Document:

EXHIBIT 10.28

 

EXECUTION VERSION

 

 

THIRD
AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

 

 

dated as of July 30, 2015

 

 

 

between

 

 

 

STAR GAS PARTNERS, L.P.,

 

 

 

PETROLEUM HEAT AND POWER CO., INC.,

 

 

 

and certain of their Subsidiaries,

as Grantors,

 

 

 

and

 

 

 

JPMORGAN CHASE
BANK, N.A.,

as Collateral Agent 

    	 

    	 

    

Table of Contents

 

Page

 

	ARTICLE I DEFINITIONS	1
	1.1.   Terms Defined in Credit Agreement	1
	1.2.   Terms Defined in UCC	1
	1.3.   Definitions of Certain Terms Used Herein	1
	ARTICLE II GRANT OF SECURITY INTEREST	5
	ARTICLE III REPRESENTATIONS AND WARRANTIES	6
	3.1.   Title, Perfection and Priority	6
	3.2.   Type and Jurisdiction of Organization, Organizational and Identification Numbers	6
	3.3.   Principal Location	7
	3.4.   Collateral Locations	7
	3.5.   Deposit Accounts	7
	3.6.   Exact Names	7
	3.7.   Letter-of-Credit Rights and Chattel Paper	7
	3.8.   Accounts and Chattel Paper	7
	3.9.   Inventory	8
	3.10.   Intellectual Property	8
	3.11.   Filing Requirements	8
	3.12.   No Financing Statements, Security Agreements	9
	3.13.   Pledged Collateral	9
	ARTICLE IV COVENANTS	9
	4.1.   General	10
	4.2.   Receivables	11
	4.3.   Inventory and Equipment	11
	4.4.   Delivery of Instruments, Securities, Chattel Paper and Documents	12

 

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	4.5.   Uncertificated Pledged Collateral	12
	4.6.   Pledged Collateral	12
	4.7.   Intellectual Property	14
	4.8.   Commercial Tort Claims	14
	4.9.   Letter-of-Credit Rights	14
	4.10.   Federal, State or Municipal Claims	15
	4.11.   No Interference	15
	ARTICLE V DEFAULTS AND REMEDIES	15
	5.1.   Defaults	15
	5.2.   Remedies	15
	5.3.   Grantor’s Obligations Upon Default	17
	5.4.   Grant of Intellectual Property License	18
	ARTICLE VI ACCOUNT VERIFICATION; ATTORNEY IN FACT; PROXY	18
	6.1.   Account Verification	18
	6.2.   Authorization for Secured Party to Take Certain Action	18
	6.3.   Proxy	19
	6.4.   Nature of Appointment; Limitation of Duty	19
	ARTICLE VII COLLECTION AND APPLICATION OF COLLATERAL PROCEEDS; DEPOSIT ACCOUNTS	20
	7.1.   Collection of Receivables.	20
	7.2.   Covenant Regarding New Deposit Accounts; Blocked Accounts; Lockboxes	21
	7.3.   Application of Proceeds; Deficiency	21
	ARTICLE VIII GENERAL PROVISIONS	22
	8.1.   Waivers	22
	8.2.   Limitation on Collateral Agent’s and Secured Parties’ Duty with Respect to the Collateral	22
	8.3.   Compromises and Collection of Collateral	23

 

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	8.4.   Secured Party Performance of Debtor Obligations	23
	8.5.   Specific Performance of Certain Covenants	23
	8.6.   Use and Possession of Certain Premises	23
	8.7.   Dispositions Not Authorized	23
	8.8.   No Waiver; Amendments; Cumulative Remedies	23
	8.9.   Limitation by Law; Severability of Provisions	24
	8.10.   Reinstatement	24
	8.11.   Benefit of Agreement	24
	8.12.   Survival of Representations	24
	8.13.   Taxes and Expenses	24
	8.14.   Headings	25
	8.15.   Termination	25
	8.16.   Entire Agreement	25
	8.17.   CHOICE OF LAW	25
	8.18.   CONSENT TO JURISDICTION	25
	8.19.   WAIVER OF JURY TRIAL	25
	8.20.   Indemnity	26
	8.21.   Counterparts	26
	8.22.   Section Titles	26
	ARTICLE IX NOTICES	26
	9.1.   Sending Notices	26
	9.2.   Change in Address for Notices	26
	ARTICLE X THE AGENT	26

 

EXHIBITS

 

ANotice
Address for All Grantors; Information and Collateral Locations of Each Grantor

BDeposit
Accounts; Blocked Accounts; Lockboxes

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CLetter-of-Credit
Rights; Chattel Paper

DIntellectual
Property Rights

ETitle
Documents 

FFixtures

GPledged
Collateral, Securities and Other Investment Property

HOffices
in which Financing Statements were Filed

IForm
of Amendment 

JCommercial
Tort Claims

 

 

 

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THIRD AMENDED AND RESTATED PLEDGE AND
SECURITY AGREEMENT

 

THIS THIRD AMENDED AND RESTATED PLEDGE AND
SECURITY AGREEMENT (as it may be amended or modified from time to time, the “Security Agreement”) is entered
into as of July 30, 2015 by and between Star Gas Partners, L.P., a Delaware limited partnership (the “Parent”),
Petroleum Heat and Power Co., Inc., a Minnesota corporation (“Petro” or the “Borrower”),
and each other direct or indirect subsidiary of the Parent from time to time party to this Security Agreement (each of the Parent,
Petro and each other such Subsidiary of the Parent, a “Grantor”, and collectively, the “Grantors”),
and JPMorgan Chase Bank, N.A., a national banking association, in its capacity as collateral agent (the “Collateral Agent”)
for the Secured Parties (as defined below) to the Credit Agreement referred to below.

 

PRELIMINARY STATEMENT

 

Petro, the other loan parties named therein,
JPMorgan Chase Bank, N.A., as agent, and the lenders thereto entered into that certain Second Amended and Restated Credit Agreement
dated as of January 14, 2014 (as amended prior to the date hereof, the “Existing Credit Agreement”). 

 

Pursuant to the Existing Credit Agreement,
Petro, the other loan parties thereto and JPMorgan Chase Bank, N.A., for the benefit of the lenders thereto, entered into that
certain Second Amended and Restated Pledge and Security Agreement dated as of January 14, 2014 (the “Existing Security
Agreement”) in order to induce the secured parties thereto to enter into and extend credit to Petro under the Existing
Credit Agreement and to secure the obligations that it agreed to guarantee pursuant to Article XV of the Existing Credit Agreement.

 

Petro, the other Loan Parties named therein,
JPMorgan Chase Bank, N.A., as Agent and an LC Issuer, and the Lenders are entering into a Third Amended and Restated Credit Agreement
dated as of the date hereof (as it may be amended or modified from time to time, the “Credit Agreement”).

 

Each Grantor is entering into this Security
Agreement in order to induce the Secured Parties to enter into and extend credit to Petro under the Credit Agreement and to secure
the Secured Obligations that it has agreed to guarantee pursuant to Article XV of the Credit Agreement.

 

ACCORDINGLY, the Grantors and the Collateral
Agent, on behalf of the Secured Parties, agree that the Existing Security Agreement is hereby amended and restated as of the Effective
Date to read in its entirety as follows:

 

ARTICLE
I

 

DEFINITIONS

 

1.1.           
Terms Defined in Credit Agreement. All capitalized terms used herein and not otherwise defined herein or in the UCC
shall have the meanings assigned to such terms in the Credit Agreement.

 

1.2.           
Terms Defined in UCC. Terms defined in the UCC which are not otherwise defined in this Security Agreement are used
herein as defined in the UCC.

 

1.3.           
Definitions of Certain Terms Used Herein.

 

As used in this Security Agreement, in addition
to the terms defined in the preamble and the Preliminary Statement, the following terms shall have the following meanings:

 

    	 

    	 

    

“Accounts”
shall have the meaning set forth in Article 9 of the UCC.

 

“Article” means
a numbered article of this Security Agreement, unless another document is specifically referenced.

 

“Blocked Accounts”
shall have the meaning set forth in Section 7.1(a).

 

“Blocked Account Agreements”
shall have the meaning set forth in Section 7.1(a).

 

“Chattel Paper”
shall have the meaning set forth in Article 9 of the UCC.

 

“Collateral”
shall have the meaning set forth in Article II.

 

“Collateral Deposit Account”
shall have the meaning set forth in Section 7.1(a).

 

“Collateral Report”
means any certificate (including any Borrowing Base Certificate), report or other document delivered by any Grantor to the Collateral
Agent or any Lender with respect to the Collateral pursuant to any Loan Document.

 

“Collection Account”
shall have the meaning set forth in Section 7.1(b).

 

“Control” shall
have the meaning set forth in Article 8 or, if applicable, in Section 9-104, 9-105, 9-106 or 9-107 of Article 9 of the UCC.

 

“Copyrights”
means, with respect to any Person, all of such Person’s right, title, and interest in and to the following: (a) all copyrights,
rights and interests in copyrights, works protectable by copyright, copyright registrations, and copyright applications; (b) all
renewals of any of the foregoing; (c) all income, royalties, damages, and payments now or hereafter due and/or payable under any
of the foregoing, including, without limitation, damages or payments for past or future infringements for any of the foregoing;
(d) the right to sue for past, present, and future infringements of any of the foregoing; and (e) all rights corresponding to any
of the foregoing throughout the world.

 

“Default” means
an event described in Section 5.1.

 

“Deposit Accounts”
shall have the meaning set forth in Article 9 of the UCC.

 

“Documents”
shall have the meaning set forth in Article 9 of the UCC.

 

“Electronic Chattel Paper”
shall have the meaning set forth in Article 9 of the UCC.

 

“Equipment”
shall have the meaning set forth in Article 9 of the UCC.

 

“Exhibit” refers
to a specific exhibit to this Security Agreement, unless another document is specifically referenced.

 

“Fixtures”
shall have the meaning set forth in Article 9 of the UCC.

 

“General Intangibles”
means all “general intangibles” as such term is defined in Article 9 of the UCC including, without limitation, with
respect to any Grantor, all contracts, agreements, instruments and indentures in any form, and portions thereof, to which such
Grantor is a party or under which such Grantor has any right, title or interest or to which such Grantor or any property of such
Grantor is subject, as the same may from time to time be amended, supplemented or otherwise modified, including, without limitation
(but limited as aforesaid), (i) all rights of such Grantor to receive moneys due and to become due to it thereunder or in connection
therewith, (ii) all rights of such Grantor to damages arising thereunder, (iii) all equity that constitutes “general intangibles”
and (iv) all rights of such Grantor to perform and to exercise all remedies thereunder.

 

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“Goods” shall
have the meaning set forth in Article 9 of the UCC.

 

“Instruments”
shall have the meaning set forth in Article 9 of the UCC.

 

“Inventory”
shall have the meaning set forth in Article 9 of the UCC.

 

“Investment Property”
shall have the meaning set forth in Article 9 of the UCC.

 

“Lenders” means
the lenders party to the Credit Agreement and their successors and assigns.

 

“Letter-of-Credit Rights”
shall have the meaning set forth in Article 9 of the UCC.

 

“Licenses”
means, with respect to any Person, all of such Person’s right, title, and interest in and to (a) any and all licensing agreements
or similar arrangements in and to its Patents, Copyrights, or Trademarks, (b) all income, royalties, damages, claims, and payments
now or hereafter due or payable under and with respect thereto, including, without limitation, damages and payments for past and
future breaches thereof, and (c) all rights to sue for past, present, and future breaches thereof.

 

“Lockboxes”
shall have the meaning set forth in Section 7.1(a).

 

“Lock Box Agreements”
shall have the meaning set forth in Section 7.1(a).

 

Patents” means, with
respect to any Person, all of such Person’s right, title, and interest in and to: (a) any and all patents and patent applications;
(b) all inventions and improvements described and claimed therein; (c) all reissues, divisions, continuations, renewals, extensions,
and continuations-in-part thereof; (d) all income, royalties, damages, claims, and payments now or hereafter due or payable under
and with respect thereto, including, without limitation, damages and payments for past and future infringements thereof; (e) all
rights to sue for past, present, and future infringements thereof; and (f) all rights corresponding to any of the foregoing throughout
the world.

 

“Payment Intangibles”
shall have the meaning set forth in Article 9 of the UCC.

 

“Pledged Collateral”
means all Instruments, Securities and other Investment Property of the Grantors included as Collateral, whether or not physically
delivered to the Collateral Agent pursuant to this Security Agreement.

 

“Proceeds”
shall mean (a) all “proceeds,” as defined in Article 9 of the UCC, with respect to the Collateral (including Stock
Rights and insurance proceeds), and (b) whatever is recoverable or recovered when any Collateral is sold, exchanged, collected,
or disposed of, whether voluntarily or involuntarily.

 

“Promissory Notes”
shall have the meaning set forth in Article 9 of the UCC.

 

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“Receivables”
means the Accounts, Chattel Paper, Documents, Investment Property, Instruments and any other rights or claims to receive money
which are General Intangibles or which are otherwise included as Collateral.

 

“Records” shall
have the meaning set forth in Article 9 of the UCC.

 

“Remittance Processor”
means Remitco LLC, a Delaware limited liability company.

 

“Remittance Processing
Agreement” means the Remittance Processing Services Agreement, between the Remittance Processor and PHI and signed by
PHI on August 22, 2003, as amended on June 30, 2008 and in effect as of the Effective Date.

 

“Required Secured Parties”
means (a) prior to an acceleration of the obligations under the Credit Agreement, the Required Lenders, and (b) after an acceleration
of the obligations under the Credit Agreement but prior to the date upon which the Credit Agreement has terminated by its terms
and all of the obligations thereunder have been paid in full, Lenders holding in the aggregate at least a majority of the total
of the Aggregate Credit Exposure, and (c) after the Credit Agreement has terminated by its terms and all of the obligations thereunder
have been paid in full (whether or not the obligations under the Credit Agreement were ever accelerated), Secured Parties holding
in the aggregate at least a majority of the aggregate net early termination payments and all other amounts then due and unpaid
from any Grantor to the Secured Parties (i) under Commodity Hedging Agreements and (ii) to the extent permitted under applicable
debt agreements, with respect to any (x) Banking Services and (y) Rate Management Transactions (other than Commodity Hedging Agreements),
as determined by the Collateral Agent in its reasonable discretion.

 

“Section” means
a numbered section of this Security Agreement, unless another document is specifically referenced.

 

“Secured Parties”
means, collectively, the Lenders and the Agent, any other holder from time to time of any of the Secured Obligations and, in each
case, their respective successors and assigns.

 

“Security”
has the meaning set forth in Article 8 of the UCC.

 

“Security Entitlement”
has the meaning set forth in Article 8 of the UCC.

 

“Stock Rights”
means all dividends, instruments or other distributions and any other right or property which the Grantors shall receive or shall
become entitled to receive for any reason whatsoever with respect to, in substitution for or in exchange for any Capital Stock
constituting Collateral, any right to receive Capital Stock and any right to receive earnings, in which the Grantors now have or
hereafter acquire any right, issued by an issuer of such Capital Stock.

 

“Supporting Obligations”
shall have the meaning set forth in Article 9 of the UCC.

 

“Tangible Chattel Paper”
shall have the meaning set forth in Article 9 of the UCC.

 

“Trademarks”
means, with respect to any Person, all of such Person’s right, title, and interest in and to the following: (a) all trademarks
(including service marks), trade names, trade dress, and trade styles and the registrations and applications for registration thereof
and the goodwill of the business symbolized by the foregoing; (b) all licenses of the foregoing, whether as licensee or licensor;
(c) all renewals of the foregoing; (d) all income, royalties, damages, and payments now or hereafter due or payable with respect
thereto, including, without limitation, damages, claims, and payments for past and future infringements thereof; (e) all rights
to sue for past, present, and future infringements of the foregoing, including the right to settle suits involving claims and demands
for royalties owing; and (f) all rights corresponding to any of the foregoing throughout the world.

 

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“UCC” means
the Uniform Commercial Code as the same may, from time to time, be in effect in the State of New York; provided that to
the extent that the Uniform Commercial Code is used to define any term in any security document and such term is defined differently
in differing Articles of the Uniform Commercial Code, the definition of such term contained in Article 9 shall govern; provided,
further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, publication
or priority of, or remedies with respect to, Liens of any Party is governed by the Uniform Commercial Code or foreign personal
property security laws as enacted and in effect in a jurisdiction other than the State of New York, the term "Uniform Commercial
Code" will mean the Uniform Commercial Code or such foreign personal property security laws as enacted and in effect in such
other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies
and for purposes of definitions related to such provisions.

 

“Unmatured Default”
means an event which but for the lapse of time or the giving of notice, or both, would constitute a Default hereunder.

 

The foregoing definitions shall be equally
applicable to both the singular and plural forms of the defined terms.

 

ARTICLE
II

 

GRANT OF SECURITY INTEREST

 

Each Grantor hereby pledges, assigns and
grants to the Collateral Agent, on behalf of and for the benefit of the Secured Parties, a security interest in all of its right,
title and interest in, to and under all personal property and other assets, whether now owned by or owing to, or hereafter acquired
by or arising in favor of such Grantor (including under any trade name or derivations thereof), and whether owned or consigned
by or to, or leased from or to, such Grantor, and regardless of where located (all of which will be collectively referred to as
the “Collateral”), including:

 

(i)                
all Accounts and Receivables;

 

(ii)              
all Chattel Paper (including Tangible Chattel Paper and Electronic Chattel Paper);

 

(iii)            
all Documents;

 

(iv)            
all Equipment;

 

(v)              
all Fixtures;

 

(vi)            
all General Intangibles;

 

(vii)          
all Goods;

 

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(viii)        
all Instruments (including, without limitation, Promissory Notes);

 

(ix)            
all Inventory;

 

(x)              
all Investment Property;

 

(xi)            
all cash or cash equivalents;

 

(xii)          
all letters of credit, Letter-of-Credit Rights and Supporting Obligations;

 

(xiii)        
(x) all Deposit Accounts with any bank or other financial institution and all cash, checks, other negotiable instruments,
funds and other evidences of payments held therein and (y) all Securities and Security Entitlements, and securities accounts, in
each case, to the extent constituting cash or cash equivalents or representing a claim to cash equivalents;

 

(xiv)        
all Trademarks;

 

(xv)          
all Capital Stock;

 

(xvi)        
all Rate Management Transactions (including Commodity Hedging Agreements); and

 

(xvii)      
and all accessions to, substitutions for and replacements, Proceeds and products of the foregoing, together with all books
and Records, customer lists, credit files, computer files, programs, printouts and other computer materials and records related
thereto and any General Intangibles at any time evidencing or relating to any of the foregoing,

 

to secure the prompt and complete payment
and performance of the Secured Obligations; provided that, notwithstanding anything herein or in the Credit Agreement to
the contrary, the Secured Obligations shall not include any Obligations with respect to the Term Commitments, Term Loans or Term
Lenders until the Credit Extension Date with respect to the Term Loans occurs pursuant to Section 2.1.5 of the Credit Agreement.

 

ARTICLE
III

 

REPRESENTATIONS AND WARRANTIES

 

Each Grantor represents and warrants to the
Collateral Agent and the Secured Parties that:

 

3.1.           
Title, Perfection and Priority. Such Grantor has good and valid rights in or the power to transfer the Collateral
and title to the Collateral with respect to which it has purported to grant a security interest hereunder, free and clear of all
Liens except for Liens permitted under Section 4.1(e), and has full power and authority to grant to the Collateral Agent the security
interest in such Collateral pursuant hereto. When financing statements have been filed in the appropriate offices against such
Grantor in the locations listed on Exhibit H, the Collateral Agent will have a fully perfected first priority security interest
in that Collateral of the Grantor in which a security interest may be perfected by filing, subject only to Liens permitted under
Section 4.1(e).

 

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3.2.           
Type and Jurisdiction of Organization, Organizational and Identification Numbers. The type of entity of such Grantor,
its state of organization, the organizational number issued to it by its state of organization and its federal employer identification
number are set forth on Exhibit A.

 

3.3.           
Principal Location. Such Grantor’s mailing address and the location of its place of business (if it has only
one) or its chief executive office (if it has more than one place of business), is disclosed in Exhibit A; such Grantor
has no other places of business except those set forth in Exhibit A.

 

3.4.           
Collateral Locations. All of such Grantor’s locations where Collateral is located are listed on Exhibit
A. All of said locations are owned by such Grantor except for locations (i) which are leased by the Grantor as lessee and designated
in Part VII(b) of Exhibit A and (ii) at which Inventory is held in a public warehouse or is otherwise held by a bailee
or on consignment as designated in Part VII(c) of Exhibit A.

 

3.5.           
Deposit Accounts. All of such Grantor’s Deposit Accounts are listed on Exhibit B.

 

3.6.           
Exact Names. Such Grantor’s name in which it has executed this Security Agreement is the exact name as it appears
in such Grantor’s organizational documents, as amended, as filed with such Grantor’s jurisdiction of organization.

 

3.7.           
Letter-of-Credit Rights and Chattel Paper. Exhibit C lists all Letter-of-Credit Rights and Chattel Paper of
such Grantor. All action by such Grantor necessary or desirable to protect and perfect the Collateral Agent’s Lien on each
item listed on Exhibit C (including the delivery of all originals and the placement of a legend on all Chattel Paper as
required hereunder) has been duly taken. The Collateral Agent will have a fully perfected first priority security interest in the
Collateral listed on Exhibit C, subject only to Liens permitted under Section 4.1(e).

 

3.8.           
Accounts and Chattel Paper.

 

(a)   
The names of the obligors, amounts owing, due dates and other information with respect to its Accounts and Chattel Paper
are and will be correctly stated in all records of the Grantor relating thereto and in all invoices and Collateral Reports with
respect thereto furnished to the Collateral Agent by such Grantor from time to time. As of the time when each Account or each item
of Chattel Paper arises, such Grantor shall be deemed to have represented and warranted that such Account or Chattel Paper, as
the case may be, and all records relating thereto, are genuine and in all respects what they purport to be.

 

(b)  
With respect to its Accounts, except as specifically disclosed on the most recent Collateral Report, (i) all Accounts are
Eligible Accounts; (ii) all Accounts represent bona fide sales of Inventory or rendering of services to Account Debtors in the
ordinary course of such Grantor’s business and are not evidenced by a judgment, Instrument or Chattel Paper; (iii) there
are no setoffs, claims or disputes existing or asserted with respect thereto and such Grantor has not made any agreement with any
Account Debtor for any extension of time for the payment thereof, any compromise or settlement for less than the full amount thereof,
any release of any Account Debtor from liability therefor, or any deduction therefrom except a discount or allowance allowed by
such Grantor in the ordinary course of its business for prompt payment or as are generally offered in the industry by competitors
of such Grantor in the applicable markets and in each case as disclosed to the Collateral Agent;
(iv) to such Grantor’s knowledge, there are no facts, events or occurrences which in any way impair the validity or enforceability
thereof or could reasonably be expected to reduce the amount payable thereunder as shown on such Grantor’s books and records
and any invoices, statements and Collateral Reports with respect thereto; (v) such Grantor has not received any notice of proceedings
or actions which are threatened or pending against any Account Debtor which might result in any adverse change in such Account
Debtor’s financial condition; and (vi) such Grantor has no knowledge that any Account Debtor is unable generally to pay its
debts as they become due.

 

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(c)   
In addition, with respect to all of its Accounts, (i) the amounts shown on all invoices, statements and Collateral Reports
with respect thereto are actually and absolutely owing to such Grantor as indicated thereon and are not in any way contingent;
(ii) no payments have been or shall be made thereon except payments immediately delivered to a Blocked Account, Lockbox or a Collateral
Deposit Account as required pursuant to Section 7.1; and (iii) to such Grantor’s knowledge, all Account Debtors have
the capacity to contract.

 

3.9.           
Inventory. With respect to any of its Inventory scheduled or listed on the most recent Collateral Report, (a) such
Inventory (other than Inventory in transit) is located at one of such Grantor’s locations set forth on Exhibit A,
(b) no Inventory (other than Inventory in transit) is now, or shall at any time or times hereafter be stored at any other location
except as permitted by Section 4.1(g), (c) such Grantor has good, indefeasible and merchantable title to such Inventory
and such Inventory is not subject to any Lien or security interest or document whatsoever except for the Lien granted to the Collateral
Agent, for the benefit of the Collateral Agent and Secured Parties, and except for Permitted Liens, (d) except as specifically
disclosed in the most recent Collateral Report, such Inventory is Eligible Heating Oil and Other Fuel Inventory or Other Eligible
Inventory, in each case of good and merchantable quality, free from any defects, (e) such Inventory is not subject to any licensing,
patent, royalty, trademark, trade name or copyright agreements with any third parties which would require any consent of any third
party upon sale or disposition of that Inventory or the payment of any monies to any third party upon such sale or other disposition,
and (f) the completion of sale or other disposition of such Inventory by the Collateral Agent following a Default shall not require
the consent of any Person and shall not constitute a breach or default under any contract or agreement to which such Grantor is
a party or to which such property is subject.

 

3.10.       
Intellectual Property. Exhibit D includes all material Patents, Trademarks or Copyrights owned by such Grantor
in its own name on the date hereof. To the best of such Grantor's knowledge, each of its material Patents, Trademarks and Copyrights
owned or held by such Grantor is, on the date hereof, valid, subsisting, unexpired, enforceable and has not been abandoned. None
of such Patents, Trademarks and Copyrights is, on the date hereof, the subject of any licensing or franchise agreement. No action
or proceeding is pending on the date hereof seeking to limit, cancel or question the validity, or otherwise materially affect the
value of any Patent, Trademark or Copyright. This Security Agreement is effective to create a valid and continuing Lien and, upon
filing of appropriate financing statements in the offices listed on Exhibit H and this Security Agreement with the United
States Copyright Office and the United States Patent and Trademark Office, fully perfected first priority security interests in
favor of the Collateral Agent on such Grantor’s Patents, Trademarks and Copyrights, such perfected security interests are
enforceable as such as against any and all creditors of and purchasers from the Grantor; and all action necessary or desirable
to protect and perfect the Collateral Agent’s Lien on such Grantor’s Patents, Trademarks or Copyrights shall have been
duly taken.

 

3.11.       
Filing Requirements. None of its Equipment is covered by any certificate of title, except for the vehicles described
in Part I of Exhibit E. None of the Collateral owned by it is of a type for which security interests or liens may be perfected
by filing under any federal statute except for (a) the vehicles described in Part II of Exhibit E and (b) Patents, Trademarks
and Copyrights held by such Grantor and described in Exhibit D. The legal description, county and street address of each
property on which any Fixtures are located is set forth in Exhibit F together with the name and address of the record owner
of each such property.

 

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3.12.       
No Financing Statements, Security Agreements. No financing statement or security agreement describing all or any
portion of the Collateral which has not lapsed or been terminated naming such Grantor as debtor has been filed or is of record
in any jurisdiction except (a) for financing statements or security agreements naming the Collateral Agent on behalf of the Secured
Parties as the secured party, and (b) as permitted by Section 4.1(e).

 

3.13.       
Pledged Collateral.

 

(a)   
Exhibit G sets forth a complete and accurate list of all Pledged Collateral owned by such Grantor. Such Grantor is
the direct, sole beneficial owner and sole holder of record of the Pledged Collateral listed on Exhibit G as being owned
by it, free and clear of any Liens, except for Liens permitted under Section 4.1(e). Such Grantor further represents and warrants
that (i) all Pledged Collateral owned by it constituting Capital Stock has been (to the extent such concepts are relevant with
respect to such Pledged Collateral) duly authorized, validly issued, are fully paid and non-assessable, (ii) with respect to any
certificates representing any Pledged Collateral constituting Capital Stock, either such certificates are Securities as defined
in Article 8 of the UCC as a result of actions by the issuer or otherwise, or, if such certificates are not Securities, such Grantor
has so informed the Collateral Agent so that the Collateral Agent may take steps to perfect its security interest therein as a
General Intangible, (iii) all such Pledged Collateral held by a securities intermediary is covered by a control agreement among
such Grantor, the securities intermediary and the Collateral Agent pursuant to which the Collateral Agent has Control and (iv)
all Pledged Collateral which represents Indebtedness owed to such Grantor has been duly authorized, authenticated or issued and
delivered by the issuer of such Indebtedness, is the legal, valid and binding obligation of such issuer and such issuer is not
in default thereunder.

 

(b)  
In addition, (i) none of the Pledged Collateral owned by it has been issued or transferred in violation of the securities
registration, securities disclosure or similar laws of any jurisdiction to which such issuance or transfer may be subject, (ii)
there are existing no options, warrants, calls or commitments of any character whatsoever relating to such Pledged Collateral or
which obligate the issuer of any Capital Stock included in the Pledged Collateral to issue additional Capital Stock, and (iii)
no consent, approval, authorization, or other action by, and no giving of notice, filing with, any governmental authority or any
other Person is required for the pledge by such Grantor of such Pledged Collateral pursuant to this Security Agreement or for the
execution, delivery and performance of this Security Agreement by such Grantor, or for the exercise by the Collateral Agent of
the voting or other rights provided for in this Security Agreement or for the remedies in respect of the Pledged Collateral pursuant
to this Security Agreement, except as may be required in connection with such disposition by laws affecting the offering and sale
of securities generally.

 

(c)   
Except as set forth in Exhibit G, such Grantor or Grantors collectively own 100% of the issued and outstanding Capital
Stock which constitutes Pledged Collateral and none of the Pledged Collateral which represents Indebtedness owed to such Grantor
is subordinated in right of payment to other Indebtedness or subject to the terms of an indenture.

 

ARTICLE
IV

 

COVENANTS

 

From the date of this Security Agreement,
and thereafter until this Security Agreement is terminated, each Grantor agrees that:

 

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4.1.           
General.

 

(a)   
Collateral Records. Such Grantor will maintain complete and accurate books and records with respect to the Collateral
owned by it, and furnish to the Collateral Agent, with sufficient copies for each of the Secured Parties, such reports relating
to such Collateral as the Collateral Agent shall from time to time request.

 

(b)  
Authorization to File Financing Statements; Ratification. Such Grantor hereby authorizes the Collateral Agent to
file, and if requested will deliver to the Collateral Agent, all financing statements and other documents and take such other actions
as may from time to time be requested by the Collateral Agent in order to maintain a first priority perfected security interest
in and, if applicable, Control of, the Collateral owned by such Grantor. Any financing statement filed by the Collateral Agent
may be filed in any filing office in any UCC jurisdiction and may (i) indicate such Grantor’s Collateral (1) as all assets
of the Grantor or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls within
the scope of Article 9 of the UCC or such jurisdiction, or (2) by any other description which reasonably approximates the description
contained in this Security Agreement, and (ii) contain any other information required by part 5 of Article 9 of the UCC for the
sufficiency or filing office acceptance of any financing statement or amendment, including (A) whether such Grantor is an organization,
the type of organization and any organization identification number issued to such Grantor, and (B) in the case of a financing
statement filed as a fixture filing or indicating such Grantor’s Collateral as as-extracted collateral or timber to be cut,
a sufficient description of real Property to which the Collateral relates. Such Grantor also agrees to furnish any such information
to the Collateral Agent promptly upon request. Such Grantor also ratifies its authorization for the Collateral Agent to have filed
in any UCC jurisdiction any initial financing statements or amendments thereto if filed prior to the date hereof.

 

(c)   
Further Assurances. Such Grantor will, if so requested by the Collateral Agent, furnish to the Collateral Agent,
as often as the Collateral Agent requests, statements and schedules further identifying and describing the Collateral owned by
it (including amended exhibits to this Security Agreement) and such other reports and information in connection with its Collateral
as the Collateral Agent may reasonably request, all in such detail as the Collateral Agent may specify. Such Grantor also agrees
to take any and all actions necessary to defend title to the Collateral owned by it against all persons and to defend the security
interest of the Collateral Agent in its Collateral and the priority thereof against any Lien not expressly permitted hereunder.

 

(d)  
Disposition of Collateral. Such Grantor will not sell, lease or otherwise dispose of the Collateral owned by it except
for dispositions specifically permitted pursuant to Section 6.19 of the Credit Agreement.

 

(e)   
Liens. Such Grantor will not create, incur, or suffer to exist any Lien on the Collateral owned by it except (i)
the security interest created by this Security Agreement, and (ii) other Permitted Liens.

 

(f)   
Other Financing Statements. Such Grantor will not authorize the filing of any financing statement naming it as debtor
covering all or any portion of the Collateral owned by it, except as permitted by Section 4.1(e). Such Grantor acknowledges
that it is not authorized to file any financing statement or amendment or termination statement with respect to any financing statement
without the prior written consent of the Collateral Agent, subject to such Grantor’s rights under Section 9-509(d)(2) of
the UCC.

 

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(g)   
Locations. Such Grantor will not (i) maintain any Collateral owned by it at any location other than those locations
listed on Exhibit A, (ii) otherwise change, or add to, such locations without the Collateral Agent’s prior written
consent as required by the Credit Agreement (and if the Collateral Agent gives such consent, the Grantor will concurrently therewith
obtain a Collateral Access Agreement for each such location to the extent required by the Credit Agreement), or (iii) change its
principal place of business or chief executive office from the location identified on Exhibit A, other than as permitted
by the Credit Agreement.

 

(h)  
Compliance with Terms. Such Grantor will perform and comply with all obligations in respect of the Collateral owned
by it and all agreements to which it is a party or by which it is bound relating to such Collateral.

 

4.2.           
Receivables.

 

(a)   
Certain Agreements on Receivables. Such Grantor will not make or agree to make any discount, credit, rebate or other
reduction in the original amount owing on a Receivable or accept in satisfaction of a Receivable less than the original amount
thereof, except that, prior to the occurrence of a Default, such Grantor may reduce the amount of Accounts arising from the sale
of Inventory in accordance with its present policies and in the ordinary course of business.

 

(b)  
Collection of Receivables. Except as otherwise provided in this Security Agreement, such Grantor will collect and
enforce, at such Grantor’s sole expense, all amounts due or hereafter due to such Grantor under the Receivables owned by
it.

 

(c)   
Delivery of Invoices. Such Grantor will deliver to the Collateral Agent immediately upon its request duplicate invoices
with respect to each Account owned by it bearing such language of assignment as the Collateral Agent shall specify.

 

(d)  
Disclosure of Counterclaims on Receivables. If (i) any discount, credit or agreement to make a rebate or to otherwise
reduce the amount owing on any Receivable owned by such Grantor exists or (ii) if, to the knowledge of such Grantor, any dispute,
setoff, claim, counterclaim or defense exists or has been asserted or threatened with respect to any such Receivable, such Grantor
will promptly disclose such fact to the Collateral Agent in writing. Such Grantor shall send the Collateral Agent a copy of each
credit memorandum in excess of $1,000 as soon as issued, and such Grantor shall promptly report each credit memo and each of the
facts required to be disclosed to the Collateral Agent in accordance with this Section 4.2(d) on the Borrowing Base Certificates
submitted by it.

 

(e)   
Electronic Chattel Paper. Such Grantor shall take all steps necessary to grant the Collateral Agent Control of all
electronic chattel paper in accordance with the UCC and all “transferable records” as defined in each of the Uniform
Electronic Transactions Act and the Electronic Signatures in Global and National Commerce Act.

 

4.3.           
Inventory and Equipment.

 

(a)   
Maintenance of Goods. Such Grantor will do all things necessary to maintain, preserve, protect and keep its Inventory
and the Equipment in good repair and working and saleable condition, except for damaged or defective goods arising in the ordinary
course of such Grantor’s business and except for ordinary wear and tear in respect of the Equipment.

 

(b)  
[Reserved]

 

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(c)   
Inventory Count; Perpetual Inventory System. Such Grantor will conduct a physical count of its Inventory at least
once per Fiscal Year, and after and during the continuation of a Default, at such other times as the Collateral Agent requests.
Such Grantor, at its own expense, shall deliver to the Collateral Agent the results of each physical verification, which such Grantor
has made, or has caused any other Person to make on its behalf, of all or any portion of its Inventory. Such Grantor will maintain
a perpetual inventory reporting system at all times. 

 

(d)  
Equipment. Such Grantor shall inform the Collateral Agent of any additions to or deletions from its Equipment within
30 days of such addition or deletion. Such Grantor shall not permit any Equipment to become a fixture with respect to real property
or to become an accession with respect to other personal property with respect to which real or personal property the Collateral
Agent does not have a Lien. Such Grantor will not, without the Collateral Agent’s prior written consent, alter or remove
any identifying symbol or number on any of such Grantor’s Equipment constituting Collateral.

 

(e)   
Titled Vehicles. Such Grantor will give the Collateral Agent notice of its acquisition of any vehicle covered by
a certificate of title and deliver to the Collateral Agent, upon request, the original of any vehicle title certificate and provide
and/or file all other documents or instruments necessary to have the Lien of the Collateral Agent noted on any such certificate
or with the appropriate state office.

 

4.4.           
Delivery of Instruments, Securities, Chattel Paper and Documents. Such Grantor will (a) deliver to the Collateral
Agent immediately upon execution of this Security Agreement the originals of all Chattel Paper, Securities and Instruments constituting
Collateral owned by it (if any then exist), (b) hold in trust for the Collateral Agent upon receipt and immediately thereafter
deliver to the Collateral Agent any such Chattel Paper, Securities and Instruments constituting Collateral, (c) upon the Collateral
Agent’s request, deliver to the Collateral Agent (and thereafter hold in trust for the Collateral Agent upon receipt and
immediately deliver to the Collateral Agent) any Document evidencing or constituting Collateral and (d) upon the Collateral Agent’s
request, deliver to the Collateral Agent a duly executed amendment to this Security Agreement, in the form of Exhibit I
hereto (the “Amendment”), pursuant to which such Grantor will pledge such additional Collateral. Such Grantor hereby
authorizes the Collateral Agent to attach each Amendment to this Security Agreement and agrees that all additional Collateral owned
by it set forth in such Amendments shall be considered to be part of the Collateral.

 

4.5.           
Uncertificated Pledged Collateral. Such Grantor will permit the Collateral Agent from time to time to cause the appropriate
issuers (and, if held with a securities intermediary, such securities intermediary) of uncertificated securities or other types
of Pledged Collateral owned by it not represented by certificates to mark their books and records with the numbers and face amounts
of all such uncertificated securities or other types of Pledged Collateral not represented by certificates and all rollovers and
replacements therefor to reflect the Lien of the Collateral Agent granted pursuant to this Security Agreement. With respect to
any Pledged Collateral owned by it, such Grantor will take any actions necessary to cause (a) the issuers of uncertificated securities
which are Pledged Collateral and (b) any securities intermediary which is the holder of any such Pledged Collateral, to cause the
Collateral Agent to have and retain Control over such Pledged Collateral. Without limiting the foregoing, such Grantor will, with
respect to any such Pledged Collateral held with a securities intermediary, cause such securities intermediary to enter into a
control agreement with the Collateral Agent, in form and substance satisfactory to the Collateral Agent, giving the Collateral
Agent Control.

 

4.6.           
Pledged Collateral.

 

(a)   
Changes in Capital Structure of Issuers. Such Grantor will not (i) permit or suffer any issuer of Capital Stock constituting
Pledged Collateral owned by it to dissolve, merge, liquidate, retire any of its Capital Stock or other Instruments or Securities
evidencing ownership, reduce its capital, sell or encumber all or substantially all of its assets (except for Permitted Liens and
sales of assets permitted pursuant to Section 4.1(d)) or merge or consolidate with any other entity, or (ii) vote any such
Pledged Collateral in favor of any of the foregoing.

 

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(b)  
Issuance of Additional Securities. Such Grantor will not permit or suffer the issuer of Capital Stock constituting
Pledged Collateral owned by it to issue additional Capital Stock, any right to receive the same or any right to receive earnings,
except to such Grantor.

 

(c)   
Registration of Pledged Collateral. Such Grantor will permit any registerable Pledged Collateral owned by it to be
registered in the name of the Collateral Agent or its nominee at any time at the option of the Required Secured Parties.

 

(d)  
Exercise of Rights in Pledged Collateral.

 

(i)                
Without in any way limiting the foregoing and subject to clause (ii) below, such Grantor shall have the right to exercise
all voting rights or other rights relating to the Pledged Collateral owned by it for all purposes not inconsistent with this Security
Agreement, the Credit Agreement or any other Loan Document; provided however, that no vote or other right
shall be exercised or action taken which would have the effect of impairing the rights of the Collateral Agent in respect of such
Pledged Collateral.

 

(ii)              
Such Grantor will permit the Collateral Agent or its nominee at any time after the occurrence of a Default, without notice,
to exercise all voting rights or other rights relating to the Pledged Collateral owned by it, including, without limitation, exchange,
subscription or any other rights, privileges, or options pertaining to any Capital Stock or Investment Property constituting such
Pledged Collateral as if it were the absolute owner thereof.

 

(iii)            
Such Grantor shall be entitled to collect and receive for its own use all cash dividends and interest paid in respect of
the Pledged Collateral owned by it to the extent not in violation of the Credit Agreement other than any of the following
distributions and payments (collectively referred to as the “Excluded Payments”): (A) dividends and interest
paid or payable other than in cash in respect of such Pledged Collateral, and instruments and other property received, receivable
or otherwise distributed in respect of, or in exchange for, such Pledged Collateral; (B) dividends and other distributions paid
or payable in cash in respect of such Pledged Collateral in connection with a partial or total liquidation or dissolution or in
connection with a reduction of capital, capital surplus or paid-in capital of an issuer; and (C) cash paid, payable or otherwise
distributed, in respect of principal of, or in redemption of, or in exchange for, such Pledged Collateral; provided,
however, that until actually paid, all rights to such distributions shall remain subject to the Lien created
by this Security Agreement; and

 

(iv)            
All Excluded Payments and all other distributions in respect of any of the Pledged Collateral owned by such Grantor, whenever
paid or made, shall be delivered to the Collateral Agent to hold as Pledged Collateral and shall, if received by such Grantor,
be received in trust for the benefit of the Collateral Agent, be segregated from the other property or funds of such Grantor, and
be forthwith delivered to the Collateral Agent as Pledged Collateral in the same form as so received (with any necessary endorsement).

 

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4.7.           
Intellectual Property.

 

(a)   
Such Grantor will use its best efforts to secure all consents and approvals necessary or appropriate for the assignment
to or benefit of the Collateral Agent of any License held by such Grantor and to enforce the security interests granted hereunder.

 

(b)  
Such Grantor shall notify the Collateral Agent immediately if it knows or has reason to know that any application or registration
relating to any Patent, Trademark or Copyright (now or hereafter existing) may become abandoned, invalidated, dedicated or otherwise
impaired, or of any adverse determination or development (including the institution of, or any such determination or development
in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court) regarding
such Grantor’s ownership of any Patent, Trademark or Copyright, its right to register the same, or to keep and maintain the
same.

 

(c)   
In no event shall such Grantor, either directly or through any agent, employee, licensee or designee, file an application
for the registration of any Patent, Trademark or Copyright with the United States Patent and Trademark Office, the United States
Copyright Office or any similar office or agency without giving the Collateral Agent prior written notice thereof, and, upon request
of the Collateral Agent, such Grantor shall execute and deliver any and all agreements, instruments, documents, papers and/or security
agreements as the Collateral Agent may request to evidence the Collateral Agent’s first priority security interest on such
Patent, Trademark or Copyright, and the General Intangibles of such Grantor relating thereto or represented thereby.

 

(d)  
Such Grantor shall take all actions necessary or requested by the Collateral Agent to maintain and pursue each application,
to obtain the relevant registration and to maintain the registration of each of its Patents, Trademarks and Copyrights (now or
hereafter existing), including the filing of applications for renewal, affidavits of use, affidavits of noncontestability and opposition
and interference and cancellation proceedings .

 

(e)   
Such Grantor shall, unless it shall reasonably determine that such Patent, Trademark or Copyright is in no way material
to the conduct of its business or operations, promptly sue for infringement, misappropriation or dilution and to recover any and
all damages for such infringement, misappropriation or dilution, and shall take such other actions as the Collateral Agent shall
deem appropriate under the circumstances to protect such Patent, Trademark or Copyright. In the event that such Grantor institutes
suit because any of its Patents, Trademarks or Copyrights constituting Collateral is infringed upon, or misappropriated or diluted
by a third party, such Grantor shall comply with Section 4.8. Such Grantor shall not do any act that knowingly uses a Patent,
Trademark or Copyright that infringes the intellectual property rights of any third party.

 

4.8.           
Commercial Tort Claims. Such Grantor shall promptly, and in any event within two Business Days after the same is
acquired by it, notify the Collateral Agent of any commercial tort claim (as defined in the UCC) in excess of $50,000 acquired
by it and, unless the Collateral Agent otherwise consents, such Grantor shall enter into an amendment to this Security Agreement,
in the form of Exhibit J hereto, granting to Collateral Agent a first priority security interest in such commercial tort
claim.

 

4.9.           
Letter-of-Credit Rights. If such Grantor is or becomes the beneficiary of a letter of credit in excess of $50,000,
it shall promptly, and in any event within two Business Days after becoming a beneficiary, notify the Collateral Agent thereof
and cause the issuer and/or confirmation bank to (i) consent to the assignment of any Letter-of-Credit Rights to the Collateral
Agent and (ii) agree to direct all payments thereunder to a Deposit Account at the Collateral Agent or subject to a Deposit Account
Control Agreement for application to the Secured Obligations, in accordance with Section 2.18 of the Credit Agreement, all in form
and substance reasonably satisfactory to the Collateral Agent.

 

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4.10.       
Federal, State or Municipal Claims. Such Grantor will promptly notify the Collateral Agent of any Collateral which
constitutes a claim against the United States government or any state or local government or any instrumentality or agency thereof,
the assignment of which claim is restricted by federal, state or municipal law.

 

4.11.       
No Interference. Such Grantor agrees that it will not interfere with any right, power and remedy of the Collateral
Agent provided for in this Security Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or the
exercise or beginning of the exercise by the Collateral Agent of any one or more of such rights, powers or remedies.

 

ARTICLE
V

 

DEFAULTS AND REMEDIES

 

5.1.           
Defaults. The occurrence of any one or more of the following events shall constitute a Default hereunder:

 

(a)               
Any representation or warranty made by or on behalf of any Grantor under or in connection with this Security Agreement shall
be materially false as of the date on which made.

 

(b)              
The breach by any Grantor of any of the terms or provisions of Article IV or Article VII.

 

(c)               
The breach by any Grantor (other than a breach which constitutes a Default under any other Section of this Article V) of
any of the terms or provisions of this Security Agreement which is not remedied within ten days after such breach.

 

(d)              
The occurrence of any “Default” under, and as defined in, the Credit Agreement.

 

(e)               
Any Capital Stock which is included within the Collateral shall at any time constitute a Security or the issuer of any such
Capital Stock shall take any action to have such interests treated as a Security unless (i) all certificates or other documents
constituting such Security have been delivered to the Collateral Agent and such Security is properly defined as such under Article
8 of the UCC of the applicable jurisdiction, whether as a result of actions by the issuer thereof or otherwise, or (ii) the Collateral
Agent has entered into a control agreement with the issuer of such Security or with a securities intermediary relating to such
Security and such Security is defined as such under Article 8 of the UCC of the applicable jurisdiction, whether as a result of
actions by the issuer thereof or otherwise.

 

5.2.           
Remedies.

 

(a)   
Upon the occurrence of a Default and during the continuation thereof, the Collateral Agent may exercise any or all of the
following rights and remedies:

 

(i)                
those rights and remedies provided in this Security Agreement, the Credit Agreement, or any other Loan Document; provided
that, this Section 5.2(a) shall not be understood to limit any rights or remedies available to the Collateral
Agent and the Secured Parties prior to a Default;

 

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(ii)              
those rights and remedies available to a secured party under the UCC (whether or not the UCC applies to the affected Collateral)
or under any other applicable law (including, without limitation, any law governing the exercise of a bank’s right of setoff
or bankers’ lien) when a debtor is in default under a security agreement;

 

(iii)            
give notice of sole control or any other instruction under any Deposit Account Control Agreement and other control agreement
with any securities intermediary and take any action therein with respect to such Collateral;

 

(iv)            
without notice (except as specifically provided in Section 8.1 or elsewhere herein), demand or advertisement of any
kind to any Grantor or any other Person, enter the premises of any Grantor where any Collateral is located (through self-help and
without judicial process) to collect, receive, assemble, process, appropriate, sell, lease, assign, grant an option or options
to purchase or otherwise dispose of, deliver, or realize upon, the Collateral or any part thereof in one or more parcels at public
or private sale or sales (which sales may be adjourned or continued from time to time with or without notice and may take place
at any Grantor’s premises or elsewhere), for cash, on credit or for future delivery without assumption of any credit risk,
and upon such other terms as the Collateral Agent may deem commercially reasonable; and

 

(v)              
concurrently with written notice to the applicable Grantor, transfer and register in its name or in the name of its nominee
the whole or any part of the Pledged Collateral, to exchange certificates or instruments representing or evidencing Pledged Collateral
for certificates or instruments of smaller or larger denominations, to exercise the voting and all other rights as a holder with
respect thereto, to collect and receive all cash dividends, interest, principal and other distributions made thereon and to otherwise
act with respect to the Pledged Collateral as though the Collateral Agent was the outright owner thereof.

 

(b)  
The Collateral Agent, on behalf of the Secured Parties, may comply with any applicable state or federal law requirements
in connection with a disposition of the Collateral and compliance will not be considered to adversely affect the commercial reasonableness
of any sale of the Collateral.

 

(c)   
The Collateral Agent shall have the right upon any such public sale or sales and, to the extent permitted by law, upon any
such private sale or sales, to purchase for the benefit of the Collateral Agent and the Secured Parties, the whole or any part
of the Collateral so sold, free of any right of equity redemption, which equity redemption each Grantor hereby expressly releases.

 

(d)  
Until the Collateral Agent is able to effect a sale, lease, or other disposition of Collateral, the Collateral Agent shall
have the right to hold or use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving
Collateral or its value or for any other purpose deemed appropriate by the Collateral Agent. The Collateral Agent may, if it so
elects, seek the appointment of a receiver or keeper to take possession of Collateral and to enforce any of the Collateral Agent’s
remedies (for the benefit of the Collateral Agent and the Secured Parties), with respect to such appointment without prior notice
or hearing as to such appointment.

 

(e)   
If, after the Credit Agreement has terminated by its terms and all of the Obligations have been paid in full, there remain
obligations of any Grantor in respect of any Rate Management Transaction (including Commodity Hedging Agreements) or Banking Services,
the Required Secured Parties may exercise the remedies provided in this Section 5.2 upon the occurrence of any event which
would allow or require the termination or acceleration of such obligations in respect of such Rate Management Transactions (including
Commodity Hedging Agreements) or Banking Services.

 

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(f)   
Notwithstanding the foregoing, neither the Collateral Agent nor the Secured Parties shall be required to (i) make any demand
upon, or pursue or exhaust any of their rights or remedies against, any Grantor, any other obligor, guarantor, pledgor or any other
Person with respect to the payment of the Secured Obligations or to pursue or exhaust any of their rights or remedies with respect
to any Collateral therefor or any direct or indirect guarantee thereof, (ii) marshal the Collateral or any guarantee of the Secured
Obligations or to resort to the Collateral or any such guarantee in any particular order, or (iii) effect a public sale of any
Collateral.

 

(g)   
Each Grantor recognizes that the Collateral Agent may be unable to effect a public sale of any or all the Pledged Collateral
and may be compelled to resort to one or more private sales thereof in accordance with clause (a) above. Each Grantor also
acknowledges that any private sale may result in prices and other terms less favorable to the seller than if such sale were a public
sale and, notwithstanding such circumstances, agrees that any such private sale shall not be deemed to have been made in a commercially
unreasonable manner solely by virtue of such sale being private. The Collateral Agent shall be under no obligation to delay a sale
of any of the Pledged Collateral for the period of time necessary to permit any Grantor or the issuer of the Pledged Collateral
to register such securities for public sale under the Securities Act of 1933, as amended, or under applicable state securities
laws, even if the applicable Grantor and the issuer would agree to do so.

 

5.3.           
Grantor’s Obligations Upon Default. Upon the request of the Collateral Agent after the occurrence of a Default,
each Grantor will:

 

(a)   
assemble and make available to the Collateral Agent the Collateral and all books and records relating thereto at any place
or places specified by the Collateral Agent, whether at a Grantor’s premises or elsewhere;

 

(b)  
permit the Collateral Agent, by the Collateral Agent’s representatives and agents, to enter any premises where all
or any part of the Collateral, or the books and records relating thereto, or both, are located, to take possession of all or any
part of the Collateral or the books and records relating thereto, or both, to remove all or any part of the Collateral or the books
and records relating thereto, or both, and to conduct sales of the Collateral;

 

(c)   
prepare and file, or cause an issuer of Pledged Collateral to prepare and file, with the Securities and Exchange Commission
or any other applicable government agency, registration statements, a prospectus and such other documentation in connection with
the Pledged Collateral as the Collateral Agent may request, all in form and substance satisfactory to the Collateral Agent, and
furnish to the Collateral Agent, or cause an issuer of Pledged Collateral to furnish to the Collateral Agent, any information regarding
the Pledged Collateral in such detail as the Collateral Agent may specify;

 

(d)  
take, or cause an issuer of Pledged Collateral to take, any and all actions necessary to register or qualify the Pledged
Collateral to enable the Collateral Agent to consummate a public sale or other disposition of the Pledged Collateral; and

 

(e)   
at its own expense, cause the independent certified public accountants then engaged by each Grantor to prepare and deliver
to the Collateral Agent and each Lender, at any time, and from time to time, promptly upon the Collateral Agent’s request,
the following reports with respect to the applicable Grantor: (i) a reconciliation of all Accounts; (ii) an aging of all Accounts;
(iii) trial balances; and (iv) a test verification of such Accounts.

 

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5.4.           
Grant of Intellectual Property License. For the purpose of enabling the Collateral Agent to exercise the rights and
remedies under this Article V at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies,
each Grantor hereby (a) grants to the Collateral Agent, for the benefit of the Collateral Agent and the Secured Parties, an irrevocable,
nonexclusive license (exercisable without payment of royalty or other compensation to any Grantor) to use, license or sublicense
any Intellectual Property Rights now owned or hereafter acquired by such Grantor, and wherever the same may be located, and including
in such license access to all media in which any of the licensed items may be recorded or stored and to all computer software and
programs used for the compilation or printout thereof and (b) irrevocably agrees that the Collateral Agent may sell any of such
Grantor’s Inventory directly to any person, including without limitation persons who have previously purchased the Grantor’s
Inventory from such Grantor and in connection with any such sale or other enforcement of the Collateral Agent’s rights under
this Security Agreement, may sell Inventory which bears any Trademark owned by or licensed to such Grantor and any Inventory that
is covered by any Copyright owned by or licensed to such Grantor and the Agent may finish any work in process and affix any Trademark
owned by or licensed to such Grantor and sell such Inventory as provided herein.

 

ARTICLE
VI

 

ACCOUNT VERIFICATION; ATTORNEY IN FACT; PROXY

 

6.1.           
Account Verification. The Collateral Agent may at any time, in the Collateral Agent’s own name, in the name
of a nominee of the Collateral Agent, or in the name of any Grantor communicate (by mail, telephone, facsimile or otherwise) with
the Account Debtors of any such Grantor, parties to contracts with any such Grantor and obligors in respect of Instruments of any
such Grantor to verify with such Persons, to the Collateral Agent’s satisfaction, the existence, amount, terms of, and any
other matter relating to, Accounts, Instruments, Chattel Paper, payment intangibles and/or other Receivables.

 

6.2.           
Authorization for Secured Party to Take Certain Action.

 

(a)               
Each Grantor irrevocably authorizes the Collateral Agent at any time and from time to time in the sole discretion of the
Collateral Agent and appoints the Collateral Agent as its attorney in fact (i) to execute on behalf of such Grantor as debtor and
to file financing statements necessary or desirable in the Collateral Agent’s sole discretion to perfect and to maintain
the perfection and priority of the Collateral Agent’s security interest in the Collateral, (ii) to endorse and collect any
cash Proceeds of the Collateral, (iii) to file a carbon, photographic or other reproduction of this Security Agreement or any financing
statement with respect to the Collateral as a financing statement and to file any other financing statement or amendment of a financing
statement (which does not add new collateral or add a debtor) in such offices as the Collateral Agent in its sole discretion deems
necessary or desirable to perfect and to maintain the perfection and priority of the Collateral Agent’s security interest
in the Collateral, (iv) to contact and enter into one or more agreements with the issuers of uncertificated securities which are
Pledged Collateral or with securities intermediaries holding Pledged Collateral as may be necessary or advisable to give the Collateral
Agent Control over such Pledged Collateral, (v) to apply the Proceeds of any Collateral received by the Collateral Agent to the
Secured Obligations as provided in Section 7.3, (vi) to discharge past due taxes, assessments, charges, fees or Liens on
the Collateral (except for such Liens as are specifically permitted hereunder), (vii) to contact Account Debtors for any reason,
(viii) to demand payment or enforce payment of the Receivables in the name of the Collateral Agent or such Grantor and to endorse
any and all checks, drafts, and other instruments for the payment of money relating to the Receivables, (ix) to sign such Grantor’s
name on any invoice or bill of lading relating to the Receivables, drafts against any Account Debtor of such Grantor, assignments
and verifications of Receivables, (x) to exercise all of such Grantor’s rights and remedies with respect to the collection
of the Receivables and any other Collateral, (xi) to settle, adjust, compromise, extend or renew the Receivables, (xii) to settle,
adjust or compromise any legal proceedings brought to collect Receivables, (xiii) to prepare, file and sign such Grantor’s
name on a proof of claim in bankruptcy or similar document against any Account Debtor of such Grantor, (xiv) to prepare, file and
sign such Grantor’s name on any notice of Lien, assignment or satisfaction of Lien or similar document in connection with
the Receivables, (xv) to change the address for delivery of mail addressed to such Grantor to such address as the Collateral Agent
may designate and to receive, open and dispose of all mail addressed to such Grantor, and (xvi) to do all other acts and things
necessary to carry out this Security Agreement; and such Grantor agrees to reimburse the Collateral Agent on demand for any payment
made or any expense incurred by the Collateral Agent in connection with any of the foregoing; provided that,
this authorization shall not relieve such Grantor of any of its obligations under this Security Agreement or under the Credit Agreement.

 

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(b)              
All acts of said attorney or designee are hereby ratified and approved. The powers conferred on the Collateral Agent, for
the benefit of the Collateral Agent and Secured Parties, under this Section 6.2 are solely to protect the Collateral Agent’s
interests in the Collateral and shall not impose any duty upon the Collateral Agent or any Lender to exercise any such powers.

 

6.3.           
Proxy. EACH GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE COLLATERAL AGENT AS ITS PROXY AND ATTORNEY-IN-FACT
(AS SET FORTH IN SECTION 6.2 ABOVE) WITH RESPECT TO ITS PLEDGED COLLATERAL, INCLUDING THE RIGHT TO VOTE SUCH PLEDGED COLLATERAL,
WITH FULL POWER OF SUBSTITUTION TO DO SO. IN ADDITION TO THE RIGHT TO VOTE ANY SUCH PLEDGED COLLATERAL, THE APPOINTMENT OF THE
COLLATERAL AGENT AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES
TO WHICH A HOLDER OF SUCH PLEDGED COLLATERAL WOULD BE ENTITLED (INCLUDING GIVING OR WITHHOLDING WRITTEN CONSENTS OF SHAREHOLDERS,
CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND VOTING AT SUCH MEETINGS). SUCH PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT
THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY SUCH PLEDGED COLLATERAL ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY
ANY PERSON (INCLUDING THE ISSUER OF SUCH PLEDGED COLLATERAL OR ANY OFFICER OR THE AGENT THEREOF), UPON THE OCCURRENCE OF A DEFAULT.

 

6.4.           
Nature of Appointment; Limitation of Duty. THE APPOINTMENT OF THE COLLATERAL AGENT AS PROXY AND ATTORNEY-IN-FACT
IN THIS ARTICLE VI IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS SECURITY AGREEMENT IS TERMINATED
IN ACCORDANCE WITH SECTION 8.15. NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NEITHER THE COLLATERAL AGENT, NOR ANY LENDER, NOR ANY
OF THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT
OR POWER GRANTED HEREUNDER OR OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY
IN DOING SO, EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED
BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY BE LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT
OR CONSEQUENTIAL DAMAGES.

 

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ARTICLE
VII

 

COLLECTION AND APPLICATION OF COLLATERAL PROCEEDS; DEPOSIT ACCOUNTS

 

7.1.           
Collection of Receivables.

 

(a)               
Each Grantor has (i) executed and delivered to the Collateral Agent Deposit Account Control Agreements for each Deposit
Account maintained by such Grantor into which all cash, checks or other similar payments relating to or constituting payments made
in respect of Receivables will be deposited (a “Collateral Deposit Account”), which Collateral Deposit Accounts
are identified as such on Exhibit B, (ii) established blocked account service (the “Blocked Accounts”)
with the bank(s) set forth in Exhibit B, which blocked accounts are subject to irrevocable blocked account agreements in
the form provided by or otherwise acceptable to the Collateral Agent and have been accompanied by an acknowledgment by the bank
where the Blocked Account is located of the Lien of the Collateral Agent granted hereunder and of irrevocable instructions to wire
all amounts collected therein to the Collection Account (a “Blocked Account Agreement”) and (iii) established
lockbox service (the “Lock Boxes”) with the bank(s) and Persons set forth in Exhibit B, which lockboxes
are subject to irrevocable lockbox agreements in the form provided by or otherwise acceptable to the Collateral Agent and have
been accompanied by an acknowledgment by such Person where the Lockbox is located of the Lien of the Collateral Agent granted hereunder
and of irrevocable instructions to wire all amounts collected therein to the Collection Account (a “Lockbox Agreement”).
Each of the agreements referred to in this Section 7.1 (a) remains in effect as of the Effective Date and any references therein
to the Existing Credit Agreement or Existing Security Agreement, as applicable, include such agreements as amended. After the Effective
Date, each Grantor will comply with the terms of Section 7.2.

 

(b)              
Each Grantor shall direct all of its Account Debtors to forward all cash, checks or other similar payments relating to or
constituting payments made in respect of Receivables directly to Blocked Accounts subject to Blocked Account Agreements or Lockboxes
subject to Lockbox Agreements; provided that, with respect to PHI and any Subsidiary thereof, all of such payments
shall, unless otherwise consented to by the Collateral Agent, continue to be paid through the Remittance Processor pursuant to
the Remittance Processing Agreement. Neither PHI nor any Subsidiary thereof shall amend or terminate the Remittance Processing
Agreement or instruct any of its Account Debtors to make payments to any Person other than as set forth in the preceding sentence,
without the prior written consent of the Collateral Agent. The Collateral Agent shall have sole access to the Blocked Accounts
and the Lockboxes at all times and each Grantor shall take all actions necessary to grant the Collateral Agent such sole access.
At no time shall any Grantor remove any item from a Blocked Account, Lockbox or from a Collateral Deposit Account without the Collateral
Agent’s prior written consent. If any Grantor should refuse or neglect to notify any Account Debtor to forward payments directly
to a Blocked Account subject to a Blocked Account Agreement or a Lockbox subject to a Lockbox Agreement after notice from the Collateral
Agent, the Collateral Agent shall be entitled to make such notification directly to Account Debtor. If notwithstanding the foregoing
instructions, any Grantor receives any Proceeds of any Receivables, such Grantor shall receive such payments as the Collateral
Agent’s trustee, and shall immediately deposit all cash, checks or other similar payments related to or constituting payments
made in respect of Receivables received by it to a Collateral Deposit Account. All funds deposited into any Blocked Account subject
to a Blocked Account Agreement, a Lockbox subject to a Lockbox Agreement or a Collateral Deposit Account will be swept on a daily
basis into a collection account maintained by Petro with the Collateral Agent (the “Collection Account”). The
Collateral Agent shall hold and apply funds received into the Collection Account as provided by the terms of Section 7.3.

 

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7.2.           
Covenant Regarding New Deposit Accounts; Blocked Accounts; Lockboxes. Upon opening or replacing any Collateral Deposit
Account, other Deposit Account, or establishing a new Blocked Account or Lockbox, each Grantor shall (a) notify the Collateral
Agent within ten (10) days of the opening of such Deposit Account, Blocked Account or Lockbox, and (b) cause each bank, financial
institution or any Person in which it seeks to open (i) a Deposit Account, to enter into a Deposit Account Control Agreement with
the Collateral Agent within 60 days of opening such Deposit Account in order to give the Collateral Agent Control of such Deposit
Account, (ii) a Blocked Account, to enter into a Blocked Account Agreement with the Collateral Agent within 60 days of opening
such Blocked Account in order to give the Collateral Agent Control of the Blocked Account or (iii) a Lockbox, to enter into a Lockbox
Agreement with the Collateral Agent within 60 days of opening such Lockox in order to give the Collateral Agent Control of the
Lockbox. In the case of Deposit Accounts, Blocked Accounts or Lockboxes maintained with Secured Parties, the terms of such letter
shall be subject to the provisions of the Credit Agreement regarding setoffs.

 

7.3.           
Application of Proceeds; Deficiency.

 

(a)               
All amounts deposited in the Collection Account shall, so long as no Default has occurred and is continuing, be deposited
into the Borrower’s Funding Account; provided that if Availability is less than 15% of the Aggregate Commitment for
any three consecutive days, and until the later of the date which is 90 days after such three-day period or the date on which the
average monthly Availability for the 12-month period ending on such date is greater than 20% of the Aggregate Commitment (the “Deficiency
Termination Date”), all amounts deposited in the Collection Account shall be deemed received by the Collateral Agent
in accordance with Section 2.17 of the Credit Agreement and shall, after having been credited in immediately available funds to
the Collection Account, be applied (and allocated) by the Collateral Agent in accordance with Section 2.18 of the Credit Agreement.
In no event shall any amount be so applied unless and until such amount shall have been credited in immediately available funds
to the Collection Account. Commencing on the Deficiency Termination Date, so long as no Default has occurred and is continuing
and subject to the proviso above of this Section 7.3(a), all amounts deposited in the Collection Account shall again be deposited
into the Borrower’s Funding Account. Notwithstanding the foregoing, the effect of the proviso above of this Section 7.3(a)
may not be discontinued more than twice in any 12-month period as a result of the occurrence of a Deficiency Termination Date.

 

(b)              
The Collateral Agent shall require all other cash proceeds of the Collateral, which are not required to be applied to the
Obligations pursuant to Section 2.15 of the Credit Agreement, to be deposited in a cash collateral account with the Collateral
Agent and held there as security for the Secured Obligations (it being understood that amounts deposited and remaining in such
account shall be included in the Borrowing Base). No Grantor shall have any control whatsoever over said cash collateral account.
Any such Proceeds of the Collateral shall be applied in the order set forth in Section 2.18 of the Credit Agreement unless a court
of competent jurisdiction shall otherwise direct. Until so applied, such Proceeds shall continue to be held as security for the
Secured Obligations and shall not constitute payment thereof.

 

(c)               
Notwithstanding anything herein to the contrary, upon the occurrence of a Default, the Collateral Agent may apply all or
any part of Proceeds constituting Collateral, whether or not held in a collateral account, in payment of the Secured Obligations
in accordance with Section 2.18 of the Credit Agreement. The Grantors shall remain liable for any deficiency if the Proceeds of
any sale or disposition of the Collateral are insufficient to pay all Secured Obligations, including any attorneys’ fees
and other expenses incurred by Collateral Agent or any Lender to collect such deficiency.

 

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ARTICLE
VIII

 

GENERAL PROVISIONS

 

8.1.           
Waivers. Each Grantor hereby waives notice of the time and place of any public sale or the time after which any private
sale or other disposition of all or any part of the Collateral may be made. To the extent such notice may not be waived under applicable
law, any notice made shall be deemed reasonable if sent to the Grantors, addressed as set forth in Article IX, at least ten days
prior to (i) the date of any such public sale or (ii) the time after which any such private sale or other disposition may be made.
To the maximum extent permitted by applicable law, each Grantor waives all claims, damages, and demands against the Collateral
Agent or any Lender arising out of the repossession, retention or sale of the Collateral, except such as arise solely out of the
gross negligence or willful misconduct of the Collateral Agent or such Lender as finally determined by a court of competent jurisdiction.
To the extent it may lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and advantage
of, and covenants not to assert against the Collateral Agent or any Lender, any valuation, stay, appraisal, extension, moratorium,
redemption or similar laws and any and all rights or defenses it may have as a surety now or hereafter existing which, but for
this provision, might be applicable to the sale of any Collateral made under the judgment, order or decree of any court, or privately
under the power of sale conferred by this Security Agreement, or otherwise. Except as otherwise specifically provided herein, each
Grantor hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind
in connection with this Security Agreement or any Collateral.

 

8.2.           
Limitation on Collateral Agent’s and Secured Parties’ Duty with Respect to the Collateral. The Collateral
Agent shall have no obligation to clean-up or otherwise prepare the Collateral for sale. The Collateral Agent and each Lender shall
use reasonable care with respect to the Collateral in its possession or under its control. Neither the Collateral Agent nor any
Lender shall have any other duty as to any Collateral in its possession or control or in the possession or control of any agent
or nominee of the Collateral Agent or such Lender, or any income thereon or as to the preservation of rights against prior parties
or any other rights pertaining thereto. To the extent that applicable law imposes duties on the Collateral Agent to exercise remedies
in a commercially reasonable manner, each Grantor acknowledges and agrees that it is commercially reasonable for the Collateral
Agent (i) to fail to incur expenses deemed significant by the Collateral Agent to prepare Collateral for disposition or otherwise
to transform raw material or work in process into finished goods or other finished products for disposition, (ii) to fail to obtain
third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain
governmental or third party consents for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail
to exercise collection remedies against Account Debtors or other Persons obligated on Collateral or to remove Liens on or any adverse
claims against Collateral, (iv) to exercise collection remedies against Account Debtors and other Persons obligated on Collateral
directly or through the use of collection agencies and other collection specialists, (v) to advertise dispositions of Collateral
through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact
other Persons, whether or not in the same business as such Grantor, for expressions of interest in acquiring all or any portion
of such Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not
the Collateral is of a specialized nature, (viii) to dispose of Collateral by utilizing internet sites that provide for the auction
of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers
of assets, (ix) to dispose of assets in wholesale rather than retail markets, (x) to disclaim disposition warranties, such as title,
possession or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure the Collateral Agent against risks of
loss, collection or disposition of Collateral or to provide to the Collateral Agent a guaranteed return from the collection or
disposition of Collateral, or (xii) to the extent deemed appropriate by the Collateral Agent, to obtain the services of other brokers,
investment bankers, consultants and other professionals to assist the Collateral Agent in the collection or disposition of any
of the Collateral. Each Grantor acknowledges that the purpose of this Section 8.2 is to provide non-exhaustive indications of what
actions or omissions by the Collateral Agent would be commercially reasonable in the Collateral Agent’s exercise of remedies
against the Collateral and that other actions or omissions by the Collateral Agent shall not be deemed commercially unreasonable
solely on account of not being indicated in this Section 8.2. Without limitation upon the foregoing, nothing contained in this
Section 8.2 shall be construed to grant any rights to any Grantor or to impose any duties on the Collateral Agent that would not
have been granted or imposed by this Security Agreement or by applicable law in the absence of this Section 8.2.

 

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8.3.           
Compromises and Collection of Collateral. The Grantors and the Collateral Agent recognize that setoffs, counterclaims,
defenses and other claims may be asserted by obligors with respect to certain of the Receivables, that certain of the Receivables
may be or become uncollectible in whole or in part and that the expense and probability of success in litigating a disputed Receivable
may exceed the amount that reasonably may be expected to be recovered with respect to a Receivable. In view of the foregoing, each
Grantor agrees that the Collateral Agent may at any time and from time to time, if a Default has occurred and is continuing, compromise
with the obligor on any Receivable, accept in full payment of any Receivable such amount as the Collateral Agent in its Permitted
Discretion shall determine or abandon any Receivable, and any such action by the Collateral Agent shall be commercially reasonable
so long as the Collateral Agent acts in good faith based on information known to it at the time it takes any such action.

 

8.4.           
Secured Party Performance of Debtor Obligations. Without having any obligation to do so, the Collateral Agent may
perform or pay any obligation which any Grantor has agreed to perform or pay in this Security Agreement and the Grantors shall
reimburse the Collateral Agent for any amounts paid by the Collateral Agent pursuant to this Section 8.4. The Grantors’ obligation
to reimburse the Collateral Agent pursuant to the preceding sentence shall be a Secured Obligation payable on demand.

 

8.5.           
Specific Performance of Certain Covenants. Each Grantor acknowledges and agrees that a breach of any of the covenants
contained in Sections 4.1(d), 4.1(e), 4.4, 4.5, 4.6, 4.7, 4.8, 4.9, 4.10, 4.12, 5.3, or 8.7 or in Article VII will cause irreparable
injury to the Collateral Agent and the Secured Parties, that the Collateral Agent and Secured Parties have no adequate remedy at
law in respect of such breaches and therefore agrees, without limiting the right of the Collateral Agent or the Lenders to seek
and obtain specific performance of other obligations of the Grantors contained in this Security Agreement, that the covenants of
the Grantors contained in the Sections referred to in this Section 8.5 shall be specifically enforceable against the Grantors.

 

8.6.           
Use and Possession of Certain Premises. Upon the occurrence of a Default, the Collateral Agent shall be entitled
to occupy and use any premises owned or leased by any Grantor where any of the Collateral or any records relating to the Collateral
are located until the Secured Obligations are paid or the Collateral is removed therefrom, whichever first occurs, without any
obligation to pay any Grantor for such use and occupancy.

 

8.7.           
Dispositions Not Authorized. No Grantor is authorized to sell or otherwise dispose of the Collateral except as set
forth in Section 4.1(d) and notwithstanding any course of dealing between any Grantor and the Collateral Agent or other conduct
of the Collateral Agent, no authorization to sell or otherwise dispose of the Collateral (except as set forth in Section 4.1(d))
shall be binding upon the Collateral Agent or the Secured Parties unless such authorization is in writing signed by the Collateral
Agent with the consent or at the direction of the Required Secured Parties.

 

8.8.           
No Waiver; Amendments; Cumulative Remedies. No delay or omission of the Collateral Agent or any Lender to exercise
any right or remedy granted under this Security Agreement shall impair such right or remedy or be construed to be a waiver of any
Default or an acquiescence therein, and any single or partial exercise of any such right or remedy shall not preclude any other
or further exercise thereof or the exercise of any other right or remedy. No waiver, amendment or other variation of the terms,
conditions or provisions of this Security Agreement whatsoever shall be valid unless in writing signed by the Collateral Agent
with the concurrence or at the direction of the Secured Parties required under Section 8.3 of the Credit Agreement and then only
to the extent in such writing specifically set forth. All rights and remedies contained in this Security Agreement or by law afforded
shall be cumulative and all shall be available to the Collateral Agent and the Secured Parties until the Secured Obligations have
been paid in full.

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8.9.           
Limitation by Law; Severability of Provisions. All rights, remedies and powers provided in this Security Agreement
may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions
of this Security Agreement are intended to be subject to all applicable mandatory provisions of law that may be controlling and
to be limited to the extent necessary so that they shall not render this Security Agreement invalid, unenforceable or not entitled
to be recorded or registered, in whole or in part. Any provision in any this Security Agreement that is held to be inoperative,
unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid without
affecting the remaining provisions in that jurisdiction or the operation, enforceability, or validity of that provision in any
other jurisdiction, and to this end the provisions of this Security Agreement are declared to be severable.

 

8.10.       
Reinstatement. This Security Agreement shall remain in full force and effect and continue to be effective should
any petition be filed by or against any Grantor for liquidation or reorganization, should any Grantor become insolvent or make
an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant
part of any Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment
and performance of the Secured Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount,
or must otherwise be restored or returned by any obligee of the Secured Obligations, whether as a “voidable preference,”
“fraudulent conveyance,” or otherwise, all as though such payment or performance had not been made. In the event that
any payment, or any part thereof, is rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and
deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

 

8.11.       
Benefit of Agreement. The terms and provisions of this Security Agreement shall be binding upon and inure to the
benefit of the Grantors, the Collateral Agent and the Secured Parties and their respective successors and assigns (including all
persons who become bound as a debtor to this Security Agreement), except that no Grantor shall have the right to assign its rights
or delegate its obligations under this Security Agreement or any interest herein, without the prior written consent of the Collateral
Agent. No sales of participations, assignments, transfers, or other dispositions of any agreement governing the Secured Obligations
or any portion thereof or interest therein shall in any manner impair the Lien granted to the Collateral Agent, for the benefit
of the Collateral Agent and the Secured Parties, hereunder.

 

8.12.       
Survival of Representations. All representations and warranties of the Grantors contained in this Security Agreement
shall survive the execution and delivery of this Security Agreement.

 

8.13.       
Taxes and Expenses. Any taxes (including income taxes) payable or ruled payable by Federal or State authority in
respect of this Security Agreement shall be paid by the Grantors, together with interest and penalties, if any. The Grantors shall
reimburse the Collateral Agent for any and all out-of-pocket expenses and internal charges (including reasonable attorneys’,
auditors’ and accountants’ fees and reasonable time charges of attorneys, paralegals, auditors and accountants who
may be employees of the Collateral Agent) paid or incurred by the Collateral Agent in connection with the preparation, execution,
delivery, administration, collection and enforcement of this Security Agreement and in the audit, analysis, administration, collection,
preservation or sale of the Collateral (including the expenses and charges associated with any periodic or special audit of the
Collateral). Any and all costs and expenses incurred by the Grantors in the performance of actions required pursuant to the terms
hereof shall be borne solely by the Grantors.

 

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8.14.       
Headings. The title of and section headings in this Security Agreement are for convenience of reference only, and
shall not govern the interpretation of any of the terms and provisions of this Security Agreement.

 

8.15.       
Termination. This Security Agreement shall continue in effect (notwithstanding the fact that from time to time there
may be no Secured Obligations outstanding) until (i) the Credit Agreement has terminated pursuant to its express terms and (ii)
all of the Secured Obligations have been indefeasibly paid and performed in full (or with respect to any outstanding Facility LCs,
a cash deposit or Supporting Letter of Credit has been delivered to the Collateral Agent as required by the Credit Agreement) and
no commitments of the Collateral Agent or the Secured Parties which would give rise to any Secured Obligations are outstanding.

 

8.16.       
Entire Agreement. This Security Agreement embodies the entire agreement and understanding between the Grantors and
the Collateral Agent relating to the Collateral and supersedes all prior agreements and understandings between the Grantors and
the Collateral Agent relating to the Collateral.

 

8.17.       
CHOICE OF LAW. THIS SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS
OF THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

 

8.18.       
CONSENT TO JURISDICTION. EACH GRANTOR HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS
OF THE STATE OF NEW YORK, THE COURTS OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY
THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT AND EACH
GRANTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH
COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE AGENT OR ANY LENDER
TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY GRANTOR AGAINST
THE AGENT OR ANY LENDER OR ANY AFFILIATE OF THE AGENT OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING
OUT OF, RELATED TO, OR CONNECTED WITH THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN THE
STATE OF NEW YORK.

 

8.19.       
WAIVER OF JURY TRIAL. EACH GRANTOR, THE AGENT AND EACH LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING
INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED
TO, OR CONNECTED WITH THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.

 

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8.20.       
Indemnity. Each Grantor hereby agrees to indemnify the Collateral Agent and the Secured Parties, and their respective
successors, assigns, agents and employees (each an “Indemnified Party”), from and against any and all liabilities,
damages, penalties, suits, costs, and expenses of any kind and nature (including, without limitation, all expenses of litigation
or preparation therefor whether or not the Collateral Agent or any Lender is a party thereto) imposed on, incurred by or asserted
against any Indemnified Party, in any way relating to or arising out of this Security Agreement, or the manufacture, purchase,
acceptance, rejection, ownership, delivery, lease, possession, use, operation, condition, sale, return or other disposition of
any Collateral (including, without limitation, latent and other defects, whether or not discoverable by the Collateral Agent or
the Secured Parties or any Grantor, and any claim for Patent, Trademark or Copyright infringement) except to the extent that such
liabilities, damages, penalties, suits, costs, and expenses are determined in a final non-appealable judgment by a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct of the Indemnified Party.

 

8.21.       
Counterparts. This Security Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one agreement, and any of the parties hereto may execute this Security Agreement by signing any such counterpart.

 

8.22.       
Section Titles. The Section titles contained in this Security Agreement are and shall be without substantive meaning
or content of any kind whatsoever and are not part of the agreement between the parties hereto.

 

ARTICLE
IX

 

NOTICES

 

9.1.           
Sending Notices. Any notice required or permitted to be given under this Security Agreement shall be sent by United
States mail, telecopier, personal delivery or nationally established overnight courier service, and shall be deemed received (a)
when received, if sent by hand or overnight courier service, or mailed by certified or registered mail notices or (b) when sent,
if sent by telecopier (except that, if not given during normal business hours for the recipient, shall be deemed to have been given
at the opening of business on the next Business Day for the recipient), in each case addressed to the Grantors at the notice address
set forth on Exhibit A, and to the Collateral Agent and the Secured Parties at the addresses set forth in the Credit Agreement.

 

9.2.           
Change in Address for Notices. Each of the Grantors, the Collateral Agent and the Secured Parties may change the
address for service of notice upon it by a notice in writing to the other parties.

 

ARTICLE
X

 

THE AGENT

 

JPMorgan Chase Bank, N.A. has been appointed
Collateral Agent for the Secured Parties hereunder pursuant to Article X of the Credit Agreement. It is expressly understood and
agreed by the parties to this Security Agreement that any authority conferred upon the Collateral Agent hereunder is subject to
the terms of the delegation of authority made by the Secured Parties to the Collateral Agent pursuant to the Credit Agreement,
and that the Collateral Agent has agreed to act (and any successor Collateral Agent shall act) as such hereunder only on the express
conditions contained in such Article X. Any successor Collateral Agent appointed pursuant to Article X of the Credit Agreement
shall be entitled to all the rights, interests and benefits of the Collateral Agent hereunder.

 

    	26

    	 

    

ARTICLE
XI

 

EFFECT OF AMENDMENT AND RESTATEMENT OF EXISTING SECURITY AGREEMENT

 

On the Effective Date, the Existing Security
Agreement shall be amended, restated and superseded in its entirety. The parties hereto acknowledge and agree that (a) this Agreement
and the other Loan Documents, whether executed and delivered in connection herewith or otherwise, do not constitute a novation,
payment and reborrowing, or termination of the “Obligations” (as defined in the Existing Credit Agreement) under the
Existing Security Agreement and Existing Credit Agreement as in effect prior to the Effective Date and (b) such “Obligations”
are in all respects continuing (as amended and restated hereby) with only the terms thereof being modified as provided in this
Agreement.

 

[Signature Page Follows]

 

 

 

 

 

 

 

    	27

    	 

    

IN WITNESS WHEREOF, the Grantors and the
Collateral Agent have executed this Security Agreement as of the date first above written.

 

 

	 	GRANTORS:

 

A.P.
WOODSON COMPANY

C.
Hoffberger Company

Champion
Energy Corporation

COLUMBIA
PETROLEUM TRANSPORTATION, LLC

GRIFFITH
ENERGY SERVICES, INC.

Hoffman
Fuel Company of Bridgeport

Hoffman
Fuel Company of Danbury

Hoffman
Fuel Company of Stamford

J.J.
Skelton Oil Company

Lewis
Oil Company

MAREX
CORPORATION

MEENAN
HOLDINGS OF NEW YORK, INC.

MEENAN
OIL CO., INC.

MINNWHALE
LLC

ORTEP
OF PENNSYLVANIA, INC.

PETRO
HOLDINGS, INC.

PETRO
PLUMBING CORPORATION

PETRO,
INC.

REGIONOIL
PLUMBING, HEATING AND COOLING CO., INC.

RICHLAND
PARTNERS, LLC

Rye
Fuel Company

STAR
ACQUISITIONS, INC.

STAR
GAS FINANCE COMPANY

 

 

	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

 

 

 

 

 

    	 

    	 

    

	 	STAR GAS PARTNERS, L.P.
	 	 	 
	 	By: KESTREL HEAT, LLC, its General Partner
	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

	 	MEENAN OIL CO.,
L.P.
	 	 	 
	 	By: MEENAN OIL
CO., INC., its General Partner
	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

 

	 	CFS LLC
	 	By: Richland Partners, LLC, its Sole Member
	 	 
	 	By:	 
	 	 	 Richard F. Ambury
	 	 	 Chief Financial Officer, Executive Vice President, Treasurer and Secretary

 

 

    	 

    	 

    

	 	JPMORGAN CHASE BANK, N.A., as Collateral Agent
	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:TEX 6.30.15-EX10.18

Exhibit 10.18

EXECUTION COPY

    

LOAN AND SECURITY AGREEMENT
dated as of May 28, 2015
among
TFS FUNDING I, LLC, 
as the Borrower,
TEREX FINANCIAL SERVICES, INC., 
as the Servicer,
INSTITUTIONAL SECURED FUNDING (JERSEY) LIMITED, 
as the Conduit Lender
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, 
as the Committed Lender
and
CREDIT SUISSE AG, NEW YORK BRANCH, 
as the Administrative Agent, on behalf of the Secured Parties

714816500 14470169
716811044 14470169

TABLE OF CONTENTS
Page

	
				
	ARTICLE I
	LOANS AND SETTLEMENTS
	1

	 
	Section 1.1
	Loans; Commitment
	1

	 
	Section 1.2
	CP Funding
	2

	 
	Section 1.3
	Fees and Other Costs and Expenses
	2

	 
	Section 1.4
	Reductions and Increases in Commitment; Optional Prepayment; Mandatory Prepayment
	2

	 
	Section 1.5
	Establishment of Collection Account
	3

	 
	Section 1.6
	Allocations and Distributions
	4

	 
	Section 1.7
	Extension of Scheduled Termination Dates
	6

	 
	 
	 
	 

	ARTICLE II
	GRANT OF SECURITY INTEREST
	6

	 
	Section 2.1
	Grant of Security Interest
	6

	 
	Section 2.2
	Rights of the Hedge Counterparties
	8

	 
	Section 2.3
	Assignment of Agreements
	8

	 
	Section 2.4
	Continuing Security Interest
	8

	 
	Section 2.5
	Release of Collateral
	8

	 
	 
	 
	 

	ARTICLE III
	ADMINISTRATION AND SERVICING
	10

	 
	Section 3.1
	Appointment of Servicer; Back-up Servicer
	10

	 
	Section 3.2
	Replacement of Servicer
	11

	 
	Section 3.3
	Periodic Report
	12

	 
	Section 3.4
	Custody of Receivable Files
	12

	 
	Section 3.5
	Servicer Fee
	13

	 
	 
	 
	 

	ARTICLE IV
	REPRESENTATIONS AND WARRANTIES
	13

	 
	Section 4.1
	Representations and Warranties of Borrower and TFS
	13

	 
	Section 4.2
	Representations and Warranties of the Administrative Agent
	15

	 
	 
	 
	 

	ARTICLE V
	COVENANTS
	 
	15

	 
	Section 5.1
	Covenants of Borrower and Servicer
	15

	 
	Section 5.2
	Covenants of Administrative Agent
	18

	 
	 
	 
	 

	ARTICLE VI
	EVENTS OF DEFAULT AND REMEDIES
	18

	 
	Section 6.1
	Events of Default
	18

	 
	Section 6.2
	Remedies
	19

	 
	 
	 
	 

	ARTICLE VII
	INDEMNIFICATION
	19

	 
	Section 7.1
	Indemnities by the Borrower and TFS
	19

	 
	Section 7.2
	Increased Cost and Reduced Return
	21

	 
	Section 7.3
	IRS Forms
	22

	 
	 
	 
	 

	ARTICLE VIII
	CONDITIONS PRECEDENT
	22

i

TABLE OF CONTENTS 
(continued)
Page

	
				
	 
	Section 8.1
	Conditions to Initial Loan
	22

	 
	Section 8.2
	Conditions to Each Loan
	23

	 
	 
	 
	 

	ARTICLE IX
	MISCELLANEOUS
	23

	 
	Section 9.1
	Notices
	23

	 
	Section 9.2
	Amendments
	24

	 
	Section 9.3
	Waivers
	24

	 
	Section 9.4
	Successors and Assigns; Participations; Assignments; Addition of New Groups
	24

	 
	Section 9.5
	Intended Tax Characterization
	25

	 
	Section 9.6
	Confidentiality
	25

	 
	Section 9.7
	Agreement Not to Petition
	26

	 
	Section 9.8
	No Recourse
	26

	 
	Section 9.9
	No Right of Set-off
	27

	 
	Section 9.10
	Headings; Counterparts
	27

	 
	Section 9.11
	Cumulative Rights and Severability
	27

	 
	Section 9.12
	GOVERNING LAW
	27

	 
	Section 9.13
	WAIVER OF TRIAL BY JURY
	27

	 
	Section 9.14
	Costs and Expenses
	27

	 
	Section 9.15
	Submission to Jurisdiction
	28

	 
	Section 9.16
	Limitation of Liability
	28

	 
	Section 9.17
	Reinstatement
	28

	 
	Section 9.18
	Entire Agreement
	28

	 
	Section 9.19
	No Third Party Beneficiaries; Hedge Counterparties
	29

	 
	Section 9.20
	Survival
	29

	 
	 
	 
	 

	ARTICLE X
	THE ADMINISTRATIVE AGENT
	29

	 
	Section 10.1
	Authorization and Action of Administrative Agent
	29

	 
	Section 10.2
	Agency Termination
	29

	 
	Section 10.3
	Administrative Agents’ Reliance, Etc
	29

	 
	Section 10.4
	Administrative Agent and Affiliates
	30

	 
	Section 10.5
	Indemnification
	30

	 
	Section 10.6
	Successor Administrative Agent
	30

	 
	Section 10.7
	Rating
	31

	 
	Section 10.8
	Failures by CS Entity as Hedge Counterparty
	31

	 
	 
	 
	 

	Schedule I
	Definitions
	 
	 

	 
	 
	 
	 

	Exhibit A
	Form of Periodic Report
	 

	Exhibit B 
	Form of Transfer Request
	 

	Exhibit C
	Form of Addition Notice
	 

	Exhibit D
	Hedging Strategy
	 

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LOAN AND SECURITY AGREEMENT
LOAN AND SECURITY AGREEMENT, dated as of May 28, 2015 (as the same may be amended, restated or otherwise modified from time to time, this “Agreement”) among TFS FUNDING I, LLC, a Delaware limited liability company, as borrower (the “Borrower”), TEREX FINANCIAL SERVICES, INC. (“TFS”), a Delaware corporation, as servicer (in such capacity, the “Servicer”), the Conduit Lenders party hereto, the Committed Lenders party hereto and CREDIT SUISSE AG, NEW YORK BRANCH, as the Administrative Agent (the “Administrative Agent”).  Certain capitalized terms used herein, and certain rules of construction, are defined in Schedule I.
The parties hereto agree as follows:
ARTICLE I 
LOANS AND SETTLEMENTS
Section 1.1    Loans; Commitment.
(a)    Making of Loans.  Subject to the terms and conditions hereof, the Borrower may, from time to time before the Commitment Termination Date, request the Conduit Lender to make loans secured by the Collateral.  Any such loan (a “Loan”) (1) may be made by the Conduit Lender in its sole discretion and if not made by the Conduit Lender, shall be made by the Committed Lender, in each case by remitting funds to the Borrower on the Closing Date or a Borrowing Date.  In accordance with Section 1.1(c), all or part of such Loan may be made by a Lender from amounts which would otherwise be applied by the Servicer to repay such Lender’s Loan Amounts pursuant to Section 1.6(a)(iii).
(b)    Commitment.  The Committed Lender hereby agrees, subject to Section 8.2 and the other terms and conditions hereof, to make Loans before the Commitment Termination Date to the extent its Loan Amount would not thereby exceed the Facility Limit.  In no event shall the Conduit Lender have an obligation to make a Loan hereunder.
(c)    Loan Requests.  If the Periodic Report delivered on or prior to the Reporting Date of any month or a loan request in the form of Exhibit C hereto (an “Addition Notice”) delivered by the Borrower on any other Business Day, in either case, at least two Business Days prior to a proposed Borrowing Date shall specify (i) that additional Receivables will be added to the Financed Receivables and (ii) a requested amount of an additional borrowing, which must be in a minimum amount of $500,000 (or, if less, an amount equal to the Maximum Borrowing after giving effect to any payments on the related Settlement Date, if such additional borrowing will be on a Settlement Date) the Conduit Lender, or the Committed Lender if the Conduit Lender has determined not to make such requested Loan, shall, subject to the terms and conditions hereof, transfer to the Borrower’s Account the requested proceeds of such Loan by 12:00 p.m. (New York time) on the related Borrowing Date.  To the extent the Servicer is permitted to commingle funds pursuant to Section 1.6(a) and the Borrowing Date is a Settlement Date, amounts to be applied to repay principal on Loan Amounts for any Lender pursuant to Section 1.6(a)(iii) and 1.6(b)(iii) may be netted against the amount that such Lender would otherwise be required to transfer into the 

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

Borrower’s Account pursuant to the preceding sentence.  Any Addition Notice delivered by the Borrower shall list the additional Receivables to be added to the Financed Receivables, and shall contain (i) the Discounted Receivable Balance of each of the additional Receivables as of the applicable Cut-Off Date, (ii) the Adjusted Included Balance (or, if a Canadian Amortization Event has occurred, the U.S. Adjusted Included Balance) as of the applicable Borrowing Date (after giving effect to any additions or deletions on such date), and (iii) the Targeted Loan Amount (or, if a Canadian Amortization Event has occurred, the U.S. Targeted Loan Amount), after giving effect to the requested Loan and any additions to or deletions from the Adjusted Included Balance (or, if a Canadian Amortization Event has occurred, the U.S. Adjusted Included Balance) on such Borrowing Date.  The Administrative Agent shall promptly notify the Borrower, the Servicer, and the Committed Lender if the Conduit Lender has declined, or has determined to decline, to make any requested Loan.
Section 1.2    CP Funding.  It is expected that the Conduit Lender will (but there shall be no obligation of the Conduit Lender to) fund the Loans through the issuance of commercial paper notes.  The Administrative Agent agrees that it will notify the Servicer if any portion of the Loan Amount will be funded other than through the issuance of commercial paper notes and, in such event, of the time periods and the funding cost applicable to such fundings.
Section 1.3    Fees and Other Costs and Expenses.
(a)    The Borrower shall pay to the Administrative Agent for its own account or for the accounts of the Lenders, as applicable, such amounts as set forth in the Fee Letter.
(b)    If any portion of the Loan Amount funded through the issuance of commercial paper notes is reduced, terminated or prepaid other than as a result of a prepayment pursuant to Section 1.4 hereof, the Borrower shall pay the Early Payment Fee to such Lender.
(c)    The Aggregate Loan Amount, and all interest and fees thereon, shall be payable solely from Collections in accordance with Section 1.6, from amounts payable under Section 1.4 and from other proceeds of the Collateral, including proceeds pursuant to the exercise of remedies after an Event of Default, and shall be due and payable in full on the earlier of (x) the Final Maturity Date and (y) the acceleration thereof pursuant to Section 6.2.

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Section 1.4    Reductions and Increases in Commitment; Optional Prepayment; Mandatory Prepayment.  
(a)    At any time the Borrower may, upon five (5) days’ prior written notice to the Administrative Agent (or such shorter time period as is acceptable to such parties), reduce the unused portion of the Facility Limit so long as the Facility Limit at all times equals or exceeds the Aggregate Loan Amount.  A reduction may be a partial reduction or a total reduction of the Facility Limit to zero.  Each partial reduction of the Facility Limit shall be in increments of $1,000,000 or integral multiples of $1,000 in excess thereof (or such other amount requested by the Borrower to which the Administrative Agent consents).  The Borrower may, in its sole discretion, at any time upon at least two (2) days’ notice to the Administrative Agent reduce the Facility Limit to zero and terminate the Commitments and repay the Aggregate Loan Amount in full on the date of such termination.  The Administrative Agent shall promptly deliver a copy of any such notice to the Committed Lender.
(b)    The Borrower may, upon notice to the Administrative Agent, request in writing that the Facility Limit be increased in increments of $1,000,000 or integral multiples of $1,000 in excess thereof (or such other amount requested by the Borrower to which the Administrative Agent and the Committed Lender consents).  The Administrative Agent shall not have any obligation to increase the Facility Limit, and any such increase will be effective only upon the written agreement of the Committed Lender, the Administrative Agent, and the Servicer.  The Administrative Agent will notify the Borrower and the Servicer within five (5) days after receipt of the Borrower’s request, whether the Facility Limit will be increased, and any such increase shall be effective upon the Administrative Agent’s notice thereof.
(c)    At any time the Borrower may, upon at least two (2) Business Days’ prior written notice to the Administrative Agent, prepay all or a portion of the outstanding Aggregate Loan Amount (which, for the avoidance of doubt, shall not affect Borrower’s right to reborrow, and Committed Lender’s commitment to make, further Loans under Section 1.1 of this Agreement).  Each partial reduction of the Aggregate Loan Amount shall be (x) in an aggregate amount of $1,000,000 or integral multiples of $1,000 in excess thereof (or such other amount requested by the Borrower to which the Administrative Agent consents) or (y) in an amount equal to the aggregate outstanding principal balance of the Loans together with accrued interest thereon and other fees and amounts due to the Lenders hereunder.  Each of the Servicer and the Borrower hereby agrees that upon demand by the Administrative Agent (which demand shall be accompanied by a statement setting forth the basis for the calculations of the amount being claimed) the Borrower will indemnify each Lender against any net loss or expense which such Lender may sustain or incur (including, without limitation, any net loss or expense incurred by reason of the liquidation or re-employment of deposits or other funds acquired by such Lender to fund or maintain any Loan made by such Lender to the Borrower, as reasonably determined by the Administrative Agent) as a result of any prepayment of any Loan pursuant to this Section 1.4 (it being understood and agreed that the affected Lender and the Administrative Agent shall take reasonable measures to minimize such net losses and expenses).  Upon receipt from the 

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Borrower of prepayments made in accordance with this Section 1.4 and subject to the satisfaction of the conditions set forth in Section 2.5(a) hereof, the Administrative Agent shall promptly release, at the Borrower’s request and expense, any portion of the Collateral in excess of the amount that would be sufficient to cause the Targeted Loan Amount (or, if a Canadian Amortization Event has occurred, the U.S. Targeted Loan Amount) to be reduced to the new Aggregate Loan Amount.  
(d)    At any time prior to the Commitment Termination Date if no event that, with the giving of notice or lapse of time or both, would constitute an Event of Default, Early Amortization Event or Servicer Replacement Event has occurred and is continuing, upon the Borrower’s request and with the consent of the Administrative Agent (such consent not to be unreasonably withheld, conditioned or delayed), additional Lenders may be added as parties to this Agreement and the Facility Limit may be increased, upon at least ten (10) days prior written notice from the Borrower to the Administrative Agent, by execution and delivery by the parties hereto and such additional lenders of an amendment and restatement of this Agreement and each other applicable Transaction Document, each in form and substance reasonably acceptable to such parties.
Section 1.5    Establishment of Collection Account.
(a)    On or prior to the Closing Date, the Borrower shall cause to be established at Bank of America, N.A. (the “Collection Account Bank”), in the name of the Administrative Agent, an Eligible Account (the “Collection Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Administrative Agent on behalf of the Secured Parties.
(b)    The Collection Account shall be at all times subject to a written agreement among the Borrower, the Servicer, the Administrative Agent and the Collection Account Bank, which provides the Administrative Agent “control” (as defined in the UCC) with respect to the Collection Account and is otherwise in form and substance reasonably satisfactory to the Administrative Agent.
(c)    Funds on deposit in the Collection Account shall be invested by the Collection Account Bank in Permitted Investments selected in writing by the Servicer, on behalf of the Borrower (pursuant to standing instructions or otherwise); provided, that it is understood and agreed that none of the Administrative Agent, the Lenders, the Borrower or the Servicer shall be liable for any loss arising from such investment in Permitted Investments.  All such Permitted Investments shall be held by or on behalf of the Administrative Agent for the benefit and security of the Secured Parties. Except as permitted in writing by the Administrative Agent, funds on deposit in the Collection Account shall be invested in Permitted Investments that will mature so that such funds will be available at the close of business on the next Settlement Date. No Permitted Investment shall be sold or otherwise disposed of prior to its scheduled maturity unless a default occurs with respect to such Permitted Investment and Servicer directs the Collection Account Bank in writing to dispose of such Permitted Investment.
(d)    Except as otherwise provided herein, the Collection Account shall be under the sole dominion and control of the Administrative Agent for the benefit and security of the Secured Parties.  

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If, at any time, the Collection Account ceases to be an Eligible Account, the Borrower (or the Servicer on its behalf) shall within ten (10) Business Days establish a new Collection Account as an Eligible Account and shall transfer any cash and/or any investments to such new Collection Account.
(e)    The Servicer, on behalf of the Borrower, shall give instructions to the Collection Account Bank to permit the timely distribution of funds in accordance with the terms of this Agreement.
(f)    On each Settlement Date, any investment income from investment of funds in the Collection Account shall be distributed to the Borrower.
Section 1.6    Allocations and Distributions.
(a)    Generally.  The Servicer will receive the Collections in a commingled manner to one or more accounts which are not dedicated to the Secured Parties nor subject to any control agreements.  The Servicer may commingle Collections with its own funds and need not segregate Collections in a separate account prior to the deposit of such Collections into the Collection Account.  The Servicer shall deposit into the Collection Account an amount equal to all Collections within two (2) Business Days of receipt thereof, and the Servicer shall deposit into the Collection Account on each Settlement Date any net amounts paid by a Hedge Counterparty to the Borrower under any Hedge Agreement with respect to such Settlement Date. Notwithstanding the foregoing, if (i) no Servicer Replacement Event, Early Amortization Event or Event of Default is then continuing, (ii) TFS is the Servicer hereunder and (iii) Parent has the Required Rating (the conditions described in (i), (ii) and (iii), collectively, the “Monthly Remittance Condition”), then the Servicer may deposit an amount equal to Available Funds with respect to each Monthly Period into the Collection Account on the Settlement Date relating to such Monthly Period in accordance with and to the extent required by the provisions of this Section.  Not later than 5:00 p.m. (New York time) on each Settlement Date, the Servicer (or, if the Monthly Remittance Condition is not in effect, the Collection Account Bank (as directed by the Servicer in the Periodic Report)) will make the following payments from the amount equal to the Available Funds for the related Monthly Period on deposit in the Collection Account in the following order of priority: 
(i)    first, pro rata, (A) to the Servicer for payment of all due and unpaid Servicing Fees, and (B) to the Back-up Servicer, if any, for payment of all due and unpaid Back-up Servicing Fees;
(ii)    second, pro rata (A) to the applicable Hedge Counterparty, any net amounts (other than Hedge Termination Payments) required to be paid under the related Hedge Agreement and (B) to the Administrative Agent for the benefit of the various Funding Parties, the amount of Senior Monthly Interest and Fees for the related Monthly Period and unpaid Senior Monthly Interest and Fees for any prior Monthly Period;
(iii)    third, pro rata (A) to the Administrative Agent for the benefit of the Lenders for the reduction of the Loan Amount, an amount equal to the Principal 

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Payment Amount for such Settlement Date and (B) to the applicable Hedge Counterparty, any Senior Hedge Termination Payments not previously paid by the Servicer;
(iv)    fourth, following the occurrence of an Early Amortization Event or an Event of Default, to the Administrative Agent for the benefit of the Lenders, the Available Funds remaining after making the payments in clauses (i), (ii) and (iii) for the reduction of the Loan Amount until the Loan Amount equals zero;
(v)    fifth, to the Administrative Agent for the benefit of the various Funding Parties, the amount of Subordinated Monthly Interest and Fees for the related Monthly Period and unpaid Subordinated Monthly Interest and Fees for any prior Monthly Period and any Early Payment Fees for the related Monthly Period and unpaid Early Payment Fees for any prior Monthly Period;
(vi)    sixth, to the applicable Hedge Counterparty, any Subordinated Hedge Termination Payments not previously paid by the Servicer;
(vii)    seventh, to the Administrative Agent for the benefit of the Lender, for payment of any and all other sums owed and not paid to the Administrative Agent or the Lender under the Transaction Documents, including, without limitation any amounts required to be paid under this Agreement in respect of indemnities and increased costs to the extent not paid by TFS or the Borrower; and
(viii)    eighth, in accordance with the instructions of the Borrower.
Notwithstanding the foregoing, the Servicer may pay to any Person the net amounts distributable to such Person.  The Servicer shall account to the Borrower as if all such net distributions and deposits were made individually pursuant to Section 1.6
(b)    In addition to the foregoing, not later than 5:00 p.m. (New York time) on each Settlement Date following the occurrence and continuance of a Canadian Amortization Event, the Servicer (or, if the Monthly Remittance Condition is not in effect, the Collection Account Bank (as directed by the Servicer in the Periodic Report)) will make the following payments from the amount equal to the Canadian Available Funds for the related Monthly Period on deposit in the Collection Account in the following order of priority: 
(i)    first, pro rata, (A) to the Servicer for payment of all due and unpaid Servicing Fees, and (B) to the Back-up Servicer, if any, for payment of all due and unpaid Back-up Servicing Fees, in each case after taking into account payments made on such Settlement Date pursuant to clause first of Section 1.6(a) above;
(ii)    second, pro rata (A) to the applicable Hedge Counterparty, any net amounts (other than Hedge Termination Payments) required to be paid under the related Hedge Agreement and (B) to the Administrative Agent for the benefit of the various Funding Parties, the amount of Senior Monthly Interest and Fees for the 

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related Monthly Period and unpaid Senior Monthly Interest and Fees for any prior Monthly Period, in each case after taking into account payments made on such Settlement Date pursuant to clause second of Section 1.6(a) above;
(iii)    third, pro rata (A) to the Administrative Agent for the benefit of the Lenders for the reduction of the Loan Amount, an amount equal to the Principal Payment Amount for such Settlement Date and (B) to the applicable Hedge Counterparty, any Senior Hedge Termination Payments not previously paid by the Servicer, in each case after taking into account payments made on such Settlement Date pursuant to clause third of Section 1.6(a) above;
(iv)    fourth, any Canadian Available Funds remaining after making the payments in clauses (i), (ii) and (iii) above shall be distributed in accordance with the priorities set forth in clauses fourth through seventh of Section 1.6(a), in each case after taking into account payments made on such Settlement Date pursuant to such clauses; and
(v)    fifth, in accordance with the instructions of the Borrower.
Notwithstanding the foregoing, the Servicer may pay to any Person the net amounts distributable to such Person.  The Servicer shall account to the Borrower as if all such net distributions and deposits were made individually pursuant to Section 1.6.
(c)    The Servicer shall be entitled to retain all amounts received in respect of the Receivables which are expressly excluded from the definition of Collections, including (without limitation) all Excluded Amounts.
(d)    The Interest to be paid on each Settlement Date for the Monthly Period ending on such Settlement Date will be estimated by the Administrative Agent on behalf of the Lenders, and the Administrative Agent will advise the Borrower and the Servicer of such estimated amounts, and the actual amounts for the preceding Monthly Period, not later than the fifth Business Day before each Settlement Date. Any difference between the actual Interest and the estimated Interest for any Monthly Period shall be credited or debited, as applicable, against the estimated Interest payable on the Settlement Date at the end of the next Monthly Period.

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Section 1.7    Extension of Scheduled Termination Dates.  If the Borrower desires the Scheduled Termination Date to be extended, it shall so notify the Administrative Agent in writing not more than 120 days and not less than 45 days prior to the Scheduled Termination Date then in effect, requesting an extension for an additional period of up to the period of the initial commitment hereunder.  Neither the Administrative Agent nor the Committed Lender will have any obligation to extend the Scheduled Termination Date, and any such extension will be effective only upon the written agreement of the Administrative Agent, the Committed Lender, the Borrower and the Servicer.  The Administrative Agent will, by written notice to the Borrower and the Servicer given on or before the date (the “Consent Date”) that is 30 days prior to the existing Scheduled Termination Date, advise whether or not the Committed Lender intends to extend the Scheduled Termination Date; provided, that if the Committed Lender determines prior to the Consent Date not to extend its Scheduled Termination Date, either of the Administrative Agent or the Committed Lender will notify the Borrower and the Servicer of such fact as soon as practicable after such determination (but in any event not later than the Consent Date).  The failure of the Committed Lender or the Administrative Agent to so notify the Borrower and the Servicer on or prior to the Consent Date shall be deemed a refusal by the Committed Lender to extend the Scheduled Termination Date.
ARTICLE II 
GRANT OF SECURITY INTEREST
Section 2.1    Grant of Security Interest.  To secure the timely payment of all obligations owing by the Borrower and the performance and observance of all the obligations and liabilities of the Borrower contained in this Agreement and the other Transaction Documents (collectively, the “Borrower Obligations”), the Borrower hereby conveys, warrants, assigns, transfers, pledges and grants a security interest unto the Administrative Agent, for the ratable benefit and security of the Secured Parties, in all of the Borrower’s right, title and interest, wherever located, whether now or hereafter existing, owned or acquired (collectively, the “Collateral”), in, to and under  the following:
(a)    all right, title, interest, claims and demands of the Borrower in, to and under all Financed Receivables, all Related Security with respect to the Financed Receivables and all Collections received with respect to such Financed Receivables received after their respective Cut-Off Dates;
(b)    all right, title, interest, claims and demands of the Borrower in, to and under (i) each Hedge Agreement, (ii) the Sale Agreement (in each case, including all covenants, warranties and guarantees in favor of the Borrower, and all other rights and remedies of the Borrower thereunder) and all payments and distributions thereunder, whether due or to become due, including, without limitation, the rights of the Borrower to enforce such agreements and exercise all remedies thereunder;
(c)    the Receivable Files;
(d)    all right, title and interest of the Borrower in and to the Collection Account Property; 

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(e)    all present and future rights, claims, demands and causes of action in respect of any or all of the foregoing and all rents, issues, profits, revenues or other payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including all proceeds of the conversion, voluntary or involuntary, into cash or other liquid property, and all rights to payment of any and every kind and other forms of obligations and receivables, instruments and other property which at any time constitute all or part of or are included in the products and proceeds of any of the foregoing; and
(f)    any and all other property, whether tangible or intangible, in which the Borrower has a right or interest including, but not limited to, accounts, inventory, instruments, general intangibles (including without limitation, payment intangibles), investment property, chattel paper, equity interests in other Persons and other investment interests and documents, books and records and income, replacements, substitutions, distributions or products and cash and non-cash or proceeds of or related to 
any and all income, replacements, substitutions, distributions or products or proceeds of any and all of the foregoing;
provided, however, that the term “Collateral” shall not include the Excluded Amounts or funds otherwise constituting Collateral that have been distributed to, or received by, the Person or Persons entitled thereto pursuant to this Agreement.
The Administrative Agent hereby acknowledges such grant, accepts the security interests created hereby in accordance with the provisions hereof and agrees to hold and administer all of the Collateral in trust for the use and benefit of the Secured Parties.
The Administrative Agent is hereby authorized to file UCC financing statements naming the Borrower as debtor and the Administrative Agent as secured party and that describe the collateral covered thereby as “all of the Borrower’s personal property, whether now owned or hereafter acquired or coming into existence, and wherever located”.  This agreement shall constitute a security agreement under applicable law.
Each of the Borrower and the Servicer represents and warrants as to itself that each remittance of Collections by the Borrower or the Servicer to the Administrative Agent or the Lender under this Agreement will have been (i) in payment of a debt incurred by the Borrower in the ordinary course of business or financial affairs of the Borrower or the Servicer and the Administrative Agent and (ii) made in the ordinary course of business or financial affairs of the Borrower or the Servicer and the Administrative Agent.
The Borrower may not, without the prior written consent of the Administrative Agent, exercise any rights (including any termination rights) under any Hedge Agreement or any Hedge Transaction that could reasonably be expected to adversely effect the right of the Lenders to receive payments hereunder or under any Hedge Agreement.

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Section 2.2    Rights of the Hedge Counterparties.  No Hedge Counterparty shall have any right to declare an Event of Default, an Early Amortization Event or a Servicer Replacement Event, nor to exercise any rights against, or cause a sale of, the Collateral.
Section 2.3    Assignment of Agreements.  After an acceleration of the Loans pursuant to Section 6.2, the Administrative Agent shall have the right to enforce the Borrower’s rights and remedies under any document constituting part of the Collateral to the same extent as the Borrower could absent this assignment.
Section 2.4    Continuing Security Interest.  This Agreement shall create a continuing security interest in the Collateral and shall:
(a)    remain in full force and effect until payment in full and performance of all Borrower Obligations,
(b)    be binding upon the Borrower and its successors, transferees and assigns, and
(c)    inure, together with the rights and remedies of the Administrative Agent hereunder, to the benefit of the Secured Parties and their successors and assigns.
Upon the later of (x) the irrevocable payment in full and performance of all Borrower Obligations and (y) the occurrence of the Commitment Termination Date, the security interest granted herein shall, immediately and without further action, terminate and be released, all rights to the Collateral shall revert to the Borrower and any funds then remaining on deposit in the Collection Account shall be remitted to the Borrower; provided, that if any claim is ever made upon any Secured Party for the repayment or recovery of any amount received by it in payment or on account of any of the Borrower Obligations and such Secured Party repays all or part of such amount, then the security interest granted herein in the Collateral shall immediately be reinstated notwithstanding any action to terminate and release all rights of the Administrative Agent (for the benefit of the Secured Parties) in the Collateral.  Upon any such termination and release, the Administrative Agent will, at the Borrower’s sole expense, deliver to the Borrower all certificates and instruments representing or evidencing any Collateral, and execute and deliver to the Borrower such documents as the Borrower shall prepare and reasonably request to evidence such termination and release.
The Borrower will perform such acts and execute and deliver to the Administrative Agent such additional documents or instruments as may be reasonably requested by the Administrative Agent to more effectively assure or confirm the grant of security interest hereunder, including, without limitation, the execution of any financing statements or continuation statements for filing under the provisions of the UCC of any applicable jurisdiction; provided, however, that the Borrower will not be required to take any further action with respect to perfection other than the filing of financing statements and continuation statements under the UCC.

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Section 2.5    Release of Collateral.
(a)    Termination Date.  The Administrative Agent shall, on the later of the (i) the date on which all Borrower Obligations have been irrevocably paid in full to all Secured Parties and (ii) the date on which all amounts required to be paid under the Hedge Agreement (including all Senior Hedge Termination Payments and Subordinated Hedge Termination Payments) have been paid in full to the Hedge Counterparty, release any remaining portion of the Collateral from the lien created by this Loan Agreement and remit to the Borrower any funds then remaining on deposit in the Collection Account.
(b)    Take-Out Securitization; Other Repurchases and Prepayments.  The Borrower may obtain releases of the Administrative Agent’s (for the benefit of the Secured Parties) security interest in all or any part of the Collateral from time to time, including in connection with a prepayment pursuant to Section 1.4 hereof, provided that (i) immediately after giving effect to any requested release, the Aggregate Loan Amount does not exceed the Targeted Loan Amount (or, if a Canadian Amortization Event has occurred, the U.S. Targeted Loan Amount) and the Borrower has determined that sufficient Available Funds will be available in the Collection Account on the next Settlement Date for payments in accordance with and to the extent required by the provisions of Sections 1.4 and 1.6 (a), (ii) unless the Principal Payment Amount has been reduced to zero and interest thereon and other amounts due hereunder with respect thereto have been paid in full, there is no Event of Default or Early Amortization Event before or after giving effect to any requested release, (iii) immediately after giving effect to any requested release, including in connection with any Take-Out Securitization, all Receivables owned by the Borrower and included in the Included Balance after giving effect to such release will satisfy the criteria and conditions set forth in the definition of “Eligible Receivable” and “Excess Concentration Amount”; provided, that the Cut-Off Date for purposes of satisfying this clause (iii) shall be deemed to be (I) in the case of a Take-Out Securitization, the “cutoff date” for the related Take-Out Securitization and (II) otherwise, the end of the preceding calendar month or, with the written consent of the Administrative Agent, such other date specified in the Transfer Request; provided, further, that if, after giving effect to such release, any Receivables owned by the Borrower and included in the Included Balance will not satisfy the criteria and conditions set forth in the definition of “Eligible Receivable” or “Excess Concentration Amount”, the Borrower will be permitted to request an additional release of Receivables in order to satisfy such criteria and conditions, (iv) in selecting Receivables for release in connection with any Take-Out Securitization or otherwise, the Borrower shall not use any adverse selection procedures with respect to the Receivables remaining in the Included Balance; provided, that in the case of a Take-Out Securitization, the Borrower shall be permitted to select Receivables in accordance with the eligibility criteria established for such Take-Out Securitization and (v) after giving effect to any requested release, the percentage (based on Discounted Receivable Balance) of the Included Balance which is comprised of Early Stage Delinquent Receivables shall be less than or equal to the percentage of the Included Balance which is comprised of Early Stage Delinquent Receivables immediately prior to giving effect to such release.  In addition, the Administrative Agent shall release its lien on any Receivable in connection with the purchase of such Receivable by the Originator which is required 

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under the Sale Agreement upon receipt of the proceeds from such purchase in the Collection Account.  Each request (a “Transfer Request”) for a partial release of Collateral, except in connection with the repurchase by the Originator under the Sale Agreement, shall be in substantially the form of Exhibit B hereto, addressed to the Administrative Agent, demonstrating compliance with the first proviso of the first sentence of this subsection (b) and acknowledging that the receipt of proceeds from such sale or transfer shall be deposited into the Collection Account.  Each Transfer Request shall be given by the Borrower to the Administrative Agent before 12:00 noon (New York City time) at least four (4) Business Days prior to the requested date of release, and the Administrative Agent shall give notice of any such Transfer Request to the Lenders before 4:00 p.m. (New York City time) on the second (2nd) Business Day after it receives such request from the Borrower.
(c)    Transfers.  With respect to each Transfer Request that is received by 12:00 noon, New York City time, on a Business Day, the Administrative Agent shall use reasonable efforts to review such Transfer Request and to instruct in writing the Servicer (if TFS or an Affiliate thereof is not the Servicer) to prepare the files, identified in such Transfer Request, for delivery or shipment by 12:00 noon, New York City time on the fourth succeeding Business Day.
(d)    Application of Proceeds; No Duty.  Neither the Administrative Agent nor the Lenders shall be under any duty at any time to credit the Borrower for any amount due from any third party in respect of any purchase of any Collateral contemplated above, until the Administrative Agent has actually received such amount in immediately available funds for deposit into the Collection Account.  Neither the Administrative Agent nor the Lenders shall be under any duty at any time to collect any amounts or otherwise enforce any obligations due from any third party in respect of any such sale or transfer of Receivables covered by the release of such portion of Collateral or in respect of a securitization thereof with a third party.
(e)    Release of Security Interest.  Upon receipt of a Transfer Request or, in connection with the repurchase of a Receivable by the Originator under the Sale Agreement, upon the Originator’s written request, and, in each case, upon receipt in the Collection Account of all proceeds from the related sale or transfer and satisfaction of the conditions set forth in Section 2.5(a) above, the Administrative Agent shall promptly release, at the Borrower’s expense, such portion of Collateral covered by the Transfer Request or the Originator’s request and shall deliver, at the Borrower’s expense, the documents and certificates related to the released portion of Collateral to the trustee or such similar entity in connection with any Transfer Request or upon the direction of the Originator, as applicable.
(f)    Required Payoff Amount.  Notwithstanding anything in this Section 2.5 to the contrary, the Borrower shall not be obligated to remit any Excess Proceeds into the Collection Account, and the Administrative Agent shall release the security interest in any items of Collateral pursuant to Section 2.5(d) upon receipt of the Required Payoff Amount.  As used above, “Required Payoff Amount” means the amount that must be deposited in the Collection Account so (i) the Aggregate Loan Amount does not exceed the Targeted Loan 

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Amount (or, if a Canadian Amortization Event has occurred, the U.S. Targeted Loan Amount) as a result of such sale or transfer and (ii) the funds on deposit in the Collection Account are sufficient to pay the amounts specified in clauses (i) through (iii) of Section 1.6(a) (assuming for purposes of this clause (ii) that the date of determination of such Required Payoff Amount is a Settlement Date).  “Excess Proceeds” means all proceeds from the sale or transfer of the Collateral in accordance with Section 2.5(a) in excess of the Required Payoff Amount.
ARTICLE III 
ADMINISTRATION AND SERVICING
Section 3.1    Appointment of Servicer; Back-up Servicer.
(a)    The servicing, administering and collecting of the Financed Receivables shall be conducted by a Person (the “Servicer”) designated to so act on behalf of the Borrower under this Article III.  TFS is hereby designated as, and agrees to perform the duties and obligations of, the Servicer.  The Servicer, for the benefit of the Borrower and the Lenders, shall manage, at its expense, service, administer and make collections on the Financed Receivables in accordance with its Customary Servicing Practices, using the same degree of skill and attention that the Servicer exercises with respect to all comparable receivables that it services for itself or others. The Servicer may change its Customary Servicing Practices from time to time; provided that the Servicer shall not make any change in its Customary Servicing Practices that would materially and adversely affect the Financed Receivables (or the Administrative Agent’s or any Lenders rights thereto or interest therein), the Administrative Agent or any Lender or the Administrative Agent’s or any Lender’s rights and interests hereunder, without first obtaining the written consent of the Administrative Agent.
(b)    The Servicer may delegate its duties and obligations as Servicer to (i) third parties to whom such servicing functions are delegated in accordance with the Customary Servicing Practices or (ii) any Affiliate; provided that in each case, unless the Administrative Agent otherwise agrees in writing, the Servicer shall remain primarily liable for the performance of its obligations hereunder.
(c)    If the Servicer shall commence a legal proceeding to enforce a Financed Receivable, the Borrower shall thereupon be deemed to have automatically assigned, solely for the purpose of collection, such Financed Receivable to the Servicer.  If in any enforcement suit or legal proceeding it shall be held that the Servicer may not enforce a Financed Receivable on the ground that it is not a real party in interest or a holder entitled to enforce such Financed Receivable, the Borrower shall, at the Servicer’s expense and direction, take steps to enforce such Financed Receivable, including bringing suit in its name.
(d)    In performing its obligations hereunder, the Servicer will comply with all applicable laws, rules, regulations and orders except to the extent that the failure to so comply with such laws, rules, regulations and orders would not reasonably be expected to have a Material Adverse Effect.

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(e)    The Servicer shall use its best efforts to enter into a Back-Up Servicing Agreement with a back-up servicer reasonably acceptable to the Administrative Agent (the “Back-Up Servicer”) within thirty (30) days after the date of this Agreement.  
Section 3.2    Replacement of Servicer.
(a)    If a Servicer Replacement Event shall occur and be continuing, the Administrative Agent may replace the Servicer with the Back-up Servicer or with another successor Servicer by giving written notice thereof to the Servicer.  On and after receipt of such written notice, all authority and power of the Servicer shall pass to and be vested in the Back-up Servicer or such other successor Servicer as may be appointed by the Administrative Agent; provided, however, that the Servicer cannot be removed unless and until the Back-up Servicer or such other successor Servicer has been selected and appointed. 
(b)    If replaced, the Servicer agrees it will cooperate with and assist any new Servicer, including providing access to, and transferring, all Receivables Files and the Collection Account and allowing the new Servicer to use (to the extent legally permissible) all licenses, hardware or software necessary or desirable to collect the Receivables.
(c)    Following the removal of the Servicer and replacement with a successor Servicer that is not an Affiliate of TFS or any successor thereto, the Administrative Agent may (a) notify Obligors of the security interest of the Administrative Agent in the Financed Receivables and may direct such Obligors to make all payments thereof to the Administrative Agent’s designee, and (b) notify each issuer of an Insurance Policy of the security interest of the Administrative Agent hereunder in the Financed Receivables and in the Related Security (including the applicable Equipment and Insurance Policy thereon) and may direct such issuers to make all payments thereon to the Administrative Agent’s designee.
(d)    In the event of a replacement of TFS as Servicer after a Servicer Replacement Event, the Administrative Agent agrees to use commercially reasonable efforts to cause any successor Servicer to agree to indemnify the Servicer against any losses, liabilities, damages or expenses (including attorneys’ fees) as a result of the negligence or willful misconduct of such successor Servicer.
(e)    The Servicer shall take such steps consistent with Customary Servicing Practices as necessary to maintain perfection of TFS’s security interest created by such Receivable in the related Equipment.

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Section 3.3    Periodic Report.  On each Reporting Date, the Servicer shall deliver to the Administrative Agent a report reflecting information as of the close of business of the Servicer for the immediately preceding Monthly Period (each, a “Periodic Report”) substantially in the form attached as Exhibit A hereto.  Each Periodic Report shall be delivered in electronic format.
Section 3.4    Custody of Receivable Files.
(a)    To ensure uniform quality in servicing the Receivables and to reduce administrative costs, the Borrower, the Administrative Agent and the Lenders hereby appoint the Servicer, and the Servicer hereby accepts such appointment, to act or cause its agents to act for the benefit of the Borrower, the Administrative Agent and the Lenders as custodian of the following documents or instruments which are hereby or will hereby be constructively delivered to the Administrative Agent, as pledgee of the Borrower, as of the Closing Date with respect to each Receivable, but only to the extent applicable to such Receivable (the “Receivable Files”):
(i)    the fully executed original, or a copy, of the Contract related to such Receivable, together with all amendments, waivers or modifications thereto;
(ii)    the original credit application, or a copy thereof, fully executed by the Obligor; and
(iii)    such documents that the Servicer or the Borrower shall keep on file, in accordance with its customary procedures, evidencing the security interest of the Originator in the Equipment.
(b)    With respect to the documents constituting each Receivable File, the Servicer, as custodian, shall (i) act exclusively as the custodian for, and the agent and bailee (as such term is used in Section 9-313 of the UCC) of, the Secured Parties, (ii) hold all documents constituting such Receivable Files received by it for the exclusive use and benefit of the Secured Parties and (iii) make disposition thereof only in accordance with the terms of this Agreement or with written instructions furnished by the Administrative Agent.  In performing its duties as custodian the Servicer shall use the same degree of skill and attention that the Servicer exercises with respect to receivable files relating to comparable receivables that the Servicer services for itself or others. The Servicer shall promptly report to the Administrative Agent any failure on its part to hold (individually or through its Affiliates) any material portion the Receivable Files. The Servicer shall not at any time have, or in any way attempt to assert, any interest in any Receivable held by it as custodian hereunder or in the related Receivable File, other than for collecting or enforcing such Receivable for the benefit of the Issuer, the Administrative Agent and the Secured Parties.
(c)    The Servicer’s appointment as custodian with respect to a Receivable File for a Receivable shall become effective as of the date such Receivable is transferred to the Borrower and shall continue in full force and effect until TFS shall cease to be Servicer in accordance with the provisions of this Agreement, at which time the appointment of such Servicer as custodian shall be terminated by the Administrative Agent.   As soon as 

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practicable thereafter, the Servicer shall deliver the Receivable Files to the Administrative Agent or to a Person designated by the Administrative Agent at a place and time as the Administrative Agent may reasonably designate.  The Servicer shall not resign as custodian without the prior written consent of the Administrative Agent.
(d)    The Servicer may delegate its duties and obligations as custodian to any Affiliate or any unrelated third-party provider of custodial services; provided that unless the Administrative Agent otherwise agrees in writing, the Servicer shall remain liable for the performance of its obligations as custodian hereunder notwithstanding such delegation.
Section 3.5    Servicer Fee.  On or before each Settlement Date, the Borrower shall pay to the Servicer in accordance with Section 1.6 the Servicing Fee for the immediately preceding calendar month as compensation for its services.  In addition, the Servicer may retain any Excluded Amounts. To the extent any Excluded Amounts are deposited into the Collection Account, Servicer may withdraw such Excluded Amounts on or before each Settlement Date prior to any distributions being made pursuant to Section 1.6.
Section 3.6    Servicer Consent to Prepayment Shortfall.  If the Servicer shall consent during any Monthly Period to any early termination of any Lease Contract prior to its scheduled expiration and shall receive an amount in respect thereof that is less than the Discounted Receivable Balance of such Contract plus accrued and unpaid interest thereon through the end of such Monthly Period, the Servicer shall deposit the amount of such shortfall to the Collection Account on the related Settlement Date.    
Section 3.7    Servicer Not to Resign. The Servicer shall resign only with the prior written consent of the Administrative Agent or if the Servicer provides an opinion letter from  counsel (which counsel is reasonably acceptable to the Administrative Agent) to the  Administrative Agent to the effect that such Servicer is no longer permitted by law to act as  Servicer hereunder. No termination or resignation of the Servicer hereunder shall be effective  until a Successor Servicer, acceptable to the Administrative Agent has accepted its appointment  as Successor Servicer hereunder and has agreed in writing to be bound by the terms of this  Agreement.

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ARTICLE IV 
REPRESENTATIONS AND WARRANTIES
Section 4.1    Representations and Warranties of Borrower and TFS.  Each of the Borrower and TFS represents and warrants to the Administrative Agent and the Lenders, on the Closing Date and the day any Loan is made solely as to itself, that:
(a)    Existence and Power.  The Borrower is a limited liability company and TFS is a corporation duly organized, validly existing and in good standing under the laws of its state of organization and has all power and authority required to carry on its business as it is now conducted.  Each of the Borrower and TFS has obtained all necessary licenses and approvals in all jurisdictions where the failure to do so would reasonably be expected to have a Material Adverse Effect.
(b)    Authorization and No Contravention.  The execution, delivery and performance by the Borrower and TFS of each Transaction Document to which it is a party (i) have been duly authorized by all necessary limited liability company or corporate action and (ii) do not violate or constitute a default under (A) any applicable law, rule or regulation the violation of which would reasonably be expected to have a Material Adverse Effect, (B) its organizational instruments or (C) any agreement, contract, order or other instrument to which it is a party or its property is subject, the violation of which, in the case of TFS only, would reasonably be expected to have a Material Adverse Effect, and (iii) will not result in any Adverse Claim on any Receivable or Collection or give cause for the acceleration of any indebtedness of the Borrower or TFS.
(c)    No Consent Required.  No approval, authorization or other action by, or filing with, any Governmental Authority is required in connection with the execution, delivery and performance by the Borrower or TFS of any Transaction Document other than UCC filings and other than approvals and authorizations that have previously been obtained and filings which have previously been made.
(d)    Binding Effect.  Each Transaction Document to which the Borrower or TFS is a party constitutes the legal, valid and binding obligation of such Person enforceable against that Person in accordance with its terms, except as limited by bankruptcy, insolvency, or other similar laws of general application relating to or affecting the enforcement of creditors’ rights generally and subject to general principles of equity.
(e)    Perfection of Security Interest.  This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Receivables in favor of the Administrative Agent, which security interest is prior to all other liens, and is enforceable as such as against creditors of and purchasers from the Borrower.  The Receivables constitute “accounts”, “payment intangibles” or “chattel paper” within the meaning of the applicable UCC.  The Borrower owns and has good and marketable title to the Receivables free and clear of any lien, claim or encumbrance of any Person.  The Borrower has caused or will have caused, within ten days after the Closing Date, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law 

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in order to perfect the security interest in the Receivables granted to the Administrative Agent hereunder.  Other than the security interest granted to the Administrative Agent pursuant to this Agreement, the Borrower has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Receivables.  The Borrower has not authorized the filing of and is not aware of any financing statements against the Borrower that include a description of collateral covering the Receivables other than any financing statement relating to the security interest granted to the Administrative Agent hereunder or that has been terminated.  The Borrower is not aware of any judgment or tax lien filings against Borrower.  Notwithstanding any statement to the contrary contained herein, neither the Borrower nor the Servicer shall be required to perfect any security interest in any commingled Collections, to notify any insurer with respect to any insurance policy obtained by an Obligor.
(f)    Accuracy of Information.  All written information furnished by or on behalf of TFS or the Borrower to the Administrative Agent or any Lender for purposes of or in connection with this Agreement or any transaction contemplated hereby was true and accurate in all material respects as of the date such information was furnished (except to the extent such information related solely to an earlier date, in which case such information was true and accurate in all material respects as of such earlier date).
(g)    No Proceedings.  There is no action, suit, proceeding or investigation pending or, to the knowledge of TFS or the Borrower, threatened against TFS or the Borrower which, in the case of TFS only, either in any one instance or in the aggregate, would reasonably be expected to have a Material Adverse Effect.  No proceeding has been instituted against the Borrower or TFS seeking to adjudicate it bankrupt or insolvent, or seeking the liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee or other similar official for the Borrower or TFS or any substantial part of its property.
(h)    Eligible Receivables.  Each Financed Receivable included in the Included Balance (or, if a Canadian Amortization Event has occurred, the U.S. Included Balance), as of any date of determination thereof was an Eligible Receivable as of such date.  Each Receivable File with respect to a Financed Receivable contains the documents and instruments described in the definition of Receivable File.
(i)    Investment Company.  The Borrower (i) is not a “covered fund” under Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (such statutory provision together with such implementing regulations, the “Volcker Rule”) and (ii) is not required to register as an “investment company” within the meaning of the Investment Company Act of 1940, as amended (the “Investment Company Act”).  In determining that the Borrower is not a covered fund, the Borrower is entitled to either the benefit of the exemption provided under Section 3(c)(5) under the Investment Company Act or the exclusion for loan securitizations in the Volcker Rule under 17 C.F.R. 75.10(c)(8), although there may be additional exclusions or exemptions available to the Borrower.

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(j)    UCC Information.  The Borrower is a “registered organization” (as defined in Section 9-102 of the UCC) formed in the State of Delaware and for purposes of Article 9 of the UCC, the Borrower is located in the State of Delaware.  The Borrower’s name on the Closing Date is (and has been at all times since the date of its formation) “TFS Funding I, LLC” and, since the Closing Date, the Borrower has not changed its name, “location” or organizational structure, except as in accordance with Section 5.1(k) hereof.
(k)    Purchase.  With respect to the Receivables transferred to the Borrower under the Sale Agreement, the Borrower has given reasonably equivalent value to the Originator of such Receivables in consideration therefor and such transfer was not made for or on account of an antecedent debt.
(l)    Solvency.  After giving effect to the sale or contribution of the Receivables and the Loans, as applicable, to be made on such date and to the application of the proceeds therefrom, the Borrower (i) is not “insolvent” (as such term is defined in Title 11 of the United States Code entitled “Bankruptcy,” as amended), (ii) is able to pay its debts as they become due and (iii) does not have unreasonably small capital for the business in which it is engaged or for any business or transaction in which it reasonably expects to engage.
(m)    Selection Procedures.  No procedures believed by the Borrower to be adverse to the interests of the Lenders were utilized in identifying and/or selecting Receivables to be sold to the Borrower from all Receivables which could qualify as Eligible Receivables at the time of such identification and/or selection.
(n)    Anti-Corruption Laws and Sanctions. Policies and procedures have been implemented and maintained by or on behalf of TFS that are designed to achieve compliance by it and its Subsidiaries, if any, directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, giving due regard to the nature of such Person’s business and activities, and it and its Subsidiaries and their respective officers and employees acting in any capacity in connection with or directly benefitting from the transactions contemplated hereby, are in compliance with Anti-Corruption Laws and applicable Sanctions, in each case in all material respects. Neither TFS nor any of its Subsidiaries nor, to its knowledge any of their respective directors, officers, employees or agents is a Person that is, or is owned or controlled by any Person that is: (i) the subject of any international economic sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury or any governmental authority or regulatory body in Canada (collectively, “Sanctions”), or (ii) located, organized or resident in a country or territory that is, or whose government is, the subject of Sanctions.
(o)    Taxes.  The Borrower and TFS have filed and paid all material taxes (other than any amount of tax the validity of which is contested in good faith by appropriate proceedings and with respect to which reserves in accordance with GAAP are provided on the books of the Borrower or TFS, as applicable), which are required to have been paid or filed.

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Section 4.2    Representations and Warranties of Conduit Lenders.  Each of the Conduit Lenders represents and warrants to TFS and the Borrower that the offer, solicitation or sale of the commercial paper notes by such Conduit Lender does not require registration under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction.
ARTICLE V 
COVENANTS
Section 5.1    Covenants of Borrower and Servicer.  Until all Loans hereunder have been paid in full and the Commitment Termination Date has occurred and unless the Administrative Agent shall otherwise consent, the Borrower and the Servicer (to the extent set forth herein) will comply with the following covenants and agreements:
(a)    Information.  The Borrower, in the case of clause (1), and the Servicer, in the case of clauses (1), (2) and (3), will furnish to the Administrative Agent, but only to the extent such information or document is not publicly available:
(1)    such information, documents or records respecting the Financed Receivables as the Administrative Agent may from time to time reasonably request;
(2)    within ninety (90) days after each fiscal year of Parent, copies of Parent’s annual audited financial statements certified by independent certified public accountants and prepared on a consolidated basis in conformity with GAAP; provided that the filing with the SEC of such financial statements by the Parent on Form 10-K within the time period prescribed by law shall constitute satisfaction of the delivery requirements under this Section 5.1(a)(2); and
(3)    within sixty (60) days after the first three quarters of each fiscal year of the Parent, copies of Parent’s quarterly unaudited financial statements prepared on a consolidated basis; provided that the filing with the SEC of such financial statements by the Parent on Form 10-Q within the time period prescribed by law shall constitute satisfaction of the delivery requirements under this Section 5.1(a)(3).
(b)    Notices.  The Borrower and the Servicer will as soon as possible, after obtaining actual knowledge thereof, notify the Administrative Agent of the occurrence of an Early Amortization Event, a Servicer Replacement Event or an Event of Default or any event that with the giving of notice or lapse of time, or both, would constitute an Early Amortization Event, a Servicer Replacement Event or an Event of Default.
(c)    Conduct of Business.  Each of the Borrower and the Servicer will perform all actions necessary to remain duly organized or incorporated, validly existing and in good standing in its jurisdiction of formation or incorporation and to maintain all requisite authority to conduct its business in each jurisdiction in which it conducts business, except where the failure to so comply would not reasonably be expected to have a Material Adverse Effect.

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(d)    Compliance with Laws.  Each of the Borrower and the Servicer will comply with all laws, regulations, judgments and other directions or orders imposed by any Governmental Authority to which such Person or any Financed Receivable may be subject except where the failure to so comply would not reasonably be expected to have a Material Adverse Effect.
(e)    No Adverse Claim.  Except in the ordinary course of business in connection with the sale or disposition of returned or repossessed Equipment in accordance with the Customary Servicing Practices, or as otherwise provided herein, neither the Borrower nor the Servicer shall sell, assign (by operation of law or otherwise) or otherwise dispose of, or create or permit to exist any Adverse Claim upon or with respect to any of the Collateral (other than an immaterial portion thereof).
(f)    Perfection.  Each of the Borrower and the Servicer will at its expense, promptly execute and deliver all instruments and documents and take all action necessary or reasonably requested by the Administrative Agent (including the authorization and filing of financing or continuation statements, amendments thereto or assignments thereof) to enable the Administrative Agent to exercise and enforce all its rights hereunder and to vest and maintain vested in the Administrative Agent a valid, first priority perfected security interest in the Collateral free and clear of any Adverse Claim; provided, however, that neither the Borrower nor TFS shall be required to perfect any security interest in any commingled Collections or to notify any insurer with respect to any insurance policy obtained by an Obligor; provided, further that neither the Borrower nor the Servicer shall grant to any Person or suffer to exist any Adverse Claim upon, or grant any Person dominion and control, or the right, at a future time or upon the occurrence of a future event, to take dominion and control in respect of, any lockbox or account into which Collections are deposited.  The Administrative Agent is hereby authorized to file any continuation statements and assignments thereof.  Nothing contained in this paragraph (f) shall limit the Servicer’s obligation to remit Available Funds pursuant to Section 1.6 or the Servicer’s liability for failure to do so.  A reproduction of this Agreement or any financing statement shall be sufficient as a financing statement.  The Borrower or the Servicer need not mark any contract relating to a Financed Receivable to indicate the Administrative Agent’s interest therein or segregate the files from other Receivables then owned by the Originator or being serviced by the Servicer.
(g)    Inspection of Records.  At the Borrower’s expense, which in the case of clause (i) shall not exceed at $25,000 per year, (i) prior to the occurrence of an Early Amortization Event or Event of Default, once per calendar year, and (ii) following the occurrence of an Early Amortization Event or Event of Default, at any time, upon five Business Days’ prior written notice to the Servicer and during regular business hours, the Servicer will permit the Administrative Agent and/or its agents or representatives (including any nationally recognized accounting firm), (A) to examine and make copies of and abstracts from all the Servicer’s and the Borrower’s records relating to the Financed Receivables, including, without limitation the Receivables Files, and (B) to visit the offices and properties of the Servicer for the purpose of examining such records, and to discuss matters relating to the 

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Financed Receivables, including, without limitation the Receivables Files, or the Servicer’s or the Borrower’s performance hereunder with any of the officers or employees of the Servicer having knowledge of such matters.
(h)    Keeping Records.  The Borrower will cause the Servicer, at all times from and after the date hereof, to mark its electronic master data processing records for the Financed Receivables to indicate the Borrower’s and the Administrative Agent’s interest therein; provided, however, that the Borrower and the Servicer need not mark any contract relating to a Financed Receivable to indicate the Borrower’s or the Administrative Agent’s interest therein or segregate the files for the Financed Receivables from the files for other Receivables then owned by the Originator or being serviced by the Servicer.
(i)    Nature of Business.  The Borrower will not engage in any business other than the transactions contemplated by the Transaction Documents.
(j)    Limited Liability Company Agreement.  
(i)    The Borrower will comply with the provisions of its limited liability company agreement and will not amend, modify or delete any provisions of its limited liability company agreement without the prior written consent of the Administrative Agent, which consent shall not be unreasonably withheld.
(ii)    Without limiting the foregoing clause (i), the Borrower (A) shall at all times have at least one “Independent Director” (as defined in its limited liability company agreement); (B) shall not amend, alter, change or repeal any of the provisions of its limited liability company agreement referenced in Section 9(j)(ii) thereof without the unanimous consent of the “Board” (as defined in its limited liability company agreement) (including the Independent Director); (C) shall not take any “Material Action” (as defined in its limited liability company agreement) without the unanimous consent of the Board (including the Independent Director) and (D) shall comply with the terms of Section 9(j)(v) of its limited liability company agreement.
(k)    Organizational Structure.  Neither the Borrower nor TFS shall change its name, identity, corporate structure or state of registration in any manner that would (i) make any financing statement or continuation statement filed in accordance with Section 5.1(f) above “seriously misleading” within the meaning of Sections 9-506, 9-507 or 9-508 of the UCC or any other applicable provision of the UCC or (ii) change its location (as defined in Section 9-307 of the UCC), unless it shall have given the Administrative Agent at least ten (10) days prior notice thereof and shall have taken all action prior to making such change (or shall have made arrangements to take such action substantially simultaneously with such change, if it is not possible to take such action in advance) necessary or advisable in the reasonable opinion of the Administrative Agent to amend all previously filed financing statements or continuation statements, or to file appropriate new financing statements.  The Borrower and TFS will at all times maintain their “locations” within the USA.

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(l)    Sale Agreement.  The Borrower may amend, waive or modify any provision of the Sale Agreement with the prior written consent of the Administrative Agent, which consent will not be unreasonably withheld.  The Borrower will perform all of its obligations under the Sale Agreement in all material respects and will enforce the Sale Agreement in accordance with its terms.
(m)    Hedge Agreement.  The Borrower shall not terminate any Hedge Agreement except to the extent permitted under the terms set forth in Exhibit D.
(n)    Accounting Records.    The Borrower will maintain separate accounting records, in accordance with GAAP.
(o)    Anti-Corruption Laws and Sanctions. Neither the Borrower nor TFS shall not, directly or indirectly, use the proceeds of any Funding, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person, in each case, (i) to fund any activities or business of or with any Person, or in any country or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions, or (ii) in any other manner that would result in a violation of Sanctions by any Person (including any Person participating in any Loan).
Section 5.2    Risk Retention. TFS, in its capacity as sole member of the Borrower, shall retain 100% of the outstanding equity interests of the Borrower, and shall not enter into any credit risk mitigation, short position or any other hedge with respect to such equity interest.
Section 5.3    Covenants of Administrative Agent.  Until all of the Loans hereunder have been paid in full and unless the Borrower shall otherwise consent, if the rating assigned to the commercial paper notes of any Conduit Lender is lowered to less than “A‐1” by S&P or “P-1” by Moody’s or withdrawn by any Rating Agency, each Lender and the Administrative Agent, at the request and direction of the Borrower, will cooperate in good faith with the Borrower to assign and to cause each Conduit Lender to assign, the Loans and their respective rights and obligations under this Agreement, as applicable, to another Person or Persons identified by and acceptable to the Borrower.
Section 5.4    Covenants regarding Canadian-Dollar Receivables.  In the event that the Borrower wishes to include Receivables which are Canadian dollar-denominated or which are originated in Canada or payable by Canadian Obligors (“Canadian Receivables”) in the Collateral, the Borrower shall provide written notice thereof to the Administrative Agent.  The Borrower and the Servicer shall provide to the Administrative Agent and the Lenders such information regarding the origination, servicing and collection of such Canadian Receivables as the Administrative Agent or any Lender may reasonably request.  Upon receipt of such information, the Administrative Agent may, at the Borrower’s expense, engage counsel (including Canadian counsel) to advise it in connection with the financing of such Canadian Receivables.  The Administrative Agent, the Borrower and the Servicer shall thereafter work diligently to amend this Agreement and the other Transaction Documents to include the terms and conditions for the financing of such Canadian Receivables which terms and conditions shall include (i) provisions for the hedging of the foreign currency risk associated therewith which fully protect the Administrative Agent and the Lenders 

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from all foreign currency risk; (ii) a methodology for calculating the U.S.-dollar equivalent value of such Canadian Receivables; (iii) provisions which are necessary or advisable to grant to the Administrative Agent a fully perfected, first priority security interest in such Canadian Receivables consistent with the existing terms of this Agreement and the other Transaction Document under all applicable law; (iv) provisions relating to taxes, including any withholding taxes, which fully protect the Administrative Agent and the Lenders from any adverse tax consequences relating to Canadian Receivables; (v) indemnities in favor of the Administrative Agent and the Lenders with respect to such Canadian Receivables consistent with the existing terms of this Agreement and the other Transaction Document; (vi) the requirement to deliver to the Administrative Agent and the Lenders such opinions of counsel, certificates and other documents and agreements as the Administrative Agent and the Lenders may deem necessary or advisable; and (vii) such other provisions as may be necessary or advisable in the reasonable credit judgment of the Administrative Agent and the Lenders after review of the information provided by the Borrower and the Servicer regarding the origination, servicing and collection of such Canadian Receivables.
ARTICLE VI 
EVENTS OF DEFAULT AND REMEDIES
Section 6.1    Events of Default.  If the occurrence of any event described in clause (c) below or the delivery by the Administrative Agent of written notice stating that it is an “Event of Default Notice” to the Borrower after any other event described below shall have occurred and be continuing, it shall constitute an “Event of Default”:
(a)    failure of the Borrower to pay any Interest on the Loan Amount when the same becomes due and payable in accordance with Section 1.6(a), and such failure shall continue for a period of five (5) Business Days;
(b)    failure of the Borrower to pay in full the outstanding Aggregate Loan Amount on the Final Maturity Date or to make any payment of principal on the Aggregate Loan Amount when the same becomes due and payable in accordance with Section 1.6(a), and such failure shall continue for a period of five (5) Business Days;
(c)    the Borrower shall suffer a Bankruptcy Event; 
(d)    the Aggregate Loan Amount exceeds the Targeted Loan Amount for a period of five (5) Business Days; provided, that if (x) the Aggregate Loan Amount exceeds the Targeted Loan Amount solely as a result of an increase of the Excess Concentration Amount resulting solely from a prepayment of a Receivable by an Obligor and (y) no other event that, with the giving of notice or lapse of time or both, would constitute an Event of Default, Early Amortization Event or Servicer Replacement Event has occurred and is continuing, then no Event of Default shall occur under this Section 6.1(d) unless the Aggregate Loan Amount exceeds the Targeted Loan Amount for a period of thirty-one (31) days;
(e)    the Administrative Agent (on behalf of the Secured Parties) shall cease at any time to have a first priority perfected security interest in the Collateral, free and clear of any Adverse Claims and such failure shall continue for a period of ten (10) days after the 

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earlier of actual knowledge of the Borrower, the Originator, the Servicer or the Performance Guarantor, or the Borrower, the Originator, the Servicer or the Performance Guarantor having received written notice thereof from the Administrative Agent or any Lender;
(f)    the Internal Revenue Service shall file notice of a lien pursuant to Section 6323 of the Code with regard to any assets of the Borrower or TFS and such lien shall not have been released within thirty (30) days, or the Pension Benefit Guaranty Corporation shall file notice of a Lien pursuant to Section 4068 of ERISA with regard to any of the assets of the Borrower or TFS and such Lien shall not have been released or stayed within thirty (30) days;
(g)    (A) any Transaction Document shall (except in accordance with its terms), in whole or in material part, terminate, cease to be effective or cease to be the legally valid, binding and enforceable obligation of the Borrower, TFS, the Performance Guarantor or the Servicer or (B) the Borrower, TFS, the Performance Guarantor, the Servicer or any other party shall, directly or indirectly, disaffirm or contest in any manner such effectiveness, validity, binding nature or enforceability of any Transaction Document;
(h)    the Performance Guarantor fails to observe or perform any material term, covenant or agreement under the Performance Guaranty and such failure shall continue for a period of thirty (30) days; 
(i)    the failure of TFS to own 100% of the outstanding membership interests of the Borrower; 
(j)    the failure of the Borrower to enter into a Hedge Agreement having a Hedge Notional Amount equal to the then outstanding Aggregate Loan Amount on our before June 11, 2015 in accordance with principals set forth on Exhibit D and thereafter, the failure to maintain any Hedge Agreement except to the extent permitted under the terms set forth in Exhibit D; 
(k)    the failure of the Servicer to have entered into a Back-Up Servicing Agreement with a back-up servicer reasonably acceptable to the Administrative Agent within forty-five (45) days after the date of this Agreement; or
(l)    the Borrower shall become an “investment company” or a company controlled by an “investment company” within the meaning of the Investment Company Act;
provided, however , that a delay or failure of performance under clauses (a) or (b) above for a period of thirty (30) days beyond the applicable cure period will not constitute an Event of Default if such delay or failure was caused by a Force Majeure Event.

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Section 6.2    Remedies.  When an Event of Default has occurred and is continuing, then (i)(A) upon the written direction of the Administrative Agent, in the case of an Event of Default under Section 6.1 (other than Section 6.1(c)) and (B) automatically without action by any Person, in the case of an Event of Default described in Section 6.1(c), all Loans, including Interest and principal, shall immediately become due and payable together with all other amounts payable under this Agreement without demand, protest or notice of any kind and (ii) the Administrative Agent may exercise all remedies available to it under the applicable UCC.
ARTICLE VII 
INDEMNIFICATION
Section 7.1    Indemnities by the Borrower and TFS.  
(a)    Without limiting any other rights any such Person may have hereunder or under applicable law, the Borrower hereby indemnifies and holds harmless the Administrative Agent, the Lenders, their Affiliates and their respective officers, directors, agents and employees (each an “Indemnified Party”) from and against any and all damages, losses, claims, liabilities, penalties, and related costs and expenses (including reasonable attorneys’ fees and court costs) (all of the foregoing collectively, the “Borrower Indemnified Losses”) at any time imposed on or incurred by any Indemnified Party arising out of or otherwise relating to:
(i)    reliance on any written representation or warranty made by the Borrower (or any employee or agent of the Servicer) in this Agreement or any other Transaction Document which shall have been false or incorrect in any respect when or as of the date so made;
(ii)    the failure by the Borrower to comply in any respect with any applicable law, rule or regulation, or the failure of any Financed Receivable to comply in any respect with any such applicable law, rule or regulation or the non-conformity of any Financed Receivable, Contract or related Equipment with any such Applicable Law and any failure by the Originator or any Affiliate thereof to perform its respective duties under the Contracts included as a part of the Collateral;
(iii)    the failure of the Borrower to vest and maintain vested in the Administrative Agent, for the benefit of the Secured Parties, a first priority perfected security interest in the Collateral, free and clear of any Adverse Claim; 
(iv)    the failure to file, or any delay in filing, financing statements or other similar instruments or documents under the UCC of any applicable jurisdiction or other Applicable Laws with respect to the Collateral, whether at the time of a Loan or at any subsequent time and as required by the Transaction Documents; 
(v)    any dispute, claim, offset or defense (other than the discharge in bankruptcy of the Obligor) of the Obligor to the payment of any Contract comprising a portion of the Collateral (including a defense based on the Contract not being a legal, valid and binding obligation of such Obligor enforceable against it in accordance with its terms); 

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(vi)    any products liability claim or personal injury or property damage suit or other similar or related claim or action of whatever sort arising out of or in connection with any Contract or the related Equipment or any other suit, claim or action by an unrelated third party of whatever sort arising out of or in connection with any Contract or the Related Equipment or relating to any of the Transaction Documents; 
(vii)    the failure by the Borrower to pay when due any Taxes for which the Borrower is liable, including sales, excise or personal property taxes payable in connection with the Collateral;
(viii)    any litigation, proceeding or investigation (a) before any Governmental Authority in respect of any Contract or related Equipment included as part of the Collateral or (b) relating to or arising from the Transaction Documents, the transactions contemplated hereby and thereby, the use of proceeds of the Loans by the Borrower or any other investigation, litigation or proceeding relating to the Borrower or the Servicer in which any Indemnified Person becomes involved as a result of any of the transactions contemplated by the Transaction Documents;
(ix)    any failure by the Borrower to give reasonably equivalent value to TFS in consideration for the transfer by TFS to the Borrower of the Collateral or any attempt by any Person to void or otherwise avoid such transfer under any statutory provision or common law or equitable action, including any provision of any law relating to bankruptcy, insolvency or reorganization or relief of debtors;
(x)    the failure of the Borrower to remit to the Servicer or the Administrative Agent, Collections remitted to the Borrower in accordance with the terms hereof or the commingling by the Borrower of any Collections with other funds;
(xi)    any and all civil penalties or fines assessed by the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) against, and all reasonable costs and expenses (including attorneys’ fees and disbursements) incurred in connection with the defense thereof by the Administrative Agent or any Lender as a result of funding all or any portion of the Loans or the acceptance of payments or of Collateral due under the Transaction Documents; or
(xii)    the failure of the Borrower to perform its duties or obligations in accordance with the terms of, or to comply with any term, provision or covenant contained in, this Agreement or any other Transaction Document.
provided, however, that no Indemnified Party shall be indemnified for Borrower Indemnified Losses to the extent (a) such Borrower Indemnified Losses resulted from the negligence or willful misconduct of any Indemnified Party, (b) due to the credit risk of the Obligor and for which reimbursement would constitute recourse to TFS or the market value risk of the Receivables, or (c) the Borrower or TFS is the plaintiff and an Indemnified Party is the defendant and the Borrower or TFS is the prevailing party in such legal action.

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(b)    If any action, suit or proceeding shall be brought against any Indemnified Party for which the Indemnified Party is or may be entitled to indemnification under Section 7.1(a), such Indemnified Party shall promptly notify the Borrower and the Borrower shall assume the defense thereof, including the retention of counsel and payment of all related fees and expenses.  Such Indemnified Party shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the Borrower only if (i) the Borrower has agreed in writing to pay such fees and expenses, (ii) the Borrower has unreasonably failed to assume the defense and employ counsel, or (iii) the named parties to any such action, suit or proceeding (including any impleaded party) include both such Indemnified Party and the Borrower and the Borrower shall have been advised by its counsel that representation of the Borrower and the Indemnified Party by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case the Borrower shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnified Party).  The Borrower shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, the Borrower agrees to indemnify and hold harmless any Indemnified Party from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment in accordance herewith.
(c)    Without limiting any other rights any such Person may have hereunder or under applicable law, TFS hereby indemnifies and holds harmless the Indemnified Parties from and against any and all damages, losses, claims, liabilities, penalties, and related costs and expenses (including reasonable attorneys’ fees and court costs) (all of the foregoing collectively, the “TFS Indemnified Losses”) at any time imposed on or incurred by any Indemnified Party arising out of or otherwise relating to:
(i)    reliance on any written representation or warranty made by TFS (or any employee or agent of TFS) in this Agreement or any other Transaction Document which shall have been false or incorrect in any respect when or as of the date so made;
(ii)    the failure by TFS to comply in any respect with any applicable law, rule or regulation, or the failure of any Financed Receivable to comply in any respect with any such applicable law, rule or regulation or the non-conformity of any Financed Receivable, Contract or related Equipment with any such Applicable Law and any failure by the Originator or any Affiliate thereof to perform its respective duties under the Contracts included as a part of the Collateral;
(iii)    any dispute, claim, offset or defense (other than the discharge in bankruptcy of the Obligor) of the Obligor to the payment of any Contract comprising a portion of the Collateral (including a defense based on the Contract not being a legal, valid and binding obligation of such Obligor enforceable against it in accordance with its terms); 
(iv)    the failure by the Servicer or TFS to pay when due any Taxes for which the Servicer or TFS is liable, including sales, excise or personal property taxes payable in connection with the Collateral;

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(v)    any litigation, proceeding or investigation (a) before any Governmental Authority in respect of any Contract or related Equipment included as part of the Collateral or (b) relating to or arising from the Transaction Documents, the transactions contemplated hereby and thereby or any other investigation, litigation or proceeding relating to the Borrower or the Servicer in which any Indemnified Person becomes involved as a result of any of the transactions contemplated by the Transaction Documents;
(vi)    any and all civil penalties or fines assessed by OFAC against, and all reasonable costs and expenses (including attorneys’ fees and disbursements) incurred in connection with the defense thereof by the Administrative Agent or any Lender as a result of funding all or any portion of the Loans or the acceptance of payments or of Collateral due under the Transaction Documents;
(vii)    any products liability claim or personal injury or property damage suit or other similar or related claim or action of whatever sort, arising out of or in connection with any Contract or the Related Equipment or any other suit, claim or action by an unrelated third party of whatever sort relating to any Contract or the Related Equipment or relating to any of the Transaction Documents; 
(viii)    the failure of the Servicer to remit Collections in accordance with the terms hereof or the commingling of Collections; or
(ix)    the failure of TFS to perform its respective duties or obligations in accordance with the terms of, or to comply with any term, provision or covenant contained in, this Agreement or any other Transaction Document;
provided, however, that no Indemnified Party shall be indemnified for TFS Indemnified Losses to the extent (a) such TFS Indemnified Losses resulted from the negligence or willful misconduct of any Indemnified Party, (b) such TFS Indemnified Losses were due to the credit risk of the Obligor and for which reimbursement would constitute recourse to TFS or the market value risk of the Receivables, or (c) the Borrower or TFS is the plaintiff and an Indemnified Party is the defendant and the Borrower or TFS is the prevailing party in such legal action; provided, further, that if the Servicer shall be replaced in accordance with Section 3.2, then the Servicer shall have no further liability under this Section 7.1 except for TFS Indemnified Losses incurred or arising from events that occurred before such replacement.
(d)    If any action, suit or proceeding shall be brought against any Indemnified Party for which the Indemnified Party is or may be entitled to indemnification under Section 7.1(c), such Indemnified Party shall promptly notify TFS, and TFS shall assume the defense thereof, including the retention of counsel and payment of all related fees and expenses.  Such Indemnified Party shall have the right to employ separate counsel in any such action, suit or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of TFS only if (i) TFS has agreed in writing to pay such fees and expenses, (ii) TFS has unreasonably failed to assume the defense and employ counsel, or (iii) the named parties to any such action, suit or proceeding (including any impleaded party) include both such Indemnified Party and TFS, and TFS shall have been advised by its counsel that representation of TFS and the Indemnified Party 

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by the same counsel would be inappropriate under applicable standards of professional conduct (whether or not such representation by the same counsel has been proposed) due to actual or potential differing interests between them (in which case TFS shall not have the right to assume the defense of such action, suit or proceeding on behalf of such Indemnified Party).  TFS shall not be liable for any settlement of any such action, suit or proceeding effected without its written consent, but if settled with such written consent, TFS agrees to indemnify and hold harmless any Indemnified Party from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment in accordance herewith.
Section 7.2    Increased Cost and Reduced Return.  If either (i) the adoption of any applicable law, rule or regulation or any change therein, or any written change in the interpretation or administration thereof by any Governmental Authority or any written change in applicable financial accounting standards, including, without limitation, with respect to all taxes other than taxes based on net income or capital (a “Regulatory Change”), which adoption or change occurs after the date of this Agreement, or (ii) compliance by any Funding Party with any law, guideline, rule, regulation, directive or request from any central bank or other Governmental Authority (whether or not having the force of law), including compliance by a Funding Party with any request or directive regarding capital adequacy (including the Dodd-Frank Act, Basel II, Basel III or the Risk-Based Capital Requirements), which is adopted, enacted, implemented or issued, or with respect to which any interpretation, rule, guidance or directive is issued or changed,  after the date of this Agreement, (a) imposes or modifies any reserve, assessment, insurance charge, special deposit or similar requirement against assets of, deposits with or for the account of, or any credit extended by, any Funding Party in respect of this Agreement or (b) has the effect of reducing a Funding Party’s rate of return in respect of this Agreement on such Funding Party’s capital to a level below that which such Funding Party would have achieved but for such adoption or change, and the result of any of the foregoing is to impose a cost on, or increase the cost to, any Funding Party of its commitment under any Funding Document or of purchasing, maintaining or funding any interest acquired under any Funding Document, then, upon written demand by such Funding Party with such supporting information as the Borrower may reasonably request, the Borrower shall pay to the Administrative Agent for the account of such Funding Party such additional amounts as will ensure that the net amount actually received by such Funding Party will compensate such Funding Party for such increased cost; provided, that the Administrative Agent shall cause each Funding Party to endeavor in good faith to minimize any increased costs payable pursuant to this Section.
Section 7.3    IRS Forms.  If any Lender is not organized under the laws of the USA, then before the first date on which any amount is payable hereunder for the account of each such Lender (or any successor or assignee of such Lender in accordance with Section 9.4), the Administrative Agent (on behalf of the Lenders) shall deliver to the Borrower and the Administrative Agent each two (2) duly completed copies of United States Internal Revenue Service Form W-8BEN, W-8ECI or W-9 (or successor applicable form) certifying that such Lender (or any successor or assignee of such Lender in accordance with Section 9.4) is entitled to receive payments hereunder without deduction or withholding of any United States federal income taxes which, if applicable, shall be delivered as attachments to the Administrative Agent’s duly completed United States Internal Revenue Service Form W-8IMY.  The Administrative Agent on behalf of the Lenders shall replace 

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or update such forms when necessary to maintain any applicable exemption and as requested by the Borrower.
ARTICLE VIII 
CONDITIONS PRECEDENT
Section 8.1    Conditions to Initial Loan.  The making of the initial Loan on the Closing Date shall be subject to the condition that the Administrative Agent on behalf of each Lender shall have received all of the following documents in form and substance reasonably acceptable to the Administrative Agent:
(a)    A certificate of the Secretary of each of the Borrower and TFS certifying (i) the resolutions of the Borrower’s or TFS’s, as the case may be, board of directors approving the Transaction Documents to which it is a party, (ii) the name, signature and authority of each officer who executes on the Borrower’s or TFS’s behalf a Transaction Document, (iii) the Borrower’s and TFS’s certificate of formation or articles of incorporation, as applicable, and (iv) a copy of the Borrower’s and TFS’s by-laws or other governing instrument.
(b)    Good standing certificates issued as of a recent date by the applicable office of the respective jurisdictions where the Borrower and TFS are organized.
(c)    All UCC financing statements required to perfect the Administrative Agent’s first priority interest in the Collateral under the UCC in all appropriate jurisdictions.
(d)    UCC search reports from all jurisdictions the Administrative Agent reasonably requests.
(e)    Executed copies of each Transaction Document.
(f)    Favorable opinions of counsel (which, in the case of clause (i) below only, may be in-house counsel) to the Borrower and TFS covering (i) due authorization, execution and delivery of the Transaction Documents to which each of the Borrower and TFS is a party and other standard corporate opinions, (ii) customary true sale and nonconsolidation matters, and (iii) the Administrative Agent’s first priority perfected security interest in the Collateral under the UCC, all of which will be subject to standard exceptions and qualifications.
(g)    Evidence of payment by the Borrower and the Servicer of all fees, costs and expenses under the Transaction Documents to the extent then due and payable on the Closing Date.

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Section 8.2    Conditions to Each Loan.  The making of any Loan is subject to the conditions (and each Loan shall evidence the Borrower’s representation and warranty that clauses (a)-(d) of this Section 8.2 have been satisfied) that:
(a)    the Commitment Termination Date has not occurred;
(b)    no Early Amortization Event, Servicer Replacement Event or Event of Default, or event that with the giving of notice or lapse of time, or both, would constitute an Early Amortization Event, Servicer Replacement Event or Event of Default has occurred and is continuing;
(c)    (i) prior to the occurrence of a Canadian Amortization Event, after giving effect to the application of the proceeds of such Loan, the outstanding Aggregate Loan Amount would not exceed the lesser of the Facility Limit and the Targeted Loan Amount and (ii) following the occurrence of a Canadian Amortization Event, after giving effect to the application of the proceeds of such Loan, the outstanding Aggregate Loan Amount would not exceed the lesser of the Facility Limit and the U.S. Targeted Loan Amount; 
(d)    the representations and warranties in Section 4.1 are true and correct in all material respects on and as of such date (except to the extent such representations and warranties relate solely to an earlier date and then as of such earlier date); and
(e)    the Servicer shall have delivered to the Administrative Agent on or prior to the Borrowing Date, in form and substance reasonably satisfactory to the Administrative Agent, a completed Borrower Report and the other items required under Section 1.1(b).
ARTICLE IX 
MISCELLANEOUS
Section 9.1    Notices.  Unless otherwise specified, all notices and other communications hereunder shall be in writing (including by telecopier or other facsimile communication), given to the appropriate Person at its address or telecopy number set forth on the signature pages hereof or at such other address or telecopy number as such Person may specify, and effective when received at the address specified by such Person. 
Section 9.2    Amendments.  No amendment to or waiver of any provision of this Agreement shall be effective unless it is in writing and signed by the Administrative Agent, and, in the case of any amendment, by the Borrower and the Servicer and then such amendment or waiver shall be effective only in the specific instance and for the specific purpose for which it was given.
Section 9.3    Waivers.  No failure or delay of the Administrative Agent or any Lender in exercising any power, right, privilege or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right, privilege or remedy preclude any other or further exercise thereof or the exercise of any other power, right, privilege or remedy.  Any waiver hereof shall be effective only in the specific instance and for the specific purpose for which such waiver was given. After any waiver, unless otherwise mutually agreed, the Borrower, the Originator, 

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the Servicer, the Administrative Agent and each Lender shall be restored to their former position and rights and any Early Amortization Event, Event of Default or Servicer Replacement Event, as the case may be, waived shall be deemed to be cured and not continuing, but no such waiver shall extend to (or impair any right consequent upon) any subsequent or other Early Amortization Event, Event of Default or Servicer Replacement Event, as the case may be.
Section 9.4    Successors and Assigns; Participations; Assignments; Addition of New Groups.
(a)    Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  Except as otherwise provided herein, the Borrower may not assign or transfer any of its rights or delegate any of its duties without the prior consent of the Administrative Agent.  No Lender may assign or transfer any of its rights or delegate any of its duties hereunder (including, without limitation, the Loan) except to an Eligible Assignee pursuant to a duly executed assignment delivered to the Administrative Agent and the Borrower.  An “Eligible Assignee” means (i) in the case of a Conduit Lender, another asset-backed commercial paper conduit administered or managed by the Administrative Agent or an Affiliate thereof or to which the Administrative Agent or an Affiliate thereof provides a Liquidity Facility or Credit Facility, in each case which is not rated lower than or is not economically less favorable than the initial Conduit Lender, or any other Person approved by the Borrower in writing (such approval not to be unreasonably withheld or delayed), and (ii) in the case of the Administrative Agent or the Committed Lender, any Affiliate thereof and any Person that was approved by the Borrower prior to the assignment; provided, however, that during the continuation of an Early Amortization Event or Event of Default, the approval of the Borrower shall not be required under any of the foregoing clauses (i) and (ii); provided further, that the Administrative Agent shall, in any event, provide the Borrower and Servicer with written notice of any assignment under this Section 9.4(a).  Nothing contained herein shall limit the ability of the Conduit Lender or Committed Lender to assign its rights under the Transaction Documents to a collateral agent, acting on behalf of the Conduit Lender and/or Committed Lender, in connection with a pledge or grant of a security interest by such Person for its own obligations.  Notwithstanding anything herein to the contrary, the Conduit Lender may, at any time and without any requirement to obtain the consent of the Borrower or the Servicer, but with written notice to the Borrower and the Servicer, assign all or a portion of its interest in the Loan Amount or its rights under this Agreement to the Committed Lender under a Credit Facility or a Liquidity Facility.
(b)    Participations.  Any Lender may (with the written consent of the Borrower), sell to one or more Persons (each a “Participant”) participating interests in the interests of its Loans hereunder.  Such Lender shall remain solely responsible for performing its obligations hereunder, and the Borrower shall continue to deal solely and directly with such Lender (as applicable) and the Administrative Agent in connection with the rights and obligations of such Lender (as applicable) hereunder.  Each Participant shall be entitled to the benefits of Article VII to the same extent as if it were a Lender (as applicable) hereunder.  Any Lender may enter credit default swaps or other hedging transactions, provided that no counterparty to such arrangements shall have the right to restrict such Lender from entering into amendments or modifications of this Agreement without the consent of any other Person.

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(c)    Federal Reserve.  Any Funding Party may at any time pledge or grant a security interest in all or any portion of its rights (including, without limitation, rights to payment of the Loan Amount and Interest) under this Agreement to secure obligations of such Funding Party to a Federal Reserve Bank, the Federal Deposit Insurance Corporation or the U.S. Treasury, and this Section 9.4 shall not apply to any such pledge or grant of a security interest; provided, however, that no such pledge or grant of a security interest shall release a Funding Party from any of its obligations hereunder, or substitute any such pledgee or grantee for such Funding Party as a party hereto.
Section 9.5    Intended Tax Characterization.  It is the intention of the parties hereto and to the other Transaction Documents that, for the purposes of all U.S. federal, state and local income and franchise taxes, the transactions contemplated hereby shall be treated as loans by the applicable Lenders to the Borrower that are secured by the Financed Receivables (the “Intended Tax Characterization”).  The parties hereto agree to report and otherwise to act for the purposes of all U.S. federal, state and local income and franchise taxes in a manner consistent with the Intended Tax Characterization.
Section 9.6    Confidentiality.  Each of the Lenders, and the Administrative Agent covenants and agrees, on behalf of itself and its Affiliates, to hold the Transaction Documents and other nonpublic information regarding the Borrower, the Originator, their Affiliates, and their respective businesses (collectively, “Information”) in confidence, and agrees not to use and not to disclose any of the contents of, provide any Person with copies of, or use for any purpose not related to the Loans hereunder, any Information other than disclosure to (a) any Affiliate of the Administrative Agent or any officers, directors, members, managers, employees or outside accountants, auditors or attorneys of any Lender or the Administrative Agent with a need to know such information in connection with the Loans, (b) any prospective or actual Eligible Assignee or Participant who signs a confidentiality agreement containing the provisions of this Section under which the Borrower, the Servicer and their Affiliates are third party beneficiaries, (c) any rating agency, surety, guarantor, first loss provider or credit or liquidity enhancer to any Lender, (d) any Lender’s Program Administrators, issuing agents or depositories, or commercial paper dealers, and (e) Governmental Authorities with appropriate jurisdiction.  Notwithstanding the foregoing, the Administrative Agent will not provide access to any Information to any Person associated with any business of the Administrative Agent or its Affiliates which competes with the Originator’s equipment finance business.  Notwithstanding the above stated obligations, no Person will be liable for disclosure or use of Information which (i) was required by law, including pursuant to a subpoena or other legal process, (ii) was in such Person’s possession or known to such Person prior to receipt in connection with the Loans and not subject to a confidentiality agreement, or (iii) is or becomes known to the public (without breach of any obligations hereunder).  Notwithstanding any provision hereof to the contrary, each of each Lender and the Administrative Agent covenants and agrees that it shall not use the name of the Originator or any Affiliate of the Originator, or any trademarks, trade names or service marks of the Originator or any Affiliate of the Originator, or quote the opinion of any employee of the Originator or any Affiliate of the Originator, in any advertising or marketing material (including press releases) without first obtaining the prior written consent of an officer of the Originator or such Affiliate, as applicable.

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Section 9.7    Agreement Not to Petition; Excess Funds.  
(a)    Each party hereto agrees, for the benefit of the holders of the privately or publicly placed indebtedness for borrowed money on behalf of the Conduit Lender, not, prior to the date which is one year and one day after the payment in full of all such indebtedness, to acquiesce, petition or otherwise, directly or indirectly, invoke, or cause such Conduit Lender to invoke, the process of any Governmental Authority for the purpose of (a) commencing or sustaining a case against such Conduit Lender under any federal or state bankruptcy, insolvency or similar law (including the Federal Bankruptcy Code), (b) appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official for such Conduit Lender, or any substantial part of its property, or (c) ordering the winding up or liquidation of the affairs of such Conduit Lender. 
(b)    The Conduit Lender shall be required to make payment of the amounts (if any) required to be paid by it pursuant hereto only if such Conduit Lender has Excess Funds (as defined below).  If such Conduit Lender does not have Excess Funds, the excess of the amount due hereunder over the amount paid shall not constitute a “claim” (as defined in Section 101(5) of the Federal Bankruptcy Code) against such Conduit Lender until such time as such Conduit Lender has Excess Funds.  If such Conduit Lender does not have sufficient Excess Funds to make any payment due hereunder, then such Conduit Lender may pay a lesser amount and make additional payments that in the aggregate equal the amount of deficiency as soon as possible thereafter.  The term “Excess Funds” means the excess of (a) the aggregate projected value of the Conduit Lender’s assets and other property (including cash and cash equivalents), over (b) the sum of (i) the sum of all scheduled payments of principal, interest and other amounts payable on publicly or privately placed indebtedness of such Conduit Lender for borrowed money, plus (ii) the sum of all other liabilities, indebtedness and other obligations of such Conduit Lender for borrowed money or owed to any credit or liquidity provider, together with all unpaid interest then accrued thereon, plus (iii) all taxes payable by such Conduit Lender to the Internal Revenue Service, plus (iv) all other indebtedness, liabilities and obligations of such Conduit Lender then due and payable.
(c)    With respect to each Bankruptcy Remote Party, each party hereto agrees that, prior to the date which is one year and one day after payment in full of all obligations under this Agreement (i) no party hereto shall authorize such Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to such Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect in any jurisdiction or seeking the appointment of an administrator, a trustee, receiver, liquidator, custodian or other similar official with respect to such Bankruptcy Remote Party or any substantial part of its property or to consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against such Bankruptcy Remote Party, or to make a general assignment for the benefit of any party hereto or any other creditor of such Bankruptcy Remote Party, and (ii) none of the parties hereto shall commence or join with any other Person in commencing 

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any proceeding against such Bankruptcy Remote Party under any bankruptcy, reorganization, liquidation or insolvency law or statute now or hereafter in effect in any jurisdiction.  Each of the parties hereto agrees that, prior to the date which is one year and one day after the payment in full of all obligations under this Agreement, it will not institute against, or join any other Person in instituting against, any Bankruptcy Remote Party an action in bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or similar proceeding under the laws of the USA or any State of the USA.
Section 9.8    No Recourse.  The obligations of each Conduit Lender, their respective management companies, administrators and referral agents (each a “Program Administrator”), each other Lender, the Administrative Agent, the Borrower, the Originator and the Servicer and of any other party hereto under any Transaction Document or other document to which a Program Administrator or other Person is a party are solely the corporate or limited liability company obligations of such Person and no recourse shall be had for such obligations against any Affiliate, director, officer, member, manager, employee, attorney or agent of any such Person.
Section 9.9    No Right of Set-off.  Neither the Administrative Agent, the Lenders nor any of their respective Affiliates may set-off, appropriate or apply any deposits of or other amounts owing to the Borrower, the Servicer or any of their Affiliates against amounts owed by the Borrower or the Servicer hereunder.
Section 9.10    Headings; Counterparts.  Article and Section headings in this Agreement are for reference only and shall not affect the construction of this Agreement.  This Agreement may be executed by different parties on any number of counterparts, each of which shall constitute an original and all of which, taken together, shall constitute one and the same agreement.
Section 9.11    Cumulative Rights and Severability.  All rights and remedies of the Lenders, the Administrative Agent, the Borrower, the Originator and the Servicer hereunder shall be cumulative and non-exclusive of any rights or remedies such Persons have under law or otherwise.  Any provision hereof that is prohibited or unenforceable in any jurisdiction shall, in such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and without affecting such provision in any other jurisdiction.
Section 9.12    GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF NEW YORK.
Section 9.13    WAIVER OF TRIAL BY JURY.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF, OR IN CONNECTION WITH, ANY TRANSACTION DOCUMENT OR ANY MATTER ARISING THEREUNDER.
Section 9.14    Costs and Expenses.  The Borrower shall pay to the Administrative Agent and the Lenders, in a timely manner after demand, all reasonable costs and out-of-pocket expenses in connection with the review, negotiation, execution, delivery and administration of this Agreement, 

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the transactions contemplated hereby and the other documents to be delivered hereunder (including any amendments, restatements, or other modifications of the foregoing), reasonable fees of the ratings agencies and the reasonable fees and out-of-pocket expenses of Sidley Austin LLP, counsel for the Lenders and the Administrative Agent with respect thereto (up to $[●] with respect to the fees and expenses of Sidley Austin LLP incurred as of the Closing Date in connection with the review, negotiation, execution and delivery of this Agreement and the other Transaction Documents).  The Borrower shall pay to the Administrative Agent and each Lender, in a timely manner after demand, any and all reasonable costs and expenses of the Administrative Agent and the Lenders, if any, including reasonable counsel fees and expenses in connection with the enforcement of this Agreement and the other documents delivered hereunder and in connection with any restructuring or workout of this Agreement or such documents, or the administration of this Agreement following an Early Amortization Event or Event of Default.
Section 9.15    Submission to Jurisdiction.  EACH PARTY HERETO HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS AGREEMENT.  EACH PARTY HERETO FURTHER IRREVOCABLY CONSENTS, TO THE FULLEST EXTENT PERMITTED BY LAW, TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK.  EACH PARTY HERETO HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  TO THE EXTENT THAT ANY PARTY HERETO HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT BEFORE JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, SUCH PARTY HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY TO THE FULLEST EXTENT PERMITTED BY LAW IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT.
Section 9.16    Limitation of Liability.  No claim may be made by (i) the Borrower, the Originator or the Servicer or any other Person against any Lender or the Administrative Agent or their respective Affiliates, directors, officers, employees, attorneys or agents or (ii) any Lender or the Administrative Agent or any other Person against the Borrower, the Originator or the Servicer or their respective Affiliates, directors, officers, employees, attorneys or agents for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement, or any act, omission or event occurring in connection therewith; and each party hereto hereby waives, releases and agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

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Section 9.17    Reinstatement.  The Borrower and the Servicer each agrees that the Loan Amount shall be automatically reinstated if and to the extent that for any reason payment by or on behalf of the Borrower is rescinded or must be otherwise restored by any Lender, whether as a result of any proceedings in bankruptcy or reorganization or otherwise.
Section 9.18    Entire Agreement.  The Transaction Documents constitute the entire understanding of the parties thereto concerning the subject matter thereof.  Any previous or contemporaneous agreements, whether written or oral, concerning such matters are superseded thereby.
Section 9.19    No Third Party Beneficiaries; Hedge Counterparties.  Except as provided in the next sentence, this Agreement is not intended to confer any benefit upon, to give any rights or remedies whatsoever to, or to be enforceable by, any Person other than the parties hereto.  The parties hereto expressly intend the provisions of this Agreement to be enforceable by each Hedge Counterparty as a third party beneficiary of this Agreement.
Section 9.20    Survival.  The provisions of Sections 7.1, 7.2, 9.6, 9.7, 9.8, 9.13, 9.14, 9.15, 9.16, 9.17 and this 9.20 shall survive the termination of this Agreement.
ARTICLE X 
THE ADMINISTRATIVE AGENT
Section 10.1    Authorization and Action of Administrative Agent.  By its execution hereof, in the case of each Lender, and by accepting the benefits hereof, in the case of each Hedge Counterparty and each Person providing a Liquidity Facility or Credit Facility to any Conduit Lender, each such party hereby designates and appoints Credit Suisse AG, New York Branch as the Administrative Agent to take such action as agent on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof, together with such powers as are reasonably incidental thereto.  The Administrative Agent reserves the right, in its sole discretion, to take any actions and exercise any rights or remedies under this Agreement or any other Transaction Document and any related agreements and documents.  The Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein or in any other Transaction Document, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities on the part of the Administrative Agent shall be read into this Agreement or any other Transaction Document or otherwise exist for the Administrative Agent.  Except for actions which the Administrative Agent is expressly required to take pursuant to this Agreement, the Administrative Agent shall not be required to take any action which exposes the Administrative Agent to personal liability or which is contrary to applicable law unless the Administrative Agent shall receive further assurances to its satisfaction from the Lenders of the indemnification obligations under Section 10.5 against any and all liability and expense which may be incurred in taking or continuing to take such action.
Section 10.2    Agency Termination.  Subject to Section 10.6, the appointment and authority of the Administrative Agent hereunder shall terminate upon the later of (a) the payment to (i) each Lender and Hedge Counterparty of all amounts owing to such parties under the Transaction 

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Documents and (ii) the Administrative Agent of all amounts due under the Transaction Documents and (b) the occurrence of the Commitment Termination Date.
Section 10.3    Administrative Agents’ Reliance, Etc.  Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be liable to any Lender for any action taken or omitted to be taken by the Administrative Agent under or in connection with this Agreement or any related agreement or document, except for its or their own gross negligence or willful misconduct.  Without limiting the foregoing, the Administrative Agent:  (i) may consult with legal counsel, independent public accountants and other experts selected by it (which may be counsel for the Borrower, the Servicer or the Originator) and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (ii) makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations made by the Borrower, the Originator or the Servicer in connection with this Agreement or any other Transaction Document; (iii) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement or any other Transaction Document on the part of the Borrower, the Originator or the Servicer or to inspect the property (including the books and records) of the Borrower, the Originator or the Servicer; (iv) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other instrument or document furnished pursuant hereto; and (v) shall incur no liability under or in respect of this Agreement or any other Transaction Document by acting upon any notice (including notice by telephone), consent, certificate or other instrument or writing (which may be by telex) believed by it in good faith to be genuine and signed or sent by the proper party or parties.  The Administrative Agent shall not be deemed to have knowledge of any Event of Default, Early Amortization Event or Servicer Replacement Event unless the Administrative Agent has received actual notice thereof.  
Section 10.4    Administrative Agent and Affiliates.  The Administrative Agent and its Affiliates may generally engage in any kind of business with the Borrower, the Originator or the Servicer, any of their respective Affiliates and any Person who may do business with or own securities of the Borrower, the Originator, the Servicer or any of their respective Affiliates, without any duty to account therefor to the Administrative Agent or the Lenders and as if it were not the Administrative Agent and without any duty to account therefor to any Lender.
Section 10.5    Indemnification.  Each Committed Lender shall indemnify and hold harmless the Administrative Agent and its officers, directors, employees, representatives and agents (to the extent not reimbursed by the Borrower, the Servicer or the Originator and without limiting the obligation of the Borrower, the Servicer or the Originator to do so), from and against any and all liabilities, obligations, losses, damages, penalties, judgments, settlements, costs, expenses and disbursements of any kind whatsoever (including in connection with any investigative or threatened proceeding, whether or not the Administrative Agent or such Person is designated a party thereto) that may at any time be imposed on, incurred by or asserted against the Administrative Agent for such Person as a result of, or related to, any of the transactions contemplated by the Transaction Documents or the execution, delivery or performance of the Transaction Documents or any other document furnished in connection therewith (but excluding any such liabilities, obligations, losses, 

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damages, penalties, judgments, settlements, costs, expenses or disbursements resulting solely from the gross negligence or willful misconduct of the Administrative Agent or such Person as finally determined by a court of competent jurisdiction).
Section 10.6    Successor Administrative Agent.  The Administrative Agent may, upon at least five (5) days notice to the Borrower and each Lender, resign as Administrative Agent.  Such resignation shall not become effective until a successor agent reasonably acceptable to the Borrower is appointed by the Lenders and has accepted such appointment.  Upon such acceptance of its appointment as Administrative Agent hereunder by a successor Administrative Agent, such successor Administrative Agent shall succeed to and become vested with all the rights and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations under the Transaction Documents.
Section 10.7    Rating.  The Administrative Agent may, at its own expense, hire one or more nationally recognized statistical rating organizations to provide a rating on the Loans under this Agreement or any Liquidity Facility related thereto.  If such a rating is obtained, TFS and the Borrower shall, at the expense of the Administrative Agent (which expense shall not include any internal allocation of overhead expenses), provide reasonable assistance to the Administrative Agent in connection therewith, however, the terms of this Agreement or the Loan will not be disclosed publicly (e.g., no pre-sale or Rule 17-7 reports will be prepared), and any subsequent downgrade will not trigger any Early Amortization Event, Event of Default or otherwise result in the breach of any representation, warranty or covenant of Borrower under this Agreement.
Section 10.8    Failures by CS Entity as Hedge Counterparty.  To the extent the Borrower has insufficient funds to make any payment required to be made by the Borrower under any Transaction Document solely as a result of any failure by any CS Entity (or its successor as a result of any merger or other business combination) to make any payment required to be made by such CS Entity under a Hedge Agreement, such insufficiency shall not result in any Early Amortization Event, Event of Default or Servicer Replacement Event.
[Remainder of Page Intentionally Left Blank]

40

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their duly authorized officers as of the date hereof.
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, 
as Committed Lender 

By:_______________________________ 
Name: 
Title:
By:_______________________________ 
Name: 
Title:

Credit Suisse AG 
Securitized Products – Asset Finance 
11 Madison Avenue 
New York, New York 10010 
Attention: Oliver Nisenson 
Telephone: (212) 325-6688 
Telecopy: (212) 322-1016 
Email1: oliver.nisenson@credit-suisse.com 
Email2: list.afconduitreports@credit-suisse.com 
Email3: abcp.monitoring@credit-suisse.com 

S-1    TFS Funding I, LLC 
Loan and Security Agreement

INSTITUTIONAL SECURED FUNDING (JERSEY) LIMITED, 
as a Conduit Lender

By:________________________________ 
Name: 
Title:
Institutional Secured Funding (Jersey) Limited 
Ogier House 
The Esplanade 
St. Helier 
Jersey JE4 9WG 
Attention: Emma Laffoley 
Telephone: +44 1534 753 858 
Telecopy: +44 1534 504 444
With a copy to:
Cantor Fitzgerald Investment Advisors, L.P., 
as Referral Agent for Institutional Secured Funding (Jersey) Limited 
110 East 59th Street 
4th Floor, Short Term Interest Rate Products 
New York, New York 10022 
Attention: Richard Goldthorpe 
Telephone: (212) 829-5435 
Telecopy: (212) 829-4866 
Email: rgoldthorpe@cantor.com
And also to:
Attention: Amrut Bharambe 
Telephone: (212) 829-5435 
Telecopy: (212) 829-4866 
Email: abharambe@cantor.com

S-2    TFS Funding I, LLC 
Loan and Security Agreement

CREDIT SUISSE AG, NEW YORK BRANCH, 
as Administrative Agent 

By:_______________________________ 
Name: 
Title:
By:_______________________________ 
Name: 
Title:

Credit Suisse AG 
Securitized Products – Asset Finance 
11 Madison Avenue 
New York, New York 10010 
Attention: Oliver Nisenson 
Telephone: (212) 325-6688 
Telecopy: (212) 322-1016 
Email1: oliver.nisenson@credit-suisse.com 
Email2: list.afconduitreports@credit-suisse.com 
Email3: abcp.monitoring@credit-suisse.com 

S-3    TFS Funding I, LLC 
Loan and Security Agreement

TFS FUNDING I, LLC 
as Borrower
By:_________________________________ 
Name:     
Title:    
200 Nyala Farm Road 
Westport, Connecticut 06880 
Attention:  General Counsel 
Telephone:  (203) 222-5950 
Fax:  (203) 341-6860 
Email:  eric.cohen@terex.com

TEREX FINANCIAL SERVICES, INC. 
as Servicer
By:_________________________________ 
Name:     
Title:    
200 Nyala Farm Road 
Westport, Connecticut 06880 
Attention:  General Counsel 
Telephone:  (203) 222-5950 
Fax:  (203) 341-6860 
Email:  eric.cohen@terex.com

S-4    TFS Funding I, LLC 
Loan and Security Agreement

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

SCHEDULE I
DEFINITIONS
The following terms have the meanings set forth, or referred to, below:
“Addition Notice” has the meaning specified in Section 1.1(c).
“Adjusted Included Balance” means, on any day, an amount equal to (a) the Included Balance on such day minus (b) the Excess Concentration Amount on such day, if any.
“Adjusted Residual Value” means, for any item of Equipment subject to a Lease Contract, as of the close of business on the last day of any Monthly Period or the Cut-Off Date for such Lease Contract, the excess, if any, of (a) the Booked Residual Value for such item of Equipment over (b) the portion of the Extended Lease Payments, if any, received by the Servicer with respect to such Lease Contract as of such date which have been applied by the Servicer to reduce the value of residual interest in such Equipment in accordance with its Customary Servicing Practices.
“Administrative Agent” means Credit Suisse AG, New York Branch, in its capacity as contractual representative for the Lenders, and any successor thereto appointed pursuant to Section 10.6.
“Advance Rate” means, on any date, [●]%.
“Adverse Claim” means, for any asset or property of a Person, a lien, security interest, mortgage, pledge or encumbrance, in, of or on such asset or property in favor of any other Person, except any Permitted Lien.
“Affiliate” means, for any specified Person, any other Person which, directly or indirectly, controls, is controlled by, or is under common control with such specified Person and “Affiliated” has a meaning correlative to the foregoing.  For purposes of this definition, “control” means the power, directly or indirectly, to cause the direction of the management and policies of a Person.
“Aggregate Loan Amount” means, at any time, the sum of the Loan Amounts for all Lenders at such time.
“Available Funds” means, (A) with respect to any Settlement Date prior to the occurrence and continuance of a Canadian Amortization Event, (i) the Collections received during the preceding Monthly Period, (ii) any net amounts paid with respect to such Settlement Date by the Hedge Counterparty to the Borrower under any Hedge Agreement and (iii) any amounts paid with respect to such Settlement Date by the Originator to the Borrower in accordance with Section 2.8 of the Sale Agreement, or (B) with respect to any Settlement Date following the occurrence and continuance of a Canadian Amortization Event, the amounts described in clause (A) above, excluding any Canadian Available Funds.
“Average Default Ratio” means, as of any date commencing with the third Settlement Date, the average of the Eligible Default Ratios, if any, for the three preceding Monthly Periods.

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“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Average Delinquency Ratio” means, as of any date commencing with the third Settlement Date, the average of the Eligible Delinquency Ratios, if any, for the three preceding Monthly Periods.
“Average Discounted Receivable Balance” means, as of any date of determination (A) the sum of the Discounted Receivables Balances, as of the Cut-Off Date, of all Financed Receivables on such date, divided by (B) the total number of Financed Receivables on such date.  
“Back-Up Servicer” has the meaning assigned to such term in Section 3.1(b).
“Back-Up Servicer’s Fee” means the fee payable to the Back-Up Servicer pursuant to the Back-Up Servicing Agreement.
“Back-Up Servicing Agreement” means that certain servicing agreement to be entered into by and among the Borrower, the Servicer and the Back-up Servicer, which shall be in form and substance reasonably acceptable to the Administrative Agent. 
“Bankruptcy Event” means, with respect to any Person, that such Person makes a general assignment for the benefit of creditors or any proceeding is instituted by or against such Person seeking to adjudicate it bankrupt or insolvent, or seeking the liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors and, if instituted against such Person, such proceeding remains undismissed and unstayed for a period of 90 days  (or, in the case of the Borrower, 60 days) or an order for relief is entered, or seeking the entry of an order for relief or the appointment of a receiver, trustee or other similar official for it or any substantial part of its property and, in the case of any proceeding instituted against such Person, such proceeding remains unstayed for more than 90 days (or, in the case of the Borrower, 60 days) or an order for relief is entered.
“Bankruptcy Remote Party” means the Borrower or Conduit Lender.
“Basel II” means the second Basel Accord issued by the Basel Committee on Banking  Supervision. 
“Basel III” means the third Basel Accord issued by the Basel Committee on Banking  Supervision. 
“Booked Residual Value” means, for any item of Equipment subject to a Lease Contract, the estimated fair value of the residual interest in such Equipment on the Scheduled End Date for such Lease Contract established at the time of the origination or extension of such Lease Contract and set forth in the books and records of the Servicer.
“Borrower” means TFS Funding I, LLC, a Delaware limited liability company.
“Borrower Indemnified Losses” is defined in Section 7.1(a).
“Borrower Obligations” is defined in Section 2.1.

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“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Borrower’s Account” means the account specified by the Servicer on behalf of the Borrower to the Administrative Agent prior to the first Loan hereunder or such other account designated by the Servicer on behalf of the Borrower to the Administrative Agent.
“Borrowing Date” means the Business Day specified pursuant to an Addition Notice or Periodic Report as the date for funding an additional Loan in respect of Receivables to be added to the Financed Receivables pursuant to Section 1.1(c).
“Business Day” means any day other than (a) a Saturday, Sunday or other day on which banks in the states of New York, or Connecticut are authorized or required to close and (b) a holiday on the Federal Reserve calendar.
“Canadian Amortization Event” means, at any time the aggregate Discounted Balance of Canadian Receivables exceeds [●]% of the Included Balance, failure to maintain any of the following ratios (in each case calculated solely with reference to the Canadian Receivables):
(i)    Average Delinquency Ratio of less than [●]%;  
(ii)    Average Default Ratio of less than [●]%; or
(iii)    Residual Loss Ratio of less than [●]%.
“Canadian Available Funds” means, with respect to any Settlement Date following the occurrence and continuance of a Canadian Amortization Event, (i) the Collections received during the preceding Monthly Period solely with respect to Canadian Receivables, and (ii) any amounts paid with respect to such Settlement Date by the Originator to the Borrower in accordance with Section 2.8 of the Sale Agreement solely with respect to Canadian Receivables.
“Canadian Receivables” has the meaning set forth in Section 5.4.
“Change of Control” means, with respect to any Person, at any time (A) there is an acquisition or a series of acquisitions within six (6) months of each other by any other entity, individual or group (within the meaning of Sections 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial ownership (as defined in Rule 13d-3 promulgated under the Exchange Act) of more than thirty-five percent (35%) of the issued and outstanding common stock and/or other securities which have more than thirty-five percent (35%) of the combined voting power of the securities entitled to vote in the election of directors of the Seller; (B) there is a sale of all or substantially all of the assets of the such Person to any other entity, individual or group; (C) there is a reorganization, merger or consolidation of such Person in which the shareholders of such Person immediately before such event will not immediately thereafter own more than thirty-five percent (35%) of the combined voting power entitled to vote in the election of directors of the reorganized, merged or consolidated Seller’s voting securities, or (D) following any (1) acquisition or a series of acquisitions within six (6) months of each other by any other entity, individual or group (within the meaning of Sections 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial ownership (as defined in Rule 13d-3 promulgated under the Exchange Act) of the issued and outstanding common stock and/or other issued and outstanding securities of such Person; (2) sale of assets of such Person to any other entity, 

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“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

individual or group, (3) reorganization, merger, or consolidation of such Person, or (4) other transaction affecting the capitalization, ownership or management of such Person, the combined voting power of the securities entitled to vote in the election of directors of such Person that are held by the shareholders of record of such Person as of the date of this Agreement, shall not be sufficient at such time to elect a majority of the directors of such Person.
“Closing Date” means May 28, 2015.
“Collateral” is defined in Section 2.1.
“Collection Account” is defined in Section 1.5(a).
“Collection Account Bank” is defined in Section 1.5(a).
“Collection Account Property” means (a) the Collection Account, (b) all property (including all cash, financial assets, investment property and security entitlements) from time to time deposited in, carried in or credited to, or required to be deposited in, carried in or credited to, the Collection Account, (c) all funds from time to time deposited in or credited to, or required to be deposited in or credited to, the Collection Account, (d) all credit balances related to the Collection Account, (e) all rights, claims and causes of action of the Borrower with respect to the Collection Account, and (f) all proceeds of the foregoing.
“Collections” means with respect to any Receivable, any amounts received by the Borrower or the Servicer on such Receivable or the Related Security after the Cut-Off Date for or in respect of such Receivable, including all Extended Lease Payments, Recoveries and Sales Proceeds, all proceeds of Insurance Policies and all proceeds of the foregoing, all amounts deposited in the Collection Account pursuant to Section 3.6 and all Covered Amounts deposited in the Collection Account pursuant to Exhibit D hereof; provided, however, that the term “Collections” shall not include any Excluded Amounts.
“Commitment Termination Date” means the earliest of (a) the Early Amortization Date, if any, (b) the Business Day designated by the Borrower with no less than two (2) Business Days’ prior notice to the Administrative Agent and (c) the Scheduled Termination Date.
“Committed Lender” means the Person designated as a Committed Lender on its signature page hereto.
“Conduit Lender” means each Person designated as a Conduit Lender on its signature page hereto.
“Consent Date” has the meaning specified in Section 1.7.
“Contract” means a Lease Contract or a Loan Contract, as applicable.
“Covered Amount” means, for any Settlement Date, an amount equal to the sum of:

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“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

(a)    the product of (i) an amount equal to the excess, if any, of the average daily Loan Amount outstanding during the related Monthly Period over the average daily Hedge Notional Amount during the related Monthly Period, times (ii) the excess, if any, of the Weighted Average Floating Rate for the related Monthly Period over the Weighted Average Fixed Rate for the related Monthly Period, times (iii) a fraction equal to the number of days in such Monthly Period divided by 360, plus 
(b)    the product of (i) an amount equal to the excess, if any, of the average daily Hedge Notional Amount during the related Monthly Period over the average daily Loan Amount outstanding during the related Monthly Period times (ii) the excess, if any, of the Weighted Average Fixed Rate for the related Monthly Period over the Weighted Average Floating Rate for the related Monthly Period, times (iii) a fraction equal to the number of days in such Monthly Period divided by 360;
provided, however, that if (i) the average daily Hedge Notional Amount during the related Monthly Period is not less than 90%, and not more than 110%, of the average daily Loan Amount during the related Monthly Period and (ii) the Hedge Notional Amount on such Settlement Date is not less than 90%, and not more than 110%, of the Aggregate Loan Amount on such Settlement Date, then the Covered Amount for such Settlement Date shall be deemed to be zero ($0).
“CP Costs” means with respect to any Conduit Lender, for each day, the sum (on a weighted average basis) of (i) discount or yield accrued on Pooled Commercial Paper on such day, plus (ii) any and all accrued commissions in respect of placement agents and commercial paper dealers, and issuing and paying agent fees incurred, in respect of such Pooled Commercial Paper for such day, plus (iii) other costs associated with funding small or odd-lot amounts with respect to all receivable purchase facilities which are funded by Pooled Commercial Paper for such day.
“CP Rate” for any Monthly Period (or portion thereof) for any portion of a Loan Amount, in the case of each Conduit Lender, means a per annum rate of interest which when applied to the portion of a Loan Amount funded by a Conduit Lender will yield the CP Costs for such Monthly Period (or portion thereof).
“Credit Facility” means each committed loan facility, line of credit, letter of credit and other form of credit enhancement available to a Conduit Lender which is not a Liquidity Facility.
“CRR” means Articles 404-410 of the Capital Requirements Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013, as amended from time to time.
“CS Entity” means Credit Suisse AG, New York Branch or an Affiliate thereof.
“Customary Servicing Practices” means the customary practices of the Servicer with respect to Receivables, as such practices may be changed from time to time in accordance herewith.
“Cut-Off Date” means, for any Financed Receivables, the end of the calendar month preceding the inclusion of such Financed Receivable (or, for a Financed Receivable that was not 

I-5

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

yet originated as of the end of such calendar month, the date of origination) or, if specified by the Borrower, any later date that is at least two Business Days prior to the date of the inclusion of such Financed Receivable in the Included Balance.  Each Financed Receivable will have only one Cut-Off Date, which will be the date described in the preceding sentence for use at the time the Financed Receivable is first included in the Included Balance.
“DBRS” means DBRS, Inc. or any successor that is a nationally recognized statistical rating organization
“Default Ratio” means for any Monthly Period, a fraction (expressed as an annualized percentage) equal to (A) the aggregate Discounted Receivable Balance of all Financed Receivables that became Defaulted Receivables during the Monthly Period minus all Recoveries received during the Monthly Period divided by (B) the Included Balance as of the last day of the Monthly Period.
“Defaulted Receivable” means a Receivable as to which any payment or part thereof remains unpaid for 120 days from the due date other than for administrative reasons or which, consistent with Servicer’s Customary Servicing Practices, would administratively be placed in non earning status.
“Delinquency Ratio” means for any Monthly Period, a fraction (expressed as an annualized percentage) equal to (A) the aggregate Discounted Receivable Balance of all Financed Receivables that are Delinquent Receivables as of the last day of such Monthly Period divided by (B) the Included Balance for such Monthly Period.
“Delinquent Receivable” means any Receivable which is not a Defaulted Receivable and as to which at least 10% of any scheduled payment remains unpaid for more than 30 days, as reflected on the records of the Servicer, from the original due date for such payment.
“Delivery” when used with respect to Collection Account Property means:
(a)    with respect to bankers’ acceptances, commercial paper, negotiable certificates of deposit and other obligations that constitute “instruments” as defined in Section 9-102(a)(47) of the UCC and are susceptible of physical delivery, transfer thereof to the Administrative Agent or its nominee or custodian by physical delivery to the Administrative Agent or its nominee or custodian endorsed to, or registered in the name of, the Administrative Agent or its nominee or custodian or endorsed in blank, and, with respect to a “certificated security” (as defined in Section 8-102 of the UCC) transfer thereof (i) by delivery of such certificated security endorsed to, or registered in the name of, the Administrative Agent or its nominee or custodian to the  Administrative Agent or its nominee or custodian, or to another person, other than a “securities intermediary” (as defined in Section 8-102(14) of the UCC), who acquires possession of the certificated security on behalf of the Administrative Agent or its nominee or custodian or, having previously acquired possession of the certificate, acknowledges in an authenticated record that it holds for the Administrative Agent or its nominee or custodian or (ii) by delivery thereof to a “securities intermediary”, Administrative Agent or its nominee or custodian, and the making by such “securities intermediary” of entries on its books and records identifying such certificated 

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“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

securities as belonging to the Administrative Agent or its nominee or custodian and the sending by such “securities intermediary” of a confirmation of the purchase of such certificated security by the Administrative Agent or its nominee, who has agreed to hold all such assets delivered to it as “financial assets” under Article 8 of applicable UCC and credit such assets to a “securities account” in which the  Administrative Agent is the entitlement holder or (iii) by delivery thereof to a “clearing corporation” (all of the foregoing, “Physical Property”), and, in any event, any such Physical Property in registered form shall be in the name of the Administrative Agent or its nominee or custodian; and such additional or alternative procedures as may hereafter become appropriate to effect the complete transfer of ownership of any such Collection Account Property to the Administrative Agent or its nominee or custodian, consistent with changes in applicable law or regulations or the interpretation thereof;
(b)    with respect to any securities issued by the U.S. Treasury, the Federal Home Loan Mortgage Corporation or by the Federal National Mortgage Association that is a book-entry security held through the Federal Reserve System pursuant to Federal book-entry regulations, the following procedures, all in accordance with applicable law, including applicable Federal regulations and Articles 8 and 9 of the UCC: book-entry registration of such Collection Account Property to an appropriate book-entry account maintained with a Federal Reserve Bank by a financial intermediary which is also a “depository” pursuant to applicable Federal regulations and issuance by such financial intermediary of a deposit advice or other written confirmation of such book-entry registration to the Administrative Agent or its nominee or custodian of the purchase by the Administrative Agent or its nominee or custodian of such book-entry securities; the making by such financial intermediary of entries in its books and records identifying such book entry security held through the Federal Reserve System pursuant to Federal book-entry regulations as belonging to the Administrative Agent or its nominee or custodian and indicating that such custodian holds such Collection Account Property solely as agent for the Administrative Agent or its nominee or custodian; and such additional or alternative procedures as may hereafter become appropriate to effect complete transfer of ownership of any such Collection Account Property to the Administrative Agent or its nominee or custodian, consistent with changes in applicable law or regulations or the interpretation thereof; and
(c)    with respect to any item of Collection Account Property that is an uncertificated security (as defined in Section 8-102(18) of the UCC) and that is not governed by clause (b) above, (i) registration on the books and records of the issuer thereof in the name of the Administrative Agent or its nominee or custodian or (ii) registration on the books and records of the issuer thereof in the name of another person, other than a securities intermediary, who acknowledges that it holds such uncertificated security for the benefit of the Administrative Agent or its nominee or custodian.
“Designated Obligor” means each of [●],[●],[●],[●], [●] and any other Obligor as may be designated in writing by TFS and approved in writing by the Administrative Agent as a “Designated Obligor”, such approval not to be unreasonably withheld.

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“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Discount Rate” means, with respect to any Receivable, a per annum rate equal to the sum of: (1) the Hedge Rate for such Receivable, (2) the Servicing Fee Rate, and (3) the Used Fee Rate; provided, however, that if the Hedge Rate, and thus the Discount Rate, is not yet known for any Receivable on such day, an estimate of the Hedge Rate may be used for the calculation of such Receivable’s Discounted Receivable Balance for the first Monthly Period).  For the avoidance of doubt, a Receivable will have only one Discount Rate for the term of the related Contract, regardless of subsequent interest rate changes.
“Discounted Receivable Balance” means, for any Receivable, the sum of the Discounted Contract Balance and the Discounted Residual Values Balance for such Receivable, as applicable.
“Discounted Contract Balance” means, for a particular Contract, as of the close of business on the last day of any Monthly Period or as of the close of business on the Cut-Off Date for such Contract, an amount equal to the sum of the present value of all scheduled payments remaining under such Contract after such date (calculated by discounting such scheduled payments using the Discount Rate for such Contract, and computed on the basis of a 360-day year comprised of twelve 30-day months), assuming (even if such Contract relates to a Delinquent Receivable or, solely with respect to calculating the Purchase Amount of such Contract, a Defaulted Receivable) that all past due scheduled payments are paid on such date and all future scheduled payments are paid on the scheduled due date therefor.
“Discounted Residual Values Balance” means, for a particular Lease Contract, as of the close of business on the last day of any Monthly Period or as of the close of business on the Cut-Off Date for such Lease Contract, an amount equal to the present value, as of such date (discounted at a rate equal to the Discount Rate for such Lease Contract, and computed on the basis of a 360-day year comprised of twelve 30-day months), of the Booked Residual Value for such Lease Contact, discounted from the first day of the Monthly Period in which the Scheduled End Date for such Lease Contract occurs to such date.
“Dodd-Frank Act” means The Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203, H.R. 4173).
“Dollar” and “$” mean lawful currency of the United States of America.
“Downgrade Event” means, at any time, the senior unsecured debt rating of Parent falls to “B3” or lower by Moody’s or “B+” or lower by S&P.
“Drawn Liquidity Rate” has the meaning set forth in the Fee Letter.
“Early Amortization Date” means the date of an Early Amortization Event.
“Early Amortization Event” means the occurrence of any event described in clause (d) below or the delivery by the Administrative Agent of written notice stating that it is an “Early Amortization Event Notice” to the Borrower after any other event described below shall have occurred and be continuing:

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“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

(b)    any failure by the Borrower, the Originator, the Servicer or the Performance Guarantor to (i) make any payment or deposit of any amount due hereunder or (ii) timely deliver the Periodic Report and, in either case, the continuance of such failure for a period of five (5) Business Days; or
(c)    (i) the Borrower fails to comply with Section 5.1(j)(ii) hereof and such failure remains unremedied for three (3) Business Days (or with respect to 5.1(j)(ii)(A), ten (10) days) after the earlier of actual knowledge of the Borrower, the Originator, the Servicer or the Performance Guarantor, or the Borrower, the Originator, the Servicer or the Performance Guarantor having received written notice thereof from the Administrative Agent or any Lender, or (ii) the Borrower, the Originator, the Servicer or the Performance Guarantor fails to observe or perform any term, covenant or agreement under any Transaction Document, which failure materially and adversely affects the interests of the Lenders (for purposes of determining whether such failure materially and adversely affects the interests of the Lenders, all references in any such term, covenant or agreement to any materiality, Material Adverse Effect, in all material respects or other similar qualifier contained in or otherwise applicable to such term, covenant or agreement shall be disregarded and given no effect), and such failure remains unremedied for sixty (60) days after the earlier of actual knowledge of the Borrower, the Originator, the Servicer or the Performance Guarantor, or the Borrower, the Originator, the Servicer or the Performance Guarantor having received written notice thereof from the Administrative Agent or any Lender; or
(d)    any written representation or warranty made by the Borrower, the Originator, the Servicer or the Performance Guarantor in any Transaction Document, Periodic Report, Transfer Request or other report or certificate delivered by the Borrower, the Originator, the Servicer or the Performance Guarantor pursuant to any Transaction Document shall have been incorrect in any respect when made, which inaccuracy materially and adversely affects the interests of the Lenders (for purposes of determining whether such failure materially and adversely affects the interests of the Lenders, all references in any such representation or warranty to any materiality, Material Adverse Effect, in all material respects or other similar qualifier contained in or otherwise applicable to such representation or warranty shall be disregarded and given no effect), and such incorrect representation or warranty remains unremedied for sixty (60) days after the earlier of actual knowledge of the Borrower, the Originator, the Servicer or the Performance Guarantor, or the Borrower, the Originator, the Servicer or the Performance Guarantor having received written notice thereof from the Administrative Agent, or any Lender; it being understood that any repurchase of a Receivable by the Originator pursuant to Section 2.8 of the Sale Agreement shall be deemed to remedy any incorrect representation or warranty with respect to such Receivable; or
(e)    the Originator suffers a Bankruptcy Event; or
(f)    a Servicer Replacement Event or Event of Default occurs; or
(g)    on any Reporting Date, the Average Delinquency Ratio exceeds [●]%; or
(h)    on any Reporting Date, the Average Default Ratio exceeds [●]%; or

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“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

(i)    on any Reporting Date,  the Residual Loss Ratio exceeds [●]%; or
(j)    a Change of Control of Parent or TFS occurs; or
(k)    the Borrower shall become a “covered fund” under the Volcker Rule;
provided, however , that a delay or failure of performance under clauses (a), (b) or (c) above for a period of thirty (30) days beyond the applicable cure period will not constitute an Early Amortization Event if such delay or failure was caused Force Majeure Event.
“Early Payment Fee” means, if any portion of the Loan Amount is reduced, prepaid or terminated other than pursuant to Section 1.4 (the amount of Loan Amount so reduced or terminated being referred to as the “Prepaid Amount”), the actual out-of-pocket cost to the Lender of terminating or reducing such portion of the Loan Amount, which means, for any portion of the Loan Amount funded through the issuance of commercial paper notes, any compensation paid in prepaying the related commercial paper notes or, if not prepaid, any shortfall between the amount that will be available to the related Conduit Lender on the maturity date of the related commercial paper notes from reinvesting the Prepaid Amount in Permitted Investments and the Face Amount of such commercial paper notes.
“Early Stage Delinquent Receivable” means a Receivable as to which at least 10% of any scheduled payment remains unpaid for more than 30 days but not more than 59 days, as reflected on the records of the Servicer, from the original due date for such payment.
“Eligible Account” means either (a) a segregated account with an Eligible Bank or (b) a segregated trust account with the corporate trust department of a depository institution with corporate trust powers organized under the laws of the United States of America or any state thereof or the District of Columbia (or any United States branch of a foreign bank) and whose deposits are insured by the Federal Deposit Insurance Corporation, provided that such institution must have a net worth in excess of $100,000,000 and must have a rating of Baa2 or higher from Moody’s and a rating of BBB or higher from S&P with respect to long-term deposit obligations.
“Eligible Assignee” has the meaning specified in Section 9.4(a).
“Eligible Bank” shall mean a depository institution organized under the laws of the United States or any one of the states thereof, including the District of Columbia (or any United States branch or agency of a foreign bank), which is subject to supervision and examination by federal or state banking authorities, the deposits of which are insured by the Federal Deposit Insurance Corporation and which at all times (a) has a net worth in excess of $100,000,000 and (b) has either (x) a long-term unsecured debt rating of at least Baa2 by Moody’s and BBB by S&P or (y) a short-term certificate of deposit rating of P-2 by Moody’s and A-2 by S&P.  The Administrative Agent shall be an Eligible Bank to the extent it meets the foregoing criteria. 
“Eligible Default Ratio” means with respect to any Monthly Period in which the Included Balance was greater than $10,000,000 at any time during such Monthly Period, the Default Ratio for such Monthly Period.

I-10

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Eligible Delinquency Ratio” means with respect to any Monthly Period in which the Included Balance was greater than $10,000,000 at any time during such Monthly Period, the Delinquency Ratio for such Monthly Period.
“Eligible Receivable” means, at the time set forth below, or if no such time is specified, as of any date of determination, a Receivable:
(a)    (x) which was not, as of the applicable Cut-Off Date, a Delinquent Receivable (other than an Early Stage Delinquent Receivable) or a Defaulted Receivable, (y) the addition of which to the Financed Receivables did not cause the aggregate Discounted Receivable Balance of all Early Stage Delinquent Receivables to exceed [●]% of the Included Balance as of the applicable Cut-Off Date and (z) which is not a Defaulted Receivable;
(b)    which, as of the applicable Purchase Date, arises under a Contract that was originated by the Originator in the ordinary course of business in connection with the purchase or lease of the related Equipment and in accordance with the Underwriting Guidelines as in effect at the time of such origination or acquisition and which has been serviced in accordance with the Customary Servicing Practices at all times since the origination thereof;
(c)    which arises under a Contract that is in full force and effect and constitutes the legal, valid and binding obligation of the related Obligor, enforceable against such Obligor in accordance with its terms, except for bankruptcy or similar laws affecting creditor’s rights;
(d)    which arises under a Contract that unconditionally obligates the Obligor to make periodic payments (including taxes), notwithstanding damage to or destruction of the related Equipment, or any other event, including obsolescence of such Equipment;
(e)    which arises under a Contract, the terms of which require the Obligor to maintain casualty insurance or proof of financial responsibility with respect to the related Equipment;
(f)    which, as of the applicable Purchase Date, was selected for sale to the Borrower using no procedures believed by the Seller to be materially adverse to the interests of the Borrower or any Lender, subject to the eligibility criteria in this and other financing transactions;
(g)    which, if such Receivable relates to a Lease Contract, 
(i)    such Contract is a “triple net lease” under which the Obligor is responsible for the operating costs, maintenance, taxes and insurance with respect to the related Equipment;
(ii)    such Contract is non-cancelable by the related Obligor, and either does not contain any early termination option, or, if it does contain such an option, 

I-11

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

it also contains a provision requiring payment of all remaining scheduled payments less any unearned finance charges under such Lease Contract at the time of such early termination;
(iii)    an ownership interest in the related Equipment is not required to be reflected on a certificate of title under the laws of the relevant jurisdiction; and
(iv)    such Contract is not a “consumer lease” as defined in Section 2A-103 of the UCC;
(h)    the Obligor of which has a billing address in the United States or Canada, and which is a U.S. or Canadian dollar-denominated obligation;
(i)    (x) which, as of the applicable Purchase Date and prior to the sale to the Borrower, was owned by the Originator free and clear of all Adverse Claims and (y) as to which the Borrower has good and marketable title free and clear of all Adverse Claims;
(j)    which, according to the records of the Servicer, the Obligor was not subject to bankruptcy or other insolvency proceedings as of such date;
(k)    which is an “account”, a “payment intangible” or “tangible chattel paper” within the meaning of Section 9-102 of the UCC of all applicable jurisdictions;
(l)    which, if the related Contract constitutes an instrument or chattel paper for purposes of the UCC, there is only one original executed copy;
(m)    as of the applicable Cut-Off Date, the original term to maturity of the related Contract did not exceed [●] months;
(n)    as of the applicable Cut-Off Date, the remaining term to maturity of the related Contract did not exceed (i) if the Included Balance as of the date of determination is less than or equal to $[●], [●] months or (ii) if the Included Balance as of the date of determination is greater than $[●], [●] months;
(o)    the Discounted Receivable Balance of which, as of the applicable Cut-Off Date, did not exceed $[●];
(p)    the original cost of the Equipment relating to which, as of the applicable Cut-Off Date, did not exceed $[●];
(q)    which arises under a Contract (A) that does not require the Obligor under such Contract to consent to or receive notice of the transfer, sale or assignment of such Contract,  (B) that contains customary and enforceable provisions and (C) under which the obligations of the Obligor are irrevocable, unconditional and non-cancellable, except for bankruptcy, moratorium or similar laws affecting creditors’ rights, so as to render the rights and remedies of the holder thereof against the property subject to such Contract adequate for the realization of the benefits provided thereby;

I-12

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

(r)    which, if such Receivable arose under a Loan Contract, (x) as of the applicable Purchase Date and prior to the sale to the Borrower, the Originator possessed a valid and enforceable first priority perfected security interest in the related Equipment, free and clear of any Adverse Claims and (y) the Borrower possesses a valid and enforceable first priority perfected security interest in the related Equipment, free and clear of any Adverse Claims;
(s)    which, if such Receivable arose under a Lease Contract, (x) as of the applicable Purchase Date and prior to the sale to the Borrower, the Originator owned the related Equipment, free and clear of any Adverse Claims and (y) the Borrower owns a valid ownership interest in, and good and marketable title to, the related Equipment, free and clear of any Adverse Claims;
(t)    which complies with applicable laws, rules and regulations in all material respects;
(u)    which arises under a Contract that requires substantially equal payments to be made (except for “seasonal skips” and the first and last payments under the related Contract, so long as such last payment is less than 30% of the amount financed under such Contract at origination);
(v)    which, if such Receivable arises under a Contract which is part of a master lease, such Contract is evidenced by a schedule or rider to the master lease agreement between the Originator and the lessee and either (a) all Equipment leased thereunder and all such schedules thereunder are included in the Financed Receivables or (b) the master lease agreement permits the assignment of the rights to the Borrower under such schedule or rider;
(w)    the addition of which to the Financed Receivables did not cause the Average Discounted Receivable Balance of all Financed Receivables to exceed $[●] as of the applicable Cut-Off Date;
(x)    which would not be characterized as floorplan financing as of the applicable Cut-Off Date; 
(y)    the Discounted Receivables Balance with respect to the related Contract does not include any security deposits held by TFS (or its assigns) or the Servicer and such Contract does not provide that the related Obligor may elect to utilize any security deposit thereunder to offset any scheduled payment thereunder; 
(z)    there have been no charge-offs on such Receivable or on any other Receivable of the same Obligor; and
(aa)    payments with respect to such Receivable are not secured by real estate.
“Equipment” means specific items of new and used equipment and other property subject to a Contract, together with any replacement parts, additions and repairs thereof, and any accessories incorporated therein or affixed thereto.

I-13

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Event of Default” means any event or circumstance specified in Section 6.1.
“Excess Concentration Amount” means:
(a)    on any date of determination when the Included Balance is less than or equal to $[●], the sum of the following amounts:
(i)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Contracts with remaining terms to maturity, as of the applicable Cut-Off Date, of greater than [●] months, exceeds [●]% of the Included Balance on such specified date;
(ii)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Contracts with Discounted Receivables Balances, as of the applicable Cut-Off Date, of greater than $[●], exceeds [●]% of the Included Balance on such specified date;
(iii)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Contracts for Obligors in the state of [●] exceeds [●]% of the Included Balance on such specified date;
(iv)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Contracts for Obligors in any single state (other than [●]) exceeds [●]% of the Included Balance on such specified date;
(v)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with the largest Obligor (measured by Discounted Receivable Balance of the Financed Receivables of such Obligor) exceeds: (i) if such Obligor is a Designated Obligor, [●]% of the Included Balance on such specified date, and (ii) otherwise, [●]% of the Included Balance on such specified date;
(vi)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with the second largest Obligor (measured by Discounted Receivable Balance of the Financed Receivables of such Obligor) 

I-14

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

exceeds: (i) if such Obligor is a Designated Obligor, [●]% of the Included Balance on such specified date; and (ii) otherwise, [●]% of the Included Balance on such specified date;
(vii)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with the third largest Obligor (measured by Discounted Receivable Balance of the Financed Receivables of such Obligor) exceeds [●]% of the Included Balance on such specified date;
(viii)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with the five (5) largest Obligors (measured by Discounted Receivable Balance of the Financed Receivables of such Obligors) exceeds: (i) if each of the two (2) largest Obligors are Designated Obligors, [●]% of the Included Balance on such specified date; and (ii) otherwise, [●]% of the Included Balance on such specified date;
(ix)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with the ten (10) largest Obligors (measured by Discounted Receivable Balance of the Financed Receivables of such Obligors) exceeds [●]% of the Included Balance on such specified date;
(x)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with any Obligor other than one of the 10 largest Obligors (measured by Discounted Receivable Balance of the Financed Receivables of such Obligors) exceeds [●]% of the Included Balance on such specified date;
(xi)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with original terms to maturity of greater than [●] months exceeds [●]% of the Included Balance on such specified date; 
(xii)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables secured by the same equipment type exceed the following percentages of the Included Balance on such specified date:

I-15

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

(1)    Cranes                [●]%
(2)    Aerial Work Platforms    [●]%
(3)    Construction            [●]%;
(4)    Materials Processing        [●]%; and
(5)    MHPS                [●]%;
(xiii)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Canadian Receivables exceeds [●]% of the Included Balance on such specified date;
(xiv)    the amount by which the Booked Residual Value component of the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables exceeds [●]% of the Included Balance on such specified date; 
(xv)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with balloon payments exceeds [●]% of the Included Balance on such specified date;
(xvi)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with scheduled payments thereon due less frequently than monthly exceeds [●]% of the Included Balance on such specified date; and
(xvii)    the amount by which the aggregate original equipment cost of all Non-Terex Equipment securing Receivables  as of such date exceeds [●]% of the aggregate equipment cost of all Equipment securing Receivables in the Included Balance on such specified date; provided, that prior to September 30, 2015, the amount described under this clause (xvii) shall be determined solely based on the reasonable estimation of the Borrower as of such specified date; or 
(b)    on any date of determination when the Included Balance is greater than $[●], the sum of the following amounts:
(i)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such 

I-16

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

Receivables) of all Contracts with remaining terms to maturity, as of the applicable Cut-Off Date, of greater than [●] months, exceeds [●]% of the Included Balance on such specified date;
(ii)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Contracts with Discounted Receivables Balances, as of the applicable Cut-Off Date, of greater than $[●], exceeds [●]% of the Included Balance on such specified date;
(iii)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Contracts for Obligors in the state of [●] exceeds [●]% of the Included Balance on such specified date;
(iv)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Contracts for Obligors in any single state (other than [●]) exceeds [●]% of the Included Balance on such specified date;
(v)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with the largest Obligor (measured by Discounted Receivable Balance of the Financed Receivables of such Obligor) exceeds [●]% of the Included Balance on such specified date;
(vi)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with the second largest Obligor (measured by Discounted Receivable Balance of the Financed Receivables of such Obligor) exceeds [●]% of the Included Balance on such specified date;
(vii)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with the third largest Obligor (measured by Discounted Receivable Balance of the Financed Receivables of such Obligor) exceeds [●]% of the Included Balance on such specified date;
(viii)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of 

I-17

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with the five (5) largest Obligors (measured by Discounted Receivable Balance of the Financed Receivables of such Obligors) exceeds [●]% of the Included Balance on such specified date;
(ix)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with the ten (10) largest Obligors (measured by Discounted Receivable Balance of the Financed Receivables of such Obligors) exceeds [●]% of the Included Balance on such specified date;
(x)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with any Obligor other than one of the 10 largest Obligors (measured by Discounted Receivable Balance of the Financed Receivables of such Obligors) exceeds [●]% of the Included Balance on such specified date;
(xi)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with original terms to maturity of greater than [●] months exceeds [●]% of the Included Balance on such specified date; 
(xii)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables secured by the same equipment type exceed the following percentages of the Included Balance on such specified date:
(1)    Cranes                [●]%
(2)    Aerial Work Platforms    [●]%
(3)    Construction            [●]%;
(4)    Materials Processing        [●]%; and
(5)    MHPS                [●]%;
(xiii)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Canadian Receivables exceeds [●]% of the Included Balance on such specified date;

I-18

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

(xiv)    the amount by which the Booked Residual Value component of the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables exceeds [●]% of the Included Balance on such specified date; 
(xv)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with balloon payments exceeds [●]% of the Included Balance on such specified date;
(xvi)    the amount by which the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding month, the Initial Discounted Receivable Balance of such Receivables) of all Receivables with scheduled payments thereon due less frequently than monthly exceeds [●]% of the Included Balance on such specified date; and
(xvii)    the amount by which the aggregate original equipment cost of all Non-Terex Equipment securing Receivables  as of such date exceeds [●]% of the aggregate equipment cost of all Equipment securing Receivables in the Included Balance on such specified date; provided, that prior to September 30, 2015, the amount described under this clause (xvii) shall be determined solely based on the reasonable estimation of the Borrower as of such specified date.
For purposes of calculating the Excess Concentration Amount, to the extent the Discounted Receivable Balance (or a portion thereof) of any Receivable would cause more than one of the concentration limits set forth above to be exceeded, such excess amount may be counted towards only one such concentration limit. 
“Excluded Amounts” means (i) Supplemental Servicing Fees, (ii) payments allocable to sales, use or similar related taxes, or fees or other charges imposed by any Governmental Authority (which shall be collected by the Servicer and remitted to the applicable Governmental Authority or used to reimburse the Servicer for payment of such amounts in accordance with the Servicer’s Customary Servicing Practices), (iii) excess wear and tear charges and (vi) all out of pocket costs and expenses incurred by the Servicer in connection with such sale or other disposition of a Equipment, including without limitation, all repossession, auction, painting, repair and any and all other similar liquidation and refurbishment costs and expenses.
“Extended Lease Payments” means, with respect to any Lease Contract that has reached its Scheduled End Date and with respect to which the Obligor thereof has paid all scheduled payments required under the original terms of such Lease Contract, all rent payments made by the Obligor thereof in excess of the scheduled payments required under the original terms of such Lease Contract.

I-19

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Face Amount” means the face amount of a debt security issued on a discount basis or, if not issued on a discount basis, the sum of the principal amount of such note and interest scheduled to accrue thereon to its stated maturity.
“Facility Limit” means $350,000,000, as such amount may be reduced or increased from time to time pursuant to Section 1.4.  On any day on and after the Commitment Termination Date, the Facility Limit shall equal the Aggregate Loan Amount on such day.
“Fee Letter” means the letter agreement dated as of the Closing Date between the Borrower and the Administrative Agent, setting forth the fees and certain other amounts payable to the Administrative Agent and the Lenders in connection with this Agreement, as amended, restated or otherwise modified from time to time.
“Federal Bankruptcy Code” means The Bankruptcy Reform Act of 1978, as amended from time to time, and as codified as 11 U.S.C. Section 101 et seq.
“Final Maturity Date” means, at any time, one year and a day after the due date of the latest installment due under the last maturing Financed Receivable at such time.
“Financed Receivable” means, at any time, a Receivable owned by the Borrower at such time.
“Force Majeure Event” means an event that occurs as a result of acts of declared or undeclared war (including acts of terrorism), public disorder, rebellion, sabotage, epidemics, landslides, lightning, fire, hurricane, earthquakes, floods or similar causes.
“Funding Document” means any Transaction Document or any agreement which is part of a Liquidity Facility or Credit Facility.
“Funding Party” means each Lender, or any Person that is committed to fund under a Liquidity Facility or Credit Facility.
“GAAP” means generally accepted accounting principles in the USA, applied on a materially consistent basis.
“Governmental Authority” means any (a) Federal, state, municipal, foreign or other governmental entity, board, bureau, agency or instrumentality, (b) administrative or regulatory authority (including any central bank or similar authority) or (c) court or judicial authority.
“Hedge Agreements” means the interest rate protection agreements and currency-related forward contracts entered into by the Borrower in accordance with Exhibit D.
“Hedge Counterparty” means, with respect to any Hedge Agreement, the counterparty to such Hedge Agreement.
“Hedge Notional Amount” means the aggregate notional amount in effect on any day under all Hedge Transactions entered into pursuant to Exhibit D for such Loan.

I-20

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Hedge Rate” means, with respect to the Receivables and the related Hedge Agreements entered into by the Borrower with respect to the Receivables pursuant to Exhibit D, the fixed rate payable under such swap.
“Hedge Termination Payment” means, with respect to a particular Hedge Agreement, the payment due by the Borrower to the Hedge Counterparty or by the Hedge Counterparty to the Borrower, including any interest that may accrue thereon, upon the occurrence of an “early termination date” under such Hedge Agreement. 
“Hedge Transaction” means, each interest rate swap transaction between the Borrower and a Hedge Counterparty which is entered into pursuant to Exhibit D and is governed by a Hedge Agreement.
“Included Balance” means, (x) for any day, the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Eligible Receivables which did not exist as of the end of the preceding calendar month, the Initial Discounted Receivable Balance of such Receivable) of all Eligible Receivables on such day and (y) for any Monthly Period, the sum of the aggregate Discounted Receivable Balance as of the beginning of such Monthly Period of all Eligible Receivables at the beginning of such Monthly Period plus the aggregate Discounted Receivable Balance as of the beginning of such Monthly Period (or, for Eligible Receivables which did not exist at the beginning of such Monthly Period, the Initial Discounted Receivable Balance of such Receivable) of all Eligible Receivables which were acquired by the Borrower during such Monthly Period.  
“Indemnified Party” is defined in Section 7.1.
“Information” has the meaning specified in Section 9.6.
“Initial Cut-Off Date” means April 30, 2015.
“Initial Discounted Receivable Balance” means, with respect to any Receivable, the Discounted Receivable Balance of such Receivable as of the Cut-Off Date for such Receivable.
“Insurance Policy” means (i) any comprehensive and collision, fire, theft or other insurance policy maintained by an Obligor for the benefit of the Originator with respect to one or more Equipments and (ii) any credit life, credit disability, credit health or credit unemployment insurance maintained by an Obligor in connection with any Receivable.
“Investment Company Act” is defined in Section 4.1(i).
“Intended Tax Characterization” is defined in Section 9.5.
“Interest” means, with respect to a Monthly Period, an amount equal to the sum for all Lenders of the following amounts:  the product for each Lender on each day during such Monthly Period of (a) such Lender’s Loan Amount on such day, (b) such Lender’s Interest Rate on such day and (c) a fraction equal to one divided by 360.

I-21

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Interest Rate” means the sum of (a) with respect to any portion of the Loan Amount funded by a Conduit Lender through the issuance of commercial paper notes, the sum of (i) the CP Rate for such Conduit Lender and (ii) the Used Fee Rate, and (b) with respect to any portion of the Loan Amount funded by a Conduit Lender other than through the issuance of commercial paper notes, by any other Lender, or under any Liquidity Facility or Credit Facility, the sum of (i) the Drawn Liquidity Rate and (ii) the Used Fee Rate.
“Lease Contract” means a lease contract pursuant to which specific items of Equipment are leased by TFS to an Obligor, including a lease schedule to a master lease agreement pursuant to which specific items of Equipment are leased by TFS to an Obligor, and any and all amendments, riders and other documents which pertain thereto.
“Lenders” means, collectively, the Conduit Lender and the Committed Lender.
“Liquidity Facility” means each committed loan facility, asset purchase agreement, line of credit and other financial accommodation available to a Conduit Lender to support the liquidity of such Conduit Lender’s commercial paper notes.
“Loan” is defined in Section 1.1(a).
“Loan Amount” means, for any Lender at any time, the aggregate unpaid principal amount of all Loans made by such Lender outstanding at such time.
“Loan Contract” means a loan contract or other financing arrangement pursuant to which the purchase of specific items of Equipment by an Obligor are financed by TFS and any and all amendments, riders and other documents which pertain thereto.
“Material Adverse Effect” means (i) a material and adverse effect on the business, properties, financial condition or results of operations of TFS, taken as a whole, or the Borrower; (ii) any material impairment of the right or ability of TFS or the Borrower to carry on its business substantially as now conducted; (iii) any material impairment of (x) the  validity of this Agreement or any other Transaction Document, (y) the validity, value or collectability of the Receivables (other than an immaterial portion thereof) or (z) the obligations of TFS or the Borrower herein or in any other Transaction Document; or (iv) any material impairment of the ability of TFS or the Borrower to perform its obligations under the terms of this Agreement or any other Transaction Document.
“Maximum Borrowing” means, at any time, the amount by which the Facility Limit exceeds the Loan Amount at that time.
“Monthly Period” means the period commencing on the first day of each calendar month and ending on the last day of such calendar month, except for the first Monthly Period, which shall begin on the Initial Cut-Off Date and end on the last day of the calendar month in which the Closing Date occurs.  As used herein, the “related” Monthly Period with respect to a Settlement Date shall be the Monthly Period which precedes such Settlement Date.
“Monthly Remittance Condition” has the meaning specified in Section 1.6(a).

I-22

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Moody’s” means Moody’s Investors Service, Inc., or any successor that is a nationally recognized statistical rating organization.
“Non-Terex Equipment” means Equipment which  has not been manufactured or sold by Parent, its Affiliates or any partnership, company or other entity or joint-venture in which Parent or an Affiliate holds or previously held a beneficial or ownership interest.
“Obligor” means, for any Receivable, each Person obligated to pay such Receivable and each guarantor of such obligation.
“Originator” means TFS, as the seller under the Sale Agreement.
“Parent” means Terex Corporation, its successors and assigns.
“Participant” has the meaning specified in Section 9.4(b).
“Performance Guaranty” means the certain Performance Guaranty, dated as of the date of this Agreement between the Parent and the Administrative Agent, on behalf of the Secured Parties.
“Periodic Report” is defined Section 3.3.
“Permitted Investments” means (a) evidences of indebtedness, maturing within thirty (30) days after the date of loan thereof, issued by, or guaranteed by the full faith and credit of, the federal government of the USA, (b) repurchase agreements with banking institutions or broker‐dealers registered under the Securities Exchange Act of 1934 which are fully secured by obligations of the kind specified in clause (a), (c) money market funds (i) rated not lower than the highest rating category from Moody’s and “AAAm” or “AAAm-g,” from S&P or (ii) which are otherwise acceptable to the Rating Agencies or (d) commercial paper issued by any corporation incorporated under the laws of the USA and rated at least “A-1+” (or the equivalent) by S&P and at least “P-1” (or the equivalent) by Moody’s.
“Permitted Lien” means with respect to any Receivable: (a) the interests of the parties under the Transaction Documents; (b) any liens thereon for taxes, assessments, levies, fees and other government and similar charges not due and payable or the amount or validity of which is being contested in good faith by appropriate proceedings; (c) any liens of mechanics, suppliers, vendors, materialmen, laborers, employees, repairmen and other like liens arising in the ordinary course of the Servicer’s, Borrower’s or the Originator’s business securing obligations which are not due and payable or the amount or validity of which is being contested in good faith by appropriate proceedings, and (d) liens arising out of any judgment or award against the Borrower or the Originator with respect to which an appeal or proceeding for review is being taken in good faith and with respect to which there shall have been secured a stay of execution pending such appeal or proceeding for review.
“Person” means an individual, partnership, corporation, limited liability company, trust, association, joint venture, Governmental Authority or other entity of any kind.

I-23

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Physical Property” has the meaning set forth in the definition of “Delivery” above.
“Pooled Commercial Paper” means commercial paper notes of the Conduit Lender excluding commercial paper issued by the Conduit Lender for a tenor and in an amount specifically requested by any customer in connection with any agreement effected by the Conduit Lender.
“Principal Payment Amount” means, (A) for any Settlement Date prior to the occurrence of a Canadian Amortization Event, the excess (if any) of the Aggregate Loan Amount (including any additional amounts to be borrowed on such Settlement Date) over the Targeted Loan Amount on such Settlement Date, and (B) for any Settlement Date following the occurrence and continuance of a Canadian Amortization Event, the excess (if any) of the Aggregate Loan Amount (including any additional amounts to be borrowed on such Settlement Date) over the U.S. Targeted Loan Amount on such Settlement Date.
“Program Administrator” has the meaning specified in Section 9.8.
“Purchase Date” has the meaning specified in the Sale Agreement.
“Rating Agency” means any rating agency that has been hired to rate the Conduit Lender’s commercial paper notes.
“Receivable” means a Contract and all Related Security in connection therewith.
“Receivable File” has the definition set forth in Section 3.4(a).
“Recoveries” means, with respect to any Receivable that has become a Defaulted Receivable, all monies collected by the Servicer (from whatever source, including, but not limited to, proceeds of a deficiency balance or insurance proceeds recovered after the charge‐off of the related Receivable) on such Defaulted Receivable, net of any expenses incurred by the Servicer in connection therewith, Supplemental Servicing Fees and any payments required by law to be remitted to the Obligor.
“Regulatory Change” has the meaning specified in Section 7.2.
“Related Security” means, for any Receivable, (i) all of the Originator’s (and following transfer to the Borrower pursuant to the Sale Agreement, the Borrower’s) right, title and interest in the related Equipment, (ii) all rights of the Originator (and following transfer to the Borrower pursuant to the Sale Agreement, the Borrower) under Insurance Policies relating to such Equipment or the related Obligor, (iii) all other security interests or liens and property subject thereto, if any, purporting to secure payment of such Receivable, together with all financing statements signed by an Obligor describing any collateral securing such Receivable, (iv) all guaranties, letters of credit, insurance and other agreements supporting or securing payment of such Receivable, (v) all warranty service contracts related to such Receivable and (vi) all proceeds of the foregoing.

I-24

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Reporting Date” means the second Business Day preceding the related Settlement Date.
“Required Payoff Amount” has the meaning specified in Section 2.5(f).
“Required Rating” means a long-term rating falling in one of the generic rating categories which signifies investment grade from each of S&P and Moody’s.
“Residual Losses” means for any Monthly Period, a positive or negative number equal to (1) the sum of the Adjusted Residual Values for all Equipment which had Returned Equipment Dispositions during such Monthly Period minus the Sales Proceeds from such Returned Equipment Dispositions minus (2) all excess wear and tear charges collected during such period.
“Residual Loss Ratio” means, as of any Reporting Date, a fraction (expressed as an annualized percentage), the numerator of which is the sum of the Residual Losses during the three preceding Monthly Periods and the denominator of which is the sum of the aggregate Adjusted Residual Values (calculated as of the beginning of the Monthly Period in which the Returned Equipment Disposition of the related Equipment occurred) for all Lease Contracts with respect to which a Returned Equipment Disposition occurred during such three preceding Monthly Periods; provided, however, that for any Monthly Period prior to the initial Settlement Date, the Residual Losses shall be deemed to be zero; provided, further, however that the Residual Loss Ratio for any Reporting Date shall be zero unless at least [five (5)] Returned Equipment Dispositions have occurred during such three preceding Monthly Periods.
“Returned Equipment Disposition” means a disposition by the Servicer of a unit of leased Equipment returned to the Servicer after the Scheduled End Date of the related Lease Contract.
“S&P” means Standard & Poor’s Ratings Services, or any successor that is a nationally recognized statistical rating organization.
“Sale Agreement” means the Receivables Sale Agreement, dated as of the Closing Date, by and between TFS and the Borrower, as the same may be amended, restated or otherwise modified from time to time.
“Sales Proceeds” means, with respect to any Equipment, the aggregate amount of proceeds received by the Servicer in connection with the remarketing, sale, transfer, lease, re-lease or other disposition of such Equipment (other than Extended Lease Payments), net of any and all out-of-pocket costs and expenses incurred by the Servicer in connection with such sale or other disposition, including without limitation, all repossession, auction, painting, repair and any and all other similar liquidation and refurbishment costs and expenses. 
“Scheduled End Date” means, for a Lease Contract, the original date set forth in such Lease Contract as the date on which such Lease Contract is scheduled to expire.
“Scheduled Termination Date” means May 28, 2017, as such date may be extended by the parties hereto from time to time in accordance with Section 1.7.
“Secured Parties” means the Administrative Agent, the Hedge Counterparty and the Lenders.

I-25

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Senior Hedge Termination Payment” means any Hedge Termination Payment owed by the Borrower to the Hedge Counterparty under a Hedge Agreement that is not a Subordinated Hedge Termination Payment.
“Senior Monthly Interest and Fees” means, with respect to any Settlement Date, the sum of (a) all Interest for the related Monthly Period and all accrued and unpaid Interest for any prior Monthly Periods, plus (b)   all Unused Fees for the related Monthly Period and all accrued and unpaid Unused Fees for any prior Monthly Period, to the extent such sum does not exceed an amount equal to the amount of interest and fees that would have accrued on the Aggregate Loan Amount during the related Monthly Period at a per annum rate equal to the sum of the CP Rate or the Drawn Liquidity Rate for such Monthly Period, as applicable, plus the Used Fee Rate (without giving effect to the proviso to the definition thereof) plus the Unused Fee Rate.
“Serviced Balance” means the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Receivables which did not exist as of the end of the preceding calendar month, the Initial Discounted Receivable Balance of such Receivable) of all Receivables owned at any time during such Monthly Period by the Borrower, including without limitation, all Receivables which became Defaulted Receivables during such Monthly Period.
“Servicer” means Terex Financial Services, Inc., in its capacity as Servicer, or any Person designated to so act as Servicer on behalf of the Borrower under the Transaction Documents.
“Servicer Replacement Event” means the occurrence of any event described in clause (d) below or the delivery by the Administrative Agent of written notice stating that it is a “Servicer Replacement Event Notice” to the Borrower after any other event described below shall have occurred and be continuing:
(a)    any failure by the Servicer or the Performance Guarantor to (i) make any payment or deposit required hereunder or (ii) timely deliver the Periodic Report and, in either case, the continuance of such failure for a period of five (5) Business Days; provided, that in the case of a failure to make a deposit required under Section 1.6(a) hereof, the five (5) Business Day grace period shall only apply to four such failures during any twelve (12) month period; or
(b)    the Originator, the Servicer or the Performance Guarantor fails to observe or perform any term, covenant or agreement under any Transaction Document which failure materially and adversely affects the interests of the Lenders (for purposes of determining whether such failure materially and adversely affects the interests of the Lenders, all references in any such term, covenant or agreement to any materiality, Material Adverse Effect, in all material respects or other similar qualifier contained in or otherwise applicable to such term, covenant or agreement shall be disregarded and given no effect), and such failure remains unremedied for sixty (60) days after the earlier of actual knowledge of the Originator, the Servicer or the Performance Guarantor, or the Originator, the Servicer or the Performance Guarantor having received written notice thereof from the Administrative Agent or any Lender; or

I-26

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

(c)    any written representation or warranty made by the Originator, the Servicer or the Performance Guarantor in any Transaction Document shall have been incorrect in any respect when made and such incorrect representation or warranty materially and adversely affects the rights of the Lenders (for purposes of determining whether such failure materially and adversely affects the interests of the Lenders, all references in any such representation or warranty to any materiality, Material Adverse Effect, in all material respects or other similar qualifier contained in or otherwise applicable to such representation or warranty shall be disregarded and given no effect), and such incorrect representation or warranty remains unremedied for sixty (60) days after the earlier of actual knowledge of the Originator, the Servicer or the Performance Guarantor, or the Originator, the Servicer or the Performance Guarantor having received written notice thereof from the Administrative Agent or any Lender; it being understood that any repurchase of a Receivable by the Originator pursuant to Section 2.8 of the Sale Agreement shall be deemed to remedy any incorrect representation or warranty with respect to such Receivable; or
(d)    the Servicer or the Performance Guarantor suffers a Bankruptcy Event; or
(e)    the occurrence of an Event of Default; or
(f)    the occurrence of a Downgrade Event.
provided, however , that a delay or failure of performance under clauses (a), (b) or (c) above for a period of thirty (30) days beyond the applicable cure period will not constitute a Servicer Replacement Event if such delay or failure was caused Force Majeure Event.
“Servicing Fee” means, for any Monthly Period (calculated on the basis of a 360-day year for actual days elapsed), an amount equal to the Servicing Fee Rate multiplied by the Serviced Balance for such Monthly Period.
“Servicing Fee Rate” means [●]% per annum, or such other rate as may be agreed upon between the Administrative Agent and a successor Servicer.
“Settlement Date” means the 20th day of each calendar month commencing on July 20, 2015; provided, however, whenever a Settlement Date would otherwise be a day that is not a Business Day, the Settlement Date shall be the next Business Day.  As used herein, the “related” Settlement Date with respect to a Monthly Period shall be the Settlement Date which follows such Monthly Period.
“Special Purpose Entity” means any special purpose corporation, partnership, limited partnership, trust, statutory trust, limited liability company or other entity created for one or more financings.
“Subordinated Hedge Termination Payment” means any Hedge Termination Payment owed by the Borrower to the Hedge Counterparty under a Hedge Agreement where the Hedge Counterparty is the “defaulting party” or sole “affected party” (other than with respect to “illegality” or a “tax event”), as each such term is defined in such Hedge Agreement.

I-27

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Subordinated Monthly Interest and Fees” means, with respect to any Settlement Date, (x) the sum of (a) all Interest for the related Monthly Period and all accrued and unpaid Interest for any prior Monthly Periods, plus (b) all Unused Fees for the related Monthly Period and all accrued and unpaid Unused Fees for any prior Monthly Period less (y) the Senior Monthly Interest and Fees for such Settlement Date.“Supplemental Servicing Fees” means any and all (i) late fees, (ii) extension fees, (iii) prepayment charges, (iv) early termination fees, (v) non-sufficient funds charges, (vi) documentation fees and (vii) any and all other administrative fees or similar charges allowed by applicable law received by or on behalf of the Servicer, the Borrower or the Originator with respect to any Receivable.
“Take-Out Securitization” means (a) a financing transaction of any sort undertaken by the Originator or any Affiliate of the Originator secured, directly or indirectly, by any Receivables or (b) any other asset securitization, secured loans or similar transactions involving any Receivables or any beneficial interest therein.
“Targeted Loan Amount” means, with respect to any date of determination (x) on any date prior to the Turbo Amortization Date, the product of (a) the Advance Rate and (b) the Adjusted Included Balance on such date and (y) from and after the Turbo Amortization Date, zero ($0)
“TFS” is defined in the preamble.
“TFS Indemnified Losses” is defined in Section 7.1(c).
“Transaction Documents” means this Agreement, the Fee Letter, the Sale Agreement, any Hedge Agreement, the Performance Guaranty and all other documents, instruments and agreements executed or furnished on the Closing Date in connection herewith and therewith, as the same may be amended or modified from time to time.
“Transfer Request” means the Transfer Request in substantially the form of Exhibit B.
“Turbo Amortization Date” means the earliest to occur of (1) the Payment Date in the thirteenth (13th) month after the Scheduled Termination Date, (2) the occurrence of an Early Amortization Event and (3) the occurrence of an Event of Default.
“UCC” means, for any state, the Uniform Commercial Code as in effect in such state.
“Underwriting Guidelines” means the Originator’s guidelines, policies and procedures, as in effect from time to time in accordance with the Sale Agreement.
“Unused Fee” means the fee payable by the Borrower to the Administrative Agent for each Monthly Period which shall equal the product of (i) the Unused Fee Rate, (ii) an amount equal to the excess of (A) the average daily Facility Limit during such Monthly Period, over (B) the sum of the average daily Loan Amounts for all Lenders during such Monthly Period and (iii) a fraction, the numerator of which is the number of days in the Monthly Period (or, in the case of the initial Monthly Period, the period from and including the Closing Date to and including the last day of such Monthly Period), and the denominator of which is 360.

I-28

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

“Unused Fee Rate” shall have the meaning specified in the Fee Letter.
“USA” means the United States of America (including all states, the District of Columbia and political subdivisions thereof).
“U.S. Adjusted Included Balance” means, on any day, an amount equal to (a) the U.S. Included Balance on such day minus (b) the Excess Concentration Amount on such day, if any.
“U.S. Included Balance” means, (x) for any day, the aggregate Discounted Receivable Balance as of the end of the preceding month (or, for Eligible Receivables which did not exist as of the end of the preceding calendar month, the Initial Discounted Receivable Balance of such Receivable) of all Eligible Receivables (excluding Canadian Receivables) on such day and (y) for any Monthly Period, the sum of the aggregate Discounted Receivable Balance as of the beginning of such Monthly Period of all Eligible Receivables (excluding Canadian Receivables) at the beginning of such Monthly Period plus the aggregate Discounted Receivable Balance as of the beginning of such Monthly Period (or, for Eligible Receivables which did not exist at the beginning of such Monthly Period, the Initial Discounted Receivable Balance of such Receivable) of all Eligible Receivables (excluding Canadian Receivables) which were acquired by the Borrower during such Monthly Period.  
 “U.S. Targeted Loan Amount” means for any date of determination following the occurrence and continuance of a Canadian Amortization Event, (x) on any date prior to the Turbo Amortization Date, the product of (a) the Advance Rate and (b) the U.S. Adjusted Included Balance on such date and (y) from and after the Turbo Amortization Date, zero ($0).
“Volcker Rule” is defined in Section 4.1(i).
“Weighted Average Fixed Rate” means, for any Settlement Date and with respect to all Hedge Transactions in effect during the related Monthly Period, the product of (a) an amount equal to (i) the sum of the “fixed-rate” payments payable by the Borrower under the related Hedge Agreements with respect to such Monthly Period divided by (ii) the average daily Hedge Notional Amount during such Monthly Period times (b) twelve (12).
“Weighted Average Floating Rate” means, for any Settlement Date and with respect to all Hedge Transactions in effect during the related Monthly Period, the product of (a) an amount equal to (i) the sum of the “floating-rate” payments payable by the Hedge Counterparty to the Borrower (or the Servicer on behalf of the Seller) under the related Hedge Agreements with respect to such Monthly Period divided by (ii) the average daily Hedge Notional Amount during such Monthly Period times (b) twelve (12).
The foregoing definitions shall be equally applicable to both the singular and plural forms of the defined terms.  Unless otherwise inconsistent with the terms of this Agreement, all accounting terms used herein shall be interpreted, and all accounting determinations hereunder shall be made, in accordance with GAAP.  Amounts to be calculated hereunder shall be continuously recalculated at the time any information relevant to such calculation changes.  All terms used in Article 9 of the 

I-29

“[●]” Indicates that text has been omitted which is the subject of a confidential treatment request. This text has been separately filed with the SEC.

UCC in the State of New York and not specifically defined herein are used herein as defined in such Article 9.

I-30

EXHIBIT A
FORM OF PERIODIC REPORT
(on file with the Servicer and Administrative Agent)

A-1

EXHIBIT B
FORM OF TRANSFER REQUEST
[DATE]
Credit Suisse AG, New York Branch, as Administrative Agent  
[Insert Address]
TFS FUNDING I, LLC, a Delaware limited liability company (the “Borrower”), hereby delivers this certificate to Credit Suisse AG, New York Branch, as Administrative Agent (the “Administrative Agent”), pursuant to Section 2.4(a) of that certain Loan and Security Agreement dated as of May 28, 2015 among the Borrower, Terex Financial Services, Inc., as servicer, the Conduit Lenders from time to time party thereto, the Committed Lenders from time to time party hereto, and the Administrative Agent (as amended from time to time, the “Loan Agreement”), in connection with the Borrower’s request for release of the Administrative Agent’s security interest in the Receivables identified on Schedule I hereto (the “Released Receivables”) together with the other items of related Collateral (such other items of related Collateral, together with the Released Receivables, the “Released Collateral”).  Capitalized terms used but not defined herein have the meanings given to such terms in the Loan Agreement.
The Borrower hereby represents, warrants, acknowledges and agrees that: 
1.    after giving effect to the release of the Released Collateral, the Loan Amount does not exceed the [Targeted Loan Amount][U.S. Targeted Loan Amount] and the Borrower has determined that sufficient Available Funds will be available in the Collection Account on the next Settlement Date for payments in accordance with and to the extent required by the provisions of Section 1.6(a)(i) to (v) on such Settlement Date;
2.    proceeds from the sale or transfer of the Released Collateral in an amount equal to the Required Payoff Amount (as defined in Section 2.4(e) of the Loan Agreement) shall be paid to the Administrative Agent.
All other conditions precedent in Section 2.4(a) are satisfied or will be after giving effect to the transfer requested hereby.
[SIGNATURE FOLLOWS]

B-1

IN WITNESS WHEREOF, the Borrower has caused this certificate to executed by the undersigned authorized officer as of the date above first written.
TFS FUNDING I, LLC
By:_______________________________ 
Name: 
Title:

    

SCHEDULE I
RELEASED RECEIVABLES

    

EXHIBIT C
FORM OF ADDITION NOTICE
[________], 2015
	
		
	To:   Credit Suisse AG, New York Branch, as Administrative Agent
[Insert Address]
	 

		
	Re:
	Loan Request under the Loan and Security Agreement (the “Loan Agreement”), dated as of May 28, 2015 among Terex Funding I, LLC, Terex Financial Services, Inc., as servicer, the Conduit Lenders from time to time party thereto, the Committed Lenders from time to time party hereto, and Credit Suisse AG, New York Branch, as Administrative Agent.

Ladies and Gentlemen:
The Borrower hereby requests a loan pursuant to Section 1.1 of the Loan Agreement.
1.    The borrowing requested hereby is $[_________]. 
2.    The date for the loan requested hereby is [_______].
3.    Additional Receivables with a Discounted Receivables Balance of $[___________], as of the Cut-Off Date, will be added to the Financed Receivables.
4.    The Included Balance as of the applicable Borrowing Date (after giving effect to any additions or deletions on such date), will be $[______________]. [The U.S. Included Balance as of the applicable Borrowing Date (after giving effect to any additions or deletions on such date), will be $[______________].]
5.    The [Targeted Loan Amount] [U.S. Targeted Loan Amount] (after giving effect to the requested Loan and any additions to or deletions from the Included Balance on such Borrowing Date) will be $[______________].
6.    The proceeds of the requested Loan should be deposited into the following account located in the United States of America:
[______________]
[Insert Wire Instructions]

7.    Attached hereto as Schedule A is a Schedule of Additional Receivables.

Capitalized terms used herein and not otherwise defined herein shall have the meanings as ascribed to such terms in the Loan Agreement.

C-1

[SIGNATURE PAGE FOLLOWS]
 
 
 
Very truly yours, 
 
TEREX FUNDING I, LLC
By:_______________________________
Name: 
Title:

716811044 14470169

SCHEDULE A
SCHEDULE OF ADDITIONAL RECEIVABLES

    

EXHIBIT D
HEDGING STRATEGY
On or prior to the making of the Loan and each Settlement Date, if the Aggregate Loan Amount exceeds the Hedge Notional Amount by more than $10,000,000, the Borrower shall enter into one or more Hedge Agreements with respect to the Receivables related to the Loan, provided that each such Hedge Transaction shall:
(i)    be entered into with a Hedge Counterparty and be governed by a Hedge Agreement;
(ii)    have a schedule of monthly payment periods coinciding with each Settlement Date;
(iii)    have an amortizing notional amount such that (x) the Hedge Notional Amount in effect on such date is equal to 100% of the Loan Amount and (y) the Hedge Notional Amount during each Monthly Period thereafter is equal to 100% of the projected Loan Amount during such Monthly Period (projected assuming that the portion of principal collections in respect of the Receivables in the Receivables Pool that is attributable to the Loan Amount will be applied in repayment of the Loan Amount, as reasonably determined by the Servicer and the Administrative Agent based upon the scheduled Monthly Contract Payments of the Receivables in the Receivables Pool and expected loss, delinquency, default and prepayment rates with respect thereto, but, for the avoidance of doubt, determined using the Loan Amount on the Closing Date or Settlement Date, as applicable); and
(iv)    provide for two series of monthly payments to be netted against each other, one such series being payments to be made by the Borrower to a Hedge Counterparty (solely on a net basis) by reference to the applicable Hedge Rate for such Hedge Transaction, and the other such series being payments to be made by the Hedge Counterparty to the Servicer (or, when the Daily Remittance Condition is in effect, the Collection Account), for the benefit of each Lender (solely on a net basis) by reference to either the “USD-LIBOR” rate (as each such term is defined in the 2000 ISDA Definitions published by the International Swap and Derivatives Association, Inc.), as determined by the Servicer (on behalf of the Borrower), as in effect on the first day of each monthly payment period, the net amount of which shall be deemed to be Available Funds (if payable by the Hedge Counterparty) or shall be paid by the Borrower to the Hedge Counterparty to the extent funds are available under Section 1.6 of this Agreement.
Notwithstanding the foregoing, on the date of such Loan or on any Settlement Date, as applicable, one or more such Hedge Transactions may be combined into a single Hedge Transaction, in the aggregate, which satisfies the requirements set forth in this Exhibit D.
In addition, if, on any Settlement Date occurring on or after the date on which the Commitment Termination Date has occurred with respect to all Lenders, the Hedge Notional Amount is less than 90% of the Loan Amount on such date, the Servicer shall cause the Borrower to, within 

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thirty (30) days, enter into one or more Hedge Transactions or amendments to existing Hedge Transactions (in each case acceptable to the Administrative Agent) such that the Hedge Notional Amount at such time shall be equal to the Loan Amount at such time.  If, on any Settlement Date occurring on or after the date on which the Facility Termination Date has occurred with respect to all Lenders, the Hedge Notional Amount is greater than 110% of the Aggregate Loan Amount at such time, the Servicer shall cause the Borrower to, within thirty (30) days, amend or terminate existing Hedge Transactions such that the Hedge Notional Amount at such time shall be equal to the Loan Amount at such time; provided that the Hedge Transaction(s) with the lowest close-out amounts being owed by either party (as reasonably agreed by the applicable Hedge Counterparty(s) and Borrower (or the Servicer on its behalf), and if such parties cannot agree, then as determined by the Administrative Agent) shall be terminated by the Borrower (or the Servicer on its behalf) in order to effect the foregoing.  Any Hedge Transactions entered into pursuant to this paragraph shall satisfy the requirements set forth in clauses (i) through (iv) above.
All Hedge Termination Payments and other costs incurred in connection with the transactions contemplated by the foregoing paragraph shall be paid by the Servicer. In addition, if the Covered Amount on any Settlement Date (whether before or after the Facility Termination Date) is greater than zero ($0), the Servicer shall pay to Borrower on such Settlement Date by transfer of immediately available funds to the Collection Account, an amount equal to such Covered Amount, and any such amounts shall be deemed to be Collections and shall be distributed in accordance with Section 1.6 on such Settlement Date.  The Servicer shall be entitled to reimbursement of any amounts paid by it pursuant to this paragraph in accordance with, and solely to the extent funds are available therefor under, Section 1.6. 
Each Hedge Counterparty shall be selected by the Servicer; provided, however, that each Hedge Counterparty other than Credit Suisse International (a) that does not meet or subsequently ceases to meet the First Rating Threshold shall be required to (x) post collateral, (y) obtain an Eligible Guarantee from a third party that satisfies the First Rating Threshold or (z) effect a transfer of its obligations under the Hedge Agreement to a third party that satisfies the First Rating Threshold and (b) that does not meet or subsequently ceases to meet the Second Rating Threshold shall be required to (x) post collateral and (y) (1) obtain an Eligible Guarantee from a third party that satisfies the First Rating Threshold or (2) effect a transfer of its obligations under the Hedge Agreement to a third party that satisfies the First Rating Threshold.  
To ensure the most competitive fixed rate, when selecting a Hedge Counterparty, the Servicer will generally solicit offers from different Hedge Counterparties, but shall be under no obligation to do so.  For purposes of this paragraph, the following terms shall have the following meanings:
“Eligible Guarantee” means an unconditional and irrevocable guarantee of all present and future obligations of the Hedge Counterparty under the related Hedge Agreement that is provided by a guarantor as principal debtor rather than surety and is directly enforceable by the Borrower, where either (A) a law firm has given a legal opinion confirming that none of the guarantor’s payments to the Borrower under such guarantee will be subject to withholding for tax purposes or (B) such guarantee provides that, in the event that any of such guarantor’s payments 

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to the Borrower are subject to withholding for tax purposes, such guarantor is required to pay such additional amount as is necessary to ensure that the net amount actually received by the Borrower (free and clear of any withholding tax) will equal the full amount the Borrower would have received had no such withholding been required.
“First Rating Threshold” means, with respect to an entity, (a) the rating of its long term, unsecured, unsubordinated and unguaranteed debt obligations is at least as high as either (i) “A (flat)” by DBRS or (ii) the equivalent thereof by any two of Fitch, Moody’s or S&P.
“Second Rating Threshold” means, with respect to an entity, the rating of its long term, unsecured, unsubordinated and unguaranteed debt obligations is (i) “BBB (flat)” by DBRS or (ii) the equivalent thereof by any of Fitch, Moody’s or S&P.

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