue to be treated as the
owner of the Class E Notes for all purposes. No Class E Note may be transferred unless the transferor provides to the Indenture Trustee an opinion of independent counsel that the transfer will not cause the Issuing Entity to be treated as
an association (or publicly traded partnership) taxable as a corporation for federal income tax purposes.] 

  
 Ex. A-5 

			
	 Registered
	  	$               1
	 No. R-    
	  	CUSIP No.             
		  	ISIN No.             
		  	Common Code             

 ALLY MASTER OWNER TRUST 

SERIES 2017-1 [[FLOATING][FIXED] RATE ASSET BACKED][ASSET 

BACKED EQUITY] NOTE, CLASS [A][B][C][D][E] 

Ally Master Owner Trust (herein referred to as the “Issuing Entity”), a Delaware statutory trust governed by the Trust
Agreement, dated as of February 12, 2010, for value received, hereby promises to pay to                     , or registered assigns, subject to
the following provisions, the principal sum of                               DOLLARS, or such
greater or lesser amount as determined in accordance with the Indenture and the Indenture Supplement (each referred to herein), on the February 2021 Distribution Date (the “Series 2017-1 Legal Maturity
Date”), except as otherwise provided below or in the Indenture or the Indenture Supplement. Beginning on March 15, 2017, and on each Distribution Date thereafter until the principal amount of this Note is paid in full, the Issuing
Entity shall pay interest on the unpaid principal amount of this Note at an annual rate equal to the Class [A][B][C][D] Note Interest Rate, as determined pursuant to the Indenture Supplement. Interest on this Note shall begin accruing from
February 22, 2017 (the “Closing Date”) and shall be payable in arrears on each Distribution Date, computed on the basis of a 360-day year and [the actual number of days elapsed][twelve 30-day months]. The principal of this Note shall be paid in the manner specified on the reverse hereof. 

The principal of [and interest] on this Note are payable in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. 
 Reference is made to the further provisions of this Note set forth on the reverse
hereof, which shall have the same effect as though fully set forth on the face of this Note. 
 Unless the certificate of authentication
hereon has been executed by or on behalf of the Indenture Trustee, by manual signature, this Note shall not be entitled to any benefit under the Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any purpose.

  
  

	1 	[This Class [A][B][C][D] Note may be issued in denominations of $1,000 and integral multiples of $1,000 in excess thereof.][This Class E Asset Backed Equity Note may be issued only in denominations equal to the Class E
Note Principal Balance.] 

  
 Ex. A-6 

 IN WITNESS WHEREOF, the Issuing Entity has caused this Note to be duly executed. 

 

			
	ALLY MASTER OWNER TRUST, as Issuing Entity
	
	By U.S. Bank Trust National Association, not in its individual capacity, but solely as Owner Trustee
		
	By	 	  

	Name:	 	
	Title:	 	

 Dated: 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes described in the within-mentioned Indenture. 

 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity, but solely as Indenture Trustee
		
	By	 	  

		 	Authorized Officer

  
 Ex. A-7 

 ALLY MASTER OWNER TRUST 

SERIES 2017-1 [[FLOATING][FIXED] RATE ASSET BACKED][ASSET BACKED EQUITY] NOTE, CLASS [A][B][C][D][E]

 Summary of Terms and Conditions 

This Note is one of a duly authorized issue of Notes of the Issuing Entity, designated as the Series
2017-1 [[Floating][Fixed] Rate] Asset Backed Notes (the “Notes”), issued under the Indenture, dated as of February 12, 2010 (the “Indenture”), between the Issuing Entity
and Wells Fargo Bank, National Association, as indenture trustee (the “Indenture Trustee”), as supplemented by the Series 2017-1 Indenture Supplement, dated as of February 22, 2017 (the
“Indenture Supplement” and, together with the Indenture, the “Series Agreement”), and representing the right to receive certain payments from the Issuing Entity. The Notes are subject to all of the terms of the
Series Agreement. All terms used in this Note that are defined in the Series Agreement have the meanings assigned to them in or pursuant to the Series Agreement. In the event of any conflict or inconsistency between the Series Agreement and this
Note, the Series Agreement controls. 
 The [Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes and the
Class E Note] with initial principal amounts of $[        ], $[        ], $[        ],
$[        ] and $[        ], respectively, shall also be issued under the Series Agreement. [The rights of the holders of the [Class A Notes, the Class B Notes, the
Class C Notes, and the Class D Notes] to receive payments on [the Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes] are senior to the rights of the holders of the Class [B][C][D][E] Notes to
receive payments as specified in the Series Agreement.] [The rights of the holders of [the Class B Notes, the Class C Notes, the Class D Notes, and the Class E Notes] to receive payments on [the Class B Notes, the
Class C Notes, the Class D Notes and the Class E Notes] are subordinate to the rights of the holders of the Class [A][B][C][D] Notes to receive payments as specified in the Series Agreement.] 

The Series 2017-1 Notes only represent interest in the Issuing Entity allocated to the Series 2017-1 Notes. The Noteholder, by its acceptance of this Note, agrees that it shall look solely to the property of the Issuing Entity allocated to the payment of the Notes for payment hereunder and under the Series
Agreement and that the Indenture Trustee is not liable to the Noteholders for any amount payable under the Notes or the Series Agreement or, except as expressly provided in the Series Agreement, subject to any liability under the Series Agreement.

 Upon the irrevocable deposit of any amount into the Note Defeasance Account pursuant to the Series Agreement, the Issuing Entity shall
have no further liability for, and shall be deemed to be discharged and released from its obligations with respect to, this Note to the extent of the amount so deposited as such amounts are to be applied to

  
 Ex. A-8 

 
the payments of interest on and principal of this Note in accordance with the priorities specified in the Series Agreement, and the Noteholder shall have recourse and shall look solely to the
Note Defeasance Account for the payment of such amounts. 
 Each Noteholder or holder of an interest in a Note, by acceptance of such Note
or such interest therein, agrees to provide to the Indenture Trustee, any Paying Agent or the Issuing Entity, upon its request, the Noteholder Tax Identification Information and, to the extent FATCA Withholding Tax is applicable, the Noteholder
FATCA Information. In addition, each Noteholder or holder of an interest in a Note, by acceptance of such Note or such interest therein, agrees that the Indenture Trustee has the right to withhold any amounts of interest (properly withholdable under
law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in a Note that fails to comply with the requirements of the preceding sentence. 

This Note does not purport to summarize the Series Agreement and reference is made to the Series Agreement for the interests, rights and
limitations of rights, benefits, obligations and duties evidenced thereby, and the rights, duties and immunities of the Indenture Trustee. 

The Class [A][B][C][D][E] Note Initial Principal Balance is $[        ]. The Class [A][B][C][D][E]
Note Principal Balance on any date of determination shall be an amount equal to the Class [A][B][C][D][E] Note Initial Principal Balance minus the aggregate amount of any principal payments made to the Class [A][B][C][D][E] Noteholders before
such date. 
 The Series 2017-1 Expected Maturity Date is the February 2019 Distribution Date, but
principal with respect to the Class [A][B][C][D][E] Notes may be paid earlier or later under certain circumstances described in the Series Agreement. If for one or more months during the Controlled Accumulation Period there are not sufficient funds
to deposit the Controlled Deposit Amount into the Note Distribution Account or, to the extent permitted by the Indenture Supplement, the Note Defeasance Account, then to the extent that excess funds are not available on subsequent Distribution Dates
with respect to the Controlled Accumulation Period to make up for such shortfalls, the final payment of principal of the Notes shall occur later than the Series 2017-1 Expected Maturity Date. Payments of
principal of the Notes shall be payable in accordance with the provisions of the Series Agreement. 
 Subject to the terms and conditions of
the Series Agreement, the Depositor may, from time to time, direct the Owner Trustee, on behalf of the Issuing Entity, to issue one or more new Series of notes. 

On each Distribution Date, the Indenture Trustee shall distribute to each Class [A][B][C][D][E] Noteholder of record on the related Record
Date (except for the final distribution in respect of this Note) such Class [A][B][C][D][E] Noteholder’s pro rata  

  
 Ex. A-9 

 
share of the amounts held by the Indenture Trustee that are allocated and available on such Distribution Date to pay [interest and] principal on the Class [A][B][C][D][E] Notes pursuant to the
Indenture Supplement. Except as provided in the Series Agreement with respect to a final distribution, distributions to the Noteholders shall be made by (a) wire transfer (to the account specified by the applicable Noteholder) or check mailed
to the applicable Noteholder (at such Noteholder’s address as it appears in the Note Register), except that with respect to any Notes registered in the name of the nominee of a Clearing Agency, such distribution shall be made in immediately
available funds and (b) without presentation or surrender of any Note or the making of any notation thereon. Final payment of this Note shall be made only upon presentation and surrender of this Note at the office or agency specified in the
notice of final distribution delivered by the Indenture Trustee to the Noteholders in accordance with the Series Agreement. 
 On any day
occurring on or after the date on which the Note Principal Balance is reduced to 10% or less of the Initial Note Principal Balance, the Servicer (if Ally Financial or an Affiliate of Ally Financial is the Servicer) shall have the option to redeem
the Notes, at a purchase price equal to (a) if such day is a Distribution Date, the Reassignment Amount for such Distribution Date or (b) if such day is not a Distribution Date, the Reassignment Amount for the Distribution Date following
such day. 
 This Note does not represent an obligation of, or an interest in, Ally Bank, Ally Financial, Inc., Ally Wholesale Enterprises
LLC, the Indenture Trustee, the Owner Trustee or any Affiliate of any of them (other than the Issuing Entity) and is not insured or guaranteed by any governmental agency or instrumentality. 

The Issuing Entity is permitted by the Indenture, under certain circumstances, to merge or consolidate subject to the rights of the Indenture
Trustee and the Noteholders. 
 [Except as otherwise provided in the Indenture Supplement, the Class [A][B][C][D] Notes are issuable only in
minimum denominations of $1,000 and integral multiples of $1,000.][Except as otherwise provided in the Indenture Supplement, the Class E Notes are issuable only in a minimum denomination of 100% of the Class E Note Principal Balance] The
transfer of this Note shall be registered in the Note Register upon surrender of this Note for registration of transfer at any office or agency maintained by the Transfer Agent and Registrar accompanied by a written instrument of transfer, in a form
satisfactory to the Indenture Trustee or the Transfer Agent and Registrar, duly executed by the Noteholder or such Noteholder’s attorney, and duly authorized in writing with such signature guaranteed, and thereupon one or more new Class
[A][B][C][D][E] Notes in any authorized denominations of like aggregate principal amount shall be issued to the designated transferee or transferees. 

As provided in the Series Agreement and subject to certain limitations therein set forth, Class [A][B][C][D][E] Notes are exchangeable for new
Class [A][B][C][D][E] Notes in any authorized denominations and of like aggregate principal amount, upon 

  
 Ex. A-10 

 
surrender of such Notes to be exchanged at the office or agency of the Transfer Agent and Registrar. No service charge may be imposed for any such exchange but the Issuing Entity or Transfer
Agent and Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 

The Issuing Entity, the Depositor, the Indenture Trustee and any agent of the Issuing Entity, the Depositor or the Indenture Trustee shall
treat the person in whose name this Note is registered as the owner hereof for all purposes, and none of the Issuing Entity, the Depositor, the Indenture Trustee or any agent of the Issuing Entity, the Depositor or the Indenture Trustee shall be
affected by notice to the contrary. 
 This Note is to be construed in accordance with the laws of the State of New York, without reference
to its conflict of law provisions, and the obligations, rights and remedies of the parties hereunder are to be determined in accordance with such laws. 

  
 Ex. A-11 

 ASSIGNMENT 

Social Security 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 thereunder, and hereby irrevocably constitutes and appoints
                                        ,
attorney, to transfer said note on the books kept for registration thereof, with full power of substitution in the premises. 
  

							
	 Dated:
                    
	 		 		 	
                   
                                         2

				
		 		 		 	 Signature Guaranteed:

				
		 		 		 	
                   
                                         

  
  

	2 	NOTE: 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 whatsoever.

  
 Ex. A-12 

 EXHIBIT B 

FORM OF MONTHLY STATEMENT 
  

 
 ALLY MASTER
OWNER TRUST 
 SERIES 2017-1 ASSET BACKED NOTES 

 
  

Form of Ally Master Owner Trust 

Monthly Servicing Report 
 Series
2017-1 Summary 
  

											
	 1. Information
	  		  		  		  			
					
	 Closing Date
	  	February 22, 2017	  		  		  			
	 Series 2017-1 Expected Maturity Date
	  	February 15, 2019	  		  		  			
	 Series 2017-1 Legal Maturity Date
	  	February 15, 2021	  		  		  			
	 Nonoverconcentration or Overconcentration Series
	  	Nonoverconcentration	  		  		  			
	 Excess Interest Sharing Group
	  	One	  		  		  			
	 Principal Sharing Group
	  	One	  		  		  			
	 Shared Enhancement Series
	  	N/A	  		  		  			
	 Interest Reallocation Group
	  	N/A	  		  		  			
	 Revolving/Controlled Accumulation/Early Amortization
	  	Revolving	  		  		  			
					
	 2. Securities Balances
	  		  		  		  			
	 Class
	  	 Note Principal Balance as of

prior Distribution Date
	  	
Note Principal Balance as
of current Distribution Date
	  	 Average Daily Note Principal
Balance - Prior to
Current
Distribution Date
	  	 	 
	 A
	  		  	
$                650,000,000.00
	  	
$                650,000,000.00
	  			
	 B
	  		  	
$                  47,508,000.00
	  	
$                  47,508,000.00
	  			
	 C
	  		  	
$                  34,551,000.00
	  	
$                  34,551,000.00
	  			
	 D
	  		  	
$                  25,914,000.00
	  	
$                  25,914,000.00
	  			
	 E
	  		  	
$                105,814,375.00
	  	
$                105,814,375.00
	  			
		  	  
	  	  
	  	  
	  			
	 Total
	  		  	
$                863,787,375.00
	  	
$                863,787,375.00
	  			
					
	 3. Interest Calculations
	  		  		  		  			
	 Class
	  	 Average Daily Note
Principal Balance - Prior to
Current
Distribution Date
	  	 Rate
	  	 Days in Interest Period
	  	Monthly Interest	 
	 A
	  	$                650,000,000.00	  		  		  			
	 B
	  	$                  47,508,000.00	  	2.33000%	  		  			
	 C
	  	$                  34,551,000.00	  	2.63000%	  		  			
	 D
	  	$                  25,914,000.00	  	3.17000%	  		  			
	 E
	  	$                105,814,375.00	  	N/A	  	N/A	  	$	                  —	  
		  	  
	  		  		  	  
	  
	 
	 Total
	  	$                863,787,375.00	  		  		  			
					
	 Blended Note Interest Rate (Class A-D)
	  		  		  		  			
	 Days In Interest Period
	  		  		  		  			
		  	  
	  		  		  			
	 Monthly Interest Fixed
	  		  		  		  			
					
	 4. Net Invested Amount
	  		  		  		  			
					
	 Beginning of Period Net Invested Amount
	  		  		  		  			
	 Less Balance Paydown during Period
	  		  		  		  			
	 Less Net Reallocated Principal Collections
	  		  		  		  			
	 Less Net Series Charge-Offs
	  		  		  		  			
	 Plus/Less Other Class E Adjustments
	  		  		  		  			
		  	  
	  		  		  			
	 End of Period Net Invested Amount
	  		  		  		  			
	 Determination Date Note Distribution and Note Defeasance Account Balance
	  		  		  		  			
	 Determination Date Net Invested Amount
	  		  		  		  			
					
	 5. Series Allocations
	  		  		  		  			
			
	 Floating Series Percentage
	  		  		
	 Fixed Series Percentage (Average)
	  		  		
	 Series Interest Collections
	  		  		  		  			
	 Series Principal Collections (Period)
	  		  		  		  			
	 Series Defaulted Amount
	  		  		  		  			
					
	 6. Collections
	  		  		  		  			
					
	 Available Series Interest Collections
	  		  		  		  			
	 Series Interest Collections
	  		  		  		  			
	 Plus Reserve Fund - Net Interest and Investment Earnings
	  		  		  		  			
	 Plus Note Distribution Account - Net Interest and Investment Earnings
	  		  		  		  			
	 Plus Accumulation Period Reserve Account - Net Interest and Investment Earnings
	  		  		  		  			
	 Plus Accumulation Period Reserve Draw Amount
	  		  		  		  			
		  	  
	  		  		  			
	 Total
	  		  		  		  			
					
	 Amounts allocated to Interest Waterfall
	  		  		  		  			
	 Excess Interest Collections from Other Series
	  		  		  		  			
	 Reserve Fund Available Amount Used
	  		  		  		  			
	 Reallocated Principal Collections Used
	  		  		  		  			
	 Servicer Advance
	  		  		  		  			
		  	  
	  		  		  			
	 Total
	  		  		  		  			
					
	 Principal Collections
	  		  		  		  			
					
	 Series Principal Collections (collection period)
	  		  		  		  			
	 Shared Principal Collections (collection period)
	  		  		  		  			
	 Excess Funding Account Withdrawals (collection period)
	  		  		  		  			
	 Less Reallocated Principal Collections (Current Monthly Payment Date)
	  		  		  		  			
	 Additional Available Series Principal Collections (Current Monthly Payment Date)
	  		  		  		  			
		  	  
	  		  		  			
	 Available Investor Principal Collections
	  		  		  		  			
					
	 7. Application of Available Series Interest Collections on Deposit in Collection
Account
	  		  		  		  			
					
	Monthly Servicing Fee (including unpaid Monthly Servicing Fees for prior Distribution Dates) - Indenture Supplement 4.04(i)	  		  		  		  			
	Unpaid fees, expenses and indemnities (not to exceed $200,000 in a calendar year)	  		  		  		  			
	Monthly Backup Servicing Fee	  		  		  		  			
					
	Class A Monthly Interest (including unpaid Class A Monthly Interest for prior Distribution Dates)	  		  		  		  			
					
	Class B Monthly Interest (including unpaid Class B Monthly Interest for prior Distribution Dates)	  		  		  		  			
					
	Class C Monthly Interest (including unpaid Class C Monthly Interest for prior Distribution Dates)	  		  		  		  			
					
	Class D Monthly Interest (including unpaid Class D Monthly Interest for prior Distribution Dates)	  		  		  		  			
					
	Series Defaulted Amount (treated as Additional Available Series Principal Collections)	  		  		  		  			
	Series Charge-Offs - unreimbursed (to be treated as Additional Available Series Principal Collections)	  		  		  		  			
	Reallocated Principal Collections - unreimbursed (to be treated as Additional Available Series Principal Collections)	  		  		  		  			
	Amount to cause the Class E Invested Amount to not be less than the Required Class E Invested Amount (to be treated as Additional Available Series Principal Collections)	  		  		  		  			
	Reserve Fund Deposit Amount	  		  		  		  			
	Repayment of Outstanding Servicer Advances	  		  		  		  			
	Remaining fees, expenses, indemnities or other amounts	  		  		  		  			
	Interest Collections Shortfalls for other outstanding Series in Excess Interest Sharing Group One	  		  		  		  			
	Deposit in the Certificate Distribution Account for distribution to the holders of the Certificate (to extent not required to be deposited in EFA or CCA)	  		  		  		  			

  
 Ex. B-1 

											
					
	 8. Available Investor Principal Collections Distribution Payments by Priority
	  		  		  		  			
					
	 Available Investor Principal Collections
	  		  		  		  			
	 Aggregate Deposit to Note Distribution and Note Defeasance Accounts
	  		  		  		  			
	 Shared with other series in Excess Sharing Group One
	  		  		  		  			
		  	  
	  		  		  			
	 Remainder released to holders of Certificate Interest (to extent not required to be deposited in EFA or CCA)
	  		  		  		  			
					
	 Application of Principal Amounts in Note
Distribution Account
	  	 Balance Prior to
Distribution
	  	 Distributions Allocable to
Principal
	  	 Balance Following
Distribution
	  	 	 
	 A
	  	$                                   
 —	  	
$                        
            —
	  	
$                        
            —
	  			
	 B
	  	
$                        
            —
	  	
$                        
            —
	  	
$                        
            —
	  			
	 C
	  	
$                        
            —
	  	
$                        
            —
	  	
$                        
            —
	  			
	 D
	  	
$                        
            —
	  	
$                        
            —
	  	
$                        
            —
	  			
	 E
	  	
$                        
            —
	  	
$                        
            —
	  	
$                        
            —
	  			
		  	  
	  	  
	  	  
	  			
	 Total
	  	
$                        
            —
	  	
$                        
            —
	  	
$                        
            —
	  			
					
	 9. Series Accounts (Collection Period)
	  		  		  		  			
					
	 Note Distribution Account
	  		  		  		  			
	 Note Distribution Account - Beginning Balance
	  	
$                        
            —
	  		  		  			
	 Plus Note Distribution Account Deposit Amount
	  	
$                        
            —
	  		  		  			
	 Less Note Distribution Account Draw Amount
	  	
$                        
            —
	  		  		  			
		  	  
	  		  		  			
	 Note Distribution Account - Ending Balance
	  	
$                        
            —
	  		  		  			
		  	  
	  		  		  			
					
	 Note Defeasance Account
	  		  		  		  			
		  	  
	  		  		  			
	 Note Defeasance Account - Beginning Balance
	  	
$                        
            —
	  		  		  			
	 Plus Note Defeasance Account Deposit Amount
	  	
$                        
            —
	  		  		  			
	 Less Note Defeasance Account Draw Amount
	  	
$                        
            —
	  		  		  			
		  	  

$                        
            —
	  		  		  			
	 Note Defeasance Account - Ending Balance
	  	
$                        
            —
	  		  		  			
		  	  
	  		  		  			
					
	 Reserve Fund
	  		  		  		  			
		  	  
	  		  		  			
	 Reserve Fund - Beginning Balance
	  		  		  		  			
	 Plus Reserve Fund Deposit Amount
	  	
$                        
            —
	  		  		  			
	 Less Reserve Fund Draw Amount
	  	
$                        
            —
	  		  		  			
		  	  
	  		  		  			
	 Reserve Fund - Ending Balance
	  		  		  		  			
		  	  
	  		  		  			
	 Reserve Fund Required Amount
	  		  		  		  			
	 Reserve Fund Trigger Amount
	  		  		  		  			
		  	  
	  		  		  			
		  	  
	  		  		  			
					
	 10. Servicer Advances
	  		  		  		  			
					
	 Beginning Unreimbursed Servicer Advances
	  	
$                        
            —
	  		  		  			
	 Plus Servicer Advances During the Period
	  	
$                        
            —
	  		  		  			
	 Less Repayment of Servicer Advances
	  	
$                        
            —
	  		  		  			
		  	  
	  		  		  			
	 Ending Unreimbursed Servicer Advances
	  	
$                        
            —
	  		  		  			
		  	  
	  		  		  			
					
	 11. Series 2017-1 Early Amortization Events
	  		  		  		  			
					
	Failure by the Depositor, the Servicer or the Seller, as applicable, to duly observe or perform in any material respect any other covenants or agreements in the TSSA or PSA (unremitted for 60 days)	  		  		  		  			
					
	Breach of representation or warranty made by the seller in the PSA or the Depositor in the TSSA or materially incorrect information in the Schedule of Accounts (unremitted for 60 days)	  		  		  		  			
					
	Failure to pay (or set aside for payment) all amounts required to be paid as principal on any Series 2017-1 Notes on the Series 2017-1 Expected Maturity Date	  		  		  		  			
					
	Average of the Monthly Payment Rates for three preceding Collection Periods is less than 17.5%	  		  		  		  			
					
	Amount on deposit in Reserve Fund is less than Reserve Fund Required Amount for three consecutive Distribution Dates	  		  		  		  			
					
	Reserve Fund Required Amount exceeds the amount on deposit in Reserve Fund by more than the Reserve Fund Trigger Amount	  		  		  		  			
					
	Series 2017-1 Event of Default has occurred	  		  		  		  			
					
	Insolvency Event with respect to the Seller, the Depositor or the Seller (or Ally, if Ally is not the Servicer)	  		  		  		  			
					
	Amounts on deposit in the Excess Funding Account exceeds 30% of the sum of the Net Invested Amounts for all outstanding Series (average over the last six Collection Periods or
                , if shorter, the period from the initial issuance date through the immediately preceding Collection Period)	  		  		  		  			
	 Current Month
	  		  		  		  			
	 Current Month - 1
	  		  		  		  			
	 Current Month - 2
	  		  		  		  			
	 Current Month - 3
	  		  		  		  			
	 Current Month - 4
	  		  		  		  			
	 Current Month - 5
	  		  		  		  			
		  	  
	  		  		  			
	 Six Month Average
	  		  		  		  			
					
	Issuing Entity or the Depositor are required to register under the Investment Company Act	  		  		  		  			
					
	Liquidation Event occurs with respect to a Significant Manufacturer or with respect to a Majority of Manufacturers	  		  		  		  			
					
	Required Class E Invested Amount exceeds the Class E Invested Amount	  		  		  		  			
	 Required Class E Invested Amount
	  		  		  		  			
	 Class E Invested Amount
	  		  		  		  			
					
	A failure by the depositor to transfer to the Issuing Entity Receivables arising in connection with Additional Accounts within 15 Business Days after the date on which the Depositor is required to convey such Receivables	  		  		  		  			
					
	 12. Asset Representations Review
	  		  		  		  			
					
	Whether a downgrade trigger has been met or exceeded	  		  		  		  			
					
	Whether the Servicer has received a communication request from a Noteholder interested in communicating with other Noteholders regarding the possible exercise of rights under the transaction documents and, if so, the name and
contact information for the requesting Noteholder and the date such request was received	  		  		  		  			
					
	A summary of the findings and conclusions of any Asset Representations Review conducted by the Asset Representations Reviewer	  		  		  		  			

  

  
 Ex. B-2 

 EXHIBIT C 

SERVICING CRITERIA TO BE ADDRESSED IN 

INDENTURE TRUSTEE’S ASSESSMENT OF COMPLIANCE 

The assessment of compliance to be delivered by the Indenture Trustee, as applicable, shall address, at a minimum, the criteria identified
below as “Applicable Indenture Trustee Servicing Criteria”, as applicable:  
  

					
	
Servicing Criteria
	  	 Applicable

Indenture

Trustee

Servicing Criteria

	 Reference
	  	 Criteria
	  
		  	General Servicing Considerations	  	
			
	1122(d)(1)(i)	  	Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.	  	
			
	1122(d)(1)(ii)	  	If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing activities.	  	X
			
	1122(d)(1)(iii)	  	Any requirements in the transaction agreements to maintain a back-up servicer for the pool assets are maintained.	  	
			
	1122(d)(1)(iv)	  	A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of
the transaction agreements.	  	X
			
	1122(d)(1)(v)	  	Aggregate of information, as applicable, is mathematically accurate and the information conveyed accurately reflects the information.	  	
			
		  	Cash Collection and Administration	  	
			
	1122(d)(2)(i)	  	Payments on pool assets are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of days specified in the transaction
agreements.	  	X
			
	1122(d)(2)(ii)	  	Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.	  	X
			
	1122(d)(2)(iii)	  	Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction agreements.	  	
			
	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.	  	X
			
	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 Rule 13k-1(b)(1) of the Securities Exchange Act.	  	X
			
	1122(d)(2)(vi)	  	Unissued checks are safeguarded so as to prevent unauthorized access.	  	X

  
 Ex. C-1 

					
	
Servicing Criteria
	  	 Applicable

Indenture

Trustee

Servicing Criteria

	 Reference
	  	 Criteria
	  
	1122(d)(2)(vii)	  	Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations are (A) mathematically accurate;
(B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by someone other than the person who prepared the reconciliation;
and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.	  	X
			
		  	Investor Remittances and Reporting	  	
			
	1122(d)(3)(i)	  	Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements. Specifically, such reports (A) are prepared in
accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the Commission as required by
its rules and regulations; and (D) agree with investors’ or the trustee’s records as to the total unpaid principal balance and number of pool assets serviced by the Servicer.	  	X1
			
	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.	  	X
			
	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.	  	X
			
	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.	  	X
			
		  	Pool Asset Administration	  	
			
	1122(d)(4)(i)	  	Collateral or security on pool assets is maintained as required by the transaction agreements or related asset pool documents.	  	
			
	1122(d)(4)(ii)	  	Pool assets and related documents are safeguarded as required by the transaction agreements	  	
			
	1122(d)(4)(iii)	  	Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.	  	
			
	1122(d)(4)(iv)	  	Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the Servicer’s obligor records maintained no more than two business days after receipt, or such other
number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related asset pool documents.	  	
			
	1122(d)(4)(v)	  	The Servicer’s records regarding the accounts and the accounts agree with the Servicer’s records with respect to an obligor’s unpaid principal balance.	  	

  

 

	1 	Only for (A) – applicable to the timeframe the relevant investor reports are distributed to investors. 

  
 Ex. C-2 

					
	
Servicing Criteria
	  	 Applicable

Indenture

Trustee

Servicing Criteria

	 Reference
	  	 Criteria
	  
	1122(d)(4)(vi)	  	Changes with respect to the terms or status of an obligor’s account (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with
the transaction agreements and related pool asset documents.	  	
			
	1122(d)(4)(vii)	  	Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with the timeframes
or other requirements established by the transaction agreements.	  	
			
	1122(d)(4)(viii)	  	Records documenting collection efforts are maintained during the period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly basis, or such other period
specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g.,
illness or unemployment).	  	
			
	1122(d)(4)(ix)	  	Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.	  	
			
	1122(d)(4)(x)	  	Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s Account documents, on at least an annual basis, or such other period specified in the
transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable Account documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of full repayment
of the related Accounts, or such other number of days specified in the transaction agreements.	  	
			
	1122(d)(4)(xi)	  	Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such
support has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.	  	
			
	1122(d)(4)(xii)	  	Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the servicer’s funds and not charged to the obligor, unless the late payment was due to the obligor’s error or
omission.	  	
			
	1122(d)(4)(xiii)	  	Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the servicer, or such other number of days specified in the transaction agreements.	  	
			
	1122(d)(4)(xiv)	  	Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.	  	
			
	1122(d)(4)(xv)	  	Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.	  	

  
 Ex. C-3Exhibit

EXHIBIT 10.1

AGREEMENT OF PURCHASE AND SALE 
AND JOINT ESCROW INSTRUCTIONS
THIS AGREEMENT OF PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is made and entered into as of the 16th day of February, 2017 (“Execution Date”) by and between ARLINGTON MEDICAL PROPERTIES, LLC, an Arizona limited liability company (“Seller”), UNIVERSAL HEALTH REALTY INCOME TRUST, a Maryland real estate investment trust (“Seller Guarantor”), and GAHC4 RENO NV MOB, LLC, a Delaware limited liability company (“Buyer”).
R E C I T A L S:
A.    Seller is the owner of a ground leasehold interest in the Real Property (as defined below) located at 235 West Sixth Street in the City of Reno (“City”), County of Washoe (“County”), State of Nevada (“State”) and more particularly described in Exhibit “A” attached hereto.
B.    Capitalized terms shall have the meanings set forth in connection with the use of such terms.  If no definition is so set forth such capitalized terms shall have the meanings set forth in Paragraph 1 of this Agreement.
C.    Buyer desires to purchase from Seller, and Seller desires to sell to Buyer, the Property, in accordance with the terms of this Agreement.
BASIC PROVISIONS
	
			
	1.
	Seller:
	Arlington Medical Properties, LLC
4722 North 24th Street, Suite 400
Phoenix, AZ  85016
Attn:  Randy McGrane
Email:  rmcgrane@ensemble.net

	 
	and
	 

	 
	 
	Arlington Medical Properties, LLC
c/o Universal Health Realty Income Trust
367 S. Gulph Road
P.O. Box 61558
King of Prussia, PA  19406-0958
Attn:  Cheryl Ramagano
Email:  cherly.ramagano@uhsinc.com

	 
	 
	 

	2.
	Seller’s Counsel:
	Elkins Kalt Weintraub Reuben Gartside LLP
2049 Century Park East, Suite 2700
Los Angeles, CA  90067
Attn:  Scott M. Kalt, Esq.
Telephone No.  (310) 746-4402
Facsimile No.  (310) 746-4499
Email:   skalt@elkinskalt.com

1

	
			
	3.
	Buyer:
	GAHC4 Reno NV MOB, LLC
c/o American Healthcare Investors LLC
18191 Von Karman Ave., Suite 300
Irvine, CA  92612
Attn: Danny Prosky
Telephone No. (949) 270-9201
E-mail: DProsky@ahinvestors.com 

	 
	 
	 

	4.
	Buyer’s Counsel:
	Moran, Reeves & Conn, PC
100 Shockoe Slip, 4th Floor
Richmond, Virginia  23219
Attn:  Joseph J. McQuade
Telephone No.  (804) 864-4812
Email: jmcquade@mrcpclaw.com

	 
	 
	 

	5.
	Broker:
	CBRE Healthcare Capital Markets
1225 Seventeenth St., Suite 2950
Denver, CO  80202
Attn:  Chris Bodnar
Telephone:   (303) 628-1711
Facsimile:   (303) 628-1751
Email:  chris.bodnar@cbre.com

	 
	 
	 

	6.
	Escrow Holder:
	First American Title Insurance Company
2425 E. Camelback Road, Suite 300
Phoenix, AZ  85016
Attn:  Angelique Sizemore
Telephone:   (602) 567-8118
Facsimile:   (602) 567-8101
Email:  asizemore@firstam.com

	 
	 
	 

	7.
	Title Company:
	First American Title Insurance Company
2425 E. Camelback Road, Suite 300
Phoenix, AZ  85016
Attn:  Angelique Sizemore
Telephone:   (602) 567-8118
Facsimile:   (888) 524-2123
Email:  asizemore@firstam.com

	 
	 
	 

	8.
	Purchase Price:
	Sixty-Six Million Two Hundred Fifty Thousand Dollars ($66,250,000).

	 
	 
	 

	9.
	Deposit:
	Two Million Dollars ($2,000,000)

	 
	 
	 

	10.
	Contingency Date:
	March 8, 2017

	 
	 
	 

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	11.
	Scheduled Closing Date:
	Earlier of (i) fifteen (15) days after the Contingency Date; or (ii) March 13, 2017.

AGREEMENT
NOW THEREFORE, incorporating the foregoing recitals, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows.
1.     Definitions.  For purposes of this Agreement, the following terms shall have the following meaning:
1.1     “Authorities” means any governmental or quasi-governmental body or agency having jurisdiction over the Property and/or Seller including, without limitation, the State, the City and the County.
1.2     “Broker” means CBRE Healthcare Capital Markets.
1.3     “Business Day” means all days other than Saturdays, Sundays or holidays.
1.4     “Cash Equivalent” means a wire transfer of funds.
1.5     “Close of Escrow” or “Closing” means the date the Deed is recorded in the Official Records, or such earlier date on which the Title Company unconditionally commits to issue the Title Policy defined in Paragraph 7.1.1 below (i.e., a “gap closing”).
1.6     “Closing Date” means the earlier of:  (i) fifteen (15) days after the Contingency Date; or (ii) March 13, 2017, or such earlier date agreed upon by the parties.
1.7      Contingency Date” means March 8, 2017.
1.8     “Contingency Period” has the meaning provided in Paragraph 7.1.2.
1.9     “Escrow” means the above-referenced escrow opened with Escrow Holder for the consummation of the transaction described in this Agreement.
1.10     “Escrow Holder” means First American Title Insurance Company.
1.11     “Estoppel Certificate Percentage” means (a) one hundred percent (100%) of the square footage of space leased under Hospital Leases, and (b) seventy-five percent (75%) of the square footage of other leased space at the Property.
1.12     “Governmental Regulations” means any laws, ordinances, rules, requirements, resolutions, policy statements and regulations (including, without limitation, those relating to land use, subdivision, zoning, environmental, toxic or hazardous waste, occupational health and safety, water, earthquake hazard reduction, disabled persons and building and fire 

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codes) of the Authorities bearing on the construction, alteration, rehabilitation, maintenance, use, operation or sale of the Property.
1.13     “Ground Lease” means that certain Ground Lease Agreement dated as of July 31, 2003 (as amended), by and between Seller and Prime Healthcare Services-Reno, LLC, successor in interest to Saint Mary’s Health Care Corporation (“Ground Lessor”).
1.14     “Hazardous Material” means any radioactive, hazardous or toxic substance, material or waste which is regulated by any local governmental authority, the State or the United States Government.  The term “Hazardous Material” includes, without limitation, any material or substance which is (i) defined as a “hazardous waste,” “extremely hazardous waste” or “restricted hazardous waste” or “hazardous substance” under any state or federal law, (ii) asbestos, (iii) lead, and/or (iv) petroleum.   
1.15     “Hospital Leases” means Leases to Ground Lessor (as a tenant of the Property). 
1.16     “Improvements” means all of Seller’s interest in the building located on the Real Property, associated parking and landscaped areas and all other improvements located on the Real Property.
1.17     “Leases” means all leases (including, without limitation, the Hospital Leases), use licenses, rental agreements or occupancy agreements, and all amendments and supplements thereto, relating to all or any portion of the Property (together with all rents, issues and profits thereunder) as set forth on the Rent Roll, and all of Seller’s right title and interest in and to all guarantees, letters of credit and other similar credit enhancements providing additional security for such Leases.  
1.18     “Licenses and Permits” means (A) all assignable licenses, permits, certificates of occupancy, approvals, dedications, subdivision maps and entitlements issued, approved or granted by Authorities or otherwise in connection with the Property, (B) all assignable right, title and interest of Seller in and to any and all trade names and logos used by Seller in the operation and identification of the Property; (C) any and all assignable development rights and other intangible rights, titles, interests, privileges and appurtenances owned by Seller used in connection with the Property and its operation; (D) assignable maps, building inspection approvals and covenants, conditions and restrictions, reciprocal easement agreements, area easement agreements and other common or planned development agreements affecting the Property; and (E) all assignable use licenses, consents, easements, rights of way and approvals required from private parties to make use of utilities and to insure vehicular and pedestrian ingress and egress to the Property.
1.19     “Official Records” means the Official Records of the County.
1.20     “Opening of Escrow” means the date on which a fully executed copy of this Agreement is delivered to Escrow Holder by Buyer and Seller.
1.21     “Personal Property” means all personal property, equipment, supplies and fixtures owned by Seller which are located at and used in the operation of the Real Property.

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1.22     “Property” means, collectively, Seller’s right, title and interest to and in (a) the Real Property (comprised of Seller’s ground leasehold interest under the Ground Lease); (b) the Personal Property, Improvements, Warranties, Records and Plans, Leases and Service Contracts; (c) all appurtenances, streets, alleys, easements, right-of-way in or to all streets or other interests in, on, across, in front of, abutting or adjoining the Real Property, if any; (d) appurtenances which are used in connection with the Real Property, if any; and (e) all development rights, air rights, water rights, water stock, entitlements, minerals, and oil and gas privileges and rights, if any, which pertain to the Real Property.
1.23     “Real Property” means that certain real property located in the City and County more particularly described in Exhibit “A” attached hereto and incorporated herein by this reference, together with all right, title and interest of the Seller in and to all streets, alleys, easements and rights-of-way in, on, across, in front of, abutting or adjoining said real property.
1.24     “Records and Plans” means all surveys, grading plans, topographical maps, and all engineering, soils, seismic, geologic, environmental contamination and architectural reports, studies and certificates pertaining to the Property.
1.25      “Rent Roll” means a listing of all tenants of the Property, identifying, among other things, the tenant name, suite number, rentable square footage leased, base rent and security deposit.
1.26     “Service Contracts” means the service contracts, maintenance contracts, operating contracts, management contracts, warranties, guarantees, bonds, listing agreements, parking contracts and like contracts and agreements solely relating to the Property and to which Seller or Seller’s property manager are a party, together with all supplements, amendments and modifications thereto as set forth on Schedule 1.26 hereto, and specifically excluding that certain Management Agreement by and between Seller and Seller’s property manager, and any other Service Contracts Buyer elects not to assume pursuant to Paragraph 14.2 below.
1.27     “Tenants” means the tenants under the Leases.
1.28     “Title Company” means First American Title Insurance Company.
1.29     “To the best of Seller’s knowledge” or other references herein to Seller’s knowledge mean the actual knowledge (without duty of investigation) of Randy McGrane (such individual, “Seller’s Representative”).  Seller represents that Randy McGrane is the individual on behalf of Seller with the most knowledge of the matters which are the subject of the representations and warranties set forth in Paragraph 13 below and the individual to whom material facts relevant to such matters would be reported in the ordinary course, provided that Randy McGrane shall not be subject to personal liability for such representations and warranties and the transactions contemplated by this Agreement.
1.30     “Warranties” means Seller’s right, title and interest in and to any assignable guarantees and warranties relating to the use and operation of the Property
2.     Purchase and Sale.  Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, the Property upon the terms and conditions set forth in this Agreement.

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3.     Purchase Price.  The Purchase Price (“Purchase Price”) for the Property shall be Sixty-Six Million Two Hundred Fifty Thousand Dollars ($66,250,000).
4.     Payment of Purchase Price. The Purchase Price shall be paid as follows:
4.1     Deposit.  Within three (3) Business Days after the Opening of Escrow, Buyer shall deposit with Escrow Holder via wire transfer in immediately available U.S. funds made payable to Escrow Holder in the amount of Two Million Dollars ($2,000,000) (together with all interest that is earned thereon, the “Deposit”).  The Deposit shall be fully refundable to Buyer up through and including the Contingency Date such that if Buyer elects to terminate this Agreement on or before the Contingency Date (which Buyer may do for any reason or no reason at all in Buyer’s sole and absolute discretion), then the Deposit shall be fully refunded to Buyer.  If Buyer has not elected to terminate this Agreement on or before the Contingency Date, then the Deposit shall thereafter be non-refundable unless the Closing does not occur due to Seller’s default, the failure of an express closing condition after the Contingency Period in favor of Buyer under this Agreement to be performed or satisfied, a termination under Paragraph 13 below, a termination under Paragraph 16 below, or a termination under Paragraph 25 below.  Upon the Close of Escrow, the Deposit shall be credited toward payment of the Purchase Price.
4.2     Cash Balance.  On or before the Closing Date, Buyer shall deposit or cause to be deposited with Escrow Holder, by wire transfer, the balance of the Purchase Price (i.e. the Purchase Price minus the Deposit), plus or minus Buyer’s share of closing costs and prorations as set forth in this Agreement.
5.     Condition of Title.  At the Close of Escrow, Seller shall convey to Buyer the Property by means of an assignment of the Ground Lease and a deed for the Improvements, subject only to the following matters (“Approved Title Conditions”):  (A) a lien for general real property taxes, not then delinquent; (B) matters of title respecting the Real Property approved by Buyer in accordance with Paragraph 7.1.1 below; and (C) matters affecting the condition of title to the Property created by or with the written consent of Buyer.
6.     Escrow.  Buyer and Seller shall promptly cause the Opening of Escrow by delivering a fully executed copy of this Agreement to Escrow Holder.  The Close of Escrow shall occur on the date the Deed is recorded in the Official Records, or such earlier date on which the Title Company unconditionally commits to issue the Title Policy referred to below (i.e., a “gap closing”).  Pursuant to Section 6045 of the Internal Revenue Code of 1986, as amended, Escrow Holder shall be designated the “closing agent” hereunder and shall be designated solely responsible for complying with the Tax Reform Act of 1986, as amended (together with all U.S. Treasury Regulations applicable thereto, the “Tax Code”) with regard to reporting all settlement information to the Internal Revenue Service.  Escrow Holder executes this Agreement to acknowledge its agreement to (i) serve as escrow agent in connection with the transaction contemplated hereunder, and (ii) file all information returns required under the Tax Code in respect of such transactions and furnish to the Seller any statements required under the Tax Code in respect of such transactions.  Escrow Holder further acknowledges receipt of the foregoing instructions and agrees to hold and dispose of the funds and documents deposited in escrow in accordance with these instructions.

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7.     Conditions to the Close of Escrow.
7.1     Conditions Precedent to Buyer’s Obligations.  The Close of Escrow and Buyer’s obligations with respect to the transaction contemplated by this Agreement are subject to the satisfaction, not later than the Closing Date (unless otherwise provided), of the following conditions, and the obligations of the parties with respect to such conditions are as follows.
7.1.1     (a)    Title.  At Closing, Title Company shall issue an ALTA Standard Coverage 2006 Ground Leasehold Policy of Title Insurance  showing a ground leasehold estate in the Property vested in Buyer, subject only to the Approved Title Conditions, with liability in the amount of the Purchase Price (the “Title Policy”).  Any “extended coverage” or other endorsements to the Title Policy desired by Buyer shall be obtained by Buyer at its sole cost and expense and shall in no event be a condition to the Close of Escrow, unless Seller has agreed to provide such endorsement in order to cure a title objection pursuant to Seller’s Title Notice (as defined below).  In furtherance of the foregoing, prior to the Closing, Buyer shall have approved the legal description of the Real Property attached hereto as Exhibit “A” and any matters of title disclosed by the following documents (collectively, the “Title Documents”), which shall be delivered to Buyer at Seller’s sole cost and expense:  (A) a standard ALTA title commitment dated no later than thirty (30) days prior to the Execution Date of this Agreement issued by the Title Company, with respect to the Real Property; (B) the most recent as-built survey of the Real Property in Seller’s possession or control (“Seller’s As‐Built Survey”); and (C) legible copies of all  recorded documents referred to in such title commitment.  Seller has delivered the Title Documents to Buyer concurrently with or prior to the execution hereof.  Buyer shall have until the date that is fifteen (15) days after the Execution Date to give Seller and the Escrow Holder written notice (“Buyer’s Title Notice”) of Buyer’s disapproval of any matters shown in the Title Documents. The failure of Buyer to timely give Buyer’s Title Notice shall be deemed to constitute Buyer’s approval of the legal description and all Title Documents and matters and conditions set forth therein and waiver of Buyer’s contingency related to review of title matters.  If Buyer disapproves of any matters of title shown in the Title Documents by delivering Buyer’s Title Notice (noting such disapproval), then Seller shall have the right, but not the obligation, to indicate which items Seller shall eliminate from the Title Policy (and as exceptions to title to the Property), and the manner in which Seller shall do so, by delivering written notice thereof to Buyer (“Seller’s Title Notice”) within two (2) days after receiving Buyer’s Title Notice.  Seller shall not have any right to deliver Seller’s Title Notice unless Buyer delivers Buyer’s Title Notice.  If Seller fails to timely deliver Seller’s Title Notice, then Seller shall be deemed to have elected not to correct any of the matters disclosed in Buyer’s Title Notice and Buyer may elect, at its option, to either cancel this Agreement and receive a refund of the Deposit in accordance with Paragraph 7.3 below or waive its objection and proceed to Closing, subject to the satisfaction of the other terms and provisions of this Agreement.  Buyer shall have the right to disapprove Seller’s Title Notice, or Seller’s election not to cure any matters disclosed in Buyer’s Title Notice, as applicable, by delivering written notice thereof to Seller within three (3) days after the earlier of (A) receipt of Seller’s Title Notice, or (B) the deadline for delivery of Seller’s Title Notice (the “Buyer’s Second Title Notice”); and Buyer’s failure to timely do so shall be deemed to constitute Buyer’s approval of Seller’s Title Notice.  If Buyer approves (or is deemed to approve, as aforesaid) Seller’s Title Notice, then by the Closing Date Seller shall eliminate those disapproved matters which Seller has agreed to eliminate in Seller’s Title Notice from the Title Policy.  Notwithstanding anything contained in this Paragraph 7.1.1 

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to the contrary, Seller shall be obligated, at its sole cost and expense, to satisfy or cause to be removed from title, at or prior to Closing, all monetary encumbrances affecting the Property evidenced by deeds of trust, tax liens, judgments, mechanics’ liens and/or other liens or charges in a fixed sum regardless of whether Buyer objects to such matters, and if such monetary encumbrances are not discharged or removed prior to Closing, Seller authorizes the use of the Purchase Price or a portion thereof to pay and discharge the same at Closing.
(b)    Survey.  Buyer shall obtain, at Buyer’s expense, an ALTA survey of the Property (the “Survey”) if desired by the Buyer, including if required by the Title Company in connection with any “extended coverage” addition to the Policy desired by Buyer.  If the Survey reflects any encroachments, overlaps, unrecorded easements or similar rights in third parties, or any other adverse matters not specifically provided for in this Agreement to which Buyer objects, Buyer shall include such objections in Buyer’s Title Notice.  Buyer’s failure to include any such objection in Buyer’s Title Notice, shall be deemed a waiver of any objection to the Survey and the matters contained therein, and any right of Buyer to cancel this Agreement on the basis thereof shall be deemed waived.
7.1.2     Review and Approval of Documents and Materials.  Prior to the Execution Date, Seller delivered to Buyer complete copies of all of the information set forth on Schedule 7.1.2, attached hereto and made a part hereof (collectively, the “Materials”).  Prior to 5:00 p.m. Pacific time on the Contingency Date (the period from the Execution Date until 5:00 p.m. Pacific time on the Contingency Date, the “Contingency Period”), Buyer may review the Materials.  Except as otherwise set forth in Paragraph 13 below, Seller makes no representations or warranties of any kind whatsoever to Buyer as to the accuracy or completeness of the content of the Materials or any other information delivered to or made available to Buyer pursuant to this Agreement, and Seller shall not have any liability or responsibility to Buyer with respect to the accuracy or completeness of any of the Materials or other information or based upon or arising out of any use Buyer may make of the Materials or other information.  Buyer shall have the right to approve or disapprove the Materials in Buyer’s sole discretion by delivering written notice thereof to Seller and Escrow Holder on or before 5:00 p.m. Pacific time on the Contingency Date.  Buyer’s timely notice of disapproval of any of the Materials shall constitute Buyer’s election to terminate this Agreement and receive a refund of the Deposit in accordance with Paragraph 7.3 below.  Buyer’s failure to timely disapprove the Materials shall be deemed to constitute Buyer’s approval thereof and waiver of this condition.  
7.1.3     Inspections and Studies.  Subject to the provisions of Paragraph 19 below, Buyer may conduct such inspections, investigations, tenant interviews, tests and studies (including, without limitation, investigations with regard to zoning, and other government regulations, engineering tests, economic feasibility studies and soils, seismic, environmental contamination and geologic reports) with respect to the Property as Buyer may elect to make or obtain in Buyer’s sole discretion (“Due Diligence Inspections”).  The cost of any such Due Diligence Inspections, tests and studies shall be borne by Buyer.  Buyer shall have the right to approve or disapprove the Due Diligence Inspections or any other matter whatsoever regarding the Property in Buyer’s sole discretion.  Buyer’s delivery to Seller on or before 5:00 p.m. Pacific time on the Contingency Date of a notice of disapproval of any of the Due Diligence Inspections or any other matter with respect to the Property shall constitute Buyer’s election to terminate this Agreement and receive a refund of the Deposit in accordance with Paragraph 7.3 below.  The 

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failure of Buyer to provide to Seller written notice of such disapproval by 5:00 p.m. Pacific time on the Contingency Date shall be deemed to constitute its approval of the results of the Due Diligence Inspections and the Property and waiver of this condition.  If Buyer provides (or is deemed to have provided as aforesaid) its approval of the results of its Due Diligence Inspections, Buyer shall proceed to Closing, subject to the satisfaction of the other conditions precedent to closing set forth in this Agreement and Seller’s performance of its obligations under this Agreement.
7.1.4     Ground Lessor Estoppels.  On or before the date which is two (2) business days prior to the Closing Date (the “Ground Lessor Estoppel Delivery Date”), Seller shall have delivered to Buyer estoppel certificates substantially in the form of Exhibits “I-1” and “I-2” hereto (such certificates, the “Ground Lessor Estoppel Certificates”; such delivery requirement, the “Ground Lessor Estoppel Delivery Requirement”); provided, however, that if Seller has not obtained the Ground Lessor Estoppel Certificates by the Ground Lessor Estoppel Delivery Date, Seller may, at its election, extend the Closing Date for thirty (30) days to try to obtain such Ground Lessor Estoppel Certificates.  Such Ground Lessor Estoppel Certificates shall be consistent with the Ground Lease, shall not reveal any default by any party thereto, shall be dated no earlier than thirty (30) days prior to Closing, and shall be otherwise reasonably acceptable to Buyer (provided that a form(s) without material deviations from the forms attached hereto as Exhibits “I-1” and “I-2” and which does not disclose any material adverse facts or information inconsistent with the Ground Lease that has not previously been disclosed in writing to Buyer prior to the delivery of the Ground Lessor Estoppel Certificates shall be deemed acceptable).  If Seller has not satisfied the Ground Lessor Estoppel Delivery Requirement by the Ground Lessor Estoppel Delivery Date, as may be extended, Buyer may elect, by providing Seller its written notice of such election, to (i) terminate the Agreement pursuant to Paragraph 7.3, or (ii) waive such condition and proceed to the Closing.  In the event that Buyer terminates the Agreement due to a failure of this condition precedent, Buyer shall be entitled to receive from Seller reimbursement of Buyer’s actually incurred out of pocket expenses incurred in connection with pursuing the transactions contemplated by this Agreement, including without limitation Buyer’s attorneys’ fees (not to exceed $100,000).  For the avoidance of doubt, the foregoing reimbursement obligation shall survive any termination of this Agreement.
7.1.5     Tenant Estoppel Certificates.  On or before the date which is two (2) business days prior to the Closing Date (the “Estoppel Delivery Date”), Seller shall have delivered to Buyer an Estoppel Certificate in the form of (i) for tenants under Hospital Leases, Exhibit “D‐1” attached hereto, (ii) for tenants under other Leases, Exhibit “D‐2” attached hereto, or (iii) in either case, in such form as is required pursuant to the applicable Lease (the “Estoppel Certificate”) from tenants leasing no less than the Estoppel Certificate Percentage (the “Estoppel Delivery Requirement”).  No later than three (3) Business Days prior to the date on which Seller intends to distribute the Estoppel Certificates to the Tenants for their completion and execution, Seller shall deliver the draft Estoppel Certificates to Buyer for Buyer’s review and approval, which approval shall not be unreasonably withheld.  If Seller is unable to deliver timely to Buyer the appropriate number of Estoppel Certificates to satisfy the Estoppel Delivery Requirement, Seller may, but without any obligation to do so, deliver to Buyer prior to the Close of Escrow, in lieu of an Estoppel Certificate executed by tenants, the necessary number of Estoppel Certificates executed by Seller (the “Seller Estoppel”), in substantially the form attached hereto as Exhibit “H”, in order to satisfy the Estoppel Delivery Requirement; provided, 

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however, Seller shall not be permitted to deliver (i) Seller Estoppels with respect to any Hospital Leases, or (ii) Seller Estoppels for more than twenty percent (20%) of the other leased rentable square footage of the Building(s).  The Seller Estoppels executed by Seller shall be subject to the limitations contained in Sections 13 and 20.3, and shall be deemed automatically null and void upon the delivery of an Estoppel Certificate from the tenant for whom Seller delivered a Seller Estoppel.  Such Estoppel Certificates shall be consistent with the respective Lease, shall not reveal any default by Seller and/or Tenant, any right to offset rent by the Tenant, or any claim of the same, be dated no earlier than thirty (30) days prior to Closing and shall be otherwise reasonably acceptable to Buyer provided, however, notwithstanding the foregoing or anything to the contrary set forth in this Agreement, Buyer may only disapprove an executed Estoppel Certificate if it (a) discloses material adverse economic terms of the applicable lease that were not disclosed to Buyer in writing (whether in the applicable lease or any other document delivered to Buyer) prior to the date of the delivery of such Estoppel Certificate to Buyer, (b) alleges a default of Seller (as landlord) under the applicable lease, (c) discloses a dispute between the landlord and a tenant in connection with the applicable Lease, (d) discloses facts that would constitute a default by Tenant under the applicable lease, (e) discloses terms or information that is inconsistent with the terms of the applicable lease, or (f) discloses other oral or written agreements to which Seller and Tenant are parties or are otherwise bound, which agreements were not disclosed to Buyer in writing (whether in the applicable lease or any other document delivered to Buyer) prior to the date of the delivery of such Estoppel Certificate to Buyer; otherwise, the applicable Estoppel Certificate (or Seller Estoppel, as applicable) shall be deemed acceptable to and approved by Buyer.  Buyer shall have three (3) Business Days after receipt of each such executed Estoppel Certificate to approve or reasonably disapprove the applicable Estoppel Certificate so received.  Notwithstanding the foregoing, if Seller has not satisfied the Estoppel Delivery Requirement by the Estoppel Delivery Date, Seller shall have the right, by delivering written notice to Buyer prior to 5:00 p.m. Pacific time, on the Estoppel Delivery Date, to extend the Estoppel Delivery Date for up to thirty (30) days in order to obtain sufficient estoppel certificates to satisfy the Estoppel Delivery Requirement prior to the Closing Date.  If as a result of such extension, the Estoppel Delivery Date would be a date later than the Closing Date, the Closing Date shall also be extended to be the date which is five (5) Business Days following the extended Estoppel Delivery Date.  In the event Seller is unable to obtain Estoppel Certificates (or Seller Estoppels, if applicable) sufficient to satisfy the Estoppel Delivery Requirement by the Estoppel Delivery Date (as it may be extended by Seller as provided above), Buyer may elect to (i) terminate the Agreement and Escrow pursuant to Paragraph 7.3 below, or (ii) waive such condition and proceed to the Closing.  
7.1.6     Representations, Warranties and Covenants of Seller.  Seller shall have duly performed each and every agreement to be performed by Seller hereunder and Seller’s representations, warranties and covenants set forth in this Agreement shall be true and correct in all material respects as of the date hereof and, subject to any Representation Matters, as of the Closing Date, with the same force and effect as if remade by Seller in a separate certificate at that time.
7.1.7     Seller’s Deliveries.   Seller shall have delivered the items described in Paragraph 7.1, Paragraph 8.1 and Paragraph 9.

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7.1.8     Title Insurance.  As of the Close of Escrow, the Title Company shall have issued or shall have committed to issue the Title Policy to Buyer.
7.1.9     Declaration/Utility Agreement Estoppel.  On or before the date which is two (2) business days prior to the Closing Date (the “Declaration/Utility Agreement Estoppel Delivery Date”), Seller shall have delivered to Buyer an estoppel certificate substantially in the form of Exhibit “J” hereto (such certificate, the “Declaration/Utility Agreement Estoppel Certificate”; such delivery requirement, the “Declaration/Utility Agreement Estoppel Delivery Requirement”); provided, however, that if Seller has not obtained the Declaration/Utility Agreement Estoppel Certificate by the Declaration/Utility Agreement Delivery Date, Seller may, at its election, extend the Closing Date for thirty (30) days to try to obtain such Declaration/Utility Agreement Estoppel Certificate.  Such Declaration/Utility Agreement Estoppel Certificate shall not reveal any default by any party thereto, shall be dated no earlier than thirty (30) days prior to Closing, and shall be otherwise reasonably acceptable to Buyer (provided that a form without material deviations from the form attached hereto as Exhibit “J” and which does not disclose any material adverse facts or information that has not previously been disclosed in writing to Buyer prior to the delivery of the Declaration/Utility Agreement Estoppel Certificate shall be deemed acceptable).  If Seller has not satisfied the Declaration/Utility Agreement Estoppel Delivery Requirement by the Declaration/Utility Agreement Estoppel Delivery Date, as may be extended, Buyer may elect, by providing Seller its written notice of such election, to (i) terminate the Agreement pursuant to Paragraph 7.3, or (ii) waive such condition and proceed to the Closing.  In the event that Buyer terminates the Agreement due to a failure of this condition precedent, Buyer shall be entitled to receive from Seller reimbursement of Buyer’s actually incurred out of pocket expenses incurred in connection with pursuing the transactions contemplated by this Agreement, including without limitation Buyer’s attorneys’ fees (not to exceed $100,000).  For the avoidance of doubt, the foregoing reimbursement obligation shall survive any termination of this Agreement.
The conditions set forth in Paragraph 7.1 are solely for the benefit of Buyer and may be waived only by Buyer in writing to Seller.  Buyer shall at all times have the right to waive any condition under this Paragraph 7.1.  Any such waiver or waivers shall be in writing and shall be delivered to Seller and Escrow Holder.  All approvals or disapprovals given by Buyer under this Paragraph 7.1 shall be in Buyer’s sole and absolute discretion (for any reason or no reason at all) and in writing and the failure of Buyer to approve any matter requiring its approval under this Paragraph 7.1 by the time therefor shall be deemed disapproval thereof by Buyer.
7.2     Conditions Precedent to Seller’s Obligations.  The Close of Escrow and Seller’s obligations with respect to the transaction contemplated by this Agreement are subject to (a) Buyer’s delivery to Escrow Holder on or before the Closing Date, for disbursement as provided herein, of the Purchase Price, and the documents and materials described in Paragraph 8.2, (b) all representations and warranties of Buyer contained in Paragraph 15 of this Agreement being true and correct in all material respects as of the date made and as of the Close of Escrow with the same effect as if those representations and warranties were made at and as of the Close of Escrow, and (c) Buyer not being in material default in the performance of any material covenant or agreement to be performed by Buyer under this Agreement.  

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The conditions set forth in this Paragraph 7.2 are solely for the benefit of Seller and may be waived only by Seller in writing to Buyer.  Seller shall at all times have the right to waive any condition under this Paragraph 7.2.  Any such waiver or waivers shall be in writing and shall be delivered to Buyer and Escrow Holder.  
7.3     Failure of Conditions to Close of Escrow.  In the event any of the conditions set forth in Paragraph 7.1 or Paragraph 7.2 are not timely satisfied or waived as aforesaid in Paragraph 7.1 or 7.2, as applicable, for a reason other than the default of Buyer or Seller under this Agreement:
7.3.1     This Agreement, the Escrow and the rights and obligations of Buyer and Seller shall terminate, except as otherwise provided herein; and
7.3.2     Escrow Holder is hereby instructed to promptly return to Seller and Buyer all funds and documents deposited by them, respectively, into Escrow which are held by Escrow Holder on the date of said termination (less, in the case of the party otherwise entitled to such funds, however, the amount of any cancellation charges required to be paid by such party under Paragraph 7.3.3). No notice to Escrow Holder from Seller shall be required for the release of the Deposit to Buyer by Escrow Holder in the event of a termination by Buyer pursuant to Paragraphs 7.1.1, 7.1.2, or 7.1.3 above, and the Deposit shall be released and delivered to Buyer upon Escrow Holder’s receipt of Buyer’s confirmation of termination of the Agreement pursuant to Paragraphs 7.1.1, 7.1.2, or 7.1.3 above, despite any objection or potential objection by Seller.
7.3.3     Cancellation Fees and Expenses.  In the event the Escrow terminates because of the nonsatisfaction of any condition precedent for a reason other than the default of Buyer or Seller under this Agreement, the cancellation charges required to be paid by and to Escrow Holder and the Title Company shall be borne one-half (1⁄2) by Seller and one-half (1⁄2) by Buyer and all other charges shall be borne by the party incurring same.
8.     Deliveries to Escrow Holder.
8.1     By Seller.  Seller hereby covenants and agrees to deliver or cause to be delivered to Escrow Holder on or before the Closing Date the following instruments and documents, the delivery of each of which shall be a condition precedent to the Close of Escrow for the benefit of Buyer.
8.1.1     Ground Lease Assignment.  Seller shall deliver to Escrow Holder one (1) original of an assignment of the Ground Lease (the “Ground Lease Assignment”), duly executed by Seller.  The Ground Lease Assignment shall be in the form of, and upon the terms contained in Exhibit “B” attached hereto.
8.1.2     General Assignment and Bill of Sale.  Seller shall deliver to Escrow Holder one (1) original of the General Assignment and Bill of Sale (“General Assignment”), duly executed by Seller, assigning to Buyer, to the extent assignable, all of Seller’s right, title and interest in and to all Leases, Service Contracts, Licenses and Permits, Records and Plans and Warranties.  The General Assignment shall be in the form of, and upon the terms contained in, Exhibit “C” attached hereto. 

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8.1.3     Memorandum of Ground Lease Assignment.  Seller shall deliver to Escrow Holder an executed and acknowledged Memorandum of Ground Lease Assignment (the “Memorandum of Ground Lease Assignment”).  The Memorandum of Ground Lease Assignment shall be in the form of that attached hereto as Exhibit “E”.
8.1.4     Non-Foreign Certification.  Seller shall deliver to Escrow Holder a certification duly executed by Seller under penalty of perjury in the form of, and upon the terms set forth in, the Transferor’s Certification of Non-Foreign Status attached hereto as Exhibit “F” (“FIRPTA Certificate”), setting forth Seller’s address and federal tax identification number and certifying that Seller is a “United States Person” and that Seller is not a “foreign person” in accordance with and/or for the purpose of the provisions of Sections 7701 and 1445 (as may be amended) of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder.
8.1.5     Proof of Authority.  Seller shall deliver to Escrow Holder such proof of Seller’s authority and authorization to enter into this Agreement and consummate the transaction contemplated hereby, and such proof of the power and authority of the individual(s) executing and/or delivering any instruments, documents or certificates on behalf of Seller to act for and bind Seller as may be reasonably required by Title Company and/or Buyer.
8.1.6     Title Affidavits.  Seller shall deliver to Escrow Holder (i) an affidavit to Title Company by Seller that there are no unrecorded easements and that Seller has exclusive possession of the Property, subject to Leases and Approved Title Conditions, in a commercially reasonable form so as to delete the standard exceptions relating to such matters in the Title Policy; and (ii) a gap affidavit and indemnification agreement by Seller in commercially reasonable form for purpose of deleting the “gap” from the Title Policy.
8.1.7     Tenant Notification Letter.  Seller shall deliver to Escrow Holder a letter to the Tenants (“Tenant Notification Letter”), duly executed by Seller and dated as of the Close of Escrow, notifying each Tenant that:  (A) the Property has been transferred to Buyer; (B) all of Seller’s right, title and interest in and to the Leases have been assigned to Buyer; and (C) commencing immediately, all rent and other payments and any notices under the Leases are to be paid and sent to Buyer.  The form and content of the Tenant Notification Letter shall be satisfactory to Buyer in its reasonable discretion.
8.1.8     Deed.  A Grant, Bargain and Sale Deed (the “Deed”) in the form of Exhibit “G” attached hereto, duly executed and acknowledged in recordable form by Seller, conveying Seller’s interest in the Improvements to Buyer.
8.1.9     Closing Statement.  Seller’s executed counterpart of a closing statement reflecting adjustments and prorations to be made at Closing (the “Closing Statement”).
8.2     By Buyer.  Buyer hereby covenants and agrees to deliver or cause to be delivered to Escrow Holder upon or prior to the Closing Date the following instruments and documents, the delivery of each of which shall be a condition precedent to the Close of Escrow for the benefit of Seller.

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8.2.1     Purchase Price.  Buyer shall deliver to Escrow Holder the Purchase Price in accordance with Paragraphs 3 and 4.
8.2.2     Documents.  Buyer shall deliver to Escrow Holder one (1) original of each of the Ground Lease Assignment and the General Assignment duly executed by Buyer and one (1) original of the Memorandum of Ground Lease Assignment executed and acknowledged by Buyer.
8.2.3     Proof of Authority.  Buyer shall deliver to Escrow Holder such proof of Buyer’s authority and authorization to enter into this Agreement and consummate the transaction contemplated hereby, and such proof of the power and authority of the individual(s) executing and/or delivering any instruments, documents or certificates on behalf of Buyer to act for and bind Buyer as may be reasonably required by Title Company and/or Seller.
8.2.4     Prorations.  Buyer shall deliver to Escrow Holder the amount due to Seller, if any, after the prorations are computed in accordance with Paragraph 11.
8.2.5     Closing Statement.  Buyer’s executed counterpart of the Closing Statement.
9.     Deliveries to Buyer Upon Close of Escrow.  Seller shall deliver possession of the Property to Buyer upon the Close of Escrow (unless otherwise provided).  Further, Seller hereby covenants and agrees to deliver to Buyer, on or prior to the Closing Date, the following items (to the extent in Seller’s possession or within Seller’s reasonable control), the delivery of each of which shall be a condition to the performance by Buyer of its obligations under the terms of this Agreement:
9.1     Leases.  Seller shall deliver to Buyer originals of all the Leases or, to the extent an original Lease is unavailable, a duplicate original thereof with a certificate executed by Seller warranting the completeness and authenticity of such duplicate original;
9.2     Rent Roll.  Seller shall deliver to Buyer the Rent Roll, updated as of the Closing Date;
9.3     Service Contracts.  Seller shall deliver to Buyer originals of all Service Contracts, or, to the extent an original Service Contract is unavailable, a duplicate original thereof;
9.4     Records, Plans and Warranties.  Seller shall deliver to Buyer originals, to the extent available, or copies of the Records, Plans and Warranties.  
9.5     Licenses and Permits.  Seller shall deliver to Buyer originals of all Licenses and Permits or, to the extent an original of a License or Permit is unavailable, a duplicate original thereof; and
10.     Costs and Expenses.  If the transaction contemplated by this Agreement is consummated, then upon the Closing Seller shall pay (A) the premium for the standard coverage portion of the Title Policy and the cost of any endorsements issued to cure a title objection that 

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Seller elected to cure in Seller’s Title Notice, (B) one‐half (1⁄2) of all escrow fees and costs, (C) all costs related to the release of disapproved title matters pursuant to Paragraph 7.1.1 above, (D) all real property transfer taxes (also known as RPTT), and (E) Seller’s share of prorations.  If the transaction contemplated by this Agreement is consummated, then upon the Closing Buyer shall pay (W) the incremental additional premium (if any) for the extended coverage portion of the Title Policy and the cost of any endorsements to the extent in excess of the premium set forth in (A) above, (X) all document recording charges, (Y) one‐half (1⁄2) of all escrow fees and costs, and (z)  Buyer’s share of prorations.  Buyer and Seller shall each pay their own legal and professional fees.  All other costs and expenses shall be allocated between Buyer and Seller in accordance with the customary practice in the County.
11.     Prorations.  All revenues and expenses relating to the Property, including without limitation, real property taxes and assessments, rent payable under the Ground Lease, utility charges and the like, shall be prorated on an accrual basis as of the Close of Escrow; provided, however, rentals shall be prorated on a cash received basis.  Such proration shall be made as of 12:01 a.m. midnight (Pacific time) on the Closing Date (the “Proration Time”).  If any rents under any of the leases for space at the Property shall be accrued and unpaid at the Closing Date, the rents collected by Buyer on or after the Closing Date shall first be applied to rents due at the time of such collection on or after the Closing Date, with the balance payable to the Seller to the extent of rents delinquent as of the Closing Date; provided that Buyer shall use commercially reasonable diligent efforts to collect any delinquent rents, but shall not be required to institute any proceeding or incur any material out-of-pocket costs to collect any rents accrued and unpaid on the Closing Date.  Seller, at its sole cost, shall be entitled to bring such actions or proceedings against tenants provided that such actions do not affect such tenant’s possession.  To the extent that Tenants are reimbursing the landlord for common area maintenance and other operating expenses (collectively, “CAM Charge(s)”), CAM Charges shall be prorated at Closing as of the Proration Time on a lease-by-lease basis with each party being entitled to receive a portion of the CAM Charges payable under each Lease for the CAM Lease Year (as defined below) in which Closing occurs, which portion shall be equal to the actual CAM Charges incurred during the party’s respective periods of ownership of the Property during the CAM Lease Year. As used herein, the term “CAM Lease Year” means the twelve (12) month period as to which annual CAM Charges are owed under each Lease. Seller shall be responsible for the CAM Charges reconciliation on a lease-by-lease basis for their ownership period within the CAM Lease Year up to, but not including, the Closing Date. Buyer shall be responsible for the CAM Charges reconciliation on a lease-by-lease basis for their ownership period within the CAM Lease Year including the Closing Date. In the event of any expenses, i.e. property taxes, where a proration was based upon an estimate for the year of Closing, a post-Closing “true up” will be performed for the actual expense to determine the Seller and Buyer obligation for their ownership period for the year of Closing. Each party will be responsible to pay for any CAM Charges “true up” necessary to the extent that any Lease provides for a “true up”, which payment shall be based on such party’s period of ownership.  Seller shall pay over to or credit Buyer at Closing all cash security deposits (together with any interest required to be paid thereon) held by Seller pursuant to the leases of tenants at the Property.  Buyer shall receive a credit at Closing from the Seller in the amount of the sum of: (i) any and all rent concessions and/or rent abatements which related to the current lease term of the Leases that exist as of the date hereof and are unpaid, unapplied and/or unutilized; (ii) any and all tenant improvement allowances which relate to the current lease term of the Leases that exist as of the date hereof and are unpaid, unapplied and/or 

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unutilized; (iii) the cost, as estimated by the parties in their reasonable discretion, of any and all non-monetary tenant inducement obligations of the Seller, as landlord or lessor under the Leases that exist as of the date hereof, which relate to the current lease term of the Leases that exist as of the date hereof (e.g., painting and carpeting) and are unperformed; and (iv) any and all leasing commissions which relate to the current lease term of the Leases that exist as of the date hereof and are unpaid. Notwithstanding the foregoing, all tenant improvement costs and allowances and all brokerage commissions and finder’s fees shall be prorated with respect to all leases and lease modifications entered into between the Execution Date and the Closing Date based on the portion of the lease term that pertains to periods on or after the Closing, with Seller only being responsible for such costs multiplied by a fraction, the numerator of which is the number of days prior to the Closing that Seller has received rent from such tenant under the new lease or lease modification and the denominator of which is the total number of days in such new lease term, and Buyer being solely responsible for the balance of such costs.  If the parties are unable to obtain final meter readings from all applicable meters as of the Close of Escrow, such expenses shall be reasonably estimated as of the Close of Escrow on the basis of the prior operating history of the Property.  Real property taxes for the year of Closing shall be prorated on the basis of the most recent assessment and levy. If the most recent tax assessment and levy is not for the current tax year, then the parties shall reprorate within sixty (60) days of the receipt of the tax assessment and levy for the current tax year.  If after the Closing there is any retroactive increase or decrease in the real or personal property taxes or assessments (not caused by Buyer’s acquisition of the Property) imposed on the Property: (1) if such increase or decrease relates to the tax year in which the Closing occurred, then such increase or decrease shall be prorated by Seller and Buyer on a per diem basis based on their respective periods of ownership during their period to which such increase applies, (2) if such increase or decrease relates to any tax year subsequent to the tax year which the Closing occurred, then such increase or decrease shall be for the benefit of or be the obligation of Buyer, as appropriate, and (3) if such increase or decrease relates to any tax year prior to the tax year in which the Closing occurred, then such increase or decrease shall be for the benefit of or be the obligation of Seller, as appropriate.  Any and all refunds, credits, claims or rights to appeal respecting the amount of any real property taxes or other taxes or assessments charged in connection with the Property for any period after Closing shall belong to Buyer following the Closing, except that Seller shall be entitled to receive any refunds applicable to the period prior to Closing to the extent that Seller initiated a contest prior to Closing.  All monthly prorations shall be calculated on actual days of the applicable month and all annual prorations shall be calculated based on a 365‐day year.  Not less than five (5) business days prior to the Close of Escrow, Seller and Buyer shall agree upon a schedule of expenses and prorations (“Proration and Expense Schedule”).  If any prorations, apportionments or computations made under this Paragraph 11 shall require final adjustment because the information is unavailable at the Proration Time, then the parties shall make the appropriate adjustments promptly when accurate information becomes available and either party hereto shall be entitled to an adjustment to correct the same.  Such adjustments shall be made as soon as complete and accurate information becomes available, but in all events no later than 180 days after the Closing, except with respect to CAM Charges, taxes and assessments, in which case such adjustment shall be made within sixty (60) days after the information necessary to perform such adjustment is available.  If a party fails to request an adjustment to the Closing Statement by a written notice delivered to the other party within the applicable period set forth above (such notice to specify in reasonable detail the items within the Closing Statement that 

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such party desires to adjust and the reasons for such adjustment), then the prorations and credits set forth in the Closing Statement shall be binding and conclusive against such party.  Any corrected adjustment or proration shall be paid promptly by check or other settlement such as a wire transfer to the party entitled thereto.  The obligations of the parties under this Paragraph 11 shall survive the Close of Escrow until the date that is ninety (90) days after the end of the calendar year in which Closing occurs and shall not merge with the Deed.
12.     Disbursements and Other Actions by Escrow Holder.  At the Close of Escrow, Escrow Holder shall promptly undertake all of the following in the manner hereinbelow indicated.
12.1     Recording.  Escrow Holder shall cause the Deed, Memorandum of Ground Lease Assignment and any other documents which the parties hereto may mutually direct to be recorded in the Official Records and obtain conformed copies thereof for distribution to Buyer and Seller.
12.2     Funds.  Escrow Holder shall disburse all funds deposited with Escrow Holder by Buyer in payment of the Purchase Price in accordance with the Closing Statement, which will reflect that the Escrow Holder shall:
12.2.1     Deduct from the Purchase Price all items chargeable to the account of Seller pursuant to Paragraph 11;
12.2.2     If, as the result of the prorations and credits pursuant to Paragraph 11, amounts are to be charged to account of Seller, deduct from the Purchase Price  the total amount of such charges; 
12.2.3     Disburse the balance of the Purchase Price to Seller promptly upon the Close of Escrow; and
12.2.4     Disburse the remaining balance of the funds, if any, to Buyer promptly upon the Close of Escrow.
12.3     Title Policy.  Escrow Holder shall direct the Title Company to issue the Title Policy to Buyer.
12.4     Disbursement of Documents to Buyer.  Escrow Holder shall disburse to Buyer a conformed copy of the Deed and Memorandum of Ground Lease, and an original of the General Lease Assignment, the General Assignment, the FIRPTA Certificate and any other documents (or copies thereof) deposited into Escrow by Seller pursuant hereto. 
12.5     Disbursement of Documents to Seller.  Escrow Holder shall disburse to Seller a conformed copy of the Deed and Memorandum of Ground Lease Assignment, and copies of the Ground Lease Assignment and General Assignment.
13.     Seller’s Representations and Warranties.  In addition to any express agreements of Seller contained herein, the following constitute representations and warranties of Seller to Buyer:

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13.1     Power.  Seller has the legal power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transaction contemplated by this Agreement.
13.2     Requisite Action.  All requisite action (corporate, trust, partnership or otherwise) has been taken by Seller in connection with entering into this Agreement, the instruments referenced herein, and the consummation of the transaction contemplated by this Agreement.  No consent of any partner, shareholder, trustee, trustor, beneficiary, creditor, investor, judicial or administrative body, governmental authority or other party is required for Seller to consummate the transaction contemplated by this Agreement.
13.3     Individual Authority.  The individuals executing this Agreement and the instruments referenced herein on behalf of Seller and the partners of Seller, if any, have the legal power, right, and actual authority to bind Seller to the terms and conditions hereof and thereof.
13.4     No Conflict.  Neither the execution and delivery of this Agreement and the documents and instruments referenced herein, nor the occurrence of the obligations set forth herein, nor the consummation of the transaction contemplated herein, nor compliance with the terms of this Agreement and the documents and instruments referenced herein conflict with or result in the breach of any terms, conditions or provisions of, or constitute a default under, any bond, note, or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust, loan, partnership agreement, lease or other agreement or instrument to which Seller is a party or affecting the Property.
13.5     Bankruptcy.  Seller has not (a) commenced a voluntary case, or had entered against it a petition, for relief under any federal bankruptcy act or any similar petition, order or decree under any federal or state law or statute relative to bankruptcy, insolvency or other relief for debtors, (b) caused, suffered or consented to the appointment of a receiver, trustee, administrator, conservator, liquidator, or similar official in any federal, state, or foreign judicial or non-judicial proceeding, to hold, administer and/or liquidate all or substantially all of its assets, or (c) made an assignment for the benefit of creditors.
13.6     No Notice of Code Violations.  To Seller’s knowledge, Seller has not received any written notice from any governmental agency that the Property or any condition existing thereon or any present use thereof violates any law or regulations applicable to the Property.
13.7     No Litigation.  There is no litigation, arbitration, condemnation proceeding, or other legal or administrative suit, action, proceeding or investigation of any kind pending or, to Seller’s knowledge, threatened against or involving Seller or the Property or any part thereof.
13.8     No Rights of First Refusal.  There are no outstanding rights of first refusal, rights of reverter, or options to purchase relating to the Property or any interest therein, except as set forth in the Ground Lease.
13.9     Prohibited Persons and Transactions.  Neither Seller nor any of its affiliates, nor, to Seller’s knowledge, any of their respective members, and none of their 

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respective officers or directors is, nor prior to Closing or the earlier termination of this Agreement, will they become, a person or entity with whom U.S. persons or entities are restricted 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 Blocked Persons List) or under any U.S. 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 prior to Closing or the earlier termination of this Agreement will not knowingly engage in any dealings or transactions with or be otherwise associated with such persons or entities.
13.10     Agreements with Governmental Agencies.  Seller has not entered into any material commitments or agreements with any governmental authorities or agencies affecting the Property that would be binding on the Property or Buyer following Closing.
13.11     Leases.  Seller has delivered or made available to Buyer true and complete copies of the Leases.  The Rent Roll set forth on Schedule 13.11 attached hereto is true, correct and complete in all material respects.  To the best of Seller’s knowledge, each of the Leases is in full force and effect.  Seller is “landlord” or “lessor” under the Leases and is entitled to assign to Buyer, without the consent of any party, the Leases.  To the best of Seller’s knowledge, except as otherwise disclosed to Buyer in writing, neither Seller nor any Tenant is in default under its respective Lease, after the expiration of all applicable notice and cure periods, and no notice of default has been given by either Seller or Tenant under any Lease which remains uncured.  To the best of Seller’s knowledge, except as otherwise disclosed to Buyer in writing, no tenant has asserted any claim of offset or other defense in respect of its or Seller’s obligations under its respective Lease.  To the best of Seller’s knowledge, except as otherwise disclosed to Buyer in writing, no tenant has filed for bankruptcy or taken any similar debtor-protection measure, or discontinued operations at the Property (except as otherwise permitted by the Hospital Lease for “Flex Space”).  There are no tenant improvement allowances, non-monetary tenant improvement obligations of Landlord, leasing commissions and/or rent concessions with respect to the current term of any Tenant Lease, except as disclosed on Schedule 13.11 attached hereto or as otherwise set forth in any estoppel certificate delivered to Buyer.
13.12     Declarations.  Seller has not received any written notice from, and, to the best of Seller’s knowledge, there are no grounds for, any declarant or easement holder requiring the correction of any condition with respect to the Property, or any part thereof, by reason of a violation of any other restrictions or covenants recorded against the Property.
13.13     Hazardous Materials.  To Seller’s knowledge, except as disclosed in the Materials, Seller has not received written notice from any governmental authority of any violation of any laws, ordinances, statutes, codes, rules or regulations relating to Hazardous Materials (as defined below).  For purposes of this Agreement, the term “Hazardous Materials” shall mean any substance which is or contains:  (i) any “hazardous substance” as now or hereafter defined in Section 101(14) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.) (“CERCLA”) or any regulations promulgated under CERCLA; (ii) any “hazardous waste” as now or hereafter defined in the Recourse Conservation and Recovery Act (42 U.S.C.  

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Section 6901 et seq.) (“RCRA”) or regulations promulgated under RCRA; (iii) any substance regulated by the Toxic Substances Control Act (15 U.S.C. Section 2601 et. seq.); (iv) gasoline, diesel fuel or other petroleum hydrocarbons; (v) asbestos and asbestos containing materials, in any form, whether friable or non-friable; (vi) polychlorinated biphenyls; (vii) radon gas: and (viii) any additional substances or materials which are now or hereafter classified or considered to be hazardous or toxic under any laws, ordinances, statutes, codes, rules, regulations, agreements, judgments, orders and decrees now or hereafter enacted, promulgated, or amended, of the United States, the state, the county, the city or any other political subdivision in which the Property is located and any other political subdivision, agency or instrumentality exercising jurisdiction over the owner of the Property, the Property or the use of the Property relating to pollution, the protection or regulation of human health, natural resources or the environment, or the emission, discharge, release or threatened release of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances or waste into the environment (including, without limitation, ambient air, surface water, ground water or land or soil).  
13.14     Ground Lease.  Seller has delivered to Buyer a true and complete copy of the Ground Lease; the Ground Lease has not been amended or modified; and to the best of Seller’s knowledge, the Ground Lease is in full force and effect.  To the best of Seller’s knowledge, except as otherwise disclosed to Buyer in writing, neither Seller nor Ground Lessor is in default under the Ground Lease, after the expiration of all applicable notice and cure periods, and no notice of default has been given by either Seller or Ground Lessor under the Ground Lease which remains uncured.  To the best of Seller’s knowledge, except as otherwise disclosed to Buyer in writing, Ground Lessor has asserted no claim of offset or other defense in respect of its or Seller’s obligations under the Ground Lease.  To the best of Seller’s knowledge, except as otherwise disclosed to Buyer in writing, Ground Lessor has not filed for bankruptcy or taken any similar debtor-protection measure.  Seller has complied with the requirements set forth in Sections 14.2 and 14.8 of the Ground Lease as they pertain to the transactions contemplated by this Agreement.
13.15     Affiliated Tenants.  Seller is not affiliated with any of the Tenants.
13.16     Materials.  The copies of the Materials described as items 7, 8, 11, 12, 13 and 19 in Schedule 7.1.2 given by Seller to Buyer are accurate in all material respects and are complete copies of those used in the ordinary course of Seller’s business.
The representations and warranties of Seller set forth in this Paragraph 13 shall survive the Close of Escrow for a period of nine (9) months, but not thereafter, it being the intention of the parties that all suits or actions for breach of any such representations and warranties must be commenced, if at all, within said nine (9) months of the Close of Escrow or they shall be forever barred.  Notwithstanding the foregoing, if, prior to the Closing Date, Buyer or Seller should learn, discover or become aware of any existing or new item, fact or circumstance which renders a representation or warranty of Seller set forth herein incorrect or untrue in any material respect (collectively, the “Representation Matter”), then the party who has learned, discovered or become aware of such Representation Matter shall promptly give written notice thereof to the other party and Seller’s representations and warranties shall be automatically limited to account for the Representation Matter.  If, prior to the Closing Date, Buyer discovers or is notified of a Representation Matter that renders any representation or warranty of Seller materially untrue or 

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inaccurate, then Buyer shall have the right, as its sole remedy to terminate this Agreement and obtain a refund of the Deposit by providing written notice thereof to Seller no later than five (5) business days after Buyer learns or is notified of such Representation Matter; provided, however, Buyer shall have no right to terminate this Agreement for any Representation Matter arising from a change in circumstances that is otherwise permitted under this Agreement.  Notwithstanding the foregoing, (i) if any Tenant is estopped from making a claim against Buyer due to its delivery of an Estoppel Certificate to Buyer in connection with this transaction, then Buyer agrees to first assert a defense against such Tenant based on said estoppel before pursuing a claim against Seller for breach of any representation or warranty made by Seller hereunder which is discovered post‐Closing and relates to such estopped matter, and (ii) if such inaccuracy is due to a willful or intentional act by Seller or a breach by Seller of its covenants set forth in this Agreement, Buyer shall have the default remedies set forth in Paragraph 20.1 below.  Upon such termination, neither party hereunder shall have any further obligations or liabilities under this Agreement except as specifically set forth herein.  If Buyer does not timely terminate this Agreement, then Seller’s representations and warranties shall be automatically limited to account for the Representation Matter, Buyer shall be deemed to have waived Buyer’s right to pursue any remedy for breach of the representation or warranty made untrue on account of such Representation Matter, and the parties shall proceed to the Close of Escrow.
14.     Seller Covenants Prior to Closing.
14.1     New Leases; Ground Lease.  Seller hereby agrees that, (A) until the expiration of the Contingency Period or earlier termination of this Agreement in accordance with the terms hereof, Seller will not modify, extend, consent to any assignment, sublease or termination, or otherwise change any of the terms, covenants or conditions of the Leases or enter into new Leases affecting the Property without the prior written consent of Buyer, which consent shall not be unreasonably withheld (in the event Buyer has not responded to Seller’s written request for consent within three (3) Business Days after Seller’s delivery to Buyer of all pertinent information concerning such lease, obligation or agreement, Buyer shall be deemed to have consented thereto); provided that Buyer will not be permitted to withhold such consent unless such modification or change materially and adversely affects the term of the Lease or the economics of the Lease, or, in the case of an assignment, is an assignment to an entity that is not as creditworthy as the current Tenant, (B) following the expiration of the Contingency Period until the Closing provided this Agreement has not been terminated as provided herein, Seller will not modify, extend, consent to any assignment, sublease or termination or otherwise change any of the terms, covenants or conditions of the leases or enter into new leases affecting the Property without the prior written consent of Buyer, which consent may be withheld in Buyer’s sole but reasonable discretion (in the event Buyer has not responded to Seller’s written request for consent within three (3) Business Days after Seller’s delivery to Buyer of all pertinent information concerning such lease, obligation or agreement, Buyer shall be deemed to have consented thereto); and (C) from the Execution Date until Closing, provided this Agreement has not been terminated as provided herein, Seller will not modify, amend, or otherwise change any of the terms, covenants or conditions of the Ground Lease or any documents related to the Ground Lease, or enter into any new documents relating to the Ground Lease, in each case, without the prior written consent of Buyer, which may be given or withheld in Buyer’s sole and absolute discretion.  Seller shall copy Buyer on any and all material correspondence received 

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from or sent to tenants regarding the Leases, and Seller shall copy Buyer on any and all correspondence received or sent with respect to the Ground Lease.
14.2     Service Contracts.  Except as otherwise provided herein, after the Contingency Date, Seller will not extend, renew, modify or replace any of the Service Contracts without the prior written consent of Buyer.  If Buyer does not disapprove any request of Seller regarding a Service Contract within three (3) Business Days after Buyer’s receipt of such written request, Buyer shall be deemed to have approved such request.  Buyer shall not be required to assume any Service Contract of Seller at Closing (other than the Service Contract with Otis Elevator).  Seller, at Seller’s sole cost and expense, shall terminate any Service Contracts (other than the Service Contract with Otis Elevator) that Buyer does not elect to assume, in Buyer’s sole and absolute discretion, by written notification to Seller prior to the expiration of the Contingency Period.  Notwithstanding anything to the contrary contained herein, Seller shall terminate, at Seller’s sole cost and expense, any and all leasing commission agreements and management agreements affecting the Property effective on or before the Closing.
14.3     Conducting Business.  At all times prior to Closing, Seller shall continue to (i) conduct business with respect to the Property in the same manner in which said business has been heretofore conducted and (ii) insure the Property substantially as it is currently insured and in any event in commercially reasonable amounts and in accordance with the requirements of the Ground Lease and any mortgage or deed of trust affecting the Property.
14.4     Encumbrances.  At all times prior to Closing, except as otherwise permitted pursuant to Paragraph 14.1 above, Seller shall not sell,  mortgage, pledge, encumber, hypothecate or otherwise transfer or dispose of all or any part of the Property or any interest therein without the prior written consent of Buyer, which may be given or withheld in Buyer’s sole and absolute discretion; and Seller shall not consent to, approve or otherwise take any action with respect to zoning or any other governmental rules or regulations presently applicable to all or any part of the Property.
14.5     Monthly Operating Statements.  Seller shall provide Buyer with a copy of the monthly property level operating statement for the operation of the Property on or before the day which is ten (10) days after the end of each month, commencing with the month during which the Execution Date occurs and continuing for each full calendar month thereafter until the Closing Date.
14.6     Estoppels.  Seller shall use commercially reasonable efforts to obtain the Tenant Estoppel Certificates described in Paragraph 7.1.5 above, and the Ground Lessor Estoppel Certificate. 
14.7     Ground Lease Amendment.  Seller shall use commercially reasonable efforts to obtain an executed amendment to the Ground Lease executed by Seller and Ground Lessor on or prior to Closing, which amendment shall be in the form provided by Buyer to Seller on or prior to the Effective Date, subject to changes mutually agreed to by Buyer and Ground Lessor; provided that such amendment shall not be a condition to Closing.

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15.     Buyer’s Representations and Warranties.  In addition to any express agreements of Buyer contained herein, the following constitute representations and warranties of Buyer to Seller:
15.1     Power.  Buyer has the legal power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transaction contemplated by this Agreement.
15.2     Requisite Action.  All requisite action (corporate, trust, partnership or otherwise) has been taken by Buyer in connection with entering into this Agreement and the instruments referenced herein; and, by the Close of Escrow all such necessary action will have been taken to authorize the consummation of the transaction contemplated by this Agreement.  By the Close of Escrow no additional consent of any partner, shareholder, trustee, trustor, beneficiary, creditor, investor, judicial or administrative body, governmental authority or other party shall be required for Buyer to consummate the transaction contemplated by this Agreement.
15.3     Individual Authority.  The individuals executing this Agreement and the instruments referenced herein on behalf of Buyer have the legal power, right, and actual authority to bind Buyer to the terms and conditions hereof and thereof.
15.4     No Conflict.  Neither the execution and delivery of this Agreement and the documents and instruments referenced herein, nor the occurrence of the obligations set forth herein, nor the consummation of the transaction contemplated herein, nor compliance with the terms of this Agreement and the documents and instruments referenced herein conflict with or result in the material breach of any terms, conditions or provisions of, or constitute a default under, any bond, note, or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust, loan, partnership agreement, lease or other agreement or instrument to which Buyer is a party.
15.5     Bankruptcy.  Buyer has not (a) commenced a voluntary case, or had entered against it a petition, for relief under any federal bankruptcy act or any similar petition, order or decree under any federal or state law or statute relative to bankruptcy, insolvency or other relief for debtors, (b) caused, suffered or consented to the appointment of a receiver, trustee, administrator, conservator, liquidator, or similar official in any federal, state, or foreign judicial or non-judicial proceeding, to hold, administer and/or liquidate all or substantially all of its assets, or (c) made an assignment for the benefit of creditors.
15.6     Prohibited Persons and Transactions.  Neither Buyer nor any of its affiliates, nor, to Buyer’s knowledge, any of their respective members, and none of their respective officers or directors is, nor prior to Closing or the earlier termination of this Agreement, will they become, a person or entity with whom U.S. persons or entities are restricted 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 Blocked Persons List) or under any U.S. 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 

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and is not and prior to Closing or the earlier termination of this Agreement will not knowingly engage in any dealings or transactions with or be otherwise associated with such persons or entities.
Buyer’s representations and warranties made in this Paragraph 15 shall be continuing and shall be true and correct as of the Close of Escrow with the same force and effect as if remade by Buyer in a separate certificate at that time.  The truth and accuracy of Buyer’s representations and warranties made herein shall constitute a condition for the benefit of Seller to the Close of Escrow and shall survive the Closing for a period of nine (9) months.
16.     Condemnation and Destruction.
16.1     Condemnation.  If at any time prior to the Closing Date any “material” portion of the Property is condemned or taken by eminent domain proceedings by any public authority, then at Buyer’s option, to be exercised within ten (10) Business Days after receipt of notice of such taking, this Agreement shall terminate, and the Deposit shall be promptly returned to Buyer, and except as expressly set forth herein, neither party shall have any further liability or obligation to the other hereunder.  As used in this Paragraph 16.1, the term “material” shall mean a taking which (a) materially and adversely affects the value or operations of the Property; (b) adversely affects the value of the Property by more than ten percent (10%) of the Purchase Price; (c) the condemnation results in a circumstance whereby a Tenant under a Lease may terminate its Lease or receive a rent abatement; or (d) the condemnation results in a circumstance whereby a party can terminate the Ground Lease. Seller shall give Buyer written notice of any taking promptly after Seller obtains knowledge thereof.  If less than a material portion of the Property is condemned or taken by eminent domain proceedings or if Buyer does not timely notify Seller in writing of its election to terminate this Agreement, Buyer shall be deemed to have elected not to terminate this Agreement.  If Buyer elects or is deemed to have elected not to terminate this Agreement, the parties shall proceed to the Closing Date without a reduction in the Purchase Price and, upon the Closing, all condemnation proceeds paid or payable to Seller (other than losses pertaining to periods prior to the Closing) shall belong to Buyer and shall be paid over and assigned to Buyer.  Seller shall have no obligation to make any repairs to the Property in the event of a condemnation.
16.2     Damage and Destruction.  If at any time prior to the Closing Date a material portion of the Property is destroyed or damaged as a result of fire or any other casualty whatsoever, then at Buyer’s option, to be exercised within ten (10) Business Days after receipt of notice of such destruction or damage, this Agreement shall terminate, the Deposit shall be returned to Buyer, and except as expressly set forth herein, neither party shall have any further liability or obligation to the other hereunder.  If Buyer does not timely notify Seller in writing of its election to terminate this Agreement, Buyer shall be deemed to have elected not to terminate this Agreement.  For purposes hereof, the term “material” shall be deemed to be a damage or destruction (a) in excess of ten percent (10%) of the Purchase Price; (b) the nature of the casualty results in a circumstance whereby a Tenant under a Lease may terminate its Lease or receive a rent abatement; or (c) the nature of the casualty results in a circumstance whereby a party can terminate the Ground Lease.  If less than a material portion of the Property is damaged or destroyed or if a material portion is damaged or destroyed and Buyer elects or is deemed to have elected not to terminate this Agreement, the parties shall proceed to the Closing Date without 

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reduction in the Purchase Price and, upon the Closing, all property insurance proceeds paid or payable to Seller as a result of such casualty shall belong to Buyer and shall be paid over and assigned to Buyer, and Buyer shall receive a credit from Seller for any deductible and any uninsured loss.  Seller shall have no obligation to make any repairs to the Property in the event of a damage or destruction.
17.     Notices.  Unless applicable law requires a different method of giving notice, any and all notices, demands or other communications required or desired to be given hereunder by any party (hereafter, the “Notice”) shall be in writing and shall be validly given or made to another party if served personally, delivered by carrier service, or if deposited in the United States mail, certified or registered, postage prepaid or if transmitted by e-mail.  If the Notice is served personally, service shall be conclusively deemed made at the time of such personal service.  If the Notice is given by mail, the Notice shall be conclusively deemed given upon receipt or refusal of delivery.  If the Notice is sent by telegraph or if by other carrier service, the Notice shall be deemed given upon confirmation of delivery by the carrier.  If the Notice is sent by e-mail, Notice shall be deemed given immediately following transmission.  Notices delivered by e-mail must be followed by confirmation via carrier service. The Notice shall be addressed to the party to whom such notice, demand or other communication is to be given at the address set forth in the Basic Provisions above.  Any party hereto may change its address for the purpose of receiving Notices as herein provided by a written Notice given in the manner aforesaid to the other party or parties hereto.
18.     Broker.  Except with respect to the Broker, which has been engaged by Seller pursuant to a separate agreement, and shall be paid by Seller, Seller represents and warrants to Buyer, and Buyer represents and warrants to Seller, that no broker or finder has been engaged by it, respectively, in connection with any of the transactions contemplated by this Agreement, or to its knowledge is in any way connected with any of such transactions.  In the event of any such claims for brokers’ or finders’ fees or commissions in connection with the negotiation, execution or consummation of this Agreement, then Buyer shall indemnify, save harmless and defend Seller from and against such claims if they shall be based upon any statement, representation or agreement made by Buyer, and Seller shall indemnify, save harmless and defend Buyer if such claims shall be based upon any statement, representation or agreement made by Seller.
19.    Entry.  Provided that Buyer is not in default of its obligations under this Agreement, then from and after the Opening of Escrow through the earlier of the termination of this Agreement or the Closing Date, Buyer, its agents, consultants, contractors and subcontractors shall have the right, at reasonable times upon at least 48‐hours prior written notice to Seller and provided that Buyer has coordinated with Seller so as to afford Seller a reasonable opportunity to have a representative present at all such times, to enter upon the Property to conduct or make any and all inspections and tests as may be necessary or desirable, subject to the rights of any tenants or occupants of the Property and the limitations set forth below in this Paragraph 19.  The scope of any analysis which requires physical sampling or any other invasive or intrusive testing of all or any part of the Property shall be subject to:  (a) the prior written approval of Seller, which Seller may withhold or condition in its sole discretion, (b) Seller’s receipt of written evidence that Buyer has procured the insurance required pursuant to this Paragraph 19, and (c) the requirement that Buyer dispose of all such test samples in accordance with applicable law and at no cost or liability to Seller.  Nothing herein shall 

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authorize any subsurface testing or drilling on the Property by Buyer or its environmental consultant unless specifically approved in writing by Seller, which Seller may condition or deny in its sole discretion.  Notwithstanding anything set forth herein to the contrary, in the event that Buyer’s Phase I environmental site assessment recommends a Phase II environmental site assessment and Seller withholds its consent to such Phase II environmental site assessment, and Buyer terminates this Agreement under Paragraph 7.3 above as a result, Buyer shall be entitled to receive from Seller reimbursement of Buyer’s actually incurred out of pocket expenses incurred in connection with pursuing the transactions contemplated by this Agreement, including without limitation Buyer’s attorneys’ fees.  Buyer shall obtain or cause its consultants to obtain (and provide evidence to Seller), at Buyer’s sole cost and expense, prior to commencement of any investigative activities on the Property, a policy of commercial general liability insurance covering any and all liability of Buyer and Seller with respect to or arising out of any investigative activities.  Such policy of insurance shall be from an insurance company acceptable to Seller and name Seller as an additional insured and shall be kept and maintained in force during the term of this Agreement and so long thereafter as necessary to cover any claims of damages suffered by persons or property resulting from any acts or omissions of Buyer, Buyer’s employees, agents, contractors, suppliers, consultants or other related parties.  Such policy of insurance shall have liability limits of not less than Two Million Dollars ($2,000,000.00) combined single limit per occurrence for bodily injury, personal injury and property damage liability.
In the event that Buyer terminates this Agreement, at Seller’s request, Buyer hereby agrees to provide to Seller, copies of all tests, reports, studies and the like generated by such vendor in connection with Buyer’s inspection of the Property; provided that (i) Seller shall reimburse Buyer for all of the costs of such third party reports and materials promptly upon receipt of such reports and materials; (ii) such reports and materials are being delivered and made without representation or warranty of any kind by Buyer; and (iii) Seller acknowledges that its ability to rely on any such reports or materials may be subject to the consent of the preparers of such reports or materials.  Prior to Closing, Buyer shall keep all documents and information received from Seller and/or its agents and the results of all of its inspections, studies, investigations, analysis, reports and the like confidential except as required by law and except (A) for disclosures made to Buyer’s or its affiliates agents, consultants, attorneys, lenders, prospective lenders, underwriters, prospective underwriters, placement agents, prospective placement agents, and employees; (B) to the extent Buyer or its affiliates determine, in consultation with its legal counsel, that such disclosure is required by applicable law or is otherwise required in connection with any filing by Buyer or its affiliates with the Securities and Exchange Commission (the “SEC”) or any stock exchange rule applicable to Buyer or its affiliates; and (C) to the extent Buyer or its affiliates determine, in consultation with legal counsel, that such disclosure is required in any prospectus, report or other filing made by Buyer or its affiliates with the SEC or any stock exchange or in any press release, earnings release or supplemental data related thereto; provided that any press release shall be subject to the mutual approval of Seller and Buyer (except that so long as neither Seller’s name nor the Purchase Price is disclosed, Buyer may reference the address of the Property and the fact that Buyer acquired the same without Seller’s approval).  Buyer hereby indemnifies, defends and holds the Property, Seller and their respective officers, directors, shareholders, participants, affiliates, employers, representatives, invitees, agents and contractors free and harmless from and against any and all actual claims, costs, losses, liabilities, damages or expenses arising out of or resulting from such 

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entry by Buyer, its agents, consultants, contractors and subcontractors.  Additionally, Buyer shall immediately, at its sole cost and expense, repair any and all physical damage arising out of or resulting from such entry and any acts or omissions by Buyer, its agents, employees, consultants, contractors and subcontractors, and shall immediately, at its sole cost and expense, restore the Property to the condition that existed immediately prior to such entry by Buyer, its agents, employees, consultants, contractors and subcontractors.  Furthermore, prior to Closing, Buyer hereby agrees not to meet with any governmental agencies with respect to the Property without Seller’s prior written consent, which Seller may withhold or condition in its reasonable discretion (and, without limiting the foregoing, Buyer agrees to give Seller a reasonable opportunity to be present during any such meeting with any governmental agency).  For clarification, the foregoing shall not preclude Buyer or its agents or consultants from contacting governmental agencies to obtain information regarding zoning, permitting, violations, or other matters that are routinely addressed in zoning, property condition, and environmental reports.   In no event shall the indemnity, repair or restoration obligations of this Paragraph 19 include the discovery of pre-existing conditions disclosed by Buyer’s investigations. Buyer shall have the right to interview tenants of the Property provided such are arranged through Seller’s Representative and Seller has a reasonable opportunity to be present during each such interview. Buyer shall keep the Property free and clear of any mechanics’ liens or materialmen’s liens related to Buyer’s inspection and the other activities contemplated in this Paragraph 19.  This Paragraph 19 shall survive the Close of Escrow and shall not be merged with the Deed, and shall survive the termination of this Agreement and Escrow prior to the Close of Escrow, and shall not be limited by any provision of this Agreement.
20.     Legal and Equitable Enforcement of this Agreement.
20.1     Default by Seller.  In the event the Close of Escrow and the consummation of the transactions herein contemplated do not occur by reason of any default by Seller, Buyer shall, upon written notice to Seller (“Default Notice”) be entitled to (i) terminate this Agreement, recover the Deposit, and receive reimbursement from Seller of Buyer’s actually incurred, out of pocket third party costs in conjunction with the Agreement (not to exceed $100,000), after which both parties shall be released from all further obligations under this Agreement except as otherwise provided herein and (ii) pursue the specific performance of this Agreement, provided any action for specific performance is commenced within ninety (90) days of delivery of the Default Notice.  Notwithstanding the foregoing, in the event that Seller’s default has resulted in specific performance being unavailable to Buyer as a remedy, Buyer shall, upon sending a Default Notice, be entitled to terminate this Agreement, recover the Deposit, receive reimbursement from Seller of Buyer’s actually incurred, third party out of pocket costs in conjunction with this Agreement, without any cap, and receive from Seller as liquidated damages as a result thereof, an amount equal to $250,000, after which both parties shall be released from all further obligations under this Agreement except as otherwise provided herein.  Notwithstanding anything set forth herein to the contrary, if Buyer has funded the balance of the Purchase Price at Closing in accordance with this Agreement and Seller has defaulted, Buyer shall, if entitled, be promptly returned the balance of the Purchase Price from escrow; provided that in connection with any action for specific performance brought by Buyer, Buyer shall provide proof of immediately available funds or post any bond that may be required by the court or applicable law, in the amount of the balance of the Purchase Price, in connection with such action.

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BUYER AND SELLER AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTIMATE THE DAMAGES WHICH BUYER MAY SUFFER IN THE EVENT THAT SELLER’S DEFAULT RESULTS IN SPECIFIC PERFORMANCE BEING UNAVAILABLE TO BUYER AS A REMEDY.  THEREFORE BUYER AND SELLER DO HEREBY AGREE THAT A REASONABLE ESTIMATE OF THE TOTAL NET DETRIMENT THAT BUYER WOULD SUFFER IN THE EVENT OF SUCH A DEFAULT IS AN AMOUNT EQUAL TO $250,000, IN ADDITION TO THE RETURN OF THE DEPOSIT AND REIMBURSEMENT OF BUYER’S OUT OF POCKET EXPENSES.  SAID AMOUNT SHALL BE THE FULL, AGREED AND LIQUIDATED DAMAGES FOR SUCH A DEFAULT BY SELLER.  THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY.  
	
					
	 
	/s/ MS
	 
	/s/ CKR
	 

	 
	Buyer's Initials
	 
	Seller's Initials
	 

20.2     DEFAULT BY BUYER.  IN THE EVENT THE CLOSING AND THE CONSUMMATION OF THE TRANSACTION HEREIN CONTEMPLATED DOES NOT OCCUR AS HEREIN PROVIDED BY REASON OF A DEFAULT OF BUYER, SELLER’S SOLE REMEDY (EXCEPT AS PROVIDED BELOW) SHALL BE TO TERMINATE THIS AGREEMENT AND RECEIVE THE DEPOSIT AS LIQUIDATED DAMAGES AND SELLER SHALL BE RELEASED FROM ITS OBLIGATION TO SELL THE PROPERTY TO BUYER.  BUYER AND SELLER AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTIMATE THE DAMAGES WHICH SELLER MAY SUFFER IN SUCH AN EVENT.  THEREFORE BUYER AND SELLER DO HEREBY AGREE THAT A REASONABLE ESTIMATE OF THE TOTAL NET DETRIMENT THAT SELLER WOULD SUFFER IN THE EVENT THAT BUYER DEFAULTS AND FAILS TO COMPLETE THE PURCHASE OF THE PROPERTY IS AND SHALL BE, AS SELLER’S SOLE AND EXCLUSIVE REMEDY (WHETHER AT LAW OR IN EQUITY), AN AMOUNT EQUAL TO THE DEPOSIT (TO THE EXTENT THERETOFORE DEPOSITED BY BUYER WITH ESCROW HOLDER).  SAID AMOUNT SHALL BE THE FULL, AGREED AND LIQUIDATED DAMAGES FOR THE BREACH OF THIS AGREEMENT BY BUYER, ALL OTHER CLAIMS TO DAMAGES OR OTHER REMEDIES BEING HEREIN EXPRESSLY WAIVED BY SELLER, OTHER THAN THOSE OBLIGATIONS THAT EXPRESSLY SURVIVE TERMINATION OF THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, BUYER’S OBLIGATION TO INDEMNIFY SELLER UNDER PARAGRAPH 19, AND THE RIGHT TO COLLECT ATTORNEYS’ FEES AND COSTS IN ANY ACTION TO ENFORCE THIS PROVISION.  THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY.  UPON SUCH A DEFAULT BY BUYER, THIS AGREEMENT SHALL BE TERMINATED AND EXCEPT AS PROVIDED IN THIS PARAGRAPH, NEITHER PARTY SHALL HAVE ANY FURTHER RIGHTS OR OBLIGATIONS HEREUNDER, EACH TO THE OTHER.            
	
					
	 
	/s/ MS
	 
	/s/ CKR
	 

	 
	Buyer's Initials
	 
	Seller's Initials
	 

            

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20.3     Limited Liability.  Notwithstanding anything to the contrary herein, Buyer on its own behalf and on behalf of its agents, members, partners, employees, representatives, officers, directors, agents, related and affiliated entities, successors and assigns (collectively, the “Buyer Parties”) hereby agrees that in no event or circumstance shall any of the members, partners, employees, representatives, officers, directors, agents, affiliated or related entities of Seller or Seller’s property management company have any personal liability under this Agreement.  Seller on its own behalf and on behalf of its agents, members, partners, employees, representatives, related and affiliated entities, successors and assigns hereby agrees that in no event or circumstance shall any of the Buyer Parties have any personal liability under this Agreement.  Notwithstanding anything to the contrary contained herein:  (a) the maximum aggregate liability of Seller, and the maximum aggregate amount which may be awarded to and collected by Buyer (including, without limitation, for any breach of any representation, warranty and/or covenant of Seller) under this Agreement or any documents executed pursuant hereto or in connection herewith, including, without limitation, the Exhibits attached hereto (collectively, the “Other Documents”) shall, under no circumstances whatsoever, exceed an amount equal to $1,100,000 (the “CAP Amount”); and (b) no claim by Buyer alleging a breach by Seller of any representation, warranty and/or covenant of Seller contained herein or any of the Other Documents may be made, and Seller shall not be liable for any judgment in any action based upon any such claim, unless and until such claim, either alone or together with any other claims by Buyer alleging a breach by Seller of any such representation, warranty and/or covenant, is for an aggregate amount in excess of $50,000.00 (the “Floor Amount”), in which event Seller’s liability respecting any final judgment concerning such claim or claims shall be subject to the CAP Amount set forth in clause (a) above.  Seller and Buyer agree that neither the Floor Amount nor the CAP Amount shall apply to any claims made under Paragraph 11 hereof or any recovery based solely on fraud. 

21.     Assignment.  Buyer shall have the one-time right to assign its rights and obligations under this Agreement to an entity wholly owned and controlled by the principals of Buyer, by giving prior written notice to Seller, provided that such assignee expressly assumes the obligations of Buyer arising thereafter, provided however that Buyer remains liable for any obligations of “Buyer” under this Agreement notwithstanding any such assignment (i.e., as if such assignment did not occur).  Any assignee shall succeed to all the rights and remedies hereunder, including, but not limited to, the specific performance of this Agreement.
22.     As-Is/Release.  AS A MATERIAL INDUCEMENT TO THE EXECUTION AND DELIVERY OF THIS AGREEMENT BY SELLER AND THE PERFORMANCE BY SELLER OF ITS DUTIES AND OBLIGATIONS HEREUNDER, BUYER DOES HEREBY ACKNOWLEDGE, REPRESENT, WARRANT AND AGREE, TO AND WITH THE SELLER, THAT, EXCEPT FOR THE EXPRESS REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER UNDER THIS AGREEMENT AND THE DOCUMENTS EXECUTED AT CLOSING, (A) BUYER IS PURCHASING THE PROPERTY IN AN “AS-IS” CONDITION AS OF THE DATE OF THE CLOSE OF ESCROW WITH RESPECT TO ANY FACTS, CIRCUMSTANCES, CONDITIONS AND DEFECTS; (B) SELLER HAS NO OBLIGATION TO REPAIR OR CORRECT ANY SUCH FACTS, CIRCUMSTANCES, CONDITIONS OR DEFECTS OR COMPENSATE BUYER FOR SAME; (C) BY THE CLOSE OF ESCROW, BUYER SHALL HAVE UNDERTAKEN ALL SUCH PHYSICAL 

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INSPECTIONS AND EXAMINATIONS OF THE PROPERTY AS BUYER DEEMS NECESSARY OR APPROPRIATE UNDER THE CIRCUMSTANCES, AND THAT BASED UPON SAME, BUYER IS AND WILL BE RELYING STRICTLY AND SOLELY UPON SUCH INSPECTIONS AND EXAMINATIONS AND THE ADVICE AND COUNSEL OF ITS AGENTS AND OFFICERS, AND BUYER IS AND WILL BE FULLY SATISFIED THAT THE PURCHASE PRICE IS FAIR AND ADEQUATE CONSIDERATION FOR THE PROPERTY; (D) SELLER IS NOT MAKING AND HAS NOT MADE ANY WARRANTY OR REPRESENTATION WITH RESPECT TO ALL OR ANY PART OF THE PROPERTY (INCLUDING, BUT NOT LIMITED TO, ANY MATTERS CONTAINED IN DOCUMENTS MADE AVAILABLE OR DELIVERED TO BUYER IN CONNECTION WITH THIS AGREEMENT) AS AN INDUCEMENT TO BUYER TO ENTER INTO THIS ESCROW AND THEREAFTER TO PURCHASE THE PROPERTY OR FOR ANY OTHER PURPOSE; AND (E) BY REASON OF ALL OF THE FOREGOING, BUYER SHALL ASSUME THE FULL RISK OF ANY LOSS OR DAMAGE OCCASIONED BY ANY FACT, CIRCUMSTANCE, CONDITION OR DEFECT PERTAINING TO THE PROPERTY, INCLUDING WITHOUT LIMITATION THE PRESENCE OF ANY ASBESTOS CONTAINING MATERIAL, HAZARDOUS MATERIAL, TOXIC OR RADIOACTIVE WASTE, SUBSTANCE OR MATERIALS IN, ON, UNDER OR ABOUT THE PROPERTY, AND BUYER HEREBY EXPRESSLY AND UNCONDITIONALLY WAIVES AND RELEASES SELLER AND ALL OF THEIR RESPECTIVE PARENTS, SUBSIDIARIES, AFFILIATES AND PARTNERSHIPS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, AGENTS AND EMPLOYEES, AND THEIR RESPECTIVE SUCCESSORS, HEIRS AND ASSIGNS AND EACH OF THEM (INDIVIDUALLY AND COLLECTIVELY, THE “RELEASED PARTIES”) FROM ANY AND ALL RIGHTS AND CLAIMS AGAINST SELLER AND/OR THE RELEASED PARTIES WITH RESPECT TO THE PROPERTY  (INCLUDING WITHOUT LIMITATION THE CONDITION, VALUATION, MARKETABILITY OR UTILITY OF THE PROPERTY AND ANY RIGHTS OF BUYER UNDER THE STATE OR FEDERAL COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT, AS AMENDED FROM TIME TO TIME, OR SIMILAR LAWS), EXCEPT TO THE EXTENT SUCH RIGHTS AND CLAIMS ARISE FROM OR RELATE TO THE EXPRESS REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER UNDER THIS AGREEMENT AND THE DOCUMENTS EXECUTED AT CLOSING.  THIS RELEASE INCLUDES CLAIMS OF WHICH BUYER IS PRESENTLY UNAWARE OF WHICH BUYER DOES NOT PRESENTLY SUSPECT TO EXIST WHICH, IF KNOWN BY BUYER, WOULD MATERIALLY AFFECT BUYER’S RELEASE TO SELLER.  IN CONNECTION AND TO THE EXTENT PERMITTED BY LAW, BUYER HEREBY AGREES, REPRESENTS AND WARRANTS THAT BUYER REALIZES AND ACKNOWLEDGES THAT FACTUAL MATTERS NOW UNKNOWN TO IT MAY HAVE GIVEN OR MAY HEREAFTER GIVE RISE TO CAUSES OF ACTION, CLAIMS, DEMANDS, DEBTS, CONTROVERSIES, DAMAGES, COSTS, LOSSES AND EXPENSES WHICH ARE PRESENTLY UNKNOWN, UNANTICIPATED AND UNSUSPECTED, AND BUYER FURTHER AGREES, REPRESENTS AND WARRANTS THAT THE WAIVERS AND RELEASES HEREIN HAVE BEEN NEGOTIATED AND AGREED UPON IN LIGHT OF THAT REALIZATION AND THAT BUYER NEVERTHELESS HEREBY INTENDS TO RELEASE, DISCHARGE AND ACQUIT SELLER AND THE RELEASED PARTIES FROM 

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ANY SUCH UNKNOWN CAUSES OF ACTION, CLAIMS, DEMANDS, DEBTS, CONTROVERSIES, DAMAGES, COSTS, LOSSES AND EXPENSES.
	
					
	 
	/s/ MS
	 
	 
	 

	 
	Buyer's Initials
	 
	 
	 

23.     Miscellaneous.

23.1     Partial Invalidity.  If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each such term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.
23.2     Waivers.  No waiver of any breach of any covenant or provision herein contained shall be deemed a waiver of any preceding or succeeding breach thereof, or of any other covenant or provision herein contained.  No extension of time for performance of any obligation or act shall be deemed an extension of the time for performance of any other obligation or act.
23.3     Survival of Representations.  The covenants, agreements, representations and warranties made herein shall survive the Close of Escrow for a period of nine (9) months.
23.4     Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of the permitted successors and assigns of the parties hereto.
23.5     Professional Fees.  In the event of the bringing of any action or suit by a party hereto against another party hereunder by reason of any breach of any of the covenants, agreements or provisions on the part of the other party arising out of this Agreement, then in that event the prevailing party shall be entitled to have and recover from the other party all costs and expenses of the action or suit, including actual attorneys’ fees, accounting and engineering fees, and any other professional fees resulting therefrom.
23.6     Entire Agreement.  This Agreement (including all Exhibits attached hereto) is the final expression of, and contains the entire agreement between, the parties with respect to the subject matter hereof and supersedes all prior understandings with respect thereto.  This Agreement may not be modified, changed, supplemented or terminated, nor may any obligations hereunder be waived, except by written instrument signed by the party to be charged or by its agent duly authorized in writing or as otherwise expressly permitted herein.  The parties do not intend to confer any benefit hereunder on any person, firm or corporation other than the parties hereto.
23.7     Time of Essence.  Seller and Buyer hereby acknowledge and agree that time is of the essence with respect to this Agreement.

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23.8    Construction.  Headings at the beginning of each paragraph and subparagraph are solely for the convenience of the parties and are not a part of the Agreement.  Whenever required by the context of this Agreement, the singular shall include the plural and the masculine shall include the feminine and vice versa.  This Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if both parties had prepared the same.  Unless otherwise indicated, all references to paragraphs and subparagraphs are to this Agreement.  All exhibits referred to in this Agreement and the Glossary of Terms are attached and incorporated by this reference.  In the event the date on which Buyer or Seller is required to take any action under the terms of this Agreement is not a business day, the action shall be taken on the next succeeding business day.
23.9      Governing Law.  The parties hereto expressly agree that this Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of Nevada.
23.10    Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which, together, shall constitute one and the same instrument.
23.11     No Joint Venture.  This Agreement shall not create a partnership or joint venture relationship between Buyer and Seller.
23.12     Confidentiality.  Neither Buyer nor Seller shall make any public announcement or disclosure of any information related to this Agreement to outside brokers other than (i) Broker or third parties before the Closing Date and (ii) following any termination of this Agreement, without the mutual agreement of the parties.  Notwithstanding the foregoing, (a) Seller and Buyer may disclose the terms of this Agreement to their respective affiliates, agents, attorneys, consultants, underwriters, prospective underwriters, placement agents, prospective placement agents, and employees to the extent necessary to permit such third parties to assist Seller or Buyer in performing their respective obligations hereunder, including Buyer’s consultants engaged to conduct due diligence, to Buyer’s prospective property managers, to Ground Lessor and Buyer’s financing and investor sources, and to the extent required by law; provided that all such third parties shall be advised of the confidential nature of this Agreement and instructed not to disclose information to others; and (b) Buyer may disclose the terms of this Agreement (i) to the extent Buyer or its affiliates determine, in consultation with its legal counsel, that such disclosure is required by applicable law or otherwise required in connection with any filing by Buyer or its affiliates with the SEC or any stock exchange rule applicable to Buyer or its affiliates; and (ii) to the extent Buyer or its affiliates determine, in consultation with legal counsel, that such disclosure is required in any prospectus, report or other filing made by Buyer or its affiliates with the SEC or any stock exchange or in any press release, earnings release or supplemental data related thereto; provided that any press release shall be subject to the mutual approval of both Seller and Buyer (except that so long as neither Seller’s name nor the Purchase Price is disclosed, Buyer may reference the address of the Property and the fact that Buyer acquired the same without Seller’s approval).  Buyer agrees that all information, whether written or verbal, relating to the physical condition of the Property and regardless of whether such information was obtained by Seller or Buyer, shall constitute the confidential information of Seller prior to the Closing and following any termination of this Agreement and that the 

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unauthorized use or disclosure of such confidential information would cause irreparable harm to Seller.  Notwithstanding anything to the contrary in this Paragraph 23.12, confidential information shall not include information that: (A) is already public knowledge or becomes public knowledge through no fault, action or inaction of Buyer; (B) Buyer is compelled or required by applicable law or administrative or legal process to disclose; or (C) was rightfully in Buyer’s possession without restriction prior to receipt from Seller or was independently developed by Buyer without the use of any confidential information, and such possession and/or independent development can be demonstrated by written evidence.  Seller acknowledges that it is Buyer’s intention that the ultimate acquirer be a subsidiary of a corporation that is or intends to qualify as a real estate investment trust and that, as such, it is subject to certain filing and reporting requirements in accordance with federal laws and regulations, including but not limited to, regulations promulgated by the SEC.  Accordingly, and notwithstanding any provision of this Agreement or the provisions of any other existing agreement between the parties hereto to the contrary, Buyer may publically file, disclose, report or publish any and all information related to this transaction that may be reasonably interpreted as being required by federal law or regulation.  This provision shall expressly survive the termination of this Agreement.
24.     Section 1031 Exchange.  Seller and Buyer acknowledge that the electing party may elect to effect the sale and purchase of the Property as an exchange pursuant to Section 1031 of the Internal Revenue Code, provided the electing party utilizes the services of a “qualified intermediary” as defined in Treasury Regulation § 1.1031(k)‐(g)(4)(iii) (“Intermediary”) to effectuate such Section 1031 exchange and will reasonably cooperate in the accomplishment of that purpose provided only that (i) the other party shall not be required to be vested in title to any parcel other than the Property, (ii) the other party shall incur no liability or expense beyond those inherent in an acquisition of the Property for a cash payment nor be delayed in the Closing, (iii) the electing party shall not be released or absolved of its obligations under this Agreement, and (iv) the electing party shall indemnify, defend and hold harmless the other party and its officers, directors, employees, representatives and agents from and against any liability, damages, expenses, costs and/or losses arising out of the exchange.
25.     Ground Lessor’s Right of First Offer and Consent to Assignment.  
(a)    Buyer acknowledges and agrees that under Section 14.8 of the Ground Lease, Ground Lessor has a general right of first offer with respect to, among other things, third-party sales of the Property.  Such right of first offer with respect to the sale of the Property by Seller to Buyer pursuant to the terms of this Agreement has been waived by Ground Lessor, and a copy of such waiver has been delivered to Buyer.  If (i) Ground Lessor’s right of first offer with respect to the sale of the Property to Buyer pursuant to the terms of this Agreement has not been waived by Ground Lessor or otherwise expired without being exercised, and (ii) as a result, Buyer’s rights under this Agreement are not legally enforceable, this Agreement and the Escrow shall automatically and immediately terminate, and Seller agrees to pay to Buyer, as liquidated damages and as Buyer’s sole and exclusive remedy as a result thereof, an amount equal to $250,000 (in addition to the return of the Deposit to Buyer).
BUYER AND SELLER AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTIMATE THE DAMAGES WHICH BUYER MAY SUFFER IN THE EVENT THAT GROUND LESSOR’S RIGHT OF FIRST OFFER 

33

HAS NOT BEEN WAIVED.  THEREFORE BUYER AND SELLER DO HEREBY AGREE THAT A REASONABLE ESTIMATE OF THE TOTAL NET DETRIMENT THAT BUYER WOULD SUFFER IN THE EVENT THAT GROUND LESSOR’S RIGHT OF FIRST OFFER HAS NOT BEEN WAIVED IS AN AMOUNT EQUAL TO $250,000, IN ADDITION TO THE RETURN OF THE DEPOSIT AND REIMBURSEMENT OF BUYER’S OUT OF POCKET EXPENSES.  SAID AMOUNT SHALL BE THE FULL, AGREED AND LIQUIDATED DAMAGES IN THE EVENT THAT GROUND LESSOR’S RIGHT OF FIRST OFFER HAS NOT BEEN WAIVED.  THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY.      
	
					
	 
	/s/ MS
	 
	/s/ CKR
	 

	 
	Buyer's Initials
	 
	Seller's Initials
	 

(b)    On or before the expiration of the Contingency Period, Seller shall use its commercially reasonable efforts to obtain Ground Lessor’s written consent to the assignment of the Ground Lease to Buyer.  In the event Seller fails to obtain Ground Lessor’s consent to the assignment of the Ground Lease to Buyer, this Agreement and the Escrow shall automatically and immediately terminate, the Deposit shall be returned to Buyer, Buyer shall be entitled to receive from Seller reimbursement of Buyer’s actually incurred out‐of‐pocket expenses incurred in connection with pursuing the transactions contemplated by this Agreement, including without limitation Buyer’s attorneys’ fees (not to exceed $100,000), and except as expressly set forth herein, neither party shall have any further liability or obligation to the other hereunder.

(c)    For the avoidance of doubt, the foregoing reimbursement obligations shall survive any termination of this Agreement.
26.     Seller Guarantor.  Seller Guarantor joins in this Agreement for the purpose of guarantying compliance by Seller with all obligations of Seller contained in (i) this Agreement to the extent that the same survive Closing, and (ii) the documents to be signed at Closing (collectively, the “Seller Obligations”).  Subject to the limitations on liability set forth in Section 20.3 above, Seller Guarantor absolutely and unconditionally agrees to be jointly and severally responsible for all of the Seller Obligations.  The guaranty set forth in this Paragraph 26 is a continuing guaranty of payment and is not conditional or contingent upon any attempt to collect from Seller or upon any other condition or contingency.  Subject to the limitations on liability set forth in Section 20.3 above, the liability of Seller Guarantor under this Agreement shall in no way be limited or impaired by, and Seller Guarantor hereby consents to and agrees to be bound by, any amendment or modification of the provisions of this Agreement.  Seller Guarantor waives any notice of the modification or amendment of this Agreement. Seller Guarantor represents and warrants to Buyer that:  Seller Guarantor is a real estate investment trust validly formed in the State of Maryland; Seller Guarantor has full power and authority to enter into the obligations set forth in this Paragraph 26, to perform the obligations set forth in this Paragraph 26, and to consummate the transactions contemplated hereby; the execution, delivery and performance of the obligations set forth in this Paragraph 26 and all documents contemplated hereby by Seller Guarantor have been duly and validly authorized by all necessary action on the part of Seller Guarantor; all required consents and approvals have been duly obtained and will not result in a breach of any of the terms or provisions of, or constitute a 

34

default under any indenture, agreement or instrument to which Seller Guarantor is a party; this Agreement is a legal, valid and binding obligation of Seller Guarantor, enforceable against Seller Guarantor in accordance with its terms, subject to the effect of applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws affecting the rights of creditors generally; and Seller Guarantor is a member of Seller and will derive a material benefit from the transactions contemplated by this Agreement.  The provisions of this Paragraph 26 shall survive Closing.
Notwithstanding the foregoing, on or before the expiration of the Contingency Date, Seller Guarantor can elect to provide a letter of credit for the CAP Amount in lieu of the foregoing guaranty, which letter of credit (i) shall be in a form, and be issued by a financial institution, reasonably acceptable to Buyer prior to the expiration of the Contingency Date, (ii) shall be held by Buyer during the survival period, and (iii) Seller shall cause to be deposited on the Closing and such letter of credit shall constitute a Seller deliverable pursuant to Section 8.1 above.
27.     Cooperation with Buyer’s Auditors and SEC Filing Requirements.  Upon reasonable prior written notice to Seller, Seller shall, at no cost to Seller, reasonably cooperate with Buyer to provide Buyer access to such factual information concerning the operation of the Property as may be reasonably requested by Buyer, and in the possession or control of Seller, or its property manager or accountants, to enable Buyer or its affiliates to prepare audited financial statements as may be required by the Securities and Exchange Commission (“SEC”).  Upon reasonable prior written notice to Seller and on other terms reasonably acceptable to Seller, at Buyer’s sole cost and expense, Seller shall allow Buyer’s auditor to conduct an audit of the statement of revenue and expenses of the Property and shall reasonably cooperate (at no cost to Seller) with Buyer’s auditor in the conduct of such audit and review and in connection with such audit and review deliver to Buyer’s auditor a representation letter in the form attached hereto as Exhibit “K” with respect to the period of time during which Seller owned the Property.  The obligations of Seller under this Section 27 shall survive the Closing for a period of six (6) months after the last day of the calendar year in which Closing occurred.
28.     Exclusivity. From and after the Execution Date, Seller and its respective agents, representatives and employees shall immediately cease all marketing of the Property until such time as this Agreement is terminated.  Furthermore, from and after the Contingency Date, and provided Buyer has not terminated this Agreement, Seller agrees not to directly or indirectly make, accept, negotiate, entertain or otherwise pursue any offers for the sale of the Property.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year hereinabove written.
BUYER:
GAHC4 RENO NV MOB, LLC, 
a Delaware limited liability company 
	
					
	By:
	GAHC4 RENO NV MOB Sole Member, LLC, 

	 
	a Delaware limited liability company

	Its:
	Sole Member

	 
	 
	 
	 
	 

	 
	By:
	Griffin-American Healthcare REIT IV Holdings,

	 
	 
	LP, a Delaware limited partnership

	 
	Its:
	Sole Member

	 
	 
	 

	 
	 
	By:
	Griffin-American Healthcare REIT IV, Inc.,

	 
	 
	 
	a Maryland corporation

	 
	 
	Its:
	General Partner

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Mathieu Streiff

	 
	 
	 
	 
	 

	 
	 
	 
	Name:
	Mathieu Streiff

	 
	 
	 
	 
	 

	 
	 
	 
	Title:
	Executive Vice President and General Counsel

Signature Page

SELLER:
ARLINGTON MEDICAL PROPERTIES, 
LLC, an Arizona limited liability company 
	
					
	By:
	Universal Health Realty Income

	 
	Trust, a Maryland real estate 

	 
	investment trust, its Member

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	By:
	/s/ Cheryl K. Ramagano

	 
	Name:
	Cheryl K. Ramagano

	 
	Title:
	V.P. + Treasurer

SELLER GUARANTOR:

UNIVERSAL HEALTH REALTY INCOME
TRUST, a Maryland real estate investment trust

	
		
	By:
	/s/ Cheryl K. Ramagano

	Name:
	Cheryl K. Ramagano

	Title:
	Vice President + Treasurer

Signature Page

Acknowledgement:

ESCROW HOLDER:

FIRST AMERICAN TITLE INSURANCE COMPANY

	
		
	By:
	/s/ Angelique Sizemore

	Name:
	Angelique Sizemore

	Title:
	Escrow Officer

Signature Page

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