Document:

Exhibit 4.3

 

 

 

 

 

 

JOHN DEERE OWNER TRUST 20XX

 

TRUST AGREEMENT

 

between

 

JOHN DEERE RECEIVABLES, INC.

 

Depositor

 

and

 

_________

Owner Trustee

 

 

 

Dated as of ________ __, 20XX

 

 

 

 

 

 

 

 

  

  

  

 

Table of Contents

 

Page

 

	
ARTICLE I

	
DEFINITIONS

	 	 	 
	
Section 1.01.

	
Capitalized Terms

	
1

	
Section 1.02.

	
Other Definitional Provisions

	
3

	 	 	 
	
ARTICLE II

	
ORGANIZATION

	 	 	 
	
Section 2.01.

	
Name

	
4

	
Section 2.02.

	
Office

	
4

	
Section 2.03.

	
Purposes and Powers

	
4

	
Section 2.04.

	
Appointment of Owner Trustee

	
5

	
Section 2.05.

	
Initial Capital Contribution of Trust Estate

	
5

	
Section 2.06.

	
Declaration of Trust

	
5

	
Section 2.07.

	
Liability of the Owner

	
5

	
Section 2.08.

	
Title to Trust Property

	
6

	
Section 2.09.

	
Situs of Trust

	
6

	
Section 2.10.

	
Representations and Warranties of the Depositor

	
6

	 	 	 
	
ARTICLE III

	
CERTIFICATE AND TRANSFER OF INTERESTS

	 	 	 
	
Section 3.01.

	
Initial Ownership

	
7

	
Section 3.02.

	
The Certificate

	
7

	
Section 3.03.

	
Authentication of the Certificate

	
7

	
Section 3.04.

	
Exchange of the Certificate

	
7

	
Section 3.05.

	
 Mutilated, Destroyed, Lost or Stolen Certificate

	
8

	
Section 3.06.

	
Persons Deemed Owners

	
8

	
Section 3.07.

	
Access to Certificateholder’s Name and Address

	
8

	
Section 3.08.

	
 Maintenance of Office or Agency

	
8

	
Section 3.09.

	
Appointment of Paying Agent

	
8

	
Section 3.10.

	
Depositor as Certificateholder

	
9

	
Section 3.11.

	
Non-transferability of the Certificates(s)

	
9

	 	 	 
	
ARTICLE IV

	
ACTIONS BY OWNER TRUSTEE

	 	 	 
	
Section 4.01.

	
Prior Notice to Owner with Respect to Certain Matters

	
9

	
Section 4.02.

	
Action by the Owner with Respect to Certain Matters

	
10

	
Section 4.03.

	
Action by the Owner with Respect to Bankruptcy

	
10

	
Section 4.04.

	
Restrictions on the Owner’s Power

	
10

 

  

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ARTICLE V

	
APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

	 	 	 
	
Section 5.01.

	
Establishment of Trust Account

	
11

	
Section 5.02.

	
Application of Trust Funds

	
11

	
Section 5.03.

	
 Method of Payment

	
11

	
Section 5.04.

	
No Segregation of Monies; No Interest

	
11

	
Section 5.05.

	
Accounting and Reports to the Owner, the Internal Revenue Service and Others

	
12

	 	 	 
	
ARTICLE VI

	
AUTHORITY AND DUTIES OF OWNER TRUSTEE

	 	 	 
	
Section 6.01.

	
General Authority

	
12

	
Section 6.02.

	
General Duties

	
12

	
Section 6.03.

	
Action upon Instruction

	
13

	
Section 6.04.

	
No Duties Except as Specified in This Agreement or in Instructions

	
13

	
Section 6.05.

	
No Action Except Under Specified Documents or Instructions

	
14

	
Section 6.06.

	
Restrictions

	
14

	 	 	 
	
ARTICLE VII

	
CONCERNING THE OWNER TRUSTEE

	 	 	 
	
Section 7.01.

	
Acceptance of Trusts and Duties

	
14

	
Section 7.02.

	
Furnishing of Documents

	
16

	
Section 7.03.

	
Representations and Warranties

	
17

	
Section 7.04.

	
Reliance; Advice of Counsel

	
17

	
Section 7.05.

	
Not Acting in Individual Capacity

	
17

	
Section 7.06.

	
Owner Trustee Not Liable for Certificate or Receivables

	
18

	
Section 7.07.

	
Owner Trustee May Own Notes

	
18

	 	 	 
	
ARTICLE VIII

	
COMPENSATION OF OWNER TRUSTEE

	 	 	 
	
Section 8.01.

	
Owner Trustee’s Fees and Expenses

	
18

	
Section 8.02.

	
Indemnification

	
18

	
Section 8.03.

	
Payments to the Owner Trustee

	
19

	 	 	 
	
ARTICLE IX

	
TERMINATION OF TRUST AGREEMENT

	 	 	 
	
Section 9.01.

	
Termination of Trust Agreement

	
19

	
Section 9.02.

	
Dissolution upon Bankruptcy of the Depositor

	
20

	 	 	 
	
ARTICLE X

	
SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

	 	 	 
	
Section 10.01.

	
Eligibility Requirements for Owner Trustee

	
21

 

  

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Section 10.02.

	
Resignation or Removal of Owner Trustee

	
21

	
Section 10.03.

	
Successor Owner Trustee

	
22

	
Section 10.04.

	
Merger or Consolidation of Owner Trustee

	
22

	
Section 10.05.

	
Appointment of Co-Trustee or Separate Trustee

	
23

	 	 	 
	
ARTICLE XI

	
MISCELLANEOUS

	 	 	 
	
Section 11.01.

	
Supplements and Amendments

	
24

	
Section 11.02.

	
No Legal Title to Owner Trust Estate in the Owner

	
25

	
Section 11.03.

	
Limitations on Rights of Others

	
25

	
Section 11.04.

	
Notices

	
25

	
Section 11.05.

	
Severability

	
26

	
Section 11.06.

	
Separate Counterparts

	
26

	
Section 11.07.

	
Successors and Assigns

	
26

	
Section 11.08.

	
Covenant of the Depositor

	
26

	
Section 11.09. 

	
No Petition

	26
	
Section 11.10.

	
No Recourse

	
27

	
Section 11.11.

	
Headings

	
27

	
Section 11.12.

	
GOVERNING LAW

	
27

	
Section 11.13.

	
Depositor Payment Obligation

	
27

	
Section 11.14.

	
Administrator

	
27

	
Section 11.15.

	
Communication with Rating Agencies

	
27

	 	 	 
	
EXHIBIT A

	
Form of Certificate

	
A-1

	
EXHIBIT B

	
Certificate of Trust of John Deere Owner Trust 20XX

	
B-1

 

 

 

 

 

 

 

 

 

 

  

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TRUST AGREEMENT, dated as of ________ __, 2011, between John Deere Receivables, Inc., a Nevada corporation, as Depositor, and _________, a _________ as Owner Trustee.

 

ARTICLE I

 

Definitions

 

SECTION 1.01.  Capitalized Terms.  For all purposes of this Agreement, the following terms shall have the meanings set forth below:

 

“Administration Agreement” means the Administration Agreement dated as of ________ __, 2011, among the Administrator, the Trust and the Indenture Trustee, as the same may be amended, modified or supplemented from time to time.

 

“Administrator” means John Deere Capital Corporation, a Delaware corporation, or any successor Administrator under the Administration Agreement.

 

“Agreement” shall mean this Trust Agreement, as the same may be amended and supplemented from time to time.

 

“Basic Documents” shall mean the Purchase Agreement, the Sale and Servicing Agreement, the Indenture, the Administration Agreement, the Depository Agreement and the other documents and certificates delivered in connection therewith.

 

“Certificate” shall mean a certificate evidencing the beneficial interest of the Owner in the Trust, substantially in the form attached hereto as Exhibit A.

 

“Certificate Distribution Account” shall have the meaning assigned to such term in Section 5.01.

 

“Certificate of Trust” shall mean the Certificate of Trust in the form of Exhibit B to be filed for the Trust pursuant to Section 3810(a) of the Trust Statute.

 

“Certificate Register” and “Certificate Registrar” shall mean the register mentioned and the registrar appointed pursuant to Section 3.04.

 

“Certificateholder” shall mean the Depositor.

 

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

 

“Corporate Trust Office” shall mean, with respect to the Owner Trustee, the corporate trust office of the Owner Trustee located at _________, Attention:  _________; or at such other address as the Owner Trustee may designate by notice to the Owners and the Depositor, or the principal corporate trust office of any successor Owner Trustee (the address of which the successor owner trustee will notify the Owners and the Depositor).

 

  

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“Depositor” shall mean John Deere Receivables, Inc., in its capacity as Depositor hereunder.

 

“Depository Agreement” means the agreement among the Trust and The Depository Trust Company, dated on or about the Closing Date, substantially in the form of Exhibit C to the Indenture.

 

“Expenses” shall have the meaning assigned to such term in Section 8.02.

 

“Indenture” shall mean the Indenture, dated as of ________ __, 20XX, between the Trust and the Indenture Trustee, as the same may be amended and supplemented from time to time.

 

“Indenture Trustee” shall mean U.S. Bank National Association, not in its individual capacity but solely as Indenture Trustee under the Indenture.

 

“JDCC” shall mean John Deere Capital Corporation, a Delaware corporation.

 

“Owner” shall mean the Certificateholder.

 

“Owner Trust Estate” shall mean all right, title and interest of the Trust in and to the property and rights assigned to the Trust pursuant to Article II of the Sale and Servicing Agreement, all funds on deposit from time to time in the Trust Accounts and the Certificate Distribution Account and all other property of the Trust from time to time, including any rights of the Owner Trustee and the Trust pursuant to the Sale and Servicing Agreement and the Administration Agreement.

 

“Owner Trustee” shall mean _________, a _________, not in its individual capacity but solely as owner trustee under this Agreement, and any successor Owner Trustee hereunder.

 

“Paying Agent” shall mean any paying agent or co-paying agent appointed pursuant to Section 3.09 and shall initially be _________, a _________.

 

“Purchase Agreement” shall mean the Purchase Agreement, dated as of ________ __, 2011, between JDCC and the Depositor, as the same may be amended, modified or supplemented from time to time.

 

“Record Date” shall mean, with respect to any Payment Date, the close of business on the last day of the calendar month immediately preceding the calendar month in which the Payment Date occurs.

 

“Representatives” means _________ and _________ in their capacity as the representatives under the Underwriting Agreement.

 

“Sale and Servicing Agreement” shall mean the Sale and Servicing Agreement among the Trust, the Depositor, as seller, and JDCC, as servicer, dated as of ________ __, 2011, as the same may be amended, modified or supplemented from time to time.

 

  

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“Secretary of State” shall mean the Secretary of State of the State of Delaware.

 

“Treasury Regulations” shall mean regulations, including proposed or temporary regulations, promulgated under the Code.  References herein to specific provisions of proposed or temporary regulations shall include analogous provisions of final Treasury Regulations or other successor Treasury Regulations.

 

“Trust” shall mean the trust established by this Agreement.

 

“Trust Statute” shall mean Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code Section 3801 et seq., as the same may be amended from time to time.

 

“Underwriting Agreement” means the Underwriting Agreement dated ________ __, 2011 among JDCC, the Depositor and the Representatives set forth on the signature pages thereto.

 

SECTION 1.02.  Other Definitional Provisions.

 

(a)           Capitalized terms used herein and not otherwise defined have the meanings assigned to them in the Sale and Servicing Agreement or, if not defined therein, in the Indenture.

 

(b)           All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein.

 

(c)           As used in this Agreement and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such certificate or other document, and accounting terms partly defined in this Agreement or in any such certificate or other document to the extent not defined, shall have the respective meanings given to them under generally accepted accounting principles in the United States.  To the extent that the definitions of accounting terms in this Agreement or in any such certificate or other document are inconsistent with the meanings of such terms under generally accepted accounting principles in the United States, the definitions contained in this Agreement or in any such certificate or other document shall control.

 

(d)           The words “hereof,” “herein,” “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; Section and Exhibit references contained in this Agreement are references to Sections and Exhibits in or to this Agreement unless otherwise specified; and the term “including” shall mean “including without limitation.”

 

(e)           The definitions contained in this Agreement 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.

 

  

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ARTICLE II

 

Organization

 

SECTION 2.01.  Name.  The Trust created hereby shall be known as “John Deere Owner Trust 20XX” in which name the Owner Trustee may conduct the business of the Trust, make and execute contracts and other instruments on behalf of the Trust and sue and be sued.

 

SECTION 2.02.  Office.  The office of the Trust shall be in care of the Owner Trustee at the Corporate Trust Office or at such other address as the Owner Trustee may designate by written notice to the Owners and the Depositor.

 

SECTION 2.03.  Purposes and Powers.  The purpose of the Trust is to engage in the following activities:

 

(i)           to issue the Notes pursuant to the Indenture and to sell the Notes upon the written order of the Depositor, and pursuant to this Agreement to issue a Certificate with a $________ aggregate principal amount to the Depositor upon the written order of the Depositor;

 

(ii)           with the proceeds of the sale of the Notes and the issuance of the Certificate, to pay the Depositor the amounts owed pursuant to Section 2.01 of the Sale and Servicing Agreement, by directing the Representatives to wire transfer such proceeds in accordance with instructions received from the Depositor;

 

(iii)           with the proceeds from capital contributions from the Depositor, to fund the Reserve Account and to pay organizational and transactional expenses of the Trust;

 

(iv)           to assign, grant, transfer, pledge, mortgage and convey the Trust Estate pursuant to the Indenture and to hold, manage and distribute to the Owner pursuant to the terms of the Sale and Servicing Agreement any portion of the Trust Estate released from the Lien of, and remitted to the Trust pursuant to, the Indenture;

 

(v)           to enter into and perform its obligations under the Basic Documents to which it is to be a party;

 

(vi)           to engage in those activities, including entering into agreements, that are necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or connected therewith; and

 

(vii)           subject to compliance with the Basic Documents, to engage in such other activities as may be required in connection with conservation of the Owner Trust Estate and the making of distributions to the Owner and the Noteholders.

 

The Trust shall not engage in any activity other than in connection with the foregoing or other than as required or authorized by the terms of this Agreement or the Basic Documents.

 

  

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SECTION 2.04.  Appointment of Owner Trustee.  The Depositor hereby appoints the Owner Trustee as trustee of the Trust effective as of the date hereof, to have all the rights, powers and duties set forth herein.

 

SECTION 2.05.  Initial Capital Contribution of Trust Estate.  The Depositor hereby sells, assigns, transfers, conveys and sets over to the Owner Trustee, as of the date hereof, the sum of $1.00.  The Owner Trustee hereby acknowledges receipt in trust from the Depositor, as of the date hereof, of the foregoing contribution, which shall constitute the initial Owner Trust Estate and shall be deposited in the Certificate Distribution Account.  The Depositor shall pay organizational expenses of the Trust as they may arise or shall, upon the request of the Owner Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the Owner Trustee.

 

SECTION 2.06.  Declaration of Trust.  The Owner Trustee hereby declares that it will hold the Owner Trust Estate in trust upon and subject to the conditions set forth herein for the use and benefit of the Owner, subject to the obligations of the Trust under the Basic Documents.  It is the intention of the parties hereto that the Trust constitute a statutory trust under the Trust Statute and that this Agreement constitute the governing instrument of such statutory trust.  It is the intention of the parties that the Trust will be disregarded as an entity separate from the Owner for U.S. federal income tax purposes as provided by Treasury Regulation Section 301.7701-3(b)(1)(ii).  In the event, however, that during its term the Trust has more than one beneficial owner or member, then the parties agree, for U.S. federal income tax purposes, to treat the Trust as a partnership and to take no action inconsistent with the treatment of the Trust as a partnership.  In such event, the parties agree that, unless otherwise required by appropriate tax authorities, the Trust will elect to be treated as a partnership and will file or cause to be filed annual or other necessary returns, reports and other forms consistent with the characterization of the Trust as a partnership for such tax purposes.  Effective as of the date hereof, the Owner Trustee shall have all rights, powers and duties set forth herein and in the Trust Statute with respect to accomplishing the purposes of the Trust.  In no event shall the Trust elect to be treated as an association taxable as a corporation.  The Depositor shall make an election on Internal Revenue Service Form 8832, Entity Classification Election, for the Trust to be disregarded as a separate entity from the Owner.

 

SECTION 2.07.  Liability of the Owner.

 

(a)           The Depositor shall be liable directly to and will indemnify the injured party for all losses, claims, damages, liabilities and expenses of the Trust (including Expenses, to the extent not paid out of the Owner Trust Estate) to the extent that the Depositor would be liable if the Trust were a partnership under the Delaware Revised Uniform Limited Partnership Act in which the Depositor were a general partner; provided, however, that the Depositor shall not be liable for any losses incurred by a Certificateholder in the capacity of an investor in the Certificate or a Noteholder in the capacity of an investor in the Notes.  In addition, any third party creditors of the Trust (other than in connection with the obligations described in the preceding proviso for which the Depositor shall not be liable) shall be deemed third party beneficiaries of this paragraph.  The obligations of the Depositor under this paragraph shall be evidenced by the Certificate described in Section 3.10.

 

  

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(b)           The Owner, other than to the extent set forth in paragraph (a), shall not have any personal liability for any liability or obligation of the Trust.

 

SECTION 2.08.  Title to Trust Property.  Legal title to all the Owner Trust Estate shall be vested at all times in the Trust as a separate legal entity except where applicable law in any jurisdiction requires title to any part of the Owner Trust Estate to be vested in a trustee or trustees, in which case title shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a separate trustee, as the case may be.

 

SECTION 2.09.  Situs of Trust.  The Trust will be located in the State of Delaware.  All bank accounts maintained by the Owner Trustee on behalf of the Trust shall be located in the State of Delaware.  The Trust shall not have any employees in any State other than Delaware; provided, however, that nothing herein shall restrict or prohibit the Owner Trustee from having employees within or without the State of Delaware.

 

SECTION 2.10.  Representations and Warranties of the Depositor.  The Depositor hereby represents and warrants to the Owner Trustee that:

 

(i)           the Depositor is duly organized and validly existing as a corporation in good standing under the laws of the State of Nevada, with power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted;

 

(ii)           the Depositor is duly qualified to do business as a foreign corporation in good standing, and has obtained all necessary licenses and approvals in all jurisdictions in which the failure to so qualify or to obtain such license or approval would render any Receivable unenforceable that would otherwise be enforceable by the Depositor, the Sub-Servicer or the Owner Trustee;

 

(iii)           the Depositor has the power and authority to execute and deliver this Agreement and to carry out its terms; the Depositor has full power and authority to sell and assign the property to be sold and assigned to and deposited with the Trust and the Depositor shall have duly authorized such sale and assignment and deposit to the Trust by all necessary corporate action; and the execution, delivery and performance of this Agreement has been duly authorized by the Depositor by all necessary corporate action; and

 

(iv)           the consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the certificate of incorporation or by-laws of the Depositor, or any indenture, agreement or other instrument to which the Depositor is a party or by which it is bound; nor result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument (other than pursuant to the Basic Documents); nor violate any law or, to the best of the Depositor’s knowledge, any order, rule or regulation applicable to the Depositor of any court or of any Federal or State regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties.

 

  

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ARTICLE III

 

Certificate and Transfer of Interests

 

SECTION 3.01.  Initial Ownership.  Upon the formation of the Trust by the contribution by the Depositor pursuant to Section 2.05 and until the termination of the Trust, the Depositor shall be the sole beneficiary of the Trust.

 

SECTION 3.02.  The Certificate.  The Certificate shall be issued in denominations of $100,000 and integral multiples of $1,000 in excess thereof; provided, however, that one Certificate may be issued in a denomination that includes any remaining portion of the initial Certificate Balance of the Certificate.  The Certificate shall be executed on behalf of the Trust by manual or facsimile signature of a Trust Officer of the Owner Trustee.  The Certificate bearing the manual or facsimile signatures of individuals who were, at the time when such signatures shall have been affixed, authorized to sign on behalf of the Trust, shall, when authenticated pursuant to Section 3.03, be validly issued and entitled to the benefits of this Agreement, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the authentication and delivery of the Certificate or did not hold such offices at the date of authentication and delivery of the Certificate.

 

SECTION 3.03.  Authentication of the Certificate.  Concurrently with the initial sale of the Receivables to the Trust pursuant to the Sale and Servicing Agreement, the Owner Trustee shall cause the Certificate in an aggregate principal amount equal to the initial Certificate Balance to be executed on behalf of the Trust, authenticated and delivered to the Depositor.  The Certificate shall not entitle its holder to any benefit under this Agreement, or be valid for any purpose, unless there shall appear on such Certificate a certificate of authentication substantially in the form set forth in Exhibit A, executed by the Owner Trustee or the Owner Trustee’s authentication agent, by manual signature; such authentication shall constitute conclusive evidence that such Certificate shall have been duly authenticated and delivered hereunder.  The Certificate shall be dated the date of its authentication.

 

SECTION 3.04.  Exchange of the Certificate.  The Certificate Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to Section 3.08, a Certificate Register in which, subject to such reasonable regulations as it may prescribe, the Owner Trustee shall provide for the registration of the Certificate and of exchanges of the Certificate as herein provided.  _________ shall be the initial Certificate Registrar.

 

At the option of the Certificateholder, the Certificate may be exchanged for other Certificates of authorized denominations of a like aggregate amount upon surrender of the Certificate to be exchanged at the office or agency maintained pursuant to Section 3.08.

 

  

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Every Certificate presented or surrendered for exchange shall be accompanied by a written instrument of exchange in form satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the Certificateholder or its attorney duly authorized in writing.  Each Certificate surrendered for registration of exchange shall be cancelled and subsequently disposed of by the Owner Trustee in accordance with its customary practice.

 

No service charge shall be made for any registration of transfer or exchange of the Certificate, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer or exchange of the Certificate.

 

SECTION 3.05.  Mutilated, Destroyed, Lost or Stolen Certificate.  If (a) any mutilated Certificate shall be surrendered to the Certificate Registrar, or if the Certificate Registrar shall receive evidence to its satisfaction of the destruction, loss or theft of any Certificate and (b) there shall be delivered to the Certificate Registrar and the Owner Trustee such security or indemnity as may be required by them to save each of them harmless, then in the absence of notice that such Certificate shall have been acquired by a protected purchaser, the Owner Trustee on behalf of the Trust shall execute and the Owner Trustee, or the Owner Trustee’s authenticating agent, shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like tenor and denomination.  In connection with the issuance of any new Certificate under this Section, the Owner Trustee or the Certificate Registrar may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.  Any duplicate Certificate issued pursuant to this Section shall constitute conclusive evidence of an ownership interest in the Trust, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time.

 

SECTION 3.06.  Persons Deemed Owners.  The Owner Trustee or the Certificate Registrar or any Paying Agent may treat the Person in whose name any Certificate shall be registered in the Certificate Register as the owner of such Certificate for the purpose of receiving distributions pursuant to Section 5.02 and for all other purposes whatsoever, and none of the Owner Trustee, the Certificate Registrar or any Paying Agent shall be bound by any notice to the contrary.

 

SECTION 3.07.  Access to Certificateholder’s Name and Address.  The Owner Trustee shall furnish or cause to be furnished to the Servicer and the Depositor, within 15 days after receipt by the Owner Trustee of a request therefor from the Servicer or the Depositor in writing the name and address of the Certificateholder as of the most recent Record Date.

 

SECTION 3.08.  Maintenance of Office or Agency.  The Owner Trustee shall maintain an office or offices or agency or agencies where the Certificate may be surrendered for registration of exchange and where notices and demands to or upon the Owner Trustee in respect of the Certificate and the Basic Documents may be served.  The Owner Trustee initially designates the Corporate Trust Office as its office for such purposes.  The Owner Trustee shall give prompt written notice to the Depositor and to the Certificateholder of any change in the location of the Certificate Register or any such office or agency.

 

SECTION 3.09.  Appointment of Paying Agent.  The Paying Agent shall make distributions to the Certificateholder from the Certificate Distribution Account pursuant to Section 5.02 and shall report the amounts of such distributions to the Owner Trustee.

 

  

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Any Paying Agent shall have the revocable power to withdraw funds from the Certificate Distribution Account for the purpose of making the distributions referred to above.  The Owner Trustee may revoke such power and remove the Paying Agent if the Owner Trustee determines in its sole discretion that the Paying Agent shall have failed to perform its obligations under this Agreement in any material respect.  The Paying Agent shall initially be _________, and any co-paying agent chosen by the Paying Agent and acceptable to the Owner Trustee.  The Paying Agent shall be permitted to resign as Paying Agent upon 30 days’ written notice to the Owner Trustee and the Depositor.  In the event that ________ shall no longer be the Paying Agent, the Owner Trustee shall appoint a successor to act as Paying Agent (which shall be a bank or trust company).  The Owner Trustee shall cause such successor Paying Agent or any additional Paying Agent appointed by the Owner Trustee to execute and deliver to the Owner Trustee an instrument in which such successor Paying Agent or additional Paying Agent shall agree with the Owner Trustee that as Paying Agent, such successor Paying Agent or additional Paying Agent will hold all sums, if any, held by it for payment to the Certificateholder in trust for the benefit of the Certificateholder until such sums shall be paid to the Certificateholder.  The Paying Agent shall return all unclaimed funds to the Owner Trustee and upon removal of a Paying Agent such Paying Agent shall also return all funds in its possession to the Owner Trustee.  The provisions of Sections 7.01, 7.03, 7.04, 8.01 and 8.02 shall apply to the Owner Trustee or any affiliate thereof also in its role as Paying Agent or Certificate Registrar for so long as the Owner Trustee or any affiliate thereof shall act as Paying Agent or Certificate Registrar, and to the extent applicable, to any other paying agent appointed hereunder.  Any reference in this Agreement to the Paying Agent shall include any co paying agent unless the context requires otherwise.

 

SECTION 3.10.  Depositor as Certificateholder.  On the Closing Date, the Depositor shall acquire the Certificate representing 100% of the initial Certificate Balance and, thereafter, shall retain beneficial and record ownership of the Certificate representing 100% of the Certificate Balance.  Any attempted transfer of any Certificate that would reduce such interest of the Depositor below 100% of the Certificate Balance shall be void.  The Owner Trustee shall cause any Certificate issued to the Depositor to contain a legend stating “THIS CERTIFICATE IS NOT TRANSFERABLE”.

 

SECTION 3.11.  Non-transferability of the Certificate(s).  To the fullest extent permitted by law, notwithstanding anything herein to the contrary, the Certificate(s) is (are) not transferable and shall remain registered in the name of John Deere Receivables, Inc.

 

ARTICLE IV

 

Actions by Owner Trustee

 

SECTION 4.01.  Prior Notice to Owner with Respect to Certain Matters.  With respect to the following matters, the Owner Trustee shall not take action unless at least 30 days before the taking of such action, the Owner Trustee shall have notified the Certificateholder in writing of the proposed action and the Owner shall not have notified the Owner Trustee in writing prior to the 30th day after such notice is given that the Owner has withheld consent or provided alternative direction:

 

  

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(i)           the initiation of any claim or lawsuit by the Trust (other than an action to collect on a Receivable) and the compromise of any action, claim or lawsuit brought by or against the Trust (other than an action to collect on a Receivable);

 

(ii)           the election by the Trust to file an amendment to the Certificate of Trust;

 

(iii)           the amendment of the Indenture by a supplemental indenture in circumstances where the consent of any Noteholder is required;

 

(iv)           the amendment of the Indenture by a supplemental indenture in circumstances where the consent of any Noteholder is not required and such amendment materially adversely affects the interest of the Owner;

 

(v)           the amendment, change or modification of the Administration Agreement, except to cure any ambiguity or to amend or supplement any provision in a manner that would not materially adversely affect the interests of the Owner; or

 

(vi)           the appointment pursuant to the Indenture of a successor Note Registrar, Paying Agent or Indenture Trustee or pursuant to this Agreement of a successor Certificate Registrar, or the consent to the assignment by the Note Registrar, Paying Agent or Indenture Trustee or Certificate Registrar of its obligations under the Indenture or this Agreement, as applicable.

 

SECTION 4.02.  Action by the Owner with Respect to Certain Matters.  The Owner Trustee shall not have the power, except upon the written direction of the Owner and the Holders of not less than a majority of the Outstanding Amount of the Notes, to (a) remove the Administrator under the Administration Agreement pursuant to Section 8 thereof, (b) appoint a successor Administrator pursuant to Section 8 of the Administration Agreement, (c) remove the Servicer under the Sale and Servicing Agreement pursuant to Section 8.01 thereof or (d) except as expressly provided in the Basic Documents, sell the Receivables after the termination of the Indenture.  The Owner Trustee shall take the actions referred to in the preceding sentence only upon written instructions signed by the Owner.

 

SECTION 4.03.  Action by the Owner with Respect to Bankruptcy.  The Owner Trustee shall not have the power to commence a voluntary proceeding in bankruptcy relating to the Trust without the prior written approval of the Owner and the Holders of not less than a majority of the Outstanding Amount of the Notes and the delivery to the Owner Trustee by the Owner of a certificate certifying that the Owner reasonably believes that the Trust is insolvent.

 

SECTION 4.04.  Restrictions on the Owner’s Power.  The Owner shall not direct the Owner Trustee to take or refrain from taking any action if such action or inaction would be contrary to any obligation of the Trust or the Owner Trustee under this Agreement or any of the Basic Documents or would be contrary to Section 2.03 nor shall the Owner Trustee be obligated to follow any such direction, if given.

 

  

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ARTICLE V

 

Application of Trust Funds; Certain Duties

 

SECTION 5.01.  Establishment of Trust Account.  The Owner Trustee, for the benefit of the Certificateholder, shall establish and maintain in the name of the Trust an Eligible Deposit Account (the “Certificate Distribution Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Certificateholder.

 

The Owner Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Certificate Distribution Account and in all proceeds thereof.  Except as otherwise provided herein, the Certificate Distribution Account shall be under the sole dominion and control of the Owner Trustee for the benefit of the Certificateholder.  If, at any time, the Certificate Distribution Account ceases to be an Eligible Deposit Account, the Owner Trustee (or the Depositor on behalf of the Owner Trustee, if the Certificate Distribution Account is not then held by the Owner Trustee or an affiliate thereof) shall within 10 Business Days following notification of such occurrence (or such longer period, not to exceed 30 calendar days, as to which the Rating Agency Condition is satisfied) establish a new Certificate Distribution Account as an Eligible Deposit Account and shall transfer any cash and/or any investments to such new Certificate Distribution Account.

 

SECTION 5.02.  Application of Trust Funds.

 

(a)           On each Payment Date, the Paying Agent will distribute to the Certificateholder, amounts deposited in the Certificate Distribution Account pursuant to Sections 5.04 and 5.05 of the Sale and Servicing Agreement on such Payment Date.

 

(b)           On each Payment Date, the Owner Trustee shall send to the Certificateholder the statement provided to the Owner Trustee by the Servicer pursuant to Section 5.06(a) of the Sale and Servicing Agreement on such Payment Date.

 

SECTION 5.03.  Method of Payment.  Subject to Section 9.01(c), distributions required to be made to the Certificateholder on any Payment Date shall be made to the Certificateholder of record on the preceding Record Date either by wire transfer, in immediately available funds, to the account of the Certificateholder at a bank or other entity having appropriate facilities therefor, if the Certificateholder shall have provided to the Certificate Registrar appropriate written instructions at least five Business Days prior to such Payment Date or, if not, by check mailed to the Certificateholder at the address of the Certificateholder appearing in the Certificate Register.

 

SECTION 5.04.  No Segregation of Monies; No Interest.  Subject to Sections 5.01 and 5.02, monies received by the Owner Trustee hereunder need not be segregated in any manner except to the extent required by law or the Sale and Servicing Agreement and may be deposited under such general conditions as may be prescribed by law, and the Owner Trustee shall not be liable for any interest thereon.

 

  

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SECTION 5.05.  Accounting and Reports to the Owner, the Internal Revenue Service and Others.  The Owner Trustee shall (a) maintain (or cause to be maintained) the books of the Trust on a fiscal year basis ending October 31 (or such other period as may be required by applicable law), with the first year being a short year ending October 31, 20XX, and on the accrual method of accounting, (b) deliver to the Owner, as may be required by the Code and applicable Treasury Regulations, such information as may be required to enable the Owner to prepare its federal and state income tax returns, (c) file such tax returns relating to the Trust as directed by the Owner and make such elections as directed by the Owner as may from time to time be required or appropriate under any applicable State or federal statute or rule or regulation thereunder so as to maintain the Trust’s characterization as disregarded as a separate entity from the Owner for U.S. federal income tax purposes, and (d) in the event that during its term the Trust has more than one beneficial owner or member as determined for such purposes, deliver to each beneficial owner or member and file such returns as directed by the Owner to treat the Trust as a partnership.

 

ARTICLE VI

 

Authority and Duties of Owner Trustee

 

SECTION 6.01.  General Authority.  The Owner Trustee is authorized and directed to execute and deliver the Basic Documents to which the Trust is to be a party and each certificate or other document attached as an exhibit to or contemplated by the Basic Documents to which the Trust is to be a party, or any amendment thereto or other agreement, in each case, in such form as the Depositor shall approve as evidenced conclusively by the delivery of such certificates and documents to the Owner Trustee for the Owner Trustee’s execution thereof.  In addition to the foregoing, the Owner Trustee is authorized, but shall not be obligated, to take all actions required of the Trust pursuant to the Basic Documents.  The Owner Trustee is further authorized from time to time to take such action as the Administrator directs in writing with respect to the Basic Documents and shall, upon the written direction of the Administrator, execute and deliver any amendments to this Agreement or any Basic Documents presented by the Administrator for execution and delivery by the Owner Trustee.

 

SECTION 6.02.  General Duties.  It shall be the duty of the Owner Trustee to discharge (or cause to be discharged) all of its responsibilities pursuant to the terms of this Agreement and the Basic Documents and to administer the Trust in the interest of the Owner, subject to the Basic Documents and in accordance with the provisions of this Agreement.  Notwithstanding the foregoing, the Owner Trustee shall be deemed to have discharged its duties and responsibilities hereunder and under the Basic Documents to the extent the Administrator has agreed in the Administration Agreement to perform any act or to discharge any duty of the Owner Trustee hereunder or under any Basic Document, and the Owner Trustee shall not be liable for the default or failure of the Administrator to carry out its obligations under the Administration Agreement.

 

  

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SECTION 6.03.  Action upon Instruction.

 

(a)           Subject to Article IV, the Owner may, by written instruction, direct the Owner Trustee in the management of the Trust.  Such direction may be exercised at any time by written instruction of the Owner pursuant to Article IV.

 

(b)           The Owner Trustee shall not be required to take any action hereunder or under any Basic Document if the Owner Trustee shall have reasonably determined, or shall have been advised by counsel, that such action is likely to result in liability on the part of the Owner Trustee or is contrary to the terms hereof or of any Basic Document or is otherwise contrary to law.

 

(c)           Whenever the Owner Trustee is unable to decide between alternative courses of action permitted or required by the terms of this Agreement or any Basic Document, the Owner Trustee shall promptly give notice (in such form as shall be appropriate under the circumstances) to the Owner requesting instruction as to the course of action to be adopted, and to the extent the Owner Trustee acts in good faith in accordance with any written instruction of the Owner received, the Owner Trustee shall not be liable on account of such action to any Person.  If the Owner Trustee shall not have received appropriate instruction within ten days of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action, not inconsistent with this Agreement or the Basic Documents, as it shall deem to be in the best interest of the Owner, and shall have no liability to any Person for such action or inaction.

 

(d)           In the event that the Owner Trustee is unsure as to the application of any provision of this Agreement or any Basic Document or any such provision is ambiguous as to its application, or is, or appears to be, in conflict with any other applicable provision, or in the event that this Agreement permits any determination by the Owner Trustee or is silent or is incomplete as to the course of action that the Owner Trustee is required to take with respect to a particular set of facts, the Owner Trustee may give notice (in such form as shall be appropriate under the circumstances) to the Owner requesting instruction and, to the extent that the Owner Trustee acts or refrains from acting in good faith in accordance with any such instruction received, the Owner Trustee shall not be liable, on account of such action or inaction, to any Person.  If the Owner Trustee shall not have received appropriate instruction within 10 days of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action, not inconsistent with this Agreement or the Basic Documents, as it shall deem to be in the best interests of the Owner, and shall have no liability to any Person for such action or inaction.

 

SECTION 6.04.  No Duties Except as Specified in This Agreement or in Instructions.  The Owner Trustee shall not have any duty or obligation to manage, make any payment with respect to, register, record, sell, dispose of, or otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from taking any action under, or in connection with, any document contemplated hereby to which the Owner Trustee is a party, except as expressly provided by the terms of this Agreement or in any document or written instruction received by the Owner Trustee pursuant to Section 6.03; and no implied duties or obligations shall be read into this Agreement or any Basic Document against the Owner Trustee.

 

  

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The Owner Trustee shall have no responsibility for filing any financing or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any security interest or lien granted to it hereunder or to prepare or file any Securities and Exchange Commission filing for the Trust or to record this Agreement or any Basic Document.  The Owner Trustee nevertheless agrees that it will, at its own cost and expense, promptly take all action as may be necessary to discharge any liens on any part of the Owner Trust Estate that result from actions by, or claims against, the Owner Trustee that are not related to the ownership or the administration of the Owner Trust Estate.

 

SECTION 6.05.  No Action Except Under Specified Documents or Instructions.  The Owner Trustee shall not manage, control, use, sell, dispose of or otherwise deal with any part of the Owner Trust Estate except (a) in accordance with the powers granted to and the authority conferred upon the Owner Trustee pursuant to this Agreement, (b) in accordance with the Basic Documents and (c) in accordance with any document or instruction delivered to the Owner Trustee pursuant to Section 6.03.

 

SECTION 6.06.  Restrictions.  The Owner Trustee shall not take any action (a) that is inconsistent with the purposes of the Trust set forth in Section 2.03 or (b) that, to the actual knowledge of the Owner Trustee, would result in the Trust’s becoming taxable as a corporation for federal income tax purposes.  The Owner shall not direct the Owner Trustee to take action that would violate the provisions of this Section.  In no event shall the Trust elect to be treated as an association taxable as a corporation.

 

ARTICLE VII

 

Concerning the Owner Trustee

 

SECTION 7.01.  Acceptance of Trusts and Duties.  The Owner Trustee accepts the trusts hereby created and agrees to perform its duties hereunder with respect to such trusts but only upon the terms of this Agreement.  The Owner Trustee also agrees to disburse all moneys actually received by it constituting part of the Owner Trust Estate upon the terms of the Basic Documents and this Agreement.  The Owner Trustee shall not be answerable or accountable hereunder or under any Basic Document under any circumstances, except for (i) its own willful misconduct or negligence or (ii) the inaccuracy of any representation or warranty contained in Section 7.03 expressly made by the Owner Trustee.  In particular, but not by way of limitation (and subject to the exceptions set forth in the preceding sentence):

 

(i)           the Owner Trustee shall not be liable for any error of judgment made in good faith by a responsible officer of the Owner Trustee;

 

(ii)           the Owner Trustee shall not be liable with respect to any action taken or omitted to be taken by it in accordance with the instructions of the Administrator, the Depositor, the Indenture Trustee or the Owner;

 

  

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(iii)           no provision of this Agreement or any Basic Document shall require the Owner Trustee to expend or risk funds or otherwise incur any financial liability in the performance of any of its rights or powers hereunder or under any Basic Document, if the Owner Trustee shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured or provided to it;

 

(iv)           under no circumstances shall the Owner Trustee be liable for indebtedness evidenced by or arising under any of the Basic Documents, including the principal of and interest on the Notes;

 

(v)           the Owner Trustee shall not be responsible for or in respect of the validity or sufficiency of this Agreement or for the due execution hereof by the Depositor or for the form, character, genuineness, sufficiency, value or validity of any of the Owner Trust Estate or for or in respect of the validity or sufficiency of the Basic Documents, other than the certificate of authentication on the Certificate, and the Owner Trustee shall in no event assume or incur any liability, duty, or obligation to any Noteholder or to the Owner, other than as expressly provided for herein and in the Basic Documents;

 

(vi)           the Owner Trustee shall not be liable for the default or misconduct of the Administrator, the Indenture Trustee or the Servicer under any of the Basic Documents or otherwise and the Owner Trustee shall have no obligation or liability to perform the obligations of the Trust under this Agreement or the Basic Documents that are required to be performed by the Administrator under the Administration Agreement, the Indenture Trustee under the Indenture or the Servicer under the Sale and Servicing Agreement;

 

(vii)           the Owner Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement, or to institute, conduct or defend any disclosure litigation under this Agreement or otherwise or in relation to this Agreement or any Basic Document, at the request, order or direction of the Owner, unless the Owner has offered to the Owner Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities that may be incurred by the Owner Trustee therein or thereby.  The right of the Owner Trustee to perform any discretionary act enumerated in this Agreement or in any Basic Document shall not be construed as a duty, and the Owner Trustee shall not be answerable for other than its negligence or willful misconduct in the performance of any such act; and

 

(viii)           notwithstanding any Person’s right to instruct the Owner Trustee, except as required by law or regulation, neither the Owner Trustee nor any agent, employee, director or officer of the Owner Trustee shall have any obligation to execute any certificates or other documents required pursuant to the Sarbanes-Oxley Act of 2002 or the rules and regulations promulgated thereunder, and the refusal to comply with any such instructions shall not constitute a default or breach under any Basic Document.

 

(ix)           in no event shall the Owner Trustee be liable for any damages in the nature of special, indirect or consequential damages, however styled, including, without limitation, lost profits, or for any losses due to forces beyond the control of the Owner Trustee, including, without limitation, strikes, work stoppages, acts of war or terrorism, insurrection, revolution, nuclear or natural catastrophes or acts of God and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services provided by unaffiliated third parties to the Owner Trustee.

 

  

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SECTION 7.02.  Furnishing of Documents.

 

(a)           The Owner Trustee shall furnish to the Owner promptly upon receipt of a written reasonable request therefor, duplicates or copies of all reports, notices, requests, demands, certificates, financial statements and any other instruments furnished to the Owner Trustee and in its possession under the Basic Documents.

 

(b)           The Owner Trustee shall provide prompt notice to the John Deere Parties of all demands communicated to the Owner Trustee for the repurchase or replacement of any Receivable for breach of the representations and warranties concerning such Receivable.  The Owner Trustee shall, upon written request of either John Deere Party, provide notification to the John Deere Parties with respect to any actions taken by the Owner Trustee or determinations made by the Owner Trustee, in each case with respect to any such demand communicated to the Owner Trustee in respect of any Receivables, such notifications to be provided by the Owner Trustee as soon as practicable and in any event within five Business Days of such request or such other time frame as may be mutually agreed to by the Owner Trustee and the applicable John Deere Party.  Such notices shall be provided to the John Deere Parties at (i) John Deere Capital Corporation, 1 East First Street, Suite 600, Reno, Nevada 89501, Attention:  Manager (775-786-5527), with a copy to Assistant Treasurer, Deere & Company, One John Deere Place, Moline, Illinois 61265-8098 (309-765-5697), or at such other address or by such other means of communication as may be specified by John Deere Capital Corporation to the Owner Trustee from time to time, and (ii) John Deere Receivables, Inc., 1 East First Street, Suite 600, Reno, Nevada 89501, Attention:  Manager (775-786-5914), with a copy to Assistant Treasurer, Deere & Company, One John Deere Place, Moline, Illinois 61265-8098 (309-765-5697), or at such other address or by such other means of communication as may be specified by John Deere Receivables, Inc. to the Owner Trustee from time to time.

 

The Owner Trustee acknowledges and agrees that the purpose of this Section 7.02(d) is to facilitate compliance by the John Deere Parties with the Repurchase Rules and Regulations.  The Owner Trustee acknowledges that interpretations of the requirements of the Repurchase Rules and Regulations may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to comply with reasonable requests made by the John Deere Parties in good faith for delivery of information under these provisions on the basis of evolving interpretations of the Repurchase Rules and Regulations.  The Owner Trustee shall cooperate fully with the John Deere Parties to deliver any and all records and any other information necessary in the good faith determination of the John Deere Parties to permit them to comply with the provisions of Repurchase Rules and Regulations.

 

  

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SECTION 7.03.  Representations and Warranties.  The Owner Trustee hereby represents and warrants to the Depositor, for the benefit of the Owner, that:

 

(i)           it is a _________ duly organized and validly existing in good standing under the laws of the United States of America and it has all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement;

 

(ii)           it has taken all corporate action necessary to authorize the execution and delivery by it of this Agreement, and this Agreement will be executed and delivered by one of its officers who is duly authorized to execute and deliver this Agreement on its behalf; and

 

(iii)           neither the execution nor the delivery by it of this Agreement, nor the consummation by it of the transactions contemplated hereby, nor compliance by it with any of the terms or provisions hereof, will contravene any federal or Delaware law, governmental rule or regulation governing the banking or trust powers of the Owner Trustee, or constitute any default under its charter documents or by-laws.

 

SECTION 7.04.  Reliance; Advice of Counsel.

 

(a)           The Owner Trustee shall incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond, or other document or paper believed by it to be genuine and believed by it to be signed by the proper party or parties.  The Owner Trustee may accept a certified copy of a resolution of the board of directors or other governing body of any corporate party as conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect.  As to any fact or matter the method of the determination of which is not specifically prescribed herein, the Owner Trustee may for all purposes hereof rely on a certificate, signed by the president or any vice president or by the treasurer or other authorized officers of the relevant party, as to such fact or matter, and such certificate shall constitute full protection to the Owner Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon.

 

(b)           In the exercise or administration of the trusts hereunder and in the performance of its duties and obligations under this Agreement or the Basic Documents, the Owner Trustee (i) may act directly or through its agents or attorneys pursuant to agreements entered into with any of them, and the Owner Trustee shall not be liable for the conduct or misconduct of such agents or attorneys if such agents or attorneys shall have been selected by the Owner Trustee with reasonable care, and (ii) may consult with counsel, accountants and other skilled persons to be selected with reasonable care and employed by it.  The Owner Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the written opinion or advice of any such counsel, accountants or other such persons and not contrary to this Agreement or any Basic Document.

 

SECTION 7.05.  Not Acting in Individual Capacity.  Except as provided in this Article VII, in accepting the trusts hereby created ________ acts solely as Owner Trustee hereunder and not in its individual capacity and all Persons having any claim against the Owner Trustee by reason of the transactions contemplated by this Agreement or any Basic Document shall look only to the Owner Trust Estate for payment or satisfaction thereof.

 

  

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SECTION 7.06.  Owner Trustee Not Liable for Certificate or Receivables.  The recitals contained herein and in the Certificate (other than the signature of the Owner Trustee on the Certificate and its representations and warranties in Section 7.03) shall be taken as the statements of the Depositor and the Owner Trustee assumes no responsibility for the correctness thereof.  The Owner Trustee makes no representations as to the validity or sufficiency of this Agreement, of any Basic Document or of the Certificate (other than the signature of the Owner Trustee on the Certificate) or the Notes, or of any Receivable or related documents.  The Owner Trustee shall at no time have any responsibility or liability for or with respect to the legality, validity and enforceability of any Receivable, or the perfection and priority of any security interest created by any Receivable in any Financed Equipment or the maintenance of any such perfection and priority, or for or with respect to the sufficiency of the Owner Trust Estate or its ability to generate the payments to be distributed to the Certificateholder under this Agreement or the Noteholders under the Indenture, including, without limitation:  the existence, condition and ownership of any Financed Equipment; the existence and enforceability of any insurance thereon:  the existence and contents of any Receivable on any computer or other record thereof; the validity of the assignment of any Receivable to the Trust or of any intervening assignment; the completeness of any Receivable; the performance or enforcement of any Receivable; the compliance by the Depositor or the Servicer with any warranty or representation made under any Basic Document or in any related document or the accuracy of any such warranty or representation or any action of the Administrator, the Indenture Trustee or the Servicer or any subservicer taken in the name of the Owner Trustee.

 

SECTION 7.07.  Owner Trustee May Own Notes.  The Owner Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may deal with the Depositor, the Administrator, the Indenture Trustee and the Servicer in banking transactions with the same rights as it would have if it were not Owner Trustee.

 

ARTICLE VIII

 

Compensation of Owner Trustee

 

SECTION 8.01.  Owner Trustee’s Fees and Expenses.  The Owner Trustee shall receive as compensation for its services hereunder such fees as have been separately agreed upon before the date hereof between the Depositor and the Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by the Depositor for its other reasonable expenses hereunder, including the reasonable compensation, expenses and disbursements of such agents, representatives, experts and counsel as the Owner Trustee may employ in connection with the exercise and performance of its rights and its duties hereunder.

 

SECTION 8.02.  Indemnification.  The Depositor shall be liable as primary obligor for, and shall indemnify the Owner Trustee and its successors, assigns, agents (including the Certificate Registrar and the Paying Agent) and servants (collectively, the “Indemnified Parties”) from and against, any and all liabilities, obligations, losses, damages, taxes, claims, actions and suits, and any and all reasonable costs, expenses and disbursements (including reasonable legal fees and expenses) of any kind and nature whatsoever (collectively, “Expenses”) which may at any time be imposed on, incurred by, or asserted against the Owner Trustee or any Indemnified Party in any way relating to or arising out of this Agreement, the Basic Documents, the Owner Trust Estate, the administration of the Owner Trust Estate or the action or inaction of the Owner Trustee hereunder, except only that the Depositor shall not be liable for or required to indemnify the Owner Trustee from and against Expenses arising or resulting from any of the matters described in the third sentence of Section 7.01.

 

  

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The indemnities contained in this Section shall survive the resignation or removal of the Owner Trustee or the termination of this Agreement.  In any event of any claim, action or proceeding for which indemnity will be sought pursuant to this Section, the Owner Trustee’s choice of legal counsel shall be subject to the approval of the Depositor, which approval shall not be unreasonably withheld.

 

SECTION 8.03.  Payments to the Owner Trustee.  Any amounts paid to the Owner Trustee pursuant to this Article VIII shall be deemed not to be a part of the Owner Trust Estate immediately after such payment.

 

ARTICLE IX

 

Termination of Trust Agreement

 

SECTION 9.01.  Termination of Trust Agreement.

 

(a)           The Trust shall dissolve and terminate in accordance with Sections 3808(d) and (e) of the Trust Act (i) upon the final distribution by the Owner Trustee of all moneys or other property or proceeds of the Owner Trust Estate in accordance with the terms of the Indenture, the Sale and Servicing Agreement and Article V or (ii) at the time provided in Section 9.02.  Any money or other property held as part of the Owner Trust Estate following such distribution (and following a final distribution of proceeds from a sale under Section 9.02) shall be distributed to the Depositor.

 

(b)           Except as provided in Section 9.01(a), neither the Depositor nor the Owner shall be entitled to revoke or terminate the Trust.

 

(c)           Notice of any dissolution of the Trust, specifying the Payment Date upon which the Certificateholder shall surrender its Certificate to the Paying Agent for payment of the final distribution and cancellation, shall be given by the Owner Trustee by letter to the Certificateholder mailed within five Business Days of receipt of notice of such termination from the Servicer given pursuant to Section 9.01(c) of the Sale and Servicing Agreement, stating (i) the Payment Date upon or with respect to which final payment of the Certificate shall be made upon presentation and surrender of the Certificate at the office of the Paying Agent therein designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise applicable to such Payment Date is not applicable, payments being made only upon presentation and surrender of the Certificate at the office of the Paying Agent therein specified.  The Owner Trustee shall give such notice to the Certificate Registrar (if other than the Owner Trustee) and the Paying Agent at the time such notice is given to the Certificateholder.

 

  

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Upon presentation and surrender of the Certificate, the Paying Agent shall cause to be distributed to the Certificateholder amounts distributable on such Payment Date pursuant to Section 5.02.

 

In the event that the Certificateholder shall not surrender its Certificate for cancellation within six months after the date specified in the above mentioned written notice, the Owner Trustee shall give a second written notice to the Certificateholder to surrender its Certificate for cancellation and receive the final distribution with respect thereto.  If within one year after the second notice, the Certificate shall not have been surrendered for cancellation, the Owner Trustee may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the Certificateholder concerning surrender of its Certificate, and the cost thereof shall be paid out of the funds and other assets that shall remain subject to this Agreement.  Any funds remaining in the Trust after exhaustion of such remedies shall be distributed by the Owner Trustee to the Depositor.

 

(d)           Upon the winding up of the Trust and satisfaction of all obligations in accordance with Section 3808 of the Trust Statute, the Owner Trustee shall cause the Certificate of Trust to be canceled by filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3810 of the Trust Statute and the Trust shall terminate and this Agreement (other than Article VIII) shall be of no further force or effect.

 

SECTION 9.02.  Dissolution upon Bankruptcy of the Depositor.  In the event that an Insolvency Event shall occur with respect to the Depositor, the Trust shall be dissolved in accordance with Section 9.01 90 days after the date of such Insolvency Event, unless, before the end of such 90-day period, the Owner Trustee shall have received written instructions from each of the Noteholders, to the effect that each such party disapproves of the liquidation of the Receivables and termination of the Trust.  Promptly after the occurrence of any Insolvency Event with respect to the Depositor, (i) the Depositor shall give the Indenture Trustee and the Owner Trustee written notice of such Insolvency Event, (ii) the Owner Trustee shall, upon the receipt of such written notice from the Depositor, give prompt written notice to the Certificateholder and the Indenture Trustee, of the occurrence of such event and (iii) the Indenture Trustee shall, upon receipt of written notice of such Insolvency Event from the Owner Trustee or the Depositor, give prompt written notice to the Noteholders of the occurrence of such event; provided, however, that any failure to give a notice required by this sentence shall not prevent or delay, in any manner, a dissolution of the Trust pursuant to the first sentence of this Section 9.02.  Upon a dissolution pursuant to this Section, the Owner Trustee shall direct the Indenture Trustee promptly to sell the assets of the Trust (other than the Trust Accounts and the Certificate Distribution Account) in a commercially reasonable manner and on commercially reasonable terms.  The proceeds of such a sale of the assets of the Trust shall be treated as collections under the Sale and Servicing Agreement.

 

 

 

 

  

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ARTICLE X

 

Successor Owner Trustees and Additional Owner Trustees

 

SECTION 10.01.  Eligibility Requirements for Owner Trustee.  The Owner Trustee shall at all times be a Person satisfying the provisions of Section 3807(a) of the Trust Statute; authorized to exercise corporate trust powers; and having a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by Federal or State authorities.  If such Person shall publish reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purpose of this Section, the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  In case at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of this Section, the Owner Trustee shall resign immediately in the manner and with the effect specified in Section 10.02.

 

SECTION 10.02.  Resignation or Removal of Owner Trustee.  The Owner Trustee may at any time resign and be discharged from the trusts hereby created by giving written notice thereof to the Administrator, provided, however, that such resignation and discharge shall only be effective upon the appointment of a successor Owner Trustee.  The Owner Trustee shall provide to the Seller in writing and in form and substance reasonably satisfactory to the Seller, all information reasonably requested by the Seller in order to comply with its reporting obligation under the Exchange Act with respect to the resignation of the Owner Trustee.  Upon receiving such notice of resignation, the Administrator shall promptly appoint a successor Owner Trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Owner Trustee and one copy to the successor Owner Trustee.  If no successor Owner Trustee shall have been so appointed and have accepted appointment within 30 days after the giving of such notice of resignation, the resigning Owner Trustee may petition any court of competent jurisdiction for the appointment of a successor Owner Trustee.

 

If at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of Section 10.01 and shall fail to resign after written request therefor by the Administrator, or if at any time the Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or a receiver of the Owner Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Owner Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Administrator may remove the Owner Trustee.  If at any time the Owner Trustee shall fail to comply with any of its obligations under Section 10.02 or Section 10.04 of this Agreement or Section 4.16 of the Sale and Servicing Agreement during the period that the Seller is required to file Exchange Act Reports with respect to the Trust and such failure is not remedied within the lesser of ten calendar days and the period of time in which the related Exchange Act Report is required to be filed (without taking into account any extensions), then the Seller may remove the Owner Trustee.  If the Administrator or Seller shall remove the Owner Trustee under the authority of the two immediately preceding sentences, the Administrator shall promptly appoint a successor Owner Trustee, by written instrument, in triplicate, one copy of which instrument shall be delivered to the outgoing Owner Trustee so removed, one copy to the successor Owner Trustee, and one copy to the Seller, together with the basis for removal and shall pay all fees owed to the outgoing Owner Trustee.

 

  

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Any resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee pursuant to any of the provisions of this Section shall not become effective until acceptance of appointment by the successor Owner Trustee pursuant to Section 10.03 and payment of all fees and expenses owed to the outgoing Owner Trustee.  The Administrator shall provide notice of such resignation or removal of the Owner Trustee to each of the Rating Agencies.

 

SECTION 10.03.  Successor Owner Trustee.  Any successor Owner Trustee appointed pursuant to Section 10.02 shall execute, acknowledge and deliver to the Administrator and to its predecessor Owner Trustee an instrument accepting such appointment under this Agreement and deliver to the Seller in writing and in form and substance reasonably satisfactory to the Seller, all information reasonably requested by the Seller in order to comply with its reporting obligation under the Exchange Act with respect to the successor Owner Trustee, and thereupon the resignation or removal of the predecessor Owner Trustee shall become effective and such successor Owner Trustee, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties, and obligations of its predecessor under this Agreement and the Sale and Servicing Agreement, with like effect as if originally named as Owner Trustee.  The predecessor Owner Trustee shall upon payment of its fees and expenses deliver to the successor Owner Trustee all documents and statements and monies held by it under this Agreement; and the Administrator and the predecessor Owner Trustee shall execute and deliver such instruments and do such other things as may reasonably be required for fully and certainly vesting and confirming in the successor Owner Trustee all such rights, powers, duties, and obligations.

 

No successor Owner Trustee shall accept appointment as provided in this Section unless at the time of such acceptance such successor Owner Trustee shall be eligible pursuant to Section 10.01.

 

Upon acceptance of appointment by a successor Owner Trustee pursuant to this Section, the Administrator shall mail notice of the successor of such Owner Trustee to all Certificateholders, the Indenture Trustee, the Noteholders and shall make such notice available to the Rating Agencies.  If the Administrator shall fail to mail such notice within 10 days after acceptance of appointment by the successor Owner Trustee, the Depositor shall cause such notice to be mailed at the expense of the Administrator.

 

  

22

  

 

SECTION 10.04.  Merger or Consolidation of Owner Trustee.  Any Person into which the Owner Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Owner Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Owner Trustee, shall be the successor of the Owner Trustee hereunder, provided that such Person shall be eligible pursuant to Section 10.01, without the execution or filing of any instrument or any further act on the part of any of the parties hereto; anything herein to the contrary notwithstanding; provided further that the Owner Trustee shall mail notice of such merger or consolidation to the Administrator, which shall make such notice available to the Rating Agencies and that the Owner Trustee will provide the Seller in writing and in form and substance reasonably satisfactory to the Seller, all information reasonably requested by the Seller in order to comply with its reporting obligation under the Exchange Act with respect to the successor Owner Trustee.

 

SECTION 10.05.  Appointment of Co-Trustee or Separate Trustee.  Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the Owner Trust Estate or any Financed Equipment may at the time be located, the Administrator and the Owner Trustee acting jointly shall have the power and shall execute and deliver all instruments to appoint one or more Persons approved by the Owner Trustee to act as co-trustee, jointly with the Owner Trustee, or separate trustee or separate trustees, of all or any part of the Owner Trust Estate, and to vest in such Person, in such capacity, such title to the Trust, or any part thereof, and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Administrator and the Owner Trustee may consider necessary or desirable.  If the Administrator shall not have joined in such appointment within 15 days after the receipt by it of a request so to do, the Owner Trustee alone shall have the power to make such appointment.  No co-trustee or separate trustee under this Agreement shall be required to meet the terms of eligibility as a successor trustee pursuant to Section 10.01 and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant to Section 10.03.

 

Each separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provisions and conditions:

 

(i)           all rights, powers, duties, and obligations conferred or imposed upon the Owner Trustee shall be conferred upon and exercised or performed by the Owner Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Owner Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed, the Owner Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties, and obligations (including the holding of title to the Trust or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Owner Trustee;

 

(ii)           no trustee under this Agreement shall be personally liable by reason of any act or omission of any other trustee under this Agreement; and

 

(iii)           the Administrator and the Owner Trustee acting jointly may at any time accept the resignation of or remove any separate trustee or co-trustee.

 

Any notice, request or other writing given to the Owner Trustee shall be deemed to have been given to each of the then separate trustees and co-trustees, as effectively as if given to each of them.  Every instrument appointing any separate trustee or co-trustee shall refer to this Agreement and the conditions of this Article.  Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Owner Trustee or separately, as may be provided therein, subject to all the provisions of this Agreement, specifically including every provision of this Agreement relating to the conduct of, affecting the liability of, or affording protection to, the Owner Trustee.

 

  

23

  

 

Each such instrument shall be filed with the Owner Trustee and a copy thereof given to the Administrator.

 

Any separate trustee or co-trustee may at any time appoint the Owner Trustee, its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Agreement on its behalf and in its name.  If any separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Owner Trustee, to the extent permitted by law, without the appointment of a new or successor trustee.

 

ARTICLE XI

 

Miscellaneous

 

SECTION 11.01.  Supplements and Amendments.  This Agreement may be amended by the Depositor and the Owner Trustee, without the consent of any of the Noteholders or the Certificateholder, to cure any ambiguity, to correct or supplement any provisions in this Agreement or for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions in this Agreement or of modifying in any manner the rights of the Noteholders or the Certificateholder; provided, however, that such action shall not adversely affect in any material respect the interests of any Noteholder or the Certificateholder, provided further that 10 days’ (or, in the case of Fitch, 10 Business Days’) prior written notice of any such amendment be made available to each Rating Agency by the Administrator and, if Moody’s notifies the Owner Trustee that such amendment will result in a downgrading or withdrawal of the then current rating of any class of the Notes, such amendment shall become effective with the consent of the Holders of Notes evidencing not less than a majority of the Outstanding Amount of the Notes; provided further that any solicitation of such consent shall disclose the downgrading or withdrawal that would result from such amendment.

 

This Agreement may also be amended from time to time by the Depositor and the Owner Trustee, with prior written notice made available to the Rating Agencies by the Administrator, with the consent of the Holders of Notes evidencing not less than a majority of the Outstanding Amount of the Notes and the consent of the Certificateholder (which consents will not be unreasonably withheld) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders or the Certificateholder; provided, however, that no such amendment shall (a) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on Receivables or distributions that shall be required to be made for the benefit of the Noteholders or the Certificateholder or (b) reduce the aforesaid percentage of the Outstanding Amount of the Notes required to consent to any such amendment or eliminate the consent of the Certificateholder to any such amendment, without the consent of the holders of all the outstanding Notes and the Certificate.

 

  

24

  

 

Promptly after the execution of any such amendment or consent, the Owner Trustee shall furnish written notification of the substance of such amendment or consent to the Certificateholder, the Indenture Trustee and the Administrator, which shall make such notification available to each of the Rating Agencies.

 

It shall not be necessary for the consent of the Certificateholder, the Noteholders or the Indenture Trustee pursuant to this Section to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof.

 

Promptly after the execution of any amendment to the Certificate of Trust, the Owner Trustee shall cause the filing of such amendment with the Secretary of State.

 

Prior to the execution of any amendment to this Agreement or the Certificate of Trust, the Owner Trustee shall be entitled to receive and rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and that all conditions precedent have been satisfied.  The Owner Trustee may, but shall not be obligated to, enter into any such amendment which affects the Owner Trustee’s own rights, duties or immunities under this Agreement or otherwise.

 

SECTION 11.02.  No Legal Title to Owner Trust Estate in the Owner.  The Owner shall not have legal title to any part of the Owner Trust Estate.  The Owner shall be entitled to receive distributions with respect to its undivided ownership interest therein only in accordance with Articles V and IX.  No transfer, by operation of law or otherwise, of any right, title, and interest of the Owner to and in its ownership interest in the Owner Trust Estate shall operate to terminate this Agreement or the trusts hereunder or entitle any transferee to an accounting or to the transfer to it of legal title to any part of the Owner Trust Estate.

 

SECTION 11.03.  Limitations on Rights of Others.  Except for Section 2.07, the provisions of this Agreement are solely for the benefit of the Owner Trustee, the Depositor, the Owner, the Administrator and, to the extent expressly provided herein, the Indenture Trustee and the Noteholders and nothing in this Agreement, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Owner Trust Estate or under or in respect of this Agreement or any covenants, conditions or provisions contained herein.

 

SECTION 11.04.  Notices.

 

(a)           Unless otherwise expressly specified or permitted by the terms hereof, all notices shall be in writing and shall be deemed given upon receipt by the intended recipient or three Business Days after mailing if mailed by certified mail, postage prepaid (except that notice to the Owner Trustee shall be deemed given only upon actual receipt by the Owner Trustee), if to the Owner Trustee, addressed to _________; if to the Depositor, addressed to John Deere Receivables, Inc., 1 East First Street, Reno, Nevada 89501, Attention of Manager, with a copy to Deere & Company, One John Deere Place, Moline, Illinois 61265, Attention:  Treasury Department, Assistant Treasurer; or, as to each party, at such other address as shall be designated by such party in a written notice to each other party.

 

  

25

  

 

(b)           Any notice required or permitted to be given to the Certificateholder shall be given by first class mail, postage prepaid, at the address of the Certificateholder as shown in the Certificate Register.  Any notice so mailed within the time prescribed in this Agreement shall be conclusively presumed to have been duly given, whether or not the Certificateholder receives such notice.

 

SECTION 11.05.  Severability.  Any provision of this Agreement or the Certificate that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or thereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

SECTION 11.06.  Separate Counterparts.  This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

 

SECTION 11.07.  Successors and Assigns.  All covenants and agreements contained herein shall be binding upon, and inure to the benefit of, the Depositor, the Owner Trustee and its successors and the Owner and its successors and permitted assigns, all as herein provided.  Any request, notice, direction, consent, waiver or other instrument or action by the Owner shall bind the successors and assigns of the Owner.

 

SECTION 11.08.  Covenant of the Depositor.  In the event that any litigation with claims in excess of $1,000,000 to which the Depositor is a party which shall be reasonably likely to result in a material judgment against the Depositor that the Depositor will not be able to satisfy shall be commenced by the Owner (when the Owner is not the Depositor), during the period beginning nine months following the commencement of such litigation and continuing until such litigation is dismissed or otherwise terminated (and, if such litigation has resulted in a final judgment against the Depositor, such judgment has been satisfied) the Depositor shall not pay any dividend to JDCC, or make any distribution on or in respect of its capital stock to JDCC, or repay the principal amount of any indebtedness of the Depositor held by JDCC, unless (i) after giving effect to such payment, distribution or repayment, the Depositor’s liquid assets shall not be less than the amount of actual damages claimed in such litigation or (ii) the Rating Agency Condition shall have been satisfied with respect to any such payment, distribution or repayment.  The Depositor further agrees that prior to the termination of the Trust it shall not revoke, modify or otherwise amend any agreements with JDCC in effect on the Closing Date in any manner that would adversely affect the rights of the Depositor to receive from JDCC contributions of capital or payments on demand pursuant to such agreements.  The Depositor further covenants and agrees that it will not enter into any transaction or take any action (other than any transaction or action contemplated by this Agreement or any of the Basic Documents) if, as a result of such transaction or action, any rating of either the Notes or the Certificate by any of the Rating Agencies would be downgraded or withdrawn.

 

SECTION 11.09.  No Petition.  The Owner Trustee on behalf of the Trust, the Certificateholder, by accepting a Certificate, and the Indenture Trustee and each Noteholder by accepting the benefits of this Agreement, hereby covenant and agree that they will not at any time institute against the Depositor, or join in any institution against the Depositor of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any U.S. federal or State bankruptcy or similar law in connection with any obligations relating to the Certificate, the Notes, this Agreement or any of the Basic Documents.

 

  

26

  

 

SECTION 11.10.  No Recourse.  The Certificateholder by accepting a Certificate acknowledges that such Certificateholder’s Certificate represents beneficial interests in the Trust only and do not represent interests in or obligations of the Seller, the Servicer, the Administrator, the Owner Trustee, the Indenture Trustee or any Affiliate thereof and no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated in this Agreement, the Certificate or the Basic Documents.

 

SECTION 11.11.  Headings.  The headings of the various Articles and Sections herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof.

 

SECTION 11.12.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE.

 

SECTION 11.13.  Depositor Payment Obligation.  The Depositor shall be responsible for payment of the Administrator’s fees under the Administration Agreement and shall reimburse the Administrator for all expenses and liabilities of the Administrator incurred thereunder.

 

SECTION 11.14.  Administrator.  The Administrator is authorized to execute on behalf of the Trust all such documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Trust to prepare, file or deliver pursuant to the Basic Documents.  Upon request, the Owner Trustee shall execute and deliver to the Administrator a power of attorney appointing the Administrator the agent and attorney in fact of the Trust to execute all such documents, reports, filings, instruments, certificates and opinions.

 

SECTION 11.15.  Communication with Rating Agencies.  If the Owner Trustee shall receive any written or oral communication from any Rating Agency (or any of their respective officers, directors or employees) with respect to the transactions contemplated hereby or under the Basic Documents or in any way relating to the Notes, the Owner Trustee agrees to refrain from communicating with such Rating Agency and to promptly (and, in any event, within one Business Day) notify the Administrator of such communication.  The Owner Trustee agrees to coordinate with the Administrator with respect to any communication to a Rating Agency and further agrees that in no event shall the Owner Trustee engage in any oral communication with respect to the transactions contemplated hereby or under the Basic Documents or in any way relating to the Notes with any Rating Agency (or any of their respective officers, directors or employees) without the participation of the Administrator.

 

  

27

  

 

The Owner Trustee will not be responsible for delays attributable to the Administrator’s failure to deliver any information related to any communication with a Rating Agency (with respect to this section, the “Information”), defects in the Information supplied to the Rating Agency or Administrator or other circumstances beyond the control of the Owner Trustee.  The Owner Trustee shall be under no obligation to make any determination as to the veracity or applicability of any Information provided to it, or whether any such Information is required to be maintained on a website or other public medium.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

28

  

IN WITNESS WHEREOF, the parties hereto have caused this Trust Agreement to be duly executed by their respective officers hereunto duly authorized, as of the day and year first above written.

 

 

	 	
__________

as Owner Trustee, Paying Agent and

Certificate Registrar,

	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 	 	 

 

 

 

	 	
JOHN DEERE RECEIVABLES, INC., as

Depositor,

	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 	 	 

 

 

 

 

 

 

 

 

 

 

  

  

  

EXHIBIT A

 

	NUMBER	$________

R-1

SEE REVERSE FOR CERTAIN DEFINITIONS

 

 

JOHN DEERE OWNER TRUST 20XX

 

ASSET BACKED CERTIFICATE

 

evidencing an undivided interest in the Trust, as defined below, the property of which includes a pool of equipment retail installment sale and loan contracts secured by new and used agricultural and construction equipment and sold to the Trust (as defined below) by John Deere Receivables, Inc.

 

(This Certificate does not represent an interest in or obligation of John Deere Receivables, Inc., John Deere Capital Corporation, Deere & Company or any of their respective affiliates, except to the extent described below.)

 

THIS CERTIFIES THAT John Deere Receivables, Inc. is the registered owner of _________ dollars of nonassessable, fully paid, undivided beneficial interest in John Deere Owner Trust 20XX (the “Trust”) formed by John Deere Receivables, Inc., a Nevada corporation (the “Seller”).

 

THIS CERTIFICATE IS NOT TRANSFERABLE.

 

CERTIFICATE OF AUTHENTICATION

 

This is the Certificate referred to in the within-mentioned Trust Agreement.

 

_________,

as Owner Trustee

 

 

By:                                                               

 

 

 

 

 

 

  

A-1

  

 

The Trust was created pursuant to a Trust Agreement dated as of ________ (the “Trust Agreement”), between the Depositor and _________ as owner trustee (the “Owner Trustee”), a summary of certain of the pertinent provisions of which is set forth below.  To the extent not otherwise defined herein, the capitalized terms used herein have the meanings assigned to them in the Trust Agreement or the Sale and Servicing Agreement dated as of ________ __, 20XX (the “Sale and Servicing Agreement”), among the Trust, the Seller and John Deere Capital Corporation, as servicer (the “Servicer”), as applicable.

 

This Certificate is the duly authorized Certificate designated as the “Asset Backed Certificate” (herein called the “Certificate”).  Also issued under the Indenture, dated as of ________ __, 20XX, between the Trust and U.S. Bank National Association, as Indenture Trustee, are the Class A-1 [●]% Asset Backed Notes, the Class A-2 [●]% Asset Backed Notes, the Class A-3 [●]% Asset Backed Notes[,/and the] Class A-4 [●]% Asset Backed Notes [and the Class B [●]% Asset Backed Notes] (collectively, the “Notes”).  This Certificate is issued under and is subject to the terms, provisions and conditions of the Trust Agreement, to which Trust Agreement the holder of this Certificate by virtue of the acceptance hereof assents and by which such holder is bound.  The property of the Trust includes a pool of retail installment sale and loan contracts for agricultural and construction equipment (the “Receivables”), all monies received on or after ________ __, 20XX from payments on the Receivables, security interests in the equipment financed thereby, certain bank accounts and the proceeds thereof, proceeds from claims on certain insurance policies and certain other rights under the Trust Agreement and the Sale and Servicing Agreement, all right, title, and interest of the Seller in and to the Purchase Agreement, dated as of ________ __, 20XX, between John Deere Capital Corporation and the Seller and all proceeds of the foregoing.  The rights of the holders of the Certificate are subordinated to the rights of the holders of the Notes, as set forth in the Sale and Servicing Agreement.

 

Under the Trust Agreement, there will be distributed on the 15th day of each month or, if such day is not a Business Day, the next Business Day (the “Payment Date”), commencing on ________ __, 20XX, to the person in whose name this Certificate is registered at the close of business on the last day of the month (the “Record Date”) immediately preceding the month in which such Payment Date occurs the Certificateholder’s undivided interest in the amount to be distributed to the Certificateholder on such Payment Date.

 

The holder of this Certificate acknowledges and agrees that its rights to receive distributions in respect of this Certificate are subordinated to the rights of the Noteholders as described in the Sale and Servicing Agreement and the Indenture.

 

It is the intention of the parties that the Trust will be disregarded as an entity separate from the Certificateholder for U.S. federal income tax purposes.

 

The Certificateholder, by its acceptance of a Certificate, covenants and agrees that the Certificateholder will not at any time institute against the Seller, or join in any institution against the Seller of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any U.S. federal or State bankruptcy or similar law in connection with any obligations relating to the Certificate, the Notes, the Trust Agreement or any of the Basic Documents.

 

  

A-2

  

 

Distributions on this Certificate will be made as provided in the Trust Agreement by the Owner Trustee by wire transfer or check mailed to the Certificateholder of record in the Certificate Register without the presentation or surrender of this Certificate or the making of any notation hereon.  Except as otherwise provided in the Trust Agreement and notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Owner Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency maintained for the purpose by the Owner Trustee.

 

Reference is hereby made to the further provisions of this Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon shall have been executed by an authorized officer of the Owner Trustee, by manual signature, this Certificate shall not entitle the holder hereof to any benefit under the Trust Agreement or the Sale and Servicing Agreement or be valid for any purpose.

 

THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE.

 

IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not in its individual capacity, has caused this Certificate to be duly executed.

 

	 	

JOHN DEERE OWNER TRUST 20XX

	 
	 	 	 	 	 
	 	By:  	 	,	 
	 	
not in its individual capacity but solely

as Owner Trustee

	 
	 	 	 
	 	 	 
	 	 	 
	Dated:	By:	 	 	 

 

 

 

 

 

 

 

 

  

A-3

  

 

(Reverse of Certificate)

 

The Certificate does not represent an obligation of, or an interest in, the Seller, the Servicer, Deere & Company, the Indenture Trustee, the Owner Trustee or any affiliates of any of them and no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated herein or in the Trust Agreement or the Basic Documents.  In addition, this Certificate is not guaranteed by any governmental agency or instrumentality and is limited in right of payment to certain collections with respect to the Receivables (and certain other amounts), all as more specifically set forth herein and in the Sale and Servicing Agreement.  The Certificate is limited in right of payment to certain collections and recoveries respecting the Receivables, all as more specifically set forth in the Sale and Servicing Agreement.  A copy of each of the Sale and Servicing Agreement and the Trust Agreement may be examined during normal business hours at the principal office of the Seller, and at such other places, if any, designated by the Seller, by the Certificateholder upon written request.

 

The Trust Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Seller and the rights of the Certificateholder under the Trust Agreement at any time by the Seller and the Owner Trustee with the consent of the holders of the Notes voting as a class evidencing not less than a majority of the outstanding Notes and the consent of the Certificateholder (which consents shall not be unreasonably withheld).  Any such consent by the holder of this Certificate shall be conclusive and binding on the holder of this Certificate and of any Certificate issued upon the transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent is made upon this Certificate.  The Trust Agreement also permits the amendment thereof, in certain limited circumstances, without the consent of the holder of the Certificate.

 

As provided in the Trust Agreement, this Certificate is non transferable.  The initial Certificate Registrar appointed under the Trust Agreement is ________.

 

The Certificate is issuable only as a registered Certificate without coupons in minimum denominations of at least $100,000.  As provided in the Trust Agreement and subject to certain limitations therein set forth, the Certificate is exchangeable for new Certificates of authorized denominations evidencing the same aggregate denomination, as requested by the holder surrendering the same.  No service charge will be made for any such exchange, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge payable in connection therewith.

 

The Owner Trustee, the Certificate Registrar and any agent of the Owner Trustee or the Certificate Registrar may treat the person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Owner Trustee, the Certificate Registrar or any such agent shall be affected by any notice to the contrary.

 

The obligations and responsibilities created by the Trust Agreement and the Trust created thereby shall terminate upon the payment to the Certificateholder of all amounts required to be paid to it pursuant to the Trust Agreement and the Sale and Servicing Agreement and the disposition of all property held as part of the Trust.  The Servicer of the Receivables may at its option purchase the corpus of the Trust at a price specified in the Sale and Servicing Agreement,

 

  

A-4

  

 

and such purchase of the Receivables and other property of the Trust will effect early retirement of the Certificate; however, such right of purchase is exercisable only as of the last day of any Collection Period as of which the Pool Balance is less than or equal to 10% of the initial principal balance of the Receivables.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

A-5

  

 

EXHIBIT B

 

CERTIFICATE OF TRUST

OF

JOHN DEERE OWNER TRUST 20XX

 

THIS Certificate of Trust of John Deere Owner Trust 20XX (the “Trust”)  is being duly executed and filed by the undersigned, as trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del.  Code, Section 3801 et seq.) (the “Act”).

 

1.           Name.  The name of the statutory trust formed hereby is John Deere Owner Trust 20XX.

 

2.           Delaware Trustee.  The name and address of the trustee of the Trust with a principal place of business in the State of Delaware are ________.

 

3.           This Certificate of Trust shall be effective upon filing.

 

IN WITNESS WHEREOF, the undersigned has executed this Certificate of Trust in accordance with Section 3811(a)(1) of the Act.

 

 

	 	 	 	,	 
	 	
not in its individual capacity but solely

as trustee of the Trust.

	 
	 	 	 
	 	 	 
	 	 	 
	 	By:	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

 

 

B-1exv10w1

Exhibit 10.1

CONEXANT HOLDINGS, INC.

 

2011 INCENTIVE COMPENSATION PLAN

 

 

 

CONEXANT HOLDINGS, INC.

 

2011 INCENTIVE COMPENSATION PLAN

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE I PURPOSE
	 	 	1	 
	ARTICLE II DEFINITIONS
	 	 	1	 
	ARTICLE III ADMINISTRATION
	 	 	6	 
	ARTICLE IV SHARE LIMITATION
	 	 	9	 
	ARTICLE V ELIGIBILITY
	 	 	11	 
	ARTICLE VI STOCK OPTIONS
	 	 	11	 
	ARTICLE VII CHANGE IN CONTROL PROVISIONS
	 	 	15	 
	ARTICLE VIII TERMINATION OR AMENDMENT OF PLAN
	 	 	16	 
	ARTICLE IX COMPANY CALL RIGHTS; RIGHTS OF FIRST REFUSAL
	 	 	17	 
	ARTICLE X UNFUNDED STATUS OF PLAN
	 	 	18	 
	ARTICLE XI GENERAL PROVISIONS
	 	 	18	 
	ARTICLE XII EFFECTIVE DATE OF PLAN
	 	 	22	 
	ARTICLE XIII TERM OF PLAN
	 	 	22	 
	ARTICLE XIV NAME OF PLAN
	 	 	22	 

i

 

CONEXANT HOLDINGS, INC.

 

2011 INCENTIVE COMPENSATION PLAN

 

ARTICLE I

PURPOSE

     The purpose of this Conexant Holdings, Inc. 2011 Incentive Compensation Plan is to enhance the
profitability and value of the Company for the benefit of its stockholders by enabling the Company
to offer Eligible Individuals cash and stock-based incentives in order to attract, retain and
reward such individuals and strengthen the mutuality of interests between such individuals and the
Company’s stockholders. The Plan is effective as of the date set forth in Article XII.

ARTICLE II

DEFINITIONS

     For purposes of this Plan, the following terms shall have the following meanings:

     2.1 “Acquisition Event” has the meaning set forth in Section 4.2(d).

     2.2 “Affiliate” means each of the following: (a) any Subsidiary; (b) any Parent; (c)
any corporation, trade or business (including, without limitation, a partnership or limited
liability company) which is directly or indirectly controlled 50% or more (whether by ownership of
stock, assets or an equivalent ownership interest or voting interest) by the Company or one of its
Affiliates; (d) any trade or business (including, without limitation, a partnership or limited
liability company) which directly or indirectly controls 50% or more (whether by ownership of
stock, assets or an equivalent ownership interest or voting interest) of the Company; and (e) any
other entity in which the Company or any of its Affiliates has a material equity interest and which
is designated as an “Affiliate” by resolution of the Committee.

     2.3 “Award” means any award under the Plan of any Stock Option. All Awards shall be
granted by, confirmed by, and subject to (i) the terms of, a written agreement executed by the
Company and the Participant, and (ii) approval of the Committee.

     2.4 “Award Agreement” means the written agreement setting forth the terms and
conditions applicable to an Award.

     2.5 “Board” means the Board of Directors of the Company.

     2.6 “Cause” means, unless otherwise determined by the Committee in the applicable
Award Agreement, with respect to a Participant’s Termination of Employment or Termination of

 

 

     Consultancy, the following: (a) in the case where there is no employment agreement,
consulting agreement, change in control agreement or similar agreement in effect between the
Company or an Affiliate and the Participant at the time of the grant of the Award (or where there
is such an agreement but it does not define “cause” (or words of like import)), termination due to
such Participant’s (i) commission of a felony or any other act or omission involving dishonesty,
disloyalty, moral turpitude, willful misconduct or fraud with respect to the Company or any of its
Affiliates, (ii) conduct tending to bring the Company or any of its Affiliates into substantial
public disgrace or disrepute, (iii) substantial and repeated failure to perform his or her duties
or responsibilities as reasonably directed by the Board or its designees, (iv) breach of fiduciary
duty, gross negligence or willful misconduct with respect to the Company or any of its Affiliates,
(v) an act or omission aiding or abetting a competitor, supplier or customer of the Company or any
of its Subsidiaries to the disadvantage or detriment of the Company or any of its Subsidiaries, or
(vi) any other breach of any written agreement between such Participant and the Company or any
agreement involving the Company to which such Participant is bound (including, for the avoidance of
doubt, any written agreement governing the employment relationship between such Participant and the
Company or any of its subsidiaries), in each case as determined by the Committee in its sole
discretion; or (b) in the case where there is an employment agreement, consulting agreement, change
in control agreement or similar agreement in effect between the Company or an Affiliate and the
Participant at the time of the grant of the Award that defines “cause” (or words of like import),
“cause” as defined under such agreement; provided, however, that with regard to any agreement under
which the definition of “cause” only applies on occurrence of a change in control, such definition
of “cause” shall not apply until a change in control actually takes place and then only with regard
to a termination thereafter. With respect to a Participant’s Termination of Directorship, “cause”
means an act or failure to act that constitutes cause for removal of a director under applicable
Delaware law.

     2.7 “Change in Control” has the meaning set forth in Section 7.2.

     2.8 “Change in Control Price” has the meaning set forth in Section 7.1(b).

     2.9 “Code” means the Internal Revenue Code of 1986, as amended. Any reference to any
section of the Code shall also be a reference to any successor provision and any Treasury
Regulation promulgated thereunder.

     2.10 “Committee” means any committee of the Board duly authorized by the Board to
administer the Plan. If no committee is duly authorized by the Board to administer the Plan, the
term “Committee” shall be deemed to refer to the Board for all purposes under the Plan.

     2.11 “Common Stock” means the Class A Common Stock, $0.01 par value per share, of the
Company, and such other series or class of common stock of the Company as the Board may designate
from time to time by duly promulgated resolution.

     2.12 “Company” means Conexant Holdings, Inc., a Delaware corporation, and its
successors by operation of law.

     2.13 “Consultant” means any natural person who is an advisor or consultant to the
Company or its Affiliates.

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     2.14 “Detrimental Activity” means, unless otherwise determined by the Committee, in
the applicable Award Agreement: (a) the disclosure to anyone outside the Company or its
Affiliates, or the use in any manner other than in the furtherance of the Company’s or its
Affiliate’s business, without written authorization from the Company, of any confidential
information, trade secrets or proprietary information, relating to the business of the Company or
its Affiliates that is acquired by a Participant prior to the Participant’s Termination; (b)
activity while employed or performing services that results, or if known could result, in the
Participant’s Termination that is classified by the Company as a termination for Cause; (c) any
attempt, directly or indirectly, to solicit, induce or hire (or the identification for
solicitation, inducement or hiring of) any employee of the Company or its Affiliates to be employed
by, or to perform services for, the Participant or any person or entity with which the Participant
is associated (including, but not limited to, due to the Participant’s employment by, consultancy
for, equity interest in, or creditor relationship with such person or entity) or any person or
entity from which the Participant receives direct or indirect compensation or fees as a result of
such solicitation, inducement or hire (or the identification for solicitation, inducement or hire)
without, in all cases, written authorization from the Company; (d) any attempt, directly or
indirectly, to solicit in a competitive manner any customer or prospective customer of the Company
or its Affiliates at the time of a Participant’s Termination, without, in all cases, written
authorization from the Company; (e) the Participant’s Disparagement, or inducement of others to do
so, of the Company or its Affiliates or their past and present officers, directors, employees or
products; (f) the rendering of services for any organization, or engaging, directly or indirectly,
in any business, which is competitive with the Company or its Affiliates, or the rendering of
services to such organization or business if such organization or business is otherwise prejudicial
to or in conflict with the interests of the Company or its Affiliates; provided, however, that
competitive activities shall only be those competitive with any business unit or Affiliate of the
Company with regard to which the Participant performed services at any time within the two years
prior to the Participant’s Termination; or (g) breach of any agreement between the Participant and
the Company or an Affiliate (including, without limitation, any employment agreement or
noncompetition or nonsolicitation agreement). For purposes of sub-sections (a), (c), (d) and (f)
above, the Board, the President or the Secretary of the Company shall have authority to provide the
Participant, except for himself or herself, with written authorization to engage in the activities
contemplated thereby and no other person shall have authority to provide the Participant with such
authorization.

     2.15 “Disability” means, unless otherwise determined by the Committee in the
applicable Award Agreement, with respect to a Participant’s Termination, a permanent and total
disability as defined in Section 22(e)(3) of the Code. A Disability shall only be deemed to occur
at the time of the determination by the Committee of the Disability.

     2.16 “Disparagement” means making comments or statements to the press, the Company’s
or its Affiliates’ employees, consultants or any individual or entity with whom the Company or its
Affiliates has a business relationship which could reasonably be expected to adversely affect in
any manner: (a) the conduct of the business of the Company or its Affiliates (including, without
limitation, any products or business plans or prospects); or (b) the business reputation of the
Company or its Affiliates, or any of their products, or their past or present officers, directors
or employees.

     2.17 “Effective Date” means the effective date of the Plan as defined in Article XII.

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     2.18 “Eligible Employee” means each employee of the Company or an Affiliate.

     2.19 “Eligible Individual” means an Eligible Employee, Non-Employee Director or
Consultant who is designated by the Committee in its discretion as eligible to receive Awards
subject to the conditions set forth herein.

     2.20 “Exchange Act” means the Securities Exchange Act of 1934, as amended. Reference
to a specific section of the Exchange Act or regulation thereunder shall include such section or
regulation, any valid regulation or interpretation promulgated under such section, and any
comparable provision of any future legislation or regulation amending, supplementing or superseding
such section or regulation.

     2.21 “Fair Market Value” means, for purposes of the Plan, unless otherwise required by
any applicable provision of the Code or any regulations issued thereunder, as of any date and
except as provided below: (a) the last sales price reported for the applicable Common Stock on the
applicable date as reported on the principal national securities exchange in the United States on
which it is then traded or (b) if the applicable Common Stock is not traded, listed or otherwise
reported or quoted, the price determined in good faith by the Committee in whatever manner it
considers appropriate. For purposes of the grant of any Award, the applicable date shall be the
trading day immediately prior to the date on which the Award is granted. For purposes of the
exercise of any Award, the applicable date shall be the date a notice of exercise is received by
the Committee or, if not a day on which the applicable market is open, the next day that it is
open.

     2.22 “Family Group” means a Participant’s spouse, descendants (whether natural or
adopted) and any trust solely for the benefit of such Participant and/or such Participant’s spouse
or descendants.

     2.23
“Lead Underwriter” has the meaning set forth in Section 11.20.

     2.24
“Lock-Up Period” has the meaning set forth in Section 11.20.

     2.25
“Merger Event” has the meaning set forth in Section 4.2(b).

     2.26 “Non-Employee Director” means a director or a member of the Board of the Company
or any Affiliate who is not an active employee of the Company or any Affiliate.

     2.27 “Non-Qualified Stock Option” means any Stock Option awarded under the Plan.

     2.28 “Other Extraordinary Event” has the meaning set forth in Section 4.2(b).

     2.29 “Parent” means any parent corporation of the Company within the meaning of
Section 424(e) of the Code.

     2.30 “Participant” means an Eligible Individual to whom an Award has been granted
pursuant to the Plan.

     2.31 “Plan” means this Conexant Holdings, Inc. 2011 Incentive Compensation Plan, as
amended from time to time.

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     2.32 “Registration Date” means the date on which the Company sells its Common Stock in
a bona fide, firm commitment underwriting pursuant to a registration statement under the Securities
Act.

     2.33 “Reloads” has the meaning set forth in Section 6.3(o).

     2.34 “Rule 16b-3” means Rule 16b-3 under Section 16(b) of the Exchange Act as then in
effect or any successor provision.

     2.35 “Section 4.2 Event” has the meaning set forth in Section 4.2(b).

     2.36 “Section 409A of the Code” means the nonqualified deferred compensation rules
under Section 409A of the Code and any applicable treasury regulations and other official guidance
thereunder.

     2.37 “Securities Act” means the Securities Act of 1933, as amended and all rules and
regulations promulgated thereunder. Reference to a specific section of the Securities Act or
regulation thereunder shall include such section or regulation, any valid regulation or
interpretation promulgated under such section, and any comparable provision of any future
legislation or regulation amending, supplementing or superseding such section or regulation.

     2.38 “Stock Option” or ”Option” means any option to purchase shares of Common
Stock granted to Eligible Individuals granted pursuant to Article VI.

     2.39 “Subsidiary” means any subsidiary corporation of the Company within the meaning
of Section 424(f) of the Code.

     2.40 “Termination” means a Termination of Consultancy, Termination of Directorship or
Termination of Employment, as applicable.

     2.41 “Termination of Consultancy” means: (a) that the Consultant is no longer acting
as a consultant to the Company or a Subsidiary; or (b) when an entity which is retaining a
Participant as a Consultant ceases to be a Subsidiary unless the Participant otherwise is, or
thereupon becomes, a Consultant to the Company or another Subsidiary at the time the entity ceases
to be a Subsidiary; or (c) when an entity which is retaining a Participant as a Consultant ceases
to be an Affiliate with respect to the Company or a Subsidiary. In the event that a Consultant
becomes an Eligible Employee or a Non-Employee Director upon the termination of his or her
consultancy, unless otherwise determined by the Committee, in its sole discretion, no Termination
of Consultancy shall be deemed to occur until such time as such Consultant is no longer a
Consultant, an Eligible Employee or a Non-Employee Director. Notwithstanding the foregoing, the
Committee may otherwise define Termination of Consultancy in the Award Agreement or, if no rights
of a Participant are reduced, may otherwise define Termination of Consultancy thereafter.

     2.42 “Termination of Directorship” means that the Non-Employee Director has ceased to
be a director of the Company; except that if a Non-Employee Director becomes an Eligible Employee
or a Consultant upon the termination of his or her directorship, his or her ceasing to be a
director of the Company shall not be treated as a Termination of Directorship

5

 

unless and until the Participant has a Termination of Employment or Termination of
Consultancy, as the case may be. Notwithstanding the foregoing, the Committee may otherwise define
Termination of Directorship in the Award Agreement, or if no rights of a Participant are reduced,
may otherwise define Termination of Directorship thereafter.

     2.43 “Termination of Employment” means: (a) a termination of employment (for reasons
other than a military or personal leave of absence granted by the Company) of a Participant from
the Company and its Subsidiary; or (b) when an entity which is employing a Participant ceases to be
a Subsidiary, unless the Participant otherwise is, or thereupon becomes, employed by the Company or
another Subsidiary at the time the entity ceases to be a Subsidiary. In the event that an Eligible
Employee becomes a Consultant or a Non-Employee Director upon the termination of his or her
employment, unless otherwise determined by the Committee, in its sole discretion, no Termination of
Employment shall be deemed to occur until such time as such Eligible Employee is no longer an
Eligible Employee, a Consultant or a Non-Employee Director. Notwithstanding the foregoing, the
Committee may otherwise define Termination of Employment in the Award Agreement or, if no rights of
a Participant are reduced, may otherwise define Termination of Employment thereafter.

     2.44 “Transfer” means: (a) when used as a noun, any direct or indirect transfer,
sale, assignment, pledge, hypothecation, encumbrance or other disposition (including the issuance
of equity in any entity), whether for value or no value and whether voluntary or involuntary
(including by operation of law), and (b) when used as a verb, to directly or indirectly transfer,
sell, assign, pledge, encumber, charge, hypothecate or otherwise dispose of (including the issuance
of equity in any entity) whether for value or for no value and whether voluntarily or involuntarily
(including by operation of law). “Transferred” and “Transferable” shall have a correlative
meaning.

ARTICLE III

ADMINISTRATION

     3.1 The Committee. The Plan shall be administered and interpreted by the Committee.
To the extent required by applicable law, rule or regulation, it is intended that each member of
the Committee shall qualify as (a) a “non-employee director” under Rule 16b-3, (b) an “outside
director” under Code Section 162(m) and (c) an “independent director” under the rules of any
national securities exchange or national securities association, as applicable. If it is later
determined that one or more members of the Committee do not so qualify, actions taken by the
Committee prior to such determination shall be valid despite such failure to qualify. In the event
that any member of the Committee does not qualify as a “non-employee director” for purposes of
Section 16 of the Exchange Act, then all compensation that is intended to be exempt from Section 16
will also be approved by the Board or a subcommittee made up of members of the Board who qualify as
non-employee directors. In the event that any member of the Committee does not qualify as an
“outside director” for purposes of Section 162(m) of the Code, then all compensation that is
intended to be exempt from Section 162(m) of the Code will also be approved by a subcommittee made
up of members of the Board who qualify as outside directors.

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     3.2 Grants of Awards. The Committee shall have full authority to grant, pursuant to
the terms of this Plan Stock Options to Eligible Individuals. In particular, the Committee shall
have the authority:

          (a) to select the Eligible Individuals to whom Awards may from time to time be granted
hereunder;

          (b) to determine whether and to what extent Awards are to be granted hereunder to one or more
Eligible Individuals;

          (c) to determine the number of shares of Common Stock to be covered by each Award granted
hereunder;

          (d) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any
Award granted hereunder (including, but not limited to, the exercise or purchase price (if any),
any restriction or limitation, any vesting schedule or acceleration thereof, or any forfeiture
restrictions or waiver thereof, regarding any Award and the shares of Common Stock relating
thereto, based on such factors, if any, as the Committee shall determine, in its sole discretion);

          (e) to determine whether, to what extent and under what circumstances grants of Awards under
the Plan are to operate on a tandem basis and/or in conjunction with or apart from other awards
made by the Company outside of this Plan;

          (f) to determine whether and under what circumstances a Stock Option may be settled in cash
and/or Common Stock under Section 6.3(d);

          (g) to determine whether to require a Participant, as a condition of the granting of any
Award, to not sell or otherwise dispose of shares acquired pursuant to the exercise of an Award for
a period of time as determined by the Committee, in its sole discretion, following the date of the
acquisition of such Award;

          (h) to modify, extend or renew an Award, subject to Article VIII and Section 6.3(k); and

          (i) solely to the extent permitted by applicable law, to determine whether, to what extent and
under what circumstances to provide loans (which may be on a recourse basis and shall bear interest
at the rate the Committee shall provide) to Participants in order to exercise Options under the
Plan.

     3.3 Guidelines. Subject to Article VIII hereof, the Committee shall have the
authority to adopt, alter and repeal such administrative rules, guidelines and practices governing
the Plan and perform all acts, including the delegation of its responsibilities (to the extent
permitted by applicable law and applicable stock exchange rules), as it shall, from time to time,
deem advisable; to construe and interpret the terms and provisions of the Plan and any Award issued
under the Plan (and any agreements relating thereto); and to otherwise supervise the administration
of the Plan. The Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or in any agreement relating thereto in the manner and to

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the extent it shall deem necessary to effectuate the purpose and intent of the Plan. The
Committee may adopt special guidelines and provisions for persons who are residing in or employed
in, or subject to the taxes of, any domestic or foreign jurisdictions to comply with applicable tax
and securities laws of such domestic or foreign jurisdictions. Notwithstanding the foregoing, no
action of the Committee under this Section shall impair the rights of any Participant under an
Award Agreement or Award without the Participant’s consent. To the extent applicable, this Plan is
intended to comply with the applicable requirements of Rule 16b-3, and the Plan shall be limited,
construed and interpreted in a manner so as to comply therewith.

     3.4 Decisions Final. Any decision, interpretation or other action made or taken in
good faith by or at the direction of the Company, the Board or the Committee (or any of its
members) arising out of or in connection with the Plan shall be within the absolute discretion of
all and each of them, as the case may be, and shall be final, binding and conclusive on the Company
and all employees and Participants and their respective heirs, executors, administrators,
successors and assigns.

     3.5 Procedures. The Committee shall hold meetings, subject to the By-Laws of the
Company, at such times and places as it shall deem advisable, including, without limitation, by
telephone conference or by written consent to the extent permitted by applicable law. A majority
of the Committee members shall constitute a quorum. All determinations of the Committee shall be
made by a majority of its members. Any decision or determination reduced to writing and signed by
all of the Committee members in accordance with the By-Laws of the Company, shall be fully
effective as if it had been made by a vote at a meeting duly called and held. The Committee shall
keep minutes of its meetings and shall make such rules and regulations for the conduct of its
business as it shall deem advisable.

     3.6 Designation of Consultants/Liability.

          (a) The Committee may designate employees of the Company and professional advisors to assist
the Committee in the administration of the Plan and (to the extent permitted by applicable law and
applicable exchange rules) may grant authority to officers to grant Awards and/or execute
agreements or other documents on behalf of the Committee.

          (b) The Committee may employ such legal counsel, consultants and agents as it may deem
desirable for the administration of the Plan and may rely upon any opinion received from any such
counsel or consultant and any computation received from any such consultant or agent. Expenses
incurred by the Committee or the Board in the engagement of any such counsel, consultant or agent
shall be paid by the Company. The Committee, its members and any person designated pursuant to
sub-section (a) above shall not be liable for any action or determination made in good faith with
respect to the Plan. To the maximum extent permitted by applicable law, no officer of the Company
or member or former member of the Committee or of the Board shall be liable for any action or
determination made in good faith with respect to the Plan or any Award granted under it.

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ARTICLE IV

SHARE LIMITATION

     4.1 Shares. (a) Subject to any increase or decrease pursuant to Section 4.2, the
aggregate number of shares of Common Stock that may be issued or used for reference purposes or
with respect to which Awards may be granted under the Plan shall not exceed twenty-five million
(25,000,000) shares. Such shares may be either authorized and unissued Common Stock or Common Stock
held in or acquired for the treasury of the Company or both. If any Option granted under the Plan
expires, terminates or is canceled for any reason without having been exercised in full, the number
of shares of Common Stock underlying any unexercised Award shall again be available for the purpose
of Awards under the Plan. In addition, any shares of Common Stock exchanged by a Participant or
withheld from a Participant as full or partial payment to the Company of the exercise price or tax
withholding upon exercise or payment of an Award under the Plan shall be added back to the
foregoing maximum share limitation and may be made subject to Awards under the Plan pursuant to
such limitation. Any Award under the Plan settled in cash shall not be counted against the
foregoing maximum share limitations.

     4.2 Changes.

          (a) The existence of the Plan and the Awards granted hereunder shall not affect in any way the
right or power of the Board or the stockholders of the Company to make or authorize (i) any
adjustment, recapitalization, reorganization or other change in the Company’s capital structure or
its business, (ii) any merger or consolidation of the Company or any Affiliate, (iii) any issuance
of bonds, debentures, preferred or prior preference stock ahead of or affecting the Common Stock,
(iv) the dissolution or liquidation of the Company or any Affiliate, (v) any sale or transfer of
all or part of the assets or business of the Company or any Affiliate or (vi) any other corporate
act or proceeding.

          (b) Subject to the provisions of Section 4.2(d), in the event of a dividend or other
distribution (whether in the form of cash, Common Stock, other securities, or other property) other
than regular cash dividends, recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, spin-off, combination, Change in Control or exchange of Common
Stock or other securities of the Company, or other corporate transaction or event affects the
Common Stock such that an adjustment is necessary or appropriate in order to prevent dilution or
enlargement of benefits or potential benefits intended to be made available under the Plan (a
“Section 4.2 Event”), the Committee shall equitably adjust (i) the number of shares of
Common Stock or other securities of the Company (or number and kind of other securities or
property) with respect to which Awards may be granted under the Plan, (ii) the maximum share
limitation applicable to each type of Award that may be granted to any individual participant in
any calendar year, (iii) the number of shares of Common Stock or other securities of the Company
(or number and kind of other securities or property) subject to outstanding Awards, and (iv) the
exercise price with respect to any Stock Option. Any such adjustment determined by the Committee
shall be final, binding and conclusive on the Company and all Participants and their respective
heirs, executors, administrators, successors and permitted assigns. If the Company enters into or
is involved in any merger, recapitalization, consolidation, reorganization, Change in Control or
other business combination with any person or entity (a “Merger Event”), the Committee may,
prior to such Merger Event and effective upon such Merger Event, take such action as it deems
appropriate, including, but not limited to, replacing Awards with substitute Awards in respect of
the shares, other securities or other property of the surviving corporation or any affiliate of the
surviving corporation on such terms and conditions, as to the number of shares, pricing and

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otherwise, which shall substantially preserve the value, rights and benefits of any affected
Awards granted hereunder as of the date of the consummation of the Merger Event. Upon receipt by
any affected Participant of any such substitute Award (or payment) as a result of any such Merger
Event, such Participant’s affected Awards for which such substitute Awards (or payment) were
received shall be thereupon cancelled without the need for obtaining the consent of any such
affected Participant. In addition, subject to Section 4.2(d), if there shall occur any change in
the capital structure or the business of the Company that is not a Section 4.2 Event or Merger
Event (an “Other Extraordinary Event”), then the Committee, in its sole discretion, may
adjust any Award and make such other adjustments to the Plan. Except as expressly provided in this
Section 4.2 or in the applicable Award Agreement, a Participant shall have no rights by reason of
any Section 4.2 Event, Merger Event, or any Other Extraordinary Event.

          (c) Fractional shares of Common Stock resulting from any adjustment in Awards pursuant to
Section 4.2(a) or 4.2(b) shall be aggregated until, and eliminated at, the time of exercise by
rounding-down for fractions less than one-half and rounding-up for fractions equal to or greater
than one-half. No cash settlements shall be made with respect to fractional shares eliminated by
rounding. Notice of any adjustment shall be given by the Committee to each Participant whose Award
has been adjusted and such adjustment (whether or not such notice is given) shall be effective and
binding for all purposes of the Plan.

          (d) Unless otherwise expressly determined by the Committee in the applicable Award Agreement
or other written agreement approved by the Committee, in the event of a Merger Event in which the
Company is not the surviving entity or in the event of any transaction that results in the
acquisition of substantially all of the Company’s outstanding Common Stock by a single person or
entity or by a group of persons and/or entities acting in concert, or in the event of the sale or
transfer of all or substantially all of the Company’s assets (all of the foregoing being referred
to as an “Acquisition Event”), then:

               (i) The Committee may, in its sole discretion, terminate all outstanding and unexercised
Stock Options (whether or not vested), effective as of the date of the Acquisition Event, by
delivering notice of termination to each Participant at least seven days prior to the date of
consummation of the Acquisition Event, in which case during the period from the date on which
such notice of termination is delivered to the consummation of the Acquisition Event, each such
Participant shall have the right to exercise in full all of his or her Awards that are then
outstanding and vested, but any such exercise may be indicated as contingent on the occurrence
of the Acquisition Event, and, provided that, if the Acquisition Event does not take place
within a specified period after giving such notice for any reason whatsoever, any such notice
and contingent exercise pursuant thereto shall be null and void. If an Acquisition Event occurs
but the Committee does not terminate the outstanding Awards pursuant to this Section 4.2(d),
then the provisions of Section 4.2(b) and Article VII shall apply.

               (ii) Each Participant shall vote for, consent to and raise no objections against such
Acquisition Event. If the Acquisition Event is structured as (i) a Merger Event, each
Participant shall waive any dissenter’s rights, appraisal rights or similar rights in connection
with such merger or consolidation or (ii) a sale of capital stock, each Participant shall agree
to sell all of his or her Awards and rights to acquire Awards on the

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terms and conditions approved by the Board and/or the Committee. Each Participant shall
take all necessary or desirable actions in connection with the consummation of the Acquisition
Event or any public offering of the Common Stock as requested by the Company and/or the
Committee.

               (iii) If the Company or the holders of the Company’s securities enter into any negotiation
or transaction for which Rule 506 (or any similar rule then in effect) promulgated by the
Securities and Exchange Commission may be available with respect to such negotiation or
transaction (including a merger, consolidation or other reorganization), each Participant shall,
at the request of the Company, appoint a purchaser representative (as such term is defined in
Rule 501 promulgated by the Securities and Exchange Commission) reasonably acceptable to the
Company. If any Participant appoints a purchaser representative designated by the Company, the
Company shall pay the fees of such purchaser representative, but if any Participant declines to
appoint the purchaser representative designated by the Company, such Participant shall appoint
another purchaser representative, and such Participant shall be responsible for the fees of the
purchaser representative so appointed.

     4.3 Minimum Purchase Price. Notwithstanding any provision of the Plan to the
contrary, if authorized but previously unissued shares of Common Stock are issued under the Plan,
such shares shall not be issued for a consideration that is less than as permitted under applicable
law.

ARTICLE V

ELIGIBILITY

     5.1 General Eligibility. All current and prospective Eligible Individuals are
eligible to be granted Awards. Eligibility for the grant of Awards and actual participation in the
Plan shall be determined by the Committee in its sole discretion.

     5.2 General Requirement. The vesting and exercise of Awards granted to a prospective
Eligible Individual are conditioned upon such individual actually becoming an Eligible Employee,
Consultant or Non-Employee Director, respectively.

ARTICLE VI

STOCK OPTIONS

     6.1 Options. Stock Options may be granted alone or in addition to other Awards (if
any) granted under the Plan. Each Stock Option granted under the Plan shall be a Non-Qualified
Stock Option.

     6.2 Grants. The Committee shall have the authority to grant to any Eligible Employee
one or more Non-Qualified Stock Options. The Committee shall have the authority to grant any
Consultant or Non-Employee Director one or more Non-Qualified Stock Options.

     6.3 Terms of Options. Options granted under the Plan shall be subject to the
following terms and conditions and shall be in such form and contain such additional terms and
conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable:

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          (a) Exercise Price. The exercise price per share of Common Stock subject to a Stock
Option shall be determined by the Committee at the time of grant.

          (b) Stock Option Term. The term of each Stock Option shall be fixed by the Committee;
provided, however, that no Stock Option shall be exercisable after August 26, 2021.

          (c) Exercisability. Unless otherwise provided by the Committee in accordance with the
provisions of this Section 6.3, Stock Options granted under the Plan shall be exercisable at such
time or times and subject to such terms and conditions as shall be determined by the Committee at
the time of grant. If the Committee provides, in its discretion, that any Stock Option is
exercisable subject to certain limitations (including, without limitation, that such Stock Option
is exercisable only in installments or within certain time periods), the Committee may waive such
limitations on the exercisability at any time at or after the time of grant in whole or in part
(including, without limitation, waiver of the installment exercise provisions or acceleration of
the time at which such Stock Option may be exercised), based on such factors, if any, as the
Committee shall determine, in its sole discretion. Unless otherwise determined by the Committee at
the time of grant, the Option agreement shall provide that (i) in the event that the Participant
engages in Detrimental Activity prior to any exercise of the Stock Option (whether vested or
unvested), all Stock Options held by the Participant shall thereupon terminate and expire, (ii) as
a condition of the exercise of a Stock Option, the Participant shall be required to certify (or
shall be deemed to have certified) at the time of exercise in a manner acceptable to the Company
that the Participant is in compliance with the terms and conditions of the Plan and that the
Participant has not engaged in, and does not intend to engage in, any Detrimental Activity, and
(iii) in the event that the Participant engages in Detrimental Activity during the one-year period
commencing on the date that the Stock Option is exercised or becomes vested, the Company shall be
entitled to recover from the Participant at any time within one year after such exercise or
vesting, and the Participant shall pay over to the Company, an amount equal to any gain realized as
a result of the exercise (whether at the time of exercise or thereafter).

          (d) Method of Exercise. Subject to whatever installment exercise and waiting period
provisions apply under Section 6.3(c), to the extent vested, Stock Options may be exercised in
whole or in part at any time during the Option term, by giving written notice of exercise to the
Company specifying the number of shares of Common Stock to be purchased. Such notice shall be
accompanied by payment in full of the purchase price as follows: (i) in cash or by check, bank
draft or money order payable to the order of the Company; (ii) solely to the extent permitted by
applicable law, if the Common Stock is traded on a national securities exchange, and the Committee
authorizes, through a procedure whereby the Participant delivers irrevocable instructions to a
broker reasonably acceptable to the Committee to deliver promptly to the Company an amount equal to
the purchase price; or (iii) on such other terms and conditions as may be acceptable to the
Committee (including, without limitation, having the Company withhold shares of Common Stock
issuable upon exercise of the Stock Options or by payment in full or in part in the form of Common
Stock owned by the Participant based on the Fair Market Value of the Common Stock on the payment
date as determined by the Committee). No shares of Common Stock shall be issued until payment
therefore, as provided herein, has been made or provided for.

          (e) Non-Transferability of Options. No Stock Option shall be Transferable by the
Participant other than by will or by the laws of descent and distribution, and all Stock Options

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shall be exercisable, during the Participant’s lifetime, only by the Participant.
Notwithstanding the foregoing, the Committee may determine, in its sole discretion, at the time of
grant or thereafter that a Non-Qualified Stock Option that is otherwise not Transferable pursuant
to this Section is Transferable to a Family Member in whole or in part and in such circumstances,
and under such conditions, as specified by the Committee. A Non-Qualified Stock Option that is
Transferred to a Family Member pursuant to the preceding sentence (i) may not be subsequently
Transferred otherwise than by will or by the laws of descent and distribution and (ii) remains
subject to the terms of this Plan and the applicable Award Agreement. Any shares of Common Stock
acquired upon the exercise of a Non-Qualified Stock Option by a permissible transferee of a
Non-Qualified Stock Option or a permissible transferee pursuant to a Transfer after the exercise of
the Non-Qualified Stock Option shall be subject to the terms of this Plan and the applicable Award
Agreement.

          (f) Termination by Death or Disability. Unless otherwise determined by the Committee
at the time of grant, or if no rights of the Participant are reduced, thereafter, if a
Participant’s Termination is by reason of death or Disability, all Stock Options that are held by
such Participant that are vested and exercisable at the time of the Participant’s Termination may
be exercised by the Participant at any time within a period of six (6)-month from the date of such
Termination (or in the case of death, by the legal representative of the Participant’s estate), but
in no event beyond the expiration of the stated term of such Stock Options; provided, however,
that, in the case of a Termination due to Disability, if the Participant dies within such exercise
period, all unexercised Stock Options held by such Participant shall thereafter be exercisable, to
the extent to which they were exercisable at the time of death, for a period of one year from the
date of such death, but in no event beyond the expiration of the stated term of such Stock Options.

          (g) Involuntary Termination Without Cause. Unless otherwise determined by the
Committee at the time of grant, or if no rights of the Participant are reduced, thereafter, if a
Participant’s Termination is by involuntary termination without Cause, all Stock Options that are
held by such Participant that are vested and exercisable at the time of the Participant’s
Termination may be exercised by the Participant at any time within a period of 30 days from the
date of such Termination, but in no event beyond the expiration of the stated term of such Stock
Options.

          (h) Voluntary Termination. Unless otherwise determined by the Committee at the time
of grant, or if no rights of the Participant are reduced, thereafter, if a Participant’s
Termination is voluntary (other than a voluntary termination described in Section 6.3(i)(y)
hereof), all Stock Options that are held by such Participant that are vested and exercisable at the
time of the Participant’s Termination may be exercised by the Participant at any time within a
period of seven days from the date of such Termination, but in no event beyond the expiration of
the stated term of such Stock Options.

          (i) Termination for Cause. Unless otherwise determined by the Committee at the time
of grant, or if no rights of the Participant are reduced, thereafter, if a Participant’s
Termination (x) is for Cause or (y) is a voluntary Termination (as provided in Section 6.3(h))
after the occurrence of an event that would be grounds for a Termination for Cause, all Stock
Options, whether vested or not vested, that are held by such Participant shall thereupon terminate
and expire as of the date of such Termination.

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          (j) Unvested Stock Options. Unless otherwise determined by the Committee at the time
of grant, or if no rights of the Participant are reduced, thereafter, Stock Options that are not
vested as of the date of a Participant’s Termination for any reason shall terminate and expire as
of the date of such Termination.

          (k) Form, Modification, Extension and Renewal of Stock Options. Subject to the terms
and conditions and within the limitations of the Plan, Stock Options shall be evidenced by such
form of agreement or grant as is approved by the Committee, and the Committee may (i) modify,
extend or renew outstanding Stock Options granted under the Plan (provided that the rights of a
Participant are not reduced without his or her consent), and (ii) accept the surrender of
outstanding Stock Options (up to the extent not theretofore exercised) and authorize the granting
of new Stock Options in substitution therefor (to the extent not theretofore exercised).
Notwithstanding anything herein to the contrary, unless otherwise provided in the Award Agreement,
the Committee may, at its sole and absolute discretion, (i) lower the strike price of a Stock
Option after it is granted, or take any other action with the effect of lowering the strike price
of a Stock Option after it is granted, or (ii) permit the cancellation of a Stock Option in
exchange for another Award.

          (l)
Deferred Delivery of Common Stock. The Committee may in its discretion permit
Participants to defer delivery of Common Stock acquired pursuant to a Participant’s exercise of an
Option in accordance with the terms and conditions established by the Committee in the applicable
Award Agreement.

          (m) Early Exercise. The Committee may elect to provide that a Stock Option include a
written provision whereby the Participant may elect at any time before the Participant’s
Termination to exercise the Stock Option as to any part or all of the shares of Common Stock
subject to the Stock Option prior to the full vesting of the Stock Option. Unvested shares of
Common Stock so purchased may be subject to a repurchase option in favor of the Company or to any
other restriction the Committee determines to be appropriate.

          (n) Cashing-Out of Stock Options. Unless otherwise provided in the Award Agreement,
on receipt of written notice of exercise, the Committee may elect to cash-out all or part of the
portion of the shares for which an Option is being exercised by paying the optionee an amount, in
cash or shares of Common Stock, equal to the excess of the Fair Market Value of the shares of
Common Stock over the exercise price multiplied by the number of shares of Common Stock for which
the Option is being exercised on the effective date of such cash-out.

          (o) Other Terms and Conditions. Stock Options may contain such other provisions,
which shall not be inconsistent with any of the terms of the Plan, as the Committee shall deem
appropriate including, without limitation, permitting “reloads” such that the same number of Stock
Options are granted as the number of Stock Options exercised, shares used to pay for the exercise
price of Stock Options or shares used to pay withholding taxes (“Reloads”). With respect
to Reloads, the exercise price of the new Stock Option shall be the Fair Market Value on the date
of the “reload” and the term of the Stock Option shall be the same as the remaining term of the
Stock Options that are exercised, if applicable, or such other exercise price and term as
determined by the Committee.

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ARTICLE VII

CHANGE IN CONTROL PROVISIONS

     7.1 Benefits. In the event of a Change in Control of the Company (as defined below),
and except as otherwise provided by the Committee in an Award Agreement, a Participant’s unvested
Award shall not vest and a Participant’s Award shall be treated in accordance with one of the
following methods as determined by the Committee:

          (a) Awards, whether or not then vested, shall be continued, assumed, have new rights
substituted therefor or be treated in accordance with Section 4.2(d) hereof, as determined by the
Committee, and restrictions to which any Award granted prior to the Change in Control are subject
shall not lapse upon a Change in Control and the Award shall, where appropriate in the sole
discretion of the Committee, receive the same distribution as other Common Stock of the same class
or series on such terms as determined by the Committee; provided, however, that the Committee may
decide to award additional Awards in lieu of any cash distribution.

          (b) The Committee, in its sole discretion, may provide for the purchase of any Awards by the
Company or an Affiliate for an amount of cash equal to the excess (if any) of the Change in Control
Price (as defined below) of the shares of Common Stock covered by such Awards, over the aggregate
exercise price of such Awards. For purposes of this Section 7.1, “Change in Control Price”
shall mean the highest price per share of Common Stock paid in any transaction related to a Change
in Control of the Company.

          (c) Notwithstanding any other provision herein to the contrary, the Committee may, in its sole
discretion, provide for accelerated vesting or lapse of restrictions, of an Award at any time.

     7.2 Change in Control. Unless otherwise determined by the Committee in the applicable
Award Agreement or other written agreement approved by the Committee, a “Change in Control” shall
be deemed to occur if:

          (a) any “person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other
than the Company, any trustee or other fiduciary holding securities under any employee benefit plan
of the Company, or any company owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of Common Stock of the Company), becoming the
beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 50% or more of the combined voting power of the Company’s
then outstanding securities;

          (b) during any period of two consecutive years, individuals who at the beginning of such
period constitute the Board, and any new director (other than a director designated by a person who
has entered into an agreement with the Company to effect a transaction described in paragraph (a),
(c), or (d) of this Section 7.2 or a director whose initial assumption of office occurs as a result
of either an actual or threatened election contest (as such term is used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of
proxies or consents by or on behalf of a person other than the

15

 

Board) whose election by the Board or nomination for election by the Company’s stockholders
was approved by a vote of at least two-thirds of the directors then still in office who either were
directors at the beginning of the two-year period or whose election or nomination for election was
previously so approved, cease for any reason to constitute at least a majority of the Board;

          (c) a merger or consolidation of the Company with any other corporation, other than a merger
or consolidation which would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity) more than 50% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after such merger or
consolidation; provided, however, that a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person (other than those
covered by the exceptions in Section 7.2(a)) acquires more than 50% of the combined voting power of
the Company’s then outstanding securities shall not constitute a Change in Control of the Company;
or

          (d) a complete liquidation or dissolution of the Company or the consummation of a sale or
disposition by the Company of all or substantially all of the Company’s assets other than the sale
or disposition of all or substantially all of the assets of the Company to a person or persons who
beneficially own, directly or indirectly, 50% or more of the combined voting power of the
outstanding voting securities of the Company at the time of the sale.

     7.3 Initial Public Offering not a Change in Control. Notwithstanding the foregoing,
for purposes of the Plan, the occurrence of the Registration Date or any change in the composition
of the Board within one year following the Registration Date shall not be considered a Change in
Control.

ARTICLE VIII

TERMINATION OR AMENDMENT OF PLAN

     8.1 Termination or Amendment. Notwithstanding any other provision of the Plan, the
Board may at any time, and from time to time, amend, in whole or in part, any or all of the
provisions of the Plan (including any amendment deemed necessary to ensure that the Company may
comply with any regulatory requirement referred to in Article XI), or suspend or terminate it
entirely, retroactively or otherwise; provided, however, that, unless otherwise required by law or
specifically provided herein, the rights of a Participant with respect to Awards granted prior to
such amendment, suspension or termination, may not be impaired without the consent of such
Participant and; provided, further, that without the approval of the holders of the Company’s
Common Stock entitled to vote in accordance with applicable law, no amendment may be made that
would (i) increase the aggregate number of shares of Common Stock that may be issued under the Plan
(except by operation of Section 4.2); (ii) change the classification of individuals eligible to
receive Awards under the Plan; or (iii) extend the maximum option period under Section 6.3.
Notwithstanding anything herein to the contrary, the Board may amend the Plan or any Award
Agreement at any time without a Participant’s consent to comply with applicable law.

     The Committee may amend the terms of any Award theretofore granted, prospectively or
retroactively, but, subject to Article IV or as otherwise specifically provided herein, no such

16

 

amendment or other action by the Committee shall impair the rights of any holder without the
holder’s consent.

ARTICLE IX

COMPANY CALL RIGHTS; RIGHTS OF FIRST REFUSAL

     9.1 Company Call Rights.

          (a) In the event of a Participant’s Termination for Cause, a Participant’s voluntary
Termination after the occurrence of an event that would be grounds for a Termination for Cause, or
the discovery that a Participant engaged in Detrimental Activity, the Company may, at any time
following (i) the later of the date of Termination and the date that is more than one hundred
eighty (180) days following the date on which such Participant acquired the applicable shares of
Common Stock or (ii) such discovery that the Participant engaged in Detrimental Activity,
repurchase from the Participant such previously acquired shares of Common Stock at a repurchase
price equal to the lesser of (i) the original purchase price or exercise price (as applicable), if
any, and (ii) Fair Market Value as of the date of repurchase.

          (b) In the event of a Participant’s Termination for any reason other than as described in
Section 9.1(a) above, the Company may, at any time following the later of (i) the date of
Termination and (ii) the date that is more than one hundred eighty (180) days following the date on
which such Participant acquired the applicable shares of Common Stock through the exercise, grant
or payment of an Award under the Plan, repurchase from the Participant any shares of Common Stock
at a repurchase price equal to Fair Market Value as of the date of repurchase.

          (c) If the Company elects to exercise the rights under this Section 9.1, the Company shall do
so by delivering to the Participant a notice of such election, specifying the number of shares to
be purchased and the closing date and time of such purchase. Such closing shall take place within
thirty (30) days following such notice at the Company’s principal executive offices. At such
closing, the Company shall pay the Participant the repurchase price as specified in this Section
9.1 in cash or by cancellation of indebtedness of the Participant. The Company will be entitled to
receive (and the Participant shall, and hereby does, deliver) customary representations and
warranties from the Participant regarding the Common Stock being repurchased including, but not
limited to, the representation that the Participant has good and marketable title to the Common
Stock to be repurchased free and clear of all liens, claims and other encumbrances.

          (d) All repurchases shall be subject to applicable restrictions contained in the Delaware
General Corporation Law and in the Company’s and its Subsidiaries’ debt financing agreements. If
any such restrictions prohibit the repurchase of Common Stock for cash, the Company shall have the
right to deliver, as payment of the repurchase price, a subordinated note or notes payable in up to
five equal annual installments beginning on the first anniversary of the repurchase closing and
bearing interest at a rate per annum equal to the greater of the prime rate then in effect and 5%
(provided that such notes shall accelerate and be payable in full once the Company is permitted to
repurchase the Common Stock or repay such notes under the debt financing agreements or, if earlier,
upon a Change in Control). Any such notes issued by the

17

 

Company shall be subject to any restrictive covenants in debt financing agreements to which
the Company is subject at the time of the repurchase closing. If any such restrictions prohibit
the repurchase of Common Stock for such subordinated notes, then the time periods provided herein
for repurchases shall be suspended, and the Company may make such repurchases as soon as it is
permitted to do so under such restrictions.

     9.2 Right of First Refusal. No Participant shall, directly or indirectly, Transfer
any shares of Common Stock acquired by the Participant (or the Participant’s estate or legal
representative) pursuant to an Award under the Plan, unless in each such instance the Participant
(or the Participant’s estate or legal representative) shall have first offered the Common Stock
proposed to be Transferred pursuant to a bona fide offer by a third party to the Company. The
right of first refusal must be exercised by the Company by delivering to the Participant (or the
Participant’s estate or legal representative) written notice of such exercise within twenty (20)
business days of the Company’s receipt of written notification of the proposed sale. Upon the
exercise of a right of first refusal, the Common Stock proposed to be sold shall be purchased by
the Company at the price per share offered to be paid by the prospective transferee, subject to
Section 9.1 hereof in the case of a Participant’s Termination. The notice of exercise of the right
of first refusal shall specify the date and location for the closing of such purchase.

ARTICLE X

UNFUNDED STATUS OF PLAN

     The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation.
With respect to any payment as to which a Participant has a fixed and vested interest but which
are not yet made to a Participant by the Company, nothing contained herein shall give any such
Participant any right that is greater than those of a general unsecured creditor of the Company.

ARTICLE XI

GENERAL PROVISIONS

     11.1 Legend. The Committee may require each person receiving shares of Common Stock
pursuant to a Stock Option or other Award under the Plan to represent to and agree with the Company
in writing that the Participant is acquiring the shares without a view to distribution thereof. In
addition to any legend required by the Plan, the certificates for such shares may include any
legend that the Committee deems appropriate to reflect any restrictions on Transfer. All
certificates for shares of Common Stock delivered under the Plan shall be subject to such stop
transfer orders and other restrictions as the Committee may deem advisable under the rules,
regulations and other requirements of the Securities and Exchange Commission, any stock exchange
upon which the Common Stock is then listed or any national securities exchange system upon whose
system the Common Stock is then quoted, any applicable federal or state securities law, and any
applicable corporate law, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

     11.2 Other Plans. Nothing contained in the Plan shall prevent the Board from adopting
other or additional compensation arrangements, subject to stockholder approval if such approval is

18

 

required, and such arrangements may be either generally applicable or applicable only in
specific cases.

     11.3 No Right to Employment/Directorship/Consultancy. Neither the Plan nor the grant
of any Option or other Award hereunder shall give any Participant or other employee, Consultant or
Non-Employee Director any right with respect to continuance of employment, consultancy or
directorship by the Company or any Affiliate, nor shall there be a limitation in any way on the
right of the Company or any Affiliate by which an employee is employed or a Consultant or
Non-Employee Director is retained to terminate his or her employment, consultancy or directorship
at any time.

     11.4 Withholding of Taxes. The Company shall have the right to deduct from any
payment to be made pursuant to the Plan, or to otherwise require, prior to the issuance or delivery
of shares of Common Stock or the payment of any cash hereunder, payment by the Participant of, any
federal, state or local taxes required by law to be withheld. Upon the vesting of Awards that are
taxable upon vesting, or upon making an election under Section 83(b) of the Code, a Participant
shall pay all required withholding to the Company. Any statutorily required withholding obligation
with regard to any Participant may be satisfied, subject to the consent of the Committee, by
reducing the number of shares of Common Stock otherwise deliverable or by delivering shares of
Common Stock already owned. Any fraction of a share of Common Stock required to satisfy such tax
obligations shall be disregarded and the amount due shall be paid instead in cash by the
Participant.

     11.5 No Assignment of Benefits. No Award or other benefit payable under the Plan
shall, except as otherwise specifically provided by law or permitted by the Committee, be
Transferable in any manner, and any attempt to Transfer any such benefit shall be void, and any
such benefit shall not in any manner be liable for or subject to the debts, contracts, liabilities,
engagements or torts of any person who shall be entitled to such benefit, nor shall it be subject
to attachment or legal process for or against such person.

     11.6 Listing and Other Conditions.

          (a) Unless otherwise determined by the Committee, if and as long as the Common Stock is listed
on a national securities exchange or system sponsored by a national securities association, the
issuance of shares of Common Stock pursuant to an Award shall be conditioned upon such shares being
listed on such exchange or system.

          (b) If at any time counsel to the Company shall be of the opinion that any sale or delivery of
shares of Common Stock pursuant to an Option or other Award is or may in the circumstances be
unlawful or result in the imposition of excise taxes on the Company under the statutes, rules or
regulations of any applicable jurisdiction, the Company shall have no obligation to make such sale
or delivery, or to make any application or to effect or to maintain any qualification or
registration under the Securities Act or otherwise, with respect to shares of Common Stock or
Awards, and the right to exercise any Option or other Award shall be suspended until, in the
opinion of said counsel, such sale or delivery shall be lawful or will not result in the imposition
of excise taxes on the Company.

19

 

          (c) Upon termination of any period of suspension under this Section 11.6, any Award affected
by such suspension which shall not then have expired or terminated shall be reinstated as to all
shares available before such suspension and as to shares which would otherwise have become
available during the period of such suspension, but no such suspension shall extend the term of any
Award.

          (d) A Participant shall be required to supply the Company with certificates, representations
and information that the Company requests and otherwise cooperate with the Company in obtaining any
listing, registration, qualification, exemption, consent or approval the Company deems necessary or
appropriate.

     11.7 Stockholders Agreement and Other Requirements. Notwithstanding anything herein
to the contrary, as a condition to the receipt of shares of Common Stock pursuant to an Award under
the Plan, to the extent required by the Committee, the Other Stockholder shall execute and deliver
a stockholder’s agreement or such other documentation that shall set forth certain restrictions on
transferability of the shares of Common Stock acquired upon exercise or purchase, and such other
terms as the Board or Committee shall from time to time establish. Such stockholder’s agreement or
other documentation shall apply to the Common Stock acquired under the Plan and covered by such
stockholder’s agreement or other documentation. The Company may require, as a condition of
exercise, the Other Stockholder to become a party to any other existing stockholder agreement (or
other agreement).

     11.8 Governing Law. The Plan and actions taken in connection herewith shall be
governed and construed in accordance with the laws of the State of Delaware (regardless of the law
that might otherwise govern under applicable Delaware principles of conflict of laws).

     11.9 Jurisdiction; Waiver of Jury Trial. Any suit, action or proceeding with respect
to the Plan or any Award Agreement, or any judgment entered by any court of competent jurisdiction
in respect of any thereof, shall be resolved only in the courts of the State of Delaware or the
United States District Court for the District of Delaware and the appellate courts having
jurisdiction of appeals in such courts. In that context, and without limiting the generality of
the foregoing, the Company and each Participant shall irrevocably and unconditionally (a) submit in
any proceeding relating to the Plan or any Award Agreement, or for the recognition and enforcement
of any judgment in respect thereof (a “Proceeding”), to the exclusive jurisdiction of the
courts of the State of Delaware, the court of the United States of America for the District of
Delaware, and appellate courts having jurisdiction of appeals from any of the foregoing, and agree
that all claims in respect of any such Proceeding shall be heard and determined in such Delaware
State court or, to the extent permitted by law, in such federal court, (b) consent that any such
Proceeding may and shall be brought in such courts and waives any objection that the Company and
each Participant may now or thereafter have to the venue or jurisdiction of any such Proceeding in
any such court or that such Proceeding was brought in an inconvenient court and agree not to plead
or claim the same, (c) waive all right to trial by jury in any Proceeding (whether based on
contract, tort or otherwise) arising out of or relating to the Plan or any Award Agreement, (d)
agree that service of process in any such Proceeding may be effected by mailing a copy of such
process by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such party, in the case of a Participant, at the Participant’s address shown in the
books and records of the Company or, in the case of the Company, at the Company’s principal

20

 

offices, attention General Counsel, and (e) agree that nothing in the Plan shall affect the
right to effect service of process in any other manner permitted by the laws of the State of
Delaware.

     11.10 Construction. Wherever any words are used in the Plan in the masculine gender
they shall be construed as though they were also used in the feminine gender in all cases where
they would so apply, and wherever words are used herein in the singular form they shall be
construed as though they were also used in the plural form in all cases where they would so apply.

     11.11 Other Benefits. No Award granted or paid out under the Plan shall be deemed
compensation for purposes of computing benefits under any retirement plan of the Company or its
Affiliates nor affect any benefit under any other benefit plan now or subsequently in effect under
which the availability or amount of benefits is related to the level of compensation.

     11.12 Costs. The Company shall bear all expenses of the Company, the Board and the
Committee associated with administering this Plan, including expenses of issuing Common Stock
pursuant to Awards hereunder.

     11.13 No Right to Same Benefits. The provisions of Awards need not be the same with
respect to each Participant, and such Awards to individual Participants need not be the same in
subsequent years.

     11.14 Death/Disability. The Committee may in its discretion require the transferee of
a Participant to supply it with written notice of the Participant’s death or Disability and to
supply it with a copy of the will (in the case of the Participant’s death) or such other evidence
as the Committee deems necessary to establish the validity of the transfer of an Award. The
Committee may also require that the agreement of the transferee to be bound by all of the terms and
conditions of the Plan.

     11.15 Section 16(b) of the Exchange Act. All elections and transactions under the
Plan by persons subject to Section 16 of the Exchange Act involving shares of Common Stock are
intended to comply with any applicable exemptive condition under Rule 16b-3. The Committee may
establish and adopt written administrative guidelines, designed to facilitate compliance with
Section 16(b) of the Exchange Act, as it may deem necessary or proper for the administration and
operation of the Plan and the transaction of business thereunder.

     11.16 Section 409A of the Code. Neither the Company nor any of its Affiliates makes
any representations with respect to the application of Section 409A of the Code to any Option
granted under the Plan and, by the acceptance of an Option, a Participant agrees to accept the
potential application of Section 409A of the Code to such Option and the tax consequences of the
issuance, vesting, ownership, modification, adjustment, exercise and disposition of such Option.

     11.17 Successor and Assigns. The Plan shall be binding on all successors and
permitted assigns of a Participant, including, without limitation, the estate of such Participant
and the executor, administrator or trustee of such estate.

     11.18 Severability of Provisions. If any provision of the Plan shall be held invalid
or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof,
and the Plan shall be construed and enforced as if such provisions had not been included.

21

 

     11.19 Payments to Minors, Etc. Any benefit payable to or for the benefit of a minor,
an incompetent person or other person incapable of receipt thereof shall be deemed paid when paid
to such person’s guardian or to the party providing or reasonably appearing to provide for the care
of such person, and such payment shall fully discharge the Committee, the Board, the Company, its
Affiliates and their employees, agents and representatives with respect thereto.

     11.20 Lock-Up Agreements. As a condition to the grant of an Award, if requested by
the Company and the lead underwriter of any public offering of the Common Stock (the “Lead
Underwriter”), a Participant shall irrevocably agree not to sell, contract to sell, grant any
option to purchase, transfer the economic risk of ownership in, make any short sale of, pledge or
otherwise transfer or dispose of, any interest in any Common Stock or any securities convertible
into, derivative of, or exchangeable or exercisable for, or any other rights to purchase or acquire
Common Stock (except Common Stock included in such public offering or acquired on the public market
after such offering) during such period of time following the effective date of a registration
statement of the Company filed under the Securities Act that the Lead Underwriter shall specify
(the “Lock-Up Period”). The Participant shall further agree to sign such documents as may
be requested by the Lead Underwriter to effect the foregoing and agree that the Company may impose
stop-transfer instructions with respect to Common Stock acquired pursuant to an Award until the end
of such Lock-Up Period.

     11.21 Headings and Captions. The headings and captions herein are provided for
reference and convenience only, shall not be considered part of the Plan, and shall not be employed
in the construction of the Plan.

ARTICLE XII

EFFECTIVE DATE OF PLAN

     The Plan shall become effective at 12:01 a.m. Eastern Time on August 26, 2011, which shall be
the date of its adoption by the Board, subject to the approval of the Plan by the stockholders of
the Company in accordance with the requirements of the laws of the State of Delaware.

ARTICLE XIII

TERM OF PLAN

     No Award shall be granted pursuant to the Plan on or after the tenth anniversary of the
earlier of the date that the Plan is adopted or the date of stockholder approval, but Awards
granted prior to such tenth anniversary may extend beyond that date.

ARTICLE XIV

NAME OF PLAN

     This Plan shall be known as the “Conexant Holdings, Inc. 2011 Incentive Compensation Plan.”

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