Document:

Exhibit 4.2

 

AMERICAN HONDA RECEIVABLES
LLC,

as Depositor,

 

and

 

DEUTSCHE BANK TRUST COMPANY DELAWARE,

as Owner Trustee

 

 

 

AMENDED AND RESTATED

TRUST AGREEMENT

 

Dated February 23, 2012

 

 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE One
	DEFINITIONS
	 	 	 
	Section 1.01.	General Definitions	1
	 	 	 
	Section 1.02.	Other Definitional Provisions	5
	 	 	 
	Section 1.03.	Interpretive Provisions	5
	 	 	 
	ARTICLE Two
	ORGANIZATION
	 	 	 
	Section 2.01.	Name	5
	 	 	 
	Section 2.02.	Office	5
	 	 	 
	Section 2.03.	Purposes and Powers	5
	 	 	 
	Section 2.04.	Appointment of Owner Trustee	6
	 	 	 
	Section 2.05.	Initial Capital Contribution of Owner Trust Estate	6
	 	 	 
	Section 2.06.	Declaration of Trust	7
	 	 	 
	Section 2.07.	Liability of Owners	7
	 	 	 
	Section 2.08.	Title to Trust Property	7
	 	 	 
	Section 2.09.	Situs of Issuer	7
	 	 	 
	Section 2.10.	Representations and Warranties of the Depositor	7
	 	 	 
	ARTICLE Three
	TRUST CERTIFICATES AND TRANSFER OF INTERESTS
	 	 	 
	Section 3.01.	Initial Ownership	9
	 	 	 
	Section 3.02.	The Trust Certificates	9
	 	 	 
	Section 3.03.	Authentication and Delivery of Trust Certificates	9
	 	 	 
	Section 3.04.	Registration of Transfer and Exchange of Trust Certificates	10
	 	 	 
	Section 3.05.	Mutilated, Destroyed, Lost or Stolen Trust Certificates	11
	 	 	 
	Section 3.06.	Persons Deemed Owners	12
	 	 	 
	Section 3.07.	Access to List of Certificateholders’ Names and Addresses	12
	 	 	 
	Section 3.08.	Maintenance of Office or Agency	12
	 	 	 
	Section 3.09.	Appointment of Paying Agent	12
	 	 	 
	Section 3.10.	Definitive Trust Certificates	13
	 	 	 
	Section 3.11.	Repayment of Trust Certificates	13

 

    	i

    	 

    

 

	ARTICLE Four
	ACTIONS BY OWNER TRUSTEE
	 	 	 
	Section 4.01.	Prior Notice to Owners with Respect to Certain Matters	13
	 	 	 
	Section 4.02.	Action by Owners with Respect to Certain Matters	14
	 	 	 
	Section 4.03.	Action by Owners with Respect to Bankruptcy	14
	 	 	 
	Section 4.04.	Restrictions on Owners’ Power	14
	 	 	 
	Section 4.05.	Majority Control	14
	 	 	 
	ARTICLE Five
	APPLICATION OF TRUST FUNDS; CERTAIN DUTIES
	 	 	 
	Section 5.01.	Establishment of Trust Account	15
	 	 	 
	Section 5.02.	Application of Trust Funds	15
	 	 	 
	Section 5.03.	Method of Payment	16
	 	 	 
	Section 5.04.	No Segregation of Monies; No Interest	16
	 	 	 
	Section 5.05.	Accounting and Reports to Owners, Internal Revenue Service and Others	16
	 	 	 
	ARTICLE Six
	AUTHORITY AND DUTIES OF OWNER TRUSTEE
	 	 	 
	Section 6.01.	General Authority	17
	 	 	 
	Section 6.02.	General Duties	17
	 	 	 
	Section 6.03.	Action Upon Instruction	17
	 	 	 
	Section 6.04.	No Duties Except as Specified in this Agreement or in Instructions	18
	 	 	 
	Section 6.05.	No Action Except Under Specified Documents or Instructions	18
	 	 	 
	Section 6.06.	Restrictions	19
	 	 	 
	Section 6.07.	Covenants for Reporting of Repurchase Demands due to Breaches of Representations and Warranties	19
	 	 	 
	ARTICLE Seven
	CONCERNING THE OWNER TRUSTEE
	 	 	 
	Section 7.01.	Acceptance of Trusts and Duties	20
	 	 	 
	Section 7.02.	Furnishing of Documents	21
	 	 	 
	Section 7.03.	Representations and Warranties of the Owner Trustee	21
	 	 	 
	Section 7.04.	Reliance, Advice of Counsel	22
	 	 	 
	Section 7.05.	Not Acting in Individual Capacity	22
	 	 	 
	Section 7.06.	Owner Trustee Not Liable for Trust Certificates or Receivables	23
	 	 	 
	Section 7.07.	Owner Trustee May Own Trust Certificates and Notes	23
	 	 	 
	Section 7.08.	[Reserved]	23

 

    	ii

    	 

    

 

	ARTICLE Eight
	compensation of owner trustee
	 	 	 
	Section 8.01.	Owner Trustee’s Fees and Expenses	23
	 	 	 
	Section 8.02.	Indemnification	23
	 	 	 
	Section 8.03.	Payments to the Owner Trustee	24
	 	 	 
	ARTICLE Nine
	TERMINATION OF TRUST AGREEMENT
	 	 	 
	Section 9.01.	Termination of Trust Agreement	24
	 	 	 
	ARTICLE Ten
	SUCCESSOR AND ADDITIONAL OWNER TRUSTEES
	 	 	 
	Section 10.01.	Eligibility Requirements for Owner Trustee	25
	 	 	 
	Section 10.02.	Resignation or Removal of Owner Trustee	26
	 	 	 
	Section 10.03.	Successor Owner Trustee	26
	 	 	 
	Section 10.04.	Merger or Consolidation of Owner Trustee	27
	 	 	 
	Section 10.05.	Appointment of Co-Trustee or Separate Trustee	27
	 	 	 
	ARTICLE Eleven
	MISCELLANEOUS
	 	 	 
	Section 11.01.	Supplements and Amendments	28
	 	 	 
	Section 11.02.	No Legal Title to Owner Trust Estate in Owner	30
	 	 	 
	Section 11.03.	Limitations on Rights of Others	30
	 	 	 
	Section 11.04.	Notices	30
	 	 	 
	Section 11.05.	Severability	30
	 	 	 
	Section 11.06.	Separate Counterparts	31
	 	 	 
	Section 11.07.	Successors and Assigns	31
	 	 	 
	Section 11.08.	No Petition	31
	 	 	 
	Section 11.09.	No Recourse	31
	 	 	 
	Section 11.10.	Headings	31
	 	 	 
	Section 11.11.	Governing Law; Submission to Jurisdiction	31
	 	 	 
	Section 11.12.	Trust Certificates Nonassessable and Fully Paid	32
	 	 	 
	Section 11.13.	Depositor Payment Obligation	32
	 	 	 
	Section 11.14.	Tax Treatment	32
	 	 	 
	Section 11.15.	Waiver of Jury Trial	32
	 	 	 
	Section 11.16.	Communications with Rating Agencies	32

 

    	iii

    	 

    

 

EXHIBITS

 

	Exhibit A - Form of Trust Certificate	 	A-1
	 	 	 
	Exhibit B - Form of Seller Certificate	 	B-1
	 	 	 
	Exhibit C - Form of Investment Letter	 	C-1
	 	 	 
	Exhibit D - Form of Rule 144A Letter	 	D-1
	 	 	 
	Exhibit E - Form of Monthly 15Ga-1 Report	 	E-1

 

    	iv

    	 

    

 

This Amended and Restated Trust Agreement, dated
February 23, 2012 is among American Honda Receivables LLC, a Delaware limited liability company, as depositor (the “Depositor”)
and Deutsche Bank Trust Company Delaware, as owner trustee (the “Owner Trustee”),

 

WHEREAS, Honda Auto Receivables 2012-1 Owner
Trust has been created pursuant to a trust agreement, dated as of January 20, 2012 among the Depositor and the Owner Trustee (the
“Initial Trust Agreement”); and

 

WHEREAS, the parties hereto are entering into
this amended and restated trust agreement pursuant to which, among other things, the Initial Trust Agreement will be amended and
restated and $43,464,363.62, aggregate principal amount of Asset Backed Certificates will be issued;

 

NOW, THEREFORE, in consideration of the mutual
agreements herein contained, and of other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the parties hereto agree as follows:

 

ARTICLE
One

 

DEFINITIONS

 

Section 1.01.         General
Definitions. Whenever used herein, unless the context otherwise requires, the following words and phrases shall have the following
meanings:

 

“Administration Agreement”
means the administration agreement, dated February 23, 2012, among the Issuer, the Indenture Trustee, the Depositor and AHFC, as
amended or supplemented from time to time.

 

“Administrator” means AHFC,
as Administrator under the Administration Agreement, and its successors in such capacity.

 

“Agreement” means this Amended
and Restated Trust Agreement, as the same may be amended and supplemented from time to time.

 

“AHFC” means American Honda
Finance Corporation, and its successors.

 

“AHR” means American Honda
Receivables LLC, and its successors.

 

“Applicants” shall have the
meaning specified in Section 3.07.

 

“Authenticating Agent” means
the Owner Trustee or any authenticating agent appointed pursuant to Section 3.03.

 

“Benefit Plan Investor” means
(i) an employee benefit plan (as such term is defined in Section 3(3) of ERISA) whether or not subject to the provisions of Title
I of ERISA, (ii) a plan described in Section 4975(e)(1) of the Code or (iii) any entity whose underlying assets include assets
of a plan described in (i) or (ii) by reason of such plan’s investment in the entity.

 

    	 

    	 

    

 

“Business Day” means any
day other than a Saturday, a Sunday or a day on which banking institutions or trust companies in Los Angeles, California, Wilmington,
Delaware or New York, New York are authorized or obligated by law, regulation, executive order or governmental decree to remain
closed.

 

“Certificate Balance” means,
with respect to any Trust Certificate, the original certificate balance of such Trust Certificate minus all payments on such Trust
Certificate with respect to principal.

 

“Certificate Distribution Account”
means the account established and maintained as such pursuant to Section 5.01.

 

“Certificate of Trust” means
the Certificate of Trust filed for the Issuer pursuant to Section 3810(a) of the Statutory Trust Statute, substantially in the
form of Exhibit A to the Initial Trust Agreement.

 

“Certificate Rate” means
0.00% per annum calculated on the basis of a 360 day year of twelve 30 day months.

 

“Certificate Register” and
“Certificate Registrar” means the register maintained and the registrar (or any successor thereto) appointed
pursuant to Section 3.04.

 

“Certificateholder” or “Holder”
means a Person in whose name a Trust Certificate is registered.

 

“Closing Date” means February
23, 2012.

 

“Code” means the Internal
Revenue Code of 1986, as amended, and Treasury Regulations promulgated thereunder.

 

“Commission” means the Securities
and Exchange Commission, and its successors.

 

“Corporate Trust Office”
means, with respect to the Owner Trustee, the principal corporate trust office of the Owner Trustee located at Deutsche Bank Trust
Company Delaware, 1011 Centre Road, Suite 200, Wilmington, Delaware 19805, Attn: Trust & Securities Services – Honda
2012-1, or at such other address as the Owner Trustee may designate by notice to the Owners and, the Depositor, or the principal
corporate trust office of any successor Owner Trustee at the address designated by such successor Owner Trustee by notice to the
Owners and the Depositor.

 

“Depositor” means AHR in
its capacity as depositor hereunder.

 

“DTC” means The Depository
Trust Company, and its successors.

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

    	2

    	 

    

 

“Expenses” means all liabilities,
obligations, losses, damages, taxes, claims, actions and suits, and any and all reasonable out of pocket costs, expenses and disbursements
(including reasonable legal fees and expenses) of any kind and nature whatsoever.

 

“Indemnified Parties” means
the Owner Trustee and its successors, assigns and agents, the Paying Agent, the Certificate Registrar, any Authenticating Agent
and any co-trustee.

 

“Indenture” means the indenture
dated February 23, 2012 between the Issuer and The Bank of New York Mellon, as indenture trustee.

 

“Investment Letter” means
a letter delivered in connection with the transfer of a Trust Certificate pursuant to Section 3.04(a), substantially in the form
of Exhibit C.

 

“Issuer” means the Honda
Auto Receivables 2012-1 Owner Trust, and its successors.

 

“Opinion of Counsel” means
one or more written opinions of counsel, who may be an employee of or counsel to the Seller, the Depositor or the Servicer, which
counsel shall be acceptable to the Indenture Trustee, the Owner Trustee or each Rating Agency, as applicable.

 

“Original Certificate Balance”
means $43,464,363.62.

 

“Original Contribution Amount”
means $1,000.

 

“Owner” means each Holder
of a Trust Certificate.

 

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

 

“Owner Trustee” means Deutsche
Bank Trust Company Delaware, not in its individual capacity but solely as owner trustee under this Agreement, and any successor
Owner Trustee hereunder.

 

“Paying Agent” means any
paying agent or co-paying agent appointed pursuant to Section 3.09.

 

“Payment Date” means the
15th calendar day of each month, commencing March 15, 2012, or if such day is not a Business Day, then the next succeeding Business
Day.

 

    	3

    	 

    

 

“Percentage Interest” means,
as to any Trust Certificate, (i) the original certificate balance for such Trust Certificate, as specified on the face thereof,
divided by (ii) the Original Certificate Balance; provided, that in determining whether the Holders of the requisite portion or
percentage of the Trust Certificates have given any request, demand, authorization, direction, notice, consent or waiver hereunder
or under any other Basic Document, Trust Certificates owned by the Issuer, any other obligor upon the Certificates, the Seller,
the Servicer or any Affiliate of any of the foregoing Persons shall be disregarded and deemed to be excluded from the Certificate
Balance (unless such Persons own 100% of the Trust Certificates), except that, in determining whether the Indenture Trustee and
Owner Trustee shall be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver, only
Trust Certificates that a Responsible Officer of the Indenture Trustee and the Owner Trustee have actual knowledge of being so
owned shall be so disregarded. Trust Certificates so owned that have been pledged in good faith may be regarded as included in
the Certificate Balance if the pledgee establishes to the satisfaction of the Indenture Trustee or the Owner Trustee, as applicable,
the pledgee’s right so to act with respect to such Trust Certificates and that the pledgee is not the Issuer, any other obligor
upon the Trust Certificates, the Seller or any Affiliate of any of their respective Affiliates. Neither the Indenture Trustee nor
the Owner Trustee shall incur any liability to any person in determining whether a pledgee has the right to act with respect to
such Trust Certificates.

 

“Rating Agency” has the meaning
set forth in the Sale and Servicing Agreement.

 

“Record Date” means the day
immediately preceding the Payment Date so long as the securities are in book-entry form, and the last day of the month preceding
the Payment Date if the securities are issued in definitive form.

 

“Required Rating” means,
with respect to any entity, that such entity (or the parent of such entity) has a rating of at least BBB- by Standard & Poor’s
Ratings Services, a Standard & Poor’s Financial Services LLC business, and at least Baa3 by Moody’s Investors Service,
Inc.

 

“Rule 144A Letter” means
a letter delivered in connection with the transfer of a Trust Certificate pursuant to Section 3.04(a), substantially in the form
attached hereto as Exhibit D.

 

“Sale and Servicing Agreement”
means the sale and servicing agreement, dated February 23, 2012, among the Issuer, the Depositor and AHFC, as servicer, as amended
or supplemented from time to time.

 

“Secretary of State” means
the Secretary of State of the State of Delaware.

 

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

 

“Seller Certificate” means
a certificate of transfer delivered in connection with the transfer of a Trust Certificate pursuant to Section 3.04(a), substantially
in the form of Exhibit B.

 

“Statutory Trust Statute”
means Chapter 38 of Title 12 of the Delaware Code, 12 Del.C. § 3801 et seq., as the same may be amended from
time to time.

 

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

 

“Trust Certificate” means
a certificate evidencing the beneficial interest of an Owner in the Trust, substantially in the form of Exhibit A.

 

    	4

    	 

    

 

Section 1.02.         Other
Definitional Provisions.

 

(a)          Capitalized
terms used herein that are not otherwise defined have the meanings ascribed thereto in the Sale and Servicing Agreement or the
Indenture, as the case may be.

 

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

 

Section 1.03.         Interpretive
Provisions.

 

(a)          For
all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires, (i) terms used
herein include, as appropriate, all genders and the plural as well as the singular, (ii) references to words such as “herein”,
“hereof” and the like shall refer to this Agreement as a whole and not to any particular part, article or section within
this Agreement, (iii) references to a section such as “Section 1.01” and the like shall refer to the applicable Section
of this Agreement, (iv) the term “include”, and all variations thereof shall mean “include without limitation”,
(v) the term “or” shall include “and/or” and (vi) the term “proceeds” shall have the meaning
set forth in the applicable UCC.

 

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

 

ARTICLE
Two

 

ORGANIZATION

 

Section 2.01.         Name.
The trust created hereby shall be known as the “Honda Auto Receivables 2012-1 Owner Trust”, in which name the Owner
Trustee may conduct the business of the Issuer, make and execute contracts and other instruments and sue and be sued, to the extent
herein provided.

 

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

 

Section 2.03.         Purposes
and Powers.

 

(a)          The
sole purpose of the Issuer is to conserve the Owner Trust Estate and collect and disburse the periodic income therefrom for the
use and benefit of the Certificateholders, and in furtherance of such purpose to engage in the following ministerial activities:

 

    	5

    	 

    

 

(i)          to
issue the Notes pursuant to the Indenture and the Trust Certificates pursuant to this Agreement and to sell the Notes and the Trust
Certificates;

 

(ii)         with
the proceeds of the sale of the Notes and the Trust Certificates, to purchase the Receivables, to fund the Reserve Fund and the
Yield Supplement Account, to pay the organizational, start-up and transactional expenses of the Trust and to pay the balance to
the Depositor pursuant to the Sale and Servicing Agreement;

 

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

 

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

 

(v)         to
engage in those activities, including entering into agreements, that are necessary to accomplish the foregoing or are incidental
thereto or connected therewith, including entering into interest rate swap agreements, interest rate cap agreements and other derivative
instruments; and

 

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

 

(b)          The
Issuer is hereby authorized to engage in the foregoing activities. The Issuer shall not engage in any activities, including, without
limitation, assuming or incurring any indebtedness (with the exception of the Notes), other than in connection with the foregoing
or other than as required or authorized by the terms of this Agreement or the other Basic Documents.

 

Section 2.04.         Appointment
of Owner Trustee. The Depositor hereby appoints the Owner Trustee as trustee of the Issuer effective as of the date hereof,
to have all the rights, powers and duties set forth herein, and the Owner Trustee hereby accepts such appointment. The Owner Trustee
may engage, in the name of the Issuer or in its own name on behalf of the Issuer, in the activities of the Issuer, make and execute
contracts on behalf of the Issuer and sue on behalf of the Issuer.

 

Section 2.05.         Initial
Capital Contribution of Owner Trust Estate. The Depositor hereby reaffirms its sale, assignment, transfer and conveyance to
the Owner Trustee, on or about the date of the Initial Trust Agreement, the sum of $1,000.00 (the “Original Contribution
Amount”). The Owner Trustee hereby reaffirms its receipt in trust from the Depositor, as of the date of the Initial Trust
Agreement, of the Original Contribution Amount, which constituted the initial Owner Trust Estate and shall be on or before the
date hereof deposited in the Certificate Distribution Account. On the date hereof the Owner Trustee is hereby directed to withdraw
the Original Contribution Amount from the Certificate Distribution Account and transfer such sums to the Depositor via wire transfer
to the Depositor’s account from which the Original Contribution Amount was received. The Depositor shall pay organizational
expenses of the Issuer as they may arise or shall, upon the request of the Owner Trustee, promptly reimburse the Owner Trustee
for any such expenses paid by the Owner Trustee.

 

    	6

    	 

    

 

Section 2.06.         Declaration
of Trust. The Owner Trustee hereby declares that it will hold the Owner Trust Estate in trust upon and subject to the conditions
set forth herein for the sole purpose of conserving the Owner Trust Estate and collecting and disbursing the periodic income therefrom
for the use and benefit of the Owners, subject to the obligations of the Issuer under the Basic Documents. It is the intention
of the parties hereto that the Issuer constitute a statutory trust under the Statutory Trust Statute and that this Agreement constitute
the governing instrument of such statutory trust. It is the intention of the parties hereto that, solely for income and franchise
tax purposes, (i) so long as there is a sole Owner, the Issuer shall be disregarded as an entity separate from the owner, with
the assets of the Issuer being the Receivables and other assets held by the Issuer, the owner of the Receivables being the sole
Owner and the Notes being non-recourse debt of the sole Owner and (ii) if there is more than one Owner, the Issuer shall be treated
as a partnership for income and franchise tax purposes, with the assets of the partnership being the Receivables and other assets
held by the Issuer and with the partners of the partnership being the Owners and the Notes being debt of the partnership. The parties
agree that, unless otherwise required by appropriate tax authorities, the Issuer will file or cause to be filed annual or other
necessary returns, reports and other forms consistent with the characterization of the Issuer as provided in the preceding sentence
for such tax purposes. Effective as of the date hereof, the Owner Trustee shall have all rights, powers and duties set forth herein
and in the Statutory Trust Statute for the sole purpose and to the extent necessary to accomplish the purpose of the Issuer as
set forth in Section 2.03(a).

 

Section 2.07.         Liability
of Owners. The Owners shall be entitled to the same limitation of personal liability extended to stockholders of private corporations
for profit organized under the general corporation law of the State of Delaware.

 

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

 

Section 2.09.         Situs
of Issuer. The Issuer will be located in the State of Delaware. All bank accounts maintained by the Owner Trustee on behalf
of the Issuer shall be located in the states of Delaware or New York. The Issuer shall not have any employees in any state other
than Delaware; provided, however, that nothing herein shall restrict or prohibit the Owner Trustee from having employees within
or without the State of Delaware. Payments will be received by the Issuer only in, and payments will be made by the Issuer only
from, the states of Delaware or New York. The only offices of the Issuer will be at the Corporate Trust Office.

 

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

 

(a)          The
Depositor has been duly organized and is validly existing as a limited liability company in good standing under the laws of the
State of Delaware, and had at all relevant times, and has, power, authority and legal right to acquire, own and sell the Receivables
and to perform its obligations under and consummate the transactions contemplated by the Basic Documents.

 

    	7

    	 

    

 

(b)          The
Depositor is duly qualified to do business as a foreign limited liability company in good standing, and has obtained all necessary
licenses and approvals, in each jurisdiction in which such qualification, license or approval is necessary for the performance
of its obligations under and consummation of the transactions contemplated by, the Basic Documents.

 

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

 

(d)          This
Agreement constitutes a legal, valid and binding obligation of the Depositor, enforceable in accordance with its terms, except
as such enforceability may be subject to or limited by bankruptcy, insolvency, reorganization, moratorium, liquidation, fraudulent
conveyance or other similar laws affecting the enforcement of creditors’ rights in general and by general principles of equity,
regardless of whether such enforceability shall be considered in a proceeding in equity or in law.

 

(e)          The
execution, delivery and performance by the Depositor of this Agreement and the consummation of the transactions contemplated by
this Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions
of, nor constitute (with or without notice or lapse of time) a default under, the certificate of formation or limited liability
company agreement of the Depositor, or conflict with or violate any of the material terms or provisions of, or constitute (with
or without notice or lapse of time) a default under, any indenture, agreement or other instrument to which the Depositor is a party
or by which it is bound; nor result in the creation or imposition of any Lien upon any of its properties pursuant to the terms
of any such indenture, agreement or other instrument (other than pursuant to the Basic Documents); nor to the best of the Depositor’s
knowledge, violate any law or any order, rule or regulation applicable to the Depositor of any court or of any federal or state
regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties;
which breach, default, conflict, lien or violation would have a material adverse effect on the earnings, business affairs or business
prospects of the Depositor.

 

(f)          There
are no proceedings or investigations pending or, to the Depositor’s knowledge, threatened, before any court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties: (i) asserting
the invalidity of this Agreement, (ii) seeking to prevent the issuance of the Trust Certificates or the consummation of any of
the transactions contemplated by this Agreement or (iii) seeking any determination or ruling that might materially and adversely
affect the performance by the Depositor of its obligations under, or the validity or enforceability of, this Agreement.

 

    	8

    	 

    

 

ARTICLE
Three

 

TRUST
CERTIFICATES AND TRANSFER OF INTERESTS

 

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

 

Section 3.02.         The
Trust Certificates. The Trust Certificates shall be issued in minimum denominations of $100,000 and integral multiples thereof;
provided, however, that one Trust Certificate may be issued in such denomination as required to include any residual amount. The
Trust Certificates shall be executed by the Owner Trustee on behalf of the Issuer by manual or facsimile signature of an authorized
officer of the Owner Trustee and shall have deemed to have been validly issued when so executed and authenticated (as set forth
in Section 3.03 below). Trust Certificates bearing the manual or facsimile signatures of individuals who were, at the time when
such signatures were affixed, authorized to sign on behalf of the Owner Trustee, shall be validly issued and binding obligations
of the Issuer and entitled to the benefit of this Agreement, notwithstanding that such individuals or any of them shall have ceased
to be so authorized prior to the authentication and delivery of such Trust Certificates or did not hold such offices at the date
of authentication and delivery of such Trust Certificates.

 

A transferee of a Trust Certificate shall become
a Certificateholder and shall be entitled to the rights and subject to the obligations of a Certificateholder hereunder upon such
transferee’s acceptance of a Trust Certificate duly registered in such transferee’s name pursuant to Section 3.04.

 

Section 3.03.         Authentication
and Delivery of Trust Certificates. On the Closing Date, the Owner Trustee shall cause to be authenticated and delivered upon
the order of the Depositor, in exchange for the Receivables and the other assets of the Issuer, simultaneously with the sale, assignment
and transfer to the Issuer of the Receivables, and the constructive delivery to the Issuer of the Receivable Files and the other
assets of the Issuer, Trust Certificates duly authenticated by the Owner Trustee, in authorized denominations equaling in the aggregate
the Original Certificate Balance and evidencing the entire ownership of the Issuer. No Trust Certificate shall entitle its Holder
to any benefit under this Agreement, or be valid for any purpose, unless there shall appear on such Trust Certificate a certificate
of authentication substantially in the form set forth in Exhibit A, executed by the Owner Trustee or the Trust’s Authenticating
Agent, by manual signature; and such authentication shall constitute conclusive evidence that such Trust Certificate shall have
been duly authenticated and delivered hereunder. All Trust Certificates shall be dated the date of their authentication. Upon issuance,
authentication and delivery pursuant to the terms hereof, the Trust Certificates will be entitled to the benefits of this Agreement.
Whenever, in any Basic Document, a reference is made to authentication by the Owner Trustee, such reference shall include authentication
by the Owner Trustee and/or authentication by a party appointed to act as the Authenticating Agent of the Owner Trustee. Deutsche
Bank Trust Company Americas shall act as initial Authenticating Agent.

 

    	9

    	 

    

 

Section 3.04.         Registration
of Transfer and Exchange of Trust Certificates.

 

(a)          The
Certificate Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to Section 3.08, a Certificate
Register in which, subject to such reasonable regulations as it may prescribe, it shall provide for the registration of Trust Certificates
and of transfers and exchanges of Trust Certificates as herein provided. Deutsche Bank Trust Company Americas shall act as initial
Certificate Registrar. The Owner Trustee may appoint an agent to act as Certificate Registrar. Upon any resignation of the Certificate
Registrar, the Owner Trustee shall promptly appoint a successor thereto.

 

The Trust Certificates have not been registered
under the Securities Act or listed on any securities exchange. No transfer of a Trust Certificate shall be made unless such transfer
is made pursuant to an effective registration statement under the Securities Act and any applicable state securities laws or is
exempt from the registration requirements under the Securities Act and such state securities laws. In the event that a transfer
is to be made in reliance upon an exemption from the Securities Act and state securities laws, in order to assure compliance with
the Securities Act and such laws, the Holder desiring to effect such transfer and such Holder’s prospective transferee shall
each certify to the Issuer in writing the facts surrounding the transfer in the form of a Seller Certificate and Investment Letter
or a Rule 144A Letter. Except in the case of a transfer as to which the proposed transferee has provided a Rule 144A Letter, there
shall also be delivered to the Issuer an Opinion of Counsel that such transfer may be made pursuant to an exemption from the Securities
Act and an Opinion of Counsel or memorandum of law that such transfer may be made pursuant to an exemption from state securities
laws, which Opinion(s) of Counsel and memorandum of law shall not be an expense of the Issuer or the Owner Trustee. The Depositor
shall provide to any Holder of a Trust Certificate and any prospective transferee designated by any such Holder, information regarding
the Trust Certificates and the Receivables and such other information as shall be necessary to satisfy the condition to eligibility
set forth in Rule 144A(d)(4) for transfer of any such Trust Certificate without registration thereof under the Securities Act pursuant
to the registration exemption provided by Rule 144A. Each Holder of a Trust Certificate desiring to effect such a transfer shall,
and does hereby agree to, indemnify the Issuer, the Owner Trustee and the Depositor against any liability that may result if the
transfer is not so exempt or is not made in accordance with federal and state securities laws. The Owner Trustee on behalf of the
Issuer shall cause each Trust Certificate to contain a legend in the form set forth on the form of Trust Certificate attached hereto
as Exhibit A.

 

(b)          Upon
surrender for registration of transfer of any Trust Certificate at the office of the Certificate Registrar and subject to the satisfaction
of the preceding paragraph, the Owner Trustee shall execute, authenticate and deliver (or shall cause its Authenticating Agent
to authenticate and deliver), in the name of the designated transferee or transferees, one or more new Trust Certificates in authorized
denominations of a like aggregate original certificate balance dated the date of authentication by the Owner Trustee or any Authenticating
Agent; provided that prior to such execution, authentication and delivery, the Owner Trustee shall have received an Opinion of
Counsel to the effect that the proposed transfer will not cause the Issuer to be characterized, as an association (or a publicly
traded partnership) taxable as a corporation or alter the tax characterization of the Notes for federal income tax purposes. At
the option of a Holder, Trust Certificates may be exchanged for other Trust Certificates of authorized denominations of a like
aggregate original certificate balance upon surrender of the Trust Certificates to be exchanged at the office or agency maintained
pursuant to Section 3.08.

 

    	10

    	 

    

 

(c)          At
the option of a Certificateholder, Trust Certificates may be exchanged for other Trust Certificates in authorized denominations
of a like aggregate original certificate balance upon surrender of the Trust Certificates to be exchanged at the office of the
Certificate Registrar. Whenever any Trust Certificates are so surrendered for exchange, the Owner Trustee on behalf of the Issuer
shall execute, authenticate and deliver (or shall cause its Authenticating Agent to authenticate and deliver) the Trust Certificates
that the Certificateholder making the exchange is entitled to receive. Every Trust Certificate presented or surrendered for registration
of transfer or exchange shall be accompanied by a written instrument of transfer in form satisfactory to the Owner Trustee and
the Certificate Registrar duly executed by the Holder or such Holder’s attorney duly authorized in writing.

 

(d)          No
service charge shall be made for any registration of transfer or exchange of Trust Certificates, but the Owner Trustee (or the
Paying Agent) may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection
with any transfer or exchange of Trust Certificates.

 

(e)          The
Trust Certificates may not be acquired or held by or for the account of a Benefit Plan Investor or a person who is not a United
States Person within the meaning of Section 7701(a)(30) of the Code. No transfer of a Trust Certificate shall be made unless the
prospective transferee has certified to the Issuer in writing that it is not a Benefit Plan Investor.

 

(f)          All
Trust Certificates surrendered for registration of transfer or exchange, if surrendered to the Issuer or any agent of the Owner
Trustee or the Issuer under this Agreement, shall be delivered to the Owner Trustee and promptly cancelled by it, or, if surrendered
to the Owner Trustee, shall be promptly cancelled by it, and no Trust Certificates shall be issued in lieu thereof except as expressly
permitted by any of the provisions of this Agreement. The Owner Trustee shall dispose of cancelled Trust Certificates in accordance
with its normal practice.

 

(g)          The
preceding provisions of this Section notwithstanding, the Owner Trustee shall not make, and the Certificate Registrar shall not
register transfers or exchanges of, Trust Certificates for a period of 15 days preceding the due date for any payment with respect
to the Trust Certificates.

 

Section 3.05.         Mutilated,
Destroyed, Lost or Stolen Trust Certificates. If (i) any mutilated Trust Certificate is surrendered to the Certificate Registrar,
or the Certificate Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Trust Certificate and
(ii) there is delivered to the Certificate Registrar and the Owner Trustee such security or indemnity as may be required by them
to save each of them harmless, then, in the absence of notice to a Responsible Officer of the Owner Trustee that such Trust Certificate
has been acquired by a bona fide purchaser, the Owner Trustee on behalf of the Issuer shall execute and the Owner Trustee or its
Authenticating Agent shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Trust Certificate, a new Trust Certificate in an authorized denomination and of a like original certificate balance. In connection
with the issuance of any new Trust Certificate under this Section, the Owner Trustee may require the payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection therewith. Any duplicate Trust Certificate issued
pursuant to this Section shall constitute conclusive evidence of ownership in the Trust, as if originally issued, whether or not
the lost, stolen or destroyed Trust Certificate shall be found at any time.

 

    	11

    	 

    

 

Section 3.06.         Persons
Deemed Owners. Prior to due presentation of a Trust Certificate for registration of transfer, the Owner Trustee, the Certificate
Registrar, any Paying Agent and any of their respective agents may treat the Person in whose name any Trust Certificate is registered
as the owner of such Trust Certificate for the purpose of receiving distributions pursuant to Section 5.02 and for all other purposes
whatsoever, and none of the Owner Trustee, the Certificate Registrar, any Paying Agent or any of their respective agents shall
be affected by any notice to the contrary.

 

Section 3.07.         Access
to List of Certificateholders’ Names and Addresses. The Certificate Registrar shall furnish or cause to be furnished
to the Servicer and the Depositor, within 15 days after receipt by the Certificate Registrar of a written request therefor from
the Servicer or the Depositor, a list, in such form as the Servicer or the Depositor may reasonably require, of the names and addresses
of the Certificateholders as of the most recent Record Date. If three or more Certificateholders, or one or more Certificateholders
evidencing not less than 51% of the Percentage Interests of the Trust Certificates (hereinafter referred to as the “Applicants”),
apply in writing to the Certificate Registrar, and such application states that the Applicants desire to communicate with other
Certificateholders with respect to their rights under this Agreement or under the Trust Certificates, then the Certificate Registrar
shall, within five Business Days after the receipt of such application, afford such Applicants access during normal business hours
to the current list of Certificateholders. Each Holder, by receiving and holding a Trust Certificate, shall be deemed to have agreed
not to hold any of the Depositor, the Certificate Registrar or the Owner Trustee accountable by reason of the disclosure of its
name and address, regardless of the source from which such information was derived.

 

Section 3.08.         Maintenance
of Office or Agency. The Trust shall maintain an office or offices or agency or agencies where Trust Certificates may be surrendered
for registration of transfer or exchange and where notices and demands to or upon the Owner Trustee or its agent in respect of
the Trust Certificates and the Basic Documents may be served. The Owner Trustee initially designates 1011 Centre Road, Suite 200,
Wilmington, Delaware 19805, as its office for such purposes. The Owner Trustee shall give prompt written notice to the Depositor
and to the Certificateholders of any change in the location of the Certificate Register or any such office or agency.

 

Section 3.09.         Appointment
of Paying Agent. The Paying Agent shall make distributions to Certificateholders from the Certificate Distribution Account
pursuant to Sections 5.02 and 5.03 and shall report the amounts of such distributions to the Owner Trustee. Any Paying Agent shall
have the revocable power to withdraw funds from the Certificate Distribution Account for the purpose of making the distributions
referred to above. The Owner Trustee may revoke such power and remove the Paying Agent if the Owner Trustee determines in its sole
discretion that the Paying Agent shall have failed to perform its obligations under this Agreement in any material respect. Deutsche
Bank Trust Company Americas shall act as the initial Paying Agent. Each Paying Agent shall be permitted to resign as Paying Agent
upon 30 days’ written notice to the Owner Trustee. In the event that Deutsche Bank Trust Company Americas shall no longer
be the Paying Agent, the Owner Trustee shall appoint a successor to act as Paying Agent (which shall be a bank or trust company).
The Owner Trustee shall cause such successor Paying Agent or any additional Paying Agent appointed by the Owner Trustee to execute
and deliver to the Owner Trustee an instrument in which such successor Paying Agent or additional Paying Agent shall agree with
the Owner Trustee that, as Paying Agent, such successor Paying Agent or additional Paying Agent will hold all sums, if any, held
by it for payment to the Certificateholders in trust for the benefit of the Certificateholders entitled thereto until such sums
shall be paid to such Certificateholders. The Paying Agent shall return all unclaimed funds to the Owner Trustee and upon removal
of a Paying Agent such Paying Agent shall also return all funds in its possession to the Owner Trustee. The provisions of Sections
7.01, 7.03, 7.04, 8.01 and 8.02 shall apply to the Owner Trustee also in its role as Paying Agent, for so long as the Owner Trustee
shall act as Paying Agent and, to the extent applicable, to any other paying agent appointed hereunder. Any reference in this Agreement
to the Paying Agent shall include any co-paying agent unless the context requires otherwise.

 

    	12

    	 

    

 

Section 3.10.         Definitive
Trust Certificates. The Trust Certificates, upon original issuance, will be issued in definitive, fully registered form.

 

Section 3.11.         Repayment
of Trust Certificates. In the event of an optional purchase pursuant to Section 8.01 (a) of the Sale and Servicing Agreement,
the Trust Certificates will be prepaid in whole, but not in part, at an aggregate prepayment price equal to the aggregate Certificate
Balance of all the Trust Certificates plus accrued interest thereon at the Certificate Rate.

 

ARTICLE
Four

 

ACTIONS BY OWNER TRUSTEE

 

Section 4.01.         Prior
Notice to Owners with Respect to Certain Matters. Subject to the provisions and limitations of Section 4.04, with respect to
the following matters, the Owner Trustee shall not take action unless at least 30 days before the taking of such action, the Owner
Trustee shall have notified the Certificateholders in writing of the proposed action and the Owners shall not have notified the
Owner Trustee in writing prior to the 30th day after such notice is given that such Owners have withheld consent or provided alternative
direction:

 

(a)          the
initiation of any claim or lawsuit by the Issuer (except claims or lawsuits brought in connection with the collection of the Receivables)
and the compromise of any action, claim or lawsuit brought by or against the Issuer (except with respect to the aforementioned
claims or lawsuits for collection of the Receivables);

 

(b)          the
election by the Issuer to file an amendment to the Certificate of Trust (unless such amendment is required to be filed under the
Statutory Trust Statute);

 

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

 

    	13

    	 

    

 

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

 

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

 

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

 

Section 4.02.         Action
by Owners with Respect to Certain Matters. Subject to the provisions and limitations of Section 4.04, the Owner Trustee shall
not have the power, except upon the direction of the Owners, to (i) remove the Administrator pursuant to Section 1.09 of the Administration
Agreement, (ii) appoint a successor Administrator pursuant to Section 1.09 of the Administration Agreement, (iii) remove the Servicer
pursuant to Section 7.01 of the Sale and Servicing Agreement, (iv) except as expressly provided in the Basic Documents, sell the
Receivables after the termination of the Indenture, or (v) authorize the merger or consolidation of the Issuer with or into any
other statutory trust or entity (other than in accordance with Section 3.10 of the Indenture). The Owner Trustee shall take the
actions referred to in the preceding sentence only upon written instructions signed by the Owners.

 

Section 4.03.         Action
by Owners with Respect to Bankruptcy. The Owner Trustee shall not have the power to commence a voluntary proceeding in bankruptcy
relating to the Issuer without the unanimous prior approval of all Owners (including the Depositor) and the delivery to the Owner
Trustee by each such Owner of a certificate certifying that such Owner reasonably believes that the Issuer is insolvent.

 

Section 4.04.         Restrictions
on Owners’ Power. The Owners shall not direct the Owner Trustee to take or to refrain from taking any action if such
action or inaction would be contrary to any obligation of the Issuer or the Owner Trustee under this Agreement or any of the other
Basic Documents or would be contrary to the purpose of the Issuer as set forth in Section 2.03, nor shall the Owner Trustee be
obligated to follow any such direction, if given.

 

Section 4.05.         Majority
Control. Except as expressly provided herein, any action that may be taken by the Owners under this Agreement may be taken
by the Holders of Trust Certificates evidencing not less than a majority of the Percentage Interests evidenced by the Trust Certificates.
Except as expressly provided herein, any written notice of the Owners delivered pursuant to this Agreement shall be effective if
signed by Holders of Trust Certificates evidencing not less than a majority of the Percentage Interests evidenced by the Trust
Certificates at the time of the delivery of such notice.

 

    	14

    	 

    

 

ARTICLE
Five

 

APPLICATION
OF TRUST FUNDS; CERTAIN DUTIES

 

Section 5.01.         Establishment
of Trust Account. The Owner Trustee, for the benefit of the Certificateholders, shall establish and maintain (or shall cause
to be established and maintained) in the name of the Issuer an Eligible Account (the “Certificate Distribution Account”),
bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Certificateholders.

 

The Issuer shall possess all right, title and
interest in funds on deposit from time to time in the Certificate Distribution Account and in the proceeds thereof. Except as otherwise
expressly provided herein, the Certificate Distribution Account shall be under the sole dominion and control of the Owner Trustee
for the benefit of the Certificateholders. If, at any time, the Owner Trustee ceases to be an Eligible Institution, the Owner Trustee
(or the Depositor on behalf of the Owner Trustee, if the Certificate Distribution Account is not then held by the Owner Trustee
or an Affiliate thereof) shall cause the Certificate Distribution Account to be moved to an Eligible Institution and shall transfer
any cash and/or any investments to such new Certificate Distribution Account. Monies on deposit in the Certificate Distribution
Account may be invested in Eligible Investments upon the terms set forth in Section 4.01 of the Sale and Servicing Agreement, as
if the Certificate Distribution Account were an “Account”. Earnings on investments of funds in the Certificate Distribution
Account shall be paid to the Servicer as part of the Supplemental Servicing Fee and any losses and investment expenses shall be
charged against the funds in such account.

 

Section 5.02.         Application
of Trust Funds.

 

(a)          On
each Payment Date, the Paying Agent will distribute to Certificateholders, on the basis of the Percentage Interest evidenced by
their Trust Certificates, amounts deposited in the Certificate Distribution Account pursuant to Section 4.06 of the Sale and Servicing
Agreement with respect to such Payment Date.

 

(b)          On
each Payment Date, the Paying Agent shall send to each Certificateholder the statement or statements provided to the Owner Trustee
by the Servicer pursuant to Section 4.10 of the Sale and Servicing Agreement with respect to such Payment Date.

 

(c)          In
the event that any withholding tax is imposed on the Issuer’s payment (or allocations of income) to an Owner, such tax shall
reduce the amount otherwise distributable to the Owner in accordance with this Section. The Paying Agent will retain from amounts
otherwise distributable to the Owners sufficient funds for the payment of any tax that is legally owed by the Issuer (but such
authorization shall not prevent the Owner Trustee or the Paying Agent from contesting any such tax in appropriate proceedings and
withholding payment of such tax, if permitted by law, pending the outcome of such proceedings) upon the written direction of the
Depositor. The amount of any withholding tax imposed with respect to an Owner shall be treated as cash distributed to such Owner
at the time it is withheld by the Issuer and remitted to the appropriate taxing authority. If there is a possibility that
withholding tax is payable with respect to a distribution, the Paying Agent may in its sole discretion withhold such amounts in
accordance with this paragraph (c).

 

    	15

    	 

    

 

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

 

Section 5.04.         No
Segregation of Monies; No Interest. Subject to Sections 5.01 and 5.02, monies received by the Owner Trustee or the Paying Agent
hereunder need not be segregated in any manner except to the extent required by law or the Sale and Servicing Agreement and may
be deposited under such general conditions as may be prescribed by law, and neither the Owner Trustee nor the Paying Agent shall
be liable for any interest thereon.

 

Section 5.05.         Accounting
and Reports to Owners, Internal Revenue Service and Others. The Owner Trustee shall maintain (or cause to be maintained) the
books of the Issuer on a fiscal year basis ending March 31 of each year and the accrual method of accounting. In addition, the
Issuer shall deliver to each Owner such information, reports or statements prepared by the Administrator as may be required by
the Code and applicable Treasury Regulations and as may be required to enable each Owner to prepare its federal and state income
tax returns. Consistent with the Issuer’s characterization for tax purposes, as disregarded as an entity separate from the
Owner, no federal income tax return shall be filed on behalf of the Issuer unless either (i) the Owner Trustee shall receive an
Opinion of Counsel that, based on a change in applicable law occurring after the date hereof, the Code requires such a filing or
(ii) the Internal Revenue Service shall determine that the Issuer is required to file such a return. Neither the Owner Trustee
nor any Certificateholder will, under any circumstances, and at any time, make an election on IRS Form 8832 or otherwise, to classify
the Trust as an association taxable as a corporation for federal, state or any other applicable tax purpose. In the event that
the Issuer is required to file tax returns, the Owner Trustee shall, to the extent not undertaken by the Administrator pursuant
to the Administration Agreement, prepare or shall cause to be prepared any tax returns required to be filed by the Issuer and shall
remit such returns to the Depositor (or if the Depositor no longer owns any Certificates, the Owner designated for such purpose
by the Depositor to the Owner Trustee in writing) at least five days before such returns are due to be filed. The Depositor (or
such designee Owner, as applicable) shall promptly sign such returns and deliver such returns after signature to the Owner Trustee
and such returns shall be filed by the Owner Trustee with the appropriate tax authorities. In no event shall the Owner Trustee
or the Depositor (or such designee Owner, as applicable) be liable for any liabilities, costs or expenses of the Issuer or the
Noteholders arising out of the application of any tax law, including federal, state, foreign or local income or excise taxes or
any other tax imposed on or measured by income (or any interest, penalty or addition with respect thereto or arising from a failure
to comply therewith) except for any such liability, cost or expense attributable to any act or omission by the Owner Trustee or
the Depositor (or such designee Owner, as applicable), as the case may be, in breach of its obligations under this Agreement.

 

    	16

    	 

    

 

The Depositor is authorized and directed to
execute on behalf of the Issuer, and after execution to deliver to the Administrator for filing with the Commission, all documents
and forms required to be filed in accordance with applicable law or the rules and regulations prescribed by the Commission.

 

ARTICLE
Six

 

AUTHORITY
AND DUTIES OF OWNER TRUSTEE

 

Section 6.01.         General
Authority. Subject to the provisions and limitations of Sections 2.03 and 2.06, the Owner Trustee is authorized and directed
to execute and deliver the Basic Documents to which the Issuer is to be a party and each certificate or other document attached
as an exhibit to or contemplated by the Basic Documents to which the Issuer is to be a party and any amendment or other agreement,
as evidenced conclusively by the Owner Trustee’s execution thereof. In addition to the foregoing, the Owner Trustee is authorized,
but shall not be obligated, to take all actions required of the Issuer pursuant to the Basic Documents. The Owner Trustee is further
authorized from time to time to take such action as the Administrator recommends with respect to the Basic Documents.

 

Section 6.02.         General
Duties. Subject to the provisions and limitations of Sections 2.03 and 2.06, it shall be the duty of the Owner Trustee to discharge
(or cause to be discharged) all of its responsibilities pursuant to the terms of this Agreement and the other Basic Documents to
which the Issuer is a party and to administer the Issuer in the interest of the Owners, subject to the Basic Documents and in accordance
with the provisions of this Agreement. Notwithstanding the foregoing, the Owner Trustee shall be deemed to have discharged its
duties and responsibilities hereunder and under the other Basic Documents to the extent the Administrator has agreed in the Administration
Agreement to perform any act or to discharge any duty of the Owner Trustee hereunder or under any Basic Document, and the Owner
Trustee shall not be held liable for the default or failure of the Administrator to carry out its obligations under the Administration
Agreement.

 

Section 6.03.         Action
Upon Instruction.

 

(a)          Subject
to Article Four, in accordance with the terms of the Basic Documents, the Owners may by written instruction direct the Owner Trustee
in the management of the Issuer. Such direction may be exercised at any time by written instruction of the Owners pursuant to Article
Four.

 

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

 

    	17

    	 

    

 

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

 

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

 

Section 6.04.         No
Duties Except as Specified in this Agreement or in Instructions. The Owner Trustee shall not have any duty or obligation to
manage, make any payment with respect to, register, record, sell, dispose of, or otherwise deal with the Owner Trust Estate, or
to otherwise take or refrain from taking any action under, or in connection with, any document contemplated hereby to which the
Owner Trustee is a party, except as expressly provided by the terms of this Agreement or in any document or written instruction
received by the Owner Trustee pursuant to Section 6.03; and no implied duties or obligations shall be read into this Agreement
or any other Basic Document against the Owner Trustee. The Owner Trustee shall have no responsibility for filing any financing
or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any security interest
or lien granted to it hereunder or to prepare or file any Commission filing for the Issuer or to record this Agreement or any other
Basic Document. The Owner Trustee nevertheless agrees that it will, at its own cost and expense, promptly take all action as may
be necessary to discharge any liens (other than the lien of the Indenture) on any part of the Owner Trust Estate that result from
actions by, or claims against, the Owner Trustee that are not related to the ownership or the administration of the Owner Trust
Estate.

 

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

 

    	18

    	 

    

 

Section 6.06.         Restrictions.
The Owner Trustee shall not take any action (i) that is inconsistent with the purposes of the Issuer set forth in Section 2.03
or (ii) that, to the actual knowledge of the Owner Trustee, would result in the Issuer’s becoming taxable as a corporation
for federal or state income tax purposes. The Owners shall not direct the Owner Trustee to take action that would violate the provisions
of this Agreement.

 

Section 6.07.         Covenants
for Reporting of Repurchase Demands due to Breaches of Representations and Warranties. The Owner Trustee shall, no later than
the third Business Day after the last day of each calendar month, provide notice to American Honda Finance Corporation and American
Honda Receivables LLC (each, a "Honda Party," and together, the “Honda Parties”) in the form set forth as
Exhibit E hereto (or such other form or format as the Honda Parties may otherwise specify) of the request or any requests of (i)
all demands communicated to the Owner Trustee for the repurchase or replacement of any Receivable for breach of the representations
and warranties concerning such Receivable relating to the Issuer and (ii) any actions taken by the Owner Trustee with respect to
such demand communicated to the Owner Trustee in respect of any Receivables. In addition, the Owner Trustee shall, upon written
request of either Honda Party, at any time they reasonably feel necessary, provide notification to the Honda Parties with respect
to any actions taken by the Owner Trustee as soon as practicable and in any event within five Business Days of receipt of such
request. Such notices shall be provided to the Honda Parties in accordance with Section 11.04 of the Indenture. The Owner Trustee
and the Issuer acknowledge and agree that the purpose of this Section 6.07 is to facilitate compliance by the Honda Parties with
Rule 15Ga-1 under the Securities Exchange Act of 1934, as amended, and Items 1104(e) and 1121(c) of Regulation AB (the “Repurchase
Rules and Regulations”). The Owner Trustee acknowledges that interpretations of the requirements of the Repurchase Rules
and Regulations may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among
participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to comply with reasonable written
requests (including email in PDF format) made by the Honda Parties in good faith for delivery of information in its possession
under these provisions on the basis of evolving interpretations of the Repurchase Rules and Regulations. The Owner Trustee shall
cooperate fully with the Honda Parties to deliver any and all records and any other information in its possession and necessary
in the good faith determination of the Honda Parties to permit them to comply with the provisions of Repurchase Rules and Regulations.
In no event shall the Owner Trustee have any responsibility or liability in connection with any filing required to be made by a
securitizer under the Repurchase Rules and Regulations.

 

    	19

    	 

    

 

ARTICLE
Seven

 

CONCERNING
THE OWNER TRUSTEE

 

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

 

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

 

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

 

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

 

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

 

(e)          the
Owner Trustee shall not be responsible for or in respect of the validity or sufficiency of this Agreement or for the due execution
hereof by the Depositor or for the form, character, genuineness, sufficiency, value or validity of any of the Owner Trust Estate,
or for or in respect of the validity or sufficiency of the Basic Documents, other than the certificate of authentication on the
Trust Certificates, and the Owner Trustee shall not in any event assume or incur any liability, duty or obligation to any Noteholder
or to any Owner, other than as expressly provided for in the Basic Documents;

 

(f)          the
Owner Trustee shall not be liable for the default or misconduct of the Administrator, the Seller, the Depositor, the Indenture
Trustee or the Servicer under any Basic Document or otherwise, and the Owner Trustee shall not have any obligation or liability
to perform the obligations of the Issuer under this Agreement or the other Basic Documents that are required to be performed by
the Administrator under the Administration Agreement, the Indenture Trustee under the Indenture or the Servicer or the Seller under
the Sale and Servicing Agreement or any other Person under any of the Basic Documents; and

 

(g)          the
Owner Trustee shall not be under any obligation to exercise any of the rights or powers vested in it by this Agreement, or to institute,
conduct or defend any litigation under this Agreement or otherwise or in relation to this Agreement or any other Basic Document,
at the request, order or direction of any of the Owners, unless such Owners have offered to the Owner Trustee security or indemnity
satisfactory to it against the costs, expenses and liabilities that may be incurred by the Owner Trustee therein or thereby; the
right of the Owner Trustee to perform any discretionary act enumerated in this Agreement or in any other Basic Document shall not
be construed as a duty, and the Owner Trustee shall not be answerable for other than its gross negligence, bad faith or willful
misconduct in the performance of any such act.

 

    	20

    	 

    

 

(h)          in
no event shall the Owner Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder
arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation strikes, work stoppages,
acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss
or malfunctions of utilities; it being understood that the Owner Trustee shall use reasonable efforts which are consistent with
accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

Section 7.02.         Furnishing
of Documents.

 

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

 

Section 7.03.         Representations
and Warranties of the Owner Trustee.  The Owner Trustee hereby represents and warrants to the Depositor and the Owners,
that:

 

(a)          it
is a banking corporation duly organized and validly existing under the laws of the State of Delaware; it has all requisite corporate
power and authority to execute, deliver and perform its obligations under this Agreement;

 

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

 

(c)          neither
the execution nor the delivery by it of this Agreement, nor the consummation by it of the transactions contemplated hereby, nor
compliance by it with any of the terms or provisions hereof will contravene any federal or Delaware governmental rule or regulation
governing the banking or trust powers of the Owner Trustee or any judgment or order binding on it, or constitute any default under
its charter documents or bylaws; and

 

(d)          this
Agreement constitutes a legal, valid and binding obligation of the Owner Trustee, enforceable against the Owner Trustee in accordance
with its terms, except as such enforceability may be subject to or limited by bankruptcy, insolvency, reorganization, moratorium,
liquidation, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights in general and by
general principles of equity, regardless of whether such enforceability shall be considered in a proceeding in equity or in law;
and

 

(e)          the
execution, delivery and performance by the Owner Trustee of this Agreement and the consummation of the transactions contemplated
by this Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions
of, nor constitute (with or without notice or lapse of time) a default under, the charter documents or bylaws of the Owner Trustee;
nor result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement
or other instrument (other than pursuant to the Basic Documents); and

 

    	21

    	 

    

 

(f)          there
are no proceedings or investigations pending or, to the Owner Trustee’s actual knowledge, threatened, before any court, regulatory
body, administrative agency or other governmental instrumentality having jurisdiction over the Owner Trustee or its properties:
(i) asserting the invalidity of this Agreement or (ii) seeking any determination or ruling that might materially and adversely
affect the performance by the Owner Trustee of its obligations under, or the validity or enforceability of, this Agreement.

 

Section 7.04.         Reliance,
Advice of Counsel.

 

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

 

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

 

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

 

    	22

    	 

    

 

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

 

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

 

Section 7.08.         [Reserved].

 

ARTICLE
Eight

compensation
of owner trustee

 

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

 

Section 8.02.         Indemnification.
The Issuer shall, or shall cause the Administrator to, indemnify each Indemnified Party and its respective officers, directors,
employees and agents against any and all loss, liability or expense (including reasonable attorney’s fees and expenses) incurred
by it in connection with the administration of the Issuer and the performance of its duties hereunder not resulting from its own
willful misconduct, gross negligence or bad faith. The Indemnified Party shall notify the Issuer and the Administrator promptly
of any claim for which it may seek indemnity. The indemnities contained in this Section shall survive the resignation or termination
of the Owner Trustee or the termination of this Agreement. In the event of any claim, action or proceeding for which indemnity
will be sought pursuant to this Section, the Owner Trustee’s choice of legal counsel shall be subject to the approval of
the Depositor (or if the Depositor is no longer an owner, the designee of the Depositor), which approval shall not be unreasonably
withheld. Neither the Issuer nor the Administrator need reimburse any expense or indemnify against any loss, liability or expense
incurred by any Indemnified Party (1) through such party’s own willful misconduct, gross negligence or bad faith or (2) in
the case of the inaccuracy of any representation or warranty contained in Sections 7.03 expressly made by the Owner Trustee.

 

    	23

    	 

    

 

Section 8.03.         Payments
to the Owner Trustee. Any amounts paid to the Owner Trustee pursuant to this Article shall be deemed not to be a part of the
Owner Trust Estate immediately after such payment. Any amounts owing to the Owner Trustee under this Agreement or the other Basic
Documents shall constitute a claim against the Owner Trust Estate.

 

ARTICLE
Nine

 

TERMINATION
OF TRUST AGREEMENT

 

Section 9.01.         Termination
of Trust Agreement.

 

(a)          The
Issuer shall dissolve immediately prior to the earlier to occur of (i) the purchase on any Payment Date by the Servicer, or any
successor Servicer, at its option, pursuant to Section 8.01(a) of the Sale and Servicing Agreement, of the Owner Trust Estate other
than the Accounts and the Certificate Distribution Account, (ii) the final distribution by the Owner Trustee of all monies or other
property or proceeds of the Owner Trust Estate in accordance with the terms of the Indenture, the Sale and Servicing Agreement,
and Article Five, or (iii) the Payment Date next succeeding the month which is one year after the maturity or other liquidation
of the last Receivable and the disposition of any amount received upon liquidation of any property remaining in the Owner Trust
Estate. The bankruptcy, liquidation, dissolution, death or incapacity of any Owner shall not (i) operate to terminate this Agreement
or the Issuer, (ii) entitle such Owner’s legal representatives or heirs to claim an accounting or to take any action or proceeding
in any court for a partition or winding up of all or any part of the Issuer or Owner Trust Estate or (iii) otherwise affect the
rights, obligations and liabilities of the parties hereto. The Issuer shall be entitled to deduct from the final distribution to
Certificateholders any amounts required to pay any other claims against and obligations of the Issuer in accordance with Section
3808(e) of the Statutory Trust Statute.

 

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

 

(c)          The
outstanding Trust Certificates are subject to redemption in whole, but not in part, pursuant to Section 8.01 of the Sale and Servicing
Agreement; provided that the Issuer has available funds sufficient to pay the aggregate Certificate Balance of all the Trust Certificates,
together with accrued interest at the Certificate Rate to but excluding the Payment Date. Notice of any termination of the Issuer,
specifying the Payment Date upon which Certificateholders shall surrender their Trust Certificates to the Paying Agent for payment
of the final distribution and cancellation, shall be given by the Owner Trustee by letter to Certificateholders mailed within five
Business Days of receipt of notice of such termination from the Servicer given pursuant to Section 8.01(b) of the Sale and Servicing
Agreement, stating (i) the Payment Date upon or with respect to which final payment of the Trust Certificates shall be made upon
presentation and surrender of the Trust Certificates at the office of the Paying Agent therein designated, (ii) the amount of any
such final payment and (iii) that the Record Date otherwise applicable to such Payment Date is not applicable, payments being made
only upon presentation and surrender of the Trust Certificates at the office of the Paying Agent therein specified. The Owner Trustee
shall give such notice to the Certificate Registrar (if other than the Owner Trustee) and the Paying Agent (if other than the Owner
Trustee) at the time such notice is given to Certificateholders. Upon presentation and surrender of the Trust Certificates, the
Paying Agent shall cause to be distributed to Certificateholders amounts distributable on such Payment Date pursuant to Section
5.02. The Owner Trustee shall promptly notify the Administrator (who shall make such notice available to each Rating Agency pursuant
to Section 1.02(c) of the Administration Agreement) upon the final payment of the Trust Certificates.

 

    	24

    	 

    

 

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

 

(e)          Upon
the winding up of the Issuer and its termination, the Owner Trustee shall, upon the direction and at the expense of the Depositor,
cause the Certificate of Trust to be cancelled by filing a certificate of cancellation with the Secretary of State in accordance
with Section 3810 of the Statutory Trust Statute. Upon the filing of the certificate of cancellation, the Issuer and this Agreement
(other than Article 8) shall terminate and be of no further force or effect.

 

ARTICLE
Ten

 

SUCCESSOR
AND ADDITIONAL OWNER TRUSTEES

 

Section 10.01.         Eligibility
Requirements for Owner Trustee. The Owner Trustee shall at all times (i) maintain its principal place of business in the State
of Delaware or such other location within the United States to which the Depositor shall consent in writing, (ii) be authorized
to exercise corporate trust powers, (iii) have a combined capital and surplus of at least $50,000,000, (iv) be subject to supervision
or examination by federal or state authorities and (v) have the Required Rating. If such person shall publish reports of condition
at least annually pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purpose
of this Section, the combined capital and surplus of such person shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. In case at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of this Section, the Owner Trustee shall resign immediately in the manner and with the effect specified
in Section 10.02.

 

    	25

    	 

    

 

Section 10.02.         Resignation
or Removal of Owner Trustee. The Owner Trustee may at any time resign and be discharged from the trusts hereby created by giving
written notice thereof to the Administrator. Upon receiving such notice of resignation, the Administrator shall promptly appoint
a successor Owner Trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the resigning
Owner Trustee, and one copy to the successor Owner Trustee. If no successor Owner Trustee shall have been so appointed and have
accepted appointment within 30 days after the giving of such notice of resignation, the resigning Owner Trustee may petition at
the Issuer’s expense any court of competent jurisdiction for the appointment of a successor Owner Trustee.

 

If at any time the Owner Trustee shall cease
to be eligible in accordance with Section 10.01 and shall fail to resign after written request therefor by the Administrator,
or if at any time the Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or a receiver of
the Owner Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Owner Trustee
or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Administrator may remove
the Owner Trustee. If the Administrator shall remove the Owner Trustee under the authority of the immediately preceding sentence,
the Administrator shall promptly appoint a successor Owner Trustee by written instrument, in duplicate, one copy of which instrument
shall be delivered to the outgoing Owner Trustee so removed and one copy to the successor Owner Trustee and shall pay all fees
and expenses owed to the outgoing Owner Trustee.

 

Any resignation or removal of the Owner Trustee
and appointment of a successor Owner Trustee pursuant to any of the provisions of this Section shall not become effective until
acceptance of appointment by the successor Owner Trustee pursuant to Section 10.03 and payment of all fees and expenses owed to
the outgoing Owner Trustee. The Administrator shall provide notice of such resignation or removal of the Owner Trustee to each
Rating Agency pursuant to Section 1.02(c) of the Administration Agreement.

 

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

 

    	26

    	 

    

 

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

 

Upon acceptance of appointment by a successor
Owner Trustee pursuant to this Section, the Administrator shall mail notice thereof to all Certificateholders, the Indenture Trustee
and the Noteholders; and, in the case of each Rating Agency, shall make such notice available pursuant to Section 1.02(c) of the
Administration Agreement. If the Administrator shall fail to mail such notice within ten days after acceptance of such appointment
by the successor Owner Trustee the successor Owner Trustee shall cause such notice to be mailed at the expense of the Administrator.

 

Section 10.04.         Merger
or Consolidation of Owner Trustee. Any Person into which the Owner Trustee may be merged or converted or with which it may
be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Owner Trustee shall be a party,
or any Person succeeding to all or substantially all of the corporate trust business of the Owner Trustee shall be the successor
of the Owner Trustee hereunder, without the execution or filing of any instrument or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding; provided, that such Person shall be eligible pursuant to Section
10.01 and, provided, further, that the Owner Trustee shall mail notice of such merger or consolidation to the Administrator (who
shall make such notice available to each Rating Agency pursuant to Section 1.02(c) of the Administration Agreement).

 

Section 10.05.         Appointment
of Co-Trustee or Separate Trustee. Notwithstanding any other provisions of this Agreement, at any time, for the purpose of
meeting any legal requirements of any jurisdiction in which any part of the Owner Trust Estate or any Financed Vehicle may at the
time be located, the Administrator and the Owner Trustee acting jointly shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by the Administrator and Owner Trustee to act as co-trustee, jointly with the
Owner Trustee, or as separate trustee or separate trustees, of all or any part of the Owner Trust Estate, and to vest in such Person,
in such capacity, such title to the Trust or any part thereof and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Administrator and the Owner Trustee may consider necessary or desirable. If the Administrator
shall not have joined in such appointment within 15 days after the receipt by it of a request to do so, the Owner Trustee alone
shall have the power to make such appointment. The Owner Trustee agrees that upon receipt of a written request from the Administrator
to appoint a co-trustee, it will, at the expense of the Issuer, either (i) promptly provide evidence reasonably satisfactory to
the Administrator that such co-trustee is not required or (ii) cooperate fully to ensure a co-trustee is appointed with any required
timeframe. No co-trustee or separate trustee under this Agreement shall be required to meet the terms of eligibility as a successor
Owner Trustee pursuant to Section 10.01, except that such co-trustee or successor trustee shall have the Required Rating, and no
notice of the appointment of any co-trustee or separate trustee shall be required pursuant to Section 10.03.

 

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

 

    	27

    	 

    

 

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

 

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

 

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

 

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

 

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

 

ARTICLE
Eleven

MISCELLANEOUS

 

Section 11.01.         Supplements
and Amendments.

 

(a)          This
Agreement may be amended by the parties hereto with prior written notice to the Administrator (who shall make such notice available
to each Rating Agency pursuant to Section 1.02(c) of the Administration Agreement), without the consent of any Securityholders,
to cure any ambiguity, to correct or supplement any provisions in this Agreement or for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions in this Agreement or of modifying in any manner the rights of the
Noteholders or the Certificateholders; provided, however, that such action shall not, as evidenced by an Opinion of Counsel, adversely
affect in any material respect the interests of any Noteholder or Certificateholder.

 

    	28

    	 

    

 

(b)          This
Agreement may also be amended from time to time by the parties hereto, with prior written notice to the Administrator (who shall
make such notice available to each Rating Agency pursuant to Section 1.02(c) of the Administration Agreement), with the consent
of the Holders of Trust Certificates evidencing not less than a majority of the Percentage Interests evidenced by the Trust Certificates
and, if such amendment materially and adversely affects the interests of the Noteholders, with the consent of Holders (as such
term is defined in the Indenture) of Notes evidencing not less than a majority of the Outstanding Amount of the Notes, for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying
in any manner the rights of the Noteholders or the Certificateholders; provided, however, that no such amendment shall (i) increase
or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on Receivables or distributions
that shall be required to be made for the benefit of the Noteholders or the Certificateholders, (ii) increase or reduce any Interest
Rate or Certificate Rate or (iii) reduce the aforesaid percentage of the Outstanding Amount of the Notes or of the Percentage Interests
evidenced by the Trust Certificates required to consent to any such amendment, without the consent of the Holders of all the outstanding
Notes and Trust Certificates affected thereby.

 

(c)          Prior
to the execution of any such amendment or consent, the Owner Trustee shall furnish written notification of the substance of such
amendment or consent to the Indenture Trustee and the Administrator (who shall make such notice available to each Rating Agency
pursuant to Section 1.02(c) of the Administration Agreement).

 

(d)          Promptly
after the execution of any such amendment or consent, the Owner Trustee shall furnish written notification of the substance of
such amendment or consent to each Certificateholder. It shall not be necessary for the consent of Certificateholders, Noteholders
or the Indenture Trustee pursuant to this Section to approve the particular form of any proposed amendment or consent, but it shall
be sufficient if such consent shall approve the substance thereof. The manner of obtaining such consents (and any other consents
of Certificateholders provided for in this Agreement or in any other Basic Document) and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable requirements as the Owner Trustee may prescribe.

 

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

 

(f)          In
connection with the execution of any amendment to this Agreement or any other basic Document to which the Issuer is a party and
for which amendment the Owner Trustee’s consent is sought, the Owner Trustee shall be entitled to receive and rely upon an
Opinion of Counsel to the effect that the execution of such amendment is authorized or permitted by this Agreement or such other
Basic Document, as the case may be, and that all conditions precedent in this Agreement or such other Basic Document, as the case
may be, for the execution and delivery thereof by the Issuer or the Owner Trustee, as the case may be, have been satisfied. The
Owner Trustee may, but shall not be obligated to, enter into any such amendment that affects the Owner Trustee’s own rights,
duties or immunities under this Agreement or otherwise.

 

    	29

    	 

    

 

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

 

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

 

Section 11.04.         Notices.

 

(a)          Unless
otherwise expressly specified or permitted by the terms hereof, all demands, notices and communications under this Agreement shall
be in writing, personally delivered, mailed by electronic mail (if an address therefore has been provided by the respective party
in writing), mailed by certified mail, return receipt requested, delivered by overnight delivery service, or sent via facsimile
transmission and shall be deemed to have been duly given upon receipt (i) in the case of the Owner Trustee, Deutsche Bank Trust
Company Delaware, 1011 Centre Road, Suite 200, Wilmington, Delaware 19805, Attn: Trust & Securities Services – Honda
2012-1, with a copy to Deutsche Bank Trust Company Americas at c/o Deutsche Bank National Trust Company, 100 Plaza One, 6th Floor
- MS JCY03-0699, Jersey City, NJ 07311-3901, Attention: Structured Finance Services - ABS, (ii) in the case of the Depositor, to
American Honda Receivables LLC, 20800 Madrona Avenue, Torrance, California 90503, Attention: President or (iii) as to any party,
at such other address as shall be designated by such party in a written notice to the other party.

 

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

 

Section 11.05.         Severability.
If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever held
invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other covenants, agreements,
provisions or terms of this Agreement or of the Trust Certificates or the rights of the Holders thereof.

 

    	30

    	 

    

 

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

 

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

 

Section 11.08.         No
Petition. The Owner Trustee, by entering into this Agreement, each Certificateholder, by accepting a Trust Certificate, and
the Indenture Trustee and each Noteholder, by accepting the benefits of this Agreement, each hereby covenants and agrees that it
will not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor or the Issuer
of, any bankruptcy proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations
relating to the Trust Certificates, the Notes, this Agreement or any other Basic Document.

 

Section 11.09.         No
Recourse. Each Certificateholder by accepting a Trust Certificate acknowledges that such Certificateholder’s Trust Certificates
represent beneficial interests in the Issuer only and do not represent interests in or obligations of the Depositor, the Seller,
the Servicer, the Administrator, the Owner Trustee, the Indenture Trustee or any of their respective Affiliates and no recourse
may be had against such parties or their assets, except as may be expressly set forth or contemplated in the Trust Certificates,
this Agreement or any other Basic Document.

 

Section 11.10.         Headings.
The headings of the various Articles and Sections herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.

 

Section 11.11.         Governing
Law; Submission to Jurisdiction. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE,
WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

Each of the parties hereto hereby submits
to the jurisdiction of the United States District Court for the Southern District of New York and of any New York State court sitting
in New York City for purposes of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated
hereby. Each of the parties hereto hereby further irrevocably waives any claim that any such courts lack jurisdiction over such
party, and agrees not to plead or claim, in any legal action or proceeding with respect to this Agreement in any of the aforesaid
courts, that any such court lacks jurisdiction over such party. Each of the parties hereto irrevocably waives, to the fullest extent
permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such proceeding brought in
such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.

 

    	31

    	 

    

 

Section 11.12.         Trust
Certificates Nonassessable and Fully Paid. Certificateholders shall not be personally liable for obligations of the Issuer.
The interests represented by the Trust Certificates shall be nonassessable for any losses or expenses of the Issuer or for any
reason whatsoever, and, upon the authentication thereof by the Owner Trustee pursuant to Section 3.03, 3.04 or 3.05, the Trust
Certificates are and shall be deemed fully paid.

 

Section 11.13.         Depositor
Payment Obligation. The Depositor shall be responsible for payment of the Administrator’s compensation under the Administration
Agreement and shall reimburse the Administrator for all expenses and liabilities of the Administrator incurred thereunder. In addition,
the Depositor shall be responsible for the payment of all fees and expenses of the Issuer and the Trustees paid by any of them
in connection with any of their obligations under the Basic Documents to obtain or maintain any required license under the Pennsylvania
Motor Vehicle Sales Finance Act and the Maryland Act (MD Fin. Inst. Code Ann., Title 11, Subtitle 4).

 

Section 11.14.         Tax
Treatment. Notwithstanding the foregoing or anything herein to the contrary, all persons (and their respective employees, representatives
or other agents) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the
transaction described herein and all materials of any kind (including opinions or other tax analyses) that are provided to the
recipient relating to such tax treatment and tax structure.

 

Section 11.15.         Waiver
of Jury Trial. Each of the parties hereto irrevocably waives, to the fullest extent permitted by applicable law, any and all
right to trial by jury in any legal proceeding arising out of or relating to the transaction contemplated hereby.

 

Section 11.16.         Communications
with Rating Agencies. If the Owner Trustee shall receive any written or oral communications from any Rating Agency (or any
of their respective officers, directors or employees) with respect to the transactions contemplated hereby or under the Basic Documents
or in any way relating to the Notes, the Owner agrees to coordinate with the Administrator with respect to any communication received
from a Rating Agency and further agrees that in no event shall the Owner Trustee engage in any oral communication with respect
to the substance of the transactions contemplated hereby or under the Basic Documents or in any way relating to the Notes, with
any Rating Agency (or any of their respective officers, directors or employees) without the participation of the Administrator.

 

The Owner Trustee will not be responsible
for delays attributable to the Administrator’s failure to deliver any information related to any communication with a Rating
Agency (with respect to this section, the “Information”), defects in the Information supplied to the Rating Agency
or Administrator or other circumstances beyond the control of the Owner Trustee. In addition, the Owner Trustee shall not be under
any obligation to make any determination as to the veracity or applicability of any Information provided to it, or whether any
such Information is required to be maintained on a website or other public medium.

 

    	32

    	 

    

 

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

 

	 	AMERICAN HONDA RECEIVABLES LLC,
	 	as Depositor
	 	 
	 	By:	/s/ Paul C. Honda
	 	 	Name: Paul C. Honda
	 	 	Title: Treasurer
	 	 
	 	
        DEUTSCHE BANK TRUST COMPANY

        DELAWARE,

	 	as Owner Trustee
	 	 
	 	By:	/s/ Susan T. Rodriguez
	 	 	Name: Susan T. Rodriguez
	 	 	Title: Assistant Vice President 
	 	 	 
	 	By:	/s/ Donna Mitchell
	 	 	Name: Donna Mitchell
	 	 	Title: Vice President

 

ACKNOWLEDGED AND AGREED:

 

	
        DEUTSCHE BANK TRUST COMPANY

        AMERICAS,
	 
	
        as Certificate Registrar, Paying Agent and

        Authenticating Agent
	 
	 	 
	By:	/s/ Mark DiGiacomo 	 
	 	Name: Mark DiGiacomo	 
	 	Title: Assistant Vice President	 
	 	 	 
	By:	/s/ Jennifer Freda	 
	 	Name: Jennifer Freda	 
	 	Title: Associate	 

 

    	33

    	 

    

 

EXHIBIT A

 

FORM OF TRUST CERTIFICATE

 

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM. IN ADDITION, THE TRANSFER
OF THIS CERTIFICATE IS SUBJECT TO CERTAIN RESTRICTIONS AND CONDITIONS SET FORTH IN SECTION 3.04 OF THE TRUST AGREEMENT UNDER WHICH
THIS CERTIFICATE ISSUED (A COPY OF WHICH TRUST AGREEMENT IS AVAILABLE FROM THE OWNER TRUSTEE UPON REQUEST), INCLUDING RECEIPT BY
THE OWNER TRUSTEE OF AN INVESTMENT LETTER IN WHICH THE TRANSFEREE MAKES CERTAIN REPRESENTATIONS.

 

NUMBER: R-1        Initial
Certificate Balance: $43,464,363.62

 

HONDA AUTO RECEIVABLES 2012-1 OWNER TRUST

 

0.00% ASSET BACKED CERTIFICATE

 

evidencing a fractional undivided interest in the Issuer, as defined
below, the property of which includes a pool of retail installment sale or conditional sale contracts secured by new and used Honda
and Acura motor vehicles (including automobiles and light-duty trucks).

 

(This Trust Certificate does not represent an
interest in or obligation of American Honda Receivables LLC, American Honda Finance Corporation or any of their respective affiliates.)

 

THIS CERTIFIES THAT American Honda Receivables
LLC is the registered owner of a 100 percent nonassessable, fully-paid, undivided interest in the Honda Auto Receivables
2012-1 Owner Trust (the “Issuer”), formed by American Honda Receivables LLC, a Delaware limited liability company (the
“Depositor”).

 

The Issuer was created pursuant to a Trust Agreement
dated as of January 20, 2012, as amended and restated by an Amended and Restated Trust Agreement dated February 23, 2012 (as amended
or supplemented from time to time, the “Trust Agreement”), among the Depositor and Deutsche Bank Trust Company Delaware,
as owner trustee (the “Owner Trustee”) and Deutsche Bank Trust Company Americas, as certificate registrar, paying agent
and authenticating agent, a summary of certain of the pertinent provisions of which is set forth below. Capitalized terms used
herein that are not otherwise defined shall have the meanings ascribed thereto in the Trust Agreement.

 

    	A-1

    	 

    

 

This Trust Certificate is one of the duly
authorized certificates designated as “Asset Backed Certificates” (the “Trust Certificates”). Issued
under an Indenture dated February 23, 2012 (the “Indenture”), between the Issuer and The Bank of New York Mellon,
as indenture trustee, are four classes of Notes designated as “Class A-1 0.41309% Asset Backed Notes,”
“Class A-2 0.57% Asset Backed Notes”, “Class A-3 0.77% Asset Backed Notes” and “Class A-4 0.97%
Asset Backed Notes” (collectively, the “Notes”). This Trust Certificate is issued under and is subject to
terms, provisions and conditions of the Trust Agreement, to which Trust Agreement the Holder of this Trust Certificate, by
virtue of its acceptance thereof, assents and by which such Holder is bound. The property of the Issuer includes, among other
things, a pool of retail installment sale or conditional sale contracts for new and used Honda and Acura motor vehicles
(including automobiles and light-duty trucks) (collectively, the “Receivables”), all monies received on or in
respect of the Receivables on or after February 1, 2012, security interests in the vehicles financed thereby, certain bank
accounts and the proceeds thereof, proceeds from claims on certain insurance policies and certain other rights under the
Trust Agreement and the Sale and Servicing Agreement and all proceeds of the foregoing.

 

It is the intent of the Depositor, the Servicer
and the Certificateholder that, solely for purposes of federal income, state and local income tax and any other income taxes, the
Issuer will be treated as a disregarded entity not separate from the sole Certificateholder. The purchaser hereof, by acceptance
of the Trust Certificates, agrees to treat, and to take no action inconsistent with the above treatment for so long as it is the
sole Owner.

 

Solely in the event the Trust Certificates are
held by more than a single Owner, it is the intent of the Depositor, the Servicer and the Certificateholders that, solely for purposes
of federal income, state and local income and single business tax and any other income taxes, the Issuer will be treated as a partnership
and the Certificateholders will be treated as partners in the partnership. The purchaser hereof and the other Certificateholders,
by acceptance of a Trust Certificate, agree to treat, and to take no action inconsistent with the treatment of, the Trust Certificates
for such tax purposes as partnership interests in the Issuer.

 

Each Certificateholder, by its acceptance of
a Trust Certificate, covenants and agrees that such Certificateholder will not at any time institute against the Depositor, or
join in any institution against the Depositor of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating
to the Trust Certificates, the Notes, the Trust Agreement or any other Basic Document.

 

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

 

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

 

    	A-2

    	 

    

 

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

 

THIS TRUST CERTIFICATE SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

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

 

	 	HONDA AUTO RECEIVABLES 2012-1 OWNER
	 	TRUST
	 	  	 
	 	By:	DEUTSCHE BANK TRUST COMPANY
	 	 	DELAWARE,
	 	 	not in its individual capacity but solely as
	 	 	Owner Trustee on behalf of the Trust
	 	 	 
	 	By:	 
	 	 	Authorized Signatory

 

OWNER TRUSTEE’S
OR AUTHENTICATING AGENT’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Trust Certificates referred to in the within-mentioned
Trust Agreement.

 

	
        DEUTSCHE BANK TRUST COMPANY

        AMERICAS,

        not in its individual capacity but solely as

        Authenticating Agent on behalf of the Trust

        

        
	 	
        DEUTSCHE BANK TRUST COMPANY

        DELAWARE,

        not in its individual capacity but solely as

        Owner Trustee on behalf of the

        Trust

	 	 	 
	 	 	OR	 	 
	 	 	 	 	 
	By:	 	 	By:	 
	 	Authenticating Agent	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	 	Authorized Signatory	 	 	 

 

    	A-3

    	 

    

 

[REVERSE OF TRUST
CERTIFICATE]

 

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

 

The Trust Agreement permits, with certain exceptions
therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor and the rights of the
Certificateholders under the Trust Agreement at any time by the parties thereto with the consent of the Holders of the Trust Certificates
and the Notes, each voting as a class, evidencing not less than a majority of the Percentage Interests evidenced by the outstanding
Trust Certificates, or a majority of the outstanding principal balance of the Notes of each such class. Any such consent by the
Holder of this Trust Certificate shall be conclusive and binding on such Holder and on all future Holders of this Trust Certificate
and of any Trust Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof, whether or not notation
of such consent is made upon this Trust Certificate. The Trust Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Trust Certificates.

 

As provided in the Trust Agreement and subject
to certain limitations therein set forth, the transfer of this Trust Certificate is registrable in the Certificate Register upon
surrender of this Trust Certificate for registration of transfer at the offices or agencies of the Certificate Registrar maintained
by the Owner Trustee, accompanied by a written instrument of transfer in form satisfactory to the Owner Trustee and the Certificate
Registrar duly executed by the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more
new Trust Certificates evidencing the same original certificate balance in the Issuer will be issued to the designated transferee.

 

Except as provided in the Trust Agreement, the
Trust Certificates are issuable only as registered Trust Certificates. As provided in the Trust Agreement and subject to certain
limitations therein set forth, Trust Certificates are exchangeable for new Trust Certificates evidencing the same aggregate original
certificate balance, as requested by the Holder surrendering the same. No service charge will be made for any such registration
of transfer or exchange, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any
tax or governmental charge payable in connection therewith.

 

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

 

    	A-4

    	 

    

 

The obligations and responsibilities created
by the Trust Agreement and the Issuer created thereby shall terminate upon the payment to Certificateholders of all amounts required
to be paid to them pursuant to the Trust Agreement and the Sale and Servicing Agreement and the disposition of all property held
as part of the Owner Trust Estate. The Servicer of the Receivables may at its option purchase the Owner Trust Estate at a price
specified in the Sale and Servicing Agreement, and such purchase of the Receivables and other property of the Issuer will effect
early retirement of the Trust Certificates; provided, however, such right of purchase is exercisable only as of the last day of
any Collection Period as of which the Pool Balance is less than or equal to 10% of the Original Pool Balance.

 

The Trust Certificates may not be acquired or
held by a Benefit Plan Investor or a person who is not a United States Person within the meaning of Section 7701(a)(30) of the
Code. By accepting and holding this Trust Certificate, the Holder hereof shall be required to have represented and warranted that
it is not a Benefit Plan Investor.

 

    	A-5

    	 

    

 

ASSIGNMENT

 

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

 

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE

 

	 
	(Please print or type name and address, including postal zip code, of assignee)

 

the within Trust Certificate, and all rights thereunder, any hereby
irrevocably constitutes and appoints __________________, attorney, to transfer said Trust Certificate on the books of the Certificate
Registrar, with full power of substitution in the premises.

 

	 	 	·
	 	Signature Guaranteed:	 

 

	 	 	 

 

 

NOTICE: The signature to this assignment must correspond with the
name of the registered owner as it appears on the face of the within Trust Certificate in every particular, without alteration,
enlargement or any change whatsoever. Such signature must be guaranteed by an “eligible guarantor institution” meeting
the requirements of the Certificate Registrar, which requirements include membership or participation in STAMP or such other “signature
guarantee program” as may be determined by the Certificate Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

 

    	A-6

    	 

    

 

EXHIBIT B

 

FORM OF TRANSFEROR CERTIFICATE

 

                                                                      _______________,
____

[Seller]

 

_____________________

_____________________

_____________________

 

DEUTSCHE BANK TRUST COMPANY DELAWARE

1011 Centre Road, Suite 200

Wilmington, Delaware 19805

Attn: Trust & Securities Services –
Honda 2012-1

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

c/o Deutsche Bank National Trust Company

100 Plaza One, 6th Floor - MS JCY03-0699

Jersey City, NJ 07311-3901

Attn: Structured Finance Services – ABS

 

		Re:	Honda Auto Receivables 2012-1 Owner Trust

Asset Backed Certificates                       

 

Dear Sirs:

 

In connection with our disposition of the above-referenced
Asset Backed Certificates (the “Certificates”) we certify that (i) we understand that the Certificates have not been
registered under the Securities Act of 1933, as amended (the “Act”), and are being transferred by us in a transaction
that is exempt from the registration requirements of the Act and (ii) we have not offered or sold any Certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise approached or negotiated with any person with respect thereto, in
a manner that would be deemed, or taken any other action which would result in, a violation of Section 5 of the Act.

 

	 	Very truly yours,
	 	 
	 	[NAME OF TRANSFEROR]
	 	 	 
	 	By	 
	 	 	Authorized Officer

 

    	B-1

    	 

    

 

EXHIBIT C

 

FORM OF INVESTMENT LETTER

 

                                                                      _______________,
____

Seller

 

_____________________

_____________________

_____________________

 

DEUTSCHE BANK TRUST COMPANY DELAWARE

1011 Centre Road, Suite 200

Wilmington, Delaware 19805

Attn: Trust & Securities Services –
Honda 2012-1

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

c/o Deutsche Bank National Trust Company

100 Plaza One, 6th Floor - MS JCY03-0699

Jersey City, NJ 07311-3901

Attn: Structured Finance Services – ABS

 

		Re:	Honda Auto Receivables 2012-1 Owner Trust

Asset Backed Certificates                       

 

Dear Sirs:

 

In connection with our acquisition of the above-referenced
Asset Backed Certificates (the “Certificates”) we certify that (a) we understand that the Certificates are not being
registered under the Securities Act of 1933, as amended (the “Act”), or any state securities laws and are being transferred
to us in a transaction that is exempt from the registration requirements of the Act and any such laws, (b) we are an “accredited
investor,” as defined in Regulation D under the Act, and have such knowledge and experience in financial and business matters
that we are capable of evaluating the merits and risks of investments in the Certificates, (c) we have had the opportunity to ask
questions of and receive answers from the Seller concerning the purchase of the Certificates and all matters relating thereto or
any additional information deemed necessary to our decision to purchase the Certificates, (d) we are acquiring the Certificates
for investment for our own account and not with a view to any distribution of such Certificates (but without prejudice to our right
at all times to sell or otherwise dispose of the Certificates in accordance with clause (f) below), (e) we have not offered or
sold any Certificates to, or solicited offers to buy any Certificates from, any person, or otherwise approached or negotiated with
any person with respect thereto, or taken any other action that would result in a violation of Section 5 of the Act or any state
securities laws, (f) we are not a Benefit Plan Investor and (g) we will not sell, or otherwise dispose of any Certificates unless
(i) such sale, transfer or other disposition is made pursuant to an effective registration statement under the Act and in compliance
with any state securities laws or is exempt from such registration requirements and, if requested, we will at our expense provide
an Opinion of Counsel satisfactory to the addresses of this certificate that such sale, transfer or other disposition may be made
pursuant to an exemption from the Act, (ii) the purchaser or transferee of such Certificate has executed and delivered to you a
certificate to substantially the same effect as this certificate and (iii) the purchaser or transferee has otherwise complied with
any conditions for transfer set forth in the Amended and Restated Trust Agreement dated February 23, 2012, among American Honda
Receivables LLC, as depositor, and Deutsche Bank Trust Company Delaware, as Owner Trustee.

 

	 	Very truly yours,
	 	 
	 	[NAME OF TRANSFEREE]
	 	 	 
	 	By	 
	 	 	Authorized Officer

 

    	C-1

    	 

    

 

EXHIBIT D

 

FORM OF RULE 144A LETTER

 

                                                              _______________,
20__

Seller

 

_____________________

_____________________

_____________________

 

DEUTSCHE BANK TRUST COMPANY DELAWARE

1011 Centre Road, Suite 200

Wilmington, Delaware 19805

Attn: Trust & Securities Services –
Honda 2012-1

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

c/o Deutsche Bank National Trust Company

100 Plaza One, 6th Floor - MS JCY03-0699

Jersey City, NJ 07311-3901

Attn: Structured Finance Services – ABS

 

		Re:	Honda Auto Receivables 2012-1 Owner Trust

Asset Backed Certificates                       

 

Dear Sirs:

 

In connection with our acquisition of the above-referenced
Asset Backed Certificates (the “Certificates”) we certify that (a) we understand that the Certificates are not being
registered under the Securities Act of 1933, as amended (the “Act”), or any state securities laws and are being transferred
to us in a transaction that is exempt from the registration requirements of the Act and any such laws, (b) we have such knowledge
and experience in financial and business matters that we are capable of evaluating the merits and risks of investments in the Certificates,
(c) we have had the opportunity to ask questions of and receive answers from the Seller concerning the purchase of the Certificates
and all matters relating thereto or any additional information deemed necessary to our decision to purchase the Certificates, (d)
we have not, nor has anyone acting on our behalf, offered, transferred, pledged, sold or otherwise disposed of the Certificates
or an interest in the Certificates, or solicited any offer to buy, transfer, pledge or otherwise dispose of the Certificates or
any interest in the Certificates from any person in any manner or made any general solicitation by means of general advertising
or in any other manner, taken any other action that would constitute a distribution of the Certificates under the Act or that would
render the disposition of the Certificates a violation of Section 5 of the Act or any state securities laws or require registration
pursuant thereto, and we will not act, or authorize any person to act, in such manner with respect to the Certificates, (e) we
are not a Benefit Plan Investor and (f) we are a “qualified institutional buyer” as that term is defined in Rule 144A
under the Act. We are aware that the sale to us is being made in reliance on Rule 144A. We are acquiring the certificates for our
own account or for resale pursuant to Rule 144A and understand that such certificates may be resold, pledged or transferred only
(i) to a person reasonably believed to be a qualified institutional buyer that purchases for its own account or for the account
of a qualified institutional buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule
144A or (ii) pursuant to another exemption from registration under the Act.

 

	 	Very truly yours,
	 	 
	 	[NAME OF TRANSFEREE]
	 	 	 
	 	By	 
	 	 	Authorized Officer

 

 

    	D-1

    	 

    

 

EXHIBIT E

Form of Monthly Rule 15Ga-1 Asset repurchase
Activity Report

Reporting Period: ____________

Name of Issuing Entity: HAROT 2012-1

Trustee: Deutsche Bank Trust Company Delaware

 ̈
Check here if the Trustee has no activity to report during Reporting Period indicated above

 

	Name of

                                                    Issuing

        Entity
	 	Check if

        Registered
	 	Name of

        Originator
	 	Total Assets in 

    ABS by Originator(1)	 	Assets That Were

        Subject of

        Demand
	 	Assets That Were

        Repurchased or

        Replaced
	 	Assets Pending

        Repurchase or

        Replacement 

        (within cure period)
	 	Demand in Dispute	 	Demand Withdrawn	 	Demand Rejected
	 	 	 	 	 	 	(#)	 	($)	 	(% of	 	(#)	 	($)	 	(% of	 	(#)	 	($)	 	(% of	 	(#)	 	($)	 	(% of	 	(#)	 	($)	 	(% of	 	(#)	 	($)	 	(% of	 	(#)	 	($)	 	(% of
	 	 	 	 	 	 	 	 	 	 	principal	 	 	 	 	 	principal	 	 	 	 	 	principal	 	 	 	 	 	principal	 	 	 	 	 	principal	 	 	 	 	 	principal	 	 	 	 	 	principal
	 	 	 	 	 	 	 	 	 	 	balance)	 	 	 	 	 	balance)	 	 	 	 	 	balance)	 	 	 	 	 	balance)	 	 	 	 	 	balance)	 	 	 	 	 	balance)	 	 	 	 	 	balance)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(a)	 	(b)	 	(c)	 	(d)	 	(e)	 	(f)	 	(g)	 	(h)	 	(i)	 	(j)	 	(k)	 	(l)	 	(m)	 	(n)	 	(o)	 	(p)	 	(q)	 	(r)	 	(s)	 	(t)	 	(u)	 	(v)	 	(w)	 	(x)
	Asset Class X	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuing Entity A CIK #	 	X	 	Originator 1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Originator 2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total	 	 	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 
	Asset Class Y	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuing Entity B	 	 	 	Originator 3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total	 	 	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total	 	 	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 	 	#	 	$	 	 

 

 

(1) Owner Trustee to provide if such information is available.

 

    	E-1Exhibit 10.1

 

 

 

BLACK DIAMOND, INC.

(a Delaware corporation)

7,750,000 Shares of Common Stock

UNDERWRITING AGREEMENT

 

 

 

Dated: February 16, 2012

 

 

    	 

    	 	

    

BLACK DIAMOND, INC.

(a
Delaware corporation)

7,750,000 Shares of Common Stock, par
value $0.0001 per share

 

UNDERWRITING AGREEMENT

February 16, 2012

Piper Jaffray & Co.

as Representative of the several Underwriters

345 California Street, Suite 2400

San Francisco, CA 94104

Ladies and Gentlemen:

Black Diamond, Inc.,
a Delaware corporation (the “Company”), confirms its agreement with Piper Jaffray & Co. (“PJC”) and
each of the other Underwriters named in Schedule A hereto (collectively, the “Underwriters,” which term shall also
include any underwriter substituted as hereinafter provided in Section 10 hereof), for whom PJC is acting as representative
(in such capacity, the “Representative”), with respect to (i) the sale by the Company and the purchase by the Underwriters,
acting severally and not jointly, of the respective numbers of shares of Common Stock, par value $0.0001 per share, of the Company
(“Common Stock”) set forth in Schedule A hereto and (ii) the grant by the Company to the Underwriters, acting
severally and not jointly, of the option described in Section 2(b) hereof to purchase all or any part of 1,162,500 additional
shares of Common Stock to cover overallotments, if any. The aforesaid 7,750,000 shares of Common Stock (the “Initial Securities”)
to be purchased by the Underwriters and all or any part of the 1,162,500 shares of Common Stock subject to the option described
in Section 2(b) hereof (the “Option Securities”) are herein called, collectively, the “Securities.”

The Company understands
that the Underwriters propose to make a public offering of the Securities as soon as the Representative deems advisable after this
Agreement has been executed and delivered.

At the request of
the Company, the Company and the Underwriters agree that 1,333,333 shares of the Initial Securities to be purchased by the Underwriters
(the “Reserved Securities”) shall be reserved for sale by the Underwriters to certain persons designated by the Company
in writing (the “Invitees”) and in allocations as set forth by the Company in writing, as part of the distribution
of the Securities by the Underwriters, subject to the terms of this Agreement, the applicable rules, regulations and interpretations
of the Financial Industry Regulatory Authority, Inc. (“FINRA”) and all other applicable laws, rules and regulations.
The Company solely determined, without any direct or indirect participation by the Underwriters, the Invitees who will purchase
Reserved Securities (including the amount to be purchased by such persons) sold by the Underwriters. The Invitees have confirmed
to the Underwriters the amounts to be purchased by the Invitees at the public offering price. The Reserved Securities shall not
be subject to any underwriting discount or commission. The Initial Securities that are not Reserved Securities shall be “Non-Reserved
Securities.”

    	 

    	 

    

The Company has
prepared and filed with the Securities and Exchange Commission (the “Commission”) a shelf registration statement on
Form S-3 (File No. 333-171164) covering the public offering and sale of certain securities, including the Securities, under the
Securities Act of 1933, as amended (the “1933 Act”), and the rules and regulations promulgated thereunder (the “1933
Act Regulations”), which shelf registration statement has been declared effective by the Commission. Such registration statement,
as of any time, means such registration statement as amended by any post-effective amendments thereto to such time, including the
exhibits and any schedules thereto at such time, the documents incorporated or deemed to be incorporated by reference therein at
such time pursuant to Item 12 of Form S-3 under the 1933 Act and the documents otherwise deemed to be a part thereof as of such
time pursuant to Rule 430B under the 1933 Act Regulations (“Rule 430B”), and is referred to herein as the “Registration
Statement;” provided, however, that the “Registration Statement” without reference to a time means such registration
statement as amended by any post-effective amendments thereto as of the time of the first contract of sale for the Securities,
which time shall be considered the “new effective date” of such registration statement with respect to the Securities
within the meaning of paragraph (f)(2) of Rule 430B, including the exhibits and schedules thereto as of such time, the documents
incorporated or deemed incorporated by reference therein at such time pursuant to Item 12 of Form S-3 under the 1933 Act and the
documents otherwise deemed to be a part thereof as of such time pursuant to the Rule 430B. Each preliminary prospectus used in
connection with the offering of the Securities, including the documents incorporated or deemed to be incorporated by reference
therein pursuant to Item 12 of Form S-3 under the 1933 Act, are collectively referred to herein as a “preliminary prospectus.”
Promptly after execution and delivery of this Agreement, the Company will prepare and file a final prospectus relating to the Securities
in accordance with the provisions of Rule 424(b) under the 1933 Act Regulations (“Rule 424(b)”). The final prospectus,
in the form first furnished or made available to the Underwriters for use in connection with the offering of the Securities, including
the documents incorporated or deemed to be incorporated by reference therein pursuant to Item 12 of Form S-3 under the 1933 Act,
are collectively referred to herein as the “Prospectus.” For purposes of this Agreement, all references to the Registration
Statement, any preliminary prospectus, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed to
include the copy filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval system (or any successor
system)(“EDGAR”).  

As used in this
Agreement:

“Applicable
Time” means 8:00 A.M., New York City time, on February 16, 2012 or such other time as agreed by the Company and the Representative.

“General
Disclosure Package” means any Issuer General Use Free Writing Prospectuses issued at or prior to the Applicable Time, the
most recent preliminary prospectus (including any documents incorporated therein by reference) that is distributed to investors
prior to the Applicable Time and the information included on Schedule B-1 hereto, all considered together.

“Issuer
Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433 of the 1933 Act Regulations
(“Rule 433”), including without limitation any “free writing prospectus” (as defined in Rule 405 of the
1933 Act Regulations (“Rule 405”)) relating to the Securities that is (i) required to be filed with the Commission
by the Company, (ii) a “road show that is a written communication” within the meaning of Rule 433(d)(8)(i), whether
or not required to be filed with the Commission, or (iii) exempt from filing with the Commission pursuant to Rule 433(d)(5)(i)
because it contains a description of the Securities or of the offering that does not reflect the final terms, in each case in the
form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company’s
records pursuant to Rule 433(g).

    	2

    	 

    

“Issuer
General Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is intended for general distribution to
prospective investors (other than a “bona fide electronic road show,” as defined in Rule 433), as evidenced
by its being specified in Schedule B-2 hereto.

“Issuer
Limited Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is not an Issuer General Use Free Writing
Prospectus.

All references in
this Agreement to financial statements and schedules and other information which is “contained,” “included”
or “stated” (or other references of like import) in the Registration Statement, any preliminary prospectus or the Prospectus
shall be deemed to include all such financial statements and schedules and other information incorporated or deemed incorporated
by reference in the Registration Statement, any preliminary prospectus or the Prospectus, as the case may be, prior to the execution
and delivery of this Agreement; and all references in this Agreement to amendments or supplements to the Registration Statement,
any preliminary prospectus or the Prospectus shall be deemed to include the filing of any document under the Securities Exchange
Act of 1934, as amended, and the rules and regulations promulgated thereunder (collectively, the “1934 Act”), incorporated
or deemed to be incorporated by reference in the Registration Statement, such preliminary prospectus or the Prospectus, as the
case may be, at or after the execution and delivery of this Agreement.

SECTION 1.Representations
and Warranties.

(a)Representations
and Warranties by the Company. The Company represents and warrants to each Underwriter as of the date hereof, and shall represent
and warrant as of the Applicable Time, the Closing Time (as defined below) and any Date of Delivery (as defined below), in each
case as applicable, and agrees with each Underwriter, as follows:

(i)Registration
Statement and Prospectuses. The Company meets the requirements for use of Form S-3 under the 1933 Act. The Securities
have been and remain eligible for registration by the Company on such shelf registration statement. The Registration Statement
has become effective under the 1933 Act. No stop order suspending the effectiveness of the Registration Statement has been issued
under the 1933 Act, no order preventing or suspending the use of any preliminary prospectus or the Prospectus has been issued and
no proceedings for any of those purposes have been instituted or are pending or, to the Company’s knowledge, threatened.
The Company has complied with each request (if any) from the Commission for additional information.

Each of the
Registration Statement and any post-effective amendment thereto, at the time of its effectiveness and at each deemed effective
date with respect to the Underwriters pursuant to Rule 430B(f)(2) under the 1933 Act Regulations, complied in all material respects
with the requirements of the 1933 Act and the 1933 Act Regulations. Each preliminary prospectus, the Prospectus and any amendment
or supplement thereto, at the time each was filed with the Commission, complied in all material respects with the requirements
of the 1933 Act Regulations and each preliminary prospectus and the Prospectus delivered to the Underwriters for use in connection
with this offering was identical to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR,
except to the extent permitted by Regulation S-T.

The documents
incorporated or deemed to be incorporated by reference in the Registration Statement and the Prospectus, when they became effective
or at the time they were or hereafter are filed with the Commission, complied and will comply in all material respects with the
requirements of the 1934 Act and the rules and regulations of the Commission under the 1934 Act (the “1934 Act Regulations”).

    	3

    	 

    

(ii)Accurate
Disclosure. Neither the Registration Statement nor any amendment thereto, at its effective time, at the Closing Time or at
any Date of Delivery, contained, contains or will contain an untrue statement of a material fact or omitted, omits or will omit
to state a material fact required to be stated therein or necessary to make the statements therein not misleading. As of the Applicable
Time, neither (A) the General Disclosure Package nor (B) any individual Issuer Limited Use Free Writing Prospectus, when considered
together with the General Disclosure Package, included, includes or will include an untrue statement of a material fact or omitted,
omits or will omit 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. Neither the Prospectus nor any amendment or supplement thereto (including any prospectus
wrapper), as of its issue date, at the time of any filing with the Commission pursuant to Rule 424(b), at the Closing Date or at
any Date of Delivery, included, includes or will include an untrue statement of a material fact or omitted, omits or will omit
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 documents incorporated or deemed to be incorporated by reference in the Registration Statement,
the General Disclosure Package and the Prospectus, at the time the Registration Statement became effective or when such documents
incorporated by reference were filed with the Commission, as the case may be, when read together with the other information in
the Registration Statement, the General Disclosure Package or the Prospectus, as the case may be, did not and will not include
an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading.

The representations
and warranties in this subsection shall not apply to statements in or omissions from the Registration Statement (or any amendment
thereto), the General Disclosure Package or the Prospectus (or any amendment or supplement thereto) made in reliance upon and in
conformity with written information furnished to the Company by any Underwriter through PJC expressly for use therein. For purposes
of this Agreement, the only information so furnished shall be the information in the first paragraph under the heading “Underwriting–Commissions
and Discounts,” the information in the second, third and fourth paragraphs under the heading “Underwriting–Price
Stabilization and Short Positions” and the information under the heading “Underwriting–Electronic Distribution”
in each case contained in the Prospectus (collectively, the “Underwriter Information”).

(iii)Issuer
Free Writing Prospectuses. No Issuer Free Writing Prospectus conflicts or will conflict with the information contained in the
Registration Statement or the Prospectus, including any document incorporated by reference therein, and any preliminary or other
prospectus deemed to be a part thereof that has not been superseded or modified. No offer that is a written communication relating
to the Securities was made prior to the initial filing of the Registration Statement by the Company or any person acting on its
behalf.

(iv)Company
Not Ineligible Issuer. At the time of filing the Registration Statement and any post-effective amendment thereto, at the earliest
time thereafter that the Company or another offering participant made or makes a bona fide offer (within the meaning of
Rule 164(h)(2) of the 1933 Act Regulations) of the Securities and at the date hereof, the Company was not and is not an “ineligible
issuer,” as defined in Rule 405, without taking account of any determination by the Commission pursuant to Rule 405 that
it is not necessary that the Company be considered an ineligible issuer.

(v)Independent
Accountants. KPMG LLP, which expressed its opinion with respect to the consolidated financial statements of the Company as
of December 31, 2010 and 2009, and for the years ended December 31, 2010, 2009 and 2008 (the term “consolidated
financial statements” as used in this Agreement includes the related notes and schedules thereto) included in the Registration
Statement, the General Disclosure Package and the Prospectus is, to the knowledge of the Company, an independent registered public
accounting firm as required by the 1933 Act, the 1933 Act Regulations, the 1934 Act Regulations and the Public Company Accounting
Oversight Board. KPMG LLP, which expressed its opinion with respect to the consolidated financial statements of Black Diamond Equipment,
Ltd. for the period from July 1, 2009 to May 28, 2010 included in the Registration Statement, the General Disclosure
Package and the Prospectus was, to the knowledge of the Company, an independent public accountant with respect to Black Diamond
Equipment, Ltd. as of March 15, 2011 and during the period covered by such financial statements as required by the 1933 Act,
the 1933 Act Regulations, the 1934 Act Regulations and the Public Company Accounting Oversight Board. Tanner LLC (formerly Tanner
LC), which expressed its opinion with respect to the consolidated financial statements of Black Diamond Equipment, Ltd. as of June 30,
2009 and for the years ended June 30, 2009 and 2008 included in the Registration Statement, the General Disclosure Package
and the Prospectus was, to the knowledge of the Company, an independent public accountant with respect to Black Diamond Equipment,
Ltd. as of September 15, 2009 and during the period covered by such financial statements as required by the 1933 Act, the
1933 Act Regulations, the 1934 Act Regulations and the Public Company Accounting Oversight Board.

    	4

    	 

    

(vi)Financial
Statements; Non-GAAP Financial Measures. The financial statements of the Company included or incorporated by reference in the
Registration Statement, the General Disclosure Package and the Prospectus, together with the related schedules and notes, present
fairly in all material respects the financial position of the Company and its consolidated subsidiaries at the dates indicated
and the statement of operations, stockholders’ equity and cash flows of the Company and its consolidated subsidiaries for
the periods specified; said financial statements have been prepared in conformity with U.S. generally accepted accounting principles
(“GAAP”) applied on a consistent basis throughout the periods involved (except as noted therein). The supporting schedules,
if any, present fairly in accordance with GAAP the information required to be stated therein. The financial statements of Black
Diamond Equipment, Ltd. included or incorporated by reference in the Registration Statement, the General Disclosure Package and
the Prospectus, together with the related schedules and notes, present fairly in all material respects the financial position of
Black Diamond Equipment, Ltd. and its consolidated subsidiaries at the dates indicated and the statement of operations, stockholders’
equity and cash flows of Black Diamond Equipment, Ltd. and its consolidated subsidiaries for the periods specified; said financial
statements have been prepared in conformity with GAAP applied on a consistent basis throughout the periods involved (except as
noted therein). The supporting schedules, if any, present fairly in accordance with GAAP the information required to be stated
therein. The selected financial data and the summary financial information included in the Registration Statement, the General
Disclosure Package and the Prospectus present fairly in all material respects the information shown therein and have been compiled
on a basis consistent with that of the audited financial statements included therein (except as noted therein). Except as included
therein, no historical or pro forma financial statements or supporting schedules are required to be included or incorporated by
reference in the Registration Statement, the General Disclosure Package or the Prospectus under the 1933 Act or the 1933 Act Regulations.
All disclosures contained in the Registration Statement, the General Disclosure Package or the Prospectus, or incorporated by reference
therein, regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission)
comply with Regulation G of the 1934 Act and Item 10(e) of Regulation S-K of the 1933 Act, to the extent applicable.

(vii)No
Material Adverse Change in Business. Except as otherwise stated therein, since the respective dates as of which information
is given in the Registration Statement, the General Disclosure Package or the Prospectus, (A) there has been no material adverse
change in the condition, financial or otherwise, or in the earnings, business affairs or business prospects of the Company and
its subsidiaries considered as one enterprise, whether or not arising in the ordinary course of business (a “Material Adverse
Effect”), (B) there have been no transactions entered into by the Company or any of its subsidiaries, other than those
in the ordinary course of business, which are material with respect to the Company and its subsidiaries considered as one enterprise,
and (C) there has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its capital
stock.

    	5

    	 

    

(viii)Good
Standing of the Company. The Company has been duly incorporated and is validly existing as a corporation in good standing under
the laws of the State of Delaware and has corporate power and authority to own, lease and operate its properties and to conduct
its business as described in the Registration Statement, the General Disclosure Package and the Prospectus and to enter into and
perform its obligations under this Agreement; and the Company is duly qualified as a foreign corporation to transact business and
is in good standing in each other jurisdiction in which such qualification is required, whether by reason of the ownership or leasing
of property or the conduct of business, except where the failure so to qualify or to be in good standing would not result in a
Material Adverse Effect.

(ix)Good
Standing of Subsidiaries. Each “significant subsidiary” of the Company (as such term is defined in Rule 1-02 of
Regulation S-X and identified on Schedule D hereto) (each, a “Subsidiary” and, collectively, the “Subsidiaries”)
has been duly incorporated or organized and is validly existing in good standing under the laws of the jurisdiction of its incorporation
or organization, has corporate or similar power and authority to own, lease and operate its properties and to conduct its business
as described in the Registration Statement, the General Disclosure Package and the Prospectus and is duly qualified to transact
business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of the ownership
or leasing of property or the conduct of business, except where the failure to so qualify or to be in good standing would not result
in a Material Adverse Effect. Except as otherwise disclosed in the Registration Statement, the General Disclosure Package and the
Prospectus, all of the issued and outstanding capital stock of each Subsidiary has been duly authorized and validly issued, is
fully paid and non-assessable and is owned by the Company, directly or through subsidiaries, free and clear of any security interest,
mortgage, pledge, lien, encumbrance, claim or equity. None of the outstanding shares of capital stock of any Subsidiary were issued
in violation of the preemptive or similar rights of any securityholder of such Subsidiary. The only subsidiaries of the Company
are (A) the Subsidiaries listed on Schedule D hereto and (B) certain other subsidiaries which, considered in the aggregate as a
single subsidiary, do not constitute a “significant subsidiary” as defined in Rule 1-02 of Regulation S-X.

(x)Capitalization.
The authorized, issued and outstanding shares of capital stock of the Company are as set forth in the Registration Statement, the
General Disclosure Package and the Prospectus in the column entitled “Actual” under the caption “Capitalization”
(except for subsequent issuances, if any, pursuant to this Agreement, pursuant to reservations, agreements or employee benefit
plans referred to in the Registration Statement, the General Disclosure Package and the Prospectus or pursuant to the exercise
of convertible securities or options referred to in the Registration Statement, the General Disclosure Package and the Prospectus).
The outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable.
None of the outstanding shares of capital stock of the Company were issued in violation of the preemptive or other similar rights
of any securityholder of the Company.

    	6

    	 

    

(xi)Absence
of Ratings. Neither the Company nor any of its Subsidiaries has any securities that are rated by any “nationally recognized
statistical rating organization” (as defined in Section 3(a)(62) of the 1934 Act).

(xii)Authorization
of Agreement. This Agreement has been duly authorized, executed and delivered by the Company.

(xiii)Authorization
and Description of Securities. The Securities to be purchased by the Underwriters from the Company have been duly authorized
for issuance and sale to the Underwriters pursuant to this Agreement and, when issued and delivered by the Company pursuant to
this Agreement against payment of the consideration set forth herein, will be validly issued and fully paid and non-assessable;
and the issuance of the Securities is not subject to the preemptive or other similar rights of any securityholder of the Company.
The Common Stock conforms to all statements relating thereto contained in the Registration Statement, the General Disclosure Package
and the Prospectus and such description conforms to the rights set forth in the instruments defining the same. No holder of Securities
will be subject to personal liability by reason of being such a holder.

(xiv)Registration
Rights. There are no persons with registration rights or other similar rights to have any securities registered for sale pursuant
to the Registration Statement or otherwise registered for sale or sold by the Company under the 1933 Act pursuant to this Agreement,
other than those rights that have been disclosed in the Registration Statement, the General Disclosure Package and the Prospectus,
including ongoing rights arising under the Registration Rights Agreement, dated as of May 28, 2010, among Clarus Corporation, and
each of the Investors named therein, the form of which was incorporated by reference as an exhibit in the Registration Statement,
and the Registration Rights Agreement, dated as of May 28, 2010, among Clarus Corporation, Kanders GMP Holdings, LLC and Schiller
Gregory Investment Company, LLC, the form of which was incorporated by reference as an exhibit in the Registration Statement (collectively,
the “Registration Rights Agreements”). The Company has registered all of the Registrable Securities (as such term is
defined in the respective Registration Rights Agreements) under the Registration Rights Agreements pursuant to a “shelf”
registration statement and has filed a prospectus supplement with the Commission relating to the Registrable Securities.

(xv)Absence
of Violations, Defaults and Conflicts. Neither the Company nor any of its subsidiaries is (A) in violation of its charter,
by-laws or similar organizational document, (B) in default in the performance or observance of any obligation, agreement, covenant
or condition contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other agreement
or instrument to which the Company or any of its Subsidiaries is a party or by which it or any of them may be bound or to which
any of the properties or assets of the Company or any Subsidiary is subject (collectively, “Agreements and Instruments”),
except for such defaults that would not, singly or in the aggregate, result in a Material Adverse Effect, or (C) in violation of
any law, statute, rule, regulation, judgment, order, writ or decree of any arbitrator, court, governmental body, regulatory body,
administrative agency or other authority, body or agency having jurisdiction over the Company or any of its subsidiaries or any
of their respective properties, assets or operations (each, a “Governmental Entity”), except for such violations that
would not, singly or in the aggregate, result in a Material Adverse Effect. The execution, delivery and performance of this Agreement
and the consummation of the transactions contemplated herein and in the Registration Statement, the General Disclosure Package
and the Prospectus (including the issuance and sale of the Securities and the use of the proceeds from the sale of the Securities
as described therein under the caption “Use of Proceeds”) and compliance by the Company with its obligations hereunder
have been duly authorized by all necessary corporate action and do not and will not, whether with or without the giving of notice
or passage of time or both, conflict with or constitute a breach of, or default or Repayment Event (as defined below) under, or
result in the creation or imposition of any lien, charge or encumbrance upon any properties or assets of the Company or any Subsidiary
pursuant to, the Agreements and Instruments (except for such conflicts, breaches, defaults or Repayment Events or liens, charges
or encumbrances that would not, singly or in the aggregate, result in a Material Adverse Effect), nor will such action result in
any violation of the provisions of the charter, by-laws or similar organizational document of the Company or any of its subsidiaries
or, except for such violations as would not, singly or in the aggregate, result in a Material Adverse Effect, any law, statute,
rule, regulation, judgment, order, writ or decree of any Governmental Entity. As used herein, a “Repayment Event” means
any event or condition which gives the holder of any note, debenture or other evidence of indebtedness (or any person acting on
such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness
by the Company or any of its Subsidiaries.

    	7

    	 

    

(xvi)Absence
of Labor Dispute. No labor dispute with the employees of the Company or any of its Subsidiaries exists or, to the knowledge
of the Company, is threatened, which would result in a Material Adverse Effect.

(xvii)Absence
of Proceedings. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there
is no action, suit, proceeding, inquiry or investigation before or brought by any Governmental Entity now pending or, to the knowledge
of the Company, threatened, against or affecting the Company or any of its Subsidiaries, which might reasonably be expected to
result in a Material Adverse Effect, or which might reasonably be expected to materially and adversely affect their respective
properties or assets or the consummation of the transactions contemplated in this Agreement or the performance by the Company of
its obligations hereunder; and the aggregate of all pending legal or governmental proceedings to which the Company or any such
Subsidiary is a party or of which any of their respective properties or assets is the subject which are not described in the Registration
Statement, the General Disclosure Package and the Prospectus, including ordinary routine litigation incidental to the business,
could not reasonably be expected to result in a Material Adverse Effect.

(xviii)Accuracy
of Exhibits. There are no contracts or documents which are required to be described in the Registration Statement, the General
Disclosure Package or the Prospectus or to be filed as exhibits to the Registration Statement which have not been so described
and filed as required.

(xix)Absence
of Further Requirements. No filing with, or authorization, approval, consent, license, order, registration, qualification or
decree of, any Governmental Entity is necessary or required for the performance by the Company of its obligations hereunder, in
connection with the offering, issuance or sale of the Securities hereunder or the consummation of the transactions contemplated
by this Agreement, except such as have been already obtained or as may be required under the 1933 Act, the 1933 Act Regulations,
the rules of the NASDAQ Stock Market LLC, state securities laws or the rules of Financial Industry Regulatory Authority, Inc. (“FINRA”).

(xx)Possession
of Licenses and Permits. The Company and its Subsidiaries possess such permits, licenses, approvals, consents and other authorizations
(collectively, “Governmental Licenses”) issued by the appropriate Governmental Entities necessary to conduct the business
now operated by them, except where the failure so to possess would not, singly or in the aggregate, result in a Material Adverse
Effect. The Company and its Subsidiaries are in compliance with the terms and conditions of all Governmental Licenses, except where
the failure so to comply would not, singly or in the aggregate, result in a Material Adverse Effect. All of the Governmental Licenses
are valid and in full force and effect, except when the invalidity of such Governmental Licenses or the failure of such Governmental
Licenses to be in full force and effect would not, singly or in the aggregate, result in a Material Adverse Effect. Neither the
Company nor any of its Subsidiaries has received any notice of, or has actual knowledge of, proceedings relating to the revocation
or modification of any Governmental Licenses which, singly or in the aggregate, if the subject of an unfavorable decision, ruling
or finding, would result in a Material Adverse Effect.

    	8

    	 

    

(xxi)Title
to Property. The Company and its Subsidiaries have good and marketable title to all real property owned by them and good title
to all other properties owned by them, in each case, free and clear of all mortgages, pledges, liens, security interests, claims,
restrictions or encumbrances of any kind except such as (A) are described in the Registration Statement, the General Disclosure
Package and the Prospectus or (B) do not, singly or in the aggregate, materially affect the value of such property and do not interfere
with the use made and proposed to be made of such property by the Company or any of its Subsidiaries; and all of the leases and
subleases under which the Company or any of its Subsidiaries holds properties described in the Registration Statement, the General
Disclosure Package or the Prospectus, are in full force and effect, except for such failures to be in full force and effect that
would not result in a Material Adverse Effect.

(xxii)Possession
of Intellectual Property. The Company and its Subsidiaries own or possess, or can acquire on reasonable terms, adequate patents,
patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary
or confidential information, systems or procedures), trademarks, service marks, trade names or other intellectual property (collectively,
“Intellectual Property”) necessary to carry on the business now operated by them, except for any failure to own, possess
or acquire Intellectual Property which, singly or in the aggregate, would not result in a Material Adverse Effect, and neither
the Company nor any of its Subsidiaries has received any notice or has actual knowledge of any infringement of or conflict with
asserted rights of others with respect to any Intellectual Property or of any facts or circumstances which would render any Intellectual
Property invalid or inadequate to protect the interest of the Company or any of its Subsidiaries therein, and which infringement
or conflict (if the subject of any unfavorable decision, ruling or finding) or invalidity or inadequacy, singly or in the aggregate,
would result in a Material Adverse Effect.

(xxiii)Environmental
Laws. Except as described in the Registration Statement, the General Disclosure Package and the Prospectus or would not, singly
or in the aggregate, result in a Material Adverse Effect, (A) neither the Company nor any of its Subsidiaries is in violation of
any federal, state, local or foreign statute, law, rule, regulation, ordinance, code, policy or rule of common law or any judicial
or administrative interpretation thereof, including any judicial or administrative order, consent, decree or judgment, relating
to pollution or protection of human health, the environment (including, without limitation, ambient air, surface water, groundwater,
land surface or subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or
threatened release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum
products, asbestos-containing materials or mold (collectively, “Hazardous Materials”) or to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials (collectively, “Environmental
Laws”), (B) the Company and its subsidiaries have all permits, authorizations and approvals required under any applicable
Environmental Laws and are each in compliance with their requirements, (C) there are no pending or, to the knowledge of the Company,
threatened administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance
or violation, investigation or proceedings relating to any Environmental Law against the Company or any of its subsidiaries and
(D) there are no events or circumstances that would reasonably be expected to form the basis of an order for clean-up or remediation,
or an action, suit or proceeding by any private party or Governmental Entity, against or affecting the Company or any of its Subsidiaries
relating to Hazardous Materials or any Environmental Laws.

    	9

    	 

    

(xxiv)Accounting
Controls and Disclosure Controls. The Company and each of its Subsidiaries maintain effective internal control over financial
reporting (as defined under Rule 13-a15 and 15d-15 under the 1934 Act Regulations) and a system of internal accounting controls
sufficient to provide reasonable assurances that (A) transactions are executed in accordance with management’s general or
specific authorization; (B) transactions are recorded as necessary to permit preparation of financial statements in conformity
with GAAP and to maintain accountability for assets; (C) access to assets is permitted only in accordance with management’s
general or specific authorization; and (D) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. Except as described in the Registration Statement, the
General Disclosure Package and the Prospectus, since the end of the Company’s most recent audited fiscal year, there has
been (1) no material weakness in the Company’s internal control over financial reporting (whether or not remediated) and
(2) no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely
to materially affect, the Company’s internal control over financial reporting. The Company and each of its Subsidiaries maintain
a system of disclosure controls and procedures (as defined in Rule 13a-15 and Rule 15d-15 under the 1934 Act Regulations) that
are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the
1934 Act is accumulated and communicated to the Company’s management, including its principal executive officer or officers
and principal financial officer or officers, as appropriate, to allow timely decisions regarding disclosure; and such disclosure
controls are effective.

(xxv)Payment
of Taxes. All United States federal income tax returns of the Company and its Subsidiaries required by law to be filed have
been filed and all taxes shown by such returns or otherwise assessed, which are due and payable, have been paid, except assessments
against which appeals have been or will be promptly taken and as to which adequate reserves have been provided or with respect
to which the failure to pay would not reasonably be expected to result in a Material Adverse Effect. The United States federal
income tax returns of the Company through the fiscal year ended December 31, 2007 have been audited and any assessment in connection
therewith has been paid. The Company and its Subsidiaries have filed all other tax returns that are required to have been filed
by them pursuant to applicable foreign, state, local or other law except insofar as the failure to file such returns would not
result in a Material Adverse Effect, and has paid all taxes due pursuant to such returns or pursuant to any assessment received
by the Company and its Subsidiaries, except for such taxes, if any, as are being contested in good faith and as to which adequate
reserves have been established by the Company or with respect to which the failure to pay would not reasonably be expected to result
in a Material Adverse Effect. The charges, accruals and reserves on the books of the Company in respect of any income and corporation
tax liability for any years not finally determined are adequate to meet any assessments or re-assessments for additional income
tax for any years not finally determined, except to the extent of any inadequacy that would not result in a Material Adverse Effect.

    	10

    	 

    

(xxvi)Insurance.
The Company and its Subsidiaries carry or are entitled to the benefits of insurance, with reputable insurers, in such amounts and
covering such risks as the Company believes are adequate and customary in the businesses in which it and its Subsidiaries are engaged,
and all such insurance is in full force and effect. The Company has no reason to believe that it or any of its Subsidiaries will
not be able (A) to renew its existing insurance coverage as and when such policies expire or (B) to obtain comparable
coverage from similar institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that
would not reasonably be expected to result in a Material Adverse Effect. Neither of the Company nor any of its Subsidiaries has
been denied any insurance coverage which it has sought or for which it has applied.

(xxvii)Investment
Company Act. The Company is not required, and upon the issuance and sale of the Securities as herein contemplated and the application
of the net proceeds therefrom as described in the Registration Statement, the General Disclosure Package and the Prospectus will
not be required, to register as an “investment company” under the Investment Company Act of 1940, as amended (the “1940
Act”).

(xxviii)Absence
of Manipulation. Neither the Company nor any of its subsidiaries, nor to the knowledge of the Company, any affiliate of the
Company, has taken, and the Company and its subsidiaries will not, and the Company will use its commercially reasonable efforts
to cause its affiliates not to, take, directly or indirectly, any action which is designed, or would be expected, to cause or result
in, or which has constituted, the stabilization or manipulation of the price of any security of the Company to facilitate the sale
or resale of the Securities or to result in a violation of Regulation M under the 1934 Act.

(xxix)Foreign
Corrupt Practices Act. None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer,
agent, employee, affiliate or other person acting on behalf of the Company or any of its subsidiaries is aware of or has taken
any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977,
as amended, and the rules and regulations thereunder (the “FCPA”), including, without limitation, making use of the
mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization
of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any
“foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any
candidate for foreign political office, in contravention of the FCPA and the Company and, to the knowledge of the Company, its
affiliates have conducted their businesses in compliance with the FCPA and have instituted and maintain policies and procedures
designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.

(xxx)Money
Laundering Laws. The operations of the Company and its subsidiaries are and have been conducted at all times in compliance
with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any Governmental Entity (collectively, the “Money Laundering
Laws”); and no action, suit or proceeding by or before any Governmental Entity involving the Company or any of its subsidiaries
with respect to the Money Laundering Laws is pending or, to the best knowledge of the Company, threatened.

    	11

    	 

    

(xxxi)OFAC.
None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee, affiliate
or other person acting on behalf of the Company or any of its subsidiaries is currently the subject of any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not directly
or indirectly use the proceeds of the sale of the Securities, or lend, contribute or otherwise make available such proceeds to
any of its subsidiaries, joint venture partners or other person, for the purpose of financing the activities of any person currently
subject to any U.S. sanctions administered by OFAC.

(xxxii)Lending
Relationship. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus,
the Company (i) does not have any material lending or other relationship with any bank or lending affiliate of any Underwriter
and (ii) does not intend to use any of the proceeds from the sale of the Securities to repay any outstanding debt owed to
any affiliate of any Underwriter.

(xxxiii)Statistical
and Market-Related Data. Any statistical and market-related data included in the Registration Statement, the General Disclosure
Package or the Prospectus are based on or derived from sources that the Company believes, after reasonable inquiry, to be reliable
and accurate and, to the extent required, the Company has obtained the written consent to the use of such data from such sources.

(b)Officer’s
Certificates. Any certificate signed by any officer of the Company or any of its Subsidiaries delivered to the Representative
or to counsel for the Underwriters shall be deemed a representation and warranty by the Company to each Underwriter as to the matters
covered thereby.

SECTION 2.Sale
and Delivery to Underwriters; Closing.

(a)Initial
Securities. On the basis of the representations and warranties herein contained and subject to the terms and conditions herein
set forth, the Company agrees to sell to each Underwriter, severally and not jointly, and each Underwriter, severally and not jointly,
agrees to purchase from the Company, at the respective prices per share set forth in Schedule A, that number of Non-Reserved Securities
and that number of Reserved Securities set forth in Schedule A opposite the name of such Underwriter, plus any additional number
of Initial Securities which such Underwriter may become obligated to purchase pursuant to the provisions of Section 10 hereof,
subject, in each case, to such adjustments among the Underwriters as the Representative in its sole discretion shall make to eliminate
any sales or purchases of fractional shares.

(b)Option
Securities. In addition, on the basis of the representations and warranties herein contained and subject to the terms and conditions
herein set forth, the Company hereby grants an option to the Underwriters, severally and not jointly, to purchase up to an additional
1,162,500 shares of Common Stock at the price per share set forth in Schedule A, less an amount per share equal to any dividends
or distributions declared by the Company and payable on the Initial Securities but not payable on the Option Securities. The option
hereby granted may be exercised for 30 days after the date hereof and may be exercised in whole or in part from time to time
only for the purpose of covering overallotments made in connection with the offering and distribution of the Initial Securities
upon notice by the Representative to the Company setting forth the number of Option Securities as to which the several Underwriters
are then exercising the option and the time and date of payment and delivery for such Option Securities. Any such time and date
of delivery (a “Date of Delivery”) shall be determined by the Representative, but shall not be later than seven full
business days after the exercise of said option, nor in any event prior to the Closing Time. If the option is exercised as to all
or any portion of the Option Securities, each of the Underwriters, acting severally and not jointly, will purchase that proportion
of the total number of Option Securities then being purchased which the total number of Initial Securities set forth in Schedule
A opposite the name of such Underwriter bears to the total number of Initial Securities, subject, in each case, to such adjustments
as the Representative in its sole discretion shall make to eliminate any sales or purchases of fractional shares.

    	12

    	 

    

(c)Payment.
Payment of the purchase price for, and delivery of certificates for, the Initial Securities shall be made at the offices of Sullivan &
Cromwell LLP, 125 Broad Street, New York, NY 10004, or at such other place as shall be agreed upon by the Representative
and the Company, at 9:00 A.M. (New York City time) on the third (fourth, if the pricing occurs after 4:30 P.M. (New York City
time) on any given day) business day after the date hereof (unless postponed in accordance with the provisions of Section 10),
or such other time not later than ten business days after such date as shall be agreed upon by the Representative and the Company
(such time and date of payment and delivery being herein called “Closing Time”).

In addition, in
the event that any or all of the Option Securities are purchased by the Underwriters, payment of the purchase price for, and delivery
of certificates for, such Option Securities shall be made at the above-mentioned offices, or at such other place as shall be agreed
upon by the Representative and the Company, on each Date of Delivery as specified in the notice from the Representative to the
Company.

Payment shall be
made to the Company by wire transfer of immediately available funds to a bank account designated by the Company against delivery
to the Representative for the respective accounts of the Underwriters of certificates for the Securities to be purchased by them.
It is understood that each Underwriter has authorized the Representative, for its account, to accept delivery of, receipt for,
and make payment of the purchase price for, the Initial Securities and the Option Securities, if any, which it has agreed to purchase.
PJC, individually and not as representative of the Underwriters, may (but shall not be obligated to) make payment of the purchase
price for the Initial Securities or the Option Securities, if any, to be purchased by any Underwriter whose funds have not been
received by the Closing Time or the relevant Date of Delivery, as the case may be, but such payment shall not relieve such Underwriter
from its obligations hereunder.

(d)Denominations;
Registration. Certificates for the Initial Securities and the Option Securities, if any, shall be in such denominations and
registered in such names as the Representative may request in writing at least one full business day before the Closing Time or
the relevant Date of Delivery, as the case may be. The certificates for the Initial Securities and the Option Securities, if any,
will be made available for examination and packaging by the Representative in The City of New York not later than 10:00 A.M.
(New York City time) on the business day prior to the Closing Time or the relevant Date of Delivery, as the case may be.

SECTION 3.Covenants
of the Company. The Company covenants with each Underwriter as follows:

(a)Compliance
with Securities Regulations and Commission Requests. The Company, subject to Section 3(b), will comply with the requirements
of Rule 430B, and will notify the Representative promptly, and confirm the notice in writing, (i) when any post-effective amendment
to the Registration Statement shall become effective or any amendment or supplement to the Prospectus shall have been filed, (ii) of
the receipt of any comments from the Commission, (iii) of any request by the Commission for any amendment to the Registration
Statement or any amendment or supplement to the Prospectus, including any document incorporated by reference therein or for additional
information, (iv) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement
or any post-effective amendment or of any order preventing or suspending the use of any preliminary prospectus or the Prospectus,
or of the suspension of the qualification of the Securities for offering or sale in any jurisdiction, or of the initiation or threatening
of any proceedings for any of such purposes or of any examination pursuant to Section 8(d) or 8(e) of the 1933 Act concerning the
Registration Statement and (v) if the Company becomes the subject of a proceeding under Section 8A of the 1933 Act in connection
with the offering of the Securities. The Company will effect all filings required under Rule 424(b), in the manner and within the
time period required by Rule 424(b) (without reliance on Rule 424(b)(8)), and will take such steps as it deems necessary to ascertain
promptly whether the form of prospectus transmitted for filing under Rule 424(b) was received for filing by the Commission and,
in the event that it was not, it will promptly file such prospectus. The Company will use commercially reasonable efforts to prevent
the issuance of any stop order, prevention or suspension and, if any such order is issued, to obtain the lifting thereof promptly
thereafter.

    	13

    	 

    

(b)Continued
Compliance with Securities Laws. The Company will comply with the 1933 Act, the 1933 Act Regulations, the 1934 Act and the
1934 Act Regulations so as to permit the completion of the distribution of the Securities as contemplated in this Agreement and
in the Registration Statement, the General Disclosure Package and the Prospectus. If at any time when a prospectus relating to
the Securities is (or, but for the exception afforded by Rule 172 of the 1933 Act Regulations (“Rule 172”), would be)
required by the 1933 Act to be delivered in connection with sales of the Securities, any event shall occur or condition shall exist
as a result of which it is necessary, in the opinion of counsel for the Underwriters or for the Company, to (i) amend the Registration
Statement in order that the Registration Statement will not include an untrue statement of a material fact or omit to state a 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, (ii) amend or supplement the General Disclosure Package or the Prospectus in order that the General Disclosure
Package or the Prospectus, as the case may be, will not include any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein not misleading to a purchaser or (iii) amend the Registration Statement
or amend or supplement the General Disclosure Package or the Prospectus, as the case may be, in order to comply with the requirements
of the 1933 Act or the 1933 Act Regulations, the Company will promptly (A) give the Representative notice of such event, (B) prepare
any amendment or supplement as may be necessary to correct such statement or omission or to make the Registration Statement, the
General Disclosure Package or the Prospectus comply with such requirements and, a reasonable amount of time prior to any proposed
filing or use, furnish the Representative with copies of any such amendment or supplement and (C) file with the Commission any
such amendment or supplement; provided that the Company shall not file or use any such amendment or supplement to which the Representative
or counsel for the Underwriters shall reasonably object, except for such filings the Company reasonably deems necessary to comply
with federal or state securities laws or any rules of a stock exchange upon which the Company’s securities are currently
listed. The Company will furnish to the Underwriters such number of copies of such amendment or supplement as the Underwriters
may reasonably request. The Company has given the Representative notice of any filings made pursuant to the 1934 Act or 1934 Act
Regulations within 48 hours prior to the Applicable Time; the Company will give the Representative notice of its intention to make
any such filing from the Applicable Time to the Closing Time and will furnish the Representative with copies of any such documents
a reasonable amount of time prior to such proposed filing, as the case may be, and will not file or use any such document to which
the Representative or counsel for the Underwriters shall reasonably object, except for such filings the Company reasonably deems
necessary to comply with federal or state securities laws or any rules of a stock exchange upon which the Company’s securities
are currently listed.

(c)Delivery
of Registration Statements. The Company has furnished or will deliver to the Representative and counsel for the Underwriters,
without charge, conformed or, upon request, signed copies of the Registration Statement as originally filed and each amendment
thereto (including exhibits filed therewith or incorporated by reference therein and documents incorporated or deemed to be incorporated
by reference therein) and facsimile signed copies of all consents and certificates of experts, and will also deliver to the Representative,
without charge, a conformed copy of the Registration Statement as originally filed and each amendment thereto (without exhibits)
for each of the Underwriters. The copies of the Registration Statement and each amendment thereto furnished to the Underwriters
will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent
permitted by Regulation S-T.

    	14

    	 

    

(d)Delivery
of Prospectuses. The Company has delivered to each Underwriter, without charge, as many copies of each preliminary prospectus
as such Underwriter reasonably requested, and the Company hereby consents to the use of such copies for purposes permitted by the
1933 Act. The Company will furnish to each Underwriter, without charge, during the period when a prospectus relating to the Securities
is (or, but for the exception afforded by Rule 172, would be) required to be delivered under the 1933 Act, such number of copies
of the Prospectus (as amended or supplemented) as such Underwriter may reasonably request. The Prospectus and any amendments or
supplements thereto furnished to the Underwriters will be identical to the electronically transmitted copies thereof filed with
the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.

(e)Blue
Sky Qualifications. The Company will use its commercially reasonable efforts, in cooperation with the Underwriters, if necessary,
to qualify the Securities for offering and sale under the applicable securities laws of such states and other jurisdictions (domestic
or foreign) as the Representative may designate and to maintain such qualifications in effect so long as required to complete the
distribution of the Securities; provided, however, that the Company shall not be obligated to file any general consent to service
of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified
or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject.

(f)Rule
158. The Company will timely file such reports pursuant to the 1934 Act as are necessary in order to make generally available
to its securityholders as soon as practicable an earnings statement for the purposes of, and to provide to the Underwriters the
benefits contemplated by, the last paragraph of Section 11(a) of the 1933 Act.

(g)Use
of Proceeds. The Company will use the net proceeds received by it from the sale of the Securities in the manner specified in
the Registration Statement, the General Disclosure Package and the Prospectus under “Use of Proceeds.”

(h)Listing.
The Company will use its commercially reasonable efforts to effect and maintain the listing of the Securities on the Nasdaq Global
Market.

(i)Restriction
on Sale of Securities. During a period of 90 days from the date of the Prospectus, the Company will not, without the prior
written consent of PJC, (i) directly or indirectly, offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of any
shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock or file any registration
statement under the 1933 Act with respect to any of the foregoing or (ii) enter into any swap or any other agreement or any transaction
that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the Common Stock, whether
any such swap or transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or such other securities,
in cash or otherwise. The foregoing sentence shall not apply to (A) the Securities to be sold hereunder, (B) any shares of Common
Stock issued by the Company upon the exercise of an option or warrant or the conversion of a security outstanding on the date hereof
and referred to in the Registration Statement, the General Disclosure Package and the Prospectus, (C) any shares of Common Stock
issued or options to purchase Common Stock granted pursuant to existing employee benefit plans of the Company referred to in the
Registration Statement, the General Disclosure Package and the Prospectus; (D) any shares of Common Stock issued pursuant to any
non-employee director stock plan or dividend reinvestment plan referred to in the Registration Statement, the General Disclosure
Package and the Prospectus or (E) issuances of Common Stock, or of options, warrants or other securities convertible or exchangeable
into Common Stock, in connection with any acquisition of a business, by purchase, merger or otherwise, by the Company or any of
its wholly-owned subsidiaries, provided that each recipient of such Common Stock, options, warrants or securities executes an agreement
stating that the recipient is acquiring the securities subject to the restrictions set forth in this clause 3(i). Notwithstanding
the foregoing, if (1) during the last 17 days of the 90-day restricted period the Company issues an earnings release or material
news or a material event relating to the Company occurs or (2) prior to the expiration of the 90-day restricted period, the Company
announces that it will issue an earnings release or becomes aware that material news or a material event will occur during the
16-day period beginning on the last day of the 90-day restricted period, the restrictions imposed in this clause (i) shall, subject
to the exceptions in clauses (A) through (E) above, continue to apply until the expiration of the 18-day period beginning on the
date of the issuance of the earnings release or the occurrence of the material news or material event, unless PJC waives, in writing,
such extension.

    	15

    	 

    

(j)Reporting
Requirements. The Company, during the period when a Prospectus relating to the Securities is (or, but for the exception afforded
by Rule 172, would be) required to be delivered under the 1933 Act, will file all documents required to be filed with the Commission
pursuant to the 1934 Act within the time periods required by the 1934 Act and 1934 Act Regulations.

(k)Issuer
Free Writing Prospectuses. The Company agrees that, unless it obtains the prior written consent of the Representative, it will
not make any offer relating to the Securities that would constitute an Issuer Free Writing Prospectus or that would otherwise constitute
a “free writing prospectus,” or a portion thereof, required to be filed by the Company with the Commission or retained
by the Company under Rule 433; provided that the Representative will be deemed to have consented to the Issuer Free Writing Prospectuses
listed on Schedule B-2 hereto and any “road show that is a written communication” within the meaning of Rule 433(d)(8)(i)
that has been reviewed by the Representative. The Company represents that it has treated or agrees that it will treat each such
free writing prospectus consented to, or deemed consented to, by the Representative as an “issuer free writing prospectus,”
as defined in Rule 433, and that it has complied and will comply with the applicable requirements of Rule 433 with respect thereto,
including timely filing with the Commission where required, legending and record keeping. If at any time following issuance of
an Issuer Free Writing Prospectus there occurred or occurs an event or development as a result of which such Issuer Free Writing
Prospectus conflicted or would conflict with the information contained in the Registration Statement, any preliminary prospectus
or the Prospectus or included or would include an untrue statement of a material fact or omitted or would omit to state a material
fact necessary in order to make the statements therein, in the light of the circumstances existing at that subsequent time, not
misleading, the Company will promptly notify the Representative and will promptly amend or supplement, at its own expense, such
Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission.

SECTION 4.Payment
of Expenses.

(a)Expenses.
The Company will pay or cause to be paid all expenses incident to the performance of their obligations under this Agreement, including
(i) the preparation, printing and filing of the Registration Statement (including financial statements and exhibits) as originally
filed and each amendment thereto, (ii) the preparation, printing and delivery to the Underwriters of copies of each preliminary
prospectus, each Issuer Free Writing Prospectus and the Prospectus and any amendments or supplements thereto and any costs associated
with electronic delivery of any of the foregoing by the Underwriters to investors, (iii) the preparation, issuance and delivery
of the certificates for the Securities to the Underwriters, including any stock or other transfer taxes and any stamp or other
duties payable upon the sale, issuance or delivery of the Securities to the Underwriters, (iv) the fees and disbursements
of the Company’s counsel, accountants and other advisors, (v) the qualification of the Securities under securities laws
in accordance with the provisions of Section 3(e) hereof, including filing fees and the reasonable fees and disbursements
of counsel for the Underwriters in connection therewith and in connection with the preparation of the Blue Sky Survey and any supplement
thereto, (vi) the fees and expenses of any transfer agent or registrar for the Securities, (vii) the costs and expenses of the
Company relating to investor presentations on any “road show” undertaken in connection with the marketing of the Securities,
including without limitation, expenses associated with the production of road show slides and graphics, fees and expenses of any
consultants engaged in connection with the road show presentations, travel and lodging expenses of the representatives and officers
of the Company and any such consultants and the cost of aircraft and other travel chartered in connection with the road show, (viii)
the filing fees incident to, and the reasonable fees and disbursements of counsel to the Underwriters in connection with, the review
by FINRA of the terms of the sale of the Securities, (ix) the fees and expenses incurred in connection with the listing of the
Securities on the Nasdaq Global Select Market, and (x) the costs and expenses (including, without limitation, any damages or other
amounts payable in connection with legal or contractual liability) associated with the reforming of any contracts for sale of the
Securities made by the Underwriters caused by a breach of the representation contained in the third sentence of Section 1(a)(ii).

    	16

    	 

    

 (b)Termination
of Agreement. If this Agreement is terminated by the Representative in accordance with the provisions of Section 5, Section 9(a)(i)
or (iii), Section 10 or Section 11 hereof, the Company shall reimburse the Underwriters (except for any defaulting Underwriters)
for all of their out-of-pocket expenses, including the reasonable fees and disbursements of counsel for the Underwriters.

SECTION 5.Conditions
of Underwriters’ Obligations. The obligations of the several Underwriters hereunder are subject to the accuracy of the
representations and warranties of the Company contained herein as of the date hereof and as of the Closing Time as though then
made or in certificates of any officer of the Company or any of its subsidiaries delivered pursuant to the provisions hereof, to
the performance by the Company of its covenants and other obligations hereunder, and to the following further conditions:

(a)Effectiveness
of Registration Statement. The Registration Statement has become effective and at Closing Time no stop order suspending the
effectiveness of the Registration Statement or any post-effective amendment thereto has been issued under the 1933 Act, no order
preventing or suspending the use of any preliminary prospectus or the Prospectus has been issued and no proceedings for any of
those purposes have been instituted or are pending or, to the Company’s knowledge, threatened; and the Company has complied
with each request (if any) from the Commission for additional information.

(b)Opinion
of Counsel for Company. At the Closing Time, the Representative shall have received the favorable opinion, dated the Closing
Time, of Kane Kessler, P.C., counsel for the Company, in form and substance reasonably satisfactory to counsel for the Underwriters,
together with signed or reproduced copies of such letter for each of the other Underwriters substantially to the effect set forth
in Exhibit A hereto.

(c)Opinion
of Counsel for Underwriters. At the Closing Time, the Representative shall have received the favorable opinion, dated the Closing
Time, of Sullivan & Cromwell LLP, counsel for the Underwriters together with signed or reproduced copies of such letter
for each of the other Underwriters, with respect to such matters as the Representative may require. In giving such opinion such
counsel may rely, as to all matters governed by the laws of jurisdictions other than the law of the State of New York, the General
Corporation Law of the State of Delaware and the federal securities laws of the United States, upon the opinions of counsel satisfactory
to the Representative. Such counsel may also state that, insofar as such opinion involves factual matters, they have relied, to
the extent they deem proper, upon certificates of officers and other representatives of the Company and its subsidiaries and certificates
of public officials.

    	17

    	 

    

(d)Officers’
Certificate. At the Closing Time, there shall not have been, since the date hereof or since the respective dates as of which
information is given in the Registration Statement, the General Disclosure Package or the Prospectus, any material adverse change
in the condition, financial or otherwise, or in the earnings, business affairs or business prospects of the Company and its subsidiaries
considered as one enterprise, whether or not arising in the ordinary course of business, and the Representative shall have received
a certificate of the Chief Executive Officer or the President of the Company and of the chief financial or chief accounting officer
of the Company, dated the Closing Time, to the effect that (i) there has been no such material adverse change, (ii) the representations
and warranties of the Company in this Agreement are true and correct with the same force and effect as though expressly made at
and as of the Closing Time, (iii) the Company has complied with all agreements and satisfied all conditions on its part to
be performed or satisfied at or prior to the Closing Time, and (iv) no stop order suspending the effectiveness of the Registration
Statement under the 1933 Act has been issued, no order preventing or suspending the use of any preliminary prospectus or the Prospectus
has been issued and no proceedings for any of those purposes have been instituted or are pending or, to their knowledge, threatened.

(e)KPMG’s
Comfort Letter. At the time of the execution of this Agreement, the Representative shall have received from KPMG LLP a letter
or letters, dated such date, in form and substance reasonably satisfactory to the Representative, together with signed or reproduced
copies of such letter for each of the other Underwriters containing statements and information of the type ordinarily included
in accountants’ “comfort letters” to underwriters with respect to the financial statements and certain financial
information contained in the Registration Statement, the General Disclosure Package and the Prospectus.

(f)KPMG’s
Bring-down Comfort Letter. At the Closing Time, the Representative shall have received from KPMG LLP a letter or letters, dated
as of the Closing Time, to the effect that they reaffirm the statements made in the letter or letters furnished pursuant to subsection
(e) of this Section, except that the specified date referred to shall be a date not more than three business days prior to the
Closing Time.

(g)Tanner
Comfort Letter. At the time of the execution of this Agreement, the Representative shall have received from Tanner LLC a letter,
dated such date, in form and substance reasonably satisfactory to the Representative, together with signed or reproduced copies
of such letter for each of the other Underwriters containing statements and information of the type ordinarily included in accountants’
“comfort letters” to underwriters with respect to the financial statements and certain financial information contained
in the Registration Statement, the General Disclosure Package and the Prospectus.

(h)Tanner
Bring-down Comfort Letter. At the Closing Time, the Representative shall have received from Tanner LLC a letter, dated as of
the Closing Time, to the effect that they reaffirm the statements made in the letter furnished pursuant to subsection (g) of this
Section, except that the specified date referred to shall be a date not more than three business days prior to the Closing Time.

(i)Approval
of Listing. At the Closing Time, the Securities shall have been approved for listing on the Nasdaq Global Market, subject only
to official notice of issuance.

    	18

    	 

    

(j)No
Objection. FINRA has confirmed that it has not raised any objection with respect to the fairness and reasonableness of the
underwriting terms and arrangements relating to the offering of the Securities.

(k)Lock-up
Agreements. At the date of this Agreement, the Representative shall have received an agreement substantially in the form of
Exhibit B hereto signed by the persons listed on Schedule C hereto.

(l)Conditions
to Purchase of Option Securities. In the event that the Underwriters exercise their option provided in Section 2(b) hereof
to purchase all or any portion of the Option Securities, the representations and warranties of the Company contained herein and
the statements in any certificates furnished by the Company and any of its subsidiaries hereunder shall be true and correct as
of each Date of Delivery and, at the relevant Date of Delivery, the Representative shall have received:

(i)Officers’
Certificate. A certificate, dated such Date of Delivery, of the President or a Vice President of the Company and of the chief
financial or chief accounting officer of the Company confirming that the certificate delivered at the Closing Time pursuant to
Section 5(d) hereof remains true and correct as of such Date of Delivery.

(ii)Opinion
of Counsel for Company. If requested by the Representative, the favorable opinion of Kane Kessler, P.C., counsel for the Company,
in form and substance reasonably satisfactory to counsel for the Underwriters, dated such Date of Delivery, relating to the Option
Securities to be purchased on such Date of Delivery and otherwise to the same effect as the opinion required by Section 5(b)
hereof.

(iii)Opinion
of Counsel for Underwriters. If requested by the Representative, the favorable opinion of Sullivan & Cromwell LLP,
counsel for the Underwriters, dated such Date of Delivery, relating to the Option Securities to be purchased on such Date of Delivery
and otherwise to the same effect as the opinion required by Section 5(c) hereof.

(iv)KPMG
Bring-down Comfort Letter. If requested by the Representative, a letter or letters from KPMG LLP, in form and substance
reasonably satisfactory to the Representative and dated such Date of Delivery, substantially in the same form and substance as
the letter or letters furnished to the Representative pursuant to Section 5(e) hereof, except that the “specified date”
in the letter or letters furnished pursuant to this paragraph shall be a date not more than three business days prior to such Date
of Delivery.

(v)Tanner
Bring-down Comfort Letter. If requested by the Representative, a letter from Tanner LLC, in form and substance reasonably satisfactory
to the Representative and dated such Date of Delivery, substantially in the same form and substance as the letter furnished to
the Representative pursuant to Section 5(g) hereof, except that the “specified date” in the letter furnished pursuant
to this paragraph shall be a date not more than three business days prior to such Date of Delivery.

(m)Additional
Documents. At the Closing Time and at each Date of Delivery (if any) counsel for the Underwriters shall have been furnished
with such documents and opinions as they may require for the purpose of enabling them to pass upon the issuance and sale of the
Securities as herein contemplated, or in order to evidence the accuracy of any of the representations or warranties, or the fulfillment
of any of the conditions, herein contained; and all proceedings taken by the Company in connection with the issuance and sale of
the Securities as herein contemplated shall be reasonably satisfactory in form and substance to the Representative and counsel
for the Underwriters.

    	19

    	 

    

(n)Termination
of Agreement. If any condition specified in this Section shall not have been fulfilled when and as required to be fulfilled,
this Agreement, or, in the case of any condition to the purchase of Option Securities on a Date of Delivery which is after the
Closing Time, the obligations of the several Underwriters to purchase the relevant Option Securities, may be terminated by the
Representative by notice to the Company at any time at or prior to Closing Time or such Date of Delivery, as the case may be, and
such termination shall be without liability of any party to any other party except as provided in Section 4 and except that Sections
6, 7, 15, 16, 17 and, in the event that there has been payment and delivery of any Securities, Sections 1 and 8, shall survive
any such termination and remain in full force and effect.

SECTION 6.Indemnification.

(a)Indemnification
of Underwriters. The Company agrees to indemnify and hold harmless each Underwriter, its affiliates (as such term is defined
in Rule 501(b) under the 1933 Act (each, an “Affiliate”)), its selling agents and each person, if any, who controls
any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows:

(i)against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), including any information
deemed to be a part thereof pursuant to Rule 430B, or the omission or alleged omission therefrom of a material fact required to
be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged
untrue statement of a material fact included (A) in any preliminary prospectus, any Issuer Free Writing Prospectus, the General
Disclosure Package or the Prospectus (or any amendment or supplement thereto) or (B) in any materials or information provided to
investors by, or with the approval of, the Company in connection with the marketing of the offering of the Stock (“Marketing
Materials”), including any roadshow or investor presentations made to investors by the Company (whether in person or electronically),
or the omission or alleged omission in any preliminary prospectus, Issuer Free Writing Prospectus, Prospectus or in any Marketing
Materials of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading;

(ii)against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement
of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject
to Section 6(d) below) any such settlement is effected with the written consent of the Company;

(iii)against
any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by PJC), reasonably
incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above;

provided, however,
that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any
untrue statement or omission or alleged untrue statement or omission made in the Registration Statement (or any amendment thereto),
including any information deemed to be a part thereof pursuant to Rule 430B, the General Disclosure Package or the Prospectus (or
any amendment or supplement thereto) in reliance upon and in conformity with the Underwriter Information.

    	20

    	 

    

(b)Indemnification
of Company, Directors and Officers. Each Underwriter severally agrees to indemnify and hold harmless the Company, its directors,
each of its officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning
of Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any and all loss, liability, claim, damage and expense described
in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions,
or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), including any information
deemed to be a part thereof pursuant to Rule 430B, the General Disclosure Package or the Prospectus (or any amendment or supplement
thereto) in reliance upon and in conformity with the Underwriter Information.

(c)Actions
against Parties; Notification. Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying
party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying
party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity
agreement. In the case of parties indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected
by PJC, and, in the case of parties indemnified pursuant to Section 6(b) above, counsel to the indemnified parties shall be selected
by the Company, provided, that in each case such counsel shall be reasonably satisfactory to the indemnifying parties. An indemnifying
party may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnifying
party shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall
the indemnifying parties be liable for fees and expenses of more than one counsel (in addition to any local counsel) separate from
their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the
same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without the prior
written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation,
or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect
of which indemnification or contribution could be sought under this Section 6 or Section 7 hereof (whether or not the indemnified
parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release
of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.

(d)Settlement
without Consent if Failure to Reimburse. If at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall be liable
for any settlement of the nature contemplated by Section 6(a)(ii) effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party
shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii)
such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such
settlement.

SECTION 7.Contribution.
If the indemnification provided for in Section 6 hereof is for any reason unavailable to or insufficient to hold harmless
an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying
party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified
party, as incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, on the one
hand, and the Underwriters, on the other hand, from the offering of the Securities pursuant to this Agreement or (ii) if the allocation
provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the Company, on the one hand, and of the Underwriters,
on the other hand, in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations.

    	21

    	 

    

The relative benefits
received by the Company, on the one hand, and the Underwriters, on the other hand, in connection with the offering of the Securities
pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering
of the Securities pursuant to this Agreement (before deducting expenses) received by the Company, on the one hand, and the total
underwriting discount received by the Underwriters, on the other hand, in each case as set forth on the cover of the Prospectus,
bear to the aggregate initial public offering price of the Securities as set forth on the cover of the Prospectus.

The relative fault
of the Company, on the one hand, and the Underwriters, on the other hand, shall be determined by reference to, among other things,
whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact
relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission.

The Company and
the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro
rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which
does not take account of the equitable considerations referred to above in this Section 7. The aggregate amount of losses, liabilities,
claims, damages and expenses incurred by an indemnified party and referred to above in this Section 7 shall be deemed to include
any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever
based upon any such untrue or alleged untrue statement or omission or alleged omission.

Notwithstanding
the provisions of this Section 7, no Underwriter shall be required to contribute any amount in excess
of the underwriting commissions received by such Underwriter in connection with the Shares underwritten by it and distributed to
the public.

No person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

For purposes of
this Section 7, each person, if any, who controls an Underwriter within the meaning of Section 15 of the 1933 Act or Section 20
of the 1934 Act and each Underwriter’s Affiliates and selling agents shall have the same rights to contribution as such Underwriter,
and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who
controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same
rights to contribution as the Company. The Underwriters’ respective obligations to contribute pursuant to this Section 7
are several in proportion to the total number of Initial Securities set forth opposite their respective names in Schedule A hereto
and not joint.

SECTION 8.Representations,
Warranties and Agreements to Survive. All representations, warranties and agreements contained in this Agreement or in certificates
of officers of the Company or any of its subsidiaries submitted pursuant hereto, shall remain operative and in full force and effect
regardless of (i) any investigation made by or on behalf of any Underwriter or its Affiliates or selling agents, any person
controlling any Underwriter, its officers or directors, or any person controlling the Company and (ii) delivery of and payment
for the Securities.

    	22

    	 

    

SECTION 9.Termination
of Agreement.

(a)Termination.
The Representative may terminate this Agreement, by notice to the Company, at any time at or prior to the Closing Time (i) if there
has been, since the time of execution of this Agreement or since the respective dates as of which information is given in the Registration
Statement, the General Disclosure Package or the Prospectus, any material adverse change in the condition, financial or otherwise,
or in the earnings, business affairs or business prospects of the Company and its subsidiaries considered as one enterprise, whether
or not arising in the ordinary course of business, which is such as to make it, in the judgment of the Representative, impracticable
or inadvisable to proceed with the completing of the offering contemplated hereby, or (ii) if there has occurred any material
adverse change in the financial markets in the United States or the international financial markets, any outbreak of hostilities
or escalation thereof or other calamity or crisis or any change or development involving a prospective change in national or international
political, financial or economic conditions, in each case the effect of which is such as to make it, in the judgment of the Representative,
impracticable or inadvisable to proceed with the completion of the offering or to enforce contracts
for the sale of the Securities, or (iii) if trading in any securities of the Company has been suspended or materially limited
by the Commission or the Nasdaq Global Market, or (iv) if trading generally on the American Stock Exchange or the New York
Stock Exchange or in the Nasdaq Global Market has been suspended or materially limited, or minimum or maximum prices for trading
have been fixed, or maximum ranges for prices have been required, by any of said exchanges or by order of the Commission, FINRA
or any other governmental authority, or (v) if a material disruption has occurred in commercial banking or securities settlement
or clearance services in the United States or with respect to Clearstream or Euroclear systems in Europe, or (vi) if a banking
moratorium has been declared by either Federal or New York authorities.

(b)Liabilities.
If this Agreement is terminated pursuant to this Section, such termination shall be without liability of any party to any other
party except as provided in Section 4 hereof, and provided further that Sections 6, 7, 15, 16, 17 and, in the event that there
has been payment and delivery of any Securities, Sections 1 and 8, shall survive such termination and remain in full force and
effect.

SECTION 10.Default
by One or More of the Underwriters. If one or more of the Underwriters shall fail at Closing Time or a Date of Delivery to
purchase the Securities which it or they are obligated to purchase under this Agreement (the “Defaulted Securities”),
the Representative shall have the right, within 24 hours thereafter, to make arrangements for one or more of the non-defaulting
Underwriters, or any other underwriters, to purchase all, but not less than all, of the Defaulted Securities in such amounts as
may be agreed upon and upon the terms herein set forth; if, however, the Representative shall not have completed such arrangements
within such 24-hour period, then:

(i)if
the number of Defaulted Securities does not exceed 10% of the number of Securities to be purchased on such date, each of the non-defaulting
Underwriters shall be obligated, severally and not jointly, to purchase the full amount thereof in the proportions that their respective
underwriting obligations hereunder bear to the underwriting obligations of all non-defaulting Underwriters, or

(ii)if
the number of Defaulted Securities exceeds 10% of the number of Securities to be purchased on such date, this Agreement or, with
respect to any Date of Delivery which occurs after the Closing Time, the obligation of the Underwriters to purchase, and the Company
to sell, the Option Securities to be purchased and sold on such Date of Delivery shall terminate without liability on the part
of any non-defaulting Underwriter or the Company.

    	23

    	 

    

No action taken
pursuant to this Section shall relieve any defaulting Underwriter from liability in respect of its default.

In the event of
any such default which does not result in a termination of this Agreement or, in the case of a Date of Delivery which is after
the Closing Time, which does not result in a termination of the obligation of the Underwriters to purchase and the Company to sell
the relevant Option Securities, as the case may be, either the (i) Representative or (ii) the Company shall have the right to postpone
Closing Time or the relevant Date of Delivery, as the case may be, for a period not exceeding seven days in order to effect any
required changes in the Registration Statement, the General Disclosure Package or the Prospectus or in any other documents or arrangements.
As used herein, the term “Underwriter” includes any person substituted for an Underwriter under this Section 10.

SECTION 11.Default
by the Company. If the Company shall fail at the Closing Time or a Date of Delivery, as the case may be, to sell the number
of Securities that it is obligated to sell hereunder, then this Agreement shall terminate without any liability on the part of
any nondefaulting party; provided, however, that the provisions of Sections 1, 4, 6, 7, 8, 15, 16 and 17 shall remain in full force
and effect. No action taken pursuant to this Section shall relieve the Company from liability, if any, in respect of such default.

SECTION 12.Notices.
All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted
by any standard form of telecommunication. Notices to the Underwriters shall be directed to PJC at 800 Nicollet Mall, Minneapolis,
MN 55402, attention of Syndicate Department, with a copy to General Counsel Department; notices to the Company shall be directed
to it at Black Diamond, Inc., 2084 East 3900 South, Salt Lake City, Utah 84124, attention of Peter Metcalf, President & Chief
Executive Officer, and Robert N. Peay, Chief Financial Officer.

SECTION 13.No
Advisory or Fiduciary Relationship. The Company acknowledges and agrees that (a) the purchase and sale of the Securities
pursuant to this Agreement, including the determination of the initial public offering price of the Securities and any related
discounts and commissions, is an arm’s-length commercial transaction between the Company, on the one hand, and the several
Underwriters, on the other hand, (b) in connection with the offering of the Securities and the process leading thereto, each
Underwriter is and has been acting solely as a principal and is not the agent or fiduciary of the Company, any of its subsidiaries
or their respective stockholders, creditors, employees or any other party, (c) no Underwriter has assumed or will assume an advisory
or fiduciary responsibility in favor of the Company with respect to the offering of the Securities or the process leading thereto
(irrespective of whether such Underwriter has advised or is currently advising the Company or any of its subsidiaries on other
matters) and no Underwriter has any obligation to the Company with respect to the offering of the Securities except the obligations
expressly set forth in this Agreement, (d) the Underwriters and their respective affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Company, and (e) the Underwriters have not provided any legal,
accounting, regulatory or tax advice with respect to the offering of the Securities and the Company has consulted its own respective
legal, accounting, regulatory and tax advisors to the extent it deemed appropriate.

SECTION 14.Parties.
This Agreement shall each inure to the benefit of and be binding upon the Underwriters and the Company and their respective successors.
Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, firm or corporation, other
than the Underwriters and the Company and their respective successors and the controlling persons and officers and directors referred
to in Sections 6 and 7 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 Underwriters and the Company and their respective successors, and said controlling
persons and officers and directors and their heirs and legal representatives, and for the benefit of no other person, firm or corporation.
No purchaser of Securities from any Underwriter shall be deemed to be a successor by reason merely of such purchase.

    	24

    	 

    

SECTION
15.Trial by Jury. The Company (on its behalf and, to the extent permitted by applicable law, on behalf of its stockholders
and affiliates) and each of the Underwriters hereby irrevocably waives, to the fullest extent permitted by applicable law, any
and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated
hereby.

SECTION 16.GOVERNING
LAW. THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF, THE STATE OF NEW YORK WITHOUT REGARD TO ITS CHOICE OF LAW PROVISIONS.

SECTION 17.Consent
to Jurisdiction; Waiver of Immunity. Any legal suit, action or proceeding arising out of or based upon this Agreement or the
transactions contemplated hereby (“Related Proceedings”) shall be instituted in (i) the federal courts of the
United States of America located in the City and County of New York, Borough of Manhattan or (ii) the courts of the State
of New York located in the City and County of New York, Borough of Manhattan (collectively, the “Specified Courts”),
and each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement
of a judgment of any such court (a “Related Judgment”), as to which such jurisdiction is non-exclusive) of such courts
in any such suit, action or proceeding. Service of any process, summons, notice or document by mail to such party’s address
set forth above shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties
irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or other proceeding in the Specified
Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit, action or
other proceeding brought in any such court has been brought in an inconvenient forum.

SECTION 18.TIME.
TIME SHALL BE OF THE ESSENCE OF THIS AGREEMENT. EXCEPT AS OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK
CITY TIME.

SECTION 19.Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts
shall together constitute one and the same Agreement.

SECTION 20.Effect
of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof.

    	25

    	 

    

If the foregoing
is in accordance with your understanding of our agreement, please sign and return to the Company a counterpart hereof, whereupon
this instrument, along with all counterparts, will become a binding agreement among the Underwriters and the Company in accordance
with its terms.

 

	 	Very truly yours,
 

BLACK DIAMOND, INC.
	 	 
	 	By: 	/s/ Robert Peay
	 	 	Title: Chief Financial Officer

 

	CONFIRMED AND ACCEPTED,

	as of the date first above written:

 

PIPER JAFFRAY & CO.
	 
	By: 	/s/ Christie L. Christina
	 	Name: Christie L. Christina

Title: Managing Director

  

For itself and as Representative of the other

Underwriters named in Schedule A hereto.

 

    	26

    	 

    

SCHEDULE A

The initial public offering price per share for the Securities
shall be $7.50.

The purchase price per share for the Non-Reserve Securities
and the Option Securities to be paid by the several Underwriters shall be $7.05, being an amount equal to the initial public offering
price set forth above less $0.45 per share, subject to adjustment in accordance with Section 2(b) for dividends or distributions
declared by the Company and payable on the Initial Securities but not payable on the Option Securities. The purchase price per
share for the Reserved Securities to be paid by the several Underwriters shall be $7.50, being an amount equal to the initial public
offering price.

	Name of Underwriter	 	Number of
Non-Reserve Securities	 	 	Number of 
Reserve Securities	 
	 	 	 	 	 	 	 
	Piper Jaffray & Co.	 	 	7,450,000	 	 	 	1,117,500	 
	Wm Smith & Co.	 	 	300,000	 	 	 	45,000	 
	Total	 	 	7,750,000	 	 	 	1,162,500	 

 

    	Sch A-1

    	 

    

SCHEDULE B-1

Pricing Terms

1.The Company is selling 7,750,000
shares of Common Stock.

2.The Company has granted an option
to the Underwriters, severally and not jointly, to purchase up to an additional 1,162,500 shares of Common Stock.

3.The initial public offering price per share for the
Securities shall be $7.50.

4.The number of Reserved Securities to be sold by the
Company to certain employees, directors and officers is 1,333,333 shares of Common Stock.

 

    	Sch B-1-1

    	 

    

SCHEDULE B-2

Free Writing Prospectuses

None.

 

    	Sch B-2-1

    	 

    

SCHEDULE C

List of Persons and Entities Subject
to Lock-up

Warren B. Kanders

Kanders GMP Holdings, LLC

Robert R. Schiller

Nicholas Sokolow

Donald L. House

Philip N. Duff

Michael A. Henning

Peter Metcalf

Robert N. Peay

Richard S. Luskin

Aaron Kuehne

Bill Kulczycki

Chris Grover

Mark Ritchie

Rosalie Mark

Ryan Gellert

Scott Carlson

Christian Jaeggi

Ethan R. Schiller UTMA, Robert Schiller

Jonah A. Schiller UTMA, Robert Schiller

Robert R. Schiller Cornerstone Trust

Robert R. Schiller Revocable Trust

Robert R. Schiller Roth IRA

Samuel M. Schiller UTMA, Robert R. Schiller

Schiller Gregory Investment Corp LLC

ST Investors Fund, LLC

 

    	Sch C-1

    	 

    

SCHEDULE D

List of “Significant Subsidiaries”
of the Company

	Subsidiary	Jurisdiction of Incorporation
	 	 
	Black Diamond Equipment, Ltd.	Delaware
	 	 
	Gregory Mountain Products, LLC	Delaware
	 	 
	Black Diamond Equipment AG	Switzerland
	 	 
	
        Black Diamond Equipment Asia Ltd.

        (a/k/a Black Diamond Sporting
        Equipment

        (ZFTZ) Co. Ltd.)
	China
	 	 

 

    	Sch D-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}]]