Document:

Exhibit 4.63

 

 

TAL ADVANTAGE IV LLC

Issuer

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

Indenture Trustee

 

 

SERIES 2011-2 SUPPLEMENT

Dated as of May 13, 2011

 

to

 

INDENTURE

Dated as of June 28, 2010

 

 

SERIES 2011-2, FIXED RATE SECURED NOTES

 

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
 
    	
Page
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE I
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Definitions; Calculation Guidelines
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Section 101.
    	
 
    	
Definitions
    	
 
    	
1
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE II
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Creation of the Series 2011-2 Notes
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Section 201.
    	
 
    	
Designation
    	
 
    	
6
    	
 
    
	
Section 202.
    	
 
    	
Authentication and Delivery
    	
 
    	
6
    	
 
    
	
Section 203.
    	
 
    	
Interest Payments on the Series 2011-2 Notes
    	
 
    	
7
    	
 
    
	
Section 204.
    	
 
    	
Principal Payments on the Series 2011-2 Notes
    	
 
    	
7
    	
 
    
	
Section 205.
    	
 
    	
Prepayment of Principal on the Series 2011-2 Notes
    	
 
    	
8
    	
 
    
	
Section 206.
    	
 
    	
Restrictions on Transfer
    	
 
    	
8
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE III
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Series 2011-2 Series Account and   Allocation and Application of Amounts Therein
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Section 301.
    	
 
    	
Series 2011-2 Series Account
    	
 
    	
14
    	
 
    
	
Section 302.
    	
 
    	
Investment of Funds
    	
 
    	
14
    	
 
    
	
Section 303.
    	
 
    	
Distributions from Series 2011-2 Series Account
    	
 
    	
14
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE IV
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
[Reserved]
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE V
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Conditions to Issuance
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Section 501.
    	
 
    	
Conditions to Issuance
    	
 
    	
16
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VI
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Representations and Warranties
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Section 601.
    	
 
    	
Existence
    	
 
    	
16
    	
 
    
	
Section 602.
    	
 
    	
Authorization
    	
 
    	
17
    	
 
    
	
Section 603.
    	
 
    	
No Conflict; Legal Compliance
    	
 
    	
17
    	
 
    
	
Section 604.
    	
 
    	
Validity and Binding Effect
    	
 
    	
17
    	
 
    
	
Section 605.
    	
 
    	
Financial Conditions
    	
 
    	
17
    	
 
    
	
Section 606.
    	
 
    	
Place of Business
    	
 
    	
17
    	
 
    
	
Section 607.
    	
 
    	
No Agreements or Contracts
    	
 
    	
17
    	
 
    
	
Section 608.
    	
 
    	
Consents and Approvals
    	
 
    	
17
    	
 
    

 

i

 

TABLE OF CONTENTS (cont’d)

 

	
 
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Section 609.
    	
 
    	
Margin Regulations
    	
 
    	
18
    
	
Section 610.
    	
 
    	
Taxes
    	
 
    	
18
    
	
Section 611.
    	
 
    	
Other Regulations
    	
 
    	
18
    
	
Section 612.
    	
 
    	
Solvency and Separateness
    	
 
    	
19
    
	
Section 613.
    	
 
    	
Survival of Representations and Warranties
    	
 
    	
19
    
	
Section 614.
    	
 
    	
No Default
    	
 
    	
19
    
	
Section 615.
    	
 
    	
Litigation and Contingent Liabilities
    	
 
    	
19
    
	
Section 616.
    	
 
    	
Title; Liens
    	
 
    	
20
    
	
Section 617.
    	
 
    	
Subsidiaries
    	
 
    	
20
    
	
Section 618.
    	
 
    	
No Partnership
    	
 
    	
20
    
	
Section 619.
    	
 
    	
Pension and Welfare Plans
    	
 
    	
20
    
	
Section 620.
    	
 
    	
Ownership of the Issuer
    	
 
    	
20
    
	
Section 621.
    	
 
    	
Security Interest Representations
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VII
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Miscellaneous Provisions
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Section 701.
    	
 
    	
Ratification of Indenture
    	
 
    	
23
    
	
Section 702.
    	
 
    	
Counterparts
    	
 
    	
23
    
	
Section 703.
    	
 
    	
Governing Law
    	
 
    	
23
    
	
Section 704.
    	
 
    	
Notices to the Rating Agency
    	
 
    	
23
    
	
Section 705.
    	
 
    	
Amendments and Modifications
    	
 
    	
23
    
	
Section 706.
    	
 
    	
Consent to Jurisdiction
    	
 
    	
24
    
	
Section 707.
    	
 
    	
Waiver of Jury Trial
    	
 
    	
24
    
	
Section 708.
    	
 
    	
No Petition
    	
 
    	
24
    

 

ii

 

TABLE OF CONTENTS (cont’d)

 

EXHIBITS

 

	
EXHIBIT A-1
    	
 
    	
Form of 144A Global Note
    
	
EXHIBIT A-2
    	
 
    	
Form of   Temporary Regulation S Global Note
    
	
EXHIBIT A-3
    	
 
    	
Form of   Permanent Regulation S Global Note
    
	
EXHIBIT A-4
    	
 
    	
Form of   Note Issued to Institutional Accredited Investors
    
	
EXHIBIT B
    	
 
    	
Form of   Certificate to be Given by Noteholders
    
	
EXHIBIT C
    	
 
    	
Form of   Certificate to be Given by Euroclear or Clearstream
    
	
EXHIBIT D
    	
 
    	
Form of   Certificate to be Given by Transferee of Beneficial Interest In a Temporary   Regulation S Global Note
    
	
EXHIBIT E
    	
 
    	
Form of   Transfer Certificate for Exchange or Transfer From 144A Note to Regulations S   Note
    
	
EXHIBIT F
    	
 
    	
Form of   Initial Purchaser Exchange Instructions
    
	
 
    	
 
    	
 
    
	
SCHEDULES
    
	
 
    	
 
    	
 
    
	
SCHEDULE   1
    	
 
    	
Series 2011-2   Minimum Targeted Principal Balances by Payment Date
    
	
 
    	
 
    	
Series 2011-2   Scheduled Targeted Principal Balances by Payment Date
    

 

iii

 

THIS SERIES 2011-2 SUPPLEMENT, dated as of May 13, 2011 (as amended, modified and supplemented from time to time in accordance with the terms hereof, this “Supplement”), is between TAL ADVANTAGE IV LLC, a limited liability company organized under the laws of Delaware (the “Issuer”), and Wells Fargo Bank, National Association, a national banking association, as Indenture Trustee (the “Indenture Trustee”).

 

WHEREAS, pursuant to the Indenture, dated as of June 28, 2010 (as amended, modified or supplemented from time to time in accordance with its terms, the “Indenture”), between the Issuer and the Indenture Trustee, the Issuer may from time to time direct the Indenture Trustee to authenticate one or more new Series of Notes. The Principal Terms of any new Series are to be set forth in a Supplement to the Indenture.

 

WHEREAS, pursuant to this Supplement, the Issuer and the Indenture Trustee shall create a new Series of Notes (“Series 2011-2”) and specify the Principal Terms thereof.

 

NOW THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto agree as follows:

 

ARTICLE I

 

Definitions; Calculation Guidelines

 

Section 101.           Definitions.  (a)  Whenever used in this Supplement, the following words and phrases shall have the following meanings, and the definitions of such terms are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms.

 

“144A Global Notes” means the 144A Global Notes substantially in the form of Exhibit A-1 hereto.

 

“2011-2 Closing Date” means May 13, 2011.

 

“Aggregate Series 2011-2 Note Principal Balance” means, as of any date of determination, an amount equal to the sum of the Series 2011-2 Note Principal Balances of all Series 2011-2 Notes then Outstanding, which as of the 2011-2 Closing Date shall be Two Hundred Thirty-Five Million Dollars ($235,000,000).

 

“Benefit Plan”  means an “employee benefit plan” as defined in Section 3(3) of ERISA that is subject to Title I of ERISA, a “plan” within the meaning of Section 4975(e)(1) of the Code or an entity whose underlying assets include “plan assets” of any of the foregoing by reason of an employee benefit plan’s or plan’s investment in such entity.

 

“Clearing Agency” means, with respect to any Global Note, any Person designated as such by the Issuer, which Person must be registered as a “clearing agency” pursuant to Section 17A of the Securities Exchange Act of 1934.

 

 

“Control Party” means, with respect to Series 2011-2, the Majority of Holders of the Series 2011-2 Notes.

 

“Default Fee” means, for any Payment Date on which interest on overdue amounts is payable in accordance with the provisions of Section 203(b) hereof, an amount equal to the excess of (x) the total amount of interest payable on such Payment Date, including the amount of interest otherwise payable on such Payment Date pursuant to the provisions of Section 203(b), over (y) the amount of interest that would have been payable on such Payment Date if no payment default had occurred.

 

“Default Rate” means, for any date of determination, an interest rate per annum equal to two percent (2.00%).

 

“Deficiency Amount” means (a) for any Payment Date other than the Series 2011-2 Legal Final Maturity Date, any shortfall in the aggregate amount available in the Series 2011-2 Series Account for the Series 2011-2 Notes or any other amounts available under the Indenture or this Supplement to pay the Series 2011-2 Note Interest Payment due and payable on all Series 2011-2 Notes on such Payment Date, and (b) on the Series 2011-2 Legal Final Maturity Date, any shortfall in the aggregate amount available in the Series 2011-2 Series Account or any other amounts available under the Indenture or this Supplement to pay the then Aggregate Series 2011-2 Note Principal Balance and accrued but unpaid Series 2011-2 Note Interest Payments.

 

“Definitive Note” shall have the meaning set forth in Appendix A to the Indenture.

 

“Dollars” and the sign “$” mean lawful money of the United States of America.

 

“DTC” shall have the meaning set forth in Section 206.

 

“Initial Purchaser” means Wells Fargo Securities, LLC, a Delaware limited liability company.

 

“Institutional Accredited Investors” shall have the meaning set forth in Section 206.

 

“Majority of Holders” means, with respect to the Series 2011-2 Notes as of any date of determination, the Series 2011-2 Noteholders holding Series 2011-2 Notes constituting more than fifty percent (50%) of the then Aggregate Series 2011-2 Note Principal Balance.

 

“Minimum Principal Payment Amount” means, for the Series 2011-2 Notes on any Payment Date, the excess, if any, of (x) the then Aggregate Series 2011-2 Note Principal Balance over (y) the Minimum Targeted Principal Balance for the Series 2011-2 Notes for such Payment Date.

 

“Minimum Targeted Principal Balance” means for the Series 2011-2 Notes for each Payment Date, the amount set forth opposite such Payment Date on Schedule 1 hereto

 

2

 

under the column titled “Minimum Targeted Principal Balance”, as the amounts on Schedule 1 hereto may be amended from time to time in accordance with the provisions of the Indenture.

 

“Moody’s” shall mean Moody’s Investors Service, Inc. and any successor thereto.

 

“Notice” means the telephonic or telegraphic notice, promptly confirmed in writing by telecopy in the form required by the Policy, the original of which is subsequently delivered by registered or certified mail, for the Indenture Trustee specifying the Insured Amount which shall be due and owing on the applicable Payment Date.

 

“Permanent Regulation S Global Notes” means the Permanent Regulation S Global Notes substantially in the form of Exhibit A-3.

 

“Qualified Institutional Buyers” shall have the meaning set forth in Section 206.

 

“Rating Agency” means, for Series 2011-2, S&P.

 

“Regulation S” shall have the meaning set forth in Section 206 hereof.

 

“Regulation S Global Notes” means, collectively, the Temporary Regulation S Global Notes and the Permanent Regulation S Global Notes

 

“Rule 144A” shall have the meaning set forth in Section 206 hereof.

 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw Hill Companies, Inc., and any successor thereto.

 

“Scheduled Principal Payment Amount” means, for the Series 2011-2 Notes for any Payment Date, the excess, if any, of (x) the then Aggregate Series 2011-2 Note Principal Balance (after giving effect to any payment of the Minimum Principal Payment Amount for the Series 2011-2 Notes actually paid on such Payment Date), over (y) the Scheduled Targeted Principal Balance for the Series 2011-2 Notes for such Payment Date.

 

“Scheduled Targeted Principal Balance” means, for the Series 2011-2 Notes for any Payment Date, the amount set forth opposite such Payment Date on Schedule 1 hereto under the column titled “Scheduled Targeted Principal Balance”, as the amounts on Schedule 1 hereto may be amended from time to time in accordance with the provisions of the Indenture.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Series 2011-2” means the Series of Notes the terms of which are specified in this Supplement.

 

“Series 2011-2 Expected Final Maturity Date” means the Payment Date in May, 2021.

 

3

 

“Series 2011-2 Legal Final Maturity Date” means the Payment Date in May, 2026.

 

“Series 2011-2 Note” means any one of the notes issued pursuant to the terms of Section 201(a) of this Supplement, substantially in the form of any of Exhibit A-1, A-2, A-3 or A-4 to this Supplement.

 

“Series 2011-2 Note Interest Payment”  means, for each Series 2011-2 Note on each Payment Date, an amount equal to the product of (i) four and thirty-one hundredths of one percent (4.31%), (ii) the Series 2011-2 Note Principal Balance on the immediately preceding Payment Date and (iii) a fraction, the numerator of which is the actual number of days elapsed in such Interest Accrual Period and the denominator of which is 360.

 

“Series 2011-2 Note Principal Balance” means, with respect to any Series 2011-2 Note as of any date of determination, an amount equal to the excess, if any, of (x) the Series 2011-2 Note Principal Balance of such Series 2011-2 Note as of the 2011-2 Closing Date, over (y) the cumulative amount of all Minimum Principal Payment Amounts, Scheduled Principal Payment Amounts and any other principal payments (including Prepayments) actually paid to the related Series 2011-2 Noteholder subsequent to the 2011-2 Closing Date.

 

“Series 2011-2 Note Purchase Agreement” means the Series 2011-2 Note Purchase Agreement, dated as of May 13, 2011, among the Issuer, the Manager and the Initial Purchaser.

 

“Series 2011-2 Noteholder” means, at any time of determination for the Series 2011-2 Notes, any Person in whose name a Series 2011-2 Note is registered in the Note Register.

 

“Series 2011-2 Series Account” means the account of that name established in accordance with Section 301 hereof.

 

“Series 2011-2 Transaction Documents” means any and all of the Indenture, this Supplement, the Series 2011-2 Notes, the Series 2011-2 Note Purchase Agreement, the Management Agreement, the Contribution and Sale Agreement, the Transition Agent Agreement, any Hedge Agreement and all other Transaction Documents and any and all other agreements, documents and instruments executed and delivered by or on behalf or in support of the Issuer with respect to the issuance and sale of the Series 2011-2 Notes, as any of the foregoing may from time to time be amended, modified, supplemented or renewed.

 

“Temporary Regulation S Global Notes” means the Temporary Regulation S Global Notes substantially in the form of Exhibit A-2.

 

“Transferor” shall have the meaning set forth in Section 206 hereof.

 

“U.S. Person” shall have the meaning set forth in Section 206 hereof.

 

(b)           Capitalized terms used herein and not otherwise defined shall have the meaning set forth in Appendix A to the Indenture or, if not defined therein, as defined in the

 

4

 

Series 2011-2 Note Purchase Agreement.  The rules of usage set forth in such Appendix A shall apply to this Supplement.

 

5

 

ARTICLE II

 

Creation of the Series 2011-2 Notes

 

Section 201.           Designation.  (a)  There is hereby created a Series of Notes to be issued in one Class pursuant to the Indenture and this Supplement to be known respectively as “TAL Advantage IV LLC Series 2011-2 Fixed Rate Secured Notes”.  The Series 2011-2 Notes will be issued in the initial aggregate principal balance of Two Hundred Thirty-Five Million Dollars ($235,000,000) and will not have priority over any other Series, except to the extent set forth in the Supplement for such other Series.  The issuance date of the Series 2011-2 Notes is May 13, 2011.

 

(b)           The Payment Date with respect to the Series 2011-2 Notes shall be the twentieth (20th) calendar day of each month, or, if such day is not a Business Day, the immediately following Business Day, commencing June 20, 2011.

 

(c)           The initial Collection Period with respect to the Series 2011-2 Notes shall commence on May 13, 2011 and end on May 31, 2011.

 

(d)           Payments of principal and interest on the Series 2011-2 Notes shall be payable from funds on deposit in the Series 2011-2 Series Account or otherwise at the times and in the amounts set forth in Article III of the Indenture and Article III of this Supplement.

 

(e)           The Series 2011-2 Notes are classified as “Term Notes”, as such term is used in the Indenture.  The Existing Commitment as such term is used in the Indenture, for the 2011-2 Notes, shall at all times be equal to the Aggregate Series 2011-2 Note Principal Balance as of such date of determination.

 

(f)            In the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the Indenture, the terms and provisions of this Supplement shall govern.

 

Section 202.           Authentication and Delivery.

 

(a)           On the 2011-2 Closing Date, the Issuer shall sign, and shall direct the Indenture Trustee in writing pursuant to Section 201 of the Indenture to duly authenticate, and the Indenture Trustee, upon receiving such direction, (i) shall authenticate (by manual or facsimile signature), subject to compliance with the conditions precedent set forth in Section 501 hereof, the Series 2011-2 Notes in accordance with such written directions, and (ii) subject to compliance with the conditions precedent set forth in Section 501 hereof, shall deliver such Series 2011-2 Notes to the Initial Purchaser in accordance with such written directions.

 

(b)           In accordance with Section 202 of the Indenture, the Series 2011-2 Notes sold in reliance on Rule 144A shall be represented by one or more Rule 144A Global Notes.  Any Series 2011-2 Notes sold in reliance on Regulation S shall be represented by one or more Regulation S Global Notes.  Any Series 2011-2 Notes sold to Institutional Accredited Investors shall be represented by one or more Definitive Notes.

 

6

 

(c)           The Series 2011-2 Notes shall be executed by manual or facsimile signature on behalf of the Issuer by any authorized officer or manager of the Issuer and shall be substantially in the forms of Exhibit A-1, A-2, A-3 and A-4 hereto, as applicable.

 

(d)           The Series 2011-2 Notes shall be issued in minimum denominations of $250,000 and in integral multiples of $1,000 in excess thereof.

 

Section 203.           Interest Payments on the Series 2011-2 Notes.

 

(a)           Interest on Series 2011-2 Notes.  Interest will be due and payable on each Series 2011-2 Note in an amount equal to the Series 2011-2 Note Interest Payment.  Such Series 2011-2 Note Interest Payment shall be payable on each Payment Date from amounts on deposit in the Series 2011-2 Series Account in accordance with Section 303 hereof.  To the extent that the amount of interest which is due and payable on any Payment Date is not paid in full on such date, such shortfall, together with interest thereon at the interest rate otherwise applicable thereto plus the Default Rate, shall be due and payable on the immediately succeeding Payment Date.

 

(b)           Interest on Overdue Amounts.  If the Issuer shall default in the payment of (i) the unpaid principal balance of any Series 2011-2 Notes on the Series 2011-2 Legal Final Maturity Date, (ii) the Series 2011-2 Note Interest Payment on any Series 2011-2 Note when due, or (iii) following the acceleration of the Series 2011-2 Notes in accordance with the terms of the Indenture, any other amount owing under the Indenture not covered in clauses (i) and (ii) which is not paid when due, the Issuer shall from time to time, pay interest on such unpaid amounts, to the extent permitted by Applicable Law, to, but not including, the date of actual payment (after as well as before judgment), at a rate per annum equal to the interest rate otherwise applicable thereto plus the Default Rate, for the period during which such principal, interest or other amount shall be unpaid from the due date of such payment to, but not including, the date of actual payment thereof.  Any such Default Fees shall be payable at the times and subject to the priorities set forth in Section 303 hereof.

 

(c)           Maximum Interest Rate.  In no event shall the interest charged with respect to a Series 2011-2 Note exceed the maximum amount permitted by Applicable Law.  If at any time the interest rate charged with respect to the Series 2011-2 Notes exceeds the maximum rate permitted by Applicable Law, the rate of interest to accrue pursuant to this Supplement and such Series 2011-2 Note shall be limited to the maximum rate permitted by Applicable Law.

 

Section 204.           Principal Payments on the Series 2011-2 Notes.  The principal balance of the Series 2011-2 Notes shall be payable on each Payment Date from amounts on deposit in the Series 2011-2 Series Account in an amount equal to (i) so long as no Early Amortization Event is continuing, the sum of the Minimum Principal Payment Amount and the Scheduled Principal Payment Amount for such Payment Date, to the extent that funds are available for such purpose in accordance with the provisions of part I of Section 302 hereof, or (ii) if an Early Amortization Event is then continuing (or an Event of Default has occurred, but the Series 2011-2 Notes have not been accelerated in accordance with the provisions of Section 802 of the Indenture), the sum of the Minimum Principal Payment Amount, the Scheduled Principal Payment Amount and then unpaid Aggregate Series 2011-2 Note Principal Balance shall be payable in full to the extent that funds are available for such purposes in accordance with

 

7

 

the provisions of Part (II) of Section 303 hereof.  The unpaid principal amount of each Series 2011-2 Note together with all unpaid interest (including all Default Fees), fees, expenses, costs and other amounts payable by the Issuer to the Series 2011-2 Noteholders and the Indenture Trustee pursuant to the terms of the Indenture and this Supplement, shall be due and payable in full on the earlier to occur of (x) the date on which an Event of Default shall occur and the Series 2011-2 Notes have been accelerated in accordance with the provisions of Section 802 of the Indenture and (y) the Series 2011-2 Legal Final Maturity Date.

 

Section 205.           Prepayment of Principal on the Series 2011-2 Notes.

 

(a)           The Aggregate Series 2011-2 Note Principal Balance of the Series 2011-2 Notes shall be required to be prepaid at the time and in the amount of a Supplemental Principal Payment Amount allocated to Series 2011-2 in accordance with Section 702(a) of the Indenture.

 

(b)           On the Payment Date occurring in May 2013 and on each Payment Date thereafter, the Issuer will have the option to prepay, all, or a portion of, the Aggregate Series 2011-2 Note Principal Balance of the Series 2011-2 Notes in a minimum amount of One Hundred Thousand Dollars ($100,000).  The Issuer shall not prepay the Aggregate Series 2011-2 Note Principal Balance of the Series 2011-2 Notes prior to the Payment Date occurring in May 2013; provided, however, that nothing contained herein shall prohibit any allocation to the Series 2011-2 Noteholders of Supplemental Principal Payment Amounts in accordance with the terms of the Indenture on any Payment Date.  Any such Prepayment of all, or a portion of, the Aggregate Series 2011-2 Note Principal Balance shall also include accrued interest to the date of Prepayment on the principal balance being prepaid.  The Issuer may not make such Prepayment from funds in the Trust Account, the Series 2011-2 Series Account or the Restricted Cash Account, except to the extent that funds in any such account would otherwise be payable to the Issuer or available to prepay the Aggregate Series 2011-2 Note Principal Balance in accordance with the terms of the Indenture and this Supplement.

 

(c)           In the event of any prepayment of the Series 2011-2 Notes in accordance with this Section 205 or any other provision of the Indenture, the Issuer shall pay any termination, notional reduction, breakage or other fees or costs assessed by any Hedge Counterparty.

 

(d)           The Issuer shall provide not less than five (5) Business Days prior written notice of any Prepayment to the Indenture Trustee, and the Indenture Trustee shall promptly forward a copy of such notice to the Series 2011-2 Noteholders.

 

Section 206.           Restrictions on Transfer.  (a)  On the 2011-2 Closing Date, the Issuer shall sell the Series 2011-2 Notes to the Initial Purchaser pursuant to the Series 2011-2 Note Purchase Agreement and deliver such Series 2011-2 Notes in accordance herewith and therewith.  Thereafter, no Series 2011-2 Note may be sold, transferred or otherwise disposed of except in compliance with the provisions of the Indenture and except as follows:

 

(A)          to Persons that the transferring Person reasonably believes are Qualified Institutional Buyers in reliance on the exemption from the registration requirements of the Securities Act provided by Rule 144A promulgated thereunder (“Rule 144A”);

 

8

 

(B)           in offshore transactions in reliance on Regulation S under the Securities Act (“Regulation S”);

 

(C)           to institutional “accredited investors” within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act (“Institutional Accredited Investors”) that take delivery of such Series 2011-2 Note in an amount of at least $250,000 and that deliver an Investment Letter substantially in the form of Exhibit C to the Indenture to the Indenture Trustee; or

 

(D)          to a Person who is taking delivery of such Series 2011-2 Notes pursuant to a transaction that is otherwise exempt from the registration requirements of the Securities Act, as confirmed in an Opinion of Counsel by such Person or its transferor addressed to the Indenture Trustee and the Issuer, which counsel and opinion are satisfactory to the Indenture Trustee and the Issuer.

 

The Indenture Trustee shall have no obligations or duties with respect to determining whether any transfers of the Series 2011-2 Notes are made in accordance with the Securities Act or any other law; provided that with respect to Definitive Notes, the Indenture Trustee shall enforce the applicable transfer restrictions in accordance with the terms set forth in this Section 206(a).

 

(b)           Each purchaser (other than the Initial Purchaser) of the Series 2011-2 Notes (including any purchaser, other than the Initial Purchaser, of an interest in the Series 2011-2 Notes which are Global Notes) shall be deemed to have acknowledged and agreed as follows:

 

(i)            It is (A) a qualified institutional buyer as defined in Rule 144A (“Qualified Institutional Buyer”) and is acquiring such Series 2011-2 Notes for its own institutional account or for the account or accounts of a Qualified Institutional Buyer or (B) purchasing such Series 2011-2 Notes in a transaction exempt from registration under the Securities Act and in compliance with the provisions of this Supplement and in compliance with the legend set forth in clause (iv) below or (C) not a U.S. Person as defined in Regulation S (a “U.S. Person”) and is acquiring such Series 2011-2 Notes outside of the United States.

 

(ii)           It is purchasing one or more Series 2011-2 Notes in an amount of at least $250,000 and it understands that such Series 2011-2 Notes may be resold, pledged or otherwise transferred only in an amount of at least $250,000.

 

(iii)          It represents and warrants to the Issuer, the Indenture Trustee and the Initial Purchaser, that either (i) it is not acquiring the Series 2011-2 Note with the plan assets of a Benefit Plan or any other plan that is subject to a law that is similar to Title I of ERISA or Section 4975 of the Code or (ii) the acquisition, holding and disposition of the Series 2011-2 Note will not give rise to a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or any similar applicable law.

 

(iv)          It understands that the Series 2011-2 Notes are being transferred to it in a transaction not involving any public offering within the meaning of the Securities Act, and that, if in the future it decides to resell, pledge or otherwise

 

9

 

transfer any Series 2011-2 Notes, such Series 2011-2 Notes may be resold, pledged or transferred only in accordance with applicable state securities laws and (1) in a transaction meeting the requirements of Rule 144A, to a Person that the seller reasonably believes is a Qualified Institutional Buyer that purchases for its own account (or for the account or accounts of a Qualified Institutional Buyer) and to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A, or (2) (A) to a Person that is an Institutional Accredited Investor, is taking delivery of such Series 2011-2 Notes in an amount of at least $250,000, and delivers an Investment Letter to the Indenture Trustee or (B) to a Person that is taking delivery of such Series 2011-2 Notes pursuant to a transaction that is otherwise exempt from the registration requirements of the Securities Act, as confirmed in an opinion of counsel addressed to the Indenture Trustee, the Issuer and the transferor, which counsel and opinion are satisfactory to the Indenture Trustee, the Issuer and the transferor, or (3) in an offshore transaction in accordance with Rule 903 or 904 of Regulation S.

 

(v)           It is not a Competitor.

 

(vi)          It understands that each Series 2011-2 Note shall bear a legend substantially to the following effect:

 

[For Book-Entry Notes Only: UNLESS THIS SERIES 2011-2 NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE TRANSFEROR OF SUCH NOTE (THE “TRANSFEROR”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SERIES 2011-2 NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR THE USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

 

THIS SERIES 2011-2 NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SERIES 2011-2 NOTE, AGREES THAT SUCH SERIES 2011-2 NOTE MAY BE RESOLD, PLEDGED OR TRANSFERRED ONLY IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS AND (1) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THAT THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT (OR FOR THE ACCOUNT OR ACCOUNTS OF A

 

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QUALIFIED INSTITUTIONAL BUYER) AND TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT OR (3) TO A PERSON (A) THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR,” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT, IS TAKING DELIVERY OF SUCH SERIES 2011-2 NOTE IN AN AMOUNT OF AT LEAST $250,000 AND DELIVERS A PURCHASER LETTER TO THE INDENTURE TRUSTEE IN THE FORM ATTACHED TO THE SUPPLEMENTS OR (B) THAT IS TAKING DELIVERY OF SUCH SERIES 2011-2 NOTE PURSUANT TO A TRANSACTION THAT IS OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, AS CONFIRMED IN AN OPINION OF COUNSEL ADDRESSED TO THE INDENTURE TRUSTEE AND THE ISSUER, WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE ISSUER AND THE INDENTURE TRUSTEE.

 

EACH PURCHASER AND TRANSFEREE OF A SERIES 2011-2 NOTE WILL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (I) IT IS NOT ACQUIRING THE SERIES 2011-2 NOTE WITH THE PLAN ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, A “PLAN” DESCRIBED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” OF ANY OF THE FOREGOING BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN SUCH ENTITY, OR ANY OTHER PLAN THAT IS SUBJECT TO A LAW THAT IS SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE OR (II) THE ACQUISITION, HOLDING AND DISPOSITION OF THE SERIES 2011-2 NOTE WILL NOT GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA, SECTION 4975 OF THE CODE OR ANY SIMILAR APPLICABLE LAW.

 

THIS SERIES 2011-2 NOTE IS NOT GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

 

(vii)         Each investor described in Section 206(a)(B) understands that the Series 2011-2 Notes have not and will not be registered under the Securities Act, that any offers, sales or deliveries of the Series 2011-2 Notes purchased by it in the United States or to U.S. Persons prior to the date that is 40 days after the later of (i) the commencement of the distribution of the Series 2011-2 Notes and (ii) the 2011-2 Closing Date, may constitute a violation of United States law, and that

 

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distributions of principal and interest will be made in respect of such Notes only following the delivery by the holder of a certification of non-U.S. beneficial ownership or the exchange of beneficial interest in Temporary Regulation S Global Notes for beneficial interests in the related Permanent Regulation S Global Notes  (which in each case will itself require a certification of non-U.S. beneficial ownership), at the times and in the manner set forth in this Supplement.

 

(viii)        The Temporary Regulation S Global Notes representing the Series 2011-2 Notes sold to each investor described in Section 206(a)(B) will bear a legend to the following effect, unless the Issuer determines otherwise consistent with Applicable Law:

 

[FOR REGULATION S GLOBAL NOTES ONLY:

 

EACH INVESTOR PURCHASING THIS SERIES 2011-2 NOTE IN RELIANCE UPON REGULATION S OF THE SECURITIES ACT UNDERSTANDS THAT THE SERIES 2011-2 NOTES HAVE NOT AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT, THAT ANY OFFERS, SALES OR DELIVERIES OF THE SERIES 2011-2 NOTES PURCHASED BY IT IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF (I) THE COMMENCEMENT OF THE DISTRIBUTION OF THE SERIES 2011-2 NOTES AND (II) THE CLOSING DATE, MAY CONSTITUTE A VIOLATION OF UNITED STATES LAW, AND THAT DISTRIBUTIONS OF PRINCIPAL AND INTEREST WILL BE MADE IN RESPECT OF SUCH SERIES 2011-2 NOTES ONLY FOLLOWING THE DELIVERY BY THE HOLDER OF A CERTIFICATION OF  NON-U.S. BENEFICIAL OWNERSHIP OR THE EXCHANGE OF BENEFICIAL INTEREST IN REGULATION S TEMPORARY GLOBAL NOTES FOR BENEFICIAL INTERESTS IN THE RELATED UNRESTRICTED BOOK ENTRY NOTES (WHICH IN EACH CASE WILL ITSELF REQUIRE A CERTIFICATION OF NON-U.S. BENEFICIAL OWNERSHIP), AT THE TIMES AND IN THE MANNER SET FORTH IN THE INDENTURE.]

 

(ix)           The Indenture Trustee shall not permit the transfer of any Series 2011-2 Notes unless such transfer complies with the terms of the foregoing legends and, in the case of a transfer (i) to an Institutional Accredited Investor (other than a Qualified Institutional Buyer), the transferee delivers a completed Investment Letter to the Indenture Trustee, or (ii) to a Person other than a Qualified Institutional Buyer or an Institutional Accredited Investor, upon delivery of an Opinion of Counsel satisfactory to the Indenture Trustee, the Issuer and the Transferor, to the effect that the transferee is taking delivery of the Series 2011-2 Notes in a transaction that is otherwise exempt from the registration requirements of the Securities Act, which counsel and opinion are satisfactory to the Indenture Trustee, the Issuer and the Transferor.

 

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(c)           Forms substantially in the form of Exhibit(s) B through F, as appropriate, shall be completed in connection with any transfer of the Series 2011-2 Notes.

 

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ARTICLE III

 

Series 2011-2 Series Account and
 Allocation and Application of Amounts Therein

 

Section 301.           Series 2011-2 Series Account.  The Issuer shall establish on the 2011-2 Closing Date and maintain, so long as any Series 2011-2 Note is Outstanding, an Eligible Account in the name of the Issuer with the Indenture Trustee which shall be designated as  the Series 2011-2 Series Account, which account shall be pledged to the Indenture Trustee for the benefit of the Series 2011-2 Noteholders pursuant to the Indenture and this Supplement.  All deposits of funds by or for the benefit of the Series 2011-2 Noteholders from the Trust Account and the Restricted Cash Account, shall be accumulated in, and withdrawn from, the Series 2011-2 Series Account in accordance with the provisions of the Indenture and this Supplement.

 

Section 302.           Investment of Funds.  Any funds on deposit in the Series 2011-2 Series Account shall be invested in the same manner as the funds deposited and held in the Trust Account.

 

Section 303.           Distributions from Series 2011-2 Series Account.  On each Payment Date and on each other date on which any payment is to be made with respect to the Series 2011-2 Notes in accordance with Sections 203, 204 or 205 hereof, based on the Manager Report (upon which the Indenture Trustee may conclusively rely) the Indenture Trustee shall distribute funds then on deposit in the Series 2011-2 Series Account in accordance with the provisions of either subsection (I), (II) or (III) of this Section 303.

 

(I)            If neither an Early Amortization Event nor an Event of Default shall have occurred and be continuing:

 

(1)           To each Holder of a Series 2011-2 Note on the immediately preceding Record Date, on a pro rata basis an amount equal to its Series 2011-2 Note Interest Payment (exclusive of Default Fees) for such Payment Date;

 

(2)           To each Holder of a Series 2011-2 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the Minimum Principal Payment Amount then due and payable to the Holders of the Series 2011-2 Notes on such Payment Date;

 

(3)           To each Holder of a Series 2011-2 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the Scheduled Principal Payment Amount then due and payable to the Holders of the Series 2011-2 Notes on such Payment Date;

 

(4)           To each Holder of a Series 2011-2 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the Supplemental Principal Payment Amount, if any, allocable to the Series 2011-2 Notes on such Payment Date;

 

(5)           To each Series 2011-2 Noteholder on the immediately preceding Record Date, on a pro rata basis an amount equal to Default Fees (if any) then due and payable pursuant to the Series 2011-2 Transaction Documents; and

 

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(6)           After application of the amounts required to be paid pursuant to Section 302 of the Indenture, to the Issuer or its assigns, any remaining amounts then on deposit in the Series 2011-2 Series Account.

 

(II)           If an Early Amortization Event shall have occurred and be continuing with respect to any Series but no Event of Default shall have occurred and be continuing (or an Event of Default has occurred but the Notes have not been accelerated in accordance with Section 802 of the Indenture):

 

(1)           To each Holder of a Series 2011-2 Note on the immediately preceding Record Date, on a pro rata basis an amount equal to its Series 2011-2 Note Interest Payment (exclusive of Default Fees) for such Payment Date;

 

(2)           To each Holder of a Series 2011-2 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the Minimum Principal Payment Amount then due and payable to the Holders of the Series 2011-2 Notes on such Payment Date;

 

(3)           To each Holder of a Series 2011-2 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the Scheduled Principal Payment Amount then due and payable to the Holders of the Series 2011-2 Notes on such Payment Date;

 

(4)           To each Holder of a Series 2011-2 Note on the immediately preceding Record Date, an amount equal to its pro rata portion of the then Aggregate Series 2011-2 Note Principal Balance until the Aggregate Series 2011-2 Note Principal Balance has been reduced to zero;

 

(5)           To each Holder of a Series 2011-2 Note on the immediately preceding Record Date, pro rata (based on respective amounts due), an amount equal to all Default Fees then due and payable by the Issuer to the Series 2011-2 Noteholders pursuant to the Series 2011-2 Transaction Documents; and

 

(6)           After application of the amounts required to be paid pursuant to Section 302 of the Indenture, to the Issuer or its assigns, any remaining amounts then on deposit in the Series 2011-2 Series Account.

 

(III)         If an Event of Default shall have occurred and be continuing and the Notes of any Series have been declared due and payable and such declaration and its consequences have not been rescinded or annulled:

 

(1)           To each Holder of a Series 2011-2 Note on the immediately preceding Record Date, on a pro rata basis an amount equal to its Series 2011-2 Note Interest Payment (exclusive of Default Fees) then due and payable for such Payment Date to the Holders of the Series 2011-2 Notes;

 

(2)           To each Holder of a Series 2011-2 Note on the immediately preceding Record Date on a pro rata basis, an amount equal to the Aggregate Series 2011-2 Note Principal Balance until the Aggregate Series 2011-2 Note Principal Balance has been reduced to zero;

 

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(3)           To each Holder of a Series 2011-2 Note on the immediately preceding Record Date, pro rata (based on respective amounts due), an amount equal to all Default Fees then due and payable by the Issuer to the Series 2011-2 Noteholders pursuant to the Series 2011-2 Transaction Documents; and

 

(4)           After application of the amounts required to be paid pursuant to Section 302 of the Indenture, to the Issuer or its assigns, any remaining amounts then on deposit in the Series 2011-2 Series Account.

 

Any amounts payable to a Series 2011-2 Noteholder pursuant to this Section 303 shall be made by wire transfer of immediately available funds to the account that such Series 2011-2 Noteholder has designated to the Indenture Trustee in writing at least five Business Days prior to the applicable Payment Date.  Any amounts payable by the Issuer hereunder are contingent upon the availability of funds to make such payment in accordance with the provisions of this Section 303 and, to the extent such funds are not available, shall not constitute a “Claim” (as defined in Section 101(5) of the Bankruptcy Code) against the Issuer in any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings involving the Issuer in the event that such amounts are not paid in accordance with Section 303 of this Supplement.

 

ARTICLE IV

 

[Reserved]

 

ARTICLE V

 

Conditions to Issuance

 

Section 501.           Conditions to Issuance.  The Indenture Trustee shall not authenticate the Series 2011-2 Notes unless (i) all conditions to the issuance of the Series 2011-2 Notes under the Series 2011-2 Note Purchase Agreement shall have been satisfied, and (ii) the Issuer shall have delivered a certificate to the Indenture Trustee to the effect that all conditions set forth in the Series 2011-2 Note Purchase Agreement shall have been satisfied.

 

ARTICLE VI

 

Representations and Warranties

 

To induce the Series 2011-2 Noteholders to purchase the Series 2011-2 Notes hereunder, the Issuer hereby represents and warrants as of the 2011-2 Closing Date to the Indenture Trustee for the benefit of the Series 2011-2 Noteholders that:

 

Section 601.           Existence.  The Issuer is a limited liability company duly organized, validly existing and in compliance under the laws of Delaware.  The Issuer is in good standing and is duly qualified to do business in each jurisdiction where the failure to do so would reasonably be expected to have a material adverse effect upon the Issuer, and has all licenses, permits, charters and registrations the failure to hold which would reasonably be expected to have a material adverse effect on the Issuer.

 

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Section 602.           Authorization.  The Issuer has the power and is duly authorized to execute and deliver this Supplement and the other Series 2011-2 Transaction Documents to which it is a party; the Issuer is and will continue to be duly authorized to borrow monies hereunder and under the Indenture; and the Issuer is and will continue to be authorized to perform its obligations under the Indenture, this Supplement and the other Series 2011-2 Transaction Documents.  The execution, delivery and performance by the Issuer of this Supplement and the other Series 2011-2 Transaction Documents to which it is a party and the borrowings hereunder do not and will not require any consent or approval of any Governmental Authority, stockholder or any other Person which has not already been obtained.

 

Section 603.           No Conflict; Legal Compliance.  The execution, delivery and performance of this Supplement and each of the other Series 2011-2 Transaction Documents and the execution, delivery and payment of the Series 2011-2 Notes will not: (a) contravene any provision of the Issuer’s charter documents, by-laws or other organizational documents; (b) contravene, conflict with or violate any Applicable Law or regulation, or any order, writ, judgment, injunction, decree, determination or award of any Governmental Authority; or (c) violate or result in the breach of, or constitute a default under the Indenture, this Supplement, the other Series 2011-2 Transaction Documents, any other indenture or other loan or credit agreement, or other agreement or instrument to which the Issuer is a party or by which the Issuer, or its property and assets may be bound or affected.  The Issuer is not in violation or breach of or default under any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award or any contract, agreement, lease, license, indenture or other instrument to which it is a party, in each case, in a manner that would reasonably be expected to result in a Material Adverse Change.

 

Section 604.           Validity and Binding Effect.  This Supplement is, and each Series 2011-2 Transaction Document to which the Issuer is a party, when duly executed and delivered, will be, the legal, valid and binding obligations of the Issuer, enforceable against the Issuer in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or other similar laws of general application affecting the enforcement of creditors’ rights or by general principles of equity limiting the availability of equitable remedies.

 

Section 605.           Financial Conditions.  Since December 31, 2010, there has been no Material Adverse Change in the financial condition of the Issuer.

 

Section 606.           Place of Business.  The Issuer’s only “place of business” (within the meaning of Section 9-307 of the UCC) is located at its address determined in accordance with Section 1307 of the Indenture.

 

Section 607.           No Agreements or Contracts.  The Issuer is not now and has not been a party to any contract or agreement (whether written or oral) other than the Series 2011-2 Transaction Documents and the Transaction Documents (as defined in the Indenture).

 

Section 608.           Consents and Approvals.  No approval, authorization or consent of any trustee or holder of any Indebtedness or obligation of the Issuer or of any other Person under any agreement, contract, lease or license or similar document or instrument to which the Issuer is a party or by which the Issuer is bound, is required to be obtained by the Issuer in order to make

 

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or consummate the transactions contemplated under the Series 2011-2 Transaction Documents, except for those approvals, authorizations and consents that have been obtained on or prior to the 2011-2 Closing Date or which the failure to obtain would not reasonably be expected to result in a Material Adverse Change.  All consents and approvals of, filings and registrations with, and other actions in respect of, all Governmental Authorities required to be obtained by the Issuer in order to make or consummate the transactions contemplated under the Series 2011-2 Transaction Documents have been, or prior to the time when required will have been, obtained, given, filed or taken and are or will be in full force and effect other than any such consents, approvals, filings or registrations the failure to so obtain or make would not reasonably be expected to result in a Material Adverse Change.

 

Section 609.           Margin Regulations.  The Issuer does not own any “margin security”, as that term is defined in Regulation U of the Federal Reserve Board, and the proceeds of the Series 2011-2 Notes issued under this Supplement will be used only for the purposes contemplated hereunder. None of such proceeds will be used, directly or indirectly, for the purpose of purchasing or carrying any margin security, for the purpose of reducing or retiring any Indebtedness which was originally incurred to purchase or carry any margin security or for any other purpose which might cause any of the loans under this Supplement to be considered a “purpose credit” within the meaning of Regulations T, U and X.  The Issuer will not take or permit any agent acting on its behalf to take any action which might cause this Supplement or any document or instrument delivered by the Issuer pursuant hereto to violate any regulation of the Federal Reserve Board.

 

Section 610.           Taxes.  All federal, state, local and foreign tax returns, reports and statements required to be filed by the Issuer have been filed with the appropriate Governmental Authorities, and all taxes and other impositions shown thereon to be due and payable by the Issuer have been paid prior to the date on which any fine, penalty, interest or late charge may be added thereto for nonpayment thereof, or any such fine, penalty, interest, late charge or loss has been paid, or the Issuer is contesting its liability therefor in good faith and has fully reserved all such amounts according to GAAP in the financial statements provided pursuant to Section 626 of the Indenture.  The Issuer has paid when due and payable all material charges upon the books of the Issuer and no Governmental Authority has asserted any Lien against the Issuer with respect to unpaid taxes. Proper and accurate amounts have been withheld by the Issuer from its employees for all periods in full and complete compliance with the tax, social security and unemployment withholding provisions of applicable federal, state, local and foreign law and such withholdings have been timely paid to the respective Governmental Authorities.

 

Section 611.           Other Regulations.  The Issuer is not an “investment company,” or an “affiliated person” of, or a “promoter” or “principal underwriter” for, an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended. The issuance of the Series 2011-2 Notes hereunder and the application of the proceeds and repayment thereof by the Issuer and the performance of the transactions contemplated by the Indenture, this Supplement and the other Series 2011-2 Transaction Documents will not violate any provision of the Investment Company Act, or any rule, regulation or order issued by the Securities and Exchange Commission thereunder.

 

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Section 612.           Solvency and Separateness.

 

(i)            The capital of the Issuer is adequate for the business and undertakings of the Issuer.

 

(ii)           Other than with respect to the transactions contemplated hereby, and by the other Series 2011-2 Transaction Documents and the Transaction Documents, the Issuer is not engaged in any business transactions with the Manager except as permitted by the Management Agreement or with the Seller except as permitted by the Contribution and Sale Agreement.

 

(iii)          At all times, at least one (1) member of the board of directors of the Issuer shall qualify as an Independent Manager (as defined in the Issuer’s limited liability company agreement).

 

(iv)          The Issuer’s funds and assets are not, and will not be, commingled with those of the Manager, except as permitted by the Management Agreement.

 

(v)           The Issuer shall maintain (A) correct and complete books and records of account, and (B) minutes of the meetings and other proceedings of its board of managers.

 

(vi)          The Issuer is not insolvent under the Insolvency Law and will not be rendered insolvent by the transactions contemplated by the Series 2011-2 Transaction Documents and after giving effect to such transactions, the Issuer will not be left with an unreasonably small amount of capital with which to engage in its business nor will the Issuer have intended to incur, or believe that it has incurred, debts beyond its ability to pay such debts as they mature.  The Issuer does not contemplate the commencement of insolvency, bankruptcy, liquidation or consolidation Proceedings or the appointment of a receiver, liquidator, trustee or similar official in respect of the Issuer or any of its assets.

 

Section 613.           Survival of Representations and Warranties.  So long as any of the Series 2011-2 Notes shall be Outstanding and until payment and performance in full of the Outstanding Obligations, the representations and warranties contained herein shall have a continuing effect as having been true when made.

 

Section 614.           No Default.  No Event of Default or Early Amortization Event has occurred and is continuing.  No event or condition that with notice or the passage of time (or both) could reasonably be expected to constitute an Event of Default or Early Amortization Event has occurred or is continuing.

 

Section 615.           Litigation and Contingent Liabilities.  No claims, litigation, arbitration proceedings or governmental proceedings by any Governmental Authority are pending or threatened against or are affecting the Issuer the results of which will materially and adversely interfere with the consummation of any of the transactions contemplated by the Indenture, this Supplement or any document issued or delivered in connection therewith or herewith.

 

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Section 616.           Title; Liens.  The Issuer has good, legal and marketable title to each of its respective assets, and none of such assets is subject to any Lien, except for Permitted Encumbrances and the Liens created or permitted pursuant to the Indenture.

 

Section 617.           Subsidiaries.  The Issuer has no subsidiaries.

 

Section 618.           No Partnership.  The Issuer is not a partner or joint venturer in any partnership or joint venture.

 

Section 619.           Pension and Welfare Plans.  During the twelve-consecutive-month period prior to the date of the execution and delivery of this Supplement, no steps have been taken to terminate any Plan, and no contribution failure has occurred with respect to any Plan, sufficient to give rise to a lien under section 302(f) of ERISA.  No condition exists or event or transaction, has occurred with respect to any Plan which could result in the Issuer or any ERISA Affiliate of the Issuer incurring any material liability, fine or penalty.  As of the 2011-2 Closing Date, the Issuer is not a Benefit Plan or any other plan that is subject to a law that is similar to Title I of ERISA or Section 4975 of the Code.

 

Section 620.           Ownership of the Issuer.  On the 2011-2 Closing Date, all of the issued and outstanding membership interests of the Issuer are owned by TAL.

 

Section 621.           Security Interest Representations.

 

(a)           This Supplement and the Indenture create a valid and continuing security interest (as defined in the UCC) in the Collateral in favor of the Indenture Trustee, for the benefit of the Noteholders and any Hedge Counterparty, which security interest is prior to all other Liens (other than Permitted Encumbrances), and is enforceable as such as against creditors of and purchasers from the Issuer.

 

(b)           The Containers constitute “goods” within the meaning of the applicable UCC.  The Leases constitute “tangible chattel paper” within the meaning of the UCC.  The lease receivables constitute “accounts” or “proceeds” of the Leases within the meaning of the UCC.  The Trust Account, the Restricted Cash Account and any Series Accounts constitute “securities accounts” within the meaning of the UCC.  The Issuer’s contractual rights under any Hedge Agreements, the Contribution and Sale Agreement and the Management Agreement constitute “general intangibles” within the meaning of the UCC.

 

(c)           The Issuer owns and has good and marketable title to the Collateral, free and clear of any Lien (whether senior, junior or pari passu), claim or encumbrance of any Person, except for Permitted Encumbrances.

 

(d)           The Issuer has caused the filing of all appropriate financing statements or documents of similar import in the proper filing office in the appropriate jurisdictions under Applicable Law in order to perfect the security interest in the Collateral granted to the Indenture Trustee in this Supplement and the Indenture and such security interest constitutes a perfected security interest in favor of the Indenture Trustee.  All financing statements filed against the Issuer in favor of the Indenture Trustee in connection herewith describing the Collateral contain

 

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a statement to the following effect: “A purchase or acquisition of a security interest in any collateral described in this financing statement will violate the rights of the Secured Party.”

 

(e)           Other than the security interest granted to the Indenture Trustee pursuant to this Supplement and the Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Collateral, except as permitted pursuant to the Indenture.  The Issuer has not authorized the filing of, and is not aware of, any financing statements against the Issuer that include a description of collateral covering the Collateral other than any financing statement or document of similar import (i) relating to the security interest granted to the Indenture Trustee in this Supplement or the Indenture or (ii) that has been terminated.  The Issuer has no actual knowledge of any judgment or tax lien filings against the Issuer.

 

(f)            Pursuant to Section 3.3.5 of the Management Agreement, the Manager has acknowledged that it is holding the Leases, to the extent they relate to the Managed Containers, on behalf of, and for the benefit of, the Indenture Trustee.  None of the Leases that constitute or evidence the Collateral has any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person.  The Seller has caused the filing of all appropriate financing statements or documents of similar import in the proper filing office in the appropriate jurisdictions under Applicable Law in order to perfect the ownership interest of the Issuer (and the Indenture Trustee as its assignee) in the Leases (to the extent that such Leases relate to the Managed Containers) arising under the Contribution and Sale Agreement.

 

(g)           The Issuer has received all necessary consents and approvals required by the terms of the Collateral to the pledge to the Indenture Trustee of its interest and rights in such Collateral hereunder or under the Indenture.

 

(h)           Wells Fargo Bank, National Association (in its capacity as securities intermediary) has identified in its records the Indenture Trustee as the Person having a Security Entitlement in each of the Trust Account, the Restricted Cash Account and any Series Accounts.

 

(i)            The Trust Account, the Restricted Cash Account and any Series Accounts are not in the name of any Person other than the Issuer.  The Issuer has not consented for Wells Fargo Bank, National Association (as the securities intermediary of the Trust Account, the Restricted Cash Account and any Series Accounts) to comply with Entitlement Orders of any Person other than the Indenture Trustee.

 

(j)            No creditor of the Issuer (other than (x) with respect to the Managed Containers, the related lessee and (y) the Manager in its capacity as Manager under the Management Agreement) has in its possession any goods that constitute or evidence the Collateral, other than for purposes of repair, refurbishment, painting, positioning, storage and other similar matters with respect to Managed Containers.

 

The representations and warranties set forth in this Section 621 shall survive until this Supplement is terminated in accordance with its terms and the terms of the Indenture.  Any breaches of the representations and warranties set forth in this Section 621 may be waived by the

 

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Indenture Trustee, only with the prior written consent of the Control Party and with the prior written notice to the Rating Agency.

 

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ARTICLE VII

 

Miscellaneous Provisions

 

Section 701.           Ratification of Indenture.  As supplemented by this Supplement, the Indenture is in all respects ratified and confirmed and the Indenture as so supplemented by this Supplement shall be read, taken and construed as one and the same instrument.

 

Section 702.           Counterparts.  This Supplement may be executed in two or more counterparts, and by different parties on separate counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart of this Supplement by facsimile or by electronic means shall be equally effective as of the delivery of an originally executed counterpart.

 

Section 703.           Governing Law.  THIS SUPPLEMENT SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW BUT OTHERWISE WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW, AND THE RIGHTS, OBLIGATIONS AND REMEDIES OF THE PARTIES HERETO SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF  NEW YORK.

 

Section 704.           Notices to the Rating Agency.  Whenever any notice or other communication is required to be given to the Rating Agency pursuant to the Indenture or this Supplement, such notice or communication shall be delivered to S&P at Standard & Poor’s Ratings Services, 55 Water Street, 41st Floor, New York, New York 10041, Attention:  Asset-Backed Surveillance Group - phone: (212/438-2435), fax: (212/438-2664).  Any rights to notices conveyed to the Rating Agency pursuant to the terms of this Supplement shall terminate immediately if the Rating Agency no longer has a rating outstanding with respect to the Series 2011-2 Notes.

 

Section 705.           Amendments and Modifications.  (a) The terms of this Supplement may be waived, modified or amended only in a written instrument signed by (A) each of the Issuer, the Control Party and the Indenture Trustee and (B) (i) except with respect to the matters set forth in Section 1002(a) of the Indenture, the prior written consent of the Majority of Holders and (ii) if required pursuant to Section 304(g) hereof or pursuant to Section 1001 or 1002(a) of the Indenture and each affected Series 2011-2 Noteholder.  For the purposes of clause (B) of the preceding sentence, any amendment to or modification or waiver of this Supplement shall be deemed a Supplemental Indenture subject to Sections 1001 or 1002 of the Indenture.

 

Prior to the execution of any written instrument pursuant to this Section, the Issuer shall provide a written notice to the Rating Agency setting forth in general terms the substance of any such written instrument.

 

(b)           Promptly after the execution by the Issuer and the Indenture Trustee of any written instrument pursuant to this Section, the Indenture Trustee shall mail to the Noteholders, the Rating Agency, the Series 2011-2 Noteholders and each Hedge Counterparty a

 

23

 

copy of the text of such written instrument. Any failure of the Indenture Trustee to mail such copy, or any defect therein, shall not, however, in any way impair or affect the validity of any such written instrument.

 

Section 706.           Consent to Jurisdiction. ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST ANY PARTY HERETO ARISING OUT OF OR RELATING TO THIS SUPPLEMENT, OR ANY TRANSACTION CONTEMPLATED HEREBY, MAY BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE COUNTY OF NEW YORK, STATE OF NEW YORK AND EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND, SOLELY FOR THE PURPOSES OF ENFORCING THIS SUPPLEMENT, EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING.

 

Section 707.           Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, AS AGAINST THE OTHER PARTIES HERETO, ANY RIGHTS IT MAY HAVE TO A JURY TRIAL IN RESPECT OF ANY CIVIL ACTION OR PROCEEDING (WHETHER ARISING IN CONTRACT OR TORT OR OTHERWISE), INCLUDING ANY COUNTERCLAIM, ARISING UNDER OR RELATING TO THIS SUPPLEMENT OR ANY OTHER SERIES 2011-2 TRANSACTION DOCUMENT, INCLUDING IN RESPECT OF THE NEGOTIATION, ADMINISTRATION OR ENFORCEMENT HEREOF OR THEREOF.

 

Section 708.           No Petition.  The Indenture Trustee, on its own behalf, hereby covenants and agrees, and each Noteholder by its acquisition of a Series 2011-2 Note shall be deemed to covenant and agree, that it will not institute against the Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any Insolvency Law or any other federal or state bankruptcy or similar law, at any time other than on a date which is at least one year and one day after the last date on which any Series 2011-2 Note is Outstanding.  The provisions of this Section 708 shall survive the repayment of the Notes and any termination of this Supplement.

 

[Signature page follows.]

 

24

 

IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Supplement to be duly executed and delivered all as of the day and year first above written.

 

	
 
    	
 
    	
TAL   ADVANTAGE IV LLC, as Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
TAL   International Container Corporation, its Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

Series 2011-2 Supplement

 

 

	
 
    	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION, not individually but solely as Indenture   Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

Series 2011-2 Supplement

 

 

SCHEDULE 1

 

[See Attached]

 

 

Minimum Targeted Principal Balance by Period

 

	
 
    	
 
    	
 
    	
 
    	
Minimum
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Targeted
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Principal
    	
 
    
	
Period 
    	
 
    	
Date
    	
 
    	
Balance
    	
 
    
	
0
    	
 
    	
May-2011
    	
 
    	
$
    	
235,000,000
    	
 
    
	
1
    	
 
    	
Jun-2011
    	
 
    	
233,694,444
    	
 
    
	
2
    	
 
    	
Jul-2011
    	
 
    	
232,388,889
    	
 
    
	
3
    	
 
    	
Aug-2011
    	
 
    	
231,083,333
    	
 
    
	
4
    	
 
    	
Sep-2011
    	
 
    	
229,777,778
    	
 
    
	
5
    	
 
    	
Oct-2011
    	
 
    	
228,472,222
    	
 
    
	
6
    	
 
    	
Nov-2011
    	
 
    	
227,166,667
    	
 
    
	
7
    	
 
    	
Dec-2011
    	
 
    	
225,861,111
    	
 
    
	
8
    	
 
    	
Jan-2012
    	
 
    	
224,555,556
    	
 
    
	
9
    	
 
    	
Feb-2012
    	
 
    	
223,250,000
    	
 
    
	
10
    	
 
    	
Mar-2012
    	
 
    	
221,944,444
    	
 
    
	
11
    	
 
    	
Apr-2012
    	
 
    	
220,638,889
    	
 
    
	
12
    	
 
    	
May-2012
    	
 
    	
219,333,333
    	
 
    
	
13
    	
 
    	
Jun-2012
    	
 
    	
218,027,778
    	
 
    
	
14
    	
 
    	
Jul-2012
    	
 
    	
216,722,222
    	
 
    
	
15
    	
 
    	
Aug-2012
    	
 
    	
215,416,667
    	
 
    
	
16
    	
 
    	
Sep-2012
    	
 
    	
214,111,111
    	
 
    
	
17
    	
 
    	
Oct-2012
    	
 
    	
212,805,556
    	
 
    
	
18
    	
 
    	
Nov-2012
    	
 
    	
211,500,000
    	
 
    
	
19
    	
 
    	
Dec-2012
    	
 
    	
210,194,444
    	
 
    
	
20
    	
 
    	
Jan-2013
    	
 
    	
208,888,889
    	
 
    
	
21
    	
 
    	
Feb-2013
    	
 
    	
207,583,333
    	
 
    
	
22
    	
 
    	
Mar-2013
    	
 
    	
206,277,778
    	
 
    
	
23
    	
 
    	
Apr-2013
    	
 
    	
204,972,222
    	
 
    
	
24
    	
 
    	
May-2013
    	
 
    	
203,666,667
    	
 
    
	
25
    	
 
    	
Jun-2013
    	
 
    	
202,361,111
    	
 
    
	
26
    	
 
    	
Jul-2013
    	
 
    	
201,055,556
    	
 
    
	
27
    	
 
    	
Aug-2013
    	
 
    	
199,750,000
    	
 
    
	
28
    	
 
    	
Sep-2013
    	
 
    	
198,444,444
    	
 
    
	
29
    	
 
    	
Oct-2013
    	
 
    	
197,138,889
    	
 
    
	
30
    	
 
    	
Nov-2013
    	
 
    	
195,833,333
    	
 
    
	
31
    	
 
    	
Dec-2013
    	
 
    	
194,527,778
    	
 
    
	
32
    	
 
    	
Jan-2014
    	
 
    	
193,222,222
    	
 
    
	
33
    	
 
    	
Feb-2014
    	
 
    	
191,916,667
    	
 
    
	
34
    	
 
    	
Mar-2014
    	
 
    	
190,611,111
    	
 
    
	
35
    	
 
    	
Apr-2014
    	
 
    	
189,305,556
    	
 
    
	
36
    	
 
    	
May-2014
    	
 
    	
188,000,000
    	
 
    
	
37
    	
 
    	
Jun-2014
    	
 
    	
186,694,444
    	
 
    
	
38
    	
 
    	
Jul-2014
    	
 
    	
185,388,889
    	
 
    
	
39
    	
 
    	
Aug-2014
    	
 
    	
184,083,333
    	
 
    
	
40
    	
 
    	
Sep-2014
    	
 
    	
182,777,778
    	
 
    
	
41
    	
 
    	
Oct-2014
    	
 
    	
181,472,222
    	
 
    
	
42
    	
 
    	
Nov-2014
    	
 
    	
180,166,667
    	
 
    
	
43
    	
 
    	
Dec-2014
    	
 
    	
178,861,111
    	
 
    
	
44
    	
 
    	
Jan-2015
    	
 
    	
177,555,556
    	
 
    
	
45
    	
 
    	
Feb-2015
    	
 
    	
176,250,000
    	
 
    
	
46
    	
 
    	
Mar-2015
    	
 
    	
174,944,444
    	
 
    
	
47
    	
 
    	
Apr-2015
    	
 
    	
173,638,889
    	
 
    
	
48
    	
 
    	
May-2015
    	
 
    	
172,333,333
    	
 
    
	
49
    	
 
    	
Jun-2015
    	
 
    	
171,027,778
    	
 
    
	
50
    	
 
    	
Jul-2015
    	
 
    	
169,722,222
    	
 
    
	
51
    	
 
    	
Aug-2015
    	
 
    	
168,416,667
    	
 
    
	
52
    	
 
    	
Sep-2015
    	
 
    	
167,111,111
    	
 
    
	
53
    	
 
    	
Oct-2015
    	
 
    	
165,805,556
    	
 
    
	
54
    	
 
    	
Nov-2015
    	
 
    	
164,500,000
    	
 
    
	
55
    	
 
    	
Dec-2015
    	
 
    	
163,194,444
    	
 
    
	
56
    	
 
    	
Jan-2016
    	
 
    	
161,888,889
    	
 
    
	
57
    	
 
    	
Feb-2016
    	
 
    	
160,583,333
    	
 
    
	
58
    	
 
    	
Mar-2016
    	
 
    	
159,277,778
    	
 
    
	
59
    	
 
    	
Apr-2016
    	
 
    	
157,972,222
    	
 
    
	
60
    	
 
    	
May-2016
    	
 
    	
156,666,667
    	
 
    
	
61
    	
 
    	
Jun-2016
    	
 
    	
 
    	
155,361,111
    	
 
    
	
62
    	
 
    	
Jul-2016
    	
 
    	
 
    	
154,055,556
    	
 
    
	
63
    	
 
    	
Aug-2016
    	
 
    	
 
    	
152,750,000
    	
 
    
	
64
    	
 
    	
Sep-2016
    	
 
    	
 
    	
151,444,444
    	
 
    
	
65
    	
 
    	
Oct-2016
    	
 
    	
 
    	
150,138,889
    	
 
    
	
66
    	
 
    	
Nov-2016
    	
 
    	
 
    	
148,833,333
    	
 
    
	
67
    	
 
    	
Dec-2016
    	
 
    	
 
    	
147,527,778
    	
 
    
	
68
    	
 
    	
Jan-2017
    	
 
    	
 
    	
146,222,222
    	
 
    
	
69
    	
 
    	
Feb-2017
    	
 
    	
 
    	
144,916,667
    	
 
    
	
70
    	
 
    	
Mar-2017
    	
 
    	
 
    	
143,611,111
    	
 
    
	
71
    	
 
    	
Apr-2017
    	
 
    	
 
    	
142,305,556
    	
 
    
	
72
    	
 
    	
May-2017
    	
 
    	
 
    	
141,000,000
    	
 
    
	
73
    	
 
    	
Jun-2017
    	
 
    	
 
    	
139,694,444
    	
 
    
	
74
    	
 
    	
Jul-2017
    	
 
    	
 
    	
138,388,889
    	
 
    
	
75
    	
 
    	
Aug-2017
    	
 
    	
 
    	
137,083,333
    	
 
    
	
76
    	
 
    	
Sep-2017
    	
 
    	
 
    	
135,777,778
    	
 
    
	
77
    	
 
    	
Oct-2017
    	
 
    	
 
    	
134,472,222
    	
 
    
	
78
    	
 
    	
Nov-2017
    	
 
    	
 
    	
133,166,667
    	
 
    
	
79
    	
 
    	
Dec-2017
    	
 
    	
 
    	
131,861,111
    	
 
    
	
80
    	
 
    	
Jan-2018
    	
 
    	
 
    	
130,555,556
    	
 
    
	
81
    	
 
    	
Feb-2018
    	
 
    	
 
    	
129,250,000
    	
 
    
	
82
    	
 
    	
Mar-2018
    	
 
    	
 
    	
127,944,444
    	
 
    
	
83
    	
 
    	
Apr-2018
    	
 
    	
$
    	
126,638,889
    	
 
    
	
84
    	
 
    	
May-2018
    	
 
    	
 
    	
125,333,333
    	
 
    
	
85
    	
 
    	
Jun-2018
    	
 
    	
 
    	
124,027,778
    	
 
    
	
86
    	
 
    	
Jul-2018
    	
 
    	
 
    	
122,722,222
    	
 
    
	
87
    	
 
    	
Aug-2018
    	
 
    	
 
    	
121,416,667
    	
 
    
	
88
    	
 
    	
Sep-2018
    	
 
    	
 
    	
120,111,111
    	
 
    
	
89
    	
 
    	
Oct-2018
    	
 
    	
 
    	
118,805,556
    	
 
    
	
90
    	
 
    	
Nov-2018
    	
 
    	
 
    	
117,500,000
    	
 
    
	
91
    	
 
    	
Dec-2018
    	
 
    	
 
    	
116,194,444
    	
 
    
	
92
    	
 
    	
Jan-2019
    	
 
    	
 
    	
114,888,889
    	
 
    
	
93
    	
 
    	
Feb-2019
    	
 
    	
 
    	
113,583,333
    	
 
    
	
94
    	
 
    	
Mar-2019
    	
 
    	
 
    	
112,277,778
    	
 
    
	
95
    	
 
    	
Apr-2019
    	
 
    	
 
    	
110,972,222
    	
 
    
	
96
    	
 
    	
May-2019
    	
 
    	
 
    	
109,666,667
    	
 
    
	
97
    	
 
    	
Jun-2019
    	
 
    	
 
    	
108,361,111
    	
 
    
	
98
    	
 
    	
Jul-2019
    	
 
    	
 
    	
107,055,556
    	
 
    
	
99
    	
 
    	
Aug-2019
    	
 
    	
 
    	
105,750,000
    	
 
    
	
100
    	
 
    	
Sep-2019
    	
 
    	
 
    	
104,444,444
    	
 
    
	
101
    	
 
    	
Oct-2019
    	
 
    	
 
    	
103,138,889
    	
 
    
	
102
    	
 
    	
Nov-2019
    	
 
    	
 
    	
101,833,333
    	
 
    
	
103
    	
 
    	
Dec-2019
    	
 
    	
 
    	
100,527,778
    	
 
    
	
104
    	
 
    	
Jan-2020
    	
 
    	
 
    	
99,222,222
    	
 
    
	
105
    	
 
    	
Feb-2020
    	
 
    	
 
    	
97,916,667
    	
 
    
	
106
    	
 
    	
Mar-2020
    	
 
    	
 
    	
96,611,111
    	
 
    
	
107
    	
 
    	
Apr-2020
    	
 
    	
 
    	
95,305,556
    	
 
    
	
108
    	
 
    	
May-2020
    	
 
    	
 
    	
94,000,000
    	
 
    
	
109
    	
 
    	
Jun-2020
    	
 
    	
 
    	
92,694,444
    	
 
    
	
110
    	
 
    	
Jul-2020
    	
 
    	
 
    	
91,388,889
    	
 
    
	
111
    	
 
    	
Aug-2020
    	
 
    	
 
    	
90,083,333
    	
 
    
	
112
    	
 
    	
Sep-2020
    	
 
    	
 
    	
88,777,778
    	
 
    
	
113
    	
 
    	
Oct-2020
    	
 
    	
 
    	
87,472,222
    	
 
    
	
114
    	
 
    	
Nov-2020
    	
 
    	
 
    	
86,166,667
    	
 
    
	
115
    	
 
    	
Dec-2020
    	
 
    	
 
    	
84,861,111
    	
 
    
	
116
    	
 
    	
Jan-2021
    	
 
    	
 
    	
83,555,556
    	
 
    
	
117
    	
 
    	
Feb-2021
    	
 
    	
 
    	
82,250,000
    	
 
    
	
118
    	
 
    	
Mar-2021
    	
 
    	
 
    	
80,944,444
    	
 
    
	
119
    	
 
    	
Apr-2021
    	
 
    	
 
    	
79,638,889
    	
 
    
	
120
    	
 
    	
May-2021
    	
 
    	
 
    	
78,333,333
    	
 
    
	
121
    	
 
    	
Jun-2021
    	
 
    	
 
    	
77,027,778
    	
 
    
	
122
    	
 
    	
Jul-2021
    	
 
    	
 
    	
75,722,222
    	
 
    
	
123
    	
 
    	
Aug-2021
    	
 
    	
 
    	
74,416,667
    	
 
    
	
124
    	
 
    	
Sep-2021
    	
 
    	
 
    	
73,111,111
    	
 
    
	
125
    	
 
    	
Oct-2021
    	
 
    	
 
    	
71,805,556
    	
 
    
	
126
    	
 
    	
Nov-2021
    	
 
    	
 
    	
70,500,000
    	
 
    
	
127
    	
 
    	
Dec-2021
    	
 
    	
 
    	
69,194,444
    	
 
    
	
128
    	
 
    	
Jan-2022
    	
 
    	
 
    	
67,888,889
    	
 
    
	
129
    	
 
    	
Feb-2022
    	
 
    	
 
    	
66,583,333
    	
 
    
	
130
    	
 
    	
Mar-2022
    	
 
    	
 
    	
65,277,778
    	
 
    
	
131
    	
 
    	
Apr-2022
    	
 
    	
 
    	
63,972,222
    	
 
    
	
132
    	
 
    	
May-2022
    	
 
    	
 
    	
62,666,667
    	
 
    
	
133
    	
 
    	
Jun-2022
    	
 
    	
 
    	
61,361,111
    	
 
    
	
134
    	
 
    	
Jul-2022
    	
 
    	
 
    	
60,055,556
    	
 
    
	
135
    	
 
    	
Aug-2022
    	
 
    	
 
    	
58,750,000
    	
 
    
	
136
    	
 
    	
Sep-2022
    	
 
    	
 
    	
57,444,444
    	
 
    
	
137
    	
 
    	
Oct-2022
    	
 
    	
 
    	
56,138,889
    	
 
    
	
138
    	
 
    	
Nov-2022
    	
 
    	
 
    	
54,833,333
    	
 
    
	
139
    	
 
    	
Dec-2022
    	
 
    	
 
    	
53,527,778
    	
 
    
	
140
    	
 
    	
Jan-2023
    	
 
    	
 
    	
52,222,222
    	
 
    
	
141
    	
 
    	
Feb-2023
    	
 
    	
 
    	
50,916,667
    	
 
    
	
142
    	
 
    	
Mar-2023
    	
 
    	
 
    	
49,611,111
    	
 
    
	
143
    	
 
    	
Apr-2023
    	
 
    	
 
    	
48,305,556
    	
 
    
	
144
    	
 
    	
May-2023
    	
 
    	
 
    	
47,000,000
    	
 
    
	
145
    	
 
    	
Jun-2023
    	
 
    	
 
    	
45,694,444
    	
 
    
	
146
    	
 
    	
Jul-2023
    	
 
    	
 
    	
44,388,889
    	
 
    
	
147
    	
 
    	
Aug-2023
    	
 
    	
 
    	
43,083,333
    	
 
    
	
148
    	
 
    	
Sep-2023
    	
 
    	
 
    	
41,777,778
    	
 
    
	
149
    	
 
    	
Oct-2023
    	
 
    	
 
    	
40,472,222
    	
 
    
	
150
    	
 
    	
Nov-2023
    	
 
    	
 
    	
39,166,667
    	
 
    
	
151
    	
 
    	
Dec-2023
    	
 
    	
 
    	
37,861,111
    	
 
    
	
152
    	
 
    	
Jan-2024
    	
 
    	
 
    	
36,555,556
    	
 
    
	
153
    	
 
    	
Feb-2024
    	
 
    	
 
    	
35,250,000
    	
 
    
	
154
    	
 
    	
Mar-2024
    	
 
    	
 
    	
33,944,444
    	
 
    
	
155
    	
 
    	
Apr-2024
    	
 
    	
 
    	
32,638,889
    	
 
    
	
156
    	
 
    	
May-2024
    	
 
    	
 
    	
31,333,333
    	
 
    
	
157
    	
 
    	
Jun-2024
    	
 
    	
 
    	
30,027,778
    	
 
    
	
158
    	
 
    	
Jul-2024
    	
 
    	
 
    	
28,722,222
    	
 
    
	
159
    	
 
    	
Aug-2024
    	
 
    	
 
    	
27,416,667
    	
 
    
	
160
    	
 
    	
Sep-2024
    	
 
    	
 
    	
26,111,111
    	
 
    
	
161
    	
 
    	
Oct-2024
    	
 
    	
 
    	
24,805,556
    	
 
    
	
162
    	
 
    	
Nov-2024
    	
 
    	
 
    	
23,500,000
    	
 
    
	
163
    	
 
    	
Dec-2024
    	
 
    	
 
    	
22,194,444
    	
 
    
	
164
    	
 
    	
Jan-2025
    	
 
    	
 
    	
20,888,889
    	
 
    
	
165
    	
 
    	
Feb-2025
    	
 
    	
 
    	
19,583,333
    	
 
    
	
166
    	
 
    	
Mar-2025
    	
 
    	
 
    	
18,277,778
    	
 
    
	
167
    	
 
    	
Apr-2025
    	
 
    	
 
    	
16,972,222
    	
 
    
	
168
    	
 
    	
May-2025
    	
 
    	
 
    	
15,666,667
    	
 
    
	
169
    	
 
    	
Jun-2025
    	
 
    	
 
    	
14,361,111
    	
 
    
	
170
    	
 
    	
Jul-2025
    	
 
    	
 
    	
13,055,556
    	
 
    
	
171
    	
 
    	
Aug-2025
    	
 
    	
 
    	
11,750,000
    	
 
    
	
172
    	
 
    	
Sep-2025
    	
 
    	
 
    	
10,444,444
    	
 
    
	
173
    	
 
    	
Oct-2025
    	
 
    	
 
    	
9,138,889
    	
 
    
	
174
    	
 
    	
Nov-2025
    	
 
    	
$
    	
7,833,333
    	
 
    
	
175
    	
 
    	
Dec-2025
    	
 
    	
 
    	
6,527,778
    	
 
    
	
176
    	
 
    	
Jan-2026
    	
 
    	
 
    	
5,222,222
    	
 
    
	
177
    	
 
    	
Feb-2026
    	
 
    	
 
    	
3,916,667
    	
 
    
	
178
    	
 
    	
Mar-2026
    	
 
    	
 
    	
2,611,111
    	
 
    
	
179
    	
 
    	
Apr-2026
    	
 
    	
 
    	
1,305,556
    	
 
    
	
180
    	
 
    	
May-2026
    	
 
    	
 
    	
0
    	
 
    

 

 

Scheduled Targeted Principal Balance by Period

 

	
 
    	
 
    	
 
    	
 
    	
Scheduled
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Targeted
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Principal
    	
 
    
	
Period 
    	
 
    	
Date
    	
 
    	
Balance
    	
 
    
	
0
    	
 
    	
May-2011
    	
 
    	
$
    	
235,000,000
    	
 
    
	
1
    	
 
    	
Jun-2011
    	
 
    	
233,041,667
    	
 
    
	
2
    	
 
    	
Jul-2011
    	
 
    	
231,083,333
    	
 
    
	
3
    	
 
    	
Aug-2011
    	
 
    	
229,125,000
    	
 
    
	
4
    	
 
    	
Sep-2011
    	
 
    	
227,166,667
    	
 
    
	
5
    	
 
    	
Oct-2011
    	
 
    	
225,208,333
    	
 
    
	
6
    	
 
    	
Nov-2011
    	
 
    	
223,250,000
    	
 
    
	
7
    	
 
    	
Dec-2011
    	
 
    	
221,291,667
    	
 
    
	
8
    	
 
    	
Jan-2012
    	
 
    	
219,333,333
    	
 
    
	
9
    	
 
    	
Feb-2012
    	
 
    	
217,375,000
    	
 
    
	
10
    	
 
    	
Mar-2012
    	
 
    	
215,416,667
    	
 
    
	
11
    	
 
    	
Apr-2012
    	
 
    	
213,458,333
    	
 
    
	
12
    	
 
    	
May-2012
    	
 
    	
211,500,000
    	
 
    
	
13
    	
 
    	
Jun-2012
    	
 
    	
209,541,667
    	
 
    
	
14
    	
 
    	
Jul-2012
    	
 
    	
207,583,333
    	
 
    
	
15
    	
 
    	
Aug-2012
    	
 
    	
205,625,000
    	
 
    
	
16
    	
 
    	
Sep-2012
    	
 
    	
203,666,667
    	
 
    
	
17
    	
 
    	
Oct-2012
    	
 
    	
201,708,333
    	
 
    
	
18
    	
 
    	
Nov-2012
    	
 
    	
199,750,000
    	
 
    
	
19
    	
 
    	
Dec-2012
    	
 
    	
197,791,667
    	
 
    
	
20
    	
 
    	
Jan-2013
    	
 
    	
195,833,333
    	
 
    
	
21
    	
 
    	
Feb-2013
    	
 
    	
193,875,000
    	
 
    
	
22
    	
 
    	
Mar-2013
    	
 
    	
191,916,667
    	
 
    
	
23
    	
 
    	
Apr-2013
    	
 
    	
189,958,333
    	
 
    
	
24
    	
 
    	
May-2013
    	
 
    	
188,000,000
    	
 
    
	
25
    	
 
    	
Jun-2013
    	
 
    	
186,041,667
    	
 
    
	
26
    	
 
    	
Jul-2013
    	
 
    	
184,083,333
    	
 
    
	
27
    	
 
    	
Aug-2013
    	
 
    	
182,125,000
    	
 
    
	
28
    	
 
    	
Sep-2013
    	
 
    	
180,166,667
    	
 
    
	
29
    	
 
    	
Oct-2013
    	
 
    	
178,208,333
    	
 
    
	
30
    	
 
    	
Nov-2013
    	
 
    	
176,250,000
    	
 
    
	
31
    	
 
    	
Dec-2013
    	
 
    	
174,291,667
    	
 
    
	
32
    	
 
    	
Jan-2014
    	
 
    	
172,333,333
    	
 
    
	
33
    	
 
    	
Feb-2014
    	
 
    	
170,375,000
    	
 
    
	
34
    	
 
    	
Mar-2014
    	
 
    	
168,416,667
    	
 
    
	
35
    	
 
    	
Apr-2014
    	
 
    	
166,458,333
    	
 
    
	
36
    	
 
    	
May-2014
    	
 
    	
164,500,000
    	
 
    
	
37
    	
 
    	
Jun-2014
    	
 
    	
162,541,667
    	
 
    
	
38
    	
 
    	
Jul-2014
    	
 
    	
160,583,333
    	
 
    
	
39
    	
 
    	
Aug-2014
    	
 
    	
158,625,000
    	
 
    
	
40
    	
 
    	
Sep-2014
    	
 
    	
156,666,667
    	
 
    
	
41
    	
 
    	
Oct-2014
    	
 
    	
154,708,333
    	
 
    
	
42
    	
 
    	
Nov-2014
    	
 
    	
152,750,000
    	
 
    
	
43
    	
 
    	
Dec-2014
    	
 
    	
150,791,667
    	
 
    
	
44
    	
 
    	
Jan-2015
    	
 
    	
148,833,333
    	
 
    
	
45
    	
 
    	
Feb-2015
    	
 
    	
146,875,000
    	
 
    
	
46
    	
 
    	
Mar-2015
    	
 
    	
144,916,667
    	
 
    
	
47
    	
 
    	
Apr-2015
    	
 
    	
142,958,333
    	
 
    
	
48
    	
 
    	
May-2015
    	
 
    	
141,000,000
    	
 
    
	
49
    	
 
    	
Jun-2015
    	
 
    	
139,041,667
    	
 
    
	
50
    	
 
    	
Jul-2015
    	
 
    	
137,083,333
    	
 
    
	
51
    	
 
    	
Aug-2015
    	
 
    	
135,125,000
    	
 
    
	
52
    	
 
    	
Sep-2015
    	
 
    	
133,166,667
    	
 
    
	
53
    	
 
    	
Oct-2015
    	
 
    	
131,208,333
    	
 
    
	
54
    	
 
    	
Nov-2015
    	
 
    	
129,250,000
    	
 
    
	
55
    	
 
    	
Dec-2015
    	
 
    	
127,291,667
    	
 
    
	
56
    	
 
    	
Jan-2016
    	
 
    	
125,333,333
    	
 
    
	
57
    	
 
    	
Feb-2016
    	
 
    	
123,375,000
    	
 
    
	
58
    	
 
    	
Mar-2016
    	
 
    	
121,416,667
    	
 
    
	
59
    	
 
    	
Apr-2016
    	
 
    	
119,458,333
    	
 
    
	
60
    	
 
    	
May-2016
    	
 
    	
117,500,000
    	
 
    
	
61
    	
 
    	
Jun-2016
    	
 
    	
115,541,667
    	
 
    
	
62
    	
 
    	
Jul-2016
    	
 
    	
113,583,333
    	
 
    
	
63
    	
 
    	
Aug-2016
    	
 
    	
111,625,000
    	
 
    
	
64
    	
 
    	
Sep-2016
    	
 
    	
109,666,667
    	
 
    
	
65
    	
 
    	
Oct-2016
    	
 
    	
107,708,333
    	
 
    
	
66
    	
 
    	
Nov-2016
    	
 
    	
105,750,000
    	
 
    
	
67
    	
 
    	
Dec-2016
    	
 
    	
103,791,667
    	
 
    
	
68
    	
 
    	
Jan-2017
    	
 
    	
101,833,333
    	
 
    
	
69
    	
 
    	
Feb-2017
    	
 
    	
99,875,000
    	
 
    
	
70
    	
 
    	
Mar-2017
    	
 
    	
97,916,667
    	
 
    
	
71
    	
 
    	
Apr-2017
    	
 
    	
95,958,333
    	
 
    
	
72
    	
 
    	
May-2017
    	
 
    	
94,000,000
    	
 
    
	
73
    	
 
    	
Jun-2017
    	
 
    	
92,041,667
    	
 
    
	
74
    	
 
    	
Jul-2017
    	
 
    	
90,083,333
    	
 
    
	
75
    	
 
    	
Aug-2017
    	
 
    	
88,125,000
    	
 
    
	
76
    	
 
    	
Sep-2017
    	
 
    	
86,166,667
    	
 
    
	
77
    	
 
    	
Oct-2017
    	
 
    	
84,208,333
    	
 
    
	
78
    	
 
    	
Nov-2017
    	
 
    	
82,250,000
    	
 
    
	
79
    	
 
    	
Dec-2017
    	
 
    	
80,291,667
    	
 
    
	
80
    	
 
    	
Jan-2018
    	
 
    	
78,333,333
    	
 
    
	
81
    	
 
    	
Feb-2018
    	
 
    	
76,375,000
    	
 
    
	
82
    	
 
    	
Mar-2018
    	
 
    	
74,416,667
    	
 
    
	
83
    	
 
    	
Apr-2018
    	
 
    	
$
    	
72,458,333
    	
 
    
	
84
    	
 
    	
May-2018
    	
 
    	
70,500,000
    	
 
    
	
85
    	
 
    	
Jun-2018
    	
 
    	
68,541,667
    	
 
    
	
86
    	
 
    	
Jul-2018
    	
 
    	
66,583,333
    	
 
    
	
87
    	
 
    	
Aug-2018
    	
 
    	
64,625,000
    	
 
    
	
88
    	
 
    	
Sep-2018
    	
 
    	
62,666,667
    	
 
    
	
89
    	
 
    	
Oct-2018
    	
 
    	
60,708,333
    	
 
    
	
90
    	
 
    	
Nov-2018
    	
 
    	
58,750,000
    	
 
    
	
91
    	
 
    	
Dec-2018
    	
 
    	
56,791,667
    	
 
    
	
92
    	
 
    	
Jan-2019
    	
 
    	
54,833,333
    	
 
    
	
93
    	
 
    	
Feb-2019
    	
 
    	
52,875,000
    	
 
    
	
94
    	
 
    	
Mar-2019
    	
 
    	
50,916,667
    	
 
    
	
95
    	
 
    	
Apr-2019
    	
 
    	
48,958,333
    	
 
    
	
96
    	
 
    	
May-2019
    	
 
    	
47,000,000
    	
 
    
	
97
    	
 
    	
Jun-2019
    	
 
    	
45,041,667
    	
 
    
	
98
    	
 
    	
Jul-2019
    	
 
    	
43,083,333
    	
 
    
	
99
    	
 
    	
Aug-2019
    	
 
    	
41,125,000
    	
 
    
	
100
    	
 
    	
Sep-2019
    	
 
    	
39,166,667
    	
 
    
	
101
    	
 
    	
Oct-2019
    	
 
    	
37,208,333
    	
 
    
	
102
    	
 
    	
Nov-2019
    	
 
    	
35,250,000
    	
 
    
	
103
    	
 
    	
Dec-2019
    	
 
    	
33,291,667
    	
 
    
	
104
    	
 
    	
Jan-2020
    	
 
    	
31,333,333
    	
 
    
	
105
    	
 
    	
Feb-2020
    	
 
    	
29,375,000
    	
 
    
	
106
    	
 
    	
Mar-2020
    	
 
    	
27,416,667
    	
 
    
	
107
    	
 
    	
Apr-2020
    	
 
    	
25,458,333
    	
 
    
	
108
    	
 
    	
May-2020
    	
 
    	
23,500,000
    	
 
    
	
109
    	
 
    	
Jun-2020
    	
 
    	
21,541,667
    	
 
    
	
110
    	
 
    	
Jul-2020
    	
 
    	
19,583,333
    	
 
    
	
111
    	
 
    	
Aug-2020
    	
 
    	
17,625,000
    	
 
    
	
112
    	
 
    	
Sep-2020
    	
 
    	
15,666,667
    	
 
    
	
113
    	
 
    	
Oct-2020
    	
 
    	
13,708,333
    	
 
    
	
114
    	
 
    	
Nov-2020
    	
 
    	
11,750,000
    	
 
    
	
115
    	
 
    	
Dec-2020
    	
 
    	
9,791,667
    	
 
    
	
116
    	
 
    	
Jan-2021
    	
 
    	
7,833,333
    	
 
    
	
117
    	
 
    	
Feb-2021
    	
 
    	
5,875,000
    	
 
    
	
118
    	
 
    	
Mar-2021
    	
 
    	
3,916,667
    	
 
    
	
119
    	
 
    	
Apr-2021
    	
 
    	
1,958,333
    	
 
    
	
120
    	
 
    	
May-2021
    	
 
    	
0Exhibit 4.64

 

 

NOTE PURCHASE AGREEMENT

 

Dated as of May 13, 2011

 

among

 

TAL ADVANTAGE IV LLC
  as Issuer

 

TAL INTERNATIONAL CONTAINER CORPORATION
  as Manager

 

WELLS FARGO SECURITIES, LLC
  as Initial Purchaser

 

 

 

(TAL ADVANTAGE IV LLC - 
 FIXED RATE SECURED NOTES, SERIES 2011-2)

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
SECTION 1.
    	
Definitions
    	
2
    
	
 
    	
 
    	
 
    
	
SECTION 2.
    	
The Notes
    	
4
    
	
 
    	
 
    	
 
    
	
SECTION 3.
    	
Representations and Warranties of the Issuer
    	
6
    
	
 
    	
 
    	
 
    
	
SECTION 3A.
    	
Representations and Warranties of the Manager
    	
9
    
	
 
    	
 
    	
 
    
	
SECTION 4.
    	
Purchase, Sale and Delivery of the Notes
    	
9
    
	
 
    	
 
    	
 
    
	
SECTION 5.
    	
Offering by the Initial Purchaser
    	
9
    
	
 
    	
 
    	
 
    
	
SECTION 6.
    	
Covenants of the Issuer
    	
10
    
	
 
    	
 
    	
 
    
	
SECTION 7.
    	
Expenses; Fees
    	
12
    
	
 
    	
 
    	
 
    
	
SECTION 8.
    	
Conditions of the Initial Purchaser’s Obligation
    	
13
    
	
 
    	
 
    	
 
    
	
SECTION 9.
    	
Representations, Warranties and Covenants of the Initial   Purchaser
    	
16
    
	
 
    	
 
    	
 
    
	
SECTION 10.
    	
Indemnification and Contribution
    	
18
    
	
 
    	
 
    	
 
    
	
SECTION 11.
    	
Survival; Scope of Liability
    	
21
    
	
 
    	
 
    	
 
    
	
SECTION 12.
    	
Termination
    	
22
    
	
 
    	
 
    	
 
    
	
SECTION 13.
    	
Supplied Information
    	
22
    
	
 
    	
 
    	
 
    
	
SECTION 14.
    	
Notices
    	
22
    
	
 
    	
 
    	
 
    
	
SECTION 15.
    	
Successors
    	
23
    
	
 
    	
 
    	
 
    
	
SECTION 16.
    	
Counterparts
    	
23
    
	
 
    	
 
    	
 
    
	
SECTION 17.
    	
Governing Law
    	
23
    
	
 
    	
 
    	
 
    
	
SECTION 18.
    	
Submission to Jurisdiction
    	
24
    
	
 
    	
 
    	
 
    
	
SECTION 19.
    	
Waiver of Jury Trial
    	
24
    
	
 
    	
 
    	
 
    
	
SECTION 20.
    	
Negotiations
    	
24
    
	
 
    	
 
    	
 
    
	
SECTION 21.
    	
Amendments, Etc.
    	
24
    
	
 
    	
 
    	
 
    
	
SECTION 22.
    	
Severability of Provisions
    	
24
    
	
 
    	
 
    	
 
    
	
SECTION 23.
    	
No Waiver; Cumulative Remedies
    	
25
    
	
 
    	
 
    	
 
    
	
SECTION 24.
    	
Integration
    	
25
    
	
 
    	
 
    	
 
    
	
SECTION 25.
    	
Nonpetition Covenant
    	
25
    
	
 
    	
 
    	
 
    
	
SECTION 26.
    	
USA Patriot Act
    	
26
    

 

i

 

NOTE PURCHASE AGREEMENT (as amended, modified and supplemented from time to time in accordance with its terms, the “Agreement”),  dated as of May 13, 2011, by and among:

 

(1)           TAL ADVANTAGE IV LLC, a Delaware limited liability company, as issuer under the Indenture (defined below) and the Series 2011-2 Supplement (defined below) (together with its successors and permitted assigns, the “Issuer”);

 

(2)           TAL INTERNATIONAL CONTAINER CORPORATION, a Delaware corporation (together with its successors and permitted assigns, the “Manager”); and

 

(3)           WELLS FARGO SECURITIES, LLC, a Delaware limited liability company, as the Initial Purchaser (together with its successors and assigns, “Initial Purchaser”).

 

NOW THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto agree as follows:

 

SECTION 1.           Definitions.

 

(a)           Certain capitalized terms used throughout this Agreement are defined above or in this Section 1(a).  In addition, capitalized terms used but not defined herein have the meanings given to such terms in Appendix A to the Indenture, dated as of June 28, 2010 (as amended, restated, supplemented or otherwise modified from time to time in accordance with its terms, the “Indenture”), by and between the Issuer and Wells Fargo Bank, National Association, as indenture trustee (the “Indenture Trustee”), or, if not defined therein, as defined in the Series 2011-2 Supplement, dated as of May 13, 2011, by and between the Issuer and the Indenture Trustee (as amended, restated, supplemented or otherwise modified from time to time in accordance with its terms, the “Series 2011-2 Supplement”), issued pursuant to the terms of the Indenture.

 

(b)           As used in this Agreement and its exhibits, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined).

 

Act:  The Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

Affiliate:  This term has the meaning set forth in Appendix A to the Indenture.

 

Authorized Signatories:  Any Person designated by written notice delivered to the Indenture Trustee as authorized to execute documents and instruments on behalf of a Person.

 

Closing Date:  This term has the meaning set forth in Section 4 hereof.

 

Code:  Internal Revenue Code of 1986, as amended.

 

Commission:  The United States Securities and Exchange Commission.

 

2

 

Container:  This term has the meaning set forth in Appendix A to the Indenture.

 

Definitive Note:  This term has the meaning set forth in Appendix A to the Indenture.

 

Depositary:  The Depository Trust Company, until a successor Depositary shall have become such pursuant to the applicable provisions of the Indenture, and thereafter “Depositary” shall mean or include each Person who is then a Depositary under the Indenture.

 

Early Amortization Event:  This term has the meaning set forth in Section 1201 of the Indenture.

 

ERISA:  Employee Retirement Income Security Act of 1974, as amended.

 

Event of Default:  This term has the meaning set forth in Section 801 of the Indenture.

 

Exchange Act:  The Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

Global Notes:  This term has the meaning set forth in Appendix A to the Indenture.

 

Indenture:  This term shall have the meaning set forth in Section 1(a) hereof.

 

Indenture Trustee:  This term shall have the meaning set forth in Section 1(a) hereof.

 

Initial Purchaser Information:  This term has the meaning set forth in Section 13 hereof.

 

Initial Purchaser:  This term has the meaning set forth in the preamble hereto.

 

Institutional Accredited Investors:  This term has the meaning set forth in Section 2(f) hereof.

 

Investment Company Act:  The Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder.

 

Loss:  This term has the meaning set forth in Section 10(a) hereof.

 

Manager Report:  This term has the meaning set forth in Appendix A to the Indenture.

 

Noteholder:  The Person in whose name a Note is registered in the Note Register maintained by the Indenture Trustee pursuant to Section 205 of the Indenture.

 

Notes:  The Fixed Rate Secured Notes, Series 2011-2, issued by the Issuer pursuant to the terms of the Series 2011-2 Supplement.

 

3

 

Offering Memorandum:  This term has the meaning set forth in Section 2(d) hereof.

 

Person:  An individual, a partnership, a limited liability company, a corporation, a joint venture, an unincorporated association, a joint-stock company, a trust, or other entity or a Governmental Authority.

 

Preliminary Offering Memorandum:  This term has the meaning set forth in Section 2(d) hereof.

 

Proceeding:  This term has the meaning set forth in Section 10(a) hereof.

 

Qualified Institutional Buyer:  This term has the meaning set forth in Rule 144A.

 

Rating Agency:  S&P and any other rating agency that has been requested to issue a rating with respect to the Notes.

 

Regulation S:  This term has the meaning set forth in Section 2(f) hereof.

 

Related Assets:  This term has the meaning set forth in Appendix A to the Indenture.

 

Rule 144A:  Rule 144A under the Act, as such rule may be amended from time to time.

 

S&P:  Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and any successor thereto.

 

Series 2011-2 Supplement:  This term has the meaning set forth in Section 1(a) hereof.

 

TAL Fleet:  The Manager’s fleet of Managed Containers.

 

TAL Person:  This term has the meaning set forth in Section 8(f) hereof.

 

UCC:  The Uniform Commercial Code as in effect in the applicable jurisdiction.

 

United States:  The United States of America.

 

(c)           All accounting terms not specifically defined herein shall be construed in accordance with GAAP.  All terms used in the UCC in effect in the State of New York and not specifically defined herein, are used herein as defined therein.

 

(d)           Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding”.

 

SECTION 2.           The Notes.  (a) Subject to the terms and conditions herein contained, the Issuer proposes to sell to the Initial Purchaser Two Hundred Thirty-Five Million Dollars

 

4

 

($235,000,000) aggregate principal amount of the Notes, as more fully described in Section 4.  The terms of the Notes are more fully set forth in the Offering Memorandum.

 

(b)           The Notes are to be issued under the Series 2011-2 Supplement issued pursuant to the Indenture.

 

(c)           The Notes shall be offered and sold to the Initial Purchaser without being registered under the Act, in reliance on exemptions therefrom provided by Section 464 of the Act.

 

(d)           In connection with the sale of the Notes, the Issuer has prepared a preliminary offering memorandum dated May 3, 2011 (the “Preliminary Offering Memorandum”) and a final Offering Memorandum dated May 9, 2011 (the “Offering Memorandum”), which shall each be in form and substance satisfactory to the Initial Purchaser. All references to the Preliminary Offering Memorandum or the Offering Memorandum shall be deemed to include all attachments thereto.

 

(e)           The Issuer hereby expressly authorizes the Initial Purchaser to use the Preliminary Offering Memorandum and the Offering Memorandum, as they may at any time have been or may be amended or supplemented by the Issuer, in connection with the offer and sale of the Notes. The Issuer hereby ratifies and affirms all distributions of the Preliminary Offering Memorandum by the Initial Purchaser prior to the date of this Agreement and authorizes the Initial Purchaser to distribute the Preliminary Offering Memorandum and the Offering Memorandum in connection with the offer and sale of the Notes, provided that, in each case, such distributions were made only to Persons reasonably believed by the Initial Purchaser to be (i) Qualified Institutional Buyers, (ii) Institutional Accredited Investors that deliver a Purchaser Letter in the form of Annex A to the Offering Memorandum, or (iii) certain Persons to whom the offer and sale of the Notes may be made without registration under the Act in reliance upon Regulation S.  The Issuer also hereby expressly authorizes the Initial Purchaser to distribute to Persons with the aforementioned qualifications copies of the Series 2011-2 Transaction Documents and of opinion letters and other documents delivered in connection with the execution of the Series 2011-2 Transaction Documents, in connection with the offer and sale of the Notes if requested by such Persons.

 

(f)            The Issuer understands that the Initial Purchaser proposes to make an offering of the Notes, as soon as it deems advisable after this Agreement has been executed and delivered, on the terms and in the manner set forth in the Offering Memorandum to Persons that the Initial Purchaser reasonably believes to be (i) Qualified Institutional Buyers, in transactions under Rule 144A, (ii) institutional “accredited investors” (“Institutional Accredited Investors”), as defined in Rule 501(a)(1), (2), (3) or (7) under Regulation D of the Act that deliver a Purchase Letter in the form of Annex A to the Offering Memorandum in private sales exempt from registration under the Act, or (iii) certain Persons to whom the offer and sale of the Notes may be made without registration under the Act in reliance upon Regulation S under the Act (“Regulation S”).  Any Notes sold to Institutional Accredited Investors shall be represented by one or more Definitive Notes.

 

5

 

SECTION 3.           Representations and Warranties of the Issuer.  The Issuer represents and warrants to the Initial Purchaser that as of the date hereof and as of the Closing Date:

 

(a)           (A) At 2:00 p.m. on May 3, 2011, the time of the first contract of sale by the Initial Purchaser for any notes (the “Time of Sale”), the Preliminary Offering Memorandum did not include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and (B) the Offering Memorandum, as of its date and as of the Closing Date, will not include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that the foregoing does not apply to information contained in or omitted from the Initial Purchaser Information (as defined in Section 13).

 

(b)           The statements in the Offering Memorandum under the captions “Description of the Management Agreement,” “Description of the Contribution and Sale Agreement,” “Description of the Series 2011-2 Notes and the Indenture” and “Description of the Transition Agent Agreement,” insofar as they purport to constitute a summary of the principal terms of the Notes and the Series 2011-2 Transaction Documents conform in all material respects to the terms of the Notes and the Series 2011-2 Transaction Documents.

 

(c)           The Issuer is a limited liability company duly organized, validly existing and in good standing under the laws of Delaware.  The Issuer is duly qualified to do business in each jurisdiction in which its ownership or lease of property or the conduct of its business requires such qualification, except where the failure to be so qualified would not reasonably be expected to have a material adverse effect upon the Issuer or the ability of the Issuer to perform any of its obligations under any Series 2011-2 Transaction Document to which it is a party.

 

(d)           The Issuer has all necessary limited liability company power and authority to execute and deliver the Notes.  Each Note has been duly and validly authorized by the Issuer and, from and after the date on which such Note is executed by the Issuer and authenticated by the Indenture Trustee in accordance with the terms of the Indenture and the Series 2011-2 Supplement and delivered to and paid for by the Initial Purchaser in accordance with the terms of this Agreement, shall be validly issued and outstanding and shall constitute a valid and legally binding obligation of the Issuer enforceable against the Issuer in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity, regardless of whether enforceability is considered in a proceeding in equity or at law.

 

(e)           The Issuer has all necessary limited liability company power and authority to execute and deliver this Agreement and the other Series 2011-2 Transaction Documents to which it is a party; and the Issuer is and will continue to be authorized to perform its obligations under the Indenture, this Agreement and the other Series 2011-2 Transaction Documents.  The execution, delivery and performance by the Issuer of this Agreement and the other Series 2011-2 Transaction Documents to which it is a party and the transactions thereunder do not require any consent or approval of any Governmental Authority, stockholder or any other Person, other than any such consents or approvals that have been obtained on or prior to the 2011-2 Closing Date or

 

6

 

which the failure to obtain would not reasonably be expected to result in a Material Adverse Change.

 

(f)            This Agreement is, and each Series 2011-2 Transaction Document to which the Issuer is a party, when duly executed and delivered by each of the parties thereto, will be, the legal, valid and binding obligations of the Issuer, enforceable against the Issuer in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or other similar laws of general application affecting the enforcement of creditors’ rights or by general principles of equity limiting the availability of equitable remedies.

 

(g)           This Agreement has been duly and validly executed and delivered by the Issuer.

 

(h)           The execution, delivery and performance of this Agreement and each of the other Series 2011-2 Transaction Documents by the Issuer and the execution, delivery and payment of the Notes by the Issuer will not: (a) contravene any provision of the Issuer’s certificate of formation or limited liability company agreement; or (b) assuming the accuracy of the representations and warranties of the other parties hereto or thereto and the performance by those parties of their agreements and obligations herein or therein, contravene, conflict with or violate any Applicable Law or regulation, or any order, writ, judgment, injunction, decree, determination or award of any Governmental Authority having jurisdiction over the Issuer; or (c) violate or result in the breach of, or constitute a default under the Indenture, the other Series 2011-2 Transaction Documents, any other indenture or other loan or credit agreement, or other agreement or instrument to which the Issuer is a party or by which the Issuer, or its property and assets may be bound or affected; except for, in the cases of clauses (a), (b) or (c) above, any such contravention, conflict, violation, breach or default that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change.

 

(i)            Except as disclosed in the Offering Memorandum, there is no action, suit, proceeding or investigation pending or, to the best knowledge of the Issuer, threatened against it before any court, regulatory body, arbitrator, administrative agency or other tribunal or governmental instrumentality (i) that asserts the invalidity of this Agreement or any other Series 2011-2 Transaction Document, or (ii) if determined adversely to the Issuer would individually or in the aggregate have a material and adverse effect on the ability of the Issuer to perform any of its obligations under the Series 2011-2 Transaction Documents to which it is a party.

 

(j)            The Issuer does not own any “margin security”, as that term is defined in Regulation U of the Federal Reserve Board. None of the proceeds to the Issuer of the Notes will be used, directly or indirectly, for the purpose of purchasing or carrying any margin security, for the purpose of reducing or retiring any Indebtedness which was originally incurred to purchase or carry any margin security or for any other purpose which might cause any of the loans under the Series 2011-2 Supplement to be considered a “purpose credit” within the meaning of Regulations T, U and X.  The Issuer will not take or permit any agent acting on its behalf to take any action which might cause the Notes or any document or instrument delivered by the Issuer pursuant to the Series 2011-2 Supplement to violate any regulation of the Federal Reserve Board.

 

(k)           The Issuer is not: an “investment company,” or an “affiliated person” of, or a “promoter” or “principal underwriter” for, an “investment company,” as such terms are defined

 

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in the Investment Company Act. The issuance of the Notes hereunder and the application of the proceeds thereof by the Issuer and the performance of the transactions contemplated by the Indenture, the Series 2011-2 Supplement and the other Series 2011-2 Transaction Documents will not violate any provision of the Investment Company Act, or any rule, regulation or order issued by the Securities and Exchange Commission thereunder.

 

(l)            None of the Issuer, any of its Affiliates or any Person acting on its or their behalf has engaged in any directed selling efforts (as that term is defined in Regulation S) with respect to any Notes (provided that no representation is made as to the actions of the Initial Purchaser or any Person acting on its behalf).  The Issuer, its Affiliates and any Person acting on its or their behalf (provided that no representation is made as to the actions of the Initial Purchaser or any Person acting on its behalf) have complied with the offering restrictions and the requirements of Regulation S in connection with any offering of Notes outside the United States.

 

(m)          Assuming the representations and warranties of the Initial Purchaser in Section 9 are true and assuming the compliance by the Initial Purchaser with its covenants and agreements set forth herein, it is not necessary to register any of the Notes under the Act or to qualify the Indenture under the Trust Indenture Act of 1939, as amended, in connection with the initial sale of the Notes to the Initial Purchaser in the manner contemplated by this Agreement or for the initial resale of the Notes by the Initial Purchaser in the manner contemplated by this Agreement.

 

(n)           On the date hereof and the Closing Date, (i) each of the representations and warranties of the Issuer that is set forth in this Agreement, the Indenture or the other Series 2011-2 Transaction Documents is and shall be true and correct in all material respects (except to the extent that such representations or warranties specifically relate to an earlier date), and (ii) the Issuer is not and shall not be in breach, in any material respect, of any covenant or agreement set forth in this Agreement, the Indenture or any other Series 2011-2 Transaction Document.

 

(o)           No Event of Default or Early Amortization Event has occurred and is continuing.  No event or condition that with notice or the passage of time (or both) could reasonably be expected to constitute an Event of Default or Early Amortization Event has occurred or is continuing.

 

(p)           The Notes meet the eligibility requirements of Rule 144A(d)(3) of the Act.

 

(q)           Neither the Issuer nor any of its Affiliates has purchased, or is purchasing, any Notes.

 

(r)            The Issuer has not engaged in any form of general solicitation or general advertising in connection with the offer or sale of the Notes (as those terms are used in Regulation D under the Act).

 

(s)           As of the Closing Date, the representations and warranties made by the Issuer in the Transaction Documents or made by the Issuer in any certificate delivered pursuant to the Transaction Documents are true and correct in all material respects unless such representation or warranty relates solely to an earlier date in which case such information shall be true and correct on such earlier date.

 

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(t)            Except for the Initial Purchaser, neither the Issuer nor the Manager has employed or retained a broker, finder, commission agent or other person in connection with the sale of the Notes, and neither the Issuer nor the Manager is under any obligation to pay any broker’s fee or commission in connection with such sale.

 

(u)           The Issuer agrees that it and each of its Affiliates will not offer or sell the Notes in the United States by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) under the Act, including, but not limited to (i) any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, or (ii) any seminar or meeting whose attendees have been invited by any general solicitation or general advertising.  The Issuer agrees, with respect to resales made in reliance on Rule 144A of any of the Notes, to deliver either with the confirmation of such resale or otherwise prior to settlement of such resale a notice to the effect that the resale of such Notes has been made in reliance upon the exemption from the registration requirements of the Securities Act provided by Rule 144A.

 

SECTION 3A.             Representations and Warranties of the Manager.  The Manager represents and warrants to the Initial Purchaser that as of the date hereof and as of the Closing Date: (i) each of the representations and warranties of the Manager that is set forth in the Series 2011-2 Transaction Documents to which it is a party is and shall be true and correct in all material respects (unless such representation or warranty specifically relates to an earlier date in which case it will be true and correct in all material respects as of such earlier date), and (ii) the Manager is not and shall not be in breach, in any material respect, of any of its covenants or agreements set forth in this Agreement or any other Series 2011-2 Transaction Document to which it is a party.

 

SECTION 4.           Purchase, Sale and Delivery of the Notes.  On the basis of the representations, warranties, agreements and covenants herein contained and subject to the terms and conditions herein set forth, Issuer agrees to sell to the Initial Purchaser, and the Initial Purchaser agrees to purchase from the Issuer, on the Closing Date, the principal amount of the Notes set forth on Schedule I hereto opposite the name of such respective Initial Purchaser.  The Notes are to be purchased by the Initial Purchaser at a purchase price equal to 100% of the aggregate principal amount thereof.  Except for any Notes issued to Institutional Accredited Investors which Notes shall be issued as Definitive Notes, the Notes shall be Book-Entry Notes, and shall be registered in the name of Cede & Co., as nominee of The Depository Trust Company.  The delivery of and payment for the Notes shall be made at the offices of SNR Denton US LLP, at 10:00 a.m., New York time on May 13, 2011 or at such other place, time or date as the Initial Purchaser and the Issuer may agree upon, such time and date of delivery against payment being herein referred to as the “Closing Date”. The Issuer shall make copies of the Notes available for checking by the Initial Purchaser at the offices of the Initial Purchaser at least 24 hours prior to the Closing Date. The purchase price of the Notes paid by the Initial Purchaser shall be remitted by wire transfer to the Indenture Trustee.

 

SECTION 5.           Offering by the Initial Purchaser.

 

(a)           The Initial Purchaser proposes to make an offering of the Notes, upon the terms set forth in the Offering Memorandum, as soon as practicable after this Agreement is entered into

 

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and as in its judgment is advisable. During the period from the date of this Agreement until the earlier of (i) the date on which the Initial Purchaser shall have completed the initial resale of all of the Notes and (ii) 90 days after the date of this Agreement, the Issuer agrees to reasonably assist the Initial Purchaser in any marketing of the Notes and (promptly upon request) to provide all information reasonably deemed necessary by the Initial Purchaser in such marketing. In addition, during such period the Issuer shall use commercially reasonable efforts to make appropriate officers and representatives of the Issuer available to participate in information meetings for potential investors at such times and places as the Initial Purchaser may reasonably request.

 

(b)           The Issuer acknowledges and agrees that the Initial Purchaser is acting solely in the capacity of an arm’s length contractual counterparty to the Issuer with respect to the offering of the Notes contemplated hereby (including in connection with determining the terms of the offering) and not as a financial advisor or a fiduciary to, or an agent of, the Issuer or any other Person.  Additionally, the Initial Purchaser is not advising the Issuer or any other Person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction.  The Issuer shall consult with its own advisors concerning such matters and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and the Initial Purchaser shall have no responsibility or liability to the Issuer with respect thereto.  Any review by the Initial Purchaser of the Issuer, the transactions contemplated hereby or other matters relating to such transactions will be performed solely for the benefit of the Initial Purchaser and shall not be on behalf of the Issuer.

 

(c)           The Issuer acknowledges and agrees that:

 

(i)            the Issuer has been advised that the Initial Purchaser and its Affiliates are engaged in a broad range of transactions which may involve interests that differ from those of the Issuer and that the Initial Purchaser has no obligation to disclose such interests and transactions to the Issuer by virtue of any fiduciary, advisory or agency relationship; and

 

(ii)           the Issuer waives, to the fullest extent permitted by law, any claims it may have against the Initial Purchaser for breach of fiduciary duty or alleged breach of fiduciary duty and agree that the Initial Purchaser shall have no liability (whether direct or indirect) to the Issuer in respect of such a fiduciary duty claim or to any Person asserting a fiduciary duty claim on behalf of or in right of the Issuer, including stockholders, employees or creditors of the Issuer.

 

SECTION 6.           Covenants of the Issuer.  The Issuer covenants and agrees with the Initial Purchaser that:

 

(a)           The Issuer shall not amend or supplement the Offering Memorandum or any amendment thereof or supplement thereto unless the Initial Purchaser previously shall have been advised thereof and been furnished a copy thereof prior to the proposed amendment or supplement and shall not have reasonably objected in writing within five (5) Business Days after being furnished a copy thereof.  If, at any time during the period beginning on the date hereof and ending on the earlier of (i) the date on which Initial Purchaser shall have completed the

 

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initial resale of all of the Notes and (ii) 90 days after the date of this Agreement, any event occurs as a result of which the Preliminary Offering Memorandum or the Offering Memorandum as then amended or supplemented would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if it is necessary at any such time to amend or supplement the Preliminary Offering Memorandum or the Offering Memorandum to comply with any Applicable Law, the Issuer shall promptly notify the Initial Purchaser thereof and shall prepare and deliver to the Initial Purchaser, at the expense of the Issuer, an amendment of or supplement to the Preliminary Offering Memorandum or the Offering Memorandum which will correct such statement or omission or effect such compliance.

 

In the event that the Initial Purchaser shall incur any costs in connection with the reformation of a contract of sale with any investor that received a Preliminary Offering Memorandum that contains or contained any untrue statement of material fact or failed to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, the Issuer and the Manager jointly and severally agree to reimburse the Initial Purchaser for such costs, provided that the untrue statement or omission in such Preliminary Offering Memorandum did not relate solely to Initial Purchaser Information (as defined in Section 13 hereof).

 

(b)           The Issuer will use its reasonable efforts to arrange for qualification or exemption of the Notes for sale under the securities or “Blue Sky” laws of any state that the Initial Purchaser shall reasonably request and shall pay all reasonable expenses (including reasonable fees and disbursements of counsel) in connection with the qualification or exemption and in connection with the determination of the eligibility of the Notes for investment under the laws of the jurisdictions that the Initial Purchaser may reasonably designate and will continue such qualifications or exemptions in effect in such jurisdictions until the earlier of (x) the date on which Initial Purchaser shall have completed the initial resale of all of the Notes and (y) 90 days after the date of this Agreement, provided that the Issuer will not be required to (i) qualify to do business in any jurisdiction it is not now so qualified, (ii) take any action that would subject it to service of process in suits (other than those suits arising out of the offering or sale of the Notes) in any jurisdiction where it is not now so subject or (iii) subject it to taxation in excess of a nominal dollar amount in any such jurisdiction where it is not now so subject.

 

(c)           The Issuer shall, without charge, provide to the Initial Purchaser as many copies of the Preliminary Offering Memorandum and the Offering Memorandum and any amendment thereof or supplement thereto as the Initial Purchaser may reasonably request.

 

(d)           The Issuer (or any of its “affiliates” as defined in Regulation D under the Act), directly or through any agent, shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any “security” (as defined in the Act) that is integrated with the sale of the Notes hereunder in a manner that would cause the exemption afforded by Section 4(2) of the Act or the safe harbor of Regulation S thereunder to cease to be applicable to the offer and sale of the Notes hereunder.

 

(e)           Neither the Issuer nor any of its Affiliates shall contact or solicit potential investors to purchase any Note, engage any Person to assist in the placement or sale of the Notes

 

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or sell any Notes to any Person, in the case of each of the foregoing, other than the Initial Purchaser except as consented to in writing by the Initial Purchaser.

 

(f)            The Issuer shall cause the Notes to be eligible for clearance and settlement through The Depository Trust Company.

 

(g)           Neither the Issuer nor any of its Affiliates shall sell or otherwise transfer any Notes that have been acquired by any of them.

 

(h)           Except with respect to the Notes to be issued on the Closing Date, during the period commencing on the date hereof and ending on the thirtieth (30th) day after the Closing Date, the Issuer shall not issue any U.S. dollar denominated debt securities similar to the Notes which are either placed or syndicated by the Issuer or any of its Affiliates in the international or U.S. capital markets, directly or on their behalf, in any manner which could in the sole judgment of the Initial Purchaser have a detrimental effect on the successful offering, sale or resale of the Notes unless mutually agreed to in writing by the Initial Purchaser and the Issuer.

 

(i)            During the period of two years after the Closing Date, the Issuer will not be or become an open-end investment company, unit investment trust or face-amount certificate company that is or is required to be registered under Section 8 of the Investment Company Act.

 

(j)            If the rating assigned to the Notes is dependent upon the delivery to the Rating Agency of the executed Series 2011-2 Transaction Documents, the Issuer shall deliver such documents to the Rating Agency within thirty (30) days after the Closing Date.

 

(k)           The Issuer agrees that, in order to render the Notes eligible for resale pursuant to Rule 144A under the Act, while any of the Notes remain outstanding, to make available, upon request, to any Noteholder or prospective purchasers of Notes the information specified in Rule 144A(d)(4) (unless the Issuer is then subject to Section 13 or 15(d) of the 1934 Act).

 

(l)            Neither the Issuer nor the Manager will take or permit, or cause any of their Affiliates to take, any action whatsoever which would have the effect of requiring the registration under the Act of the offering or sale of the Notes contemplated by the Preliminary Offering Memorandum and the Offering Memorandum.

 

(m)          So long as any of the Notes are outstanding, the Issuer will furnish to the Initial Purchaser, by first-class mail, as soon as practicable:  (i) copies of all documents required to be distributed to the Noteholders; and (ii) from time to time, such other information concerning the Issuer or the Manager as the Initial Purchaser may reasonably request.

 

SECTION 7.           Expenses; Fees.  (a)  Each of the Manager and the Issuer jointly and severally agrees to pay all reasonable and documented costs and expenses incident to the purchase and resale of the Notes by the Initial Purchaser and the transactions contemplated by this Agreement and the Series 2011-2 Transaction Documents, whether or not the transactions contemplated herein or therein are consummated or this Agreement is terminated pursuant to Section 12, including all reasonable and documented costs and expenses incident to (i) the preparation, printing, word processing, distribution or other production of documents with respect to such transactions, including any costs in respect of the Series 2011-2 Transaction

 

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Documents, the Preliminary Offering Memorandum and the Offering Memorandum and any amendment thereof or supplement thereto, and any “Blue Sky” memorandum, (ii) all arrangements relating to the delivery to the Initial Purchaser of copies of the foregoing documents, (iii) the reasonable and documented fees and disbursements of counsel, accountants and other consultants, experts and advisors retained by the Initial Purchaser or any of its Affiliates (including, but not limited to the fees, costs and expenses described under Section 7(b) herein) (provided that the fees of counsel to the Initial Purchaser shall not exceed $200,000), (iv) preparation, issuance, transfer and delivery of the Notes, (v) the Indenture Trustee’s reasonable and documented fees and expenses, including reasonable and documented expenses of counsel retained by the Indenture Trustee, (vi) the qualification of the Notes under state securities and “Blue Sky” laws (including filing fees and fees) to the extent such qualification is required by this Agreement, (vi) reasonable and documented expenses of the Initial Purchaser in connection with any meetings with prospective investors in the Notes, (vii) all reasonable and documented expenses and fees incurred in connection with causing the Notes to be eligible for clearance and settlement through The Depository Trust Company, and (viii) fees charged by S&P for the rating of the Notes.  The Issuer acknowledges that the Initial Purchaser is not responsible for any of the fees, costs and expenses contemplated by this subsection.

 

(b)           Each of the Manager and the Issuer jointly and severally agrees to pay or reimburse, on a timely basis, the Initial Purchaser for all reasonable and documented out of pocket fees, costs and expenses incurred by the Initial Purchaser or third parties selected by the Initial Purchaser (which may include an Affiliate of the Initial Purchaser) in connection with the conduct of a due diligence examination of the Containers and the Related Transferred Assets, and of the activities of the Issuer and any of its Affiliates with respect to the Managed Containers and the Related Assets whether or not the transactions contemplated herein are consummated.  The Issuer agrees that these fees may include reasonable and documented fees and expenses incurred in connection with time spent at the offices of the Issuer, the Manager, or any of their Affiliates and in preparation of reports relating thereto.

 

(c)           The amounts payable under each clause of this section shall be cumulative and payment of amounts referred to in one clause shall not reduce amounts payable under another clause.

 

SECTION 8.           Conditions of the Initial Purchaser’s Obligation.  The obligations of the Initial Purchaser to purchase and pay for Notes in an amount equal to the principal amount set forth on Schedule I hereto opposite its name shall, in its sole discretion, be subject to the following conditions:

 

(a)           The Issuer shall have caused all Uniform Commercial Code financing statements (or documents of similar import) required to perfect the first priority security interest of the Indenture Trustee pursuant to the Indenture in the Collateral and related items, in each case, to be duly filed in the manner required by the laws of each appropriate jurisdiction.

 

(b)           All corporate and other proceedings in connection with the transactions contemplated hereby and by the Series 2011-2 Transaction Documents and all documents and Notes incident thereto shall be reasonably satisfactory in form and substance to the Initial Purchaser and its counsel, and the Initial Purchaser shall have received any other documents

 

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incident to the transactions contemplated hereby and by the Series 2011-2 Transaction Documents that the Initial Purchaser or its counsel shall reasonably request.  The Initial Purchaser or its counsel shall have received on the Closing Date certified copies of all documents evidencing corporate or other organizational action taken by the Issuer, the Manager and the Indenture Trustee to approve the execution and delivery of this Agreement and the Series 2011-2 Transaction Documents to which they are a party and the consummation of the transactions contemplated hereby and thereby.

 

(c)           Immediately prior to the sale of the Notes to the Initial Purchaser, the Notes shall have been executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, and this Agreement and each of the Series 2011-2 Transaction Documents that are to be executed and delivered on or prior to the Closing Date shall have been executed and delivered.  The Initial Purchaser and the Indenture Trustee shall have received on the Closing Date a fully executed counterpart original and any required conformed copies of all Series 2011-2 Transaction Documents delivered on or prior to the Closing Date, and the Indenture Trustee shall have received the Notes.

 

(d)           The Initial Purchaser or its counsel shall have received on the Closing Date signature and incumbency certificates executed by Authorized Signatories of the Issuer and the Indenture Trustee certifying the identities and signatures of those officers who executed each of this Agreement and the other Series 2011-2 Transaction Documents delivered in connection with Series 2011-2 to which the Issuer or the Indenture Trustee, as the case may be, is a party.

 

(e)           The Notes shall have been rated “A” by S&P, such rating shall be in full force and effect and the Initial Purchaser shall have received letter(s) from S&P dated on or before the Closing Date to such effect.

 

(f)            Subsequent to the execution and delivery of this Agreement, there shall not have occurred (i) any material adverse change, or any development involving a prospective material adverse change, in the condition (financial or otherwise) or in the business, properties or operations of the Issuer or the Manager (collectively, a “TAL Person”), (ii) a material suspension or material limitation of trading in securities generally on the New York Stock Exchange, or the establishment of minimum prices on the New York Stock Exchange, (iii) a general moratorium on commercial banking activities declared by any state of the United States or United States authorities, (iv) any material outbreak or material escalation of hostilities, insurrection or armed conflict in which the United States of America is involved, any declaration of war by Congress or any other national or international calamity or emergency that in the sole judgment of the Initial Purchaser makes it impractical or inadvisable to purchase the Notes or to proceed with the offering, sale, resale or delivery of the Notes, or (v) any material adverse change in financial, political or economic conditions that in the sole judgment of the Initial Purchaser makes it impractical or inadvisable to purchase the Notes or to proceed with the offering, sale, resale or delivery of the Notes.

 

(g)           On the Closing Date, the Initial Purchaser shall have received opinions, dated the Closing Date, addressed to the Initial Purchaser and in form and substance reasonably satisfactory to its counsel, of (i) Vedder Price P.C., counsel to the Issuer and the Manager, as to (A) perfection of the Indenture Trustee’s interest in the Collateral and other UCC matters, (B)

 

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 “true sale”, substantive consolidation, (C) corporate, tax and other matters, and (D) securities laws matters; (ii) internal counsel of the Manager as to certain matters relating to the Manager; (iii) counsel to the Indenture Trustee, as to certain matters relating to the Indenture Trustee; and (iv) such opinion letters, if any, as shall be delivered to the Rating Agency with respect to matters not addressed in clauses (i) through (iv) above.  In addition to the matters set forth above, the opinion letter of Vedder Price P.C. shall also include a statement to the effect that, during the preparation of the Offering Memorandum, such counsel has participated in conferences with officers and other representatives of the independent public accountants for the Issuer, representatives of the Initial Purchaser and counsel for the Initial Purchaser, at which conferences the content of the Offering Memorandum and related matters were discussed.  Based upon such participation but without independent review or verification, and without passing upon, and without assuming responsibility for, the accuracy, completeness or fairness of the statements contained in the Offering Memorandum, no facts have come to such counsel’s attention which leads it to believe that, at the time the Offering Memorandum (except as to financial statements and related notes, structuring assumptions, financial, accounting and other statistical data and supported schedules included therein or omitted therefrom, as to which such counsel need express no opinion) contained any untrue statement of material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading.

 

(h)           The Initial Purchaser shall have received a letter from an Independent Accountant dated the date of the Preliminary Offering Memorandum (with respect to the Preliminary Offering Memorandum) and the Closing Date (with respect to the Offering Memorandum), in form and substance satisfactory to the Initial Purchaser and its counsel, containing statements and information of the type ordinarily included in accountants’ “comfort letters” with respect to information contained in the Preliminary Offering Memorandum and the Offering Memorandum.

 

(i)            The representations and warranties of the Issuer and the Manager contained in this Agreement and in the Series 2011-2 Transaction Documents to which it is a party shall be true and correct in all material respects as of the date hereof and as of the Closing Date; each of the Issuer and the Manager shall have performed in all material respects all covenants and agreements and satisfied in all material respects all conditions on its part to be performed or satisfied hereunder and under the Series 2011-2 Transaction Documents on or prior to the Closing Date.

 

(j)            The Initial Purchaser shall have received a certificate of each TAL Person, dated the Closing Date, signed on behalf of each TAL Person (as applicable) by its President or any Vice President and its Chief Financial Officer or if such entity has none, its Treasurer, to the effect that, to the actual knowledge of such person after reasonable inquiry:

 

(i)            The representations and warranties of such TAL Person contained in this Agreement and in the Series 2011-2 Transaction Documents to which such TAL Person is a party are true and correct in all material respects as of the Closing Date as if made on such date, such TAL Person has performed in all material respects all covenants and agreements and satisfied in all material respects all conditions on its respective part to be performed or satisfied hereunder and under the other Series 2011-2 Transaction Documents on or prior to the Closing Date, and since the date of this Agreement, there

 

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has been no material adverse change in the business, condition (financial or otherwise) or results of operations of such TAL Person.

 

(ii)           Except as set forth in the Offering Memorandum, since the date of this Agreement, there has not occurred any material adverse change, or any development involving a prospective material adverse change, in the condition (financial or otherwise) or in the business, properties or operations of such TAL Person.

 

(k)           The Initial Purchaser shall have received confirmation that the Notes have been accepted for clearance of secondary market trading by The Depository Trust Company.

 

(l)            The Offering Memorandum shall have been printed and an electronic copy distributed to the Initial Purchaser not later than 8:00 p.m., New York time on May 9, 2011, with paper copies distributed to the Initial Purchaser promptly thereafter, but not later than 5:00 p.m. on May 11, 2011.

 

(m)          The Initial Purchaser shall have received from the Issuer a completed and executed Asset Base Certificate as of the Closing Date, evidencing that no Asset Base Deficiency shall exist on such date (after giving effect to the transactions occurring on the Closing Date pursuant to the Series 2011-2 Transaction Documents).

 

(n)           The Closing Date shall have occurred.

 

(o)           This Agreement has not terminated pursuant to Section 12.

 

The Issuer shall furnish to the Initial Purchaser and the Rating Agency (i) such other agreements, instruments, documents, opinions, certificates, letters and schedules as the Initial Purchaser or their counsel or any Rating Agency or its counsel reasonably may request, and (ii) originals and conformed copies of all opinions, certificates, letters, schedules, agreements, documents and instruments delivered pursuant to this Agreement in the quantities that the Initial Purchaser or the Rating Agencies, as the case may be, may reasonably request.

 

SECTION 9.           Representations, Warranties and Covenants of the Initial Purchaser.  The Initial Purchaser represents and warrants and covenants to the Issuer that:

 

(a)           The Initial Purchaser is an Institutional Accredited Investor.

 

(b)           The Initial Purchaser acknowledges that the Notes have not been registered under the Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from the registration requirements of the Act.  The Initial Purchaser represents and agrees that it has offered and sold the Notes, and will offer and sell the Notes only (i) as part of its distribution at any time and (ii) otherwise until 40 days after the later of the commencement of the offering and the Closing Date, only in accordance with Rule 903 or Rule 144A or to Institutional Accredited Investors pursuant to an exemption from the registration requirements of the Act.  Accordingly, neither the Initial Purchaser nor its Affiliates, nor any persons acting on its or their behalf, have engaged or will engage in any directed selling efforts with respect to the Notes, and the Initial Purchaser, its Affiliates and all persons acting on its or their behalf have complied and will comply with the

 

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offering restrictions requirement of Regulation S, Rule 144A and will otherwise only offer and sell the Notes pursuant to an exemption from the registration requirements of the Act.  The Initial Purchaser will not offer or sell, and has not offered or sold any Notes except (x) within the United States to persons reasonably believed by it to be (i) Qualified Institutional Buyers in reliance on the exemption from registration provided by Rule 144A or (ii) Institutional Accredited Investors that deliver a Purchaser Letter in the form of Annex A to the Offering Memorandum and (y) to certain non-U.S. persons outside the United States within the meaning of, and in compliance with, Regulation S.  The Initial Purchaser agrees that, at or prior to confirmation of sale of the Notes, other than a sale pursuant to Rule 144A, the Initial Purchaser will have sent to each distributor, dealer or person receiving a selling concession, fee or other remuneration that purchases the Notes from it during the restricted period a confirmation or notice (which notice may be contained in the Preliminary Offering Memorandum) to substantially the following effect:

 

“The Series 2011-2 Notes are being transferred to the purchaser in a transaction not involving any public offering in the United States within the meaning of the Securities Act, and that, if in the future the purchaser decides to resell, pledge or otherwise transfer any Series 2011-2 Notes, such Series 2011-2 Notes may be resold, pledged or transferred only in accordance with applicable state securities laws and (i) in a transaction meeting the requirements of Rule 144A, to a person that the transferor reasonably believes is a Qualified Institutional Buyer) and to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144 A, (ii) (a) to a person that is an Institutional Accredited Investor, is taking delivery of such Note in an amount of at least $250,000 (or, if greater, the U.S. dollar equivalent of 50,000 Euros) and delivers a Purchaser Letter in the form of Annex A to the Offering Memorandum to the Indenture Trustee, or (b) to a person that is taking delivery of such Note pursuant to a transaction that is otherwise exempt from the registration requirements of the Securities Act, as confirmed in an opinion of counsel addressed to the Indenture Trustee and the Issuer, which counsel and opinion are satisfactory to the Indenture Trustee and the Issuer, or (iii) in an offshore transaction in accordance with Rule 903 or 904 of Regulation S.

 

(c)           The Initial Purchaser agrees that it and each of its Affiliates will not offer or sell the Notes in the United States by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) under the Act, including, but not limited to (i) any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, or (ii) any seminar or meeting whose attendees have been invited by any general solicitation or general advertising.  The Initial Purchaser agrees, with respect to resales made in reliance on Rule 144A of any of the Notes, to deliver either with the confirmation of such resale or otherwise prior to settlement of such resale a notice to the effect that the resale of such Notes has been made in reliance upon the exemption from the registration requirements of the Securities Act provided by Rule 144A.

 

17

 

(d)           The Initial Purchaser has not engaged in any form of general solicitation or general advertising in connection with the offering or sale of the Notes (as those terms are used in Regulation D under the Act).

 

(e)           The Initial Purchaser is not acquiring the Notes with the assets of an employee benefit plan within the meaning of the ERISA or a plan as defined in Section 4975 of the Code.

 

(f)            The acquisition and holding of the Note will not give rise to a nonexempt prohibited transaction under Section 406(a) of ERISA or Section 4975 of the Code.

 

(g)           The Initial Purchaser will not offer or sell any Note except on the terms contemplated by the Offering Memorandum and in accordance with all Applicable Laws.

 

(h)           The Initial Purchaser agrees that it and each of its Affiliates has not entered and will not enter into any contractual arrangement with respect to the distribution of the Notes except for any such arrangements with the other Initial Purchaser or Affiliates of the other Initial Purchaser or with the prior written consent of the Issuer.

 

(i)            The Initial Purchaser represents and agrees that (i) it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000 (the “FSMA”)) received by it in connection with the issue or sale of any Notes in circumstances in which section 21(1) of the FSMA does not apply to the Issuer; and (ii) it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the Notes in, from or otherwise involving the United Kingdom.

 

SECTION 10.         Indemnification and Contribution.  (a) Each of the Manager and the Issuer will jointly and severally indemnify and hold harmless the Initial Purchaser, its Affiliates, directors, officers, employees, agents, representatives and the Person who controls (within the meaning of Section 15 of the Act) the Initial Purchaser (collectively the “Initial Purchaser Indemnitees”) against any losses, claims, damages or other liabilities, costs and expenses (any losses, claims, damages, liabilities, costs and expenses being referred to collectively as “Losses” and individually as a “Loss”) to which any Initial Purchaser Indemnitee may become subject, insofar as any Losses (or claims, actions, suits or proceedings in respect thereof) relate to, arise out of or are based upon:

 

(i)            any untrue statement or alleged untrue statement of any material fact contained in the Preliminary Offering Memorandum, the Offering Memorandum or any amendment of or supplement to any of the foregoing, or

 

(ii)           the omission or alleged omission to state, in the Preliminary Offering Memorandum, the Offering Memorandum or any amendment of or supplement to any of the foregoing, a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading,

 

18

 

and in each case shall reimburse, as incurred, each Initial Purchaser Indemnitee for any legal or other out-of-pocket fees, charges or expenses, in each case, reasonably incurred by any Initial Purchaser Indemnitee in connection with investigating, preparing, defending against or appearing as a third-party witness in connection with any Loss, litigation, claim, suit, proceeding or action, whether commenced or threatened (any such litigation, claims, suits, proceedings, and actions being referred to collectively as “Proceedings” and individually as a “Proceeding”); provided, however, that neither the Issuer nor the Manager shall be liable in any case under this Section 10 to the extent that any Loss (or claims, actions, suits or proceedings in respect thereof) arises out of or is based upon any untrue statement or alleged untrue statement in, or omission or alleged omission from, the Preliminary Offering Memorandum or the Offering Memorandum or any amendment or supplement thereto that, in the case of each of the foregoing, is made in reliance upon and in conformity with the Initial Purchaser Information (as such term is defined in Section 13(a)); provided, further, however, that the foregoing indemnity agreement with respect to any Loss (or claims, actions, suits or proceedings in respect thereof) shall not inure to the benefit of the Initial Purchaser Indemnitee with respect to any Loss (or claims, actions, suits or proceedings in respect thereof) arising out of or based upon (x) any untrue statement or alleged untrue statement of any material fact contained in the Preliminary Offering Memorandum or the Offering Memorandum or any amendment of or supplement to any of the foregoing, or (y) the omission or alleged omission to state in the Preliminary Offering Memorandum or the Offering Memorandum or any amendment of or supplement to any of the foregoing, a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, if: (1) the Issuer furnished sufficient copies of the Offering Memorandum or any amendment thereof or supplement thereto on a timely basis to permit delivery of the Offering Memorandum or any amendment thereof or supplement thereto to all Persons purchasing notes from the Initial Purchaser in the initial resale of such notes (such Persons “Initial Resale Purchasers”) at or prior to the written confirmation of the sale of the Notes to such Person; (2) the Initial Resale Purchaser asserting such losses, claims, damages or liabilities purchased Notes in the initial resale from the Initial Purchaser and a copy of the Offering Memorandum or any amendment thereof or supplement thereto was not sent or given by or on behalf of the Initial Purchaser to such Initial Resale Purchaser; and (3) the Offering Memorandum or such amendment thereof or supplement thereto would have cured the defect giving rise to such Loss (or claims, actions, suits or proceedings in respect thereof).

 

(b)           The Initial Purchaser agrees to indemnify and hold harmless each of the Issuer, the Manager, their respective directors, officers, employees, agents and representatives and each Person, if any, who controls (within the meaning of Section 15 of the Act) the Issuer or the Manager against any reasonable and documented Losses to which the Issuer, the Manager or any other such indemnified party may become subject, insofar as the Losses (or actions in respect thereof) arise out of or are based upon:

 

(i)            any untrue statement or alleged untrue statement of any material fact contained in the Preliminary Offering Memorandum or the Offering Memorandum or any amendment of or supplement to any of the foregoing to the extent, but only to the extent, that the untrue statement or alleged untrue statement was made in reliance upon and in conformity with the Initial Purchaser Information provided by the Initial Purchaser, or

 

19

 

(ii)           the omission or alleged omission to state in the Preliminary Offering Memorandum or the Offering Memorandum or any amendment of or supplement to any of the foregoing, a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, to the extent, but only to the extent, that the omission or alleged omission was made in reliance upon and in conformity with the Initial Purchaser Information provided by the Initial Purchaser,

 

and in each case shall reimburse, as incurred, each indemnified party for any legal or other out-of-pocket fees, charges or expenses, in each case, reasonably incurred by such indemnified party in connection with investigating, preparing, defending against or appearing as a third-party witness in connection with any Loss or Proceeding, whether commenced or threatened.

 

(c)           Notwithstanding any other provision of this Agreement, the Initial Purchaser’s indemnification obligations shall be limited in amount to the aggregate of total compensation received by it in connection with its duties as the Initial Purchaser of the Notes, excluding any amounts received by the Initial Purchaser pursuant to subsection (a) of this Section 10.

 

(d)           Promptly after receipt by an indemnified party under this Section 10 of notice of the commencement of any Proceeding for which an indemnified party is entitled to indemnification under this Section 10, the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under this Section 10, notify the indemnifying party of the commencement thereof, but the failure to so notify the indemnifying party shall not relieve it from any liability under subsection (a) or (b) of this Section 10 (as applicable) unless and except to the extent that the failure to notify results in the forfeiture by the indemnifying party of substantial rights and defenses. If any Proceeding is brought that involves any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it may elect by written notice delivered to the indemnified party after receiving the aforesaid notice from such indemnified party, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party, the indemnifying party will not be liable to such indemnified party under this Section 10 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable and documented costs of investigation.  Notwithstanding the foregoing, in no event shall an indemnifying party, in connection with any one such Proceeding or separate but substantially similar or related Proceedings arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys at any time for all indemnified parties, together with any necessary local counsel.  If the indemnifying party assumes the defense of any Proceeding, the indemnified party shall have the right to employ separate counsel therein, and to participate in the defense thereof, but the fees and expenses of its counsel shall be borne exclusively by the indemnified party without any right or entitlement to reimbursement by an indemnifying party except as otherwise provided in the preceding sentence and in the preceding paragraph.  No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such

 

20

 

indemnified party unless such settlement includes (i) an unconditional release of such indemnified party from all liability on any claims that are the subject matter of such action and (ii) does not include a statement as to or an admission of fault, culpability or failure to act by or on behalf of any indemnified party.

 

(e)           In circumstances in which the indemnity agreement provided for in the preceding subsections is unavailable or insufficient to hold harmless an indemnified party in respect of any Losses or Proceedings, each indemnifying party, in order to provide for just and equitable contribution, shall contribute to the amount paid or payable by the indemnified party as a result of Losses or Proceedings in such proportion as is appropriate to reflect (i) the relative benefits received by the indemnifying party or parties on the one hand and the indemnified party on the other from the offering of the Notes or (ii) if the allocation provided by clause (i) is not permitted by Applicable Law, not only such relative benefits but also the relative fault of the indemnifying party or parties on the one hand and the indemnified party on the other in connection with the statements or omissions or alleged statements or omissions that resulted in Losses or Proceedings.  It is the parties’ intention that, to the maximum extent permitted by Applicable Law, (A) the relative benefits received by the Issuer on the one hand and the Initial Purchaser on the other shall be deemed to be in the same proportion as the total proceeds from the offering (before deducting expenses) of the Notes bear to the total compensation received by the Initial Purchaser with respect to the offering, and (B) the relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Issuer on the one hand, or the Initial Purchaser on the other, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission, and any other equitable considerations appropriate in the circumstances.

 

The Issuer and the Initial Purchaser agree that it would not be equitable if the amount of contribution pursuant to this section were determined by pro rata or per capita allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the preceding paragraph.  Notwithstanding any other provision of this Agreement, the Initial Purchaser shall not be obligated to make contributions hereunder that in the aggregate exceed the total compensation received by them in connection with its duties as Initial Purchaser of the Notes, less the aggregate amount of any damages that they otherwise have been required to pay by reason of the untrue or alleged untrue statements, or the omissions or alleged omissions to state, a material fact.  No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  For purposes of this subsection, each Affiliate, director, officer, employee, agent and representative of the Initial Purchaser and the Person who controls the Initial Purchaser (within the meaning of Section 15 of the Act) shall have the same rights to contribution as the Initial Purchaser, and each Affiliate, director, officer, employee, agent and representative of the Issuer and each Person who controls the Issuer (within the meaning of Section 15 of the Act), shall have the same rights to contribution as the Issuer.

 

SECTION 11.         Survival; Scope of Liability.  The respective representations (as of the date made), warranties (as of the date made), agreements, covenants, indemnities and other statements of the Issuer, the Initial Purchaser and their respective officers set forth in this Agreement or made by or on behalf of any of them, respectively, pursuant to this Agreement shall remain in full force and effect, regardless of (a) any investigation made by or on behalf of the Issuer or the

 

21

 

Initial Purchaser or any of their respective officers or directors, or any controlling Person referred to in Section 10 and (b) delivery of and payment for the Notes or resale thereof. The respective agreements, covenants, indemnities and other statements set forth in this Section 11 and in Sections 7, 10, 14, 15, 17, 18, 19, 20, 21, 22, 23, and 25 shall remain in full force and effect regardless of any termination or cancellation of this Agreement.

 

SECTION 12.         Termination.  This Agreement may be terminated in the sole discretion of the Initial Purchaser by notice to the Issuer given on or prior to the Closing Date in the event that (A) any TAL Person shall have, in any material respect, failed, refused or been unable to perform, all obligations on its part to be performed hereunder at or prior thereto or (B) if, on or prior to the Closing Date, there shall have occurred any of the events or conditions set forth in Section 8(f) hereof.

 

Termination of this Agreement pursuant to this Section 12 shall be without liability of any party to any other party except that the Initial Purchaser shall be entitled to any fees, costs and expenses payable, in each case in accordance with Section 7.

 

SECTION 13.         Supplied Information.  The Issuer acknowledges and agrees that the information described in Schedule II hereto constitutes the only information furnished by the Initial Purchaser to the Issuer for purposes of inclusion in the Preliminary Offering Memorandum, the Offering Memorandum or any amendment or supplement of or to any of the foregoing. “Initial Purchaser Information” means the information described in Schedule II hereto, but only to the extent that such information relates to the respective Initial Purchaser.

 

SECTION 14.         Notices.  Unless otherwise provided herein, all notices required under the terms and provisions hereof shall be in writing and either delivered by hand, by mail or by facsimile, and any notice shall be effective when received at the address or facsimile number (as applicable) specified below:

 

	
If   to the Issuer:
    	
TAL   Advantage IV LLC
    
	
 
    	
100   Manhattanville Road
    
	
 
    	
Purchase,   New York 10577-2135
    
	
 
    	
Attn:   Jeffrey Casucci
    
	
 
    	
Email:   jeffrey.casucci@talinternational.com
    
	
 
    	
 
    
	
 
    	
With   a copy to:
    
	
 
    	
TAL   International Container Corporation
    
	
 
    	
100   Manhattanville Road
    
	
 
    	
Purchase,   New York 10577-2135
    
	
 
    	
Attn:   Jeffrey Casucci, Vice President and Treasurer
    
	
 
    	
Fax:   914 697 2526
    
	
 
    	
 
    
	
If   to the Manager:
    	
TAL   International Container Corporation
    
	
 
    	
100   Manhattanville Road
    
	
 
    	
Purchase,   New York 10577-2135
    

 

22

 

	
 
    	
Attn:   Jeffrey Casucci, Vice President and Treasurer
    
	
 
    	
Fax:   914 697 2526
    
	
 
    	
 
    
	
If   to the Initial Purchaser:
    	
Wells   Fargo Securities, LLC
    
	
 
    	
301   South College Street, D1053-082
    
	
 
    	
Charlotte,   North Carolina 28288-0610
    
	
 
    	
Attention:   Jessica Gray
    
	
 
    	
Facsimile   Number:
    	
(704)   383-4012
    
	
 
    	
Telephone   Number:
    	
(704)   383-9317
    
	
 
    	
 
    
	
 
    	
with   a copy to:
    
	
 
    	
 
    
	
 
    	
Wells   Fargo Securities, LLC
    
	
 
    	
301   South College Street, D1053-082
    
	
 
    	
Charlotte,   North Carolina 28288-0610
    
	
 
    	
Attention:   Jerri Kallam
    
	
 
    	
Facsimile   Number:
    	
(704)   715-0106
    
	
 
    	
Telephone   Number:
    	
(704)   715-1873
    

 

or at such other address or facsimile number as any party may designate from time to time by notice duly given to the other parties in accordance with the terms of this section.

 

SECTION 15.         Successors.  This Agreement shall inure to the benefit of and be binding upon the Initial Purchaser, the Issuer, the Manager and their respective successors and legal representatives.  Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any Person, other than the parties hereto, their respective successors and the controlling Persons, Affiliates, directors, officers, employees, agents and representatives referred to in Section 10 and their heirs and legal representatives, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision herein contained.  This Agreement and all conditions and provisions hereof are intended to be for the sole and exclusive benefit of the parties hereto, their respective successors and such controlling Persons, Affiliates, directors, officers, employees, agents and representatives and their heirs and legal representatives, and for the benefit of no other Person.  No purchaser of a Note or a beneficial interest in a Note from the Initial Purchaser shall be deemed a successor because of such purchase.

 

SECTION 16.         Counterparts.  This Agreement may be executed in any number of counterparts and by the different parties hereto in separate counterparts (which may include facsimile), each of which when so executed shall be deemed to be an original and all of which together shall constitute one and the same agreement.

 

SECTION 17.         Governing Law.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 OF THE GENERAL OBLIGATIONS LAWS BUT OTHERWISE WITHOUT REFERENCE TO ITS CONFLICTS OF LAW PROVISIONS, AND THE

 

23

 

OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

SECTION 18.         Submission to Jurisdiction.  EACH PARTY HERETO HEREBY (A) IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE COUNTY OF NEW YORK, NEW YORK OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, (B) IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE OR FEDERAL COURT, AND (C) IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING. EACH PARTY IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY ACTION OR PROCEEDING BY THE MAILING OF COPIES OF THE PROCESS TO SUCH PARTY AT ITS ADDRESS SPECIFIED HEREIN. NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF ANY PARTY HERETO TO BRING ANY ACTION OR PROCEEDING AGAINST ANY OR ALL OF THE OTHER PARTIES HERETO OR ANY OF THEIR RESPECTIVE PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION.

 

SECTION 19.         Waiver of Jury Trial.  EACH PARTY HERETO WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER OR RELATING TO THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENTS OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN THE FUTURE BE DELIVERED IN CONNECTION THEREWITH OR ARISING FROM ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), ACTIONS OF ANY OF THE PARTIES HERETO OR ANY OTHER RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENTS, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

SECTION 20.         Negotiations.  This Agreement and the other Series 2011-2 Transaction Documents are the result of negotiations among the parties hereto, and have been reviewed by the respective counsel to the parties hereto, and are the products of all parties hereto. Accordingly, this Agreement and the other Series 2011-2 Transaction Documents shall not be construed against the Initial Purchaser merely because of the Initial Purchaser’ involvement in the preparation of this Agreement and the other Series 2011-2 Transaction Documents.

 

SECTION 21.         Amendments, Etc.  This Agreement may be amended, restated or otherwise modified or waived at any time but only upon the written consent of each of the parties hereto.

 

SECTION 22.         Severability of Provisions.  If any one or more of the agreements, provisions or terms of this Agreement shall for any reason whatsoever be held invalid, then the

 

24

 

unenforceable agreements, provisions or terms shall be deemed severable from the remaining agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other agreements, provisions or terms of this Agreement.

 

SECTION 23.         No Waiver; Cumulative Remedies.  No failure to exercise and no delay in exercising, on the part of any party hereto, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  Except as otherwise provided in this Agreement, the rights, remedies, powers and privileges herein provided are cumulative and are not exhaustive of any rights, remedies, powers and privileges provided by law.

 

SECTION 24.         Integration.  This Agreement contains a final and complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof, superseding all prior oral or written understandings.

 

SECTION 25.         Nonpetition Covenant.  Notwithstanding any prior termination of this Agreement, the Initial Purchaser agrees that it shall not, with respect to the Issuer, institute or join any other Person in instituting any proceeding of the type referred to in the definition of “Bankruptcy Event” against or with respect to the Issuer or so long as any Notes issued by the Issuer shall be outstanding and there shall not have elapsed one year plus one day since the last day on which any such Notes shall have been Outstanding and all other obligations of the Issuer under the Series 2011-2 Transaction Documents have been paid in full.  The foregoing shall not limit the right of any such Person to file any claim in or otherwise take any action with respect to any such proceeding that was instituted against Issuer by any Person other than the Initial Purchaser.  In addition, the Initial Purchaser agrees that all amounts owed to it by Issuer shall be payable solely from amounts that become available for such payment pursuant to the Series 2011-2 Transaction Documents, and no such amounts shall constitute a claim against Issuer to the extent that they are in excess of the amounts available for their payment.

 

“Bankruptcy Event” means, for any Person, any of the following events:

 

(a)           a case or other proceeding shall be commenced, without the application or consent of such Person, in any court, seeking the liquidation, reorganization, debt arrangement, dissolution, winding up or composition or readjustment of debts of such Person, the appointment of a trustee, receiver, custodian, liquidator, assignee, sequestrator or the like for such Person or any substantial part of its assets, or any similar action with respect to such Person under any law relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of debts, and such case or proceeding shall continue undismissed, or unstayed and in effect, for a period of 60 days; or any order for relief in respect of such Person shall be entered in an involuntary case under the federal bankruptcy laws or other similar laws now or hereafter in effect, or

 

(b)           such Person shall commence a voluntary case or other proceeding under any applicable bankruptcy, insolvency, reorganization, debt arrangement, dissolution or other similar law now or hereafter in effect, or shall consent to the appointment of or taking possession by a

 

25

 

receiver, liquidator, assignee, trustee, custodian, sequestrator or the like, for such Person or any substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall fail to, or admit in writing its inability to, pay its debts generally as they become due.

 

SECTION 26.         USA Patriot Act.  Each of the Issuer and the Manager acknowledges that the Initial Purchaser is required by U.S. Federal law, in an effort to help fight the funding of terrorism and money laundering activities, to obtain, verify and record information that identifies each person or corporation who opens an account or enters into a business relationship with a financial institution.

 

[Signature page follows.]

 

26

 

If the foregoing correctly sets forth our understanding, please indicate your acceptance thereof in the space provided below for that purpose, whereupon this Agreement shall constitute a binding agreement between the Issuer and the Initial Purchaser.

 

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
TAL   ADVANTAGE IV LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
TAL   International Container Corporation,
    
	
 
    	
 
    	
its   manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    

 

NPA Series 2011-2

 

 

	
 
    	
TAL   INTERNATIONAL CONTAINER CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

	
Accepted   and agreed to as of
    	
 
    
	
the   date first above written:
    	
 
    
	
 
    	
 
    
	
WELLS   FARGO SECURITIES, LLC,
    	
 
    
	
as   Initial Purchaser
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Authorized Signatory
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

NPA Series 2011-2

 

 

SCHEDULE I

to Note Purchase Agreement (Series 2011-2)

 

	
Initial Purchaser
    	
 
    	
Principal Amount of Notes
    	
 
    
	
Wells Fargo Securities,   LLC
    	
 
    	
$
    	
235,000,000
    	
 
    
					

 

 

SCHEDULE II

to Note Purchase Agreement (Series 2011-2)

 

The information contained in the first, second, fifth, eighth, tenth, eleventh and twelfth paragraphs and the third and fourth sentences of the seventh paragraph under the heading “PLAN OF DISTRIBUTION” and the information contained under the heading “GENERAL INFORMATION” in the Offering Memorandum.

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