Document:

Exhibit 10.1

 

EXECUTION VERSION

 

AMENDMENT No. 5, dated as of September 14, 2018 (this “Amendment”), to the Credit Agreement dated as of April 6, 2012, among THE CONTAINER STORE, INC., a Texas corporation (the “Borrower”), the Guarantors party thereto, the several banks and other financial institutions or entities from time to time parties to the Credit Agreement (the “Lenders”), JPMORGAN CHASE BANK, N.A., as Administrative Agent (the “Administrative Agent”), and the other parties thereto (as amended by Amendment No. 1 dated as of April 8, 2013, as amended by Amendment No. 2 dated as of November 27, 2013, as amended by Amendment No. 3 dated as of May 20, 2016, and as further amended by Amendment No. 4 dated as of August 18, 2017, and as further amended, amended and restated, supplemented or otherwise modified, the “Credit Agreement”); capitalized terms used and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement.

 

WHEREAS, the Borrower desires to amend the Credit Agreement on the terms set forth herein;

 

WHEREAS, Section 11.01 of the Credit Agreement provides that the relevant Loan Parties and the Required Lenders may amend the Credit Agreement and the other Loan Documents for certain purposes;

 

WHEREAS, (i) each Amendment No. 5 Consenting Lender (as defined in Exhibit A) that has so indicated on its signature page hereto has agreed, on the terms and conditions set forth herein, to have up to all (or, if less, the amount notified to such Lender by the Administrative Agent prior to the Amendment No. 5 Effective Date) of its outstanding Term B-1 Loan (as defined in Exhibit A) converted into a like principal amount of a Term B-2 Loan (as defined in Exhibit A) effective as of the Amendment No. 5 Effective Date and (ii) the Additional Term B-2 Lender (as defined in Exhibit A) has agreed to provide an Additional Term B-2 Commitment (as defined in Exhibit A) in a principal amount equal to $272,500,000 minus the principal amount of Term B-1 Loans converted into Term B-2 Loans on the Amendment No. 5 Effective Date, the proceeds of which, together with other funds of the Borrower, shall be applied to repay non-converted Term B-1 Loans;

 

WHEREAS, JPMorgan Chase Bank, N.A. is acting as lead arranger and bookrunner in connection with this Amendment;

 

NOW, THEREFORE, in consideration of the premises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

Section 1.                                           Amendment.  The Credit Agreement is, effective as of the Amendment No. 5 Effective Date, hereby amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined text) as set forth in the pages of the Credit Agreement attached as Exhibit A hereto.

 

Section 2.                                           Representations and Warranties, No Default.  In order to induce the Lenders to enter into this Amendment and to amend the Credit Agreement in the manner provided herein, the Borrower represents and warrants to each Lender that:

 

a)             After giving effect to this Amendment, each of the representations and warranties in the Credit Agreement and in the other Loan Documents are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof, except to the extent that any such representation or warranty expressly relates to an earlier date, in which case such

 

 

representation or warranty shall be true and correct in all material respects as of such earlier date; and

 

b)             At the time of and immediately after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.

 

Section 3.                                           Effectiveness.  Section 1 of this Amendment shall become effective on the date (such date, if any, the “Amendment No. 5 Effective Date”) that the following conditions have been satisfied:

 

(i)                                     Consents.  The Administrative Agent shall have received executed signature pages hereto from Lenders constituting the Required Lenders;

 

(ii)                                  Additional Joinder Agreement.  The Administrative Agent, the Borrower and the Additional Term B-2 Lender shall have entered into the Additional Term B-2 Joinder Agreement (as defined in Exhibit A);

 

(iii)                               Fees.  The Borrower shall have paid (i) to the Amendment No. 5 Lead Arranger (as defined in Exhibit A) in immediately available funds, all fees and expenses owing to Amendment No. 5 Lead Arranger and due and payable on the Amendment No. 5 Effective Date as separately agreed to in writing by the Borrower and Amendment No. 5 Lead Arranger, (ii) to the extent invoiced prior to the Amendment No. 5 Effective Date, all reasonable out-of-pocket expenses of the Amendment No. 5 Lead Arranger and the Administrative Agent in connection with this Amendment and the transaction contemplated hereby (including the reasonable fees and expenses of Cahill Gordon & Reindel LLP, counsel to the Amendment No. 5 Lead Arranger and the Administrative Agent) and (iii) to the Administrative Agent for the account of each Amendment No. 5 Consenting Lender and each Additional Term B-2 Lender an upfront fee equal to 0.50% of the aggregate Term B-2 Loans of such Lender as of the Amendment No. 5 Effective Date (which, in the case of fees payable to the Additional Term B-2 Lender, may be net funded from the proceeds of the Term B-2 Loans to be funded by the Additional Term B-2 Lender pursuant to the Additional Term B-2 Joinder Agreement);

 

(iv)                              Legal Opinions.  The Administrative Agent shall have received a favorable legal opinion of Latham & Watkins LLP, counsel to the Loan Parties covering such matters as the Administrative Agent may reasonably request and otherwise reasonably satisfactory to the Administrative Agent;

 

(v)                                 Officer’s Certificate. The Administrative Agent shall have received a certificate of a Responsible Officer of the Borrower dated the Amendment No. 5 Effective Date certifying that (a) after giving effect to this Amendment, each of the representations and warranties in the Credit Agreement and in the other Loan Documents are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof, except to the extent that any such representation or warranty expressly relates to an earlier date, in which case such representation or warranty shall be true and correct in all material respects as of such earlier date and (b) at the time of and immediately after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing;

 

(vi)                              Closing Certificates.  The Administrative Agent shall have received (i) such certificates of resolutions or other action, incumbency certificates and/or other certificates of

 

2

 

Responsible Officers of each Loan Party as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Amendment and any other Loan Documents executed on behalf of such Loan Party and (ii) good standing or active status certificates, as applicable, of each Loan Party in its jurisdiction of organization and, to the extent reasonably requested by the Administrative Agent, bring-down good standing or active status certificates, as applicable;

 

(vii)                           Lien Searches.   The Administrative Agent shall have received results of searches or other evidence reasonably satisfactory to the Collateral Agent (in each case dated as of a date reasonably satisfactory to the Collateral Agent) indicating the absence of Liens on the assets of the Loan Parties, except for Permitted Liens;

 

(viii)                        Committed Loan Notice.  The Administrative Agent shall have received a Committed Loan Notice in accordance with the requirements of the Credit Agreement; and

 

(ix)                              Repayment of Term B-1 Loans.  The Administrative Agent shall have received a notice of repayment from the Borrower of the Term B-1 Loans which are not converted into Term B-2 Loans on the Amendment No. 5 Effective Date (which may be conditioned upon the receipt by the Borrower of the Term B-2 Loans pursuant to the Additional Term B-2 Commitment).

 

Section 4.                                           Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page to this Amendment by telecopier or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment.

 

Section 5.                                           Applicable Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

Section 6.                                           Headings.  Section and Subsection headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose or be given any substantive effect.

 

Section 7.                                           Effect of Amendment.  Except as expressly set forth herein, (i) this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders, the Administrative Agent or any other Agent, in each case under the Credit Agreement or any other Loan Document, and (ii) shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of either such agreement or any other Loan Document.  Each and every term, condition, obligation, covenant and agreement contained in the Credit Agreement or any other Loan Document is hereby ratified and re-affirmed in all respects and shall continue in full force and effect.  Each Loan Party reaffirms its obligations under the Loan Documents to which it is party and the validity of the Liens granted by it pursuant to the Collateral Documents.  This Amendment shall constitute a Loan Document for purposes of the Credit Agreement and from and after the Amendment No. 5 Effective Date, all references to the Credit Agreement in any Loan Document and all references in the Credit Agreement to

 

3

 

“this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, shall, unless expressly provided otherwise, refer to the Credit Agreement as amended by this Amendment.  Each of the Loan Parties hereby (i) consents to this Amendment and the Additional Term B-2 Joinder Agreement, (ii) confirms that all obligations of such Loan Party under the Loan Documents to which such Loan Party is a party shall continue to apply to the Credit Agreement as amended hereby and by the Additional Term B-2 Joinder Agreement (iii) confirms and reaffirms its Guarantee of the Obligations (including obligations in respect of the Term B-2 Loans after giving effect to this Amendment) and (iv) agrees that all security interests granted by it pursuant to any Loan Document shall secure the Credit Agreement as amended by this Amendment and the Additional Term B-2 Joinder Agreement.

 

Section 8.                                           Submission To Jurisdiction; Waivers. Each of the parties hereto hereby irrevocably and unconditionally agrees that Section 11.14 of the Credit Agreement is incorporated herein mutatis mutandis.

 

Section 9.                                           No Novation. Each of the parties hereto irrevocably and unconditionally agrees that this Amendment shall not be deemed to evidence or result in a novation or repayment and reborrowing of the Obligations under the Credit Agreement.

 

Section 10.                                    FATCA. For purposes of determining withholding taxes under FATCA (as defined in Exhibit A), from and after the Amendment No. 5 Effective Date, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Term B-2 Loans as not qualifying as grandfathered obligations within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

 

[The remainder of this page is intentionally left blank]

 

4

 

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

 

	
 
    	
THE CONTAINER   STORE, INC., as Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jodi Taylor
    
	
 
    	
 
    	
Name:
    	
Jodi Taylor
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
THE CONTAINER STORE   GROUP, INC.,
    
	
 
    	
TCS GIFT CARD SERVICES,   LLC,
    
	
 
    	
each as a Guarantor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jodi Taylor
    
	
 
    	
 
    	
Name:
    	
Jodi Taylor
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    

 

[Signature Page to Amendment]

 

5

 

	
 
    	
JPMORGAN CHASE BANK,   N.A.,
    
	
 
    	
as Administrative Agent   and Collateral Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gregory T. Margin
    
	
 
    	
 
    	
Name: 
    	
Gregory T. Margin
    
	
 
    	
 
    	
Title: 
    	
Authorized Signer
    

 

[Signature Page to Amendment]

 

6

 

EXHIBIT A

 

CREDIT AGREEMENT

 

$300,000,000272,500,000

 

Dated as of April 6, 2012,

 

as amended by Amendment No. 1 on April 8, 2013,

as amended by Amendment No. 2 on November 27, 2013,

as amended by Amendment No. 3 on May 20, 2016,

as amended by Amendment No. 4 on August 18, 2017,

and as further amended by Amendment No. 45 on August 18, 2017September 14, 2018,

 

among

 

THE CONTAINER STORE, INC., 
 as Borrower,

 

THE GUARANTORS PARTY HERETO

 

JPMORGAN CHASE BANK, N.A.,
 as Administrative Agent and Collateral Agent,

 

BARCLAYS BANK PLC,
 MORGAN STANLEY SENIOR FUNDING, INC.

 

and

 

WELLS FARGO BANK, N.A.,
 as Co-Documentation Agents,

 

and

 

THE OTHER LENDERS PARTY HERETO

 

J.P. MORGAN SECURITIES LLC,
 BARCLAYS BANK PLC,
 MORGAN STANLEY SENIOR FUNDING, INC.

 

and

 

WELLS FARGO SECURITIES, LLC,
 as Joint Lead Arrangers and Joint Bookrunning Managers,
 as Joint Lead Arrangers and Joint Bookrunning Managers for Amendment No. 1

and as Joint Lead Arrangers and Joint Bookrunning Managers for Amendment No. 2,

 

and

 

JPMORGAN CHASE BANK, N.A.,

as Lead Arranger and Bookrunning Manager for Amendment No. 4

and as Lead Arranger and Bookrunning Manager for Amendment No. 5

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE I
    	
 
    
	
 
    	
DEFINITIONS AND   ACCOUNTING TERMS
    	
 
    
	
 
    	
 
    	
 
    
	
1.01        Defined Terms
    	
1
    
	
1.02        Other Interpretive Provisions
    	
3537
    
	
1.03        Accounting Terms
    	
3638
    
	
1.04        Rounding
    	
3638
    
	
1.05        Times of Day
    	
3638
    
	
1.06        Senior Debt
    	
3638
    
	
1.07        Available Amount Transactions
    	
3638
    
	
1.08        Pro Forma Calculations
    	
3638
    
	
1.09        Interest Rates
    	
39
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE II
    	
 
    
	
 
    	
THE COMMITMENTS   AND BORROWINGS
    	
 
    
	
 
    	
 
    	
 
    
	
2.01        The Loans
    	
3739
    
	
2.02        Borrowings, Conversions and   Continuations of Loans
    	
3840
    
	
2.03        Prepayment
    	
3941
    
	
2.04        Termination or Reduction of Commitments
    	
4547
    
	
2.05        Repayment of Loans
    	
4547
    
	
2.06        Interest
    	
4548
    
	
2.07        Fees
    	
4648
    
	
2.08        Computation of Interest and Fees
    	
4648
    
	
2.09        Evidence of Debt
    	
4648
    
	
2.10        Payments Generally; Administrative   Agent’s Clawback
    	
4749
    
	
2.11        Sharing of Payments by Lenders
    	
4850
    
	
2.12        Incremental Term Loan Commitments
    	
4951
    
	
2.13        Extended Term Loans
    	
5052
    
	
2.14        Loan Repricing Protection
    	
5254
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE III
    	
 
    
	
 
    	
TAXES, YIELD   PROTECTION AND ILLEGALITY
    	
 
    
	
 
    	
 
    	
 
    
	
3.01        Taxes
    	
5254
    
	
3.02        Illegality
    	
5456
    
	
3.03        Inability to Determine Rates
    	
5456
    
	
3.04        Increased Costs; Reserves on LIBO Rate   Loans
    	
5557
    
	
3.05        Compensation for Losses
    	
5659
    
	
3.06        Mitigation Obligations; Replacement of   Lenders
    	
5759
    
	
3.07        Survival
    	
5760
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE IV
    	
 
    
	
 
    	
CONDITIONS   PRECEDENT TO BORROWINGS
    	
 
    
	
 
    	
 
    	
 
    
	
4.01        Conditions of Initial Borrowing
    	
5760
    

 

i

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE V
    	
 
    
	
 
    	
REPRESENTATIONS   AND WARRANTIES
    	
 
    
	
 
    	
 
    	
 
    
	
5.01        Existence, Qualification and Power
    	
5962
    
	
5.02        Authorization; No Contravention
    	
5962
    
	
5.03        Governmental Authorization; Other   Consents
    	
6062
    
	
5.04        Binding Effect
    	
6063
    
	
5.05        Financial Statements; No Material   Adverse Effect; No Internal Control Event
    	
6063
    
	
5.06        Litigation
    	
6063
    
	
5.07        Ownership of Property; Liens;   Investments
    	
6163
    
	
5.08        Environmental Matters
    	
6164
    
	
5.09        Taxes
    	
6265
    
	
5.10        ERISA Compliance
    	
6265
    
	
5.11        Subsidiaries; Equity Interests; Loan   Parties
    	
6366
    
	
5.12        Margin Regulations; Investment Company   Act
    	
6366
    
	
5.13        Disclosure
    	
6366
    
	
5.14        Compliance with Laws
    	
6466
    
	
5.15        Intellectual Property; Licenses, Etc.
    	
6466
    
	
5.16        Solvency
    	
6467
    
	
5.17        Casualty, Etc.
    	
6467
    
	
5.18        Labor Matters
    	
6467
    
	
5.19        Collateral Documents
    	
6567
    
	
5.20        USA PATRIOT Act
    	
6568
    
	
5.21        Plan Assets
    	
68
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE VI
    	
 
    
	
 
    	
AFFIRMATIVE   COVENANTS
    	
 
    
	
 
    	
 
    	
 
    
	
6.01        Financial Statements and Other Reports
    	
6568
    
	
6.02        Certificates; Other Information
    	
6669
    
	
6.03        Notices
    	
6871
    
	
6.04        Payment of Obligations
    	
6972
    
	
6.05        Preservation of Existence, Etc.
    	
6972
    
	
6.06        Maintenance of Properties
    	
6972
    
	
6.07        Maintenance of Insurance
    	
7072
    
	
6.08        Compliance with Laws
    	
7174
    
	
6.09        Books and Records
    	
7174
    
	
6.10        Inspection Rights
    	
7174
    
	
6.11        Use of Proceeds
    	
7174
    
	
6.12        Covenant to Guarantee Obligations and   Give Security
    	
7274
    
	
6.13        Further Assurances
    	
7376
    
	
6.14        Lenders Meetings
    	
7476
    
	
6.15        Designation as Senior Debt
    	
7476
    
	
6.16        Maintenance of Ratings
    	
7477
    
	
6.17        Designation of Subsidiaries
    	
7477
    
	
6.18        Post-Closing Matters
    	
7477
    

 

ii

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE VII
    	
 
    
	
 
    	
NEGATIVE   COVENANTS
    	
 
    
	
 
    	
 
    	
 
    
	
7.01        Liens
    	
7577
    
	
7.02        Indebtedness
    	
7779
    
	
7.03        Investments
    	
7881
    
	
7.04        Fundamental Changes
    	
8184
    
	
7.05        Dispositions
    	
8284
    
	
7.06        Restricted Payments
    	
8385
    
	
7.07        Change in Nature of Business
    	
8487
    
	
7.08        Transactions with Affiliates
    	
8587
    
	
7.09        Burdensome Agreements
    	
8688
    
	
7.10        Amendments of Material Indebtedness
    	
8689
    
	
7.11        Accounting Changes
    	
8789
    
	
7.12        Prepayments, Etc. of Indebtedness
    	
8789
    
	
7.13        Holding Company
    	
8790
    
	
7.14        Sale and Leaseback Transactions
    	
8790
    
	
7.15        Financial Covenant
    	
8790
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE VIII
    	
 
    
	
 
    	
EVENTS OF   DEFAULT AND REMEDIES
    	
 
    
	
 
    	
 
    	
 
    
	
8.01        Events of Default
    	
8890
    
	
8.02        Remedies upon Event of Default
    	
9092
    
	
8.03        Application of Funds
    	
9093
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE IX
    	
 
    
	
 
    	
ADMINISTRATIVE   AGENT
    	
 
    
	
 
    	
 
    	
 
    
	
9.01        Appointment and Authority
    	
9194
    
	
9.02        Rights as a Lender
    	
9194
    
	
9.03        Exculpatory Provisions
    	
9294
    
	
9.04        Reliance by Agents
    	
9295
    
	
9.05        Delegation of Duties
    	
9395
    
	
9.06        Resignation of Agents
    	
9396
    
	
9.07        Non-Reliance on Agents and Other   Lenders
    	
9396
    
	
9.08        No Other Duties, Etc.
    	
9496
    
	
9.09        Administrative Agent May File   Proofs of Claim
    	
9497
    
	
9.10        Collateral and Guaranty Matters
    	
9497
    
	
9.11        Notice of Transfer
    	
9598
    
	
9.12        Agency for Perfection
    	
9598
    
	
9.13        Indemnification of Agents
    	
9598
    
	
9.14        Withholding Tax
    	
9598
    
	
9.15        Relation Among Lenders
    	
9698
    
	
9.16        Certain ERISA   Matters
    	
99
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE X
    	
 
    
	
 
    	
CONTINUING   GUARANTY
    	
 
    
	
 
    	
 
    	
 
    
	
10.01      Guaranty
    	
96100
    
	
10.02      Rights of Lenders
    	
96100
    

 

iii

 

	
 
    	
Page
    
	
10.03      Certain Waivers
    	
97100
    
	
10.04      Obligations Independent
    	
97101
    
	
10.05      Subrogation
    	
97101
    
	
10.06      Termination; Reinstatement
    	
97101
    
	
10.07      Subordination
    	
98101
    
	
10.08      Stay of Acceleration
    	
98102
    
	
10.09      Condition of Borrower
    	
98102
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE XI
    	
 
    
	
 
    	
MISCELLANEOUS
    	
 
    
	
 
    	
 
    	
 
    
	
11.01      Amendments, Etc.
    	
98102
    
	
11.02      Notices; Effectiveness; Electronic   Communications
    	
100104
    
	
11.03      No Waiver; Cumulative Remedies
    	
102106
    
	
11.04      Expenses; Indemnity; Damage Waiver
    	
102106
    
	
11.05      Payments Set Aside
    	
104108
    
	
11.06      Successors and Assigns
    	
104108
    
	
11.07      Treatment of Certain Information;   Confidentiality
    	
108112
    
	
11.08      Right of Setoff
    	
109113
    
	
11.09      Interest Rate Limitation
    	
109113
    
	
11.10      Counterparts; Integration; Effectiveness
    	
110113
    
	
11.11      Survival of Representations and   Warranties
    	
110114
    
	
11.12      Severability
    	
110114
    
	
11.13      Replacement of Lenders
    	
110114
    
	
11.14      Governing Law; Jurisdiction; Etc.
    	
111115
    
	
11.15      WAIVER OF JURY TRIAL
    	
112116
    
	
11.16      No Advisory or Fiduciary Responsibility
    	
112116
    
	
11.17      USA PATRIOT Act Notice
    	
113116
    
	
11.18      No Strict Construction
    	
113117
    
	
11.19      Attachments
    	
113117
    
	
11.20      Intercreditor Agreement
    	
113117
    
	
11.21      Acknowledgement and Consent to Bail-In   of EEA Financial Institutions. Notwithstanding anything to the   contrary in any Loan   Document or in any other agreement, arrangement or understanding among any   such parties, each party hereto acknowledges that any liability of any EEA   Financial Institution arising under any Loan Document may be subject to the   write-down and conversion powers of an EEA Resolution Authority and agrees   and consents to, and acknowledges and agrees to be bound by:
    	
113117
    
	
 
    	
 
    
	
SIGNATURES
    	
S-1
    

 

SCHEDULES

 

	
2.01
    	
 
    	
Commitments
    
	
5.01
    	
 
    	
Organization   Information
    
	
5.07(c)
    	
 
    	
Owned Real Estate
    
	
5.07(d)(i)
    	
 
    	
Leased Real Estate   (Lessee)
    
	
5.07(d)(ii)
    	
 
    	
Leased Real Estate   (Lessor)
    
	
5.07(e)
    	
 
    	
Existing Investments
    
	
5.11
    	
 
    	
Subsidiaries and Other   Equity Investments
    
	
5.15
    	
 
    	
Intellectual Property   Rights
    

 

iv

 

	
6.12
    	
 
    	
Guarantors
    
	
7.01(b)
    	
 
    	
Existing Liens
    
	
7.02
    	
 
    	
Existing Indebtedness
    
	
7.09
    	
 
    	
Burdensome Agreements
    
	
11.02
    	
 
    	
Administrative Agent’s Office,   Certain Addresses for Notices
    

 

EXHIBITS

 

Form of

 

	
A-1
    	
 
    	
Committed Loan Notice
    
	
A-2
    	
 
    	
Conversion/Continuation   Notice
    
	
B
    	
 
    	
Discounted Prepayment   Option Notice
    
	
C
    	
 
    	
Intercreditor Agreement
    
	
D
    	
 
    	
Compliance Certificate
    
	
E
    	
 
    	
Form of Note
    
	
F
    	
 
    	
Assignment and Assumption
    
	
G
    	
 
    	
Lender Participation   Notice
    
	
H-1
    	
 
    	
Perfection Certificate
    
	
H-2
    	
 
    	
Perfection Certificate   Supplement
    
	
I
    	
 
    	
Discounted Voluntary   Prepayment Notice
    
	
J-1
    	
 
    	
U.S. Tax Certificate For Foreign Lenders That Are Not   Partnerships For U.S. Federal Income Tax Purposes
    
	
J-2
    	
 
    	
U.S. Tax Certificate For Foreign Lenders That Are Partnerships   For U.S. Federal Income Tax Purposes
    
	
J-3
    	
 
    	
U.S.   Tax Certificate For Foreign Participants That Are Not Partnerships For U.S.   Federal Income Tax Purposes
    
	
J-4
    	
 
    	
U.S. Tax Certificate For Foreign Participants That Are   Partnerships For U.S. Federal Income Tax Purposes
    

 

v

 

CREDIT AGREEMENT

 

This CREDIT AGREEMENT (“Agreement”) is entered into as of April 6, 2012 (and as amended by Amendment No. 1 on April 8, 2013, as amended by Amendment No. 2 on November 27, 2013, as amended by Amendment No. 3 on May 20, 2016, as amended by Amendment No. 4 on August 18, 2017, and as further amended by Amendment No. 45 on August 18, 2017September 14, 2018), among THE CONTAINER STORE, INC., a Texas corporation (the “Borrower”), the Guarantors party hereto, each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”) and JPMORGAN CHASE BANK, N.A. (“JPMCB”), as Administrative Agent and Collateral Agent.

 

PRELIMINARY STATEMENTS:

 

The proceeds of the Term B-12 Loans borrowed in respect of the Additional Term B-12 Commitment shall be used on or about the Amendment No. 45 Effective Date to repay a like aggregate principal amount of Term B-1 Loans that are not Converted Term B-1 Loans.

 

In consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:

 

ARTICLE I
 DEFINITIONS AND ACCOUNTING TERMS

 

1.01        Defined Terms.  As used in this Agreement, the following terms shall have the meanings set forth below:

 

“ABL Credit Agreement” means the credit agreement governing the ABL Facility.

 

“ABL Facility” means the $75.0 million senior secured revolving facility dated as of the Closing Date among the Borrower, the guarantors party thereto, the lenders party thereto and JPMorgan, as administrative agent and collateral agent, as it may be amended or modified from time to time, including amendments increasing the principal amount of revolving loans available thereunder.

 

“ABL Loan Documents” means the credit agreement governing the ABL Facility, all mortgages and other security documents thereunder and the Notes issued thereunder.

 

“ABL Obligations” has the meaning specified in the Intercreditor Agreement.

 

“ABL Priority Collateral” has the meaning specified in the Intercreditor Agreement.

 

“Acceptable Discount” has the meaning provided in Section 2.03(d)(iii).

 

“Acceptance Date” has the meaning provided in Section 2.03(d)(ii).

 

“Additional Credit Extension Amendment” means an amendment to this Agreement (which may, at the option of the Administrative Agent, be in the form of an amendment and restatement of this Agreement) providing for any Incremental Term Loans, Replacement Loans or Extended Term Loans which shall be consistent with the applicable provisions of this Agreement relating to Incremental Term Loans, Replacement Loans or Extended Term Loans and otherwise reasonably satisfactory to the Administrative Agent and the Borrower.

 

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“Additional Term B Commitment” means, with respect to the Additional Term B Lender, its commitment to make a Term B Loan on the Amendment No. 2 Effective Date in an amount equal to $329,438,750 minus the aggregate principal amount of the Converted Initial Loans of all Lenders.

 

“Additional Term B Joinder Agreement” means the joinder agreement, dated the Amendment No. 2 Effective Date, by and among the Borrower, the Administrative Agent and the Additional Term B Lender.

 

“Additional Term B Lender” means the Person identified as such in the Additional Term B Joinder Agreement.

 

“Additional Term B-1 Commitment” means, with respect to the Additional Term B-1 Lender, its commitment to make a Term B-1 Loan on the Amendment No. 4 Effective Date in an amount equal to the excess of (x) the amount of the Term B-1 loans outstanding immediately after giving effect to Amendment No. 4 on the Amendment No. 4 Effective Date over (y) the aggregate principal amount of Converted Term B Loans.

 

“Additional Term B-1 Joinder Agreement” means the joinder agreement, dated the Amendment No. 4 Effective Date, by and among the Borrower, the Administrative Agent and the Additional Term B-1 Lender.

 

“Additional Term B-1 Lender” means the Person identified as such in the Additional Term B-1 Joinder Agreement.

 

“Additional Term B-2 Commitment” means, with respect to the Additional Term B-2 Lender, its commitment to make a Term B-2 Loan on the Amendment No. 5 Effective Date in an amount equal to the excess of (x) $272,500,000 over (y) the aggregate principal amount of Converted Term B-1 Loans.

 

“Additional Term B-2 Joinder Agreement” means the joinder agreement, dated the Amendment No. 5 Effective Date, by and among the Borrower, the Administrative Agent and the Additional Term B-2 Lender.

 

“Additional Term B-2 Lender” means the Person identified as such in the Additional Term B-2 Joinder Agreement.

 

“Administrative Agent” means JPMCB in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent.

 

“Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 11.02, or such other address or account as the Administrative Agent may from time to time notify the Borrower and the Lenders.

 

“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.

 

“Affiliate” means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

 

“Agent Parties” has the meaning specified in Section 11.02(c).

 

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“Agents” means, collectively, the Administrative Agent and the Collateral Agent.

 

“Aggregate Commitments” means the sum of the Commitments of all the Lenders.  As of the Closing Date, the Aggregate Commitments are $275.0 million.

 

“Agreement” has the meaning specified in the introductory paragraph hereto, as amended, restated, modified or supplemented from time to time in accordance with the terms hereof.

 

“Amendment No. 1” means Amendment No. 1 to this Agreement, dated as of April 8, 2013, by and among the Borrower, the Guarantors, the Administrative Agent, the Collateral Agent and the Lenders party thereto.

 

“Amendment No. 1 Consenting Lender” means each Lender that provided the Administrative Agent with a counterpart to Amendment No. 1 executed by such Lender.

 

“Amendment No. 1 Effective Date” has the meaning specified in Amendment No. 1.

 

“Amendment No. 1 Lead Arrangers” means J.P. Morgan Securities LLC, Barclays Bank PLC, Morgan Stanley Senior Funding, Inc. and Wells Fargo Securities, LLC, in their capacities as joint lead arrangers and joint bookrunning managers for Amendment No. 1.

 

“Amendment No. 2” means Amendment No. 2 to this Agreement, dated as of November 27, 2013, by and among the Borrower, the Guarantors, the Administrative Agent, the Collateral Agent and the Lenders party thereto.

 

“Amendment No. 2 Consenting Lender” means each Lender that provided the Administrative Agent with a counterpart to Amendment No. 2 executed by such Lender.

 

“Amendment No. 2 Effective Date” has the meaning specified in Amendment No. 2.

 

“Amendment No. 2 Lead Arrangers” means J.P. Morgan Securities LLC, Barclays Bank PLC, Morgan Stanley Senior Funding, Inc. and Wells Fargo Securities, LLC, in their capacities as joint lead arrangers and joint bookrunning managers for Amendment No. 2.

 

“Amendment No. 4” means Amendment No. 4 to this Agreement, dated as of August 18, 2017, by and among the Borrower, the Guarantors, the Administrative Agent, the Collateral Agent and the Lenders party thereto.

 

“Amendment No. 4 Consenting Lender” means each Lender that provided the Administrative Agent with a counterpart to Amendment No. 4 executed by such Lender.

 

“Amendment No. 4 Effective Date” has the meaning specified in Amendment No. 4.

 

“Amendment No. 4 Lead Arranger” means JPMorgan Chase Bank, N.A., in its capacity as lead arranger and bookrunning manager for Amendment No. 4.

 

“Amendment No. 5” means Amendment No. 5 to this Agreement, dated as of September 14, 2018, by and among the Borrower, the Guarantors, the Administrative Agent, the Collateral Agent and the Lenders party thereto.

 

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“Amendment No. 5 Consenting Lender” means each Lender that provided the Administrative Agent with a counterpart to Amendment No. 5 executed by such Lender.

 

“Amendment No. 5 Effective Date” has the meaning specified in Amendment No. 5.

 

“Amendment No. 5 Lead Arranger” means JPMorgan Chase Bank, N.A., in its capacity as lead arranger and bookrunning manager for Amendment No. 5.

 

“Applicable Discount” has the meaning provided in Section 2.03(d)(iii).

 

“Applicable Margin” means (a) prior to the date of delivery of a Compliance Certificate with respect to the Fiscal Year of Holdings ending March 30, 2019 (i) in the case of LIBO Rate Loans, 7.005.00% per annum and (ii) in the case of Base Rate Loans, 6.00% per annum. 4.00% per annum and (b) from and after the date of delivery of a Compliance Certificate with respect to the Fiscal Year of Holdings ending March 30, 2019, the Applicable Margin determined in accordance with the grid set forth below based on the Consolidated Leverage Ratio as of the last day of the most recent Fiscal Quarter or Fiscal Year for which a Compliance Certificate has been delivered to the Administrative Agent:

 

	
Pricing Level
    	
 
    	
Consolidated Leverage Ratio
    	
 
    	
LIBO Rate Loans
    	
 
    	
Base Rate Loans
    	
 
    
	
I
    	
 
    	
Greater than   2.75 to 1.00
    	
 
    	
5.00
    	
%
    	
4.00
    	
%
    
	
II
    	
 
    	
Less than or   equal to 2.75 to 1.00
    	
 
    	
4.75
    	
%
    	
3.75
    	
%
    

 

For purposes of determining the Applicable Margin:

 

(a)           any increase or decrease in the Applicable Margin shall be effective on the date on which the Compliance Certificate evidencing such computation is delivered hereunder.  If a certificate is not delivered when due in accordance with this Agreement, then the rates in Pricing Level I shall apply as of the first Business Day after the date on which such certificate was required to have been delivered and shall remain in effect until the date on which such certificate is delivered.

 

(b)           If, as a result of any restatement of or other adjustment to the financial statements of Holdings or for any other reason, Holdings or the Lenders determine that (i) the Consolidated Leverage Ratio as calculated in any Compliance Certificate was inaccurate and (ii) a proper calculation of the Consolidated Leverage Ratio would have resulted in higher pricing for such period, the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent for the account of the applicable Lenders, promptly on demand by the Administrative Agent, an amount equal to the excess of the amount of interest should have been paid for such period over the amount of interest actually paid for such period.

 

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

 

“Arrangers” means J.P. Morgan Securities LLC, Barclays Bank PLC, Morgan Stanley Senior Funding, Inc. and Wells Fargo Securities, LLC, in their capacities as joint lead arrangers and joint bookrunning managers on the Closing Date, the Amendment No. 1 Lead Arrangers, the Amendment No. 2 Lead Arrangers, the Amendment No. 4 Lead Arranger and the Amendment No. 45 Lead Arranger.

 

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“Assignee Group” means two or more Eligible Assignees that are Affiliates of one another or two or more Approved Funds managed by the same investment advisor.

 

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 11.06(b)(iii)), and accepted by the Administrative Agent, in substantially the form of Exhibit F or any other form approved by the Administrative Agent.

 

“Attributable Indebtedness” means, on any date, (a) in respect of any Capital Lease Obligations of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease or similar payments under the relevant lease or other applicable agreement or instrument that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease or other agreement or instrument were accounted for as a Capital Lease Obligation and (c) all Synthetic Debt of such Person.

 

“Audited Financial Statements” means the audited Consolidated balance sheets and related statements of income, stockholders’ equity and cash flows for the 2008, 2009 and 2010 Fiscal Years for Holdings ended February 28, 2009, February 27, 2010 and February 26, 2011 (including its Consolidated Subsidiaries) (in each case prepared in accordance with GAAP).

 

“Available Amount” means, at any time (the “Reference Date”), the sum of:

 

(a)           an amount equal to (x) the cumulative amount of Excess Cash Flow (which amount shall not be less than zero in any Fiscal Year) for each Fiscal Year of the Borrower ending after the Closing Date minus (y) the portion of such Excess Cash Flow that has been (or is required to be) applied to the prepayment of Loans in accordance with Section 2.03(b)(i) (without regard to any optional prepayment of Loans); plus

 

(b)           the amount of any capital contributions (other than from a Subsidiary) and the Net Cash Proceeds from Qualified Equity Issuances (other than any amount applied pursuant to Section 7.03(k)) received by the Borrower during the period from and including the Business Day immediately following the Closing Date through and including the Reference Date; plus

 

(c)           to the extent the Borrower or a Restricted Subsidiary has made any Investment pursuant to Section 7.03(l), the net amount of any return on such Investment (whether through dividends, distributions, sale, cash repayments of principal, or other disposition of such Investment or the designation of an Unrestricted Subsidiary as a Restricted Subsidiary) actually received by the Borrower or a Restricted Subsidiary from such Investment; minus

 

(d)           the aggregate amount of any Investments made pursuant to Sections 7.03(l), any Restricted Payment made pursuant to Section 7.06(e)(ii) or any payment made pursuant to Section 7.12(d) during the period commencing on the Closing Date and ending on the Reference Date (and, for purposes of this clause (d), without taking account of the intended usage of the Available Amount on such Reference Date in the contemplated transaction).

 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European

 

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Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule

 

“Bank Products” means any services or facilities provided to any Loan Party by any Agent, Lender, Former Lender or any Affiliate of an Agent, Lender or Former Lender (but excluding Cash Management Services) on account of (a) Swap Contracts, (b) purchase cards and (c) merchant services constituting a line of credit.

 

“Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1%, (c) the LIBO Rate for a one month interest period on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that, for the avoidance of doubt, the LIBO Rate for any day shall be based on the rate appearing on the Reuters Screen LIBOR01 Page (or on any successor or substitute page) at approximately 11:00 a.m. London time on such day (without any rounding) and (d) 2.00%.  Any change in the Base Rate due to a change in the Prime Rate, the NYFRB Rate or the LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the LIBO Rate, respectively.

 

“Base Rate Loan” means a Loan that bears interest based on the Base Rate.

 

“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in Section 3(3) of ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code to which Section 4975 of the Code applies, or (c) any Person whose assets include (for purposes of the Plan Asset Regulations or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.

 

“Borrower” has the meaning specified in the introductory paragraph hereto.

 

“Borrower Materials” has the meaning provided in Section 6.02.

 

“Borrowing” means a borrowing consisting of simultaneous Loans of the same Type and, in the case of LIBO Rate Loans, having the same Interest Period made by each of the Lenders pursuant to Section 2.01(a) or Section 2.01(b), as applicable.

 

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the state where the Administrative Agent’s Office is located and, if such day relates to any LIBO Rate Loan, means any such day on which dealings in Dollar deposits are conducted by and between banks in the London interbank market.

 

“Capital Expenditures” means, with respect to any Person for any period, any expenditure in respect of the purchase or other acquisition of any fixed or capital asset (excluding normal replacements and maintenance which are properly charged to current operations) which is, or should be in accordance with GAAP, reflected as a “capital expenditure” in a Consolidated statement of cash flows of such Person for the period in which such expenditure occurs, provided that “Capital Expenditures” shall not include (a) any such expenditures which are contractually required to be, and are, reimbursed to the Loan Parties in cash by landlords with respect to such period of calculation, (b) any such expenditure with the proceeds from any casualty insurance or condemnation or eminent domain, to the extent that the proceeds therefrom are utilized for Capital Expenditures within twelve months of the receipt of such proceeds, (c) any such expenditure with the proceeds or consideration received from any trade in of any Loan Party’s assets, or (d) any such expenditures which constitute a Permitted Acquisition.

 

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“Capital Lease Obligations” means, with respect to any Person, the obligation of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP as in effect on the Closing Date, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP as in effect on the Closing Date.

 

“Cash Equivalents” means any of the following types of Investments, to the extent owned by Holdings, the Borrower, or any of their respective Restricted Subsidiaries:

 

(a)           readily marketable obligations issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof having maturities of not more than 360 days from the date of acquisition thereof; provided that the full faith and credit of the United States of America is pledged in support thereof;

 

(b)           time deposits with, or insured certificates of deposit or bankers’ acceptances of, any commercial bank that (i) (A) is a Lender that offers such deposits, certificates of deposit or bankers’ acceptances in the ordinary course of such Lender’s business or (B) is organized under the laws of the United States of America, any state thereof or the District of Columbia or is the principal banking subsidiary of a bank holding company organized under the laws of the United States of America, any state thereof or the District of Columbia, and is a member of the Federal Reserve System, (ii) issues (or the parent of which issues) commercial paper rated as described in clause (c) of this definition and (iii) has combined capital and surplus of at least $1.0 billion, in each case with maturities of not more than 180 days from the date of acquisition thereof;

 

(c)           commercial paper issued by any Person organized under the laws of any state of the United States of America and rated at least “Prime-1” (or the then equivalent grade) by Moody’s or at least “A-1” (or the then equivalent grade) by S&P, in each case with maturities of not more than 180 days from the date of acquisition thereof;

 

(d)           Investments, classified in accordance with GAAP as current assets of Holdings, the Borrower, or any of their respective Restricted Subsidiaries, in money market investment programs registered under the Investment Company Act of 1940, which are administered by financial institutions that have the highest rating obtainable from either Moody’s or S&P, and the portfolios of which are limited solely to Investments of the character, quality and maturity described in clauses (a), (b) and (c) of this definition; and

 

(e)           in the case of any Foreign Subsidiary, investments of comparable tenor and credit quality to those described in the foregoing clauses (a) through (d) customarily utilized in countries in which such Foreign Subsidiary operates for short term cash management purposes.

 

“Cash Management Services” means any one or more of the following types of services or facilities provided to any Loan Party by any Agent, Lender, Former Lender or any Affiliate of an Agent, Lender or Former Lender:  (a) ACH transactions, (b) cash management services, including, without limitation, controlled disbursement services, treasury, depository, overdraft, and electronic funds transfer services, (c) foreign exchange facilities, (d) credit or debit cards, and (e) merchant services not constituting a Bank Product.

 

“CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980.

 

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“CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability Information System maintained by the U.S. Environmental Protection Agency.

 

“CFC” means a Person that is a controlled foreign corporation under Section 957 of the Code.

 

“Change in Law” means the occurrence, after the date of this Agreement, of any of the following:  (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.

 

“Change of Control” means an event or series of events by which:

 

(a)           any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such Person or its subsidiaries, and any Person acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan that in each case is not acting in concert with another Person) other than the Permitted Holders becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly, of the greater of (x) 35% or more of the equity securities of Holdings entitled to vote for members of the board of directors or equivalent governing body of Holdings on a fully-diluted basis (and taking into account all such securities that such “person” or “group” has the right to acquire pursuant to any option right) and (y) a percentage that is greater than the percentage of the equity securities of Holdings entitled to vote for members of the board of directors or equivalent governing body of Holdings that is then beneficially owned by the Permitted Holders; or

 

(b)           Holdings shall cease, directly or indirectly, to own and control legally and beneficially all of the Equity Interests in the Borrower; or

 

(c)           a “change of control” or any comparable term under, and as defined in, the ABL Loan Documents or any other instrument, document or agreement governing Material Indebtedness shall have occurred, in any case that gives the holders thereof the right to require Holdings or any of its Subsidiaries to repurchase, offer to repurchase or immediately repay such Indebtedness.

 

“Class” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are InitialTerm B-1 Loans, Term B-12 Loans, Incremental Term Loans of any series, Extended Term Loans of any series or Replacement Loans of any series.

 

“Closing Date” means April 6, 2012.

 

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

 

“Co-Documentation Agent” means Barclays Bank PLC, Morgan Stanley Senior Funding, Inc. and Wells Fargo Bank, N.A., each in its capacity as co-documentation agent under any of the Loan Documents, or any successor co-documentation agent.

 

“Collateral” means all of the “Collateral” and “Mortgaged Property” or “Trust Property,” as applicable, referred to in the Collateral Documents and all of the other property that is or is intended under the terms of the Collateral Documents to be subject to Liens in favor of the Collateral Agent for the benefit of the Credit Parties.

 

“Collateral Agent” means JPMCB in its capacity as collateral agent under any of the Loan Documents, or any successor collateral agent as provided in Section 9.01(b).

 

“Collateral Documents” means, collectively, the Security Agreement, the Pledge Agreement, the Swedish Pledge Agreement, the Intellectual Property Security Agreement, the Mortgages, the Intercreditor Agreement, each of the Mortgages, collateral assignments, security agreements, pledge agreements, control agreements or other similar agreements delivered to the Collateral Agent pursuant to Section 6.12, and each of the other agreements, instruments or documents that creates or purports to create a Lien in favor of the Collateral Agent for the benefit of the Credit Parties.

 

“Commitment” means, as to each Lender, its obligation to make Loans to the Borrower pursuant to Section 2.01 in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01 under the caption “Commitment” or in the applicable Additional Credit Extension Amendment or opposite the “Commitment” caption or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.  Unless the context shall otherwise require, the term “Commitment” shall include the Incremental Term Loan Commitments, the Additional Term B Commitment, the Additional Term B-1 Commitment and the Additional Term B-12 Commitment.

 

“Committed Loan Notice” means a notice of a Borrowing, which, if in writing, shall be substantially in the form of Exhibit A-l.

 

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

 

“Compliance Certificate” means a certificate substantially in the form of Exhibit D with such modifications thereto as may be mutually agreed by the Administrative Agent and the Borrower to reflect the amendments to this Agreement pursuant to Amendment No. 2.

 

“Consolidated” means, when used to modify a financial term, test, statement, or report of a Person, the application or preparation of such term, test, statement or report (as applicable) based upon the consolidation, in accordance with GAAP, of the financial condition or operating results of such Person and its Subsidiaries.

 

“Consolidated EBITDA” means, at any date of determination, an amount equal to Consolidated Net Income of Holdings and its Restricted Subsidiaries for the most recently completed Measurement Period plus (a) the following to the extent deducted in calculating Consolidated Net Income for such Measurement Period:  (i) Consolidated Interest Charges, (ii) the provision for Federal, state, local and foreign income taxes payable, (iii) depreciation and amortization expense, (iv) non-cash stock

 

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compensation paid to officers, directors, employees or consultants during such Measurement Period, (v) all non-cash losses from Dispositions during such Measurement Period, other than Dispositions of inventory in the ordinary course of business, (vi) Transaction Expenses, (vii) expenses incurred in connection with the prepayment, amendment, or refinancing of Indebtedness during such Measurement Period, (viii) non-cash expenses related to LIFO/LCM reserves and non-cash rent, (ix) any non-cash purchase accounting adjustments made in connection with any acquisition permitted by this Agreement, (x) Management Fees for such Measurement Period, (xi) expenses incurred during such Measurement Period in connection with closed stores, store closings, and store relocations in an amount not to exceed $5.0 million in the aggregate in such Measurement Period, (xii) all transactional costs, expenses and charges payable to non-Affiliated third parties and made at the time of, and in connection with, any acquisition (whether or not consummated) in an amount not to exceed $5.0 million in the aggregate during such Measurement Period, (xiii) any expenses or charges related to any issuance of Equity Interests, Investment, acquisition, disposition, recapitalization or the incurrence or repayment of Indebtedness (including with respect to Indebtedness, a refinancing thereof, whether or not successful), in each case permitted to be incurred or made hereunder and any amendment or modification to the terms of any such transactions, including such fees, expenses or charges related to the Transaction, (xiv) non-cash losses (minus any non-cash gains) with respect to Swap Contracts during such Measurement Period, (xv) extraordinary, unusual or non-recurring expenses, charges or losses during such period (as determined by the Borrower in good faith, it being understood that Item 10(e) of Regulation S-K under the Securities Act shall not constitute a limitation on any such determination), and (xvi) pre-opening and grand opening expenses in an amount not to exceed $10.0 million in such Measurement Period; and minus (b) (i) to the extent included in calculating Consolidated Net Income for such Measurement Period, all non-recurring, non-cash items increasing Consolidated Net Income (excluding any non-cash items that result in an accrual of a reserve for cash items in any future period) (in each case of or by Holdings and its Restricted Subsidiaries for such Measurement Period), and (ii) non-cash gains from Dispositions other than Dispositions of inventory in the ordinary course of business, provided that Consolidated EBITDA shall be deemed to be $24,906,050, $7,621,086, $16,544,906 and $21,820,837 for the Fiscal Quarters ended February 26, 2011, May 28, 2011, August 27, 2011 and November 26, 2011, respectively (without pro forma adjustments for the acquisition of The Container Store Services, LLC).

 

“Consolidated Interest Charges” means, for any Measurement Period, Consolidated interest expense (net of interest income) of Holdings and its Restricted Subsidiaries determined in accordance with GAAP.

 

“Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a) Total Debt as of such date to (b) Consolidated EBITDA for the most recently completed Measurement Period.

 

“Consolidated Net Income” means, at any date of determination, the net income (or loss) of Holdings and its Restricted Subsidiaries on a Consolidated basis for the most recently completed Measurement Period; provided that Consolidated Net Income shall exclude (a) extraordinary non-cash gains and extraordinary non-cash losses for such Measurement Period, (b) the net income of any Subsidiary during such Measurement Period to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary of such income is not permitted by operation of the terms of its Organization Documents or any agreement, instrument or Law applicable to such Subsidiary during such Measurement Period (provided that this clause (b) shall not, with respect to any Foreign Subsidiary, exclude income that can only be distributed following the adoption of the relevant annual accounts or Consolidated annual accounts for such Foreign Subsidiary’s Fiscal Year), except that Consolidated Net Income shall be reduced to the extent of any equity held by Holdings or any of its Restricted Subsidiaries in any net loss of any such Subsidiary for such Measurement Period, (c) the income (or loss) of any Person during such Measurement Period and accrued prior to the date it becomes a Subsidiary of Holdings or its

 

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Restricted Subsidiaries or is merged into or Consolidated with Holdings or a Restricted Subsidiary or that Person’s assets are acquired by Holdings or any of its Restricted Subsidiaries, (d) any income (or loss) for such period of any Person if such Person is not a Restricted Subsidiary of Holdings, except that Consolidated Net Income shall be increased by the aggregate amount of cash actually distributed by such Person during such Measurement Period to Holdings or a Restricted Subsidiary as a dividend or other distribution (and in the case of a dividend or other distribution to a Restricted Subsidiary which is not a Loan Party, such Restricted Subsidiary is not precluded from further distributing such amount to the Borrower as described in clause (b) of this proviso), and (e) the cumulative effect of changes in accounting principles.

 

“Consolidated Secured Leverage Ratio” means, as of any date of determination, the ratio of (a) Secured Debt as of such date to (b) Consolidated EBITDA for the most recently completed Measurement Period.

 

“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.

 

“Conversion/Continuation Notice” means a notice of (a) a conversion of Loans from one Type to the other, or (b) a continuation of LIBO Rate Loans, pursuant to Section 2.02(c), which, if in writing, shall be substantially in the form of Exhibit A-2.

 

“Converted Initial Loan” means each Initial Loan held by an Amendment No. 2 Consenting Lender on the Amendment No. 2 Effective Date immediately prior to the effectiveness of Amendment No. 2 (or, if less, the amount notified to such Lender by the Administrative Agent prior to the Amendment No. 2 Effective Date).

 

“Converted Term B Loan” means each Term B Loan held by an Amendment No. 4 Consenting Lender on the Amendment No. 4 Effective Date immediately prior to the effectiveness of Amendment No. 4.

 

“Converted Term B-1 Loan” means each Term B-1 Loan held by an Amendment No. 5 Consenting Lender on the Amendment No. 5 Effective Date immediately prior to the effectiveness of Amendment No. 5 indicating that such Lender wishes to convert its Term B-1 Loans to Term B-2 Loans (or, if less, the amount notified to such Lender by the Administrative Agent prior to the Amendment No. 5 Effective Date).

 

“Credit Party” means, individually, and “Credit Parties” means, collectively, the following:  (a) the Lenders and their Affiliates, (b) the Agents, each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to Section 9.05, (c) the Arrangers, (d) the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document, (e) any other Person to whom Obligations under this Agreement and other Loan Documents are owing and (f) the successors and assigns of each of the foregoing.

 

“Credit Party Expenses” means, without limitation, (a) all reasonable and documented in reasonable detail out-of-pocket expenses incurred by the Agents, the Arrangers, the Co-Documentation Agents and their respective Affiliates, in connection with this Agreement and the other Loan Documents,

 

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including without limitation (i) the reasonable and documented in reasonable detail fees, charges and disbursements of (A) counsel for the Agents and the Arrangers, provided that the Agents and the Arrangers shall be entitled to be reimbursed for no more than one counsel and, if reasonably necessary, for one local counsel in each relevant jurisdiction material to the interest of the Lenders, in each case, selected by the Agent, absent a conflict of interest between any of such Persons where the affected Persons inform the Borrower of such conflict, in which case the affected Persons may engage and be reimbursed for one additional counsel, (B) outside consultants for the Agents, (C) appraisers, and (D) all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of the Obligations and (ii) in connection with (A) the syndication of the credit facilities provided for herein, (B) the preparation, negotiation, administration, management, execution and delivery of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (C) the enforcement or protection of their rights in connection with this Agreement or the Loan Documents or efforts to preserve, protect, collect, or enforce the Collateral, or (D) any workout, restructuring or negotiations in respect of any Obligations and (b) all reasonable and documented in reasonable detail out-of-pocket expenses incurred by the Credit Parties who are not the Agents, the Arrangers, the Co-Documentation Agents or any Affiliate of any of them, after the occurrence and during the continuance of an Event of Default, provided that such Credit Parties shall be entitled to reimbursement for no more than one counsel representing all such Credit Parties (absent a conflict of interest between the Credit Parties, where the affected Credit Parties inform the Borrower of such conflict, in which case the Credit Parties may engage and be reimbursed for one additional counsel).

 

“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

 

“Declined Proceeds” has the meaning specified in Section 2.03(b)(v).

 

“Default” means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

 

“Default Rate” means an interest rate equal to (i) the Base Rate plus (ii) the Applicable Margin applicable to Base Rate Loans plus (iii) 2% per annum; provided, however, that with respect to a LIBO Rate Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Margin) otherwise applicable to such Loan plus 2% per annum.

 

“Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Loans required to be funded by it hereunder within two Business Days of the date required to be funded by it hereunder, unless such Lender notifies the Administrative Agent in writing that such failure is the result of such Lender’s good faith determination that a condition precedent to funding (specifically identified in writing, including, if applicable, by reference to a specific Default) has not been satisfied, (b) has otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two Business Days of the date when due, unless the subject of a good faith dispute, or (c) has (i) become the subject of a bankruptcy or insolvency proceeding or (ii) become the subject of a Bail-In Action.

 

“Discharge of ABL Obligations” has the meaning specified in the Intercreditor Agreement.

 

“Discounted Prepayment Option Notice” has the meaning provided in Section 2.03(d)(ii).

 

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“Discounted Voluntary Prepayment” has the meaning provided in Section 2.03(d)(i).

 

“Discounted Voluntary Prepayment Notice” has the meaning provided in Section 2.03(d)(v).

 

“Disposition” or “Dispose” means the sale, transfer, license, lease, or other disposition (including any sale and leaseback transaction) of any property (including, without limitation, any Equity Interests or Disqualified Equity Interests of any other Person held by a specified Person) by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith, in each case, resulting in consideration to such Person (including assumption of liabilities) for any such transaction or series of related transactions in excess of $1.0 million.

 

“Disqualified Equity Interests” means any Equity Interests of any Person that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable at the option of the holder thereof), or upon the happening of any event, (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof, in whole or in part, in each case prior to the six month anniversary of the Maturity Date, (b) requires the payment of any cash dividend or any other scheduled payment constituting a return of capital, in each case prior to the six month anniversary of the Maturity Date, or (c) is convertible into or exchangeable for debt securities or for any Equity Interest referred to in clause (a) above, in each case at any time prior to the six month anniversary of the Maturity Date.

 

“Dollar” and “$” mean lawful money of the United States.

 

“Domestic Subsidiary” means any Subsidiary that is organized or existing under the laws of the United States, any state thereof or the District of Columbia.

 

“EEA Financial Institution” means (a) any institution established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent;

 

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution Authority” means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“Eligible Assignee” means (a) a Credit Party or any of its Affiliates; (b) a bank, insurance company, or company engaged in the business of making commercial loans, which Person, together with its Affiliates, has a combined capital and surplus in excess of $250.0 million; (c) an Approved Fund; (d) any Person to whom a Credit Party assigns its rights and obligations under this Agreement as part of an assignment and transfer of such Credit Party’s rights in and to a material portion of such Credit Party’s portfolio of term loan credit facilities and (e) any other Person (other than a natural person) approved by (i) the Administrative Agent and (ii) unless an Event of Default under Section 8.01(a) or 8.01(f) has occurred and is continuing, the Borrower (each such approval not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing, “Eligible Assignee” shall not include a Loan Party or any of the Loan Parties’ Affiliates or Subsidiaries (other than a Sponsor Affiliated Lender).

 

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“Environmental Laws” means any and all Federal, state, local and foreign statutes, laws, regulations, ordinances, rules, common law, judgments, orders, decrees, permits, concessions, grants, franchises or licenses, relating to pollution or the protection of the environment or the Release or threat of Release of any hazardous substances, materials or wastes (including Hazardous Materials) into the environment or human health (to the extent related to exposure to Hazardous Materials), or generation, storage, treatment, transport or handling of any Hazardous Materials.

 

“Environmental Liability” means any liability, whether pending or threatened (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower, any other Loan Party or any of their respective Restricted Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

 

“Environmental Permit” means any permit, approval, identification number, license or other authorization required under any Environmental Law.

 

“Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

 

“Equity Investors” means Holdings, the Sponsor and the Management Stockholders.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

 

“ERISA Affiliate” means any entity under common control with which Holdings or the Borrower would be treated as a single employer within the meaning of Section 414 of the Code or Section 4001(14) of ERISA.

 

“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by Holdings, the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) with respect to any Pension Plan, a failure to satisfy the minimum funding standard under Sections 412 and 430 of the Code or Sections 302 and 303 of ERISA, whether or not waived; (d) a determination that any Pension Plan is, or is expected to be, in “at-risk” status (as defined in Section 303(i)(4) of ERISA or Section 430(i)(4) of the Code); (e) a complete or partial withdrawal (within the meanings of Sections 4203 and 4205 of ERISA) by Holdings, the Borrower or any ERISA Affiliate from a Multiemployer Plan or receipt by Holdings or the Borrower of notice from any Multiemployer Plan that it is insolvent or in reorganization (within the meanings of Sections 4241 and 4245 of ERISA) or in “endangered” or “critical” status (within the meaning of Section 432 of the Code or Section 305 of ERISA); (f) the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination under Section 4041 or 4041A of ERISA, or

 

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the commencement of proceedings by the PBGC to terminate under Section 4042 of ERISA a Pension Plan or Multiemployer Plan; (g) the appointment of a trustee to administer under Section 4042 of ERISA any Pension Plan or Multiemployer Plan; or (h) with respect to any Pension Plan the imposition of a lien or the posting of a bond or other security pursuant to Section 436(f) of the Code or Section 206(g)(5) of ERISA.

 

“Event of Default” has the meaning specified in Section 8.01.  An “Event of Default” shall be deemed to be continuing unless and until that Event of Default has been duly waived as provided in Section 11.01.

 

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

 

“Excess Cash Flow” means, for any Fiscal Year of Holdings, the sum (without duplication) of:

 

(a)                                 the Consolidated Net Income (or loss) of Holdings and its Restricted Subsidiaries for such Fiscal Year, adjusted (i) to exclude any gains or losses attributable to any events as a result of which a mandatory prepayment (other than from Excess Cash Flow) of the Facility is required and (ii) to subtract the amount, if any, by which taxes paid or required to be paid in cash with respect to such Fiscal Year exceeds the amount of taxes deducted in calculating Consolidated Net Income and to add the amount, if any, by which taxes paid or required to be paid with respect to such Fiscal Year in cash are less than the amount deducted in calculating Consolidated Net Income; plus

 

(b)                                 depreciation, amortization and other non-cash charges or losses deducted in determining such Consolidated Net Income (or loss) for such Fiscal Year; plus

 

(c)                                  the amount, if any, by which Net Working Capital decreased during such Fiscal Year (except as a result of the reclassification of items from short-term to long-term or vice-versa); minus

 

(d)                                 the amount, if any, by which Net Working Capital increased during such Fiscal Year (except as a result of the reclassification of items from short-term to long-term or vice-versa); minus

 

(e)                                  cash expenditures of Holdings and its Restricted Subsidiaries for and incurred in connection with Permitted Acquisitions or Investments pursuant to Section 7.03(l) during such Fiscal Year (except to the extent financed with the proceeds of Indebtedness, equity issuances, casualty proceeds, condemnation proceeds or other proceeds that would not be included in Consolidated Net Income (or loss) for such Fiscal Year); minus

 

(f)                                   permanent repayments of Indebtedness (including any premium, make-whole or other penalty associated therewith) other than, solely for the purposes of Section 2.03(b), Indebtedness hereunder, made in cash by the Restricted Subsidiaries during such Fiscal Year and permitted hereunder, but, only to the extent that the Indebtedness so prepaid by its terms cannot be reborrowed or redrawn and such prepayments do not occur in connection with a refinancing of all or any portion of such Indebtedness; minus

 

(g)                                  cash payments by the Borrower and the Restricted Subsidiaries during such period in respect of long-term liabilities of the Borrower and the Restricted Subsidiaries (other than Indebtedness) to the extent such payments are not expensed during such period; minus

 

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(h)                                 the amount expended in respect of voluntary prepayments of Loans made pursuant to Section 2.03(d) (other than in connection with a refinancing); minus

 

(i)                                     Restricted Payments made in cash by the Borrower during such Fiscal Year pursuant to Section 7.06(c) or (d); minus

 

(j)                                    Capital Expenditures actually made in cash by Holdings and its Restricted Subsidiaries in such Fiscal Year (except to the extent financed with the proceeds of Indebtedness, equity issuances, casualty proceeds, condemnation proceeds or other proceeds that would not be included in Consolidated Net Income (or loss) for such Fiscal Year); minus

 

(k)                                 any non-cash gains included in determining such Consolidated Net Income (or loss) for such Fiscal Year.

 

“Excluded Swap Obligation” means, with respect to any Loan Party, any Swap Obligation if, and to the extent that, all or a portion of the guarantee of such Loan Party of, or the grant by such Loan Party of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Loan Party’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time such Loan Party’s obligations under the last paragraph of Section 10.01 become effective with respect to such related Swap Obligation.

 

“Excluded Taxes” means, with respect to the Agents, any Lender or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however denominated), franchise taxes imposed on it (in lieu of net income taxes) and branch profits taxes (or similar taxes) imposed by a jurisdiction (or any political subdivision thereof) as a result of such recipient being organized or resident in, maintaining a Lending Office in, or doing business in such jurisdiction, (b) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 11.13), any U.S. federal withholding tax to the extent imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party hereto (or designates a new Lending Office) except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from the Borrower with respect to such withholding tax pursuant to Section 3.01; (c) taxes attributable to a Lender’s failure to comply with Section 3.01(e) or (f) and (d) any tax imposed as a result of such recipient’s failure to establish a complete exemption under FATCA.

 

“Existing ABL Facility” means the credit agreement governing the $75.0 million senior secured revolving facility dated as of August 16, 2007, among the Borrower, the guarantors party thereto, the lenders party thereto and JPMorgan as administrative agent and collateral agent, as amended or modified from time to time.

 

“Existing Mezzanine Notes” means the Borrower’s $150.0 million mezzanine notes issued under the existing Mezzanine Securities Purchase Agreement dated August 16, 2007, as amended and any exchange notes issued in replacement therefor.

 

“Existing Term Loan Class” has the meaning set forth in Section 2.13(a).

 

“Existing Term Loan Facility” means the credit agreement governing the $125.0 million senior secured term loan facility dated as of August 16, 2007, among the Borrower, the guarantors party

 

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thereto, the lenders party thereto and JPMorgan as administrative agent and collateral agent, as amended or modified from time to time.

 

“Extended Term Loans” has the meaning set forth in Section 2.13(a).

 

“Extending Term Lender” has the meaning set forth in Section 2.13(c).

 

“Extension Election” has the meaning set forth in Section 2.13(c).

 

“Extension Request” has the meaning provided in Section 2.13(a).

 

“Extraordinary Receipt” means any cash received by or paid to any Person in respect of proceeds of insurance (other than (i) proceeds of business interruption insurance to the extent such proceeds constitute compensation for lost earnings and (ii) in respect of any leased property (or assets located on such leased property) to the extent that such proceeds are required to be paid to the landlord of such Person pursuant to the terms of the Lease for such leased property) and condemnation awards (and payments in lieu thereof), in each case, to the extent the amount of cash received by or paid to such person is at least $1.0 million.

 

“Facility” means the Commitments and Loans under this Agreement.

 

“FATCA” means Sections 1471 through 1474 of the Code as in effect on the date hereof or any successor provision that is substantively comparable and not materially more onerous to comply with, and, in each case, any current or future regulations promulgated thereunder or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(i) of the Code and any intergovernmental agreements (together with any law implementing such agreements).

 

“Federal Funds Effective Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the federal funds effective rate, provided that if the Federal Funds Effective Rate shall be less than zero, such rate shall be deemed to zero for the purposes of this Agreement.

 

“First Priority” means, with respect to any Lien purported to be created on any Collateral pursuant to any Collateral Document, that such Lien is the most senior Lien to which such Collateral is subject (subject to (i) in the case of Mortgages, Permitted Encumbrances, and (ii) otherwise, Permitted Liens).

 

“Fiscal Month” means any fiscal month of any Fiscal Year; provided that for the avoidance of doubt, the Transition Period shall be considered a Fiscal Month.

 

“Fiscal Quarter” means any fiscal quarter of any Fiscal Year.

 

“Fiscal Year” means (i) any period of twelve consecutive Fiscal Months ending on the Saturday closest to February 28 in each calendar year (except for 53-week years) and on or prior to February 27, 2016 and (ii) any period of twelve consecutive Fiscal Months ending on the Saturday closest to March 31 in each calendar year (except for 53-week years) after April 2, 2016; provided that, other than for purposes of Section 6.01 and Section 6.02, the Fiscal Year ended April 1, 2017 shall include the Transition Period.

 

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“Flood Documentation” means, with respect to each Mortgaged Property located in the United States or any territory thereof, (i) a completed “life-of-loan” Federal Emergency Management Agency standard flood hazard determination (together with a notice about Special Flood Hazard Area status and flood disaster assistance duly executed by the Borrower and the applicable Loan Party relating thereto) and (ii) a copy of, or a certificate as to coverage under, and a declaration page relating to, the insurance policies required by Section 6.07 hereof and the applicable provisions of the Collateral Documents, each of which shall (A) be endorsed or otherwise amended to include a “standard” or “New York” lender’s loss payable or mortgagee endorsement (as applicable), (B) name the Collateral Agent, on behalf of the Credit Parties, as additional insured and loss payee/mortgagee and (C) identify the address of each property located in a Special Flood Hazard Area, the applicable flood zone designation and the flood insurance coverage and deductible relating thereto and (iv) be otherwise in form and substance reasonably satisfactory to the Administrative Agent.

 

“Flood Insurance Laws” means, collectively, (i) the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor statute thereto, (ii) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statue thereto, (iii) the National Flood Insurance Reform Act of 1994 as now or hereafter in effect or any successor statute thereto and (iv) the Flood Insurance Reform Act of 2004 as now or hereafter in effect or any successor statute thereto.

 

“Foreign Lender” means any Lender that is not, for U.S. federal income tax purposes, (i) an individual who is a citizen or resident of the United States, (ii) a corporation, partnership or other entity treated as a corporation or partnership created or organized in or under the laws of the United States, or any political subdivision thereof, (iii) an estate whose income is subject to U.S. federal income taxation regardless of its source or (iv) a trust if a court within the United States is able to exercise primary supervision over the administration of such trust and one or more United States persons have the authority to control all substantial decisions of such trust.  In addition, solely for purposes of clause (b) of the definition of “Excluded Taxes,” a Foreign Lender shall include a partnership or other entity treated as a partnership created or organized in or under the laws of the United States, or any political subdivision thereof, but only to the extent the partners of such partnership (including indirect partners if the direct partners are partnerships or other entities treated as partnerships for U.S. federal income tax purposes created or organized in or under the laws of the United States, or any political subdivision thereof) are treated as Foreign Lenders under the preceding sentence.

 

“Foreign Plan” means any employee benefit plan, program, policy, arrangement or agreement maintained or contributed to by, or entered into with, Holdings, the Borrower or any Subsidiary with respect to employees employed by Holdings, the Borrower or any Subsidiary outside the United States that is not subject to the laws of the United States.

 

“Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

 

“Former Lender” means any Person that was a Lender but that has assigned all of its Loans and Commitments, and no longer holds any Loans and Commitments and, at the time of such assignment, was, or an Affiliate of such Lender was, a counterparty under any agreement with respect to Bank Products or Cash Management Services with any Loan Party, which agreements relating to Bank Products or Cash Management Services have not expired, been paid out or otherwise terminated or renewed.

 

“FRB” means the Board of Governors of the Federal Reserve System of the United States.

 

“Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.

 

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“GAAP” means generally accepted accounting principles in the United States, as in effect from time to time; provided, however, that if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the Closing Date in GAAP or in the application thereof (including through the adoption of IFRS) on the operation of such provisions (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof (including through the adoption of IFRS), then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.

 

“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

 

“Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien).  The amount of any Guarantee shall be deemed to be an amount equal to, with respect to clause (a) above, the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith or, with respect to clause (b) above, the fair market value of the property subject to (or contemplated to be subject to) such Lien as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a corresponding meaning.

 

“Guarantors” means, collectively, Holdings, the Subsidiary Guarantors listed on Schedule 6.12 and each other Restricted Subsidiary of Holdings that is required to sign a counterpart to this Agreement pursuant to Section 6.12(a)(i).

 

“Guaranty” means the guaranty contained in Article X hereof made by the Guarantors in favor of the Credit Parties.

 

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated or defined as hazardous or toxic (or words of similar import) pursuant to any Environmental Law.

 

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“Holdings” means The Container Store Group, Inc., a Delaware corporation.

 

“IFRS” means International Financial Reporting Standards and applicable accounting requirements set by the International Accounting Standards Board or any successor thereto (or the Financial Accounting Standards Board, the Accounting Principles Board of the American Institute of Certified Public Accountants, or any successor to either such Board, or the SEC, as the case may be), as in effect from time to time.

 

“Impacted Interest Period” means, with respect to a LIBOR Screen Rate, an Interest Period which shall not be available at the applicable time.

 

“Incremental Term Borrowing” means a Borrowing comprised of Incremental Term Loans.

 

“Incremental Term Lender” means a Lender with an Incremental Term Loan Commitment or an outstanding Incremental Term Loan.

 

“Incremental Term Loan Amount” means, at any time, the excess, if any, of (athe greater of (a) the sum of (i) $50.0 million over (b) the aggregate amount of all Incremental Term Loan Commitments (other than in respect of Refinancing Term Loans) established prior to such time pursuant to Section 2.12.plus (ii) all voluntary prepayments of the existing Term B-2 Facility other than with the proceeds of long term Indebtedness and (b) any amount so long as, in the case of this clause (b), on a Pro Forma Basis (but excluding the cash proceeds of any Incremental Term Loans being incurred for purposes of the calculation of the amount of Secured Debt), the Consolidated Secured Leverage Ratio does not exceed 2.50 to 1.00.

 

“Incremental Term Loan Commitment” means the commitment of any Lender, established pursuant to Section 2.12, to make Incremental Term Loans to the Borrower.

 

“Incremental Term Loans” means Loans made by one or more Lenders to the Borrower pursuant to Section 2.01(b).  Incremental Term Loans may be made in the form of additional Term Loans or, to the extent permitted by Section 2.12 and provided for in the relevant Additional Credit Extension Amendment, Other Term Loans.

 

“Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

 

(a)           all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

 

(b)           the maximum amount (after giving effect to any prior drawings or reductions that may have been reimbursed) of all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial letters of credit), bankers’ acceptances, bank guaranties, surety bonds and similar instruments;

 

(c)           net obligations of such Person under Swap Contracts;

 

(d)           all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business which are being disputed in good faith by appropriate proceedings or which are not past due for more than 120 days after the date on which such trade account was created, any bona fide earn-out obligation or

 

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purchase price adjustment until such obligation is not paid after becoming due and payable and accounts for payroll and other liabilities in the ordinary course of business);

 

(e)           indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;

 

(f)            all Attributable Indebtedness in respect of Capital Lease Obligations and Synthetic Lease Obligations of such Person and all Synthetic Debt of such Person;

 

(g)           all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interest in such Person or any other Person, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; and

 

(h)           all Guarantees of such Person in respect of any of the foregoing.

 

For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is non-recourse to such Person.  The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date.  The amount of outstanding Indebtedness as of any date shall be the principal amount or accreted value thereof at such date.

 

“Indemnified Taxes” means Taxes other than Excluded Taxes imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document.

 

“Indemnitee” has the meaning specified in Section 11.04(b).

 

“Independent Financial Advisor” means an accounting, appraisal, investment banking firm or consultant of nationally recognized standing that is, in the good faith judgment of the Borrower, qualified to perform the task for which it has been engaged and that is independent of the Borrower and its Affiliates.

 

“Initial Loans” means the term loans made by the Lenders on the Amendment No. 1 Effective Date to the Borrower.

 

“Information” has the meaning specified in Section 11.07.

 

“Information Memorandum” means the Confidential Offering Memorandum dated March 2012 used by the Arrangers in connection with the syndication of the Commitments.

 

“Intellectual Property” means all present and future:  trade secrets, know-how and other proprietary information; trademarks, internet domain names, service marks, trade dress, trade names, business names, designs, logos, slogans, indicia of origin, and other source and/or business identifiers, and all registrations which have heretofore been or may hereafter be issued thereon throughout the world; copyrights and copyright applications; unpatented inventions (whether or not patentable); patents and patent applications; license agreements related to any of the foregoing; all other intellectual property; and all common law and other rights throughout the world in and to all of the foregoing.

 

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“Intercreditor Agreement” means an intercreditor agreement substantially in the form of Exhibit C.

 

“Interest Payment Date” means (a) as to any LIBO Rate Loan, the last day of each Interest Period applicable to such Loan and the Maturity Date or the Incremental Term Loan Maturity Date, as applicable; provided, however, that if any Interest Period for a LIBO Rate Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate Loan, the first Business Day after the end of each calendar quarter and the Maturity Date or the Incremental Term Loan Maturity Date, as applicable; provided, further, that the Amendment No. 2 Effective Date shall constitute an Interest Payment Date with respect to accrued and unpaid interest up to but excluding the Amendment No. 2 Effective Date for the Initial Loans (including the Converted Initial Loans); provided, further, that the Amendment No. 4 Effective Date shall constitute an Interest Payment Date with respect to accrued and unpaid interest up to but excluding the Amendment No. 4 Effective Date for the Term B Loans prepaid or refinanced on such date (including the Converted Term B Loans); provided, further, that the Amendment No. 5 Effective Date shall constitute an Interest Payment Date with respect to accrued and unpaid interest up to but excluding the Amendment No. 5 Effective Date for the Term B-1 Loans prepaid or refinanced on such date (including the Converted Term B-1 Loans).

 

“Interest Period” means, as to each LIBO Rate Loan, the period commencing on the date such LIBO Rate Loan is disbursed or converted to or continued as a LIBO Rate Loan and, except as contemplated by Section 2.01, ending on the date one, two, three or six months thereafter (or such other period as agreed by the Borrower and all applicable Lenders), as selected by the Borrower in its Committed Loan Notice or Conversion/Continuation Notice, as the case may be; provided that:

 

(a)           any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

 

(b)           any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period;

 

(c)           no Interest Period longer than one month may be selected prior to the date that is the 30th day following the Closing Date; and

 

(d)           no Interest Period shall extend beyond the Maturity Date.

 

“Interpolated Rate” means, at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBOR Screen Rates) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBOR Screen Rate for the longest period (for which the LIBOR Screen Rate is available) that is shorter than the Impacted Interest Period and (b) the LIBOR Screen Rate for the shortest period (for which the LIBOR Screen Rate is available) that exceeds the Impacted Interest Period, in each case, as of 11:00 a.m., London Time, two Business Days prior to the commencement of such Interest Period. When determining the rate for a period which is less than the shortest period for which the LIBOR Screen Rate is available, the LIBOR Screen Rate for purposes of paragraph (a) above shall be deemed to be the overnight screen rate where “overnight screen rate” means, in relation to Dollars, the overnight rate for Dollars determined by the Administrative Agent from such service as the Administrative Agent may select.

 

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“Investment” means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or interest in, another Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of all or substantially all of the assets of another Person or of the assets of another Person that constitute a discrete business unit.  For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested (measured at the time made), without adjustment for subsequent increases or decreases in the value of such Investment.

 

“IRS” means the United States Internal Revenue Service.

 

“JPMCB” means JPMorgan Chase Bank, N.A.

 

“Laws” means, collectively, all international, foreign, Federal, state and local statutes, laws (including common law), treaties, rules, guidelines, regulations, judgments, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law.

 

“Lease” means any agreement, whether written or oral, no matter how styled or structured, pursuant to which a Loan Party is entitled to the use or occupancy of any space in a structure, land, improvements or premises for any period of time.

 

“Lender” has the meaning specified in the introductory paragraph hereto and their respective successors and assigns as permitted hereunder, each of which is referred to herein as a “Lender”.

 

“Lender Participation Notice” has the meaning provided in Section 2.03(d)(iii).

 

“Lending Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the Borrower and the Administrative Agent.

 

“LIBO Rate” means, for any applicable Interest Period, the LIBOR Screen Rate as of approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period for Dollar deposits for such Interest Period; provided, that, if a LIBOR Screen Rate shall not be available at the applicable time for the applicable Interest Period, then the LIBO Rate for such currency and Interest Period shall be the Interpolated Rate; provided, further that in no event shall the LIBO Rate for any Interest Period be less than 1.00% per annum.

 

“LIBO Rate Loan” means a Loan that bears interest at a rate based on the LIBO Rate.

 

“LIBOR Screen Rate” means the London interbank offered rate administered by the ICE Benchmark Association (or any other Person that takes over the administration of such rate) for Dollars for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen or, in the event such rate does not appear on either of such Reuters pages, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate as shall be selected by the Administrative Agent from time to time in its reasonable discretion; provided, that, if any LIBOR Screen Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

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“Lien” means any mortgage, pledge, hypothecation, assignment, encumbrance, lien (statutory or other), charge, preference, or priority in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to Real Estate, and any financing lease having substantially the same economic effect as any of the foregoing).

 

“Liquidation” means the exercise by the Administrative Agent or Collateral Agent of those rights and remedies accorded to such Agents under the Loan Documents and applicable Law as a creditor of the Loan Parties with respect to the realization on the Collateral, including (after the occurrence and continuation of an Event of Default) the conduct by the Loan Parties acting with the consent of the Administrative Agent, of any public, private or going out of business sale or other disposition of the Collateral for the purpose of liquidating the Collateral.  Derivations of the word “Liquidation” (such as “Liquidate”) are used with like meaning in this Agreement.

 

“Loan Documents” means, collectively, (a) this Agreement, (b) the Notes, (c) the Collateral Documents and (d) each Additional Credit Extension Amendment.

 

“Loan Parties” means, collectively, the Borrower and each Guarantor.

 

“Loans” means the Initial Loans, Term B Loans, Term B-1 Loans, Term B-2 Loans, Incremental Term Loans, Extended Term Loans and Replacement Loans.

 

“Management Agreement” means the Amended and Restated Management Services Agreement dated as of September 1, 2011 between Leonard Green & Partners, L.P. (or any Affiliate of Leonard Green & Partners, L.P. to which such agreement has been assigned) and the Borrower as in effect as of the Closing Date or as amended in any manner not materially adverse to the Lenders.

 

“Management Fees” means all fees and expense reimbursements payable to Leonard Green & Partners, L.P. or any of its controlled Affiliates pursuant to the Management Agreement.

 

“Management Stockholders” means the members of management of Holdings or any of its Subsidiaries who are investors in Holdings or any direct or indirect parent thereof on the Closing Date.

 

“Material Adverse Effect” means (a) any change, circumstance, event or effect that would be materially adverse to the assets, liabilities, business, financial condition or results of operations of Holdings and its Restricted Subsidiaries taken as a whole; (b) a material impairment of the rights and remedies of the Administrative Agent, the Collateral Agent or any Lender under any Loan Document, or of the ability of any of Holdings, the Borrower or any Material Subsidiary to perform its obligations under any Loan Document to which it is a party; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against any of Holdings, the Borrower or any Material Subsidiary of any Loan Document to which it is a party.

 

“Material Indebtedness” means Indebtedness (other than the Obligations) of any of the Holdings or any of its Restricted Subsidiaries in an aggregate principal amount exceeding $10.0 million for all such Persons.  For purposes of determining the amount of Material Indebtedness at any time, the amount of the obligations in respect of any Swap Contract at such time shall be calculated at the Swap Termination Value thereof.

 

“Material Subsidiary” means, at any date of determination, any Restricted Subsidiary or group of Restricted Subsidiaries (a) whose total assets at the last day of the most recently ended Measurement Period were equal to or greater than 5% of the Consolidated total assets of Holdings and its

 

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Consolidated Subsidiaries at such date, or (b) whose gross revenues for such Measurement Period were equal to or greater than 5% of the Consolidated gross revenues of Holdings and its Consolidated Subsidiaries for such period, in each case determined in accordance with GAAP.

 

“Maturity Date” means with respect to the Term B-12 Loans, August 18, 2021.September 14, 2023.

 

“Maximum Rate” has the meaning specified in Section 11.09.

 

“Measurement Period” means, at any date of determination, the most recently completed four consecutive Fiscal Quarters of Holdings and its Restricted Subsidiaries for which financial statements pursuant to Section 6.01(a) or (b) have been, or were required to have been, delivered for the applicable fiscal period (or, in the case of any calculation made prior to the first such delivery, the four Fiscal Quarter period ended November 16, 2011); provided that, with respect to the Fiscal Quarters ending July 2, 2016, October 1, 2016, December 31, 2016 and April 1, 2017, the Measurement Periods will be the twelve consecutive Fiscal Months (i) beginning on July 5, 2015 and ending on July 2, 2016, (ii) beginning on October 4, 2015 and ending on October 1, 2016, (iii) beginning on January 3, 2016 and ending on December 31, 2016 and (iv) beginning on April 3, 2016 and ending on April 1, 2017, respectively.

 

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

 

“Mortgage” means any deed of trust, trust deed, deed to secure debt, mortgage or other similar instrument, as applicable, creating a real property Lien on and security interest in Real Estate in favor of Collateral Agent on behalf of the Credit Parties, in each case in form and substance reasonably satisfactory to the Administrative Agent and its counsel.

 

“Mortgage Policy” has the meaning specified in Section 6.12(b).

 

“Mortgaged Property” means each parcel of Real Estate owned in fee by any Loan Party, if any, which shall be subject to a Mortgage pursuant to Section 6.12.

 

“Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA, to which Holdings, the Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions on behalf of participants who are or were employed by any of them.

 

“Net Cash Proceeds” means:

 

(a)           with respect to any Disposition by Borrower or any of its Restricted Subsidiaries, or any Extraordinary Receipt received or paid to the account of Holdings or any of its Restricted Subsidiaries, the excess, if any, of (i) the sum of cash and Cash Equivalents received in connection with such transaction (including any cash or Cash Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received) over (ii) the sum of (A) the principal amount of any Indebtedness (plus any premium or other required payment on account thereof) that is secured by a Lien having priority over the Lien of the Collateral Agent (if any) on the applicable asset and that is required to be repaid in connection with such transaction (other than Indebtedness under the Loan Documents, but including, the payment of the proceeds from any ABL Priority Collateral in reduction of the Indebtedness under the ABL Facility) plus, in the case of any Disposition by a Foreign Subsidiary or an Extraordinary Receipt received by a Foreign Subsidiary, the principal amount of Indebtedness (if any) of such Foreign Subsidiary or other Foreign Subsidiaries proposed to be

 

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repaid with such Net Cash Proceeds and (B) the reasonable out-of-pocket expenses incurred by Borrower or such Restricted Subsidiary in connection with such transaction; and

 

(b)           with respect to the incurrence or issuance of any Refinancing Indebtedness or Indebtedness not permitted to be incurred or issued pursuant to Section 7.02 by Borrower or any Restricted Subsidiary, the excess, if any, of (i) the sum of the cash and Cash Equivalents received in connection with such incurrence or issuances over (ii) the investment banking fees, underwriting discounts, commissions, costs and other out-of-pocket expenses and other customary expenses, incurred by Borrower or such Restricted Subsidiary in connection with such incurrence or issuance.

 

“Net Working Capital” means, at any date, (a) the Consolidated current assets of Holdings and its Restricted Subsidiaries as of such date (excluding cash and current assets in respect of income taxes) minus (b) the Consolidated current liabilities of Holdings and its Restricted Subsidiaries as of such date (excluding current liabilities in respect of Indebtedness and deferred income taxes).  Net Working Capital at any date may be a positive or negative number.  Net Working Capital increases when it becomes more positive or less negative and decreases when it becomes less positive or more negative.

 

“Note” means a promissory note made by the Borrower in favor of a Lender, evidencing Loans made by such Lender, substantially in the form of Exhibit E.

 

“NPL” means the National Priorities List under CERCLA.

 

“NYFRB” means the Federal Reserve Bank of New York.

 

“NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); provided that if none of such rates are published for any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received to the Administrative Agent from a Federal funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Obligations” means (a) all debts (including principal, interest, fees, costs, and expenses), liabilities, obligations, covenants, indemnities, and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan (including any Other Term Loan), whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding and (b) any Other Liabilities, excluding, with respect to any Guarantor that is not a Qualified ECP Guarantor, Excluded Swap Obligations of such Guarantor.

 

“Offered Loans” has the meaning provided in Section 2.03(d)(iii).

 

“Organization Documents” means (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation or organization and operating agreement; and (c) with respect to any partnership, limited partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental

 

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Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.

 

“Other Liabilities” means amounts due on account of or arising from (a) any Cash Management Services furnished to any of the Loan Parties and (b) any transaction which arises out of any Bank Product entered into with any of the Loan Parties, as each may be amended from time to time.

 

“Other Taxes” means all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies (including any interest, additions to tax or penalties applicable thereto) arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document.

 

“Other Term Loans” has the meaning specified in Section 2.12(a).

 

“Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnight Eurodollar borrowings by U.S.-managed banking offices of depository institutions, as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate (from and after such date as the NYFRB shall commence to publish such composite rate).

 

“Participant” has the meaning specified in Section 11.06(d).

 

“Participant Register” has the meaning specified in Section 11.06(d).

 

“PBGC” means the Pension Benefit Guaranty Corporation.

 

“PCAOB” means the Public Company Accounting Oversight Board.

 

“Pension Plan,” means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Section 412 of the Code or Title IV of ERISA and is sponsored or maintained by Holdings, the Borrower or any ERISA Affiliate or to which Holdings, the Borrower or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan years on behalf of participants who are or were employed by any of them.

 

“Perfection Certificate” means a certificate in the form of Exhibit H-1 or any other form approved by the Collateral Agent, as the same shall be supplemented from time to time by a Perfection Certificate Supplement or otherwise.

 

“Perfection Certificate Supplement” means a certificate supplement in the form of Exhibit H-2 or any other form approved by the Collateral Agent.

 

“Permitted Acquisition” has the meaning assigned to such term in Section 7.03(h).

 

“Permitted Encumbrances” has the meaning specified in the Mortgages.

 

“Permitted Holdco Debt” means Indebtedness of Holdings that (A) is not subject to any Guarantee by the Borrower or any other Restricted Subsidiary, (B) will not mature prior to the date that is 180 days after the Maturity Date, (C) has no scheduled amortization or mandatory redemption of principal

 

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(excluding customary offers to purchase under certain circumstances, such as a “change in control”) prior to the date that is 180 days after the Maturity Date, (D) does not require or permit payments in cash of interest or other amounts in the nature of interest prior to the date that is 180 days after the Maturity Date, (E) is subordinated to the Obligations on terms reasonably acceptable to the Administrative Agent, (F) is unsecured, (G) is not convertible into or exchangeable for any Indebtedness or Equity Interests other than Equity Interests in Holdings (other than Disqualified Equity Interests) on market terms, (H) has covenants, defaults and remedies provisions customary for senior discount notes of an issuer that is the parent of a borrower under senior credit facilities, and (I) the net proceeds from which are contributed by Holdings to the Borrower or any of the Restricted Subsidiaries for its general corporate purposes (including, without limitation, for the payment of the purchase price for acquisitions permitted under Section 7.03(h)).

 

“Permitted Indebtedness” has the meaning specified in Section 7.02.

 

“Permitted Lien” has the meaning specified in Section 7.01.

 

“Permitted Protest” means the protest by the Borrower or any Restricted Subsidiary of any Lien (other than any such Lien that secures the Obligations), taxes, or rental payment, provided that (a) a reserve with respect to such obligation is established on the books and records of the applicable Person in such amount (if any) to the extent required under GAAP, (b) any such protest is prosecuted diligently by the Borrower or such Restricted Subsidiary, as the case may be, in good faith, by appropriate proceedings, (c) such protest effectively suspends collection of the contested obligation and enforcement of any Lien securing such obligation, and (d) the failure to make payment during the pendency of such protest, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

 

“Permitted Refinancing Indebtedness” means, with respect to any Person, any modification, refinancing, refunding, renewal or extension of any Indebtedness of such Person (or any successor of such Person) by such Person or its successor; provided that (a) the principal or committed amount (or accreted value, if applicable) thereof does not exceed the sum of (i) the outstanding principal or committed amount (or accreted value, if applicable) of the Indebtedness so modified, refinanced, refunded, renewed or extended plus (ii) prepayment premiums and other reasonable amounts paid, and fees (including original issue discount and upfront fees) and expenses reasonably incurred, in connection with such modification, refinancing, refunding, renewal or extension, (b) other than with regard to Permitted Refinancing Indebtedness in respect of Indebtedness permitted pursuant to Section 7.03(f) or Section 7.03(h) such modification, refinancing, refunding, renewal or extension has (i) a final maturity date equal to or later than the final maturity date of the Indebtedness being modified, refinanced, refunded, renewed or extended and (ii) a weighted average life to maturity equal to or greater than the weighted average life to maturity of the Indebtedness being modified, refinanced, refunded, renewed or extended, (c) if the Indebtedness being modified, refinanced, refunded, renewed or extended is Subordinated Indebtedness, such modification, refinancing, refunding, renewal or extension (i) is subordinated in right of payment to the Obligations on terms at least as favorable, taken as a whole, to the Lenders as those contained in the documentation governing the Subordinated Indebtedness being modified, refinanced, refunded, renewed or extended, (ii) does not require payments of cash interest prior to the date that is six months following the maturity date of the Indebtedness being refinanced in amounts greater than was required by the Indebtedness being refinanced, and (iii) contains covenants and events of default that are not more restrictive taken as a whole than the covenants and events of default contained in the documentation governing the Indebtedness being refinanced (as determined in good faith by the Borrower), and (d) no property of any Loan Party or Restricted Subsidiary shall constitute collateral security for the Indebtedness so modified, refinanced, refunded, renewed, or extended other than any Permitted Liens.

 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, limited partnership, Governmental Authority or other entity.

 

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“Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established or maintained by Holdings, the Borrower or, with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate.

 

“Plan Asset Regulations” means 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of ERISA, as amended from time to time.

 

“Platform” has the meaning specified in Section 6.02.

 

“Pledge Agreement” means the Pledge Agreement dated April 6, 2012, among the Loan Parties and the Collateral Agent, together with each other pledge agreement and pledge agreement supplement delivered pursuant to Section 6.12(a)(iii), as amended.

 

“Pledged Debt” means any debt instrument constituting Collateral under any of the Collateral Documents.

 

“Pledged Equity” means any certificated equity security constituting Collateral under any of the Collateral Documents.

 

“Prime Rate” means the rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank as its prime rate in effect at its principal office in New York City; eachlast quoted by The Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the Federal Reserve Board (as determined by the Administrative Agent). Each change in the Prime Rate shall be effective from and including the date such change is publicly announced or quoted as being effective.

 

“Pro Forma Basis” means, with respect to compliance with any test or covenant or calculation hereunder, the determination or calculation of such test, covenant or ratio (including in connection with Specified Transactions) in accordance with Section 1.08.

 

“Proposed Discounted Prepayment Amount” has the meaning provided in Section 2.03(d)(ii).

 

“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

 

“Public Lender” has the meaning specified in Section 6.02.

 

“Public Offering” means a public offering of the Equity Interests of Holdings pursuant to an effective registration statement under the Securities Act.

 

“Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party that has total assets exceeding $10,000,000 at the time the relevant Guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such other person as constitutes an “ECP” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an “ECP” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

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“Qualified Equity Interests” means any Equity Interests that are not Disqualified Equity Interests.

 

“Qualified Equity Issuance” means any sale or issuance (other than to the Borrower or a Subsidiary) of any Qualified Equity Interests of the Borrower.

 

“Qualifying Lenders” has the meaning provided in Section 2.03(d)(iv).

 

“Qualifying Loans” has the meaning provided in Section 2.03(d)(iv).

 

“Real Estate” means all Leases and all land, together with the buildings, structures, parking areas, and other improvements thereon, now or hereafter owned by any Loan Party.

 

“Refinanced Loans” has the meaning provided in Section 11.01.

 

“Refinancing Debt Securities” means any Indebtedness consisting of one or more series of senior or junior unsecured notes or senior secured notes (“debt securities”) incurred or Guaranteed by Loan Parties following the Closing Date that are designated by the Borrower in a certificate of a Responsible Officer delivered to the Administrative Agent as “Refinancing Debt Securities”; provided that (i) such debt securities are pari passu or junior in right of payment with any remaining portion of the Facility and pari passu, junior or unsecured with respect to security with any remaining portion of the Facility, (ii) such debt securities do not mature prior to the maturity date of, or have a shorter weighted average life than, the Loans being refinanced, (iii) the other terms and conditions relating to such debt securities (excluding pricing and optional prepayment or redemption terms) are substantially identical to, or (taken as a whole as determined by the Borrower in its reasonable judgment) are no more favorable to the lenders providing such Refinancing Debt Securities than those applicable to the Loans being refinanced (except for covenants or other provisions applicable only to periods after the latest final maturity date of the Loans existing at the time of such refinancing) and (iv) the aggregate principal amount of any Refinancing Debt Securities does not exceed the aggregate amount of debt being refinanced therewith, plus interest, fees and expenses or to the extent otherwise permitted under this Agreement.

 

“Refinancing Indebtedness” means (i) any Refinancing Term Loans and (ii) any Refinancing Debt Securities.

 

“Refinancing Term Loans” means Incremental Term Loans that are designated by a Responsible Officer of the Borrower as “Refinancing Term Loans” in a certificate of a Responsible Officer of the Borrower delivered to the Administrative Agent on or prior to the date of incurrence; provided that (i) such Refinancing Term Loans do not mature prior to the maturity date of, or have a shorter weighted average life than, the Loans being refinanced, (ii) the other terms and conditions relating to such Refinancing Term Loans (excluding pricing and optional prepayment or redemption terms) are substantially identical to, or (taken as a whole as determined by the Borrower in its reasonable judgment) are no more favorable to the lenders providing such Refinancing Term Loans than those applicable to the Loans being refinanced (except for covenants or other provisions applicable only to periods after the latest final maturity date of the Loans existing at the time of such refinancing) and (iii) the aggregate principal amount of any Refinancing Term Loans does not exceed the aggregate amount of debt being refinanced therewith, plus interest, fees and expenses or to the extent otherwise permitted under this Agreement.

 

“Register” has the meaning specified in Section 11.06(c).

 

“Registered Public Accounting Firm” has the meaning specified by the Securities Laws and shall be independent of Holdings and its Subsidiaries as prescribed by the Securities Laws.

 

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“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents and advisors of such Person and of such Person’s Affiliates.

 

“Release” means any spilling, leaking, seepage, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing, depositing, dispersing, or migrating of any Hazardous Material into or through the environment.

 

“Replacement Loans” has the meaning provided in Section 11.01.

 

“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived by regulation.

 

“Repricing Transaction” means the prepayment, refinancing, substitution or replacement of all or a portion of the Term B-12 Loans with the incurrence by the Borrower or any Subsidiary of any debt financing having an effective interest cost or weighted average yield (with the comparative determinations to be made by the Administrative Agent consistent with generally accepted financial practices, after giving effect to, among other factors, margin, interest rate floors, upfront or similar fees or original issue discount shared with all providers of such financing, but excluding the effect of any arrangement, structuring, syndication or other fees payable in connection therewith that are not shared with all providers of such financing, and without taking into account any fluctuations in the LIBO Rate) that is less than the effective interest cost or weighted average yield (as determined by the Administrative Agent on the same basis) of such Term B-12 Loans, including, without limitation, as may be effected through any amendment to this Agreement relating to the interest rate for, or weighted average yield of, such Term B-12 Loans or the incurrence of any Refinancing Indebtedness.

 

“Required Lenders” means, as of any date of determination, Lenders holding in the aggregate more than 50% of the Total Outstandings; provided that the portion of the Total Outstandings held or deemed held by any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

 

“Responsible Officer” means the chief executive officer, president, chief financial officer, any executive or senior vice president, treasurer, assistant treasurer or controller of a Loan Party or any of the other officers designated in writing to the Administrative Agent by an existing Responsible Officer of a Loan Party as an authorized signatory of any certificate or other document to be delivered hereunder.  Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.

 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) by Borrower or any of its Restricted Subsidiaries with respect to any Equity Interest of Holdings or any of its Restricted Subsidiaries, or any payment by Borrower or any of its Restricted Subsidiaries (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, defeasance, acquisition, cancellation or termination of any such Equity Interest, or on account of any return of capital to Borrower’s or any of its Restricted Subsidiaries’ direct or indirect stockholders, partners or members (or the equivalent of any thereof).  For the avoidance of doubt, payments made pursuant to the Management Agreement shall not be considered Restricted Payments.

 

“Restricted Subsidiary” means any Subsidiary of Holdings other than an Unrestricted Subsidiary.  In all events, the Borrower shall be deemed a Restricted Subsidiary of Holdings.  A Restricted

 

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Subsidiary of Holdings that is also a Subsidiary of the Borrower shall also be deemed to be a Restricted Subsidiary of the Borrower.

 

“Restriction” has the meaning specified in Section 2.03(c).

 

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

 

“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

 

“Second Priority” means, with respect to any Lien purported to be created in any Collateral pursuant to any Collateral Document, that such Lien is second in priority only to the Liens created under the ABL Loan Documents (subject to (i) in the case of Mortgages, Permitted Encumbrances) and (ii) otherwise, Permitted Liens).

 

“Secured Debt” means, on any date, Total Debt on such date after subtracting therefrom the principal amount of Indebtedness of the Borrower or any of its Restricted Subsidiaries otherwise included in clause (i) of the definition thereof that is not secured by any Lien on any assets of the Borrower or any Restricted Subsidiary.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Securities Laws” means the Securities Act, the Securities Exchange Act of 1934, the Sarbanes-Oxley Act of 2002 (in each case, as amended), and the applicable accounting and auditing principles, rules, standards and practices promulgated, approved or incorporated by the SEC or the PCAOB.

 

“Security Agreement” means the Security Agreement dated April 6, 2012, among the Loan Parties and the Collateral Agent, together with each other security agreement and security agreement supplement delivered pursuant to Section 6.12(a)(iii), as amended.

 

“series” means, with respect to any Extended Term Loans, Incremental Term Loans or Replacement Loans, all such Loans that have the same maturity date, amortization and interest rate provision and that are designated as part of such “series” pursuant to the applicable Additional Credit Extension Amendment.

 

“Solvent” and “Solvency” mean, with respect to any Person on any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature, (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital, and (e) such Person is able to pay its debts and liabilities, contingent obligations and other commitments as they mature in the ordinary course of business.  The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

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“Special Distribution” means payments in an aggregate amount not to exceed $90,000,000 on or after the Amendment No. 1 Effective Date in respect of: (i) the payment by the Borrower to Holdings, the proceeds of which will be used to redeem a portion of the Equity Interests of Holdings and/or to pay cash dividends or distributions to the holders of the Equity Interests of Holdings and/or (ii)  special bonuses, dividend equivalents or other payments payable to officers, employees, consultants and directors who hold options or similar Equity Interests in Holdings.

 

“Specified Transaction” means any Investment that results in a Person becoming a Restricted Subsidiary, any designation of a Subsidiary as a Restricted Subsidiary or an Unrestricted Subsidiary, any Disposition that results in a Restricted Subsidiary ceasing to be a Subsidiary of the Borrower, any Investment constituting an acquisition of assets constituting a business unit, line of business or division of another Person or a Store or any Disposition of a business unit, line of business or division of the Borrower or a Restricted Subsidiary, in each case whether by merger, consolidation, amalgamation or otherwise, any incurrence or repayment of Indebtedness (other than Indebtedness incurred or repaid under any revolving credit facility in the ordinary course of business for working capital purposes), any Restricted Payment or Incremental Term Loan and any other transaction that by the terms of this Agreement requires such test to be calculated on a “Pro Forma Basis.”  Notwithstanding anything herein to the contrary, in no event shall the acquisition of The Container Store Services, LLC be deemed to be a Specified Transaction.

 

“Sponsor” means Leonard Green & Partners, L.P.

 

“Sponsor Affiliate” means Sponsor or any Affiliate thereof (other than a portfolio company of Sponsor or a natural person).

 

“Sponsor Affiliated Lender” means any Lender (other than Holdings, the Borrower or any of their respective Subsidiaries) that is a Sponsor Affiliate or that is managed or advised by a Sponsor Affiliate.

 

“Store” means any retail store (which includes any real property, fixtures, equipment, inventory and other property related thereto) operated, or to be operated, by the Borrower or any Restricted Subsidiary.

 

“Subordinated Indebtedness” means all Indebtedness of a Loan Party that is subordinate in right of payment to any or all of the Obligations pursuant to subordination provisions reasonably acceptable to the Administrative Agent and which provide, without limitation, (a) for a maturity after the Maturity Date, (b) that such Indebtedness is unsecured, (c) that no principal payments shall be required to be made until after the Maturity Date, and (d) that interest shall accrue and be payable in cash at a market rate of interest, subject to the right of the Administrative Agent to impose a payment blockage period upon the occurrence and during the continuance of any Event of Default.  In no event shall Disqualified Equity Interests be deemed Subordinated Indebtedness.

 

“Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of Holdings.

 

“Subsidiary Guarantors” means collectively, all Restricted Subsidiaries of the Borrower other than (i) any CFC, (ii) any Subsidiary owned directly or indirectly by a CFC or (iii) any Domestic

 

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Subsidiary if substantially all of the assets of such Domestic Subsidiary consist of Equity Interests in one or more Foreign Subsidiaries that are CFCs.

 

“Survey” means a survey of any Mortgaged Property (and all improvements thereon) which is (a) (i) prepared by a surveyor or engineer licensed to perform surveys in the jurisdiction where such Mortgaged Property is located, (ii) dated (or redated) not earlier than six months prior to the date of delivery thereof unless there shall have occurred within six months prior to such date of delivery any exterior construction on the site of such Mortgaged Property or any easement, right of way or other interest in the Mortgaged Property has been granted or become effective through operation of law or otherwise with respect to such Mortgaged Property which, in either case, can be depicted on a survey, in which events, as applicable, such survey shall be dated (or redated) after the completion of such construction or if such construction shall not have been completed as of such date of delivery, not earlier than 20 days prior to such date of delivery, or after the grant or effectiveness of any such easement, right of way or other interest in the Mortgaged Property, provided that with respect to any of the Mortgaged Properties described on Schedule 5.07(c) where no new construction has occurred since the most recent survey and no new encumbrances have been created since the date of such survey, a survey affidavit of no change shall satisfy the provisions of this clause (ii), (iii) certified by the surveyor (in a manner reasonably acceptable to the Administrative Agent) to the Administrative Agent, the Collateral Agent and the Title Company, (iv) complying in all respects with the minimum detail requirements of the American Land Title Association as such requirements are in effect on the date of preparation of such survey, and (v) sufficient for the Title Company to remove all standard survey exceptions from the title insurance policy (or commitment) relating to such Mortgaged Property and issue the endorsements of the type required by Section 6.12, or (b) otherwise acceptable to the Collateral Agent.

 

“Swap Contract” means any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement.

 

“Swap Obligation” means, with respect to any Loan Party, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

 

“Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender).

 

“Swedish Credit Facility” means the Revolving Credit and Term Loan Facility Agreement, dated April 27, 2009, between Elfa International AB and Swedbank AB, including any related notes, guarantees and collateral documents executed in connection therewith, and in each case as amended, restated, modified, refinanced, renewed, refunded, restructured or replaced in any manner.

 

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“Swedish Pledge Agreement” means the Share Pledge Agreement, dated April 6, 2012, between the Borrower as pledgor and the Collateral Agent.

 

“Synthetic Debt” means, with respect to any Person as of any date of determination thereof, all obligations of such Person in respect of transactions entered into by such Person that are intended to function primarily as a borrowing of funds (including any minority interest transactions that function primarily as a borrowing) but are not otherwise included in the definition of “Indebtedness” or as a liability on the Consolidated balance sheet of such Person and the Restricted Subsidiaries in accordance with GAAP.

 

“Synthetic Lease Obligation” means the monetary obligation of a Person under an agreement for the use or possession of property (including sale and leaseback transactions), in each case, creating obligations that do not appear on the balance sheet of such Person but which, upon the application of any Debtor Relief Laws to such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).

 

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Term B Loans” has the meaning specified in Section 2.01(a).  Immediately after giving effect to Amendment No. 4, there will be no outstanding Term B Loans.

 

“Term B-1 Loans” has the meaning specified in Section 2.01(b).  Immediately after giving effect to Amendment No. 4, the aggregate amount of outstanding Term B-1 Loans on the Amendment No. 4 Effective Date is $300,000,000.  Immediately after giving effect to Amendment No. 5, there will be no outstanding Term B-1 Loans.

 

“Term B-2 Loans” has the meaning specified in Section 2.01(b).  Immediately after giving effect to Amendment No. 5, the aggregate amount of outstanding Term B-2 Loans on the Amendment No. 5 Effective Date is $292,500,000.

 

“Term Loans” means Initial Loans, Term B Loans, Term B-1 Loans and any Incremental Term Loans that are specified in the applicable Additional Credit Extension Amendment to be an increase in the amount of Term Loans.

 

“Term Priority Collateral” has the meaning specified in the Intercreditor Agreement.

 

“Title Company” means any title insurance company as shall be retained by the Borrower and reasonably acceptable to the Collateral Agent.

 

“Total Debt” means, at any date of determination (i) the aggregate principal amount of Indebtedness (other than contingent Indebtedness of the type described in clause (b) of the definition of “Indebtedness” and obligations under Swap Contracts permitted by Section 7.02(a)(except to the extent any such Swap Contract has terminated)) of Holdings and its Restricted Subsidiaries outstanding as of such date, in the amount that would be reflected on a balance sheet prepared as of such date on a Consolidated basis in accordance with GAAP less (ii) the aggregate amount of unrestricted cash and Cash Equivalents of Holdings and its Restricted Subsidiaries on such date in excess of $5.0 million.

 

“Total Outstandings” means, on any date, the aggregate outstanding amount of all Loans, after giving effect to any borrowings or repayments of Loans occurring on such date.

 

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“Transaction” means, collectively, (a) the execution of the ABL Facility and the lending of Loans thereunder, (b) the entering into the Loan Documents by the Loan Parties and their applicable Subsidiaries, (c) the termination and repayment of all Indebtedness under the Borrower’s (i) Existing ABL Facility, (ii) Existing Mezzanine Notes and (iii) Existing Term Loan Facility and (d) the payment of the fees and Transaction Expenses.

 

“Transaction Expenses” means fees and expenses incurred in connection with the closing of this Agreement, the ABL Facility and the use of proceeds thereof.

 

“Transition Period” means the period from and including February 28, 2016 to and including April 2, 2016.

 

“Type” means, with respect to a Loan, its character as a Base Rate Loan or a LIBO Rate Loan.

 

“UCC” means the Uniform Commercial Code as in effect in the State of New York; provided that, if perfection or the effect of perfection or non-perfection or the priority of any security interest in any Collateral or the availability of any remedy under the Loan Documents is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection, priority or availability of such remedy.

 

“Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code for the applicable plan year.

 

“United States” and “U.S.” mean the United States of America.

 

“Unrestricted Subsidiary” means (i) each Subsidiary of Holdings listed on Schedule 5.11 and designated as an “Unrestricted Subsidiary,” (ii) any Subsidiary of Holdings designated by the board of directors of Holdings as an Unrestricted Subsidiary pursuant to Section 6.17 subsequent to the date hereof, and (iii) any Subsidiary of an Unrestricted Subsidiary.

 

“USA PATRIOT Act” means The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Public Law No. 107-56 (signed into law October 26, 2001)), as amended or modified from time to time.

 

“U.S. Loan Party” means any Loan Party that is organized under the laws of one of the states of the United States of America and that is not a CFC.

 

“U.S. Tax Compliance Certificate” has the meaning specified in Section 3.01(e)(iii).

 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

“Yield” for any Indebtedness on any date of determination will be the internal rate of return on any Loan determined by the Administrative Agent utilizing (a) the greater of (i) if applicable, any

 

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“LIBOR floor” applicable to such Loan on such date and (ii) the forward LIBOR curve (calculated on a quarterly basis) as calculated by the Administrative Agent in accordance with its customary practice during the period from such date to the final maturity date of such Indebtedness; (b) the Applicable Margin for such Loan on such date; and (c) the issue price of such Loan (after giving effect to any original issue discount or upfront fees paid to the market in respect of such Indebtedness (converted to interest margin based on an assumed four year weighted average life) but excluding customary arranger, underwriting, structuring, syndication or other fees not paid to the lenders providing such Indebtedness generally).

 

1.02        Other Interpretive Provisions.  With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

 

(a)           The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i) any definition of or reference to any Law, agreement, instrument or other document (including any Organization Document) shall be construed as referring to such Law, agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Preliminary Statements, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Preliminary Statements, Exhibits and Schedules to the Loan Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.  “Knowledge” shall mean the actual knowledge of a Responsible Officer of the Borrower after reasonable investigation.

 

(b)           In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including”; the words “to” and “until” each mean “to but excluding”; and the word “through” means “to and including.”

 

(c)           Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.

 

1.03        Accounting Terms.  All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the Audited Financial Statements, except as otherwise specifically prescribed herein.

 

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1.04        Rounding.  Any financial ratios required to be maintained by the Borrower pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

 

1.05        Times of Day.  Unless otherwise specified, all references herein to times of day shall be references to New York City time (daylight or standard, as applicable).

 

1.06        Senior Debt.  The Loans and other Obligations are hereby designated as “Senior Debt” and “Designated Senior Debt” (or other similar terms) for all purposes of any Subordinated Indebtedness.

 

1.07        Available Amount Transactions.  If more than one action occurs on any given date the permissibility of the taking of which is determined hereunder by reference to the amount of the Available Amount immediately prior to the taking of such action, the permissibility of the taking of each such action shall be determined independently and in no event may any two or more such actions be treated as occurring simultaneously, i.e., each transaction must be permitted under the Available Amount as so calculated.

 

1.08        Pro Forma Calculations.

 

(a)           Notwithstanding anything to the contrary herein, the Consolidated Leverage Ratio shall be calculated in the manner prescribed by this Section 1.08; provided that, notwithstanding anything to the contrary in clauses (b), (c) or (d) of this Section 1.08, when calculating the Consolidated Leverage Ratio for purposes of Section 2.03(b)(i), the events described in this Section 1.08 that occurred subsequent to the end of the applicable Measurement Period shall not be given pro forma effect.

 

(b)           For purposes of calculating the Consolidated Leverage Ratio, Specified Transactions (and the incurrence or repayment of any Indebtedness in connection therewith) that have been made (i) during the applicable Measurement Period or (ii) subsequent to such Measurement Period and prior to or simultaneously with the event for which the calculation of any such ratio is made shall be calculated on a pro forma basis assuming that all such Specified Transactions (and any increase or decrease in Consolidated EBITDA and the component financial definitions used therein attributable to any Specified Transaction) had occurred on the first day of the applicable Measurement Period.  If since the beginning of any applicable Measurement Period any Person that subsequently became a Restricted Subsidiary or was merged, amalgamated or consolidated with or into the Borrower or any of its Restricted Subsidiaries since the beginning of such Measurement Period shall have made any Specified Transaction that would have required adjustment pursuant to this Section 1.08, then the Consolidated Leverage Ratio shall be calculated to give pro forma effect thereto in accordance with this Section 1.08.

 

(c)           Whenever pro forma effect is to be given to a Specified Transaction, the pro forma calculations shall be made in good faith by a responsible financial or accounting officer of the Borrower and may include, for the avoidance of doubt, the amount of cost savings and synergies projected by the Borrower in good faith to be realized as a result of specified actions taken, committed to be taken or expected to be taken (calculated on a pro forma basis as though such cost savings and synergies had been realized on the first day of such period and as if such cost savings and synergies were realized during the entirety of such period) relating to such Specified Transaction, net of the amount of actual benefits theretofore realized during such period from such actions; provided that (A) such amounts are reasonably identifiable, quantifiable and supportable in the good faith judgment of the Borrower, (B) such actions are taken, committed to be taken or expected to be taken no later than twelve (12) months after the date of such

 

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Specified Transaction, (C) no amounts shall be added pursuant to this clause (c) to the extent duplicative of any amounts that are otherwise added back in computing Consolidated EBITDA, whether through a pro forma adjustment or otherwise, with respect to such period and (D) the aggregate amount of cost savings and synergies added pursuant to this clause (c) for any such period after the Closing Date shall not exceed 10% of Consolidated EBITDA for such Measurement Period (giving pro forma effect to the relevant Specified Transaction (but not to any cost savings or synergies)).

 

(d)           In the event that the Borrower or any Restricted Subsidiary incurs (including by assumption or guarantees) or repays (including by redemption, repayment, retirement or extinguishment) any Indebtedness included in the calculations of the Consolidated Leverage Ratio, as the case may be (in each case, other than Indebtedness incurred or repaid under any revolving credit facility in the ordinary course of business for working capital purposes), (i) during the applicable Measurement Period or (ii) subsequent to the end of the applicable Measurement Period and prior to or simultaneously with the event for which the calculation of any such ratio is made, then the Consolidated Leverage Ratio shall be calculated giving pro forma effect to such incurrence or repayment of Indebtedness, to the extent required, as if the same had occurred on the last day of the applicable Measurement Period.

 

1.09        Interest Rates.  The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the rates in the definition of “LIBO Rate” or with respect to any comparable or successor rate thereto, or replacement rate therefor.

 

ARTICLE II
 THE COMMITMENTS AND BORROWINGS

 

2.01        The Loans.

 

(a)           Subject to the terms and conditions set forth herein, (i) the Additional Term B Lender agrees to make to the Borrower a loan denominated in Dollars (together with each Loan converted from a Converted Initial Loan pursuant to clause (ii) below, a “Term B Loan”) on the Amendment No. 2 Effective Date equal to the Additional Term B Commitment and (ii) each Converted Initial Loan of each Amendment No. 2 Consenting Lender shall be converted into a Term B Loan of such Lender effective as of the Amendment No. 2 Effective Date in a principal amount equal to the principal amount of such Lender’s Converted Initial Loan immediately prior to such conversion; provided that the Term B Loans shall initially consist of LIBO Rate Loans with an Interest Period commencing on the Amendment No. 2 Effective Date and ending on December 31, 2013 and the LIBO Rate for such Interest Period shall be deemed to be 1.00%.

 

(b)           Subject to the terms and conditions set forth herein, (i) the Additional Term B-1 Lender agrees to make to the Borrower a loan denominated in Dollars (together with each Loan converted from a Converted Term B Loan pursuant to clause (ii) below, a “Term B-1 Loan”) on the Amendment No. 4 Effective Date equal to the Additional Term B-1 Commitment and (ii) each Converted Term B Loan of each Amendment No. 4 Consenting Lender shall be converted into a Term B-1 Loan of such Lender effective as of the Amendment No. 4 Effective Date in a principal amount equal to the principal amount of such Lender’s Converted Term B Loan immediately prior to such conversion; provided that the Term B-1 Loans shall initially consist of LIBO Rate Loans with an Interest Period commencing on the Amendment No. 4 Effective Date and ending on September 29, 2017 and the LIBO Rate for such Interest Period shall be deemed to be 1.296390%.

 

(c)           Subject to the terms and conditions set forth herein, (i) the Additional Term B-2 Lender agrees to make to the Borrower a loan denominated in Dollars (together with each Loan converted from a Converted Term B-1 Loan pursuant to clause (ii) below, a “Term B-2 Loan”) on the Amendment No.

 

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5 Effective Date equal to the Additional Term B-2 Commitment and (ii) each Converted Term B-1 Loan of each Amendment No. 5 Consenting Lender shall be converted into a Term B-2 Loan of such Lender effective as of the Amendment No. 5 Effective Date in a principal amount equal to the principal amount of such Lender’s Converted Term B-1 Loan immediately prior to such conversion; provided that the Term B-2 Loans shall initially consist of LIBO Rate Loans with an Interest Period commencing on the Amendment No. 5 Effective Date and ending on September 28, 2018 and the LIBO Rate for such Interest Period shall be deemed to be 2.075880%.

 

(d)           (c) Each Lender having an Incremental Term Loan Commitment severally agrees, subject to the terms and conditions and relying upon the representations and warranties set forth herein and in the applicable Additional Credit Extension Amendment, to make Incremental Term Loans to the Borrower, in an aggregate principal amount not to exceed its Incremental Term Loan Commitment.  Each Incremental Term Borrowing shall consist of Incremental Term Loans made simultaneously by the applicable Incremental Term Lenders in accordance with their respective Incremental Term Loan Commitments.

 

(e)           (d) Amounts borrowed under this Section 2.01 and repaid or prepaid may not be reborrowed.  Loans may be Base Rate Loans or LIBO Rate Loans as further provided herein.  The failure of any Lender to make any Loan shall neither relieve any other Lender of its obligation to fund its Loan in accordance with the provisions of this Agreement nor increase the obligation of any such other Lender.

 

2.02        Borrowings, Conversions and Continuations of Loans.

 

(a)           Each Borrowing, each conversion of Loans from one Type to the other, and each continuation of LIBO Rate Loans shall be made upon the Borrower’s irrevocable notice to the Administrative Agent, which may be given by telephone.  Each such notice must be received by the Administrative Agent not later than 2:00 p.m. (i) three Business Days prior to the requested date of the Borrowing of, conversion to or continuation of LIBO Rate Loans or of any conversion of LIBO Rate Loans to Base Rate Loans and (ii) one Business Day prior to the requested date of the Borrowing of Base Rate Loans (except that the notice of the Borrowing of Term B-12 Loans on the Amendment No. 45 Effective Date may be provided on such shorter notice as may be agreed by the Administrative Agent).  Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written Committed Loan Notice or Conversion/Continuation Notice, as the case may be, appropriately completed and signed by a Responsible Officer of the Borrower.  The Borrowing of, conversion to or continuation of LIBO Rate Loans (other than Term B-12 Loans on the Amendment No. 45 Effective Date) shall be in a principal amount of $2.0 million or a whole multiple of $1.0 million in excess thereof.  The Borrowing of or conversion to Base Rate (other than Term B-12 Loans on the Amendment No. 45 Effective Date) Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof.  Each Committed Loan Notice (whether telephonic or written) shall specify (i) the requested date of the Borrowing (which shall be a Business Day), (ii) the principal amount of Loans to be borrowed, (iii) the Class of Loans to which such notice relates, (iv) the Type of Loans to be borrowed, and (v) if applicable, the duration of the Interest Period with respect thereto.  Each Conversion/Notice (whether telephonic or written) shall specify the Class of Loans to which such notice relates and (i) whether the Borrower is requesting a conversion of Committed Loans from one Type to the other, or a continuation of LIBO Rate Loans, (ii) the requested date of the conversion or continuation (which shall be a Business Day), (iii) the principal amount of Loans to be converted or continued, (iv) if applicable, the Type of Loans to which existing Loans are to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto.  If the Borrower fails to specify a Type of Loan in a Committed Loan Notice or if the Borrower fails to give a timely notice of a conversion or continuation in a Conversion/Notice, then the Loans shall be made as, or converted to, Base Rate Loans.  Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with

 

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respect to the applicable LIBO Rate Loans.  If the Borrower requests a Borrowing of LIBO Rate Loans in any such Committed Loan Notice or a conversion to or continuation of LIBO Rate Loans in a Conversion/Continuation Notice, but fails to specify an Interest Period, the Borrower will be deemed to have specified an Interest Period of one month.  For the avoidance of doubt, the notice of Borrowing of the Term B-12 Loans on the Amendment No. 45 Effective Date is only required with respect to the Term B-12 Loans of the Additional Term B-12 Lender (it being understood that such notice of Borrowing shall specify the conversion of Term B-1 Loans of Amendment No. 45 Consenting Lenders pursuant to Section 2.01(bc)).

 

(b)           Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly notify each applicable Lender of the amount of its share of such Loan (based on the respective Commitments of the Lenders of the applicable Class) with respect to the Loans referred to in such Committed Loan Notice, and if no timely notice of a conversion or continuation in a Conversion/Continuation Notice is provided by the Borrower, the Administrative Agent shall notify each such Lender of the details of any automatic conversion to Base Rate Loans described in Section 2.02(a).  Each applicable Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at the Administrative Agent’s Office not later than 1:00 p.m. on the Business Day specified in the applicable Committed Loan Notice.  Upon satisfaction of the conditions set forth in Section 4.01 (or, if such Borrowing is an Incremental Term Borrowing, the conditions set forth in the applicable Additional Credit Extension Amendment and Section 2.12), the Administrative Agent shall use reasonable efforts to make all funds so received available to the Borrower in like funds by no later than 4:00 p.m. on the day of receipt by the Administrative Agent either by (i) crediting the account of the Borrower on the books of JPMCB with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Borrower.

 

(c)           Except as otherwise provided herein, a LIBO Rate Loan may be continued or converted only on the last day of an Interest Period for such LIBO Rate Loan.  During the existence of an Event of Default, no Loans may be requested as, converted to or continued as LIBO Rate Loans without the consent of the Required Lenders.

 

(d)           The Administrative Agent shall promptly notify the Borrower and the Lenders of the interest rate applicable to any Interest Period for LIBO Rate Loans upon determination of such interest rate.  At any time that Base Rate Loans are outstanding, the Administrative Agent shall notify the Borrower and the Lenders of any change in JPMorgan’s prime rate used in determining the Base Rate promptly following the public announcement of such change.

 

(e)           After giving effect to all Borrowings, all conversions of Loans from one Type to the other, and all continuations of Loans as the same Type, there shall not be more than ten (10) Interest Periods in effect with respect to all Loans.

 

2.03        Prepayment.

 

(a)           Optional.  The Borrower may, upon notice to the Administrative Agent (which notice, if furnished in connection with a refinancing of the Obligations, may be conditional upon the consummation of such refinancing), at any time or from time to time voluntarily prepay Loans of any Class in whole or in part without premium or penalty (except as provided in Section 2.14); provided, however, that no prepayments of any Extended Term Loans of any series shall be permitted pursuant to this Section 2.03(a) so long as any Loans of any Existing Term Loan Class from which such Extended Term Loans were converted remain outstanding unless such prepayment is accompanied by a pro rata (or greater proportionate) prepayment of Loans of such Existing Term Loan Class; provided, further, that (i) such

 

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notice must be received by the Administrative Agent not later than 2:00 p.m. (A) one Business Day prior to any date of prepayment of LIBO Rate Loans and (B) on the date of prepayment of Base Rate Loans; (ii) any prepayment of LIBO Rate Loans shall be in a principal amount of $2.0 million or a whole multiple of $1.0 million in excess thereof; and (iii) any prepayment of Base Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding.  Each such notice shall specify the date and amount of such prepayment, the Class and Type(s) of Loans to be prepaid and, if LIBO Rate Loans are to be prepaid, the Interest Period(s) of such Loans.  The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender’s share of such prepayment (which shall be based on the respective principal amounts of Loans of the applicable Class held by each Lender).  If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein except that, subject to Section 3.05, any such notice in connection with a refinancing of all Loans may be conditioned upon obtaining the proceeds of a new financing.  Any prepayment of a LIBO Rate Loan shall be accompanied by all accrued interest on the amount prepaid, together with any additional amounts required pursuant to Section 3.05.  Optional prepayments of the Loans of any Class shall be applied against the remaining scheduled installments of principal due in respect of the Loans of such Class as directed by the Borrower (or, if the Borrower shall fail to provide such direction, in direct order of maturity against the remaining scheduled installments due in respect of the Loans and Other Term Loans under Section 2.05).

 

(b)           Mandatory.

 

(i)            Within five Business Days after financial statements have been (or were required to have been) delivered pursuant to Section 6.01(a) and the related Compliance Certificate has been (or is required to have been) delivered pursuant to Section 6.02(a), the Borrower shall prepay an aggregate principal amount of Loans equal to the excess (if any) of (A) 7550% of Excess Cash Flow for the Fiscal Year of Holdings (commencing with the Fiscal Year ending February 23, 2013) covered by (or which would have been covered by) such financial statements over (B) the aggregate principal amount of Loans prepaid or repaid pursuant to Section 2.03(a) or Section 2.05(a) during the Fiscal Year of Holdings covered by (or which would have been covered by) such financial statements or in the subsequent Fiscal Year prior to the date of any required payment pursuant to this Section 2.03(b)(i), except (x) with respect to any prepayments or repayments pursuant to Section 2.03(a), to the extent such prepayments or repayments occurred in connection with a refinancing of such Loans with other Indebtedness (such prepayments to be applied as set forth in clause (b)(v) below) or (y, (y) with respect to any prepayments or repayments pursuant to Section 2.05(a) that were made with the proceeds of loans under the ABL Facility (the “ABL Proceeds Loans”), to the extent such ABL Proceeds Loans have not been repaid (or been repaid with a refinancing of such Loans with other Indebtedness) on or prior to the last day of Holdings’ Fiscal Year ending March 30, 2019 or (z) if an amount is deducted pursuant to a payment made in a subsequent Fiscal Year, the same amount may not be deducted in the calculation of Excess Cash Flow in the subsequent Fiscal Year; provided that (x) such percentage of Excess Cash Flow shall be reduced to 50% of such Excess Cash Flow if the Consolidated Leverage Ratio at the end of such Fiscal Year is equal to or less than 3.25 to 1.00 but greater than 2.75 to 1.00, (y1) such percentage of Excess Cash Flow shall be reduced to 25% of such Excess Cash Flow if the Consolidated Leverage Ratio at the end of such Fiscal Year is equal to or less than 2.752.50 to 1.00 but greater than 2.00 to 1.00 and (z2) such prepayment shall not be required if the Consolidated Leverage Ratio at the end of such Fiscal Year is equal to or less than 2.00 to 1.00.

 

(ii)           If the Borrower or any of its Restricted Subsidiaries Disposes of any property (other than any Disposition of any property permitted by Section 7.05(a), (b), (c), (d), (e), (g), (i) or (j)) which results in the realization by such Person of Net Cash Proceeds, the Borrower shall prepay an aggregate principal amount of Loans equal to 100% of such Net Cash Proceeds promptly (and in any event within ten Business Days) following receipt thereof by such Person (such prepayments to be applied as set

 

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forth in clause (v) below); provided, however, that so long as no Event of Default shall have occurred and be continuing, the Borrower or any other Restricted Subsidiary may reinvest all or any portion of such Net Cash Proceeds in assets that the Borrower determines in good faith are used or useful in the business of the Borrower or the Restricted Subsidiaries (including acquisitions permitted under Section 7.03(h) and inventory) so long as (A) within ten Business Days of receiving such Net Cash Proceeds the Borrower shall have delivered a certificate to the Administrative Agent stating that such Person intends to reinvest all or any portion of such Net Cash Proceeds in such assets, (B) within 365 days after the receipt of such Net Cash Proceeds, the Borrower shall have entered into a binding commitment to reinvest such proceeds in such assets, and (C) such Net Cash Proceeds are reinvested in such assets within 180 days of the date such commitment is entered into (as certified by the Borrower in writing to the Administrative Agent); provided, further, however, that (A) if the property subject to such Disposition constituted Collateral under the Collateral Documents, then all property purchased with the Net Cash Proceeds thereof pursuant to this subsection shall be made subject to the Lien of the applicable Collateral Documents in favor of the Collateral Agent, for its benefit and for the benefit of the other Credit Parties in accordance with Section 6.12, and (B) pending reinvestment, any Net Cash Proceeds in respect of Term Priority Collateral in excess of $5.0 million shall be segregated from other funds of the Borrower and its Subsidiaries in a deposit account subject to a control agreement in favor of the Collateral Agent; and provided, further, however, that any Net Cash Proceeds not so reinvested within the time periods specified above shall be immediately applied to the prepayment of the Loans as set forth in this Section 2.03(b)(ii).

 

(iii)          Upon the incurrence or issuance by Borrower or any of its Restricted Subsidiaries of any Refinancing Indebtedness or any Indebtedness not permitted to be incurred or issued pursuant to Section 7.02, the Borrower shall prepay an aggregate principal amount of Loans equal to 100% of all Net Cash Proceeds received therefrom promptly (and in any event within one week) following receipt thereof by such Person (such prepayments to be applied as set forth in clause (v) below).

 

(iv)          Upon any Extraordinary Receipt being received by or paid to or for the account of Borrower or any of its Restricted Subsidiaries, and not otherwise included in clause (ii) of this Section 2.03(b), the Borrower shall prepay an aggregate principal amount of Loans equal to 100% of all Net Cash Proceeds received therefrom promptly (and in any event within ten Business Days) following receipt thereof by such Person (such prepayments to be applied as set forth in clause (v) below); provided, however, that with respect to any proceeds of insurance and condemnation awards (or payments in lieu thereof), and so long as no Event of Default shall have occurred and be continuing, such Person may apply such Net Cash Proceeds to replace or repair the equipment, fixed assets or real property in respect of which such Net Cash Proceeds were received or to invest in assets that the Borrower determines in good faith are used or useful in the business of the Borrower or the Restricted Subsidiaries (including acquisitions permitted under Section 7.03(h) and inventory) so long as (A) within ten Business Days of receiving such Net Cash Proceeds the Borrower shall have delivered a certificate to the Administrative Agent stating that such Person intends to reinvest all or such portion of such Net Cash Proceeds to replace or repair the equipment, fixed assets or real property in respect of which such cash proceeds were received or to invest in such assets, (B) within 365 days after the receipt of such Net Cash Proceeds, the Borrower shall have entered into a binding commitment to reinvest such proceeds to replace or repair equipment, fixed assets or real property or to invest in such assets, and (C) such Net Cash Proceeds are so used within 180 days of the date such commitment is entered into (as certified by the Borrower in writing to the Administrative Agent); provided, further, however, that (A) if the property subject to such Extraordinary Receipt constituted Collateral under the Collateral Documents, then all property purchased with the Net Cash Proceeds thereof pursuant to this subsection shall be made subject to the Lien of the applicable Collateral Documents in favor of the Collateral Agent, for its benefit and for the benefit of the other Credit Parties in accordance with Section 6.12 and (B) pending reinvestment, any Net Cash Proceeds in respect of Term Priority Collateral in excess of $5.0 million shall be segregated from the other funds of Holdings and its Subsidiaries in a deposit account subject to a control agreement in favor of the Collateral Agent; provided, further, however, that any

 

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cash proceeds not so applied shall be immediately applied to the prepayment of the Loans as set forth in this Section 2.03(b)(iv).

 

(v)           Each prepayment of Loans pursuant to the foregoing provisions of this Section 2.03(b) (other than from the Net Cash Proceeds of Refinancing Indebtedness which will be applied to the Class or Classes of Term Loans selected by the Borrower) shall be allocated ratably between the Term Loans and, unless otherwise provided in the Additional Credit Extension Amendment providing for such other Class of Loans, each other Class of Loans and shall be applied to the remaining scheduled principal payments thereof in direct order of maturity (or as otherwise specified by the Borrower).  Any Lender may elect, by notice to the Administrative Agent at or prior to the time and in the manner specified by the Administrative Agent, prior to any prepayment of Loans to be made pursuant to clause (i), (ii) or (iv) of this Section 2.03(b), to decline all (but not a portion) of its pro rata share of such prepayment (such declined amounts “Declined Proceeds”).  Any Declined Proceeds shall be offered to the Lenders of the applicable Class or Classes not so declining such prepayment (with such Lenders having the right to decline any prepayment with Declined Proceeds at the time and in the manner specified by the Administrative Agent).

 

Notwithstanding any of the other provisions of clauses (i), (ii), or (iv) of this Section 2.03(b), so long as no Default under Section 8.01(a) or Section 8.01(f) or Event of Default shall have occurred and be continuing, if, on any date on which a prepayment would otherwise be required to be made pursuant to clauses (i), (ii), or (iv) of this Section 2.03(b), the aggregate amount of Net Cash Proceeds required by such clause to be applied to prepay Loans on such date is less than or equal to $5.0 million, the Borrower may defer such prepayment until the first date on which the aggregate amount of Net Cash Proceeds or other amounts otherwise required under clause (i), (ii), or (iv) of this Section 2.03(b) to be applied to prepay Loans exceeds $5.0 million.  Upon the occurrence of a Default under Section 8.01(a) or Section 8.01(f) or an Event of Default during any such deferral period, the Borrower shall immediately prepay the Loans in the amount of all Net Cash Proceeds received by the Borrower and other amounts, as applicable, that are required to be applied to prepay Loans under this Section 2.03(b) (without giving effect to the first sentence of this clause (v)) but which have not previously been so applied.  Any prepayment of a LIBO Rate Loan shall be accompanied by all accrued interest on the amount prepaid, together with any additional amount required pursuant to Section 3.05.

 

(vi)          The Borrower shall deliver to the Administrative Agent, (x) at the time of each prepayment required under this Section 2.03(b), a certificate signed by a Responsible Officer of the Borrower setting forth in reasonable detail the calculation of the amount of such prepayment and (y) to the extent practicable, at least three days’ prior written notice of such prepayment.  Each notice of prepayment shall specify the prepayment date, the Type of each Loan being prepaid and the principal amount of each Loan (or portion thereof) to be prepaid.

 

(c)           The prepayments of the Loans pursuant to Section 2.03(b)(i), (ii) or (iv), to the extent the Net Cash Proceeds giving rise to the requirement to make a prepayment pursuant to one of such clauses are generated by a Foreign Subsidiary, shall be subject to (x) permissibility under local law relating to financial assistance, corporate benefit, restrictions on upstreaming of cash intra-group and the fiduciary and statutory duties of the directors of such Foreign Subsidiary and (y) restrictions in its material organizational documents and in agreements governing Indebtedness of such Foreign Subsidiary (including as a result of minority ownership) (each restriction referred to in clauses (i) and (ii), a “Restriction”).  Further, there will be no requirement to make any such prepayment where a Responsible Officer of the Borrower delivers a certificate to the Administrative Agent stating that it would incur a material tax liability by doing so, including a material deemed dividend pursuant to Section 956 of the Internal Revenue Code. The non-application and nonpayment of any prepayment amounts pursuant to Sections 2.03(b)(i), (ii) or (iv) as a consequence of this Section 2.03(c) will not, for the avoidance of doubt, constitute a Default or an Event of Default, and such prepayment amounts shall be available for working capital purposes of

 

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Borrower and its Restricted Subsidiaries as long as not required to be prepaid in accordance with the following provisions.  Borrower and its Restricted Subsidiaries will use and shall procure that any of their Subsidiaries will use commercially reasonable efforts to overcome or eliminate any Restrictions and/or minimize any such costs of prepayment and/or use the other cash resources of Borrower and its Subsidiaries (subject to the considerations above) to make the relevant prepayment.  If at any time within one year of a prepayment being forgiven due to a Restriction, such Restriction is removed, any relevant proceeds will at the end of the then current Interest Period (or, if Base Rate Loans are then outstanding, immediately) be applied in accordance with the applicable prepayment provision above (net of any reasonable costs, expenses or taxes incurred by Borrower and its Restricted Subsidiaries and arising exclusively as a result of compliance with the preceding sentence).

 

(d)           Discounted Voluntary Prepayments.

 

(i)            Notwithstanding anything to the contrary in Section 2.03(a) (which provisions shall not be applicable to this Section 2.03(d)), the Borrower shall have the right at any time and from time to time to prepay its Loans of any Class owing to Lenders electing to participate in such prepayments at a discount to the par value of such Loans and on a non-pro rata basis (each, a “Discounted Voluntary Prepayment”) pursuant to the procedures described in this Section 2.03(d); provided that (A) no Discounted Voluntary Prepayment shall be made unless immediately after giving effect to such Discounted Voluntary Prepayment, no Default or Event of Default has occurred and is continuing, (B) any Discounted Voluntary Prepayment shall be offered to all Lenders with Loans of the applicable Class on a pro rata basis and (C) the Borrower on the date such Discounted Voluntary Prepayment is made shall deliver to the Administrative Agent a certificate of a Responsible Officer of the Borrower stating (1) that no Default or Event of Default has occurred and is continuing or would result from the Discounted Voluntary Prepayment, (2) that each of the conditions to such Discounted Voluntary Prepayment contained in this Section 2.03(d) has been satisfied or waived and (3) neither the Borrower nor any of its Affiliates has any non-public information with respect to any Loan Party or the Loans that has not been disclosed to the Lenders (other than to Public Lenders) that would reasonably be expected to be material to a Lender’s decision to participate in a Discounted Voluntary Prepayment.

 

(ii)           To the extent the Borrower seeks to make a Discounted Voluntary Prepayment, the Borrower will provide written notice to the Administrative Agent substantially in the form of Exhibit B hereto (each, a “Discounted Prepayment Option Notice”) that the Borrower desires to prepay Loans in an aggregate principal amount specified therein by the Borrower (each, a “Proposed Discounted Prepayment Amount”), in each case at a discount to the par value of such Loans as specified below.  The Proposed Discounted Prepayment Amount of Loans shall not be less than $10.0 million.  The Discounted Prepayment Option Notice shall further specify with respect to the proposed Discounted Voluntary Prepayment: (A) the Proposed Discounted Prepayment Amount for Loans and the Class of Loans to which such offer relates, (B) a discount range (which may be a single percentage) selected by the Borrower with respect to such proposed Discounted Voluntary Prepayment equal to a percentage of par of the principal amount of such Loans (the “Discount Range”) and (C) the date by which Lenders are required to indicate their election to participate in such proposed Discounted Voluntary Prepayment which shall be at least three Business Days following the date of the Discounted Prepayment Option Notice (the “Acceptance Date”).

 

(iii)          Upon receipt of a Discounted Prepayment Option Notice in accordance with Section 2.03(d)(ii), the Administrative Agent shall promptly notify each applicable Lender thereof.  On or prior to the Acceptance Date, each Lender with Loans may specify by written notice substantially in the form of Exhibit G hereto (each, a “Lender Participation Notice”) to the Administrative Agent (A) a maximum discount to par (the “Acceptable Discount”) within the Discount Range (for example, a Lender specifying a discount to par of 20% would accept a prepayment price of 80% of the par value of the Loans to be prepaid) and (B) a maximum principal amount (subject to rounding requirements specified by the

 

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Administrative Agent) of Loans of the applicable Class held by such Lender with respect to which such Lender is willing to permit a Discounted Voluntary Prepayment at the Acceptable Discount (“Offered Loans”).  Based on the Acceptable Discounts and principal amounts of Loans specified by the Lenders in Lender Participation Notices, the Administrative Agent, in consultation with the Borrower, shall calculate the applicable discount for Loans (the “Applicable Discount”), which Applicable Discount shall be (A) the percentage specified by the Borrower if the Borrower has selected a single percentage pursuant to Section 2.03(d)(ii) for the Discounted Voluntary Prepayment or (B) otherwise, the highest Acceptable Discount at which the Borrower can pay the Proposed Discounted Prepayment Amount in full (determined by adding the principal amounts of Offered Loans commencing with the Offered Loans with the highest Acceptable Discount); provided, however, that in the event that such Proposed Discounted Prepayment Amount cannot be repaid in full at any Acceptable Discount, the Applicable Discount shall be the lowest Acceptable Discount specified by the Lenders that is within the Discount Range.  The Applicable Discount shall be applicable for all Lenders who have offered to participate in the Discounted Voluntary Prepayment and have Qualifying Loans (as defined below).  Any Lender with outstanding Loans under the applicable Class whose Lender Participation Notice is not received by the Administrative Agent by the Acceptance Date shall be deemed to have declined to accept a Discounted Voluntary Prepayment of any of its Loans at any discount to their par value within the Applicable Discount.

 

(iv)          The Borrower shall make a Discounted Voluntary Prepayment by prepaying those Loans (or the respective portions thereof) of the applicable Class offered by the Lenders (“Qualifying Lenders”) that specify an Acceptable Discount that is equal to or greater than the Applicable Discount (“Qualifying Loans”) at the Applicable Discount; provided that if the aggregate proceeds required to prepay all Qualifying Loans (disregarding any interest payable at such time) would exceed the amount of aggregate proceeds required to prepay the Proposed Discounted Prepayment Amount, such amounts in each case calculated by applying the Applicable Discount, the Borrower shall prepay such Qualifying Loans ratably among the Qualifying Lenders based on their respective principal amounts of such Qualifying Loans (subject to rounding requirements specified by the Administrative Agent).  If the aggregate proceeds required to prepay all Qualifying Loans (disregarding any interest payable at such time) would be less than the amount of aggregate proceeds required to prepay the Proposed Discounted Prepayment Amount, such amounts in each case calculated by applying the Applicable Discount, the Borrower shall prepay all Qualifying Loans.

 

(v)           Each Discounted Voluntary Prepayment shall be made within five Business Days of the Acceptance Date, without premium or penalty, upon irrevocable notice substantially in the form of Exhibit I hereto (each a “Discounted Voluntary Prepayment Notice”), delivered to the Administrative Agent no later than 1:00 p.m. New York City time, two Business Days prior to the date of such Discounted Voluntary Prepayment, which notice shall specify the date and amount of the Discounted Voluntary Prepayment and the Applicable Discount determined by the Administrative Agent.  Upon receipt of any Discounted Voluntary Prepayment Notice the Administrative Agent shall promptly notify each relevant Lender thereof.  If any Discounted Voluntary Prepayment Notice is given, the amount specified in such notice shall be due and payable to the applicable Lenders, subject to the Applicable Discount on the applicable Loans, on the date specified therein together with accrued interest (on the par principal amount) to, but not including, such date on the amount prepaid.

 

(vi)          To the extent not expressly provided for herein, each Discounted Voluntary Prepayment shall be consummated pursuant to reasonable procedures (including as to timing, rounding, minimum amounts, Type and Interest Periods and calculation of Applicable Discount in accordance with Section 2.03(d)(iii) above) reasonably established by the Administrative Agent and the Borrower.

 

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(vii)         Prior to the delivery of a Discounted Voluntary Prepayment Notice, upon written notice to the Administrative Agent, the Borrower may withdraw its offer to make a Discounted Voluntary Prepayment pursuant to any Discounted Prepayment Option Notice.

 

(viii)        To the extent the Loans are prepaid pursuant to this Section 2.03(d), scheduled amortization amounts for the Loans of such Class under Section 2.05 shall be reduced on a pro rata basis by the principal amount of the Loans so prepaid.

 

(ix)          For the avoidance of doubt, any Loans that are prepaid pursuant to this Section 2.03(d) shall be deemed canceled immediately upon giving effect to such prepayment.

 

2.04        Termination or Reduction of Commitments.  The Aggregate Commitments (other than the Additional Term B Commitment, Additional Term B-1 Commitment or Additional Term B-12 Commitment) shall be automatically and permanently reduced to zero on the date of the initial Borrowing (other than any Incremental Term Loan Commitments, which shall terminate as provided in the related Additional Credit Extension Amendment).  The Additional Term B Commitment shall be automatically and permanently reduced to zero upon the making of the Additional Term B Lender’s Additional Term B Loans pursuant to Section 2.01(a).  The Additional Term B-1 Commitment shall be automatically and permanently reduced to zero upon the making of the Additional Term B-1 Lender’s Additional Term B-1 Loans pursuant to Section 2.01(b). The Additional Term B-2 Commitment shall be automatically and permanently reduced to zero upon the making of the Additional Term B-2 Lender’s Additional Term B-2 Loans pursuant to Section 2.01(c).

 

2.05        Repayment of Loans.

 

(a)           The Borrower shall repay all Term B-1 Loans that are not Converted Term B-1 Loans on the Amendment No. 45 Effective Date.

 

(b)           [Reserved]

 

(c)           The Borrower shall repay to the Administrative Agent for the ratable account of the Lenders with Initial Loans that are not Converted Initial Loans, all Initial Loans that are not Converted Initial Loans on the Amendment No. 2 Effective Date.

 

(d)           The Borrower shall repay to the Lenders on each March 31, June 30, September 30 and December 31 prior to the Maturity Date, an aggregate principal amount equal to 0.625% of the initial principal amount of Term B-12 Loans outstanding on the Amendment No. 45 Effective Date (as adjusted from time to time pursuant to Sections 2.03(a), 2.03(b)(v), 2.03(d)(viii) and 2.12). To the extent not previously paid, all Term B-12 Loans shall be due and payable on the Maturity Date.

 

(e)           Payments or principal on Other Term Loans, Extended Term Loans and Replacement Loans shall be required as provided in the applicable Additional Credit Extension Amendment.

 

(f)            All repayments pursuant to this Section 2.05 shall (i) be subject to Section 3.05, but shall otherwise be without premium or penalty and (ii) be accompanied by accrued and unpaid interest on the principal amount to be paid.

 

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2.06        Interest.

 

(a)           Subject to the provisions of Section 2.06(b), (i) each Loan which is a LIBO Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the LIBO Rate for such Interest Period plus the Applicable Margin; and (ii) each Loan which is a Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Margin.

 

(b)           If any amount owed under this Agreement is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.  Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

 

(c)           Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

 

2.07        Fees.  The Borrower shall pay to the Arrangers and the Administrative Agent for their own respective accounts fees in the amounts and at the times specified in the letter agreements entered into by the Borrower, the Administrative Agent and the Arrangers.  Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

 

2.08        Computation of Interest and Fees.  All computations of interest for Base Rate Loans when the Base Rate is determined by the Administrative Agent’s “prime rate” shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year).  Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.10(a), bear interest for one day.  Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.

 

2.09        Evidence of Debt.  The Loans made by each Lender shall be evidenced by one or more accounts or records maintained by the Administrative Agent in the ordinary course of business.  In addition, each Lender may record in such Lender’s internal records an appropriate notation evidencing the date and amount of each Loan from such Lender, each payment and prepayment of principal of any such Loan, and each payment of interest, fees and other amounts due in connection with the Obligations due to such Lender.  The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive, absent manifest error, of the amount of the Loans made by the Lenders to the Borrower and the interest and payments thereon.  Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations.  In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.  Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence such Lender’s Loans (in addition to such Lender’s accounts or records).  Each Lender may attach schedules to its Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto.  Upon receipt of an affidavit of a Lender as to the loss, theft, destruction or mutilation of such Lender’s Note and upon

 

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cancellation of such Note, the Borrower will issue, in lieu thereof, a replacement Note in favor of such Lender, in the same principal amount thereof and otherwise of like tenor.

 

2.10        Payments Generally; Administrative Agent’s Clawback.

 

(a)           General.  All payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date specified herein.  The Administrative Agent will promptly distribute to each Lender its share of such payment in like funds as received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.

 

(b)           (i)            Funding by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing of Loans that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with Section 2.02 (or in the case of a Borrowing of Base Rate Loans, that such Lender has made such share available in accordance with and at the time required by Section 2.02) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation plus any administrative processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing, and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans.  If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included in such Borrowing.  Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

 

(ii)           Payments by Borrower; Presumptions by Administrative Agent.  Unless the Administrative Agent shall have received notice from the Borrower prior to the time at which any payment is due to the Administrative Agent for the account of the Lenders hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders the amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

 

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A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount owing under this subsection (b) shall be conclusive, absent manifest error.

 

(c)           Failure to Satisfy Conditions Precedent.  If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to the Borrower by the Administrative Agent because the conditions to the applicable Borrowing set forth in Article IV or in the applicable Additional Credit Extension Amendment, as applicable, are not satisfied or waived in accordance with the terms hereof or thereof, the Administrative Agent shall return such funds (in like funds as received from such Lender) to such Lender, without interest.

 

(d)           Obligations of Lenders Several.  The obligations of the Lenders hereunder to make Committed Loans and to make payments pursuant to Section 11.04(c) are several and not joint.  The failure of any Lender to make any Committed Loan or to make any payment under Section 11.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Committed Loan or to make its payment under Section 11.04(c).

 

(e)           Funding Source.  Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.

 

(f)            Insufficient Funds.  If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, interest and fees then due hereunder, such funds shall be applied (i) first, toward payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, toward payment of principal then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal then due to such parties.

 

2.11        Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of (a) Obligations due and payable to such Lender hereunder and under the other Loan Documents at such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations due and payable to such Lender at such time to (ii) the aggregate amount of the Obligations due and payable to all Lenders hereunder and under the other Loan Documents at such time) of payments on account of the Obligations due and payable to all Lenders hereunder and under the other Loan Documents at such time obtained by all the Lenders at such time or (b) Obligations owing (but not due and payable) to such Lender hereunder and under the other Loan Documents at such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations owing (but not due and payable) to such Lender at such time to (ii) the aggregate amount of the Obligations owing (but not due and payable) to all Lenders hereunder and under the other Loan Parties at such time) of payment on account of the Obligations owing (but not due and payable) to all Lenders hereunder and under the other Loan Documents at such time obtained by all of the Lenders at such time, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of Obligations then due and payable to the Lenders or owing (but not due and payable) to the Lenders, as the case may be, provided that:

 

(i)      if any such participations or subparticipations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations or subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

 

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(ii)     the provisions of this Section 2.11 shall not be construed to apply to (x) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant in accordance with this Agreement.

 

Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Loan Party in the amount of such participation.

 

2.12        Incremental Term Loan Commitments.

 

(a)           The Borrower may, by written notice to the Administrative Agent from time to time, request Incremental Term Loan Commitments in an amount (excluding any Incremental Term Loan Commitments in respect of Refinancing Term Loans) not to exceed the Incremental Term Loan Amount from one or more Incremental Term Lenders, which may include any existing Lender; provided that each Incremental Term Lender, if not already a Lender hereunder, shall be subject to the approval of the Administrative Agent to the extent such consent would be required for an assignment to such Lender pursuant to Section 11.06(b).  Such notice shall set forth (i) the amount of the Incremental Term Loan Commitments being requested (which shall be in minimum increments of $1.0 million and a minimum amount of $5.0 million or such lesser amount equal to the remaining Incremental Term Loan Amount), (ii) the date on which such Incremental Term Loan Commitments are requested to become effective, and (iii) whether such Incremental Term Loan Commitments are commitments to make additional Term Loans or commitments to make term loans with terms different from the Loans (“Other Term Loans”).

 

(b)           The Borrower and each Incremental Term Lender shall execute and deliver to the Administrative Agent an Additional Credit Extension Amendment and such other documentation as the Administrative Agent shall reasonably specify to evidence the Incremental Term Loan Commitment of each Incremental Term Lender.  Each Additional Credit Extension Amendment pursuant to this Section 2.12 shall specify the terms of the Incremental Term Loans to be made thereunder; provided that, without the prior written consent of the Required Lenders, (i) the final maturity date of any Other Term Loans shall be no earlier than the Maturity Date of the Term B-12 Loans, (ii) the weighted average life to maturity of the Other Term Loans shall be no shorter than the weighted average life to maturity of the then already outstanding Term B-12 Loans, (iii) any Incremental Term Loans shall rank (A) pari passu in right of payment to the Loans and (B) with respect to security, pari passu with the Term Loans and (iv) the provisions with respect to payment of interest, original issue discount and upfront fees shall be as set forth in the applicable Additional Credit Extension Amendment; provided that if the Yield of any Incremental Term Loans (other than Refinancing Term Loans) exceeds the Yield of the Term B-12 Loans by more than 50 basis points, then the Applicable Margin for the Term B-12 Loans shall be increased to the extent required so that the Yield of the Term B-12 Loans is equal to the Yield of such Incremental Term Loans minus 50 basis points and (v) all other terms (other than the amortization schedule, which, subject to clauses (i) and (ii) above, shall be determined by Borrower and the Lenders thereunder) applicable to any Incremental Term Loans shall either be substantially identical to the terms applicable to the Term Loans or shall be reasonably satisfactory to the Administrative Agent.  For the avoidance of doubt, no Lender shall have any obligation to provide any Incremental Term Loan. The Administrative Agent shall promptly notify each Lender as to the effectiveness of each Additional Credit Extension Amendment.  Each of the parties hereto hereby agrees that, upon the effectiveness of any Additional Credit Extension Amendment pursuant to this Section 2.12, this Agreement and the other Loan Documents shall be deemed amended to the extent (but only to the extent) necessary to reflect the existence and terms of the Incremental Term Loan Commitment and the Incremental Term Loans evidenced thereby.

 

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(c)           Notwithstanding the foregoing, no Incremental Term Loan Commitment shall become effective under this Section 2.12 unless (i) on the date of such effectiveness, the representations and warranties of the Borrower and each other Loan Party contained in this Agreement and the other Loan Documents shall be true in all material respects on such date except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, (ii) no Default or Event of Default shall have occurred or be continuing or would result therefrom, (iii) calculations shall have been made by the Borrower demonstrating that, on a Pro Forma Basis, the Consolidated Leverage Ratio (calculated to exclude the net cash proceeds from such Incremental Term Loan Commitment) for the Measurement Period most recently ended prior to the date of such effectiveness is no greater than 4.00 to 1.00, (iv) the Administrative Agent shall have received (with sufficient copies for each of the Incremental Term Lenders) an officer’s certificate executed by a Responsible Officer of the Borrower certifying as to compliance with preceding clauses (i) and (ii) and containing the calculations (in reasonable detail) required by preceding clause (iii), together with (unless otherwise specified in the applicable Additional Credit Extension Amendment) legal opinions, board resolutions and other closing certificates reasonably requested by the Administrative Agent and consistent with those delivered on the Closing Date under Section 4.01, (viv) all fees and expenses owing to the Administrative Agent or the Incremental Term Lenders in connection with such Incremental Term Loan Commitment shall have been paid, and (viv) the Additional Credit Extension Amendment and any other documents entered into in connection therewith shall be reasonably satisfactory to the Administrative Agent.

 

(d)           Each of the parties hereto hereby agrees that the Administrative Agent may, in consultation with the Borrower, take any and all action as may be reasonably necessary to ensure that all Incremental Term Loans (other than Other Term Loans), when originally made, are included in each Borrowing of outstanding Loans on a pro rata basis.  This may be accomplished by requiring each outstanding LIBO Rate Borrowing to be converted into a Base Rate Borrowing on the date of each Incremental Term Loan, or by allocating a portion of each Incremental Term Loan to each outstanding LIBO Rate Loan on a pro rata basis.  Any conversion of LIBO Rate Loans to Base Rate Loans required by the preceding sentence shall be subject to Section 3.05.  If any Incremental Term Loan is to be allocated to an existing Interest Period for a LIBO Rate Borrowing, then the interest rate thereon for such Interest Period and the other economic consequences thereof shall be as set forth in the applicable Additional Credit Extension Amendment.  In addition, to the extent any Incremental Term Loans are not Other Term Loans, the scheduled amortization payments under Section 2.05(a) or 2.05(c) required to be made after the making of such Incremental Term Loans shall be ratably increased by the aggregate principal amount of such Incremental Term Loans.

 

2.13        Extended Term Loans.

 

(a)           The Borrower may at any time and from time to time request that all or a portion of the Loans of any Class in an aggregate principal amount of not less than $50.0 million (or, if less, all remaining Term Loans of such Class) (an “Existing Term Loan Class”) be converted to extend the scheduled maturity date(s) of any payment of principal with respect to all or a portion of any principal amount of such Loans (any such Loans which have been so converted, “Extended Term Loans”) and to provide for other terms consistent with this Section 2.13.  In order to establish any Extended Term Loans, the Borrower shall provide a notice to the Administrative Agent (who shall provide a copy of such notice to each of the Lenders under the Existing Term Loan Class) (an “Extension Request”) setting forth the proposed terms of the Extended Term Loans to be established, which shall be consistent with the Loans under the Existing Term Loan Class from which such Extended Term Loans are to be converted except that:

 

(i)      all or any of the scheduled amortization payments of principal of the Extended Term Loans may be delayed to later dates than the scheduled amortization payments of principal of

 

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the Loans of such Existing Term Loan Class to the extent provided in the applicable Additional Credit Extension Amendment;

 

(ii)     the interest margins with respect to the Extended Term Loans may be different than the Applicable Margin for the Loans of such Existing Term Loan Class and upfront fees may be paid to the Extending Term Lenders to the extent provided in the applicable Additional Credit Extension Amendment; and

 

(iii)    the Additional Credit Extension Amendment may provide for other covenants and terms that apply only after the final maturity date of all then outstanding Loans.

 

(b)           Any Extended Term Loans converted pursuant to any Extension Request shall be designated a series of Extended Term Loans for all purposes of this Agreement; provided that, subject to the limitations set forth in clause (a) above, any Extended Term Loans converted from an Existing Term Loan Class may, to the extent provided in the applicable Additional Credit Extension Amendment and consistent with the requirements set forth above, be designated as an increase in any previously established Class of Loans.

 

(c)           The Borrower shall provide the applicable Extension Request at least five (5) Business Days prior to the date on which Lenders under the applicable Existing Term Loan Class are requested to respond.  No Lender shall have any obligation to agree to have any of its Loans of any Existing Term Loan Class converted into Extended Term Loans pursuant to any Extension Request.  Any Lender wishing to have all or a portion of its Loans under the Existing Term Loan Class subject to such Extension Request (such Lender an “Extending Term Lender”) converted into Extended Term Loans shall notify the Administrative Agent (an “Extension Election”) on or prior to the date specified in such Extension Request of the amount of its Loans under the Existing Term Loan Class which it has elected to request be converted into Extended Term Loans (subject to any minimum denomination requirements reasonably imposed by the Administrative Agent and acceptable to the Borrower).  In the event that the aggregate amount of Loans under the Existing Term Loan Class subject to Extension Elections exceeds the amount of Extended Term Loans requested pursuant to an Extension Request, Loans of the Existing Term Loan Class subject to Extension Elections shall be converted to Extended Term Loans on a pro rata basis based on the amount of Loans included in each such Extension Election (subject to any minimum denomination requirements reasonably imposed by the Administrative Agent and acceptable to the Borrower).

 

(d)           Extended Term Loans shall be established pursuant to an Additional Credit Extension Amendment to this Agreement among the Borrower, the Administrative Agent and each Extending Term Lender which shall be consistent with the provisions set forth above (but which shall not require the consent of any other Lender other than those consents required pursuant to this Agreement).  Each Additional Credit Extension Amendment shall be binding on the Lenders, the Loan Parties and the other parties hereto.  In connection with any Additional Credit Extension Amendment, the Loan Parties and the Administrative Agent shall enter into such amendments to the Collateral Documents as may be reasonably requested by the Administrative Agent (which shall not require any consent from any Lender other than those consents provided pursuant to this Agreement) in order to ensure that the Extended Term Loans are provided with the benefit of the applicable Collateral Documents and shall deliver such other documents, certificates and opinions of counsel in connection therewith as may be reasonably requested by the Administrative Agent.  No Lender shall be under any obligation to provide any Extended Term Loan.

 

(e)           The provisions of this Section 2.13 shall override any provision of Section 11.01 to the contrary.

 

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2.14        Loan Repricing Protection.  In the event that the Borrower, on or prior to the date that is twelve months after the Amendment No. 45 Effective Date (x) prepays, refinances, substitutes or replaces any Term B-12 Loans in connection with a Repricing Transaction (including, for avoidance of doubt, any prepayment made pursuant to Section 2.03(b)(iii) that constitutes a Repricing Transaction) or (y) effects any amendment of this Agreement resulting in a Repricing Transaction, the Borrower shall pay to the Administrative Agent, for the account of each of the applicable Lenders, (I) in the case of clause (x), a prepayment premium of 1.00% of the aggregate principal amount of the Term B-12 Loans of such Lender so prepaid, refinanced, substituted or replaced and (II) in the case of clause (y), a fee equal to 1.00% of the aggregate principal amount of the applicable Term B-12 Loans of such Lender outstanding immediately prior to such amendment.  Such amounts shall be due and payable on the date of effectiveness of such Repricing Transaction.

 

ARTICLE III
 TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01        Taxes.

 

(a)           Payments Free of Taxes.  Any and all payments by or on account of any obligation of any Loan Party hereunder or under any other Loan Document shall be made free and clear of and without reduction or withholding for any Tax unless required by applicable Law, provided that if any Loan Party or any other withholding agent shall be required by applicable Law to deduct any Indemnified Taxes (including any Other Taxes) from such payments, then (i) the sum payable by the Loan Party shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 3.01) the Administrative Agent or any Lender, as the case may be, receives an amount equal to the sum it would have received had no such deductions been made, (ii) the applicable withholding agent shall make such deductions and (iii) the applicable withholding agent shall timely pay the full amount deducted to the relevant Governmental Authority in accordance with applicable Law.  For purposes of this Section 3.01, any payments by the Administrative Agent to a Lender of any amounts received by the Administrative Agent from any Loan Party on behalf of such Lender shall be treated as a payment from the Loan Party to such Lender.

 

(b)           Payment of Other Taxes by the Loan Parties.  Without limiting the provisions of subsection (a) above, the Loan Parties shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable Law.

 

(c)           Indemnification by the Loan Parties.  The Loan Parties shall, jointly and severally, indemnify the Administrative Agent and each Lender, within 10 days after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section 3.01) paid by the Administrative Agent or such Lender, as the case may be, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

(d)           Evidence of Payments.  As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the applicable Loan Party to a Governmental Authority, the applicable Loan Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

 

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(e)           Status of Foreign Lenders.  To the extent it is legally entitled to do so, any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the applicable Loan Party is resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments hereunder or under any other Loan Document shall deliver to the Loan Parties (with a copy to the Administrative Agent), at the time or times prescribed by applicable Law or reasonably requested by the Loan Parties or the Administrative Agent, such properly completed and executed documentation prescribed by applicable Law as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if requested by the Loan Parties or the Administrative Agent, shall deliver such other documentation prescribed by applicable Law or reasonably requested by the Loan Parties or the Administrative Agent as will enable the Loan Parties or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Each Lender shall, whenever a lapse in time or change in circumstances renders such documentation (including any specific documentation required below in this Section 3.01(e) or Section 3.01(f)) obsolete, expired or inaccurate in any material respect, deliver promptly to the Borrower and the Administrative Agent updated or other appropriate documentation (including any new documentation reasonably requested by the Borrower or the Administrative Agent) or promptly notify the Borrower and the Administrative Agent that it is legally unable to do so.

 

Without limiting the generality of the foregoing, any Foreign Lender, to the extent it is legally entitled to do so, shall deliver to the Loan Parties and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the request of the Loan Parties or the Administrative Agent, but only if such Foreign Lender is legally entitled to do so), whichever of the following is applicable:

 

(i)      duly completed copies of Internal Revenue Service Form W-8BEN or W-8BEN-E, as applicable, claiming eligibility for benefits of an income tax treaty to which the United States is a party,

 

(ii)     duly completed copies of Internal Revenue Service Form W-8ECI,

 

(iii)    in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code, (A) a certificate substantially in the form of Exhibit J-1, Exhibit J-2, Exhibit J-3 and Exhibit J-4 (each such certificate, a “U.S. Tax Certificate”) and (B) duly completed copies of Internal Revenue Service Form W-8BEN or W-8BEN-E, as applicable,

 

(iv)    to the extent a Foreign Lender is not the beneficial owner of any obligations of the Loan Parties hereunder (for example, where the Foreign Lender is a partnership or participating Lender granting a typical participation), duly completed copies of Internal Revenue Service Form W-8IMY, accompanied by a Form W-8ECI, W-8BEN, W-8BEN-E, U.S. Tax Compliance Certificate, Form W-9 or Form W-8IMY from each beneficial owner, as applicable, or

 

(v)     two properly completed and duly signed original copies of any other form prescribed by applicable U.S. federal income tax laws (including the Treasury Regulations) as a basis for claiming a complete exemption from, or a reduction in, U.S. federal withholding tax on any payments to such Lender under the Loan Documents.

 

(f)            Status of Non-Foreign Lenders.  Any Lender that is not a Foreign Lender shall deliver to the Loan Parties and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the request of the Loan Parties or the Administrative Agent), executed

 

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originals of Internal Revenue Service Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax.

 

(g)           FATCA.  If a payment made to a Lender under any Loan Document would be subject to Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Loan Parties and the Administrative Agent at the time or times prescribed by Law and at such time or times reasonably requested by the Loan Parties or the Administrative Agent such documentation prescribed by applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Loan Parties or the Administrative Agent as may be necessary for the Loan Parties and the Administrative Agent to comply with their obligations under FATCA and to determine whether such Lender has complied with such Lender’s obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment.  Solely for purposes of this clause (g), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

(h)           Treatment of Certain Refunds.  If the Administrative Agent or any Lender determines, in its sole discretion exercised in good faith, that it has received a refund of any Indemnified Taxes or Other Taxes as to which it has been indemnified by the applicable Loan Party or with respect to which the applicable Loan Party has paid additional amounts pursuant to this Section 3.01, it shall pay to the Loan Parties an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Loan Parties under this Section 3.01 with respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses (including any Taxes) of the Administrative Agent or such Lender, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that the applicable Loan Party, upon the request of the Administrative Agent or such Lender, agree to repay the amount paid over to such Loan Party (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender if the Administrative Agent or such Lender is required to repay such refund to such Governmental Authority.  This subsection shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its taxes that it deems confidential) to the Loan Parties or any other Person.

 

3.02        Illegality.  If any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund LIBO Rate Loans, or to determine or charge interest rates based upon the LIBO Rate, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to the Borrower through the Administrative Agent, any obligation of such Lender to make or continue LIBO Rate Loans or to convert Base Rate Loans to LIBO Rate Loans shall be suspended until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all LIBO Rate Loans of such Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such LIBO Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such LIBO Rate Loans.  Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted.

 

3.03        Inability to Determine Rates.

 

(a)           If the Administrative Agent (in the case of clause (ai) or (bii) below) or the Required Lenders (in the case of clause (ciii)) determine that for any reason in connection with any request

 

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for a LIBO Rate Loan or a conversion to or continuation thereof that (ai) Dollar deposits are not being offered to banks in the London interbank eurodollar market for the applicable amount and Interest Period of such LIBO Rate Loan, (b (including because the LIBOR Screen Rate is not available or published on a current basis), (ii) adequate and reasonable means do not exist for determining the LIBO Rate for any requested Interest Period with respect to a proposed LIBO Rate Loan, or (ciii) the LIBO Rate for any requested Interest Period with respect to a proposed LIBO Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan, the Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, the obligation of the Lenders to make or maintain LIBO Rate Loans shall be suspended until the Administrative Agent (upon the instruction of the Required Lenders in the case of clause (ciii)) revokes such notice.  Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of LIBO Rate Loans or, failing that, will be deemed to have converted such request into a request for a Committed Borrowing of Base Rate Loans in the amount specified therein.

 

(b)           If at any time the Administrative Agent determines (which determination shall be conclusive absent manifest error) that (i) the circumstances set forth in clause (a)(i) have arisen and such circumstances are unlikely to be temporary or (ii) the circumstances set forth in clause (a)(i) have not arisen but either (w) the supervisor for the administrator of the LIBOR Screen Rate has made a public statement that the administrator of the LIBOR Screen Rate is insolvent (and there is no successor administrator that will continue publication of the LIBOR Screen Rate), (x) the administrator of the LIBOR Screen Rate has made a public statement identifying a specific date after which the LIBOR Screen Rate will permanently or indefinitely cease to be published by it (and there is no successor administrator that will continue publication of the LIBOR Screen Rate), (y) the supervisor for the administrator of the LIBOR Screen Rate has made a public statement identifying a specific date after which the LIBOR Screen Rate will permanently or indefinitely cease to be published or (z) the supervisor for the administrator of the LIBOR Screen Rate or a Governmental Authority having jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which the LIBOR Screen Rate may no longer be used for determining interest rates for loans, then the Administrative Agent and the Borrower shall endeavor to establish an alternate rate of interest to the LIBOR Rate that gives due consideration to the then prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time, and shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable (but for the avoidance of doubt, such related changes shall not include a reduction of the Applicable Rate); provided that, if such alternate rate of interest as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.  Notwithstanding anything to the contrary in Sections 11.01 and 11.03, such amendment shall become effective without any further action or consent of any other party to this Agreement so long as the Administrative Agent shall not have received, within five Business Days of the date notice of such alternate rate of interest is provided to the Lenders, a written notice from the Required Lenders stating that such Required Lenders object to such amendment.  Until an alternate rate of interest shall be determined in accordance with this clause (b) (but, in the case of the circumstances described in clause (ii) of the first sentence of this Section 3.03(b), only to the extent the LIBOR Screen Rate for such Interest Period is not available or published at such time on a current basis), (x) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and (y) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as a Base Rate Borrowing.

 

3.04        Increased Costs; Reserves on LIBO Rate Loans.

 

(a)           Increased Costs Generally.  If any Change in Law shall:

 

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(i)      impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement contemplated by Section 3.04(e));

 

(ii)     subject any Lender to any Taxes (other than (A) Indemnified Taxes covered in Section 3.01, or (B) Excluded Taxes) with respect to this Agreement or any Loan made by it; or

 

(iii)    impose on any Lender or the London interbank market any other condition, cost or expense affecting this Agreement or LIBO Rate Loans made by such Lender;

 

and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any LIBO Rate Loan (or of maintaining its obligation to make any such Loan), or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered.

 

(b)           Capital Requirements.  If any Lender determines that any Change in Law affecting such Lender or any Lending Office of such Lender or such Lender’s holding company, if any, regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by such Lender, to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such holding company for any such reduction suffered.

 

(c)           Certificates for Reimbursement.  A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section 3.04, in reasonable detail sufficient to allow the Borrower to verify such calculation, and delivered to the Borrower shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

 

(d)           Delay in Requests.  Failure or delay on the part of any Lender to demand compensation pursuant to the foregoing provisions of this Section 3.04 shall not constitute a waiver of such Lender’s right to demand such compensation, provided that the Borrower shall not be required to compensate a Lender pursuant to the foregoing provisions of this Section 3.04 for any increased costs incurred or reductions suffered more than six months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).

 

(e)           Reserves on LIBO Rate Loans.  The Borrower shall pay to each Lender, as long as such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”), additional interest on the unpaid principal amount of each LIBO Rate Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which shall be due and payable on each date on which interest is payable on such Loan, provided the Borrower shall have received at least 10 days’ prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender.  If a Lender fails to give notice 10 days

 

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prior to the relevant Interest Payment Date, such additional interest shall be due and payable 10 days from receipt of such notice.

 

3.05        Compensation for Losses.  Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense actually incurred by it as a result of:

 

(a)           any continuation, conversion, payment or prepayment of any Loan other than a Base Rate Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

 

(b)           any failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in the amount notified by the Borrower; or

 

(c)           any assignment of a LIBO Rate Loan on a day other than the last day of the Interest Period therefor as a result of a request by the Borrower pursuant to Section 11.13;

 

including any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained, but excluding loss of anticipated profits.  The Borrower shall also pay any customary administrative fees charged by such Lender in connection with the foregoing. For the avoidance of doubt, notwithstanding the foregoing, no Lender shall demand, and the Borrower shall not be obliged to make, any funding loss payments pursuant to this Section 3.05 with respect to the payment of accrued interest on the Amendment No. 45 Effective Date with respect to the Converted Term B-1 Loans.

 

For purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.05, each Lender shall be deemed to have funded each LIBO Rate Loan made by it at the LIBO Rate for such Loan by a matching deposit or other borrowing in the London interbank eurodollar market for a comparable amount and for a comparable period, whether or not such LIBO Rate Loan was in fact so funded.

 

3.06        Mitigation Obligations; Replacement of Lenders.

 

(a)           Designation of a Different Lending Office.  If any Lender requests compensation under Section 3.04, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then such Lender shall use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in the future, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

 

(b)           Replacement of Lenders.  If any Lender requests compensation under Section 3.04, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender is a Defaulting Lender, the Borrower may replace such Lender in accordance with Section 11.13.

 

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3.07                        Survival.  All of the Borrower’s obligations under this Article III shall survive termination of the Aggregate Commitments and repayment of all other Obligations hereunder.

 

ARTICLE IV
 CONDITIONS PRECEDENT TO BORROWINGS

 

4.01                        Conditions of Initial Borrowing.  The obligation of each Lender to make its Term Loan hereunder on the Closing Date is subject to the prior or substantially concurrent satisfaction or waiver pursuant to Section 11.01 of the following conditions:

 

(a)                                 The Administrative Agent’s receipt of the following, each in form and substance reasonably satisfactory to the Administrative Agent:

 

(i)                                     executed counterparts of this Agreement and the Perfection Certificate by each of the parties thereto;

 

(ii)                                  the Security Agreement and the Pledge Agreement, each duly executed by each Loan Party party thereto, together with:

 

(A)                               the certificate representing the Pledged Equity referred to in the Swedish Pledge Agreement accompanied by an undated stock power executed in blank or endorsement (to the extent not previously delivered to the Administrative Agent),

 

(B)                               UCC financing statements in form satisfactory to the Administrative Agent for filing under the Uniform Commercial Code of all jurisdictions in which any Loan Party is organized, and

 

(C)                               evidence that all other action that the Administrative Agent may deem necessary or desirable in order to perfect the Liens created under the Collateral Documents has been taken (including receipt of duly executed payoff letters and UCC-3 termination statements);

 

(iii)                               such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party or is to be a party;

 

(iv)                              good standing or active status certificates, as applicable, of each Loan Party in its jurisdiction of organization and, to the extent reasonably requested by the Administrative Agent, bring-down good standing or active status certificates, as applicable;

 

(v)                                 an opinion (A) of Latham & Watkins LLP, counsel to the Loan Parties and (B) Swedish counsel to the Loan Parties, each in form and substance reasonably satisfactory to the Administrative Agent;

 

(vi)                              a certificate signed by a Responsible Officer of the Borrower certifying that the conditions specified in Sections 4.01(d) and (e) have been satisfied;

 

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(vii)                           a certificate signed by a Responsible Officer of the Borrower certifying that, after giving effect to the Transaction, the Loan Parties on a Consolidated basis are Solvent;

 

(viii)                        certificates of insurance naming the Collateral Agent, on behalf of the Lenders, as an additional insured or loss payee, as the case may be, under all insurance policies maintained with respect to the assets and properties of the Loan Parties that constitute Collateral as may be requested by the Administrative Agent;

 

(ix)                              a copy of the ABL Credit Agreement executed by the parties thereto;

 

(x)                                 executed counterparts of the Intercreditor Agreement from each of the parties thereto;

 

(xi)                              results of searches or other evidence reasonably satisfactory to the Collateral Agent (in each case dated as of a date reasonably satisfactory to the Collateral Agent) indicating the absence of Liens on the assets of the Loan Parties, except for Permitted Liens and Liens for which termination statements and releases or subordination agreements are being tendered on the Closing Date; and

 

(xii)                           duly executed payoff letter, in form and substance reasonably satisfactory to it, confirming that the Existing Term Loan Facility has been, or concurrently with the Closing Date is being, terminated and all Liens securing obligations thereunder have been, or concurrently with the Closing Date are being released; and

 

(xiii)                        such other certificates, documents, consents or opinion as the Administrative Agent may reasonably require.

 

(b)                                 Evidence satisfactory to the Administrative Agent that the Existing ABL Facility has been, or concurrently with the Closing Date is being, terminated and all Liens securing obligations thereunder have been, or concurrently with the Closing Date are being, released.

 

(c)                                  Evidence satisfactory to the Administrative Agent that the Existing Mezzanine Notes have been, or concurrently with the Closing Date are being repaid.

 

(d)                                 The representations and warranties of the Borrower and each other Loan Party shall be true and correct on and as of the Closing Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date.

 

(e)                                  No Default shall exist or would result from such proposed Term Loan or from the application of the proceeds thereof.

 

(f)                                   The Administrative Agent shall have received a Committed Loan Notice in accordance with the requirements hereof.

 

(g)                                  The Lenders shall have received, to the extent requested, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act.

 

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Without limiting the generality of the provisions of Section 9.07, for purposes of determining compliance with the conditions specified in this Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

 

ARTICLE V
 REPRESENTATIONS AND WARRANTIES

 

Each of the Loan Parties represents and warrants to the Administrative Agent and the Lenders that:

 

5.01                        Existence, Qualification and Power.  Each Loan Party and each of its Restricted Subsidiaries (a) is duly organized or formed, validly existing and, as applicable, in good standing or of active status under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, permits, authorizations, consents and approvals to (i) own or lease its assets and carry on its business as currently conducted or proposed to be conducted, and (ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party, and (c) is duly qualified and is licensed and, as applicable, in good standing or of active status under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license; except in each case referred to in clause (b)(i) or (c), to the extent that failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Schedule 5.01 annexed hereto sets forth, as of the Closing Date, each Loan Party’s name as it appears in official filings in its state of incorporation or organization, its state of incorporation or organization, organization type, organization number, if any, issued by its state of incorporation or organization and its Federal employer identification number.

 

5.02                        Authorization; No Contravention.  The execution, delivery and performance by each Loan Party of each Loan Document to which such Person is or is to be a party have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach or contravention of, or the creation of (or the requirement to create) any Lien under, or require any payment to be made under (i) any Contractual Obligation or Material Indebtedness to which such Person is a party or affecting such Person or the properties of such Person or any of the Restricted Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (c) violate any applicable Law, except in the case of clause (b) or (c), to the extent that such conflict, breach, contravention or violation could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

5.03                        Governmental Authorization; Other Consents.  No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement or any other Loan Document or the ABL Loan Documents, except for (a) filings necessary to perfect the Liens on the Collateral granted by the Loan Parties pursuant to the Collateral Documents, (b) the approvals, consents, exemptions, authorizations, actions, notices and filings that have been duly obtained, taken, given or made and are in full force and effect and (c) those approvals, consents, exemptions, authorizations or other actions, notices or filings, the failure of which to obtain or make would not reasonable be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

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5.04                        Binding Effect.  This Agreement and each other Loan Document, when delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto.  This Agreement and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

5.05                        Financial Statements; No Material Adverse Effect; No Internal Control Event.

 

(a)                                 The Audited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and (ii) fairly present in all material respects the financial condition of the Borrower and the Restricted Subsidiaries as of the date thereof and their results of operations for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein.

 

(b)                                 Since February 27, 2011, there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect.

 

(c)                                  The Consolidated forecasted balance sheet, statements of income and cash flows of Holdings and its Subsidiaries delivered pursuant to Section 4.01 or Section 6.01, when taken as a whole, were prepared in good faith on the basis of the assumptions stated therein, which assumptions were reasonable in light of the conditions existing at the time of delivery of such forecasts, and represented, at the time of delivery, a reasonable estimate of the Borrower’s and its Subsidiaries future financial condition and performance (it being understood that (i) no forecasts are to be viewed as facts, (ii) any forecasts are subject to significant uncertainties and contingencies, (iii) no assurance can be given that any particular forecasts will be realized and (iv) actual results may differ and such differences may be material).

 

5.06                        Litigation.  There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Loan Parties threatened at law, in equity, in arbitration or before any Governmental Authority, by or against Holdings or any of its Restricted Subsidiaries or against any of their properties or revenues that (a) purport to affect or pertain to this Agreement or any other Loan Document, or (b) would reasonably be expected to have a Material Adverse Effect.

 

5.07                        Ownership of Property; Liens; Investments.

 

(a)                                 Each Loan Party and each of the Restricted Subsidiaries has good record, marketable and insurable title in fee simple to all owned Real Estate necessary or used in the ordinary conduct of its business, except for such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Each Loan Party and each of the Restricted Subsidiaries has good record and marketable title to, or valid leasehold interests in, all personal property necessary or used in the ordinary conduct of its business, except for such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  No Mortgage encumbers improved owned Real Estate that is located in an area that has been identified by the Secretary of Housing and Urban Development as an area having special flood hazards within the meaning of the National Flood Insurance Act of 1968 unless flood insurance has been obtained in accordance with Section 6.07(b).

 

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(b)                                 The properties and assets of each Loan Party and each of the Restricted Subsidiaries are subject to no Liens, other than (i) with respect to Mortgaged Property, Permitted Encumbrances and (ii) with respect to all other properties and assets, Permitted Liens.

 

(c)                                  Schedule 5.07(c) sets forth a complete and accurate list as of the Closing Date of all Real Estate owned by each Loan Party and each of the Restricted Subsidiaries showing the street address, county or other relevant jurisdiction, state, record owner and book and estimated fair value thereof.

 

(d)                                 (i)                                     Schedule 5.07(d)(i) sets forth a complete and accurate list of all Leases under which any Loan Party is the lessee, as of the Closing Date showing the street address, county or other relevant jurisdiction, state, lessor, lessee and expiration date.

 

(ii)                                  Schedule 5.07(d)(ii) sets forth a complete and accurate list of all leases of Real Estate under which any Loan Party is the lessor as of the Closing Date showing the street address, county or other relevant jurisdiction, state, lessor, lessee, expiration date and annual rental cost thereof.

 

(e)                                  Schedule 5.07(e) sets forth a complete and accurate list of all Investments held by any Loan Party or any Restricted Subsidiary of a Loan Party on the date hereof, showing as of the date hereof the amount, obligor or issuer and maturity, if any, thereof.

 

5.08                        Environmental Matters.

 

(a)                                 Neither any Loan Party nor any Restricted Subsidiary (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any Environmental Permit, (ii) has become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability, except, in each case, as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(b)                                 Except as would not reasonably be expected to result in a Material Adverse Effect, (i) none of the properties currently or, to the knowledge of the Loan Parties, formerly owned, leased, or operated by any Loan Party or any Restricted Subsidiary is listed or, to the knowledge of the Loan Parties, proposed for listing on the NPL or on the CERCLIS or any analogous foreign, state or local list or is adjacent to any such property; (ii) none of the properties to which any Loan Party or any Restricted Subsidiary has, directly or indirectly, transported or arranged for the transportation of any Hazardous Materials, is listed or, to the knowledge of the Loan Parties, proposed for listing on the NPL or on the CERCLIS or any analogous foreign, state or local list; (iii) there are no and, to the knowledge of the Loan Parties, never have been any underground or above-ground storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials are being or have been treated, stored or disposed on any property currently owned, leased, or operated by any Loan Party or any Restricted Subsidiary or, to the knowledge of the Loan Parties, on any property formerly owned, leased, or operated by any Loan Party or any Restricted Subsidiary; (iv) there is no asbestos or asbestos-containing material on any property currently owned or operated by any Loan Party or any Restricted Subsidiary; and (v) Hazardous Materials have not been Released, discharged or disposed of on any property currently or, to the knowledge of the Loan Parties, formerly owned, leased, or operated by any Loan Party or any Restricted Subsidiary.

 

(c)                                  (i)  Neither any Loan Party nor any Restricted Subsidiary is undertaking, and has not completed, either individually or together with other potentially responsible parties, any investigation or assessment or remedial or response action relating to any actual or threatened Release, discharge or disposal of Hazardous Materials at any site, location or operation, either voluntarily or pursuant to the order of any Governmental Authority or the requirements of any Environmental Law, except as would not reasonably be

 

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expected to result in a Material Adverse Effect; and (ii) all Hazardous Materials generated, used, treated, handled, stored, or transported by, or on behalf of, any Loan Party or any Restricted Subsidiary have been disposed of in a manner which would not reasonably expected to result in a Material Adverse Effect.

 

5.09                        Taxes.  The Loan Parties and their Restricted Subsidiaries have filed all material Tax returns and reports required to be filed, and have paid all Taxes levied or imposed upon them or their properties, income or assets otherwise due and payable and have satisfied all of their Tax withholding obligations, except (i) Taxes which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP and which contest effectively suspends the collection of the contested obligation and the enforcement of any Lien securing such obligation and (ii) any Tax return, report or Taxes, the failure to file or to pay, as the case may be, would not reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect. There is no proposed Tax deficiency or assessment known to any Loan Party against the Loan Party or any Subsidiary that would, if made, individually or in the aggregate, have a Material Adverse Effect. Except as could not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Effect, each Loan Party and each of its Subsidiaries has made adequate provisions in accordance with GAAP for all Taxes not yet due and payable.

 

5.10                        ERISA Compliance.

 

(a)                                 Except as could not reasonably be expected to result in a Material Adverse Effect, (i) each Plan is in compliance with its terms and the applicable provisions of ERISA and the Code, (ii) each Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the knowledge of the Borrower, nothing has occurred which could reasonably be expected to prevent, or cause the loss of, such qualification, and (iii) Holdings, the Borrower and each ERISA Affiliate have made all required contributions to each Pension Plan, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any Pension Plan.

 

(b)                                 There are no pending or, to the knowledge of the Loan Parties, threatened claims (other than claims for benefits in the normal course), actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  There has been no nonexempt “prohibited transaction” (as defined in Section 406 of ERISA and Section 4975 of the Code) or violation of the fiduciary responsibility rules by Holdings or the Borrower with respect to any Plan that, individually or in the aggregate, has resulted or could reasonably be expected to result in a Material Adverse Effect.

 

(c)                                  Except as could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect:  (i) no ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension Plan has any Unfunded Pension Liability as of the most recent valuation date for such Pension Plan; (iii) none of Holdings, the Borrower or any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) none of Holdings, the Borrower or any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Section 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) none of Holdings, the Borrower or any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or 4212(c) of ERISA.

 

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(d)                                 Except as would not reasonably be expected to result in a Material Adverse Effect: (i) each Foreign Plan has been maintained in compliance with its terms and with the requirements of any and all applicable laws, statutes, rules, regulations and orders and has been maintained, where required, in good standing with applicable regulatory authorities; (ii) none of Holdings, the Borrower or any Restricted Subsidiary have incurred any obligation in connection with the termination of or withdrawal from any Foreign Plan; and (iii) the present value of the accrued benefit liabilities (whether or not vested) under each Foreign Plan which is funded, determined as of the end of the most recently ended Fiscal Year of Holdings, the Borrower or any Restricted Subsidiary (based on the actuarial assumptions used for purposes of the applicable jurisdiction’s financial reporting requirements), did not exceed the current value of the assets of such Foreign Plan (and for each Foreign Plan which is not funded, the obligations of such Foreign Plan are properly accrued).

 

5.11                        Subsidiaries; Equity Interests; Loan Parties.  As of the Closing Date, no Loan Party has any Subsidiaries other than those specifically disclosed in Part (a) of Schedule 5.11, and all of the outstanding Equity Interests in such Subsidiaries have been validly issued, are fully paid and non-assessable and are owned by a Loan Party in the amounts specified on Part (a) of Schedule 5.11 free and clear of all Liens except those created under the Collateral Documents and the ABL Loan Documents and the Swedish Credit Facility and any nonconsensual Lien that is permitted under Section 7.01.  As of the Closing Date no Loan Party has any equity investments in any other corporation or entity other than those specifically disclosed in Part (b) of Schedule 5.11.

 

5.12                        Margin Regulations; Investment Company Act.

 

(a)                                 None of the proceeds of the Loans shall be used in any manner that would result in a violation of Regulations T, U or X of the FRB.

 

(b)                                 None of the Loan Parties or any Restricted Subsidiary is or is required to be registered as an “investment company” under the Investment Company Act of 1940.

 

5.13                        Disclosure.  No written report, financial statement, certificate or other information (including the Information Memorandum) furnished by or on behalf of the Loan Parties to the Administrative Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (in each case as modified or supplemented by other information so furnished), taken as a whole, contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading; provided that, with respect to projected financial information, the Loan Parties represent only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.

 

5.14                        Compliance with Laws.  Each Loan Party and each Restricted Subsidiary thereof is in compliance in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

5.15                        Intellectual Property; Licenses, Etc.Each Loan Party and each of its Restricted Subsidiaries own, or possess the right to use, all of the Intellectual Property that are reasonably necessary for the operation of their respective businesses, except as would not individually or in the aggregate reasonably be expected to have a Material Adverse Effect, and Schedule 5.15 sets forth a complete and accurate list of all such Intellectual Property owned by each Loan Party and each of its Restricted

 

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Subsidiaries which are registered with the United States Patent and Trademark Office and United States Copyright Office.  To the knowledge of the Borrower, no slogan or other advertising or other material or patent, trademark or copyright now employed by any Loan Party or any of its Restricted Subsidiaries infringes upon any Intellectual Property right held by any other Person, except to the extent that any such infringement could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Except as set forth on Schedule 5.15, no claim or litigation regarding any of the foregoing is pending or, to the knowledge of the Loan Parties, threatened, which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

5.16                        Solvency.  On a Consolidated basis, after giving effect to the Transaction, the Loan Parties are Solvent.

 

5.17                        Casualty, Etc.Neither the businesses nor the properties of any Loan Party or any of the Restricted Subsidiaries are affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not covered by insurance) that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

5.18                        Labor Matters.  There are no strikes, lockouts, slowdowns or other material labor disputes against any Loan Party pending or, to the knowledge of any Loan Party, threatened that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.  To the knowledge of the Borrower and Holdings, (i) the hours worked by and payments made to employees of the Loan Parties comply in all material respects with the Fair Labor Standards Act and any other applicable Federal, state, local or foreign Law dealing with such matters, (ii) no Loan Party has incurred any material liability or obligation under the Worker Adjustment and Retraining Act or similar state Law and (iii) all payments due from any Loan Party, or for which any claim may be made against any Loan Party, on account of wages and employee health and welfare insurance and other benefits, have been paid or properly accrued in all material respects in accordance with GAAP as a liability on the books of such Loan Party.  There are no representation proceedings pending or, to any Loan Party’s knowledge, threatened to be filed with the National Labor Relations Board, and no labor organization or group of employees of any Loan Party has made a pending demand for recognition except those that could not reasonably be expected to have a Material Adverse Effect.  There are no complaints, unfair labor practice charges, grievances, arbitrations, unfair employment practices charges or any other claims or complaints against any Loan Party pending or, to the knowledge of any Loan Party, threatened to be filed with any Governmental Authority or arbitrator based on, arising out of, in connection with, or otherwise relating to the employment or termination of employment of any employee of any Loan Party except those that could not reasonably be expected to have a Material Adverse Effect.

 

5.19                        Collateral Documents.  The provisions of the Collateral Documents are effective to create in favor of the Collateral Agent for the benefit of the Credit Parties a legal, valid and enforceable First Priority Lien or Second Priority Lien, as applicable (subject to Permitted Liens), on all right, title and interest of the respective Loan Parties in the Collateral described therein, and (i) when all appropriate filings or recordings are made in the appropriate offices as may be required under applicable law and (ii) upon the taking of possession or control by the Collateral Agent of such Collateral with respect to which a security interest may be perfected only by possession or control (which possession or control shall be given to the Collateral Agent to the extent required by any Collateral Document), such Collateral Document will constitute fully perfected Liens on, and security interests in, all right, title and interest of the Loan Parties in such Collateral.  Prior to the satisfaction of the Discharge of ABL Obligations, the representations made in this Section 5.19 with respect to possession or control of any Collateral on which there is a Second Priority Lien by the Collateral Agent shall be deemed to refer to the possession or control of such Collateral by the collateral agent for the ABL Facility (holding for the benefit of the Collateral Agent for the Credit Parties).

 

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5.20                        USA PATRIOT Act.  To the extent applicable, each of Holdings and its Restricted Subsidiaries is in compliance, in all material respects, with (i) the Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto and (ii) the USA PATRIOT Act.  No part of the proceeds of the Loans will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

 

5.21                        Plan Assets.  None of the Borrower or any of its Subsidiaries is an entity deemed to hold “plan assets” (within the meaning of the Plan Asset Regulations).

 

ARTICLE VI
 AFFIRMATIVE COVENANTS

 

So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid or unsatisfied (other than (i) any indemnity obligation for unasserted claims that by its terms survives the termination of this Agreement and (ii) Obligations under Other Liabilities), the Borrower shall, and shall (except in the cases of the covenants set forth in Sections 6.01, 6.02 and 6.03) cause each Restricted Subsidiary to:

 

6.01                        Financial Statements and Other Reports.  Deliver to the Administrative Agent, in form and detail reasonably acceptable to the Administrative Agent:

 

(a)                                 as soon as available, but in any event within 105 days after the end of each Fiscal Year of Holdings, a Consolidated balance sheet of Holdings and its Subsidiaries as at the end of such Fiscal Year, and the related Consolidated statements of income or operations, shareholders’ equity (if available) and cash flows for such Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all in reasonable detail and prepared in accordance with GAAP, audited and accompanied by a report and opinion of Ernst & Young LLP or another Registered Public Accounting Firm of nationally recognized standing reasonably satisfactory to the Administrative Agent, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit;

 

(b)                                 as soon as available, but in any event within 50 days after the end of each of the first three Fiscal Quarters of each Fiscal Year of Holdings (commencing with the Fiscal Quarter ending May 26, 2012), a Consolidated balance sheet of Holdings and its Subsidiaries as at the end of such Fiscal Quarter, and the related Consolidated statements of income or operations and cash flows for such Fiscal Quarter and for the portion of Holdings’ Fiscal Year then ended, setting forth in each case in comparative form the figures for the corresponding Fiscal Quarter of the previous Fiscal Year and the corresponding portion of the previous Fiscal Year and to the figures as set forth in the projections delivered pursuant to Section 6.01(c), all in reasonable detail, certified by a Responsible Officer on behalf of Holdings as fairly presenting in all material respects the financial condition, results of operations, shareholders’ equity and cash flows of Holdings and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments, including, but not limited to, purchase accounting adjustments, and the absence of footnotes; provided that, simultaneously with the delivery of the financial statements for the Fiscal Quarter ending July 2, 2016, the Borrower shall deliver to the Administrative Agent Consolidated statements of income or operations and cash flows of Holdings and its Subsidiaries for the

 

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Transition Period, together with the related information for the Transition Period required pursuant to clause (d) below;

 

(c)                                  as soon as available, but in any event no later than 60 days after the end of each Fiscal Year of Holdings commencing at the end of the Fiscal Year ending February 23, 2013, an annual budget of Holdings and its Subsidiaries on a Consolidated basis for the following Fiscal Year, as customarily prepared by management of the Loan Parties for its internal use of Holdings and its Subsidiaries; and

 

(d)                                 simultaneously with the delivery of each set of financial statements referred to in Section 6.01(a) and Section 6.01(b) above, the related consolidating financial statements reflecting the adjustments necessary to eliminate the accounts of Unrestricted Subsidiaries and variable interest entities (if any) from such financial statements and a management narrative report providing reasonable detail on the financial results of Holdings for the period covered by such financial statements compared to the corresponding prior year period and the key factors (as determined in good faith by the Borrower) causing such changes.

 

6.02                        Certificates; Other Information.  Deliver to the Administrative Agent, in form and detail reasonably satisfactory to the Administrative Agent:

 

(a)                                 concurrently with the delivery of the financial statements referred to in Sections 6.01(a) and (b) (commencing with the financial statements for the period ending May 26, 2012), (i) a duly completed Compliance Certificate signed by a Responsible Officer of Holdings and (ii) notice of any change in the location of any office in which a Loan Party maintains books or records relating to Collateral owned by it or any office or facility at which Collateral owned by it is located (including the establishment of any such new office or facility);

 

(b)                                 promptly after the same are publicly available, copies of all annual, regular, periodic and special reports and registration statements which Holdings or the Borrower may file or be required to file with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934, or with any national securities exchange, and in any case not otherwise required to be delivered to the Administrative Agent pursuant hereto;

 

(c)                                  not later than seven (7) Business Days after receipt thereof by any Loan Party or any Restricted Subsidiary thereof, copies of all notices, requests and other documents (including amendments, waivers and other modifications) so received under or pursuant to any instrument, indenture, loan or credit or similar agreement regarding or related to any breach or default by any party thereto or any other event that, in each case, could have a Material Adverse Effect;

 

(d)                                 promptly after any Loan Party has knowledge thereof, written notice of (i) any action or proceeding relating to any Environmental Law pending or threatened against any Loan Party or any of its Subsidiaries, (ii) any noncompliance with any Environmental Law by any Loan Party or any of its Subsidiaries, (iii) the existence of any Environmental Liability, or (iv) the existence of any Release of Hazardous Materials at any property currently or formerly owned, leased or operated by any Loan Party or any of its Subsidiaries, which action, proceeding, non-compliance, Environmental Liability or Release could (x) reasonably be expected to have a Material Adverse Effect, or (y) cause any property described in the Mortgages to be subject to any material restrictions on ownership, occupancy, use or transferability under any Environmental Law;

 

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(e)                                  as soon as available, but in any event within thirty (30) days after the end of each Fiscal Year of the Borrower, to the extent that it would reflect information not previously delivered to the Administrative Agent, (i) a report supplementing Schedules 5.07(c), 5.07(d)(i) and 5.07(d)(ii), including an identification of all owned real property disposed of by any Loan Party or any Subsidiary thereof and all leased real property disposed of by any Loan Party or any Domestic Subsidiary during such Fiscal Year, a list and description (including the street address, county or other relevant jurisdiction, state, record owner, book value thereof and, in the case of leases of property, lessor, lessee, expiration date and annual rental cost thereof) of all Real Estate acquired or leased during such Fiscal Year and a description of such other changes in the information included in such Schedules as may be necessary for such Schedules to be accurate and complete; (ii) a report supplementing Schedules 5.07(e) and 5.11 containing a description of all changes in the information included in such Schedules as may be necessary for such Schedules to be accurate and complete, each such report to be signed by a Responsible Officer of Holdings and to be in a form reasonably satisfactory to the Administrative Agent and (iii) a duly completed Perfection Certificate Supplement;

 

(f)                                   at least five (5) Business Days prior written notice (or such shorter period as to which the Administrative Agent in its sole discretion agrees) of any change in (i) any Loan Party’s name, (ii) any Loan Party’s organizational structure or jurisdiction of incorporation or formation or (iii) any Loan Party’s Federal Taxpayer Identification Number or organizational identification number assigned to it by its state of organization;

 

(g)                                  promptly after the request by any Lender, all documentation and other information that such Lender reasonably requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act;

 

(h)                                 upon request by the Administrative Agent, copies of: (i) each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) filed by any ERISA Affiliate with the Internal Revenue Service with respect to each Pension Plan; (ii) the most recent actuarial valuation report for each Pension Plan; and (iii) all notices received by any ERISA Affiliate from a Multiemployer Plan sponsor or any governmental agency concerning an ERISA Event; and

 

(i)                                     promptly, such additional information regarding the business, financial, legal or corporate affairs of any Loan Party or any Restricted Subsidiary thereof, or compliance with the terms of the Loan Documents, as the Administrative Agent may from time to time reasonably request.

 

Documents required to be delivered pursuant to Section 6.01(a) or (b) or Section 6.02(b) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet at the website address listed on Schedule 11.02; or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that (i) upon request, the Borrower shall deliver paper copies of such documents to the Administrative Agent, and (ii) the Borrower shall notify the Administrative Agent (by telecopier or electronic mail) of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  The Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request for

 

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delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.

 

The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arrangers will make available to the Lenders materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and (b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive material nonpublic information with respect to the Borrower or its securities) (each, a “Public Lender”).  The Borrower hereby agrees that at any time that the Borrower is the issuer of any outstanding debt or equity securities that are registered or issued pursuant to a private offering or is actively contemplating issuing any such securities it will use commercially reasonable efforts to identify that portion of the Borrower Materials that may be distributed to the Public Lenders and that (w) all such Borrower Materials shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Administrative Agent, the Arrangers and the Lenders to treat such Borrower Materials as not containing any material non-public information (although it may be sensitive and proprietary) with respect to the Borrower or its securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 11.07); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor”; and (z) the Administrative Agent and the Arrangers shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor.”

 

6.03                        Notices.  Promptly, after knowledge thereof by a Responsible Officer, notify the Administrative Agent, who shall promptly notify the Lenders:

 

(a)                                 of the occurrence of any Default;

 

(b)                                 of any matter that has resulted or would reasonably be expected to result in a Material Adverse Effect, including as a result of (i) breach or non-performance of, or any default under, a Contractual Obligation of any Loan Party or any Restricted Subsidiary thereof; (ii) any dispute, litigation, investigation, proceeding or suspension between any Loan Party or any Subsidiary thereof and any Governmental Authority; or (iii) the commencement of, or any material development in, any litigation or proceeding affecting any Loan Party or any Restricted Subsidiary thereof, including pursuant to any applicable Environmental Laws;

 

(c)                                  of the occurrence of any ERISA Event that would reasonably be expected to result in a Material Adverse Effect;

 

(d)                                 of any material change in accounting policies or financial reporting practices by any Loan Party or any Restricted Subsidiary thereof;

 

(e)                                  [reserved];

 

(f)                                   of (i) any casualty or other insured damage to any portion of the Collateral or (ii) the commencement of any action or proceeding for the taking of any interest in a portion of the Collateral under power of eminent domain or (iii) any condemnation or similar proceeding or if any portion of the Collateral is damaged or destroyed; provided, however, that with respect to each of clauses (i), (ii) and (iii), the amount of Collateral affected thereby shall have an aggregate fair

 

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market value in excess of (A) $15.0 million, in the case of Term Priority Collateral or (B) $5.0 million, in the case of ABL Priority Collateral;

 

(g)                                  of any change in Holdings’ or the Borrower’s chief executive officer or chief financial officer; and

 

(h)                                 any termination, withdrawal or resignation of Holdings’ or the Borrower’s Registered Public Accounting Firm.

 

Each notice pursuant to Section 6.03(a) shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating what action the Borrower has taken and proposes to take with respect thereto.

 

6.04                        Payment of Obligations.  Pay and discharge as the same shall become due and payable (a) all Taxes upon it or its properties or assets in all respects, unless the same are being contested in good faith by appropriate proceedings diligently conducted, adequate reserves in accordance with GAAP are being maintained by such Loan Party or such Restricted Subsidiary and such contest effectively suspends the collection of the contested obligation and the enforcement of any Lien securing such obligation; except for Taxes that could not reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect; and (b) all material lawful claims which, if unpaid, would by law become a Lien upon its property (except as set forth in clause (a) above).

 

6.05                        Preservation of Existence, Etc.  (a)  Preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization, except for (i) transactions permitted by Section 7.04 or 7.05 and (ii) with respect to the maintenance of good standing status of any Loan Party, it will not be a breach of clause (a) of this Section 6.05 unless the failure to maintain good standing of such Loan Party could reasonably be expected to have a Material Adverse Effect; (b) take all reasonable action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew all of its registered patents, trademarks, trade names and service marks, the non-preservation or non-renewal of which could reasonably be expected to have a Material Adverse Effect.

 

6.06                        Maintenance of Properties.  (a) Maintain, preserve and protect all of its material properties and equipment necessary in the operation of its business in good working order and condition, ordinary wear and tear, casualty or condemnation excepted; and (b) make all necessary repairs thereto and renewals and replacements thereof except, in each case, where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

6.07                        Maintenance of Insurance.

 

(a)                                 Maintain with financially sound and reputable insurance companies not Affiliates of the Loan Parties, insurance with respect to its properties and business against loss or damage (i) of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts as are customarily carried under similar circumstances by such other Persons or (ii) substantially similar to insurance maintained by the Borrower and its Restricted Subsidiaries on the Closing Date, in each case, subject to such changes as the Borrower may reasonably deem appropriate in its business judgment with respect to deductibles, self-insured amounts, coverage exclusions and maximum covered losses (provided that none of such policies shall include a co-insurance clause), and with respect to policies for Holdings and the Domestic Subsidiaries, providing for not less than 30 days’ prior notice to the Administrative Agent of termination, lapse or cancellation of such insurance.

 

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(b)                                 With respect to each improved Real Estate subject to a Mortgage, obtain flood insurance with coverages and in amounts sufficient to comply with the Flood Insurance Laws and, in any event, in an amount not less than $5.0 million for Zone A “special flood hazard areas” and $10.0 million for all other “special flood hazard areas”, in each case, as set forth on any Flood Insurance Rate Map published by the Federal Emergency Management Agency (or any successor agency), otherwise comply with all applicable rules and regulations promulgated pursuant to the Flood Insurance Laws and deliver to the Administrative Agent evidence of such compliance in form and substance reasonably acceptable to the Administrative Agent.

 

(c)                                  Fire and extended coverage policies maintained with respect to any Collateral shall be endorsed or otherwise amended to include (i) a mortgage clause (regarding improvements to Real Estate) and lenders’ loss payable clause (regarding personal property), in form and substance satisfactory to the Collateral Agent, which endorsements or amendments shall provide that the insurer shall pay all proceeds otherwise payable to the Loan Parties under the policies directly to the Collateral Agent, and (ii) such other provisions as the Collateral Agent may reasonably require from time to time to protect the interests of the Credit Parties.  Commercial general liability policies shall be endorsed to name the Collateral Agent as an additional insured.  Business interruption policies with respect to Holdings and the Domestic Subsidiaries shall name the Collateral Agent as a loss payee and shall be endorsed or amended to include (i) a provision that, from and after the Closing Date, the insurer shall pay all proceeds otherwise payable to the Loan Parties under the policies directly to the Collateral Agent, and (ii) such other provisions as the Collateral Agent may reasonably require from time to time to protect the interests of the Credit Parties.  Each such policy referred to in this Section 6.07 shall also provide that it shall not be canceled or not renewed (i) by reason of nonpayment of premium except upon not less than ten (10) days’ prior written notice thereof by the insurer to the Collateral Agent (giving the Collateral Agent the right to cure defaults in the payment of premiums) or (ii) for any other reason except upon not less than thirty (30) days’ prior written notice thereof by the insurer to the Collateral Agent.  The Borrower shall deliver to the Collateral Agent, prior to the cancellation, modification adverse to the Lenders, or non-renewal of any such policy of insurance, a copy of a renewal or replacement policy (or other evidence of renewal of a policy previously delivered to the Collateral Agent, including an insurance binder) together with evidence satisfactory to the Collateral Agent of payment of the premium therefor.

 

(d)                                 In the event that any part of the Collateral (other than, as long as the ABL Facility is outstanding, ABL Priority Collateral) is damaged by fire or other casualty and the insurance proceeds for such damage are greater than $5.0 million in any Fiscal Year, such proceeds, in their entirety, shall be delivered to the Administrative Agent and the Administrative Agent shall promptly apply such proceeds in accordance with Section 2.03(b) or 8.03, as applicable.  In the event any part of the Collateral (other than, as long as the ABL Facility is outstanding, ABL Priority Collateral) is damaged by fire or other casualty and the insurance proceeds for such damage are less than $5.0 million in any Fiscal Year, such proceeds, in their entirety, shall be delivered to the Borrower, and

 

(e)                                  None of the Credit Parties, or their agents or employees shall be liable for any loss or damage insured by the insurance policies required to be maintained under this Section 6.07.  Each Loan Party shall look solely to its insurance companies or any other parties other than the Credit Parties for the recovery of such loss or damage and such insurance companies shall have no rights of subrogation against any Credit Party or its agents or employees.  If, however, the insurance policies do not provide waiver of subrogation rights against such parties, as required above, then the Loan Parties hereby agree, to the extent permitted by law, to waive their right of recovery, if any, against the Credit Parties and their agents and employees.  The designation of any form, type or amount of insurance coverage by any Credit Party under this Section 6.07 shall in no event be deemed a representation, warranty or advice by such Credit Party that such insurance is adequate for the purposes of the business of the Loan Parties or the protection of their properties.

 

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6.08                        Compliance with Laws.  Comply in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or property, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate reserves have been set aside and maintained by the Loan Parties in accordance with GAAP; or (b) the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect.

 

6.09                        Books and Records.  Maintain proper books of record and account, in which entries in conformity in all material respects with GAAP under U.S. law, with respect to Holdings and its Domestic Subsidiaries, and under applicable foreign law, with respect to Foreign Subsidiaries (provided that nothing in this Section 6.09 shall affect the obligation of Holdings to provide financial statements in accordance with GAAP under Section 6.01), consistently applied shall be made of all financial transactions and matters involving the assets and business of the Loan Parties and their Restricted Subsidiaries, as the case may be.

 

6.10                        Inspection Rights.  Permit representatives and independent contractors of the Administrative Agent (accompanied by any Lender (with the consent of the Borrower (not to be unreasonably withheld)) to visit and inspect any of its properties, to examine its corporate, financial, insurance, and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants (subject to such accountant’s customary policies and procedures), all at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; provided, however, that unless an Event of Default has occurred and is continuing, the Administrative Agent may make only one such visit in any Fiscal Year at the Borrower’s expense, provided further that when an Event of Default exists the Administrative Agent (or any of its representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and upon reasonable advance notice to the extent practicable.

 

6.11                        Use of Proceeds.  Use the proceeds of (a) the Loans made on the Closing Date solely to finance in part the Transaction and to pay related fees and expenses, (b) the Term B-12 Loans funded pursuant to the Additional Term B-12 Commitments on the Amendment No. 45 Effective Date to prepay Term B-1 Loans pursuant to Section 2.05(a) of this Agreement and (c) the Incremental Term Loans only for the purposes specified in the applicable Additional Credit Extension Amendment.

 

6.12                        Covenant to Guarantee Obligations and Give Security.

 

(a)                                 Upon the formation or acquisition of any new direct or indirect Subsidiary (other than any Unrestricted Subsidiary, a CFC, a Subsidiary that is held directly or indirectly by a CFC or any Domestic Subsidiary that is a disregarded entity for U.S. federal income tax purposes if substantially all of the assets of such Domestic Subsidiary consist of Equity Interests in one or more Foreign Subsidiaries) by any Loan Party, then the Borrower shall, at the Borrower’s expense, within the time period specified below unless the Administrative Agent in its sole discretion consents to an extension thereof:

 

(i)                  within 10 Business Days after such formation or acquisition, cause such Subsidiary, and cause each direct and indirect parent of such Subsidiary (if it has not already done so), to duly execute and deliver to the Administrative Agent a counterpart to this Agreement, in form and substance satisfactory to the Administrative Agent, guaranteeing the other Loan Parties’ obligations under the Loan Documents,

 

(ii)               within 15 Business Days after such formation or acquisition, cause such Subsidiary and each direct and indirect parent of such Subsidiary (if it has not already done so) to

 

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duly execute and deliver to the Administrative Agent supplements to the Collateral Documents and other security and pledge agreements covering the personal property of such Subsidiaries, as specified by and in form and substance satisfactory to the Administrative Agent (including delivery of all Pledged Debt and Pledged Equity in and of such Subsidiary, and other instruments of the type specified in Section 4.01(a)(ii)), securing payment of all the Obligations of such Subsidiary or such parent, as the case may be, under the Loan Documents and constituting Liens on all such personal properties,

 

(iii)            within 15 Business Days after such formation or acquisition, cause such Subsidiary and each direct and indirect parent of such Subsidiary (if it has not already done so) to take whatever action (including the filing of Uniform Commercial Code financing statements, the giving of notices and the endorsement of notices on title documents) may be necessary in the reasonable opinion of the Administrative Agent to vest in the Administrative Agent (or in any representative of the Administrative Agent designated by it) valid and subsisting Liens on the personal properties purported to be subject to Collateral Documents, as applicable, and the security and pledge agreements delivered pursuant to this Section 6.12, enforceable against all third parties in accordance with their terms, and

 

(iv)           within 15 Business Days after such formation or acquisition, deliver to the Administrative Agent, upon the request of the Administrative Agent in its sole discretion, a signed copy of a favorable opinion, addressed to the Administrative Agent and the other Credit Parties, of counsel for the Loan Parties acceptable to the Administrative Agent as to the matters contained in clauses (i), (ii) and (iii) above, and as to such other matters as the Administrative Agent may reasonably request.

 

(b)                                 Subject to the Intercreditor Agreement, promptly grant to the Collateral Agent, within 30 days of the acquisition thereof, a security interest in and Mortgages on each parcel of Real Estate owned in fee by such Loan Party as is acquired by such Loan Party after the Closing Date and that, together with any improvements thereon, individually has a fair market value of at least $5.0 million as additional security for the Obligations (unless the subject property is already mortgaged to a third-party to the extent permitted by Section 7.01).  Such Mortgages shall be granted pursuant to documentation reasonably satisfactory in form and substance to the Administrative Agent and the Collateral Agent and shall constitute valid and enforceable perfected Liens subject only to Permitted Liens or other Liens acceptable to the Administrative Agent.  The Mortgages or instruments related thereto shall be duly recorded or filed in such manner and in such places as are required by law to establish, perfect, preserve and protect the Liens in favor of the Collateral Agent required to be granted pursuant to the Mortgages and all taxes, fees and other charges payable in connection therewith shall be paid in full.  Such Loan Party shall otherwise take such actions and execute and/or deliver to the Collateral Agent such documents as the Administrative Agent or the Collateral Agent shall require to confirm the validity, perfection and priority of the Lien of any existing Mortgage or new Mortgage against such after-acquired Real Estate (including (i) fully paid American Land Title Association Lender’s Extended Coverage title insurance policies or applicable state title policy in form and substance, with endorsements and in amounts acceptable to the Administrative Agent, issued by title insurers reasonably acceptable to the Administrative Agent, insuring the Mortgages to be valid and subsisting Liens on the property described therein, free and clear of all defects (including, but not limited to, mechanics’ and materialmen’s Liens) and encumbrances, excepting only Permitted Encumbrances and other Liens permitted under the Loan Documents, and providing for such other affirmative insurance (including endorsements for future advances under the Loan Documents, for mechanics’ and materialmen’s Liens and for zoning of the applicable property) and as the Administrative Agent may reasonably deem necessary or desirable (a “Mortgage Policy”), (ii) a Survey, (iii) the Flood Documentation and (iv) a local counsel opinion (in form and substance reasonably satisfactory to the Administrative Agent and the Collateral Agent) in respect of such Mortgage).

 

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(c)                                  Concurrently with the guarantee by any direct or indirect Domestic Subsidiary that is a Restricted Subsidiary of any obligations under the ABL Loan Documents, cause such direct or indirect Subsidiary to guarantee the Obligations of the Loan Parties hereunder and otherwise comply with the requirements of this Section 6.12.

 

(d)                                 At any time upon request of the Administrative Agent, promptly execute and deliver any and all further instruments and documents and take all such other action as the Administrative Agent may deem reasonably necessary or desirable in obtaining the full benefits of, or (as applicable) in perfecting and preserving the Liens of, such guaranties, deeds of trust, trust deeds, deeds to secure debt, mortgages, leasehold mortgages, leasehold deeds of trust, supplements to the Collateral Documents and other security and pledge agreements.

 

(e)                                  Subject to the terms of the Intercreditor Agreement and prior to the satisfaction of the Discharge of ABL Obligations, with respect to any obligation under this Section 6.12 or any Collateral Document to deliver possession or control of any Collateral on which there is a Second Priority Lien by the Collateral Agent, such obligation shall be deemed satisfied by the delivery of possession or control of such Collateral to the “collateral agent” for the ABL Facility (holding for the benefit of the Collateral Agent for the Credit Parties).

 

6.13                        Further Assurances.  Promptly upon request by the Administrative Agent, or any Lender through the Administrative Agent, (a) correct any material defect or error that may be discovered in any Loan Document or in the execution, acknowledgment, filing or recordation of any of the foregoing, and (b) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments as the Administrative Agent, or any Lender through the Administrative Agent, may reasonably require from time to time in order to (i) carry out more effectively the purposes of the Loan Documents, (ii) to the fullest extent permitted by applicable Law, subject any Loan Party’s or any of the Restricted Subsidiaries’ properties, assets, rights or interests to the Liens now or hereafter intended to be covered by any of the Collateral Documents, (iii) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be created thereunder and (iv) assure, convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Credit Parties the rights granted or now or hereafter intended to be granted to the Credit Parties under any Loan Document or under any other instrument executed in connection with any Loan Document to which any Loan Party or any of the Restricted Subsidiaries is or is to be a party, and cause each of the Restricted Subsidiaries to do so.

 

6.14                        Lenders Meetings.  The Borrower will, upon the request of the Administrative Agent or Required Lenders, participate in a meeting of the Administrative Agent and Lenders once during each Fiscal Year to be held, at the request of the Administrative Agent or Required Lenders, by teleconference or at the Borrower’s corporate offices (or at such other location as may be agreed to by the Borrower and the Administrative Agent) at such time as may be agreed to by the Borrower and the Administrative Agent.

 

6.15                        Designation as Senior Debt.  Designate all Obligations as “Designated Senior Indebtedness” (or any similar term) under, and defined in, any Subordinated Indebtedness of any Loan Party which contains such designations.

 

6.16                        Maintenance of Ratings.  Use commercially reasonable efforts to cause the Loans and the Borrower’s corporate credit to continue to be rated by Standard & Poor’s Ratings Group and Moody’s Investors Service Inc.

 

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6.17                        Designation of Subsidiaries.  The board of directors of Holdings may at any time designate any Restricted Subsidiary as an Unrestricted Subsidiary or any Unrestricted Subsidiary as a Restricted Subsidiary; provided that (i) immediately before and after such designation, no Default shall have occurred and be continuing, (ii) the Borrower may not be designated as an Unrestricted Subsidiary, (iii) no Subsidiary may be designated as an Unrestricted Subsidiary if it is a “Restricted Subsidiary” for the purpose of the ABL Facility, (iv) no Restricted Subsidiary may be designated as an Unrestricted Subsidiary if it was previously designated an Unrestricted Subsidiary, (v) no Unrestricted Subsidiary shall own any Equity Interests in any Restricted Subsidiary, (vi) no Unrestricted Subsidiary shall hold any Indebtedness of, or any Lien on any property of, the Borrower or any Restricted Subsidiary, (vii) no Unrestricted Subsidiary shall be a party to any transaction or arrangement with the Borrower and its Restricted Subsidiaries that would not be permitted by Section 7.08 and (viii) none of Holdings or any of its Restricted Subsidiaries shall have any obligation to subscribe for additional Equity Interests of any Unrestricted Subsidiary or to preserve or maintain the financial condition of any Unrestricted Subsidiary.  The designation of any Subsidiary as an Unrestricted Subsidiary shall constitute an Investment by Holdings and its Restricted Subsidiaries therein at the date of designation in an amount equal to the net book value of Holdings’ or such Restricted Subsidiary’s (as applicable) investment therein.  The designation of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute the incurrence at the time of designation of any Indebtedness or Liens of such Subsidiary existing at such time, and cause each of the Restricted Subsidiaries and Unrestricted Subsidiaries to satisfy, customary corporate and other formalities.

 

6.18                        Post-Closing Matters.  Within seven (7) days after the Closing Date (or such later date to be agreed by the Administrative Agent), the Borrower shall deliver to the Administrative Agent the certificates representing the Pledged Equity referred to in the Pledge Agreement accompanied by undated stock powers executed in blank and instruments evidencing the Pledged Debt indorsed in blank or with other appropriate instruments of transfer (to the extent not previously delivered to the Administrative Agent).

 

ARTICLE VII
 NEGATIVE COVENANTS

 

So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid or unsatisfied (other than (i) any indemnity obligation for unasserted claims that by its terms survives the termination of this Agreement and (ii) Obligations under Other Liabilities), the Borrower shall not, (and with respect to Section 7.13 only, Holdings shall not), nor shall the Borrower permit any Restricted Subsidiary to, directly or indirectly:

 

7.01                        Liens.  Create, incur, assume or suffer to exist any Lien upon any of its property, other than the following Liens (Liens described below are herein referred to as “Permitted Liens”):

 

(a)                                 Liens pursuant to any Loan Document;

 

(b)                                 Liens existing on the date hereof and listed on Schedule 7.01(b) and any renewals or extensions thereof, provided that (i) the property covered thereby is not changed in any material manner, (ii) the amount secured or benefited thereby is not increased except as contemplated by Section 7.02(f), (iii) the direct and contingent obligors with respect thereto are not changed (other than to decrease the number of obligors), and (iv) any renewal or extension of the obligations secured or benefited thereby is permitted by Section 7.02(f);

 

(c)                                  Liens for taxes not yet due or which are the subject of a Permitted Protest;

 

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(d)                                 carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 30 days or which are the subject of a Permitted Protest;

 

(e)                                  (i) pledges or deposits in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security legislation, other than any Lien imposed by ERISA and (ii) pledges and deposits in the ordinary course of business securing liability for reimbursement or indemnification obligations of (including obligations in respect of letters of credit or bank guarantees for the benefit of) insurance carriers providing property, casualty or liability insurance to Holdings or any of its Restricted Subsidiaries;

 

(f)                                   deposits to secure the performance of bids, trade contracts and leases (other than Indebtedness for borrowed money), statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business;

 

(g)                                  easements, rights-of-way, restrictions and other similar encumbrances affecting Real Estate which, in the aggregate, are not substantial in amount, and which do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person;

 

(h)                                 Liens securing judgments for the payment of money not constituting an Event of Default under Section 8.01(h);

 

(i)                                     Liens securing Indebtedness permitted under Section 7.02(h); provided that (i) such Liens do not at any time encumber any property other than the property financed by such Indebtedness, (ii) the Indebtedness secured thereby does not exceed the cost of the property being acquired on the date of acquisition, and (iii) such Lien and the Indebtedness secured thereby are incurred contemporaneously with or within two hundred seventy (270) days after the acquisition of such property;

 

(j)                                    Liens on the Collateral securing ABL Obligations having the priority set forth in the Intercreditor Agreement;

 

(k)                                 landlords’ and lessors’ Liens in respect of rent and other lease obligations that are not past due for a period of 60 days or more or that are the subject of a Permitted Protest;

 

(l)                                     possessory Liens in favor of brokers and dealers arising in connection with the acquisition or disposition of Investments, provided that such Liens (a) attach only to such Investments and (b) secure only obligations incurred in the ordinary course and arising in connection with the acquisition or disposition of such Investments and not any obligation in connection with margin financing;

 

(m)                             Liens arising solely by virtue of any statutory or common law provisions relating to banker’s Liens, ordinary course Liens in favor of securities intermediaries, rights of setoff or similar rights and remedies as to deposit accounts or securities accounts or other funds maintained with depository institutions or securities intermediaries;

 

(n)                                 Liens arising from precautionary UCC filings regarding “true” operating leases or the consignment of goods to a Loan Party;

 

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(o)                                 Liens in favor of customs and revenues authorities imposed by applicable Law arising in the ordinary course of business in connection with the importation of goods and securing obligations (i) that are not overdue by more than thirty (30) days, or (ii) that are the subject of a Permitted Protest;

 

(p)                                 Liens on specific existing assets and proceeds thereof of a Person acquired following the Closing Date in existence on the date such Person became a Restricted Subsidiary; provided that such Liens were not created in anticipation of the transaction pursuant to which such Person became a Restricted Subsidiary;

 

(q)                                 licenses of Intellectual Property permitted under Section 7.05(g) hereof;

 

(r)                                    Liens on the assets of Foreign Subsidiaries securing Indebtedness or other obligations of Foreign Subsidiaries permitted by Section 7.02;

 

(s)                                   Liens on the Collateral securing Indebtedness permitted by Section 7.02(b);

 

(t)                                    other Liens securing Indebtedness or other obligations of the Borrower and the Subsidiary Guarantors outstanding in an aggregate principal amount not to exceed $15.0 million; provided that no such Lien shall extend to or cover any Collateral;

 

(u)                                 leases, licenses, subleases or sublicenses granted to others in the ordinary course of business which do not (i) in any case materially detract from the value of the property subject thereto or (ii) interfere in any material respect with the business of the Borrower and its Subsidiaries or (iii) secure any Indebtedness;

 

(v)                                 Liens solely on any cash earnest money deposits made by the Borrower or any of the Restricted Subsidiaries in connection with any letter of intent or purchase agreement permitted hereunder;

 

(w)                               ground leases in respect of real property on which facilities owned or leased by the Borrower or any of its Subsidiaries are located; and

 

(x)                                 Liens on insurance policies and the proceeds thereof securing the financing of the premiums with respect thereto.

 

7.02                        Indebtedness.  Create, incur, assume, guarantee, suffer to exist or otherwise become liable with respect to any Indebtedness, except (Indebtedness described below is herein referred to as “Permitted Indebtedness”):

 

(a)                                 obligations (contingent or otherwise) of the Borrower or any of the Restricted Subsidiaries existing or arising under any Swap Contract, provided that (i) such obligations are (or were) entered into by such Person in the ordinary course of business for the purpose of directly mitigating risks associated with fluctuations in interest rates or foreign exchange rates or otherwise to mitigate risks associated with its assets or liabilities or business operations, and (ii) such Swap Contract does not contain any provision exonerating the counterparty to such Swap Contract from its obligation to make payments on outstanding transactions to the Borrower or the Restricted Subsidiaries (notwithstanding that the Borrower or a Restricted Subsidiary is the defaulting party);

 

(b)                                 Refinancing Debt Securities and any Permitted Refinancing Indebtedness in respect thereof;

 

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(c)                                  (i)  Indebtedness of a Restricted Subsidiary of the Borrower owed to the Borrower or to another Restricted Subsidiary of the Borrower, and (ii) Indebtedness of the Borrower owed to any Restricted Subsidiaries of the Borrower, in each case, which Indebtedness shall (A) in the case of Indebtedness owed to a Loan Party, constitute “Pledged Debt” under the Security Agreement, (B) be on terms (including subordination terms, if owed by a Loan Party) acceptable to the Administrative Agent and (C) be otherwise permitted under the provisions of Section 7.03;

 

(d)                                 Indebtedness under the Loan Documents;

 

(e)                                  Indebtedness of the Loan Parties under the ABL Facility and any Permitted Refinancing Indebtedness in respect thereof (including Guarantees of any Guarantor in respect of such Indebtedness) not to exceed $100.0 million;

 

(f)                                   Indebtedness outstanding on the date hereof and listed on Schedule 7.02 and any Permitted Refinancing Indebtedness in respect thereof;

 

(g)                                  Guarantees of the Borrower or any Guarantor in respect of Indebtedness otherwise permitted hereunder of the Borrower or any Subsidiary Guarantor;

 

(h)                                 Indebtedness in respect of Capital Lease Obligations, Synthetic Lease Obligations, and purchase money obligations for fixed or capital assets within the limitations set forth in Section 7.01(i) and Permitted Refinancing Indebtedness in respect thereof; provided, however, that the aggregate amount of all such Indebtedness at any one time outstanding shall not exceed $35.0 million;

 

(i)                                     Permitted Holdco Debt;

 

(j)                                    Indebtedness of any Person that becomes a Restricted Subsidiary of the Borrower after the date hereof in accordance with the terms of Section 7.03(h), which Indebtedness is existing at the time such Person becomes a Restricted Subsidiary of the Borrower (other than Indebtedness incurred solely in contemplation of such Person’s becoming a Restricted Subsidiary of the Borrower) and Permitted Refinancing Indebtedness in respect thereof;

 

(k)                                 (i) unsecured Indebtedness of any Loan Party with no scheduled payments of principal until the date that is 6 months after the Maturity Date; provided that (x) on a Pro Forma Basis, the Consolidated Leverage Ratio (calculated to exclude the net cash proceeds from Indebtedness incurred pursuant to this Section 7.02(k)) for the Measurement Period most recently ended prior to the incurrence of such Indebtedness is no greater than 4.50 to 1.00, (y) [reserved] and (z) no Event of Default shall have occurred and be continuing at the time of and immediately after the incurrence of such Indebtedness and (ii) Permitted Refinancing Indebtedness in respect of Indebtedness permitted by subclause (i) above;

 

(l)                                     Indebtedness of the Loan Parties in an aggregate principal amount not to exceed $35.0 million at any time outstanding;

 

(m)                             Indebtedness of Foreign Subsidiaries under the Swedish Credit Facility in an aggregate amount not to exceed the U.S. dollar equivalent (as reasonably determined by the Administrative Agent) of $65.0 million outstanding at any time; and

 

(n)                                 other Indebtedness of Foreign Subsidiaries in an aggregate amount not to exceed $10.0 million outstanding at any time.

 

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For purposes of determining compliance with any U.S. dollar-denominated restriction on the incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of Indebtedness denominated in a non-U.S. currency shall be calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was incurred; provided that, if such Indebtedness is incurred to extend, replace, refund, refinance, renew or defease other Indebtedness denominated in a foreign currency, and such extension, replacement, refunding, refinancing, renewal or defeasance would cause the applicable U.S. dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such extension, replacement, refunding, refinancing, renewal or defeasance, such U.S. dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal amount of such refinancing Indebtedness does not exceed the principal amount of such Indebtedness being extended, replaced, refunded, refinanced, renewed or defeased.

 

7.03                        Investments.  Make or hold any Investments, except:

 

(a)                                 Investments held by the Borrower and the Restricted Subsidiaries in the form of Cash Equivalents;

 

(b)                                 Investments consisting of loans and advances to officers, directors and employees of Holdings and its Restricted Subsidiaries to finance the purchase of capital stock of Holdings and for travel, entertainment, relocation and analogous ordinary business purposes, in an aggregate amount not to exceed $2.5 million at any time outstanding;

 

(c)                                  (i) Investments outstanding on the Closing Date by Borrower and its Restricted Subsidiaries in their respective Subsidiaries, (ii) additional Investments by Borrower and its Restricted Subsidiaries in Restricted Subsidiaries that are Loan Parties at the time of the making of such Investment, (iii) additional Investments by Subsidiaries of the Borrower that are not Loan Parties (including Foreign Subsidiaries) in other Restricted Subsidiaries that are not Loan Parties ((including Foreign Subsidiaries), and (iv) so long as no Default or Event of Default then exists or would arise therefrom, additional Investments by the Loan Parties in Restricted Subsidiaries that are not Loan Parties in an aggregate amount when taken together with all purchases and acquisitions referred to in Section 7.03(h)(ii), during the term of this Agreement not to exceed (A) the greater of (x) $25.0 million and (y) 3% of total Consolidated assets of Borrower and its Restricted Subsidiaries as of the last day of the most recently completed Measurement Period (net of any cash return of principal or capital on any such Investment, purchases or acquisitions made pursuant to this Section 7.03(c)(iv) or Section 7.03(h)(ii) or Section 7.03(l) to Borrower or a Subsidiary Guarantor that is not applied pursuant to the parenthetical phrase in Section 7.03(h)(ii)(y) or Section 7.03(l)(x)) plus (B) an amount equal to the amount of cash distributions to the Borrower or a Subsidiary Guarantor following the Closing Date from the Foreign Subsidiaries that has not been redistributed to any Foreign Subsidiary;

 

(d)                                 Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss;

 

(e)                                  Guarantees permitted by Section 7.02;

 

(f)                                   Investments existing on the date hereof and set forth on Schedule 5.07(e) and any modification, replacement, renewal, reinvestment or extension of any of the foregoing that does not increase the amount thereof;

 

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(g)                                  Investments in Swap Contracts permitted under Section 7.02(a);

 

(h)                                 the purchase or other acquisition of all of the Equity Interests in, or all or substantially all of the property, or assets comprising a business unit, of, any Person; provided that, with respect to each purchase or other acquisition made pursuant to this Section 7.03(h) (each such purchase or acquisition, a “Permitted Acquisition”):

 

(i)                                     any such newly-created or acquired Restricted Subsidiary as a result of any such transaction shall comply with the applicable requirements of Section 6.12;

 

(ii)                                  any such purchase or other acquisition that, upon the consummation thereof, does not result in the assets or property so purchased or acquired being wholly-owned directly by the Borrower or one or more Subsidiary Guarantors or, in the case of any acquisition of Equity Interests that does not result in the Person(s) so acquired becoming a Subsidiary Guarantor(s), in each case, within 10 Business Days after such purchase or acquisition shall not exceed, together with all such other purchases or other acquisitions and all Investments referred to in Section 7.03(c), the greater of (x) $25.0 million and (y) 3% of total Consolidated assets of Borrower and its Restricted Subsidiaries as of the last day of the most recently completed Measurement Period (net of any cash return of principal on capital on any acquisition, purchase or Investment made pursuant to this Section 7.03(h)(ii) or Section 7.03(c)(iv) or Section 7.03(l) to Borrower or a Subsidiary Guarantor that is not applied pursuant to the parenthetical phrase in Section 7.03(c)(iv)(y) or 7.03(l)(x));

 

(iii)                               [reserved];

 

(iv)                              immediately before and immediately after giving effect to any such purchase or other acquisition, no Event of Default shall have occurred and be continuing; and

 

(v)                                 the Borrower shall have delivered to the Administrative Agent, on or prior to the date on which any such purchase or other acquisition is to be consummated, a certificate of a Responsible Officer, in form and substance reasonably satisfactory to the Administrative Agent, certifying that all of the requirements set forth in this clause (h) have been satisfied or will be satisfied on or prior to the consummation of such purchase or other acquisition (other than the requirements of clause (i), which will be satisfied as required by Section 6.12);

 

(i)                                     Investments resulting from the issuance of Indebtedness of Holdings to the Borrower or any of the Restricted Subsidiaries in an amount not to exceed the amount necessary to permit Holdings to pay (i) so long as no Event of Default shall have occurred and be continuing at the time thereof or would result therefrom, reasonable and customary corporate and out-of-pocket operating expenses actually payable to persons that are not Affiliates relating to maintaining its ownership interest in the Borrower (including reasonable out-of-pocket expenses for legal, administrative and accounting services provided by third parties, and compensation, benefits and other amounts payable to officers and employees in connection with their employment in the ordinary course of business and to board of director observers), (ii) franchise fees or similar Taxes and fees required to maintain its corporate existence, (iii) any income Taxes imposed on Holdings or its direct or indirect parent of Holdings as the common parent of a consolidated, combined or similar Tax group of which the Borrower and/or its Restricted Subsidiaries are members, up to an amount not to exceed the amount of any such income Taxes that the Borrower and its Restricted

 

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Subsidiaries would have been required to pay on a separate company (or a stand-alone Tax group) basis (reduced by any income Taxes paid directly by the Borrower or its Restricted Subsidiaries); provided that in determining the hypothetical income Tax liability of the Borrower and/or its Restricted Subsidiaries on a separate company (or a stand-alone Tax group) basis for the purpose of clause (iii), any interest expense on any Indebtedness incurred by Holdings shall be treated as the interest expense of the Borrower; provided further that any payments by Borrower or any of its Restricted Subsidiaries attributable to the income of any Unrestricted Subsidiary shall be permitted only to the extent that cash payments were made for such purpose by such Unrestricted Subsidiary to the Borrower or to any of its Restricted Subsidiaries and (iv) all costs or fees incurred in compliance with or in anticipation of compliance with Securities Laws and state securities Laws;

 

(j)                                    promissory notes and other non-cash consideration that is permitted to be received in connection with Dispositions permitted by Section 7.05;

 

(k)                                 any Investments made with the proceeds received by or contributed to the Borrower from the substantially concurrent issuance of new Equity Interests (other than Disqualified Equity Interests) issued by Holdings and not used for any other purpose permitted under this Agreement;

 

(l)                                     without duplication of any other Investments permitted hereunder, other Investments by the Borrower or any of the Restricted Subsidiaries not exceeding (x) $10.0 million in any Fiscal Year (with the unused portion of such scheduled amount available for use in any succeeding Fiscal Year), net of any cash return to the Borrower and its Restricted Subsidiaries of principal or capital of any such Investment or (y) $25.0 million in the aggregate (net of any cash return of principal or capital of any Investment, purchase or acquisition made pursuant to this Section 7.03(l) or Section 7.03(c)(iv) or 7.03(h)(ii)  to the Borrower or a Subsidiary Guarantor that is not applied pursuant to the parenthetical phrase in Section 7.03(c)(iv)(y) or 7.03(h)(ii));

 

(m)                             so long as no Event of Default shall have occurred and be continuing or would result from the making of any such Investment, Investments in an amount not to exceed the Available Amount;

 

(n)                                 Investments to the extent that payment for such Investments is made solely with Qualified Equity Interests of Holdings (or any direct or indirect parent thereof);

 

(o)                                 Investments held by a Restricted Subsidiary acquired after the Closing Date or of a Person merged into the Borrower or merged or consolidated with a Restricted Subsidiary in accordance with Section 7.04 after the Closing Date (other than existing Investments in subsidiaries of such Subsidiary or Person, which must comply with the requirements of Sections 7.02(h) or (l)) to the extent that such Investments were not made in contemplation of or in connection with such acquisition, merger or consolidation and were in existence on the date of such acquisition, merger or consolidation; and

 

(p)                                 Guarantees by the Borrower or any of the Restricted Subsidiaries of leases (other than Capital Lease Obligations) or of other obligations that do not constitute Indebtedness, in each case entered into in the ordinary course of business.

 

7.04                        Fundamental Changes.  Merge, dissolve, liquidate, consolidate with or into another Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person, except that:

 

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(a)                                 any Restricted Subsidiary of the Borrower may merge with (i) the Borrower, provided that the Borrower shall be the continuing or surviving Person, or (ii) any one or more other Restricted Subsidiaries, provided that when any Loan Party is merging with another Restricted Subsidiary that is not a Loan Party, such Loan Party shall be the continuing or surviving Person;

 

(b)                                 any Restricted Subsidiary (other than the Borrower) may Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) to the Borrower or to another Loan Party (other than Holdings);

 

(c)                                  any Subsidiary that is not a Loan Party (i) may dispose of all or substantially all its assets (including any Disposition that is in the nature of a liquidation) to (A) another Subsidiary that is not a Loan Party or (B) to a Loan Party (other than Holdings), or (ii) may be dissolved, with its assets (if any) being transferred in accordance with clause (i) hereof;

 

(d)                                 in connection with any acquisition permitted under Section 7.03, any Restricted Subsidiary of the Borrower may merge into or consolidate with any other Person or permit any other Person to merge into or consolidate with it; provided that (i) the Person surviving such merger shall be a wholly-owned Restricted Subsidiary of the Borrower, (ii) in the case of any such merger to which any Loan Party (other than the Borrower) is a party, such Loan Party is the surviving Person and (iii) in the case of any merger involving the Borrower, the Borrower is the surviving Person;

 

(e)                                  any Disposition permitted by Section 7.05 may be structured as a sale of all or substantially all of the Equity Interests of a Subsidiary;

 

(f)                                   any Subsidiary which has no assets to distribute to its equity holders may be dissolved or liquidated; and

 

(g)                                  any Foreign Subsidiary that is not a Material Subsidiary may be dissolved or liquidated, including through an insolvency, bankruptcy or equivalent proceeding.

 

7.05                        Dispositions.  Make any Disposition or enter into any agreement to make any Disposition, except:

 

(a)                                 Dispositions of obsolete or worn out property, or property (including Intellectual Property) that is no longer used or useful in the business of the Borrower and its Restricted Subsidiaries whether now owned or hereafter acquired, in each case, in the ordinary course of business (it being understood that this clause (a) does not include the liquidation of any Store or the inventory and other assets located therein);

 

(b)                                 Dispositions of inventory and goods held for sale in the ordinary course of business;

 

(c)                                  Dispositions of equipment or Real Estate to the extent that such property is exchanged for credit against all or a portion of the purchase price of similar replacement property and, if such property is Collateral, then such replacement property is made subject to Liens and security interests in favor of the Collateral Agent for the benefit of the Credit Parties;

 

(d)                                 Dispositions of property by any Subsidiary to the Borrower or to a wholly-owned Restricted Subsidiary; provided that if the transferor of such property is a Subsidiary Guarantor, the

 

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transferee thereof must either be the Borrower or a Subsidiary Guarantor or an Investment permitted under Section 7.03;

 

(e)                                  Dispositions permitted by Sections 7.04 (a), (b), (c), (d), (f) and (g);

 

(f)                                   bulk sales or other dispositions of the inventory of the Borrower or a Restricted Subsidiary not in the ordinary course of business in connection with Store closings, at arm’s length, provided, that such Store closures and related Inventory dispositions shall not exceed (i) in any Fiscal Year, ten percent (10%) of the number of the Borrower’s and its Restricted Subsidiaries’ Stores as of the beginning of such Fiscal Year (net of new Store openings in such Fiscal Year) and (ii) in the aggregate from and after the Closing Date, twenty-five percent (25%) of the number of the Borrower’s and its Restricted Subsidiaries’ Stores in existence as of the Closing Date (net of new Store openings), provided, that all sales of Inventory in connection with Store closings in excess of ten (10) Store closings in any three month period, shall be in accordance with liquidation agreements and with professional liquidators reasonably acceptable to the Administrative Agent; provided, further that all Net Cash Proceeds received in connection therewith are applied to the Obligations if then required hereunder;

 

(g)                                  grants of licenses of Intellectual Property in the ordinary course of business, which do not materially interfere with the business of the Borrower and the Restricted Subsidiaries, taken as a whole;

 

(h)                                 Dispositions by the Borrower and the Restricted Subsidiaries not otherwise permitted under this Section 7.05; provided that (i) at the time of such Disposition, no Default shall exist or would result from such Disposition, (ii) the aggregate book value of all property Disposed of in reliance on this clause (h) in any Fiscal Year of Borrower shall not exceed $10.0 million; provided that an additional aggregate book value of not more than $5.0 million per year of property held by Foreign Subsidiaries may be Disposed of in reliance on this clause (h) and (iii) at least 75% of the purchase price for such asset shall be paid to the Borrower or such Restricted Subsidiary in cash (with an assumption of Indebtedness (other than Subordinated Indebtedness) of the Borrower or such Restricted Subsidiary by a purchaser in connection with the applicable Disposition shall be deemed to be cash for the purposes of this clause (iii));

 

(i)                                     Licenses for the conduct of licensed departments (other than to an Affiliate of any Loan Party) within any Store in the ordinary course of business; and

 

(j)                                    any issuance or sale of Equity Interests in, or sale of Indebtedness or other securities of, an Unrestricted Subsidiary;

 

provided, however, that any Disposition pursuant to clauses (a) though (d), and clauses (f) and (h) shall be for fair market value.

 

7.06                        Restricted Payments.  Declare or make, directly or indirectly, any Restricted Payment, except that:

 

(a)                                 each Restricted Subsidiary of the Borrower may make Restricted Payments to any other Loan Party (other than Holdings) and any other Person that owns a direct Equity Interest (other than Disqualified Equity Interests) in such Restricted Subsidiary, ratably according to their respective holdings of the type of Equity Interests in respect of which such Restricted Payment is being made;

 

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(b)                                 Borrower and each of its Restricted Subsidiaries may declare and make dividend payments or other distributions payable solely in the common or preferred stock or other common or preferred Equity Interests of such Person (other than Disqualified Equity Interests); provided that such Equity Interests shall be pledged to the Collateral Agent to the extent required by Section 6.12 hereof;

 

(c)                                  Borrower may declare and pay cash dividends to Holdings in an amount not to exceed an amount necessary to permit Holdings to pay (i) reasonable and customary corporate and operating expenses relating to maintaining its ownership interest in the Borrower (including reasonable out-of-pocket expenses for legal, administrative and accounting services provided by third parties, and compensation, benefits and other amounts payable to officers and employees in connection with their employment in the ordinary course of business and to board of director observers), (ii) franchise Taxes and similar fees required to maintain its corporate existence, (iii) any income Taxes imposed on Holdings or its direct or indirect parent of Holdings as the common parent of a consolidated, combined or similar Tax group of which the Borrower and/or its Restricted Subsidiaries are members, up to an amount not to exceed the amount of any such income Taxes that the Borrower and its Restricted Subsidiaries would have been required to pay on a separate company (or a stand-alone Tax group) basis (reduced by any income Taxes paid directly by the Borrower or its Restricted Subsidiaries); provided that in determining the hypothetical income Tax liability of the Borrower and/or its Restricted Subsidiaries on a separate company (or a stand-alone Tax group) basis for the purpose of clause (iii), any interest expense on any Indebtedness incurred by Holdings shall be treated as the interest expense of the Borrower and any dividends by Borrower attributable to the income of any Unrestricted Subsidiary shall be permitted only to the extent that cash payments were made for such purpose by such Unrestricted Subsidiary to the Borrower or any of its Restricted Subsidiaries and (iv) all costs or fees incurred in compliance with or in anticipation of compliance with Securities Laws and state securities Laws;

 

(d)                                 Borrower may (or make Restricted Payments to allow Holdings or any direct or indirect parent thereof to) repurchase, redeem or otherwise acquire or retire shares of its capital stock held by officers, directors or employees of Holdings or any Restricted Subsidiary (or their estates or trusts) following the death, disability or termination of employment of any such Person and, so long as no Default shall have occurred and be continuing (or would result therefrom), the Borrower may pay dividends to Holdings to permit such repurchase, redemption, retirement or acquisition; provided that the aggregate amount of payments to Holdings by the Borrower under this clause (d) will not exceed $2.5 million in any Fiscal Year of the Borrower (with any unused portion of such scheduled amount available for use in any succeeding Fiscal Year);

 

(e)                                  so long as no Event of Default shall have occurred and be continuing or would result therefrom, Borrower and each of its Restricted Subsidiaries may make other Restricted Payments at any time in an amount not to exceed the sum of (i) $10.0 million in the aggregate during the term of this Agreement and (ii) if, after giving effect to such Restricted Payment on a Pro Forma Basis, the Consolidated Leverage Ratio as of the last day of the most recently ended Measurement Period would be no greater than 2.00:1.00, the Available Amount at such time (for the purposes of clarity, the Available Amount under this clause (ii) cannot be used to make Restricted Payments (or payments to Holdings in order for Holdings to make) in order to make cash dividend payments on Holdings’ preferred stock);

 

(f)                                   Investments permitted by Section 7.03;

 

(g)                                  repurchases of Equity Interests in Holdings, the Borrower or any of the Restricted Subsidiaries deemed to occur upon exercise of stock options or warrants or similar rights to the

 

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extent such Equity Interests represent a portion of the exercise price of such options or warrants or similar rights;

 

(h)                                 the Borrower may make Restricted Payments to Holdings or to any direct or indirect parent of Holdings (and Holdings may make Restricted Payments to any direct or indirect parent of Holdings) the proceeds of which shall be used to make payments permitted under Sections 7.08(d), (e) and (h) (but only to the extent such payments have not been and are not expected to be made by the Borrower or a Restricted Subsidiary);

 

(i)                                     the declaration and payment of dividends on the Borrower’s common stock following the first public offering of the Borrower’s common stock or the common stock of any of its direct or indirect parents after the Closing Date, of up to 6.0% per annum of the net proceeds received by or contributed to the Borrower in or from any such public offering, other than public offerings with respect to the Borrower’s common stock registered on Form S-4 or Form S-8;

 

(j)                                    the payment of any dividend or distribution within 60 days after the date of declaration thereof, if at the date of declaration (i) such payment would have complied with the provisions of clause (i) and (ii) no Event of Default occurred and was continuing; and

 

(k)                                 the Special Distribution;

 

provided, for purposes of calculating the amount available to make Restricted Payments, any dividend or distribution paid in reliance on clause (j) shall be deemed to be a Restricted Payment on the date of declaration and not on the date of payment.

 

7.07                        Change in Nature of Business.  Engage in any material line of business substantially different from those lines of business conducted by the Borrower and the Restricted Subsidiaries on the date hereof or any business reasonably related or ancillary thereto.

 

7.08                        Transactions with Affiliates.  Enter into any transaction of any kind with any Affiliate of the Loan Parties (or any Unrestricted Subsidiary, whether or not an Affiliate of any Loan Party), whether or not in the ordinary course of business, other than on fair and reasonable terms substantially as favorable to the Loan Parties or such Restricted Subsidiary as would be obtainable by the Loan Parties or such Restricted Subsidiary at the time in a comparable arm’s length transaction with a Person other than an Affiliate; provided that the foregoing restriction shall not apply to:

 

(a)                                 transactions among (i) the Loan Parties, (ii) any Restricted Subsidiaries of Holdings that are not Loan Parties or (iii) the Loan Parties, on the one hand, and any Restricted Subsidiary that is not a Loan Party, on the other hand, that are at least as favorable to the Loan Parties as could be obtained in an arm’s-length transaction from an unaffiliated party;

 

(b)                                 (i) any Indebtedness permitted by Section 7.02(c); (ii) any Investments permitted by Section 7.03 (other than Investments in any Equity Investor or a portfolio company owned or controlled by an Equity Investor (other than any Loan Party)); and (iii) any Restricted Payment permitted by Section 7.06;

 

(c)                                  so long as no Event of Default has occurred and is continuing or would result therefrom, the payment of (i) Management Fees, provided that fees and other amounts paid under the Management Agreement (other than expense reimbursements) shall not exceed $2.5 million in any Fiscal Year plus the amount of such annual limit not paid in the previous Fiscal Year, and (ii) Transaction Expenses;

 

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(d)                                 employment, consulting (exclusive of the Management Agreement) and severance agreements;

 

(e)                                  loans and advances permitted by Section 7.03(b);

 

(f)                                   payment of directors’ fees, expenses and indemnities;

 

(g)                                  incurrence of Subordinated Indebtedness by the Loan Parties to the Equity Investors otherwise permitted hereunder or the issuance of Equity Interests by Holdings to the Equity Investors, provided that no such Equity Interests may constitute Disqualified Equity Interests;

 

(h)                                 transactions with joint ventures permitted hereunder for the purchase or sale of goods and services entered into in the ordinary course of business on terms no less favorable to the Loan Parties or such Restricted Subsidiary as would be obtainable by the Loan Parties or such Restricted Subsidiary at the time in a comparable arm’s length transaction;

 

(i)                                     customary payments by the Borrower and any of its Restricted Subsidiaries to the Sponsor made for any financial advisory, financing, underwriting or placement services or in respect of other investment banking activities (including in connection with acquisitions or divestitures), which payments are approved by a majority of the disinterested members of the board of directors of Holdings in good faith;

 

(j)                                    transactions in which the Borrower or any of the Restricted Subsidiaries, as the case may be, delivers to the Administrative Agent a letter from an Independent Financial Advisor stating that such transaction is fair to the Borrower or such Restricted Subsidiary from a financial point of view;

 

(k)                                 investments by the Sponsor or the Equity Investors in securities of Holdings, the Borrower or any of the Restricted Subsidiaries so long as (A) the investment is being offered generally to other investors on the same or more favorable terms and (B) the investment constitutes less than 5.0% of the proposed or outstanding issue amount of such class of securities; and

 

(l)                                     Restricted Payments permitted by Section 7.06.

 

7.09                        Burdensome Agreements.  Enter into or permit to exist any Contractual Obligation (other than this Agreement or any other Loan Document) that (a) limits the ability (i) of any Restricted Subsidiary of Borrower to make Restricted Payments to any Loan Party or to otherwise transfer property to or invest in any Loan Party, except for any agreement in effect (A) on the date hereof and set forth on Schedule 7.09 and any modification, replacement, renewal, reinvestment or extension of any of the foregoing or (B) at the time any Person becomes a Restricted Subsidiary of Borrower, so long as such agreement was not entered into solely in contemplation of such Person becoming a Restricted Subsidiary of Borrower, (ii) of any Restricted Subsidiary of Borrower to Guarantee the Indebtedness of the Borrower, (iii) of any Restricted Subsidiary of Borrower to make or repay loans to a Loan Party or (iv) of the Borrower or any Restricted Subsidiary to create, incur, assume or suffer to exist Liens on property of such Person; provided, however, that this clause (iv) shall not prohibit any negative pledge incurred or provided in favor of any holder of Indebtedness permitted under Section 7.02 solely to the extent any such negative pledge relates to the property financed by or the subject of such Indebtedness; or (b) requires the grant of a Lien to secure an obligation of such Person if a Lien is granted to secure another obligation of such Person.  The foregoing restrictions shall not be violated by reason of (i) applicable Laws, (ii) this Agreement and the other Loan Documents, (iii) (A) the ABL Loan Documents so long as the restrictions of the kind referred to

 

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in the previous sentence contained therein, taken as a whole, are not materially more restrictive than those contained in the ABL Loan Documents (as in effect on the Closing Date), (B) the Swedish Credit Facility, or (C) documents governing Permitted Holdco Debt so long as the restrictions of the kind referred to in the previous sentence contained therein, taken as a whole, are no more restrictive than those contained herein, (iv) customary non-assignment provisions of any contract, lease or license of the Borrower or any Restricted Subsidiary of the Borrower, (v) customary restrictions on a Subsidiary imposed pursuant to an agreement entered into for the sale or disposition of all or substantially all the Equity Interests or assets of a Subsidiary pending the closing of such sale or disposition, (vi) customary provisions in joint venture agreements and other similar agreements applicable to joint ventures entered into in the ordinary course of business, (vii) documents that represent Indebtedness of a Restricted Subsidiary that is not a Loan Party that is permitted by Section 7.03 to the extent such restriction applies only to such Restricted Subsidiary, (viii) documents that comprise restrictions imposed by any agreement governing Indebtedness entered into after the Closing Date and permitted under Section 7.03 that are, taken as a whole, in the good faith judgment of the Borrower, no more restrictive with respect to the Borrower or any Restricted Subsidiary than customary market terms for Indebtedness of such type (and, in any event, are no more restrictive than the restrictions contained in this Agreement), so long as the Borrower shall have determined in good faith that such restrictions will not affect its obligation or ability to make any payments or grant any Liens required hereunder or (vii) any restrictions under any agreement that amends, refinances or replaces any agreement containing restrictions permitted under the preceding clauses provided that the terms and conditions are no less favorable taken as a whole to the Restricted Subsidiary.

 

7.10                        Amendments of Material Indebtedness.  Amend, modify or waive any of the Loan Party’s rights under any Material Indebtedness (other than on account of any refinancing thereof otherwise permitted hereunder), in each case, to the extent that such amendment, modification or waiver would reasonably be likely to have a Material Adverse Effect.

 

7.11                        Accounting Changes.  Make any change in their Fiscal Year; provided, however, that Holdings and the Borrower may, upon written notice to the Administrative Agent, change its fiscal year to any other fiscal year reasonably acceptable to the Administrative Agent, in which case, Holdings, the Borrower and the Administrative Agent will, and are hereby authorized by the Lenders to, make any adjustments to this Agreement that are necessary to reflect such change in Fiscal Year.

 

7.12                        Prepayments, Etc. of Indebtedness.  Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner any Subordinated Indebtedness, or make any payment in violation of any subordination terms of any Subordinated Indebtedness, except (a) regularly scheduled or mandatory repayments or redemptions of Subordinated Indebtedness, (b)  voluntary prepayments of Subordinated Indebtedness as long as no Default or Event of Default then exists or would arise as a result of entering into such transaction or the making such payment, (c) refinancings and refundings of such Indebtedness in compliance with Section 7.02(b) or Section 7.02(e), as applicable, and (d) so long as no Event of Default shall have occurred and be continuing or would result therefrom, prepayments, redemptions, purchases, defeasances or other satisfactions of Subordinated Indebtedness from the Available Amount at such time if, after giving effect to such prepayments, redemptions, purchases, defeasances or other satisfactions on a Pro Forma Basis, the Consolidated Leverage Ratio as of the last day of the most recently ended Measurement Period would be no greater than 2.00:1.00.

 

7.13                        Holding Company.  In the case of Holdings, engage in any business or activity other than (a) the ownership of all outstanding Equity Interests in the Borrower, (b) maintaining its corporate existence, (c) participating in Tax, accounting and other administrative activities as the parent of the Consolidated group of companies, including the Loan Parties, (d) the execution and delivery of the Loan Documents, the ABL Loan Documents, agreements governing other Indebtedness of the Borrower and its Subsidiaries not otherwise prohibited hereunder and agreements governing Permitted Holdco Debt, in each

 

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case, to which it is a party and the performance of its obligations thereunder, (e) any public offering of its common stock or any other issuance of its Equity Interests or any transaction permitted under Section 7.04, (f) holding any cash or property received in connection with Restricted Payments made by the Borrower in accordance with Section 7.06 pending application thereof by Holdings, (g) providing indemnification to officers and directors and (h) activities incidental to the businesses or activities described in clauses (a) through (g) of this Section.

 

7.14        Sale and Leaseback Transactions.  Enter into any arrangement, directly or indirectly, with any person whereby it shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as the property being sold or transferred, provided that Borrower and its Restricted Subsidiaries may become and remain liable as lessee, guarantor or other surety with respect to any such lease if and to the extent that the Borrower or any of its Restricted Subsidiaries would be permitted to enter into, and remain liable under, such lease to the extent that the transaction would be permitted under Section 7.02, assuming the sale and lease back transaction constituted Indebtedness in a principal amount equal to the gross proceeds of the sale and the related sale were permitted under Section 7.05(h).

 

7.15        Financial Covenant. Permit the Consolidated Leverage Ratio on the last day of any Fiscal Quarter of the Borrower (i) ending after the Amendment No. 4 Effective Date and prior to June 30, 2018 to be greater than 5.00:1.00; (ii) ending on or after June 30, 2018 and prior to June 30, 2019, to be greater than 4.75:1.00; (iii) ending on or after June 30, 2019 and prior to June 30, 2020, to be greater than 4.50:1.00; (iv) ending on or after June 30, 2020 and prior to June 30, 2021, to be greater than 4.25:1.00; and (v) ending on or after June 30, 2021 to be greater than 4.00:1.00.

 

ARTICLE VIII
 EVENTS OF DEFAULT AND REMEDIES

 

8.01        Events of Default.  Any of the following shall constitute an Event of Default:

 

(a)           Non-Payment.  The Borrower or any other Loan Party fails to (i) pay when and as required to be paid herein, any amount of principal of any Loan, or (ii) pay within three Business Days after the same becomes due, any interest on any Loan, or any fee due hereunder, or (iii) pay within five days after the same becomes due, any other amount payable hereunder or under any other Loan Document; or

 

(b)           Specific Covenants.  Any Loan Party or any of its Restricted Subsidiaries fails to perform or observe any term, covenant or agreement applicable to it contained in any of Section 6.03(a), 6.05(a) (solely as it relates to the Borrower), 6.11, or Article VII; or

 

(c)           Other Defaults.  Any Loan Party fails to perform or observe any other covenant or agreement (not specified in Section 8.01(a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 days following receipt of notice from the Administrative Agent or the Required Lenders; or

 

(d)           Representations and Warranties.  Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the Borrower or any other Loan Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith shall be incorrect or misleading in any material respect when made or deemed made; or

 

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(e)           Cross-Default.  (i) Any Loan Party or any Restricted Subsidiary thereof (A) fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount (including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than $10.0 million, or (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness or Guarantee or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded; provided that (x) this paragraph (e) (B) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness if such sale or transfer is permitted hereunder and under the documents providing for such Indebtedness and (y) the occurrence of an event of default under the ABL Facility (other than a payment event of default) shall not constitute an Event of Default under this clause (e)(B) until the earliest of (x) 30 days after the date of such event of default (during which period such event of default is not waived or cured), (y) the acceleration of the obligations under the ABL Facility or (z) the exercise of secured creditor remedies by the administrative agent under the ABL Facility and/or lenders under the ABL Facility as a result of such event of default; or (ii) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting from (A) any event of default under such Swap Contract as to which a Loan Party or any Restricted Subsidiary thereof is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which a Loan Party or any Restricted Subsidiary thereof is an Affected Party (as so defined) and, in either event, the Swap Termination Value owed by such Loan Party or such Restricted Subsidiary as a result thereof is greater than $10.0 million; or

 

(f)            Insolvency Proceedings, Etc.  Any Loan Party or any Material Subsidiary institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged or unstayed for 60 calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for 60 calendar days, or an order for relief is entered in any such proceeding; or

 

(g)           Inability to Pay Debts; Attachment.  (i) Any Loan Party or any Material Subsidiary becomes unable or admits in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of any such Person and is not released, vacated or fully bonded within 30 days after its issue or levy; or

 

(h)           Judgments.  There is entered against any Loan Party or any Material Subsidiary and remains unpaid one or more final judgments or orders for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding $10.0 million (to the extent not

 

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covered by independent third-party insurance as to which the insurer is rated at least “A” by A.M. Best Company, has been notified of the potential claim and does not dispute coverage) and (i) enforcement proceedings are commenced by any creditor upon such judgment or order, or (ii) there is a period of 30 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or

 

(i)            ERISA.  An ERISA Event occurs or any substantially similar event occurs with respect to a Foreign Plan (that would have been an ERISA Event had the Foreign Plan been subject to ERISA and that gives rise to liability under analogous foreign law) which, together with all other ERISA Events (or such substantially similar events with respect to Foreign Plans) that have occurred, has resulted or could reasonably be expected to result in a Material Adverse Effect; or

 

(j)            Invalidity of Loan Documents.  Any material provision of any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect against Holdings, the Borrower or any Material Subsidiary; or any Loan Party contests in any manner the validity or enforceability of any provision of any Loan Document; or any Loan Party denies that it has any or further liability or obligation under any provision of any Loan Document, or purports to revoke, terminate or rescind any provision of any Loan Document; or seeks to avoid, limit or otherwise adversely affect any Lien purported to be created under any Collateral Document; or

 

(k)           Change of Control.  There occurs any Change of Control; or

 

(l)            Collateral Documents.  Any Collateral Document after delivery thereof pursuant to Article IV, Section 6.12, or Section 6.18 shall for any reason (other than pursuant to the terms thereof) cease (or shall be asserted by any Loan Party or, in the reasonable discretion of the Administrative Agent, any other Person not) to create a valid and perfected First Priority Lien or Second Priority Lien, as applicable (subject to Liens permitted by Section 7.01), on the Collateral purported to be covered thereby with an aggregate fair market value for such Collateral of $10.0 million or more, for any reason other than the failure of Collateral Agent to maintain control over any Collateral in its possession.

 

8.02        Remedies upon Event of Default.  If any Event of Default occurs and is continuing, the Administrative Agent may (and at the request of, or with the consent of, the Required Lenders, shall) take any or all of the following actions:

 

(a)           declare the commitment of each Lender to make Loans to be terminated, whereupon such commitments and obligation shall be terminated;

 

(b)           declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Loan Parties; and

 

(c)           whether or not the maturity of the Obligations shall have been accelerated pursuant hereto, proceed to protect, enforce and exercise all rights and remedies under this Agreement, any of the other Loan Documents or applicable Law, including, but not limited to, by suit in equity, action at law or other appropriate proceeding, whether for the specific performance of any covenant or agreement contained in this Agreement and the other Loan Documents or any instrument pursuant to which the Obligations are evidenced, and, if such amount shall have become due, by

 

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declaration or otherwise, proceed to enforce the payment thereof or any other legal or equitable right of the Credit Parties;

 

provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code of the United States, the obligation of each Lender to make Loans shall automatically terminate, and the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, in each case without further act of the Administrative Agent or any Lender.

 

8.03        Application of Funds.  After the exercise of remedies provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable as set forth in the proviso to Section 8.02), or after the commencement of any Liquidation, subject to the terms of the Intercreditor Agreement, any amounts received on account of the Obligations shall be applied (by the Administrative Agent as hereby instructed so to apply) in the following order:

 

First, to payment in full of that portion of the Obligations constituting fees, indemnities, Credit Party Expenses and other amounts (including fees, charges and disbursements of counsel to the Administrative Agent and the Collateral Agent and amounts payable under Article III) payable to the Administrative Agent and the Collateral Agent, each in its capacity as such;

 

Second, to payment in full of all other Obligations ratably among the parties holding such Obligations in proportion to the amounts described in this clause Second payable to them in their capacities as such;

 

Last, the balance, if any, after all of the Obligations have been paid in full, to the applicable Loan Parties or as otherwise required by Law.

 

Notwithstanding the foregoing, (a) amounts received from the Borrower or any Guarantor that is not a Qualified ECP Guarantor shall not be applied to the Obligations that are Excluded Swap Obligations (it being understood, that in the event that any amount is applied to Obligations other than Excluded Swap Obligations as a result of this this clause (a), the Administrative Agent shall, to the extent permitted by law, make such adjustments as it determines are appropriate to distributions pursuant to clause Second above from amounts received from Qualified ECP Guarantors to ensure, as nearly as possible, that the proportional aggregate recoveries with respect to Obligations described in clause Second above by the holders of any Excluded Swap Obligations are the same as the proportional aggregate recoveries with respect to other Obligations pursuant to clause Second above) and (b) Obligations arising under Cash Management Services and Bank Products shall be excluded from the application described above if the Administrative Agent has not received written notice thereof, together with such supporting documentation as the Administrative Agent may request, from the applicable provider of Cash Management Services or Bank Products, as the case may be.  Each provider of Cash Management Services or Bank Products not a party to this Agreement that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of Article IX hereof for itself and its Affiliates as if a “Lender” party hereto.

 

ARTICLE IX
 ADMINISTRATIVE AGENT

 

9.01        Appointment and Authority.

 

(a)           Each of the Lenders hereby irrevocably appoints JPMorgan to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the

 

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Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Article IX are solely for the benefit of the Administrative Agent and the Lenders, and neither the Borrower nor any other Loan Party shall have rights as a third party beneficiary of any of such provisions.

 

(b)           The Administrative Agent shall also act as the Collateral Agent under the Loan Documents, and each of the Lenders (in its capacities as a Lender) hereby irrevocably appoints and authorizes the Administrative Agent to act as the agent of such Lender for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure any of the Obligations, together with such powers and discretion as are reasonably incidental thereto.  In this connection, the Collateral Agent and any co-agents, sub-agents and attorneys-in-fact appointed by the Collateral Agent pursuant to Section 9.05 for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the Agents, shall be entitled to the benefits of all provisions of this Article IX and Article XI (including Section 11.04(c), as though such co-agents, sub-agents and attorneys-in-fact were the Collateral Agent under the Loan Documents) as if set forth in full herein with respect thereto.

 

9.02        Rights as a Lender.  The Person serving as the Administrative Agent and Collateral Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent or the Collateral Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent and Collateral Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent or the Collateral Agent hereunder and without any duty to account therefor to the Lenders.

 

9.03        Exculpatory Provisions.  The Agents shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents.  Without limiting the generality of the foregoing, the Agents:

 

(a)           shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

 

(b)           shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent or Collateral Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent and the Collateral Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent or the Collateral Agent to liability or that is contrary to any Loan Document or applicable Law; and

 

(c)           shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or the Collateral Agent or any of its Affiliates in any capacity.

 

The Agents shall not be liable for any action taken or not taken by them (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be

 

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necessary, or as the Agents shall believe in good faith shall be necessary, under the circumstances as provided in Sections 11.01 and 8.02) or (ii) in the absence of their own gross negligence or willful misconduct.  The Agents shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent by the Borrower or a Lender.

 

The Agents shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or the creation, perfection or priority of any Lien purported to be created by the Collateral Documents, (v) the value or the sufficiency of any Collateral, or (vi) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Agents.

 

9.04        Reliance by Agents.  The Agents shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by them to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Agents also may rely upon any statement made to them orally or by telephone and believed by them to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Loan.  The Agents may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by them, and shall not be liable for any action taken or not taken by them in accordance with the advice of any such counsel, accountants or experts.

 

9.05        Delegation of Duties.  The Agents may perform in any and all of their duties and exercise their rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent or the Collateral Agent, as applicable.  The Agents and any such sub-agent may perform any and all of their duties and exercise their rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Article IX shall apply to any such sub-agent and to the Related Parties of the Agents and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facility provided for herein as well as activities as Administrative Agent or Collateral Agent.

 

9.06        Resignation of Agents.  The Agents may at any time give notice of its resignation to the Lenders and the Borrower, including the effective date of such resignation which may be not less than 30 days from the date of such notice.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, with the consent of the Borrower at all times other than during the existence of an Event of Default (which consent shall not be unreasonably withheld or delayed), to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Agents give notice of their resignation, then the retiring Agents may on behalf of the Lenders, appoint a successor Administrative Agent and Collateral Agent meeting the qualifications set forth above; provided that if the Agents shall notify the Borrower and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (a) the retiring Agents shall be discharged

 

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from their duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Collateral Agent on behalf of the Lenders under any of the Loan Documents, the retiring Collateral Agent shall continue to hold such collateral security until such time as a successor Collateral Agent is appointed) and (b) all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section 9.06.  Upon the acceptance of a successor’s appointment as Administrative Agent and Collateral Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent and Collateral Agent, and the retiring Administrative Agent and Collateral Agent shall be discharged from all of their respective duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this Section 9.06).  The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the retiring Administrative Agent’s or Collateral Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article IX and Section 11.04 shall continue in effect for the benefit of such retiring Administrative Agent and Collateral Agent, their respective sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent and Collateral Agent was acting as Administrative Agent and Collateral Agent.

 

9.07        Non-Reliance on Agents and Other Lenders.  Each Lender acknowledges that it has, independently and without reliance upon the Agents, the Arrangers, the Co-Documentation Agents or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will, independently and without reliance upon the Agents, the Arrangers, the Co-Documentation Agents or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.  The Agents, the Arrangers and the Co-Documentation Agents shall not have any duty or responsibility to provide any Lender with any other credit or other information concerning the affairs, financial condition or business of any Loan Party that may come into the possession of the Agents, the Arrangers and the Co-Documentation Agents.

 

9.08        No Other Duties, Etc.Anything herein to the contrary notwithstanding, none of the Arrangers or Co-Documentation Agents listed on the cover page hereof shall have (i) any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, the Collateral Agent or a Lender hereunder or (ii) any fiduciary relationship with the Lenders, Borrower or any other Person pursuant to the Loan Documents.

 

9.09        Administrative Agent May File Proofs of Claim.  In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise

 

(a)           to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective

 

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agents and counsel and all other amounts due the Lenders and the Administrative Agent under Sections 2.07 and 11.04) allowed in such judicial proceeding; and

 

(b)           to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, if the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.07 and 11.04.

 

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

 

9.10        Collateral and Guaranty Matters.  The Lenders irrevocably authorize the Agents, at their option and in their discretion,

 

(a)           to release any Lien on any property granted to or held by the Collateral Agent under any Loan Document (i) upon termination of the Aggregate Commitments and Additional Term B-12 Commitment and payment in full of all Obligations (other than (A) contingent indemnification obligations for which no claim has then been asserted, (B) obligations and liabilities under Cash Management Services and (C) obligations and liabilities under Bank Products), (ii) that is sold or to be sold as part of or in connection with any sale permitted hereunder or under any other Loan Document to a Person that is not a Loan Party, or (iii) if approved, authorized or ratified in writing in accordance with Section 11.01;

 

(b)           to release any Guarantor from its obligations hereunder if such Person ceases to be a Restricted Subsidiary as a result of a transaction permitted hereunder; and

 

(c)           to subordinate any Lien on any property granted to or held by the Collateral Agent under any Loan Document to the holder of any Lien on such property that is permitted by Section 7.01(i).

 

Upon request by the Agents at any time, the Required Lenders will confirm in writing the Agents’ authority to release or subordinate their interest in particular types or items of property, or to release any Guarantor from its obligations hereunder pursuant to this Section 9.10.  In each case as specified in this Section 9.10, the Administrative Agent or the Collateral Agent, as applicable, will, at the Borrower’s expense, execute and deliver to the applicable Loan Party such documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted under the Collateral Documents or to subordinate its interest in such item, or to release such Guarantor from its obligations hereunder, in each case in accordance with the terms of the Loan Documents and this Section 9.10.

 

9.11        Notice of Transfer.  The Agents may deem and treat a Lender party to this Agreement as the owner of such Lender’s portion of the Obligations for all purposes, unless and until, and except to the extent, an Assignment and Assumption shall have become effective as set forth in Section 11.06.

 

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9.12        Agency for Perfection.  Each Lender hereby appoints each other Lender as agent for the purpose of perfecting Liens for the benefit of the Agents and the Lenders, in assets which, in accordance with Article 9 of the UCC or any other applicable Law can be perfected only by possession.  Should any Lender (other than the Agents) obtain possession of any such Collateral, such Lender shall notify the Agents thereof, and, promptly upon the Collateral Agent’s request therefor shall deliver such Collateral to the Collateral Agent or otherwise deal with such Collateral in accordance with the Collateral Agent’s instructions.

 

9.13        Indemnification of Agents.  The Lenders agree to indemnify the Agents (to the extent not reimbursed by the Loan Parties and without limiting the obligations of Loan Parties hereunder), ratably according to their respective principal amount of Loans held (or, if the Loans have been repaid, according to their respective principal amount of Loans held immediately prior to such repayment), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against any Agent in any way relating to or arising out of this Agreement or any other Loan Document or any action taken or omitted to be taken by any Agent in connection therewith; provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from such Agent’s gross negligence or willful misconduct as determined by a final and nonappealable judgment of a court of competent jurisdiction.

 

9.14        Withholding Tax.  To the extent required by any applicable law, the Agent may withhold from any payment to any Lender an amount equivalent to any applicable withholding Tax.  If the Internal Revenue Service or any other authority of the United States or other jurisdiction asserts a claim that the Agent did not properly withhold Tax from amounts paid to or for the account of any Lender for any reason (including, without limitation, because the appropriate form was not delivered or not properly executed, or because such Lender failed to notify the Agent of a change in circumstance that rendered the exemption from, or reduction of withholding Tax ineffective), such Lender shall indemnify and hold harmless the Agent (to the extent that the Agent has not already been reimbursed by the Borrower and without limiting the obligation of the Borrower to do so) for all amounts paid, directly or indirectly, by the Agent as Tax or otherwise, including any interest, additions to Tax or penalties thereto, together with all expenses incurred, including legal expenses and any other out-of-pocket expenses, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.

 

9.15        Relation Among Lenders.  The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or omissions of, or (except as otherwise set forth herein in case of the Agents) authorized to act for, any other Lender.

 

9.16        Certain ERISA Matters.  (a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true:

 

(i) such Lender is not using “plan assets” (within the meaning of the Plan Asset Regulations or otherwise) of one or more Benefit Plans in connection with the Loans, the Letters of Credit or the Commitments,

 

(ii) the prohibited transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset

 

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managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable so as to exempt from the prohibitions of ERISA Section 406 and Code Section 4975 such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, and the conditions for exemptive relief thereunder are and will continue to be satisfied in connection therewith,

 

(iii) (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, or

 

(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

 

(b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has not provided another representation, warranty and covenant as provided in sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that none of the Administrative Agent or any of its Affiliates is a fiduciary with respect to the assets of such Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related to hereto or thereto).

 

ARTICLE X
 CONTINUING GUARANTY

 

10.01      Guaranty.  Each Guarantor hereby absolutely and unconditionally guarantees, as a guaranty of payment and performance and not merely as a guaranty of collection, prompt payment when due, whether at stated maturity, by required prepayment, upon acceleration, demand or otherwise, and at all times thereafter, of any and all of the Obligations, whether for principal, interest, premiums, fees, indemnities, damages, costs, expenses or otherwise, of the Borrower to the Credit Parties, arising hereunder and under the other Loan Documents (including all renewals, extensions, amendments, refinancings and other modifications thereof and all costs, attorneys’ fees and expenses incurred by the Credit Parties in connection with the collection or enforcement thereof).  The Administrative Agent’s books and records showing the amount of the Obligations shall be admissible in evidence in any action or proceeding, and shall be binding upon each Guarantor, and conclusive for the purpose of establishing the amount of the Obligations.  This Guaranty shall not be affected by the genuineness, validity, regularity or enforceability of the Obligations or any instrument or agreement evidencing any Obligations, or by the existence, validity, enforceability, perfection, non-perfection or extent of any collateral therefor, or by any fact or circumstance

 

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relating to the Obligations which might otherwise constitute a defense to the obligations of any Guarantor under this Guaranty, and each Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to any or all of the foregoing.

 

Each Qualified ECP Guarantor (including the Borrower) hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Loan Party to honor all of each such Loan Party’s obligations (a) in respect of Swap Contracts to which it is a party and (b) under this Guaranty in respect of Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 10.01 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 10.01, or otherwise under this Guaranty, as it relates to such other Loan Party, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of each Qualified ECP Guarantor under this Section shall remain in full force and effect until the termination of this Guaranty in accordance with Section 10.06 hereof.  Each Qualified ECP Guarantor intends that this Section 10.01 constitute, and this Section 10.01 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Loan Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

10.02      Rights of Lenders.  Each Guarantor consents and agrees that the Credit Parties may, at any time and from time to time, without notice or demand, and without affecting the enforceability or continuing effectiveness hereof:  (a) amend, extend, renew, compromise, discharge, accelerate or otherwise change the time for payment or the terms of the Obligations or any part thereof; (b) take, hold, exchange, enforce, waive, release, fail to perfect, sell, or otherwise dispose of any security for the payment of this Guaranty or any Obligations; (c) apply such security and direct the order or manner of sale thereof as the Administrative Agent and the Lenders in their sole discretion may determine; and (d) release or substitute one or more of any endorsers or other guarantors of any of the Obligations.  Without limiting the generality of the foregoing, each Guarantor consents to the taking of, or failure to take, any action which might in any manner or to any extent vary the risks of such Guarantor under this Guaranty or which, but for this provision, might operate as a discharge of such Guarantor.

 

10.03      Certain Waivers.  Each Guarantor waives (a) any defense arising by reason of any disability or other defense of the Borrower or any other Guarantor, or the cessation from any cause whatsoever (including any act or omission of any Credit Party) of the liability of the Borrower; (b) any defense based on any claim that such Guarantor’s obligations exceed or are more burdensome than those of the Borrower; (c) the benefit of any statute of limitations affecting such Guarantor’s liability hereunder; (d) any right to proceed against the Borrower, proceed against or exhaust any security for the Obligations, or pursue any other remedy in the power of any Credit Party whatsoever; (e) any benefit of and any right to participate in any security now or hereafter held by any Credit Party; and (f) to the fullest extent permitted by law, any and all other defenses or benefits that may be derived from or afforded by applicable law limiting the liability of or exonerating guarantors or sureties.  Each Guarantor expressly waives all setoffs and counterclaims and all presentments, demands for payment or performance, notices of nonpayment or nonperformance, protests, notices of protest, notices of dishonor and all other notices or demands of any kind or nature whatsoever with respect to the Obligations, and all notices of acceptance of this Guaranty or of the existence, creation or incurrence of new or additional Obligations.  As provided below, this Guaranty shall be governed by, and construed in accordance with, the laws of the State of New York.

 

10.04      Obligations Independent.  The obligations of each Guarantor hereunder re those of primary obligor, and not merely as surety, and are independent of the Obligations and the obligations of any other guarantor, and a separate action may be brought against each Guarantor to enforce this Guaranty whether or not the Borrower or any other person or entity is joined as a party.

 

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10.05      Subrogation.  No Guarantor shall exercise any right of subrogation, contribution, indemnity, reimbursement or similar rights with respect to any payments it makes under this Guaranty until all of the Obligations (other than any indemnity obligations for unasserted claims that by its terms survives the termination of this Agreement) and any amounts payable under this Guaranty have been paid and performed in full and the Commitments and the facility are terminated.  If any amounts are paid to any Guarantor in violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of the Credit Parties and shall forthwith be paid to the Credit Parties to reduce the amount of the Obligations, whether matured or unmatured.

 

10.06      Termination; Reinstatement.  This Guaranty is a continuing and irrevocable guaranty of all Obligations now or hereafter existing and shall remain in full force and effect until all Obligations and any other amounts payable under this Guaranty are paid in full in cash (other than any indemnity obligations for unasserted claims that by its terms survives the termination of this Agreement) and the Commitments and the facility with respect to the Obligations are terminated.  Notwithstanding the foregoing, this Guaranty shall continue in full force and effect or be revived, as the case may be, if any payment by or on behalf of the Borrower or any Guarantor is made, or any of the Credit Parties exercises its right of setoff, in respect of the Obligations and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by any of the Credit Parties in their discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Laws or otherwise, all as if such payment had not been made or such setoff had not occurred and whether or not the Credit Parties are in possession of or have released this Guaranty and regardless of any prior revocation, rescission, termination or reduction.  The obligations of each Guarantor under this paragraph shall survive termination of this Guaranty.

 

10.07      Subordination.  Each Guarantor hereby subordinates the payment of all obligations and indebtedness of the Borrower owing to such Guarantor, whether now existing or hereafter arising, including but not limited to any obligation of the Borrower to any Guarantor as subrogee of the Credit Parties or resulting from such Guarantor’s performance under this Guaranty, to the indefeasible payment in full in cash of all Obligations (other than any indemnity obligations for unasserted claims that by its terms survives the termination of this Agreement).  If the Credit Parties so request, any such obligation or indebtedness of the Borrower to any Guarantor shall be enforced and performance received by such Guarantor as trustee for the Credit Parties and the proceeds thereof shall be paid over to the Credit Parties on account of the Obligations, but without reducing or affecting in any manner the liability of such Guarantor under this Guaranty.

 

10.08      Stay of Acceleration.  If acceleration of the time for payment of any of the Obligations is stayed, in connection with any case commenced by or against any Guarantor or the Borrower under any Debtor Relief Laws, or otherwise, all such amounts shall nonetheless be payable by such Guarantor immediately upon demand by the Credit Parties.

 

10.09      Condition of Borrower.  Each Guarantor acknowledges and agrees that it has the sole responsibility for, and has adequate means of, obtaining from the Borrower and any other guarantor such information concerning the financial condition, business and operations of the Borrower and any such other Guarantor as such Guarantor requires, and that none of the Credit Parties has any duty, and such Guarantor is not relying on the Credit Parties at any time to disclose to such Guarantor any information relating to the business, operations or financial condition of the Borrower or any other Guarantor (such Guarantor waiving any duty on the part of the Credit Parties to disclose such information and any defense relating to the failure to provide the same).

 

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ARTICLE XI
 MISCELLANEOUS

 

11.01      Amendments, Etc.  No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower or the applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver or consent shall:

 

(a)           extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 8.02) without the written consent of such Lender (it being understood that the waiver of any mandatory prepayment shall not constitute an extension or increase of any Commitment of any Lender);

 

(b)           postpone any date fixed by this Agreement, any Additional Credit Extension Amendment or any other Loan Document for any payment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any of the other Loan Documents without the written consent of each Lender entitled to such payment (it being understood that the waiver of or amendment to the terms of any mandatory prepayment of the Loans shall not constitute a postponement of any date scheduled for the payment of principal or interest);

 

(c)           reduce the principal of, or the rate of interest specified herein on, any Loan, or any fees or other amounts payable hereunder or under any other Loan Document, without the written consent of each Lender entitled to such amount; provided, however, that only the consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay interest at the Default Rate;

 

(d)           change Section 8.03 in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender;

 

(e)           change any provision of this Section 11.01 or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender;

 

(f)            except as expressly permitted hereunder, release all or substantially all of the Guarantors from their obligations under the Loan Documents without the written consent of each Lender; or

 

(g)           except for releases of Collateral in accordance with the provisions of Section 9.10 hereof (in which case, such release may be made by the Administrative Agent acting alone), release all or substantially all of the Collateral from the Liens of the Collateral Documents in any transaction or series of related transactions, without the written consent of each Lender;

 

and provided further, that no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent or the Collateral Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent or the Collateral Agent, as applicable, under this Agreement or any other Loan Document.  Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except an amendment under clause (a), (b) or (c) above that directly affects the rights and obligations of such Lender.

 

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This Agreement may be amended (or amended and restated) with the written consent of the Required Lenders, the Administrative Agent and Loan Parties (i) to add one or more additional credit facilities to this Agreement and to permit the extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement and the other Loan Documents with the Loans and the accrued interest and fees in respect thereof and (ii) to include appropriately the Lenders holding such credit facilities in any determination of the Required Lenders.

 

In addition, notwithstanding the foregoing, this Agreement may be amended with the written consent of the Administrative Agent, the Loans Parties and the Lenders providing the Replacement Loans (as defined below) to permit the refinancing of all outstanding Loans of any Class (“Refinanced Loans”) with replacement loans (“Replacement Loans”) hereunder; provided that (a) the aggregate principal amount of such Replacement Loans shall not exceed the aggregate principal amount of such Refinanced Loans, (b) the Yield with respect to such Replacement Loans shall not be higher than the Yield for such Refinanced Loans (or similar interest rate spread applicable to such Refinanced Loans) immediately prior to such refinancing, (c) the weighted average life to maturity of such Replacement Loans shall not be shorter than the Weighted Average Life to Maturity of such Refinanced Loans at the time of such refinancing (except by virtue of amortization or prepayment of the Refinanced Loans prior to the time of such incurrence) and (d) all other terms applicable to such Replacement Loans shall be substantially identical to, or less favorable to the Lenders providing such Replacement Loans than, those applicable to such Refinanced Loans, except to the extent necessary to provide for covenants and other terms applicable to any period after the final maturity date of all Loans in effect immediately prior to such refinancing.

 

If any Lender does not consent to a proposed amendment, waiver, consent or release with respect to any Loan Document that requires the consent of each Lender, and that has been approved by the Required Lenders, the Borrower may replace such non-consenting Lender in accordance with Section 11.13; provided that such amendment, waiver, consent or release can be effected as a result of the assignment contemplated by such Section (together with all other such assignments required by the Borrower to be made pursuant to this paragraph).

 

Notwithstanding anything to the contrary herein contained, no provider of any Bank Product or Cash Management Service in its capacity as such (a) shall have any right to consent to any amendment, modification, termination or waiver of this Agreement or any other Loan Document (including any amendment and/or restatement of this Agreement and the other Loan Documents refinancing, replacing or restructuring the Loans and the Obligations including any increase thereof) or to contest any such amendment, modification, termination or waiver, (b) shall be deemed a Lender for any purposes of the Loan Documents, or (c) shall have any right to (i) enforce any security interest, right or remedy under any of the Loan Documents or (ii) instruct the Agents with respect to any action or inaction by the Agents with respect to the exercise of any rights or remedies under the Loan Documents or at law or equity, or consent to or contest any such action or inaction.  Except for the payment of amounts on account of Bank Products and Cash Management Services (but only to the extent the Agents shall have received sufficient funds therefor), the Agents shall have no duties or obligations to any provider of any Bank Product or Cash Management Services in its capacity as such.  The provisions of this paragraph shall survive the assignment by any Lender of its Loans and Commitments.

 

Notwithstanding anything to the contrary contained in this Section 11.01, if the Administrative Agent and the Borrower shall have jointly identified an obvious error (including, but not limited to, an incorrect cross-reference) or any error or omission of a technical or immaterial nature, in each case, in any provision of any Loan Document, then the Administrative Agent and/or the Collateral Agent (acting in their sole discretion) and the Borrower or any other relevant Loan Party shall be permitted to amend such provision and such amendment shall become effective without any further action or consent of any other party to any Loan Document.

 

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In addition, notwithstanding the foregoing, this Agreement and the other Loan Documents may be amended with the written consent of the Administrative Agent, the Borrower and the Lenders providing the Replacement Loans to permit the refinancing of all outstanding Loans of any Class.

 

11.02      Notices; Effectiveness; Electronic Communications.

 

(a)           Notices Generally.  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

 

(i)            if to Holdings, the Borrower, any Loan Party, the Administrative Agent or the Collateral Agent to the address, telecopier number, electronic mail address or telephone number specified for such Person on Schedule 11.02; and

 

(ii)           if to any other Lender, to the address, telecopier number, electronic mail address or telephone number specified in its Administrative Questionnaire.

 

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).  Notices delivered through electronic communications to the extent provided in subsection (b) below shall be effective as provided in such subsection (b).

 

(b)           Electronic Communications.  Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender pursuant to Article II if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications.

 

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor.

 

(c)           The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR

 

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STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.  In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to Holdings or any of its Subsidiaries, any Lender or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the Administrative Agent’s transmission of Borrower Materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Agent Party; provided, however, that in no event shall any Agent Party have any liability to Holdings or any of its Subsidiaries, any Lender or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

 

(d)           Change of Address, Etc.  Each of Holdings, the Borrower, any other Loan Party, and the Administrative Agent may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the other parties hereto.  Each other Lender may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the Borrower and the Administrative Agent.  In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, telecopier number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender.  Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable Law, including United States Federal and state securities Laws, to make reference to Borrower Materials that are not made available through the “Public Side Information” portion of the Platform and that may contain material non-public information with respect to the Borrower or its securities for purposes of United States Federal or state securities laws.

 

(e)           Reliance by Administrative Agent, the Collateral Agent and Lenders.  The Administrative Agent, the Collateral Agent and the Lenders shall be entitled to rely and act upon any notices (including telephonic Committed Loan Notices and Conversion/Continuation Notices) purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify the Administrative Agent, the Collateral Agent, each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower.  All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.

 

11.03      No Waiver; Cumulative Remedies.  No failure by any Lender, the Administrative Agent or the Collateral Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided, and provided under each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

 

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11.04      Expenses; Indemnity; Damage Waiver.

 

(a)           Costs and Expenses.  The Loan Parties shall pay all Credit Party Expenses within ten (10) Business Days after receipt of an invoice therefor.

 

(b)           Indemnification by the Loan Parties.  The Loan Parties shall indemnify the Administrative Agent (and any sub-agent thereof), the Collateral Agent, the Arrangers, the Co-Documentation Agents, the joint bookrunning managers, each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the reasonable and documented in reasonable detail fees, charges and disbursements of one counsel to all Indemnitees taken as a whole and, if reasonably necessary, a single local counsel for all Indemnitees taken as a whole in each relevant jurisdiction material to the interests of the Lenders, in each case, selected by the Administrative Agent and solely in the case of an actual conflict of interest between Indemnitees where the Indemnitees affected by such conflict inform the Borrower of such conflict, one additional counsel in each relevant jurisdiction material to the interest of the Lenders to each group of affected Indemnitees taken as a whole) incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower or any other Loan Party arising out of, in connection with, or as a result of (i) the preparation, execution, delivery or administration of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby or any amendment or waiver with respect hereto or thereto, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, or, in the case of the Administrative Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement and the other Loan Documents, (ii) any Loan or letter of credit or the use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or Release or threat of Release of Hazardous Materials, at, under, on or from any property or facility currently or formerly owned, leased or operated by Holdings or any of its Subsidiaries, or any Environmental Liability related in any way to Holdings or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee (y) result from a claim brought by the Borrower or any other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction, or (z) result from the presence, Release or threat of Release of Hazardous Materials or violations of Environmental Laws first occurring or first existing after completion of the foreclosure upon the Collateral, granting of a deed-in-lieu of foreclosure with respect to the Collateral or similar transfer of title or possession of the Collateral, unless such presence, release or violation is actually caused by any Loan Party or any Subsidiary thereof.  This Section 11.04(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims or damages arising from any non-Tax claim.

 

(c)           Reimbursement by Lenders.  To the extent that the Borrower for any reason fails to pay any amount required under subsection (a) or (b) of this Section 11.04 to be paid by it to the Agents (or any sub-agent thereof), or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the Collateral Agent, or such Related Party, as the case may be, such Lender’s share (based on the amount of Loans held by each Lender at the time that the applicable unreimbursed expense or indemnity payment is sought or if the Loans have been repaid in full, based on the amount of Loans held by such Lender immediately prior to such repayment) of such unpaid

 

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amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or the Collateral Agent, in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or the Collateral Agent in connection with such capacity.  The obligations of the Lenders under this subsection (c) are subject to the provisions of Section 2.10(d).

 

(d)           Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable law, the Loan Parties shall not assert, and hereby waive, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof.  No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as determined by a final and nonappealable judgment of a court of competent jurisdiction.

 

(e)           Payments.  All amounts due under this Section 11.04 shall be payable not later than ten Business Days after receipt of an invoice or demand therefor.

 

(f)            Survival.  The agreements in this Section 11.04 shall survive the resignation of the Agents, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.

 

11.05      Payments Set Aside.  To the extent that any payment by or on behalf of any of the Loan Parties is made to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Effective Rate from time to time in effect.  The obligations of the Lenders under clause (b) of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Agreement.

 

11.06      Successors and Assigns.

 

(a)           Successors and Assigns Generally.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of Section 11.06(b), (ii) by way of participation in accordance with the provisions of Section 11.06(d), or (iii) by way of pledge or assignment

 

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of a security interest subject to the restrictions of Section 11.06(f) (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section 11.06 and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)           Assignments by Lenders.  Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment(s) and the Loans at the time owing to it); provided that any such assignment shall be subject to the following conditions:

 

(i)            Minimum Amounts.

 

(A)          in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loans at the time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

 

(B)          in any case not described in subsection (b)(i)(A) of this Section 11.06, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $500,000 (and in integral multiples of $500,000 in excess thereof) and after giving effect thereto, the assigning Lender shall hold a Commitment of at least $1.0 million, unless, in each case, each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed); provided, however, that concurrent assignments to members of an Assignee Group and concurrent assignments from members of an Assignee Group to a single Eligible Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a single assignment for purposes of determining whether such minimum amount has been met;

 

(ii)           Proportionate Amounts.  Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned;

 

(iii)          Required Consents.  No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section 11.06 and, in addition:

 

(A)          the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (1) an Event of Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the Borrower shall be deemed to have consented to any assignment if it does not respond to a written request for consent within 10 Business Days; and

 

(B)          the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of (i) any

 

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Commitment if such assignment is to a Person that is not a Lender with a Commitment, an Affiliate of Lender or an Approved Fund with respect to such Lender or (ii) any Loan to a Person that is not a Lender, an Affiliate of a Lender or an Approved Fund (except that the approval of the Administrative Agent shall not be required with respect to one or more assignments of all or any of the Loans to any other Sponsor Affiliated Lender);

 

(iv)          Assignment and Assumption.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of $3,500; provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire and any Tax forms required by Section 3.01(e) or (f);

 

(v)           No Assignments to Certain Persons.  No such assignment shall be made (A) to Holdings or the Borrower except as permitted under Section 2.03(d) or (B) subject to subsection (h) below, to any of the Sponsor or its Affiliates; and

 

(vi)          No Assignment to Natural Persons.  No such assignment shall be made to a natural person.

 

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section 11.06, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05 and 11.04 with respect to facts and circumstances occurring prior to the effective date of such assignment).  Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with Section 11.06(d).

 

(c)           Register.  The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal and interest amounts of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.

 

The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

 

(d)           Participations.  Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that (i) such Lender’s obligations under this

 

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Agreement shall remain unchanged, including, for avoidance of doubt, any indemnification obligation with respect to the participated interest,  (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in clauses (a), (b), (c), (f) and (g) in the first proviso to Section 11.01 that affects such Participant.  Subject to subsection (e) of this Section 11.06, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 11.06(b), provided such Participant agrees to be subject to Section 3.01 as though it were a Lender.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.11 as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal and interest amount of each Participant’s interest in the Loans held by it (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any Participant or any information relating to a Participant’s interest in any Commitments, Loans or other obligations under any Loan Document) except to the extent that such disclosure is necessary to establish that any such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive, absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

 

(e)           Limitations upon Participant Rights.  A Participant shall not be entitled to receive any greater payment under Section 3.01 or 3.04 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant except to the extent that such entitlement to any greater payment results from any Change in Law after the Participant becomes a Participant or the sale of the participation to such Participant is made with the Borrower’s prior written consent.

 

(f)            Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or any central bank having jurisdiction over such Lender; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

(g)           Electronic Execution of Assignments.  The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

 

(h)           Any Lender may, at any time, assign all or a portion of its rights and obligations under this Agreement to a Person who is or will become, after such assignment, an Sponsor Affiliated Lender subject to the following limitations:

 

110

 

(i)            Sponsor Affiliated Lenders will not receive information provided solely to Lenders by the Administrative Agent or any Lender and will not be permitted to attend or participate in meetings attended solely by the Lenders and the Administrative Agent, other than the right to receive notices of prepayments and other administrative notices in respect of its Loans or Commitments required to be delivered to Lenders pursuant to Article II;

 

(ii)           each Sponsor Affiliated Lender that (A) purchases any Loans pursuant to this clause (h) shall represent and warrant to the seller and (B) sells any Loan hereunder shall represent and warrant to the buyer, in each case, that it does not possess non-public information with respect to Holdings, the Borrower and their respective Subsidiaries that has not been disclosed to the Lenders generally (other than Public Lenders) and that would reasonably be expected to be material to a Lender’s decision to purchase or sell, as applicable; and

 

(iii)          the aggregate principal amount of Loans held at any one time by Sponsor Affiliated Lenders (measured immediately after giving effect to any such acquisition of Loans) may not exceed 20% of the principal amount of all Loans at such time outstanding.

 

(i)            Notwithstanding anything in Section 11.01 or the definition of “Required Lenders” to the contrary, for purposes of determining whether the Required Lenders have (i) consented (or not consented) to any amendment, modification, waiver, consent or other action with respect to any of the terms of any Loan Document or any departure by any Loan Party therefrom, or subject to Section 11.06(j), any plan of reorganization pursuant to the U.S. Bankruptcy Code, (ii) otherwise acted on any matter related to any Loan Document, or (iii) directed or required the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) with respect to or under any Loan Document, no Sponsor Affiliated Lender shall have any right to consent (or not consent), otherwise act or direct or require the Administrative Agent or any Lender to take (or refrain from taking) any such action and:

 

(A)          all Loans held by any Sponsor Affiliated Lenders shall be deemed to be not outstanding for all purposes of calculating whether the Required Lenders have taken any actions; and

 

(B)          all Loans held by Sponsor Affiliated Lenders shall be deemed to be not outstanding for all purposes of calculating whether all Lenders have taken any action unless the action in question affects such Sponsor Affiliated Lender in a disproportionately adverse manner than its effect on other Lenders.

 

(j)            Notwithstanding anything in this Agreement or the other Loan Documents to the contrary, each Sponsor Affiliated Lender hereby agrees that, if a proceeding under any Debtor Relief Law shall be commenced by or against the Borrower or any other Loan Party at a time when such Lender is an Sponsor Affiliated Lender, such Sponsor Affiliated Lender irrevocably authorizes and empowers the Administrative Agent to vote on behalf of such Sponsor Affiliated Lender with respect to the Loans held by such Sponsor Affiliated Lender in any manner in the Administrative Agent’s sole discretion, unless the Administrative Agent instructs such Sponsor Affiliated Lender to vote, in which case such Sponsor Affiliated Lender shall vote with respect to the Loans held by it as the Administrative Agent directs; provided that such Sponsor Affiliated Lender shall be entitled to vote in accordance with its sole discretion (and not in accordance with the direction of the Administrative Agent) in connection with any plan of reorganization to the extent any such plan of reorganization proposes to treat any Obligations held by such Sponsor Affiliated Lender in a manner that is less favorable in any material respect to such Sponsor Affiliated Lender than the proposed treatment of similar Obligations held by Lenders that are not Affiliates of the Borrower.

 

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(k)           Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 11.06 , whether or not such assignment or transfer is reflected in the Register, shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section.

 

11.07      Treatment of Certain Information; Confidentiality.  Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors and representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section 11.07, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, or (iii) any funding or financing source of any Lender, (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section 11.07 or (ii) becomes available to the Administrative Agent, any Lender, or any of their respective Affiliates on a non-confidential basis from a source other than the Borrower.

 

For purposes of this Section 11.07, “Information” means all information received from any Loan Party or any Subsidiary thereof relating to any Loan Party or any Subsidiary thereof or their respective businesses, operations, assets and related matters, other than any such information that is available to the Administrative Agent, any Lender on a non-confidential basis prior to disclosure by any Loan Party or any Subsidiary thereof, provided that, in the case of information received from a Loan Party or any such Subsidiary after the date hereof, such information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information as provided in this Section 11.07 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

 

Each of the Administrative Agent and the Lenders acknowledges that (a) the Information may include material non-public information concerning Holdings or a Subsidiary, as the case may be, (b) it has developed compliance procedures regarding the use of material non-public information and (c) it will handle such material non-public information in accordance with applicable Law, including Federal and state securities Laws.

 

11.08      Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Credit Party and each of its respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to setoff and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Credit Party or any such Affiliate to or for the credit or the account of the Borrower or any other Loan Party against any and all of the obligations of the Borrower or such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such Credit Party, irrespective of whether or not such Credit Party shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower or such Loan Party may be

 

112

 

contingent or unmatured or are owed to a branch or office of such Credit Party different from the branch or office holding such deposit or obligated on such indebtedness.  The rights of each Credit Party and their respective Affiliates under this Section 11.08 are in addition to other rights and remedies (including other rights of setoff) that such Credit Party or their respective Affiliates may have.  Each Credit Party agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application.

 

11.09      Interest Rate Limitation.  Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower.  In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

 

11.10      Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement.

 

11.11      Survival of Representations and Warranties.  All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Loan, and shall continue in full force and effect as long as any Loan or other Obligation (other than any indemnity obligation for unasserted claims that by its terms survives the termination of this Agreement) shall remain unpaid or unsatisfied.

 

11.12      Severability.  If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

11.13      Replacement of Lenders.  (A) If any Lender requests compensation under Section 3.04, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or (B) if any Lender is a Defaulting

 

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Lender, or (C) if in connection with a proposed amendment, modification, waiver, or consent with respect to any of the provisions hereof as contemplated by Section 11.01, the consent of the Required Lenders shall have been obtained but the consent of one or more of such other Lenders whose consent is required shall not have been obtained, or (D) if any other circumstance exists hereunder that gives the Borrower the right to replace a Lender as a party hereto, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 11.06), all of its interests, rights and obligations under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that:

 

(a)           the Borrower shall have paid to the Administrative Agent the assignment fee specified in Section 11.06(b);

 

(b)           such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 3.05) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and, in the case of any amendment that constitutes, a Repricing Transaction with respect to the Term B-12 Loans prior to the twelve month anniversary of the Amendment No. 45 Effective Date, the fee that would have been payable to such Lender upon the effectiveness of such amendment had such Lender held such Term Loans on the date of effectiveness of such amendment;

 

(c)           in the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments required to be made pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter; and

 

(d)           such assignment does not conflict with applicable Laws.

 

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

 

11.14      Governing Law; Jurisdiction; Etc.

 

(a)           GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

(b)           SUBMISSION TO JURISDICTION.  EACH OF THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH

 

114

 

ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY CREDIT PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

(c)           WAIVER OF VENUE.  EACH OF THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

(d)           SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

11.15      WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

11.16      No Advisory or Fiduciary Responsibility.  In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower and Holdings each acknowledge and agree, and acknowledge their respective Affiliates’ understanding, that:  (i) the arranging and other services regarding this Agreement provided by the Administrative Agent, the Arrangers and the Lenders are arm’s-length commercial transactions between the Borrower, Holdings and their respective Affiliates, on the one hand, and the Administrative Agent, the Arrangers and the Lenders, on the other hand, (ii) each of the Borrower and Holdings and each other Loan Party has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (iii) the Borrower and Holdings and each other Loan Party is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (iv) the Administrative Agent, each Arranger, the Co-Documentation Agents and each Lender is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower, Holdings or any of their respective Affiliates, or any other Person and (v) neither the Administrative Agent nor any Arranger or Lender has any obligation to the

 

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Borrower, Holdings or any of their respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (vi) the Administrative Agent, the Arrangers and the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower, Holdings and their respective Affiliates, and neither the Administrative Agent nor the Arrangers or Lenders have any obligation to disclose any of such interests to the Borrower, Holdings and their respective Affiliates.  To the fullest extent permitted by law, each of the Borrower and Holdings hereby waives and releases any claims that it may have against the Administrative Agent, the Arrangers and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

 

11.17      USA PATRIOT Act Notice.  Each Lender that is subject to the USA PATRIOT Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of each Loan Party and other information that will allow such Lender or the Administrative Agent, as applicable, to identify each Loan Party in accordance with the USA PATRIOT Act.  No part of the proceeds of the Loans will be used by the Loan Parties, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

 

11.18      No Strict Construction.  The parties hereto have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

 

11.19      Attachments.  The exhibits, schedules and annexes attached to this Agreement are incorporated herein and shall be considered a part of this Agreement for the purposes stated herein, except that in the event of any conflict between any of the provisions of such exhibits and the provisions of this Agreement, the provisions of this Agreement shall prevail.

 

11.20      Intercreditor Agreement.  Notwithstanding anything herein to the contrary, the lien and security interest granted to the Collateral Agent pursuant to this Agreement or the other Loan Documents and the exercise of any right or remedy by the Collateral Agent hereunder or under the other Loan Documents are subject to the provisions of the Intercreditor Agreement.  In the event of any conflict between the terms of the Intercreditor Agreement and this Agreement, the terms of the Intercreditor Agreement shall govern and control.

 

11.21      Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)  the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

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(b)  the effects of any Bail-In Action on any such liability, including, if applicable:

 

(i)  a reduction in full or in part or cancellation of any such liability;

 

(ii)  a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

(iii)  the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

117Exhibit
4.1

 

AMENDED AND RESTATED AGENCY AGREEMENT

 

TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.

TOYOTA CREDIT CANADA INC.

TOYOTA FINANCE AUSTRALIA LIMITED (ABN 48 002 435 181)

TOYOTA MOTOR CREDIT CORPORATION

as Issuers

 

and

 

THE BANK OF NEW YORK MELLON,

acting through its London branch,

as Agent

 

in respect of a

 

€50,000,000,000

EURO MEDIUM TERM NOTE PROGRAMME

 

Dated 14 September 2018

 

     

     

    

Contents

 

	Clause	Page

	1.	Definitions And Interpretations	2
	2.	Appointment of agent and Paying Agents	10
	3.	Issue of Temporary Global Notes	12
	4.	Issue of Permanent Global Notes	13
	5.	Issue of Definitive bearer Notes	14
	6.	Exchanges	15
	7.	Terms of Issue	16
	8.	Payments	18
	9.	Determinations and Notifications in Respect of Notes	20
	10.	Notice of Any Withholding or Deduction	22
	11.	Duties of the Agent in Connection with Early Redemption	22
	12.	Publication of Notices	22
	13.	Cancellation, Resale and Reissuance of Notes, Coupons and Talons	23
	14.	Issue of Replacement Notes, Coupons and Talons	24
	15.	Copies of this Agreement and Each Final Terms Available for Inspection	26
	16.	Commissions and Expenses	26
	17.	Indemnity	26
	18.	Repayment by the Agent	27
	19.	Conditions of Appointment	27
	20.	Communication Between the Parties	29
	21.	Changes in Agent and Paying Agents	30
	22.	Merger and Consolidation	32
	23.	Notifications	32
	24.	Change of Specified Office	32
	25.	Notices	33
	26.	Taxes and Stamp Duties	34
	27.	Currency Indemnity	34
	28.	Amendments: Meetings of Holders	34
	29.	Calculation Agency Agreement	37
	30.	Redenomination and Exchange	37
	31.	deed poll	40
	32.	Descriptive Headings	41

     

     

    

	33.	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999	41
	34.	Governing Law	42
	35.	Counterparts	42
	Appendix A TERMS AND CONDITIONS OF THE NOTES	46
	Appendix B FORMS OF GLOBAL AND DEFINITIVE NOTES, COUPONS AND TALONS	93
	APPENDIX B-1  FORM OF TEMPORARY GLOBAL NOTE	94
	SCHEDULE ONE  INTEREST PAYMENTS	101
	SCHEDULE TWO  SCHEDULE OF EXCHANGES FOR NOTES REPRESENTED BY A PERMANENT GLOBAL NOTE OR DEFINITIVE BEARER NOTES OR REDEMPTIONS OR PURCHASES AND CANCELLATIONS	102
	APPENDIX B-2  FORM OF PERMANENT GLOBAL NOTE	103
	SCHEDULE ONE  INTEREST PAYMENTS	110
	SCHEDULE TWO  SCHEDULE OF EXCHANGES OF A TEMPORARY GLOBAL NOTE AND FOR DEFINITIVE BEARER NOTES OR REDEMPTIONS OR PURCHASES AND CANCELLATIONS	111
	APPENDIX B-3  FORM OF DEFINITIVE BEARER NOTE	112
	APPENDIX B-4  FORM OF COUPON	115
	APPENDIX B-5  FORM OF TALON	117
	Appendix C FORM OF CALCULATION AGENCY AGREEMENT	119
	Appendix D FORM OF OPERATING and ADMINISTRATIVE PROCEDURES MEMORANDUM	129
	ANNEX A TO APPENDIX D  SETTLEMENT PROCEDURES	132
	ANNEX B TO APPENDIX D	137
	FORM OF FINAL TERMS	137
	ANNEX C TO APPENDIX D  FORM OF PURCHASER’S CONFIRMATION TO THE ISSUER	167
	ANNEX D TO APPENDIX D  FORM OF THE ISSUER’S CONFIRMATION TO AGENT AND PURCHASER	172
	ANNEX E TO APPENDIX D  TRADING DESK INFORMATION	174
	Appendix E FORM OF THE NOTES	177
	Appendix F ADDITIONAL DUTIES OF THE AGENT	183
	Appendix G FORM OF DEED POLL (sUBSTITUTION OF ISSUER)	184

     

     

    

AMENDED AND RESTATED AGENCY AGREEMENT

 

in respect of a

 

€50,000,000,000

EURO MEDIUM TERM NOTE PROGRAMME

 

THIS AMENDED AND RESTATED AGENCY AGREEMENT
is made on 14 September 2018

 

BETWEEN:

 

		(1)	TOYOTA MOTOR FINANCE (NETHERLANDS) B.V. of World Trade Center Amsterdam, Tower H, Level
10, Zuidplein 90, 1077 XV Amsterdam, the Netherlands (TMF);

 

		(2)	TOYOTA CREDIT CANADA INC. of 80 Micro Court, Suite 200, Markham, Ontario L3R 9Z5, Canada
(TCCI);

 

		(3)	TOYOTA FINANCE AUSTRALIA LIMITED (ABN 48 002 435 181) of Level 9, 207 Pacific Highway, St
Leonards, NSW 2065, Australia (TFA);

 

		(4)	TOYOTA MOTOR CREDIT CORPORATION of 6565 Headquarters Drive, Mailstop W2–3D, Plano,
Texas 75024–5965, United States (TMCC); and

 

		(5)	THE BANK OF NEW YORK MELLON, acting through its London
branch, One Canada Square, Canary Wharf, London E14 5AL, United Kingdom (the Agent, which expression shall include
any successor agent appointed in accordance with Clause 21, and the Paying Agent, which expression shall include any additional
or successor paying agent appointed in accordance with Clause 21, and Paying Agent shall mean any of the Agent or the Paying
Agents so appointed).

 

WHEREAS:

 

(A)       The
Issuers (as defined below) have determined that a programme agreement dated 30 September 1992 as amended and supplemented or restated
by the First Supplemental Programme Agreement dated 31 January 1994, the Second Supplemental Programme Agreement dated 16 May 1996,
the Third Supplemental Programme Agreement dated 29 May 1998, the Fourth Supplemental Programme Agreement dated 7 July 1999, the
Amended and Restated Programme Agreement dated 31 August 2000, the Amended and Restated Programme Agreement dated 31 August 2001,
the Amended and Restated Programme Agreement dated 27 September 2002, the Amended and Restated Programme Agreement dated 26 September
2003, the Amended and Restated Programme Agreement dated 24 September 2004, the Amended and Restated Programme Agreement dated
30 September 2005, the Amended and Restated Programme Agreement dated 28 September 2006, the Amended and Restated Programme Agreement
dated 28 September 2007, the Amended and Restated Programme Agreement dated 26 September 2008, the Amended and Restated Programme
Agreement dated 18 September 2009, the Amended and Restated Programme Agreement dated 17 September 2010, the Amended and Restated
Programme Agreement dated 16 September 2011, the Amended and Restated Programme Agreement dated 14 September 2012, the Amended
and Restated Programme Agreement dated 13 September 2013, the Amended and Restated Programme Agreement dated 12 September 2014,
the Amended and Restated Programme Agreement dated 11 September 2015, the Amended and

 

     

     

    

Restated Programme Agreement dated 9 September
2016 and the Amended and Restated Programme Agreement dated 8 September 2017 entered into with the Dealers named therein pursuant
to which any of the Issuers may issue Euro Medium Term Notes in an aggregate nominal amount of up to €50,000,000,000, be amended
and restated by the Issuers and each of Merrill Lynch International, Australia and New Zealand Banking Group Limited, Bank of Montreal,
London Branch, Barclays Bank PLC, BNP Paribas, CIBC World Markets plc, Citigroup Global Markets Limited, Crédit Agricole
Corporate and Investment Bank, Daiwa Capital Markets Europe Limited, HSBC Bank plc, ING Bank N.V., J.P. Morgan Securities plc,
Lloyds Bank Corporate Markets plc, Mizuho International plc, Morgan Stanley & Co. International plc, MUFG Securities EMEA plc,
National Australia Bank Limited, Nomura International plc, RBC Europe Limited, SMBC Nikko Capital Markets Limited, The Toronto-Dominion
Bank and UniCredit Bank AG (together, the Programme Dealers).

 

(B)       The
Issuers have entered into an amended and restated programme agreement dated 14 September 2018 with the Programme Dealers.

 

(C)       The
Issuers and the agents named therein entered into an amended and restated agency agreement dated 8 September 2017 (the Agency
Agreement). The parties hereto agree to make certain modifications to the Agency Agreement. This Agreement amends and restates
the Agency Agreement. Any Notes issued under the Programme on or after the date of this Agreement shall be issued with the benefit
of the Agency Agreement as so amended and restated.

 

		1.	DEFINITIONS AND INTERPRETATIONS

 

		(1)	The following expressions shall have the following meanings:

 

Agreement Date means,
with respect to any Note, the date on which agreement is reached for the issue of such Note as contemplated in Clause 2 of the
Programme Agreement, which in the case of Notes issued on a syndicated basis shall be the date the applicable Syndicate Purchase
Agreement is signed by all parties;

 

Arranger means Merrill
Lynch International, or any other company appointed to the position of arranger for the Programme; and references in this Agreement
to the Arranger shall be references to all of them;

 

Bearer Note means those
of the Notes in bearer form;

 

CGN means a Temporary
Global Note being in the form or substantially in the form set out in Appendix B-1 hereto or a Permanent Global Note being in the
form or substantially in the form set out in Appendix B-2 hereto and in either case in respect of which the applicable Final Terms
indicate it is not a New Global Note;

 

Clearing System means
Clearstream, Luxembourg and/or Euroclear and/or any other additional system or systems as is specified in the applicable Final
Terms;

 

Clearstream, Luxembourg
means Clearstream Banking S.A.;

 

Code means the US Internal
Revenue Code of 1986;

 

Conditions means, in respect
of any Series of Notes, the terms and conditions of the Notes of such Series, such terms and conditions being in the form or substantially
in the form set out in Appendix A hereto or in such other form, having regard to the terms of the relevant Series, as may be agreed
between the relevant Issuer, the Agent

 

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and the relevant Purchaser or
Purchasers from time to time, as amended or supplemented by the applicable Final Terms;

 

Coupon has the meaning
ascribed thereto in the Conditions;

 

Dealer means each of the
Programme Dealers and any other entities appointed as dealers from time to time pursuant to the Programme Agreement;

 

Definitive Bearer Note
means a Bearer Note in definitive form being in the form or substantially in the form set out in Appendix B-3 hereto (or in such
other form as may be agreed between the relevant Issuer, the Agent and the relevant Purchaser or Purchasers) issued or to be issued
by the relevant Issuer pursuant to this Agreement in exchange for the whole or (subject to the terms of the relevant Temporary
Global Note and/or Permanent Global Note) part of a Temporary Global and/or Permanent Global Note;

 

Definitive Note means
a Definitive Bearer Note and/or a Definitive Registered Note, as the context may require;

 

Definitive Registered Note
means a Registered Note in definitive form issued or, as the case may require, to be issued by TCCI pursuant to the TCCI Note Agency
Agreement or TMCC pursuant to the TMCC Note Agency Agreement in exchange for a Registered Global Note, such Note, if issued by
TCCI, being in the form or substantially in the form set out in Schedule 2 to the TCCI Note Agency Agreement (or in such other
form as may be agreed between TCCI, the TCCI Registrar, the TCCI Transfer Agent and the relevant Purchaser(s)) or if issued by
TMCC, being in the form or substantially in the form set out in Schedule 2 to the TMCC Note Agency Agreement (or in such other
form as may be agreed between TMCC, the TMCC Registrar, the TMCC Transfer Agent and the relevant Purchaser(s));

 

Established Rate means
the rate for the conversion of the Specified Currency (including compliance with rules relating to roundings in accordance with
applicable European Union regulations) into euro established by the Council of the European Union pursuant to Article 140 of the
Treaty;

 

EUR, Euro, euro
and € mean the currency introduced at the start of the third stage of European economic and monetary union, and as
defined in Article 2 of Council Regulation (EC) No. 974/98 of 3 May 1998 on the introduction of the euro, as amended;

 

Euroclear means Euroclear
Bank SA/NV;

 

European Economic Area
means the European Economic Area consisting of the Member States of the European Union and Iceland, Norway and Liechtenstein;

 

Eurosystem-eligible Note
means a Note which is intended to be held in a manner which would allow Eurosystem eligibility, as stated in the applicable Final
Terms;

 

FATCA Withholding Tax
means any withholding or deduction required pursuant to an agreement described in Section 1471(b) of the Code or any withholding
or deduction otherwise imposed pursuant to Sections 1471 through 1474 of the Code (or any regulations, agreements or undertakings
thereunder or official interpretations thereof) or any intergovernmental agreement between the United States and another

 

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jurisdiction facilitating the
implementation thereof (or any law implementing such an intergovernmental agreement);

 

Final Terms means the
final terms issued in relation to each Tranche of Notes (substantially in the form of either Part A or Part B of Annex B to the
Procedures Memorandum) as a supplement to the Prospectus and giving details of that Tranche and, in relation to any particular
Tranche of Notes, applicable Final Terms means the Final Terms applicable to that Tranche;

 

FSMA means the Financial
Services and Markets Act 2000, as amended;

 

Global Bearer Note means
a Temporary Global Note or a Permanent Global Note (or such other form of global note in bearer form as may be agreed between the
relevant Issuer, the Agent and the relevant Purchaser(s) as indicated in the applicable Final Terms) representing a certain number
of underlying Notes (the Underlying Notes);

 

Global Note means a Global
Bearer Note or a Registered Global Note (or such other form of global note as may be agreed between the relevant Issuer, the Agent
(in the case of Bearer Notes), the TCCI Registrar (in the case of Registered Notes issued by TCCI), the TMCC Registrar (in the
case of Registered Notes issued by TMCC) and the relevant Purchaser(s) as indicated in the applicable Final Terms) representing
a certain number of Underlying Notes;

 

ISDA Definitions means
the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc., as amended, supplemented or updated
from time to time;

 

Issue Date means, in respect
of any Note, the date of issue and purchase of such Note pursuant to Clause 2 of the Programme Agreement, being in the case of
any Note in the form of a Permanent Global Note or a Definitive Note, the same date as the date of issue of the Temporary Global
Note which initially represented such Note;

 

Issuer means each of TMF,
TCCI, TFA and TMCC in its capacity as issuer of Notes; and references in this Agreement to the relevant Issuer shall, in
relation to any issue of Notes, be references to whichever of TMF, TCCI, TFA or TMCC is the issuer of such Notes; and references
to the Issuers shall be to all of TMF, TCCI, TFA and TMCC;

 

Listing Agent means, in
relation to any Notes which are, or are to be, listed on a Stock Exchange other than the London Stock Exchange, such listing agent
as the relevant Issuer may from time to time appoint for purposes of liaising with such Stock Exchange or other relevant authority;

 

Listing Rules means:

 

		(a)	in the case of Notes which are, or are to be, admitted to the Official List, the listing rules
made under Section 73A of the FSMA; and

 

		(b)	in the case of Notes which are, or are to be, listed on a Stock Exchange other than the London
Stock Exchange, the listing rules and regulations for the time being in force for such Stock Exchange;

 

    Page 4

     

    

London Stock Exchange
means London Stock Exchange plc or such other body to which its functions have been transferred;

 

Member State means a member
state of the European Union;

 

New Global Note means
a Temporary Global Note being in the form or substantially in the form set out in Appendix B-1 hereto or a Permanent Global Note
being in the form or substantially in the form set out in Appendix B-2 hereto and in either case in respect of which the applicable
Final Terms indicate it is a New Global Note;

 

Note means a note issued
or to be issued by the relevant Issuer pursuant to the Programme Agreement, other than a Note which will form a single Series with
any Notes issued by any Issuer prior to the date of this Agreement, which Note may be represented by a Global Note or a Definitive
Note;

 

Noteholders means the
several persons who are for the time being holders of outstanding Notes (being in the case of Bearer Notes, the bearers thereof
and, in the case of Registered Notes, the several persons whose names are entered in the register of holders of such Notes as the
holders thereof) save that, in respect of Notes of any Series, for so long as such Notes or any part thereof are represented by
a Global Note, each person who is for the time being shown in the records of Euroclear, Clearstream, Luxembourg or such other applicable
clearing agency as the holder of a particular nominal amount of such Notes (other than a clearing agency (including Clearstream,
Luxembourg and Euroclear) that is itself an account holder of Clearstream, Luxembourg, Euroclear or any other applicable clearing
agency for a Series of Notes) (in which regard any certificate or other document issued by Euroclear, Clearstream, Luxembourg or
such other applicable clearing agency as to the nominal amount of such Notes standing to the account of any person shall be conclusive
and binding for all purposes save in the case of manifest error) shall be treated by the relevant Issuer, the Agent and any other
Paying Agent or (in the case of Registered Notes issued by TCCI) by the TCCI Registrar and the TCCI Transfer Agent or (in the case
of Registered Notes issued by TMCC) by the TMCC Registrar and the TMCC Transfer Agent as a holder of such nominal amount of such
Notes for all purposes other than for the payment of principal (including premium (if any)) or interest on such Notes, the right
to which shall be vested, as against the relevant Issuer, the Agent and any other Paying Agent or (in the case of Registered Notes
issued by TCCI) the TCCI Registrar and the TCCI Transfer Agent or (in the case of Registered Notes issued by TMCC) the TMCC Registrar
and the TMCC Transfer Agent, in the case of Bearer Notes, solely in the bearer of the Global Note and, in the case of Registered
Notes, solely in the person whose name is entered in the register of holders of such Notes as the holder of the Global Note in
accordance with and subject to its terms (and the expressions Noteholder, holder of Notes and related expressions
shall be construed accordingly);

 

Official List has the
meaning ascribed thereto in Section 103 of the FSMA;

 

outstanding means, in
relation to the Notes of all or any Series, all the Notes (or all the Notes of that or those Series) issued other than (a) those
which have been redeemed in full in accordance with this Agreement or the TCCI Note Agency Agreement or the TMCC Note Agency Agreement
or the Conditions, (b) those in respect of which the date for redemption in accordance with the Conditions has occurred and the
redemption moneys therefor (including all interest (if any) accrued thereon to the date for such redemption and any interest (if
any) payable under the Conditions after such date) have been duly paid to the Agent as provided herein or (in

 

    Page 5

     

    

the case of Registered Notes
issued by TCCI) to the TCCI Registrar or the TCCI Transfer Agent or (in the case of Registered Notes issued by TMCC) to the TMCC
Registrar or the TMCC Transfer Agent (and, where appropriate, notice has been given to the Noteholders in accordance with Condition
16) and remain available for payment against presentation of Notes, (c) those Notes which have become void under Condition 8, (d)
those Notes which have been purchased or otherwise acquired and cancelled as provided in Condition 6 and those which have been
purchased or otherwise acquired and are being held by the relevant Issuer for subsequent resale or reissuance as provided in Condition
6 during the time so held, (e) those mutilated or defaced Notes which have been surrendered in exchange for replacement Notes pursuant
to Condition 10, (f) (for the purposes only of determining how many Notes are outstanding and without prejudice to their status
for any other purpose) those Notes alleged to have been lost, stolen or destroyed and in respect of which replacement Notes have
been issued pursuant to Condition 10 and (g) Temporary Global Notes to the extent that they shall have been duly exchanged in whole
for Permanent Global Notes or Definitive Notes and Permanent Global Notes or Registered Global Notes to the extent that they shall
have been duly exchanged in whole for Definitive Notes, in each case pursuant to their respective provisions;

 

Permanent Global Note
means a permanent global Bearer Note in the form or substantially in the form set out in Appendix B-2 hereto (or in such other
form as may be agreed between the relevant Issuer, the Agent and the relevant Purchaser(s)) comprising some or all of the Notes
of the same Series, issued or to be issued by the relevant Issuer either in exchange for the whole or part of a Temporary Global
Note issued in respect of the Notes of the same Tranche or initially representing the Notes;

 

Procedures Memorandum
means the non-binding Operating and Administrative Procedures Memorandum set out in Appendix D hereto as amended or varied from
time to time, in respect of any Tranche, by agreement between the relevant Issuer and the Purchaser of such Tranche with the approval
in writing of the Agent;

 

Programme means the Euro
Medium Term Note Programme provided for by the Programme Agreement;

 

Programme Agreement means
the Amended and Restated Programme Agreement dated 14 September 2018 between the Issuers and the Programme Dealers concerning the
purchase of Notes to be issued by any Issuer;

 

Prospectus means the Prospectus
relating to the Programme as revised, supplemented, amended or updated from time to time in accordance with Clause 5.2 of the Programme
Agreement, including any documents which are from time to time incorporated therein by reference but excluding all information
incorporated by reference in any such documents and excluding any information or statement otherwise included in any such documents
which is or might be considered to be forward looking and excluding any excluded information as may be defined in the Prospectus,
including, in relation to each Tranche of Notes, the applicable Final Terms relating to such Tranche;

 

Prospectus Directive means
Directive 2003/71/EC (as amended, including by Directive 2010/73/EU) and includes any relevant implementing measure in the relevant
Member State of the European Economic Area;

 

Prospectus Rules means
rules relating to prospectuses made under European Commission Regulation (EC) No 809/2004 implementing the Prospectus Directive;

 

    Page 6

     

    

Purchaser means any Dealer
or any third party other than a dealer (as defined in Section 2(12) of the Securities Act), who agrees to purchase Notes pursuant
to the Programme Agreement and references to a relevant Purchaser shall, in relation to any Note, be references to the Purchaser
with whom the relevant Issuer has agreed the issue and purchase of such Note;

 

Redenomination Date means
in the case of interest bearing Notes, any date for payment of interest under the Notes or in the case of Zero Coupon Notes, any
date, in each case specified by the relevant Issuer in the notice given to Noteholders pursuant to Clause 30 and which falls on
or after the start of the third stage of European economic and monetary union pursuant to the Treaty, or if the country of the
Specified Currency is not one of the countries then participating in such third stage, which falls on or after such later date
as it does so participate and which falls before the date on which the Specified Currency ceases to be a sub-division of the euro;

 

Registered Global Note
means a Global Note, if issued by TCCI, being in the form or substantially in the form set out in Schedule 1 to the TCCI Note Agency
Agreement (or in such other form as may be agreed between TCCI, the TCCI Registrar, the TCCI Transfer Agent and the relevant Purchaser(s)),
or if issued by TMCC, being in the form or substantially in the form set out in Schedule 1 to the TMCC Note Agency Agreement (or
such other form as may be agreed between TMCC, the TMCC Registrar, the TMCC Transfer Agent and the relevant Purchaser(s));

 

Registered Note means
a Note in registered form issued or to be issued by TCCI or TMCC;

 

Relevant Account Holder
means any account holder with the Relevant Clearing System which has Underlying Notes (as defined in the definition of “Global
Bearer Note”) credited to its securities account from time to time;

 

Relevant Clearing System
means one or more Clearing Systems;

 

Relevant Time means the
time at which a Global Note becomes void in the circumstances which are specified in that Global Note;

 

Securities Act means the
Securities Act of 1933 of the United States, as amended;

 

Series means each original
issue of Notes together with any further issues expressed to form a single series with the original issue and the terms of which
(save for the Issue Date, the amount and date of the first payment of interest thereon and/or the Issue Price (as indicated in
the applicable Final Terms)) are identical (including Maturity Date, Interest Basis, Redemption/Payment Basis and Interest Payment
Dates (if any) (as indicated in the applicable Final Terms) and whether or not the Notes are admitted to trading); and the expressions
Notes of the relevant Series and related expressions shall be construed accordingly;

 

Specified Currency means
the currency (which expression shall include euro and other currency units) in which Notes are denominated;

 

Stock Exchange means the
London Stock Exchange or any other or further stock exchange(s) on which any Notes may from time to time be listed or admitted
to trading, as the case may be; and references in this Agreement to the relevant Stock Exchange shall, in relation to any
Notes, be references to the Stock Exchange on

 

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which such Notes are from time
to time, or are intended to be, listed or admitted to trading;

 

Talon has the meaning
ascribed thereto in the Conditions;

 

TARGET2 system means the
Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET2) system or any successor thereto;

 

Temporary Global Note
means a temporary global Bearer Note being in the form or substantially in the form set out in Appendix B-1 hereto (or in such
other form as may be agreed between the relevant Issuer, the Agent and the relevant Purchaser(s)) comprising some or all of the
Notes of the same Series issued or to be issued by the relevant Issuer pursuant to the Programme Agreement or any other agreement
between the relevant Issuer and the relevant Purchaser(s);

 

TCCI Note Agency Agreement
means the Amended and Restated Note Agency Agreement of 8 September 2017 herewith between TCCI, BNY Trust Company of Canada, The
Bank of New York Mellon SA/NV, Luxembourg Branch and the Agent relating to Registered Notes issued by TCCI;

 

TCCI Registrar means,
in relation to any Series of Registered Notes issued by TCCI, BNY Trust Company of Canada as registrar, paying agent and transfer
agent and in respect of any Series of Registered Notes settled or clearing in Euroclear and/or Clearstream, Luxembourg, The Bank
of New York Mellon SA/NV, Luxembourg Branch as registrar and transfer agent under the TCCI Note Agency Agreement and any successor
registrar, paying agent and transfer agent appointed by TCCI in accordance with such TCCI Note Agency Agreement;

 

TCCI Transfer Agent means
in relation to any Series of Registered Notes issued by TCCI, the Agent as transfer agent and paying agent under the TCCI Note
Agency Agreement and any successor transfer agent and paying agent appointed by TCCI in accordance with the TCCI Note Agency Agreement;

 

TMCC Note Agency Agreement
means the Amended and Restated Note Agency Agreement of 8 September 2017 herewith between TMCC, The Bank of New York Mellon SA/NV,
Luxembourg Branch and the Agent relating to Registered Notes issued by TMCC;

 

TMCC Registrar means,
in relation to any Series of Registered Notes issued by TMCC, The Bank of New York Mellon SA/NV, Luxembourg Branch as registrar
and transfer agent under the TMCC Note Agency Agreement and any successor registrar and transfer agent appointed by TMCC in accordance
with such TMCC Note Agency Agreement;

 

TMCC Transfer Agent means
in relation to any Series of Registered Notes issued by TMCC, the Agent as transfer agent and paying agent under the TMCC Note
Agency Agreement and any successor transfer agent and paying agent appointed by TMCC in accordance with the TMCC Note Agency Agreement;

 

Tranche means all Notes
of the same Series with the same Issue Date;

 

Treaty means the Treaty
on the Functioning of the European Union, as amended;

 

    Page 8

     

    

UK Listing Authority means
the name by which the Financial Conduct Authority is known being the body appointed under FSMA as “competent authority”
to decide on the admission of securities to the Official List; and

 

U.S.$ and U.S. dollar
mean the lawful currency for the time being of the United States.

 

		(2)	Terms and expressions (including the definitions of currencies or composite currencies) defined
in the Conditions or Appendices hereto or used in the applicable Final Terms shall have the same meanings in this Agreement, except
where the context requires otherwise.

 

		(3)	All references in this Agreement to the provisions of any statute shall be deemed to be references
to that statute as from time to time modified, extended, amended or re-enacted.

 

		(4)	Any references to Notes shall, unless the context otherwise requires, include any Temporary Global
Notes, Permanent Global Notes, Registered Global Notes and Definitive Notes.

 

		(5)	All references in this Agreement to an agreement, instrument or other document (including this
Agreement, the Programme Agreement, the TCCI Note Agency Agreement, the TMCC Note Agency Agreement, any Series of Notes and any
Conditions appertaining thereto) shall be construed as a reference to that agreement, instrument or document as may be amended,
modified, varied, supplemented or novated from time to time.

 

		(6)	Words denoting the singular number only shall include the plural number also and vice versa;
words denoting the masculine gender only shall include the feminine gender also; and words denoting persons only shall include
firms and corporations and vice versa.

 

		(7)	Any references herein to Euroclear and/or Clearstream, Luxembourg shall, whenever the context so
permits, except in relation to New Global Notes or Registered Notes intended to be held in a manner which would allow Eurosystem
eligibility (being the new safekeeping structure (NSS)), be deemed to include a reference to any additional or alternative clearance
system approved by the relevant Issuer, the relevant Purchaser(s) and either (in the case of Bearer Notes) the Agent or (in the
case of Registered Notes issued by TCCI) the TCCI Registrar and the TCCI Transfer Agent or (in the case of Registered Noted issued
by TMCC) the TMCC Registrar and the TMCC Transfer Agent and, in the case of Notes admitted to the Official List and admitted to
trading on the London Stock Exchange’s Regulated Market, the UK Listing Authority.

 

		(8)	All references in this Agreement to a Directive include any relevant implementing measure of each
Member State which has implemented such Directive.

 

		(9)	As used herein, in relation to any Notes which are to have a “listing” or be “listed”
(i) on the London Stock Exchange, listing or listed shall be construed to mean that such Notes have been admitted
to the Official List in accordance with the listing rules of the UK Listing Authority and admitted to trading on the London Stock
Exchange’s Regulated Market and (ii) on any

 

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other Stock Exchange in a jurisdiction
within the European Economic Area, listing and listed shall be construed to mean that the Notes have been admitted
to trading on a market within that jurisdiction which is a regulated market for the purposes of the Markets in Financial Instruments
Directive (Directive 2014/65/EU).

 

		(10)	Unless the contrary indication appears, a reference to the records of Euroclear and Clearstream,
Luxembourg shall be to the records that each of Euroclear and Clearstream, Luxembourg holds for its customers which reflect the
amount of such customer’s interests in the Notes.

 

		(11)	In this Agreement, unless the contrary intention appears, a reference to a document is a reference
to that document as amended from time to time.

 

		(12)	For the purposes of this Agreement, the Notes of each Series shall form a separate series of Notes
and accordingly, the provisions of this Agreement shall apply mutatis mutandis separately and independently to the Notes
of each Series and in such provisions the expressions Notes, Noteholders, Coupons, Couponholders, Talons
and Talonholders shall be construed accordingly.

 

		2.	APPOINTMENT OF AGENT AND PAYING AGENTS

 

		(1)	The Agent is hereby appointed in a several capacity as agent of each of the Issuers, to act as
issuing and principal paying agent, upon the terms and subject to the conditions set out below, for the purposes of, inter alia:

 

		(a)	completing, authenticating and delivering Temporary Global Notes and Permanent Global Notes and
authenticating (if required) and delivering Definitive Bearer Notes;

 

		(b)	giving effectuation instructions in respect of each Global Note which is a Eurosystem-eligible
Note;

 

		(c)	exchanging Temporary Global Notes for Permanent Global Notes or Definitive Bearer Notes, as the
case may be, in accordance with the terms of the Temporary Global Notes and, in respect of any such exchange (i) making all notations
on Global Notes which are CGNs as required by their terms and (ii) instructing Euroclear and Clearstream, Luxembourg to make appropriate
entries in their records in respect of all Global Notes which are New Global Notes;

 

		(d)	exchanging Permanent Global Notes for Definitive Bearer Notes in accordance with the terms of the
Permanent Global Notes and, in respect of any such exchange (i) making all notations on Permanent Global Notes which are CGNs as
required by their terms and (ii) instructing Euroclear and Clearstream, Luxembourg to make appropriate entries in their records
in respect of all Permanent Global Notes which are New Global Notes;

 

		(e)	paying sums due on Temporary Global Notes, Permanent Global Notes and Definitive Bearer Notes and
Coupons in accordance with the terms of such Notes and (i) making all notations on Global Notes which are CGNs as required by their
terms and (ii) instructing

 

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Euroclear and Clearstream, Luxembourg
to make appropriate entries in their records in respect of all Global Notes which are New Global Notes;

 

		(f)	unless otherwise specified in the applicable Final Terms, determining the interest and/or other
amounts payable in respect of the Notes in accordance with the Conditions;

 

		(g)	arranging on behalf of the relevant Issuer for notices to be communicated to the Noteholders and
the relevant Stock Exchanges;

 

		(h)	ensuring that all necessary action is taken to comply with the periodic reporting and notification
requirements of the Ministry of Finance of Japan (including any monthly reports or such other reports as may be required) and other
applicable Japanese authorities, or any other competent authority of any relevant currency with respect to the Notes to be issued
under the Programme;

 

		(i)	receiving notice from Euroclear, Clearstream, Luxembourg and/or such other applicable clearing
agency relating to the certificates of non-U.S. beneficial ownership of Bearer Notes;

 

		(j)	upon certification by the participating Dealer or Dealers to the Agent that the distribution with
respect to a particular Tranche of Bearer Notes has been completed, determining and certifying to Euroclear, Clearstream, Luxembourg
or such other applicable clearing agency the applicable Exchange Date; and

 

		(k)	performing all other obligations and duties imposed upon it by the Conditions and this Agreement.

 

		(2)	Any of the duties and obligations of the Agent in its capacity of issuing and principal paying
agent set forth in paragraphs (a), (b), (c), (d), (e), (f), (g), (h) and (i) of Subclause 2(1) may, with the consent of the relevant
Issuer, be delegated by the Agent with respect to a particular Series of Notes to a third party, provided such third party’s
performance is subject to the overall supervision and control of the Agent.

 

		(3)	Each Paying Agent is hereby appointed in a several capacity as paying agent of each of the Issuers,
and each Paying Agent agrees to act in a several capacity as paying agent of each of the Issuers, upon the terms and subject to
the conditions set out below, for the purposes of paying sums due on Notes and Coupons and performing all other obligations and
duties imposed upon it by the Conditions and this Agreement.

 

		(4)	In relation to each issue of Eurosystem-eligible Notes, each relevant Issuer hereby authorises
and instructs the Agent to elect Euroclear as common safekeeper. From time to time, each such Issuer and the Agent may agree to
vary this election. Each such Issuer acknowledges that any such election is subject to the right of Euroclear and Clearstream,
Luxembourg to jointly determine that the other shall act as common safekeeper in relation to any such issue and agrees that no
liability shall attach to the Agent in respect of any such election made by it.

 

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		(5)	Where the Agent delivers any authenticated Global Note to a common safekeeper for effectuation
using electronic means, it is authorised and instructed to destroy the Global Note retained by it following its receipt of confirmation
from the common safekeeper that the relevant Global Note has been effectuated.

 

		3.	ISSUE OF TEMPORARY GLOBAL NOTES

 

		(1)	Subject to Subclause 3(2), following receipt of the applicable Final Terms signed by the relevant
Issuer with respect of an issue of Notes in accordance with the provisions of the Procedures Memorandum set out in Appendix D hereto
(as from time to time varied, with the prior approval of the Agent, by the relevant Issuer and the relevant Purchaser or Purchasers
of the Notes of such issue), the Agent will take the steps required of the Agent in the Procedures Memorandum. For this purpose
the Agent is authorised on behalf of the relevant Issuer:

 

		(a)	to prepare a Temporary Global Note or Temporary Global Notes containing the relevant Conditions
and to complete, in accordance with such Final Terms, the necessary details on such Temporary Global Note(s) and attach a copy
of the applicable Final Terms to such Temporary Global Note;

 

		(b)	to authenticate such Temporary Global Note(s);

 

		(c)	if the Temporary Global Note(s) is/are a CGN, to deliver such Temporary Global Note(s) (i) to the
specified common depositary of Euroclear, Clearstream, Luxembourg and/or such other applicable clearing agency as is specified
in the applicable Final Terms against receipt from such common depositary of confirmation that such common depositary is holding
the Temporary Global Note(s) in safe custody for the account of Euroclear, Clearstream, Luxembourg or such other applicable clearing
agency and to instruct Euroclear, Clearstream, Luxembourg and/or such other applicable clearing agency (as the case may be) to
credit the Notes represented by such Temporary Global Notes(s), unless otherwise agreed in writing between the Agent and the relevant
Issuer, to the Agent’s distribution account, or (ii) as otherwise agreed in writing between the relevant Issuer and the Agent;

 

		(d)	if the Temporary Global Note(s) is/are a New Global Note, to deliver such Temporary Global Note(s)
to the specified common safekeeper of Euroclear and Clearstream, Luxembourg against receipt from such common safekeeper of confirmation
that such common safekeeper is holding the Temporary Global Note(s) in safe custody for the account of Euroclear and Clearstream,
Luxembourg and, in the case of a Temporary Global Note which is a Eurosystem-eligible Note, to instruct the common safekeeper to
effectuate the same; and

 

		(e)	if the Temporary Global Note(s) is/are a New Global Note, to instruct Euroclear and Clearstream,
Luxembourg to make the appropriate entries in their records to reflect the initial outstanding aggregate nominal amount of the
relevant Tranche of Notes.

 

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		(2)	The Agent shall only be required to perform its obligations under Subclause 3(1) if it holds a
master Temporary Global Note duly executed by a person or persons authorised to execute the same on behalf of the relevant Issuer,
which may be used by the Agent for the purpose of preparing Temporary Global Note(s) in accordance with Subclause 3(1)(a).

 

		(3)	The Agent shall provide Euroclear, Clearstream, Luxembourg and/or such other applicable clearing
agency with the notifications, instructions or other information to be given by the Agent to Euroclear, Clearstream, Luxembourg
and/or such other applicable clearing agency.

 

		(4)	Any of the duties and obligations of the Agent set forth in this Clause 3 may, with the consent
of the relevant Issuer, be delegated by the Agent with respect to a particular Series of Notes to a third party, provided such
third party’s performance is subject to the overall supervision and control of the Agent.

 

		4.	ISSUE OF PERMANENT GLOBAL NOTES

 

		(1)	Subject to Subclause 4(2), upon the occurrence of any event which pursuant to the terms of a Temporary
Global Note requires the issue of a Permanent Global Note, the Agent shall issue a Permanent Global Note in accordance with the
terms of the Temporary Global Note. For this purpose the Agent is authorised on behalf of the relevant Issuer:

 

		(a)	in the case of the first Tranche of any Series of Notes, to prepare a Permanent Global Note containing
the relevant Conditions and to complete, in accordance with the terms of the Temporary Global Note, the necessary details on such
Permanent Global Note and attach a copy of the applicable Final Terms to such Permanent Global Note;

 

		(b)	in the case of the first Tranche of any Series of Notes, to authenticate such Permanent Global
Note;

 

		(c)	in the case of the first Tranche of any Series of Notes (i) where the Temporary Global Note is
a CGN and is being held by a common depositary as aforesaid, to deliver such Permanent Global Note to the specified common depositary
that is holding the Temporary Global Note for the time being on behalf of Euroclear, Clearstream, Luxembourg and/or such other
applicable clearing agency as is specified in the applicable Final Terms in exchange for such Temporary Global Note or, in the
case of a partial exchange, after noting the details of such exchange in the appropriate spaces on both the Temporary Global Note
and the Permanent Global Note, and in either case against receipt from the common depositary of confirmation that such common depositary
is holding the Permanent Global Note in safe custody for the account of Euroclear, Clearstream, Luxembourg and/or such other applicable
clearing agency (as the case may be); or (ii) where the Temporary Global Note is a CGN and is not being held by a common depositary,
as otherwise agreed in writing between the relevant Issuer and the Agent;

 

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		(d)	in the case of the first Tranche of any Series of Notes where the Temporary Global Note is a New
Global Note, to deliver such Permanent Global Note to the specified common safekeeper that is holding the Temporary Global Note
representing the Tranche for the time being on behalf of Euroclear and/or Clearstream, Luxembourg in exchange for such Temporary
Global Note against receipt from the common safekeeper of confirmation that such common safekeeper is holding the Permanent Global
Note in safe custody for the account of Euroclear and/or Clearstream, Luxembourg, and, in the case of a Permanent Global Note which
is a Eurosystem-eligible Note, to instruct the common safekeeper to effectuate the same and to hold it on behalf of the relevant
Issuer pending its exchange for the Temporary Global Note;

 

		(e)	in the case of a subsequent Tranche of any Series of Notes if the Permanent Global Note is a CGN,
to attach a copy of the applicable Final Terms to the Permanent Global Note applicable to the relevant Series and to enter details
of any exchange in whole or part as stated above; and

 

		(f)	in the case of a subsequent Tranche of any Series of Notes if the Permanent Global Note is a New
Global Note, to deliver the applicable Final Terms to the specified common safekeeper for attachment to the Permanent Global Note
applicable to the relevant Series.

 

		(2)	The Agent shall only be required to perform its obligations under Subclause 4(l) if it holds a
master Permanent Global Note duly executed by a person or persons authorised to execute the same on behalf of the relevant Issuer,
which may be used by the Agent for the purpose of preparing Permanent Global Notes in accordance with Subclause 4(1)(a).

 

		(3)	The Agent shall provide Euroclear, Clearstream, Luxembourg and/or such other applicable clearing
agency with the notifications, instructions or other information to be given by the Agent to Euroclear, Clearstream, Luxembourg
and/or such other applicable clearing agency.

 

		(4)	Any of the duties and obligations of the Agent set forth in this Clause 4 may, with the consent
of the relevant Issuer, be delegated by the Agent with respect to a particular Series of Notes to a third party, provided such
third party’s performance is subject to the overall supervision and control of the Agent.

 

		5.	ISSUE OF DEFINITIVE BEARER NOTES

 

		(1)	The Agent shall deliver the relevant Definitive Bearer Note(s) in accordance with the terms of
the relevant Temporary Global Note or the relevant Permanent Global Note where such Temporary Global Note or Permanent Global Note
(as the case may be) is to be exchanged for one or more Definitive Bearer Note(s). For this purpose, the Agent is hereby authorised
on behalf of the relevant Issuer:

 

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		(a)	to authenticate or arrange for authentication on its behalf (if so instructed by the relevant Issuer)
of such Definitive Bearer Note(s); and

 

		(b)	to deliver such Definitive Bearer Note(s) to or to the order of Euroclear, Clearstream, Luxembourg
and/or such other applicable clearing agency as is specified in the applicable Final Terms either in exchange for such Global Note
or, in the case of a partial exchange, if it is a CGN, on entering details of any partial exchange of the Global Note in the relevant
space in Schedule Two of such Global Note, or, if it is a New Global Note, on Euroclear and Clearstream, Luxembourg making the
appropriate entries in their records to reflect such exchange; provided that the Agent shall only permit a partial exchange of
Notes represented by a Permanent Global Note for Definitive Bearer Notes if the Notes which continue to be represented by such
Permanent Global Note are regarded as fungible by Euroclear, Clearstream, Luxembourg and/or such other applicable clearing agency
with the Definitive Bearer Notes issued in partial exchange therefor.

 

The Agent shall notify the relevant
Issuer forthwith upon receipt of a request for issue of Definitive Bearer Note(s) in accordance with the provisions of a Global
Note (and the aggregate nominal amount of such Temporary Global Note or Permanent Global Note, as the case may be, to be exchanged
in connection therewith).

 

		(2)	The relevant Issuer undertakes to deliver to the Agent, pursuant to a request for the issue of
Definitive Bearer Notes under the terms of the relevant Global Note, sufficient numbers of executed Definitive Bearer Notes to
enable the Agent to comply with its obligations under this Clause 5.

 

		(3)	Any of the duties and obligations of the Agent set forth in this Clause 5 may, with the consent
of the relevant Issuer, be delegated by the Agent with respect to a particular Series of Notes to a third party, provided such
third party’s performance is subject to the overall supervision and control of the Agent.

 

		6.	EXCHANGES

 

Upon any exchange of all or a
portion of an interest in a Temporary Global Note for an interest in a Permanent Global Note or for Definitive Bearer Notes or
upon any exchange of all or a portion of an interest in a Permanent Global Note for Definitive Bearer Notes, the Agent shall (i)
procure that the relevant Global Note shall, if it is a CGN, be endorsed to reflect the reduction of, or increase in (as the case
may be), its nominal amount by the aggregate nominal amount so exchanged and, where applicable, the Permanent Global Note shall
be endorsed by or on behalf of the Agent to reflect the increase in its nominal amount as a result of any exchange for an interest
in the Temporary Global Note or (ii) in the case of any Global Note which is a New Global Note, instruct Euroclear and Clearstream,
Luxembourg to make appropriate entries in their records to reflect such exchange. Until exchanged in full, the holder of an interest
in any Global Note shall in all respects be entitled to the same benefits as the holder of Definitive Bearer Notes and Coupons
authenticated and delivered hereunder, subject as set out in the Conditions and the relevant Global Note. The Agent is hereby authorised
on behalf of the relevant Issuer and instructed (a) in the

 

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case of any Global Note which
is a CGN, to endorse or to arrange for the endorsement of the relevant Global Note to reflect the reduction in the nominal amount
represented thereby by the amount so exchanged and, if appropriate, to endorse the Permanent Global Note to reflect any increase
in the nominal amount represented by it and, in either case, to sign in the relevant space on the relevant Global Note recording
such exchange and reduction or increase; (b) in the case of any Global Note which is a New Global Note, to instruct Euroclear and
Clearstream, Luxembourg to make appropriate entries in their records to reflect such exchange; and (c) in the case of a total exchange,
to cancel or arrange for the cancellation of the relevant Global Note. Any of the duties and obligations of the Agent set forth
in this Clause 6 may, with the consent of the relevant Issuer, be delegated by the Agent with respect to a particular Series of
Notes to a third party, provided such third party’s performance is subject to the overall supervision and control of the
Agent.

 

		7.	TERMS OF ISSUE

 

		(1)	The Agent shall cause all Temporary Global Notes, Permanent Global Notes and Definitive Bearer
Notes delivered to and held by it under this Agreement to be maintained in safe custody and shall ensure that such Notes are issued
only in accordance with the provisions of this Agreement and the relevant Global Note and Conditions.

 

		(2)	Subject to the procedures set out in the Procedures Memorandum, for the purposes of Subclause 7(1)
the Agent is entitled to treat a telephone or facsimile communication from a person purporting to be (and who the Agent, after
making reasonable investigation, believes in good faith to be) the authorised representative of the relevant Issuer named in the
list referred to in, or notified pursuant to, Subclause 19(7) as sufficient instructions and authority of the relevant Issuer for
the Agent to act in accordance with Subclause 7(1).

 

		(3)	In the event that a person who has signed on behalf of any Issuer a master Temporary Global Note,
a master Permanent Global Note or Definitive Bearer Notes not yet issued but held by the Agent in accordance with Subclause 7(1)
ceases to be authorised as described in Subclause 19(7), the Agent shall (unless the relevant Issuer gives notice to the Agent
that Notes signed by that person do not constitute valid and binding obligations of the relevant Issuer or otherwise until replacements
have been provided to the Agent) continue to have authority to issue any such Notes, and the relevant Issuer hereby warrants to
the Agent that such Notes shall, unless notified as aforesaid, be valid and binding obligations of the relevant Issuer. Promptly
upon such person ceasing to be authorised, the relevant Issuer shall provide the Agent with replacement master Temporary Global
Notes, master Permanent Global Notes and (if applicable) Definitive Bearer Notes and the Agent shall cancel and destroy the master
Temporary Global Notes, master Permanent Global Notes and (if applicable) Definitive Bearer Notes held by it which are signed by
such person and shall provide to the relevant Issuer a confirmation of destruction in respect thereof specifying the Notes so cancelled
and destroyed.

 

		(4)	Unless otherwise agreed in writing between the relevant Issuer and the Agent, each Note credited
to the Agent’s distribution account with Euroclear and Clearstream, Luxembourg (or, in the case of Notes in CGN form, such
other applicable clearing agency) following the delivery of a Temporary

 

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Global Note or Permanent Global
Note, as the case may be, to a common depositary or, as the case may be, a common safekeeper pursuant to Subclause 3(1)(c), 3(1)(d),
4(1)(c) or 4(1)(d), respectively, shall be held to the order of the relevant Issuer. The Agent shall procure that the nominal amount
of Notes which the relevant Purchaser has agreed to purchase is:

 

		(a)	debited from the Agent’s distribution account; and

 

		(b)	credited to the securities account of such Purchaser with Euroclear, Clearstream, Luxembourg or,
in the case of Notes in CGN form, such other clearing agency (as specified in the Letter from Lead Manager/Dealer as provided for
in Annex C to the Procedures Memorandum set forth in Appendix D hereto), in each case only upon receipt by the Agent on behalf
of the relevant Issuer of the purchase price due from the relevant Purchaser in respect of such Notes.

 

		(5)	Unless otherwise agreed in writing between the relevant Issuer and the Agent, if on the relevant
Issue Date a Purchaser does not pay the full purchase price due from it in respect of any Note (the Defaulted Note) and,
as a result, the Defaulted Note remains in the Agent’s distribution account with Euroclear and/or Clearstream, Luxembourg
(or, in the case of Notes in CGN form, such other applicable clearing agency) after such Issue Date, the Agent will continue to
hold the Defaulted Note to the order of the relevant Issuer. The Agent shall notify the relevant Issuer forthwith of the failure
of the Purchaser to pay the full purchase price due from it in respect of any Defaulted Note and, subsequently, shall notify the
relevant Issuer forthwith upon receipt from the Purchaser of the full purchase price in respect of such Defaulted Note.

 

		(6)	Unless otherwise agreed in writing between the relevant Issuer and the Agent, if the Agent pays
an amount (the Advance) to the relevant Issuer on the basis that a payment (the Payment) will be received from a
Purchaser and if the Payment is not received by the Agent on the date the Agent pays the relevant Issuer, the Agent shall notify
the relevant Issuer by facsimile that the Payment has not been received and the relevant Issuer shall repay to the Agent the Advance
and shall pay interest on the Advance (or the unreimbursed portion thereof) from (and including) the date such Advance is made
to (but excluding) the earlier of repayment of the Advance and receipt by the Agent of the Payment (at a rate quoted at that time
by the Agent as its cost of funding the Advance provided that evidence of the basis of such rate is given to the relevant Issuer).

 

		(7)	In the event of an issue of Notes that are listed on a Stock Exchange, the Agent will promptly,
and in any event prior to the Issue Date in respect of such issue, send the applicable Final Terms to the relevant Stock Exchange.

 

		(8)	Execution in facsimile of any Notes and any photostatic copying or other duplication of the master
Temporary Global Note or the master Permanent Global Note (in unauthenticated form, but executed manually on behalf of the relevant
Issuer as stated above) shall be binding upon the relevant Issuer in the same manner as if such Notes were signed manually by such
signatories.

 

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		8.	PAYMENTS

 

		(1)	The Agent shall advise the relevant Issuer, no later than ten Business Days (as defined in Subclause
8(2)) immediately preceding the date on which any payment is to be made to the Agent pursuant to this Subclause 8(1), of the payment
amount, value date and payment instructions and the relevant Issuer shall on each date on which any payment in respect of any Bearer
Notes becomes due, transfer to an account specified by the Agent not later than (unless otherwise agreed between the relevant Issuer
and the Agent) the Payment Time such amount in the relevant currency as shall be sufficient for the purposes of such payment in
funds settled through such payment system as the Agent and the relevant Issuer may agree. As used in this Subclause 8(1), the term
Payment Time means (unless otherwise agreed between the relevant Issuer and the Agent) 2:00 p.m. local time in the principal
financial centre of the country of the currency in which the payment falls is to be made (which in the case of payment of euro
is London). Unless otherwise provided in the applicable Final Terms, the principal financial centre of any country for the purposes
of this Subclause 8(1) shall be as provided in the ISDA Definitions on the Issue Date of such Series of Bearer Notes (except if
the Specified Currency is Australian dollars or New Zealand dollars the principal financial centre shall be Sydney or Auckland,
respectively).

 

		(2)	The relevant Issuer shall ensure that, no later than the third Business Day immediately preceding
the date on which any payment is to be made to the Agent pursuant to Subclause 8(1), the Agent shall receive a confirmation from
the relevant Issuer that such payment will be made. For the purposes of this Clause 8, Business Day has the meaning given
to it in Condition 4(b).

 

		(3)	The Agent shall ensure that payments of both principal and interest in respect of Temporary Global
Notes will be made only to the extent that certificates of non-U.S. beneficial ownership as required by U.S. Treasury regulations
have been received from Euroclear and/or Clearstream, Luxembourg in accordance with the terms thereof (and the Agent shall retain
each such certification on behalf of the relevant Issuer for four calendar years following the year in which the certification
is received); provided, however, that no such certification will be required with respect to Notes that, as specified in the applicable
Final Terms (i) have been issued in reliance on United States Treasury regulation Section 1.163-5(c)(2)(i)(C) (“TEFRA
C”) or (ii) have an initial maturity of 183 days or less (taking into consideration unilateral rights to roll or extend),
a minimum denomination of $500,000 (or the equivalent value in any other currency, determined at the spot rate on the date of issue)
and are intended to comply with United States Treasury Regulations Section 1.6049-5T(b)(10).

 

		(4)	The Agent shall pay interest on the Notes only outside the United States and its possessions, within
the meaning of United States Treasury regulation Section 1.163-5(c)(2)(v). No interest on Notes issued by TMCC shall be paid into
an account maintained by the payee in the United States or mailed to an address in the United States unless otherwise permitted
in the Conditions.

 

		(5)	Subject to the Agent being satisfied in its sole discretion that payment will be duly made as provided
in Subclause 8(1), the Agent or the relevant Paying Agent shall pay or cause to be paid all amounts due in respect of the Bearer
Notes on behalf of the relevant Issuer in the manner provided in the

 

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Conditions. If any payment provided
for in Subclause 8(1) is made late but otherwise in accordance with the provisions of this Agreement, the Agent and each Paying
Agent shall nevertheless make payments in respect of the Bearer Notes as aforesaid following receipt by it of such payment.

 

		(6)	If for any reason the Agent considers in its sole discretion that the amounts to be received by
the Agent pursuant to Subclause 8(1) will be, or the amounts actually received by it pursuant thereto are, insufficient to satisfy
all claims in respect of all payments then falling due in respect of the Bearer Notes, the Agent shall then forthwith notify the
relevant Issuer of such insufficiency and, until such time as the Agent has received the full amount of all such payments, neither
the Agent nor any Paying Agent shall be obliged to pay any such claims.

 

		(7)	Without prejudice to Subclauses 8(5) and 8(6), if the Agent pays any amounts to the holders of
Bearer Notes or Coupons or to any Paying Agent at a time when it has not received payment in full in respect of the relevant Bearer
Notes in accordance with Subclause 8(1) (the excess of the amounts so paid over the amounts so received being the Shortfall),
the relevant Issuer shall, in addition to paying amounts due under Subclause 8(1), pay to the Agent on demand interest (at a rate
which represents the Agent’s actual overnight cost of funding the Shortfall as evidenced to the relevant Issuer by the provision
of details of the calculation of the cost of funding) on the Shortfall (or the unreimbursed portion thereof) from (and including)
the date such Shortfall is paid by the Agent to the holders of the Bearer Notes or Coupons or to any Paying Agent to (but excluding)
the date of receipt in full by the Agent of the Shortfall. The Agent shall notify the relevant Issuer by facsimile as soon as practicable,
it being understood that the relevant Issuer shall have the right to make such payment subsequently with good value as of such
Business Day.

 

		(8)	The Agent shall on demand promptly reimburse each Paying Agent for payments in respect of Bearer
Notes properly made by such Paying Agent in accordance with this Agreement and the Conditions unless the Agent has notified the
Paying Agent, prior to the opening of business in the location of the office of the Paying Agent through which payment in respect
of the Bearer Notes can be made on the due date of a payment in respect of the Bearer Notes, that the Agent does not expect to
receive sufficient funds to make payment of all amounts falling due in respect of such Bearer Notes.

 

		(9)	Whilst any Bearer Notes are represented by Temporary Global Notes or Permanent Global Notes, all
payments due in respect of such Notes shall be made to, or to the order of, the holder of the Global Notes, subject to and in accordance
with the provisions of the Global Notes. On the occasion of any such payment, (i) in the case of a CGN, the Paying Agent to which
the Global Note was presented for the purpose of making such payment shall cause the relevant Schedule to the Global Notes to be
annotated so as to evidence the amounts and dates of such payments of principal and/or interest as applicable or (ii) in the case
of any Global Note which is a New Global Note, the Agent shall instruct Euroclear and Clearstream, Luxembourg to make appropriate
entries in their records to reflect such payment.

 

		(10)	If the amount of principal and/or interest then due for payment is not paid in full (otherwise
than by reason of (a) FATCA Withholding Tax or (b) any other deduction required by law to be made therefrom), (i) the Paying Agent

 

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to which a Temporary Global Note
or Permanent Global Note is presented for the purpose of making such payment shall, unless the Note is a New Global Note, make
a record of such shortfall on the relevant Schedule to the Global Note and such record shall, in the absence of manifest error,
be prima facie evidence that the payment in question has not to that extent been made or (ii) in the case of any Global Note which
is a New Global Note, the Agent shall instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their records
to reflect such shortfall in payment.

 

		(11)	Each Paying Agent shall be entitled to deduct any applicable FATCA Withholding Tax and shall have
no obligation to gross-up any payment hereunder or to pay any additional amount as a result of such applicable FATCA Withholding
Tax.

 

		(12)	If the relevant Issuer reasonably determines that it will be required to withhold or deduct any
FATCA Withholding Tax in connection with any payment due on any Notes, then the relevant Issuer will be entitled to re-direct or
reorganise any such payment in any way that it sees fit in order that the payment may be made without FATCA Withholding Tax provided
that any such re-direction or reorganisation of any payment is made through a recognised institution of international standing
and such payment is otherwise made in accordance with this Agreement.

 

		9.	DETERMINATIONS AND NOTIFICATIONS IN RESPECT OF NOTES

 

		(1)	The Agent shall make all such determinations and calculations (howsoever described) as it is required
to do under the Conditions, all subject to and in accordance with the Conditions provided that certain calculations with respect
to any Series of Notes may be made by an agent (the Calculation Agent) appointed by the relevant Issuer and acceptable to
the Agent. The Agent may decline to act in the capacity described above in relation to a particular Series of Notes if (i) the
Agent does not have the capacity to determine the rate of interest or redemption amount or any other calculation to be made in
relation to such Series of Notes and (ii) such decision to decline is notified to the relevant Issuer by the Agent as soon as reasonably
practicable after receipt by the Agent of the terms of such Series of Notes and, in any event, prior to the issue of such Series
of Notes.

 

		(2)	The Agent shall not be responsible to any Issuer or to any third party (except in the event of
negligence, wilful default or bad faith) as a result of the Agent having acted on any quotation given by any Reference Bank (as
referred to in Condition 4(b)(iv)(E)) which subsequently may be found to be incorrect.

 

		(3)	The Agent shall promptly notify (and confirm in writing to) the relevant Issuer, the other Paying
Agents, (in the case of Registered Notes issued by TCCI) the TCCI Registrar and the TCCI Transfer Agent, (in the case of Registered
Notes issued by TMCC) the TMCC Registrar and the TMCC Transfer Agent and (in respect of a Series of Notes listed on a Stock Exchange)
the relevant Stock Exchange (or other relevant authority) of, inter alia, each Rate of Interest, Interest Amount and Interest
Payment Date and all other amounts, rates and dates which it is obliged to determine or calculate under the Conditions as soon
as practicable after the determination thereof (and in any event no later than the tenth Business Day (as defined in Clause 8)
immediately preceding the date on which any payment is to be made to the

 

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Agent pursuant to Subclause 8(1))
and of any subsequent amendment thereto pursuant to the Conditions.

 

		(4)	The Agent shall use its best endeavours to cause each Rate of Interest, Interest Amount and Interest
Payment Date and all other amounts, rates and dates which it is obliged to determine or calculate under the Conditions (or which
is provided to the Agent by any other Calculation Agent appointed by the relevant Issuer as provided in Subclause 9(1)) to be published
as required in accordance with the Conditions as soon as possible after their determination or calculation.

 

		(5)	If the Agent does not at any material time for any reason determine and/or calculate and/or publish
the Rate of Interest, Interest Amount and/or Interest Payment Date in respect of any Interest Period or any other amount, rate
or date as provided in this Clause 9, it shall forthwith notify the relevant Issuer, the other Paying Agents, (in the case of Registered
Notes issued by TCCI) the TCCI Registrar and the TCCI Transfer Agent and (in the case of Registered Notes issued by TMCC) the TMCC
Registrar and the TMCC Transfer Agent of such fact.

 

		(6)	The Agent shall provide to the Dealer or Dealers with respect to any Series of Notes certification
as to the completion of distribution of such Series of Notes.

 

		(7)	For purposes of monitoring the aggregate nominal amount of Notes (as “Notes” is defined
in the Programme Agreement) issued and outstanding (as “outstanding” is defined in the Programme Agreement) under the
Programme, the Agent shall determine the euro equivalent of the nominal amount of each issue of Notes (as “Notes” is
defined in the Programme Agreement) denominated in a Specified Currency, other than euros as follows:

 

		(a)	the EUR equivalent of Notes denominated in a Specified Currency other than EUR shall be determined
by the Agent as of 2:30 p.m. London time on the Issue Date for such Notes (save in the case of Notes issued prior to 28 September
2007 by TMCC under its U.S.$30,000,000,000 Euro Medium-Term Note Program which remain outstanding where the EUR equivalent of such
Notes denominated in a Specified Currency other than EUR was determined by the Agent as of 2.30 p.m. London time on 28 September
2007) by reference to the spot rate displayed on a page on the relevant Reuters service or Dow Jones Markets Limited or such other
service as is agreed between the Agent and the relevant Issuer from time to time;

 

		(b)	the EUR equivalent of Notes that are linked to an index or formula (Index Linked Notes), or where
payment obligations under such Notes are denominated in more than one currency (Dual Currency Notes), shall be determined in the
manner specified above in paragraph (a) by reference to the original nominal amount of such Notes; and

 

		(c)	the EUR equivalent of Zero Coupon Notes and other Notes issued at a discount shall be determined
in the manner specified above in

 

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paragraph (a) by reference to
the net proceeds received by the relevant Issuer for the particular issue.

 

The Agent shall promptly notify
the relevant Issuer of each determination made as aforesaid.

 

		(8)	Without prejudice to Subclause 9(7), determinations with regard to Notes linked to an index or
formula or number of currencies shall otherwise be made by the Calculation Agent specified in the applicable Final Terms in the
manner specified in the applicable Final Terms. Unless otherwise agreed between the relevant Issuer and the relevant Purchaser
or Purchasers of such Notes, such determinations shall be made on the basis of a Calculation Agency Agreement substantially in
the form of Appendix C hereto.

 

		10.	NOTICE OF ANY WITHHOLDING OR DEDUCTION

 

If any Issuer is, in respect
of any payments, compelled to withhold or deduct any amount for or on account of taxes, duties, assessments or governmental charges
as specifically contemplated under the Conditions, such Issuer shall give notice thereof to the Agent as soon as it becomes aware
of the requirement to make such withholding or deduction and shall give to the Agent such information as it shall require to enable
it to comply with such requirement.

 

		11.	DUTIES OF THE AGENT IN CONNECTION WITH EARLY REDEMPTION

 

		(1)	If the relevant Issuer decides to redeem any Notes for the time being outstanding prior to their
Maturity Date in accordance with the Conditions, the relevant Issuer shall give notice of such decision to the Agent not less than
five days before the date of the notice required to be given to the holders of the Notes under the Conditions or such shorter period
that is acceptable to the Agent.

 

		(2)	If only some of the Notes of the same Series are to be redeemed on such date the Agent shall make
the required drawing in accordance with the Conditions but shall give the relevant Issuer reasonable notice of the time and place
proposed for such drawing and the relevant Issuer shall be entitled to send representatives to attend such drawing.

 

		(3)	The Agent shall publish the notice required in connection with any such redemption and shall at
the same time also publish a separate list of serial numbers of any Notes previously drawn and not presented for redemption. Such
notice shall specify the date fixed for redemption, the redemption amount, the manner in which redemption will be effected and,
in the case of a partial redemption, the serial numbers of the Notes to be redeemed. Such notice will be published in accordance
with the Conditions.

 

		12.	PUBLICATION OF NOTICES

 

On behalf of and at the request
and expense of the relevant Issuer, the Agent shall cause to be published all notices required to be given by the relevant Issuer
in accordance with the Conditions. Forthwith upon the receipt by the Agent of a demand or notice from any Noteholder in accordance
with the Conditions, the Agent shall forward a copy thereof to the relevant Issuer.

 

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		13.	Cancellation, Resale and Reissuance of Notes, Coupons and Talons

 

		(1)	All Notes which are redeemed, all Global Notes which are exchanged in full, all Coupons which are
paid and all Talons which are exchanged shall be cancelled by the Agent or Paying Agent by which they are redeemed, paid or exchanged.
In addition, all Notes which are purchased or otherwise acquired pursuant to the Conditions by the relevant Issuer, together (in
the case of Definitive Bearer Notes) with all unmatured Coupons or Talons (if any) attached thereto or purchased therewith, may,
at the option of the relevant Issuer where the Issuer is TMF or TFA, either be (i) resold or reissued, or held by the relevant
Issuer for subsequent resale or reissuance, or (ii) cancelled in which event such Notes and Coupons may not be resold or reissued.
Where the Issuer is TCCI, unless otherwise specified in the applicable Final Terms, such Notes shall be surrendered (in the case
of Bearer Notes) to any Paying Agent or in the case of Registered Notes, the TCCI Registrar or TCCI Transfer Agent for cancellation.
Where the Issuer is TMCC, unless otherwise specified in the applicable Final Terms, such Notes shall be surrendered (in the case
of Bearer Notes) to any Paying Agent or in the case of Registered Notes, the TMCC Registrar or TMCC Transfer Agent for cancellation.
Where any Notes, Coupons or Talons are purchased and cancelled, resold or reissued, or held by the relevant Issuer for subsequent
resale or reissuance, as aforesaid, the relevant Issuer shall procure that all relevant details are promptly given to the Agent
and that all Notes, Coupons or Talons so cancelled are delivered to the Agent.

 

		(2)	Upon the written request of the relevant Issuer, a certificate stating:

 

		(a)	the aggregate nominal amount of Notes which have been redeemed and the aggregate amount paid in
respect thereof;

 

		(b)	the number of Notes cancelled together (in the case of Definitive Bearer Notes) with details of
all unmatured Coupons or Talons (if any) attached thereto or delivered therewith;

 

		(c)	the aggregate amount paid in respect of interest on the Notes;

 

		(d)	the total number by maturity date of Coupons and Talons so cancelled; and

 

		(e)	in the case of Definitive Bearer Notes, the serial numbers of such Notes,

 

shall be given to the relevant
Issuer by the Agent as soon as reasonably practicable and in any event within 30 days after the date of such repayment or, as the
case may be, payment or exchange.

 

		(3)	Subject to being duly notified in due time, the Agent shall give a certificate to the relevant
Issuer, within three months of the date of purchase and cancellation or purchase and subsequent resale or reissuance of Notes as
aforesaid, stating:

 

		(a)	the nominal amount of Notes so purchased and cancelled, resold or reissued;

 

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		(b)	in the case of Definitive Bearer Notes, the serial numbers of such Notes; and

 

		(c)	the total number by maturity date of the Coupons and Talons (if any) appertaining thereto and surrendered
therewith or attached thereto.

 

		(4)	The Agent shall destroy all cancelled Notes, Coupons and Talons (unless otherwise instructed by
the relevant Issuer) and, forthwith upon destruction and following the written request of the relevant Issuer, furnish the relevant
Issuer with a certificate of the serial numbers of the Notes (in the case of Definitive Bearer Notes) and the number by maturity
date of Coupons and Talons so destroyed.

 

		(5)	Without prejudice to the obligations of the Agent pursuant to Subclause 13(2), the Agent shall
keep a full and complete record of all Notes, Coupons and Talons (other than serial numbers of Coupons, except those which have
been replaced pursuant to Condition 10) and of all redeemed, cancelled or replacement Notes, Coupons or Talons (in the case of
Definitive Bearer Notes, with details of all unmatured Coupons or Talons (if any) attached thereto or delivered therewith) including
those issued in substitution for mutilated, defaced, destroyed, lost or stolen Notes, Coupons or Talons and of all Notes, Coupons
or Talons which have been resold or reissued. The Agent shall at all reasonable times make such record available to the relevant
Issuer and any person authorised by the relevant Issuer for inspection and for the taking of copies thereof or extracts therefrom.

 

		(6)	All records and certificates made or given pursuant to this Clause 13 and Clause 14 shall make
a distinction between Notes, Coupons and Talons of each Series.

 

		(7)	The Agent is authorised by the relevant Issuer and instructed (a) in the case of any Global Note
which is a CGN, to endorse or to arrange for the endorsement of the relevant Global Note to reflect the reduction in the nominal
amount represented by it by the amount so redeemed or purchased and cancelled and (b) in the case of any Global Note which is a
New Global Note, to instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their records to reflect such
redemption or purchase and cancellation, as the case may be; provided, that, in the case of a purchase or cancellation, the relevant
Issuer has notified the Agent of the same in accordance with Subclause 13(1).

 

		14.	ISSUE OF REPLACEMENT NOTES, COUPONS AND TALONS

 

		(1)	The Issuers will cause a sufficient quantity of additional forms of Notes, Coupons and Talons to
be available, upon request, to the Agent at its specified office for the purpose of issuing replacement Notes, Coupons and Talons
as provided below.

 

		(2)	The Agent will, subject to and in accordance with the Conditions and the following provisions of
this Clause 14, cause to be delivered any replacement Notes, Coupons and Talons which the relevant Issuer may determine to issue
in place of Notes, Coupons and Talons which have been lost, stolen, mutilated, defaced or destroyed.

 

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		(3)	In the case of a mutilated or defaced Note, the Agent shall ensure that (unless otherwise covered
by such indemnity as the relevant Issuer may require) any replacement Note will only have attached to it Coupons and Talons corresponding
to those (if any) attached to the mutilated or defaced Note which is presented for replacement.

 

		(4)	The Agent shall not issue any replacement Note, Coupon or Talon unless and until the applicant
therefor shall have:

 

		(a)	paid such reasonable costs as may be incurred in connection therewith;

 

		(b)	furnished it with such evidence (including evidence as to the serial number of such Note, Coupon
or Talon) and indemnity or other security (which may include a bank guarantee and/or security) or otherwise as the relevant Issuer
and the Agent may reasonably require; and

 

		(c)	in the case of any mutilated or defaced Note, Coupon or Talon, surrendered the same to the Agent.

 

		(5)	The Agent shall cancel any mutilated or defaced Notes, Coupons and Talons in respect of which replacement
Notes, Coupons and Talons have been issued pursuant to this Clause 14 and shall furnish the relevant Issuer with a certificate
stating the serial numbers of the Notes, Coupons and Talons so cancelled and, unless otherwise instructed by the relevant Issuer
in writing, shall destroy such cancelled Notes, Coupons and Talons and furnish the relevant Issuer with a destruction certificate
containing the information specified in Subclause 13(4).

 

		(6)	The Agent shall, on issuing any replacement Note, Coupon or Talon, forthwith inform the relevant
Issuer and the Paying Agents of the serial number of such replacement Note, Coupon or Talon issued and (if known) of the serial
number of the Note, Coupon or Talon in place of which such replacement Note, Coupon or Talon has been issued. Whenever replacement
Coupons or Talons are issued pursuant to the provisions of this Clause 14, the Agent shall also notify the Paying Agents of the
maturity dates of the lost, stolen, mutilated, defaced or destroyed Coupons or Talons and of the replacement Coupons or Talons
issued.

 

		(7)	The Agent shall keep a full and complete record of all replacement Notes, Coupons and Talons issued
and shall make such record available at all reasonable times to the relevant Issuer and any persons authorised by the relevant
Issuer for inspection and for the taking of copies thereof or extracts therefrom.

 

		(8)	Whenever any Note, Coupon or Talon for which a replacement Note, Coupon or Talon has been issued
and in respect of which the serial number is known is presented to the Agent or any of the Paying Agents for payment, the Agent
or, as the case may be, the relevant Paying Agent shall immediately send notice thereof to the relevant Issuer and the Agent.

 

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		(9)	Notwithstanding any of the foregoing in this Clause 14, no issue of replacement Notes, Coupons
and Talons shall be made or delivered in the United States.

 

		15.	Copies of this Agreement and Each Final Terms Available for Inspection

 

The Agent and the Paying Agents
shall, for as long as any Note remains outstanding, hold copies of this Agreement, the Credit Support Agreements, the constitutional
documents of each Issuer, TFS and the Parent, the Prospectus dated the date hereof and any supplement to or replacement thereof
produced from time to time, the forms of the temporary global, permanent global and definitive Notes and each applicable Final
Terms in relation to a Series of listed Notes or Notes offered to the public in the European Economic Area, available for inspection.
In addition, the Agent and the Paying Agents shall hold and shall make available, free of charge, at their specified offices copies
of the latest annual and any interim reports of the relevant Issuer and the Parent; provided, however, that if a Paying Agent acts
as a Paying Agent for only some of the Series of Notes issued under the Programme, such Paying Agent need only hold the applicable
Final Terms for the Series of Notes for which it acts as Paying Agent (and any documents specified in the applicable Final Terms)
and the other documents referenced in this Clause 15 shall be obtained by Noteholders from the Agent or from Paying Agents that
act as Paying Agents for all Series of Notes issued under the Programme. For this purpose, the Issuers shall furnish the Agent
and the Paying Agents with sufficient copies of the documents they are required to hold.

 

		16.	COMMISSIONS AND EXPENSES

 

		(1)	The Issuers severally agree to pay to the Agent such fees and commissions as the Issuers and the
Agent may separately agree in respect of the services of the Agent and the Paying Agents hereunder together with any out-of-pocket
expenses (including legal, printing, postage, tax, cable and advertising expenses required in connection with the Notes issued
hereunder) properly incurred by the Agent and the Paying Agents in connection with their said services.

 

		(2)	The Agent shall make payment of the fees and commissions due hereunder to the Paying Agents and
shall reimburse their expenses promptly after the receipt of the relevant moneys from the Issuers. None of the Issuers shall be
responsible for any such payment or reimbursement by the Agent to the Paying Agents.

 

		17.	INDEMNITY

 

		(1)	The Issuers shall severally indemnify the Agent and each of the Paying Agents against any direct
losses, liabilities, costs, claims, actions, demands or expenses (including, but not limited to, all reasonable costs, charges
and expenses paid or incurred in disputing or defending any of the foregoing but excluding loss of profits) which it may incur
or which may be made against the Agent or any Paying Agent as a result of or in connection with its appointment by the Issuers
or the exercise of its powers and duties hereunder except such as may result from the Agent’s or any such Paying Agent’s
own wilful default, negligence or bad faith or that of its officers, directors or

 

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employees or the breach by it of
the terms of this Agreement. Such indemnity shall survive the termination or expiry of this Agreement.

 

		(2)	The Agent and the Paying Agents shall not be liable for any action taken or omitted hereunder except
for their own wilful default, negligence or bad faith or that of their respective officers, directors or employees or the breach
by any of them of the terms of this Agreement. Neither the Agent nor any Paying Agent shall be liable for any consequential loss
(being loss of business, goodwill, opportunity or profit) suffered by any Issuer.

 

		(3)	Neither the Agent nor any of the Paying Agents shall be responsible for the acts or failure to
act of any other of them and each of the Agent and the Paying Agents shall severally indemnify each Issuer against any loss, liability,
cost, claim, action, demand or expense (including, but not limited to, all reasonable costs, legal fees, charges and expenses paid
or incurred in disputing or defending any of the foregoing) which any Issuer may incur or which may be made against it as a result
of the breach by the Agent or such Paying Agents of the terms of this Agreement or its wilful default, negligence or bad faith
or that of its officers, directors or employees. Such indemnity shall survive the termination or expiry of this Agreement.

 

		18.	REPAYMENT BY THE AGENT

 

The Agent shall, forthwith on
demand, upon the relevant Issuer being discharged from its obligation to make payments in respect of any Notes under the relevant
Conditions, and provided that there is no outstanding, bona fide and proper claim in respect of any such payments, pay to the relevant
Issuer sums equivalent to any amounts paid to it by the relevant Issuer in respect of such Notes.

 

		19.	CONDITIONS OF APPOINTMENT

 

		(1)	The Agent shall be entitled to deal with money paid to it by any Issuer for the purpose of this
Agreement in the same manner as other money paid to a banker by its customers except:

 

		(a)	that it shall not exercise any right of set-off, lien or similar claim in respect thereof;

 

		(b)	as provided in Subclause 19(2) below; and

 

		(c)	that it shall not be liable to account to any Issuer for any interest thereon except as otherwise
agreed between the relevant Issuer and the Agent.

 

		(2)	In acting hereunder and in connection with the Notes, the Agent and the Paying Agents shall act
solely as agents of the Issuers and will not thereby assume any obligations towards or relationship of agency or trust for or with
any of the owners or holders of the Notes, Coupons or Talons. Moneys paid by any Issuer to the Agent for the payment of principal
or interest on Notes remaining unclaimed at the end of five years after such principal or interest shall become due and payable
shall be repaid to the relevant Issuer as provided and in the manner set forth in the Notes whereupon all liability of the Agent
with respect thereto shall cease. All funds held by the Agent or the

 

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Paying Agents need not be segregated
from other funds, except as required by law.

 

		(3)	The Agent and the Paying Agents hereby undertake to the Issuers to perform such obligations and
duties, and shall be obliged to perform such duties and only such duties, as are herein (including Appendix F hereto in the case
of the Agent), in the Conditions and in the Procedures Memorandum specifically set forth, or are otherwise agreed to in writing
by the relevant Issuer, the Agent and the Paying Agents as applicable, and no implied duties or obligations shall be read into
this Agreement or the Notes against the Agent and the Paying Agents other than the duty to act honestly and in good faith and to
exercise the diligence of a reasonably prudent agent in comparable circumstances. Each of the Paying Agents (other than the Agent)
agrees that if any information that is required by the Agent to perform the duties set out in Appendix F hereto becomes known to
it, it will promptly provide such information to the Agent.

 

		(4)	The Agent may consult with legal and other professional advisers and the opinion of such advisers
shall be full and complete protection in respect of any action taken, omitted or suffered hereunder in good faith and in accordance
with the opinion of such advisers.

 

		(5)	Each of the Agent and the Paying Agents shall be protected and shall incur no liability for or
in respect of any action taken, omitted or suffered in reliance upon any instruction, request or order from any of the Issuers
or any notice, resolution, direction, consent, certificate, affidavit, statement, cable or other paper or document which it reasonably
believes to be genuine and to have been delivered, signed or sent by the proper party or parties or upon written instructions from
any of the Issuers.

 

		(6)	Any of the Agent and the Paying Agents and their officers, directors and employees may become the
owner of, or acquire any interest in, any Notes, Coupons or Talons with the same rights that it, he or she would have if the Agent
or the relevant Paying Agent, as the case may be, concerned were not appointed hereunder, and may engage or be interested in any
financial or other transaction with any of the Issuers and may act on, or as depositary, trustee or agent for, any committee or
body of holders of Notes or Coupons or in connection with any other obligations of the Issuers as freely as if the Agent or the
relevant Paying Agent, as the case may be, were not appointed hereunder.

 

		(7)	Each Issuer shall provide the Agent with a certified copy of the list of persons authorised to
execute documents and take action on its behalf in connection with this Agreement and shall notify the Agent promptly in writing
if any of such persons ceases to be so authorised or if any additional person becomes so authorised together, in the case of an
additional authorised person, with evidence satisfactory to the Agent that such person has been so authorised.

 

		(8)	The amount of the Programme may be increased by the Issuers in accordance with the procedure set
out in the Programme Agreement. Upon any increase being effected, all references in this Agreement to the amount of the Programme
shall be deemed to be references to the increased amount.

 

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		(9)	The Agent and each Paying Agent shall be a person payments to whom are free from FATCA Withholding
Tax at the time of such Agent’s or Paying Agent’s appointment.

 

		(10)	Payments made by TMCC are from U.S. source for U.S. federal tax purposes and are “withholdable
payments” within the meaning of Section 1473(1) of the Code. Each of TMF, TCCI and TFA is an “NFFE” within the
meaning of Treasury Regulation Section 1.1471-1(b)(80), and each of TMF, TCCI and TFA will advise the Agent if its status as an
NFFE were to change, in which event, the relevant Issuer will provide the Agent with sufficient information to determine if and
the amount of any payment to be made by such Issuer pursuant to this Agreement and the Conditions, if any, that constitutes a “passthru
payment” within the meaning of Treasury Regulation Section 1.1471-1(b)(95) so as to enable the Agent to determine whether
and in what amount the Agent or any other Paying Agent is obliged to make any withholding or deduction of applicable FATCA Withholding
Tax. In the event that any Notes that were not subject to FATCA Withholding Tax by reason of being “grandfathered”
lose such grandfathered status as a result of undergoing a “significant modification” within the meaning of Treasury
Regulation Section 1.1001-3(e), the relevant Issuer will inform the Agent and any other Paying Agent of any such loss of grandfathered
status prior to the date on which any payments on such Notes would become subject to FATCA Withholding Tax.

 

		(11)	The Agent and any Paying Agent that is for the purposes of receiving payments under this Agreement
not a “foreign person” within the meaning of U.S. Treasury Regulations Section 1.1441-1(c)(2): (i) represents
that it is a financial institution within the meaning of U.S. Treasury Regulations Section 1.1441-1(c)(5), (ii) confirms that it
will comply with all withholding requirements imposed on payments with respect to the Notes under Sections 1441, 1442, and the
Foreign Account Tax Compliance Act and (iii) agrees that upon its appointment it will provide the Issuers with a properly
completed, signed and valid IRS Form W-9.

 

		(12)	The Agent and any Paying Agent that is for the purposes of receiving payments under this Agreement
a “foreign person” within the meaning of U.S. Treasury Regulations Section 1.1441-1(c)(2): (i) represents that
it is a “qualified intermediary” within the meaning of U.S. Treasury Regulations Section 1.1441-1(e)(5)(ii), will remain
so, and will assume primary chapter 3 and chapter 4 withholding and 1099 reporting and (ii) agrees that upon its appointment it
will provide the Issuers with a properly completed, signed and valid IRS Form W-8IMY, with its Global Intermediary Identification
Number included thereon and identifying itself as a qualified intermediary that has undertaken primary responsibility for chapter
3 and chapter 4 withholding and 1099 reporting.

 

		20.	COMMUNICATION BETWEEN THE PARTIES

 

A copy of all communications
relating to the subject matter of this Agreement between any Issuer and any holders of Notes or Coupons and any of the Paying Agents
shall be sent to the Agent by the relevant Paying Agent and the Agent shall forthwith promptly deliver a copy of any such communication
to the relevant Issuer.

 

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		21.	CHANGES IN AGENT AND PAYING AGENTS

 

		(1)	Each Issuer agrees that, until no Note is outstanding or until moneys for the payment of all amounts
in respect of all outstanding Notes have been made available to the Agent and have been returned to the relevant Issuer as provided
herein (whichever is the later):

 

		(a)	so long as any Notes are admitted to trading or listed on any Stock Exchange or other relevant
authority, there will at all times be a Paying Agent with a specified office in such place as may be required by the rules and
regulations of the relevant Stock Exchange or other relevant authority; and

 

		(b)	there will at all times be an Agent.

 

In addition, the Issuers shall
appoint a Paying Agent having a specified office in the United States only in the circumstances described in the final paragraph
of Condition 5(d). Any variation, termination, appointment or change shall only take effect (other than in the case of insolvency,
when it shall be of immediate effect) after not less than 30 nor more than 45 days prior notice thereof shall have been given to
the Noteholders in accordance with Condition 16.

 

		(2)	The Agent may (subject as provided in Subclause 21(4)) at any time resign as Agent by giving written
notice to the Issuers of such intention on its part, specifying the date on which its desired resignation shall become effective;
provided that such date shall never be less than three months after the receipt of such notice by the Issuers unless the Issuers
agree to accept less notice.

 

		(3)	The Agent may (subject as provided in Subclause 21(4)) be removed at any time by the filing with
it of an instrument in writing signed on behalf of the Issuers specifying such removal and the date when it shall become effective.

 

		(4)	Any resignation under Subclause 21(2) or removal under Subclause 21(3) shall only take effect upon
the appointment by the Issuers of a successor Agent and (other than in cases of insolvency of the Agent) on the expiry of the notice
to be given under Clause 23. If, by the day falling 10 days before the expiry of any notice under Subclause 21(2), the Issuers
have not appointed a successor Agent, then the Agent shall be entitled, on behalf of the Issuers, to appoint as a successor Agent
in its place such reputable financial institution of good standing as it may reasonably determine to be capable of performing the
duties of the Agent hereunder.

 

		(5)	In case at any time the Agent and/or any Paying Agent resigns, or is removed, or becomes incapable
of action or is adjudged bankrupt or insolvent, or files a voluntary petition in bankruptcy or makes an assignment for the benefit
of its creditors or consents to the appointment of an administrator, liquidator or administrative or other receiver of all or a
substantial part of its property, or if an administrator, liquidator or administrative or other receiver of it or all or a substantial
part of its property is appointed, or it admits in writing its inability to pay or meet its debts as they become due, or if an
order of any court is entered approving any petition filed by or against it under the provisions of any applicable bankruptcy or
insolvency law or if any officer takes charge or control of it or of its property

 

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or affairs for the purpose of rehabilitation,
administration or liquidation, a successor Agent and/or Paying Agent may be appointed by the Issuers by an instrument in writing
filed with the successor Agent and/or Paying Agent. Upon the appointment as aforesaid of a successor Agent and/or Paying Agent
and acceptance by the latter of such appointment and (other than in the case of insolvency of the Agent and/or Paying Agent when
it shall be of immediate effect) upon expiry of the notice to be given under Clause 23, the Agent and/or Paying Agent so superseded
shall cease to be an Agent and/or a Paying Agent hereunder.

 

		(6)	Subject to Subclause 21(1), the Issuers may, after prior consultation with the Agent, terminate
the appointment of any of the other Paying Agents at any time and/or appoint one or more further Paying Agents located outside
the United States (either for all Notes issued under the Programme or with respect to a particular Series of Notes) by giving to
the Agent, and to the relevant Paying Agent, at least 45 days’ notice in writing to that effect, or such lesser notice as
is agreed to by the Agent, the Issuers and the relevant Paying Agent; and any Issuer may, in respect of a particular Series of
Notes only, appoint one or more further Paying Agents which appointment shall take effect on the date of such appointment.

 

		(7)	Subject to Subclause 21(1), all or any of the Paying Agents (other than the Agent) may resign their
respective appointments hereunder at any time by giving the Issuers and the Agent at least 45 days’ written notice to that
effect.

 

		(8)	Upon its resignation or removal becoming effective, the Agent or the relevant Paying Agent:

 

		(a)	shall, in the case of the Agent, forthwith transfer all moneys held by it hereunder and the records
referred to in Subclauses 13(5) and 14(7) to the successor Agent hereunder; and

 

		(b)	shall be entitled to the payment by the Issuers of its commissions and fees for the services theretofore
rendered hereunder in accordance with the terms of Clause 16 and to the reimbursement of all reasonable out-of-pocket expenses
(including legal fees and together with any applicable value added tax or similar tax thereon) incurred in connection therewith.

 

		(9)	Upon its appointment becoming effective, a successor Agent and any new Paying Agent shall, without
further act, deed or conveyance, become vested with all the authority, rights, powers, trust, immunities, duties and obligations
of such predecessor with like effect as if originally named as Agent or (as the case may be) a Paying Agent hereunder.

 

		(10)	In the case of any Series of Notes to be issued by TCCI in registered form TCCI has appointed a
registrar, transfer agent and paying agent pursuant to the TCCI Note Agency Agreement.

 

		(11)	In the case of any Series of Notes to be issued by TMCC in registered form TMCC has appointed a
registrar, transfer agent and paying agent pursuant to the TMCC Note Agency Agreement.

 

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		(12)	Not less than 60 days prior to the date of any affected payment, the Agent and each Paying Agent
agrees that it shall notify TMCC in writing if any of Subclause 19(9) and Subclause 19(11) or 19(12), as applicable to such Agent
or Paying Agent, cease to be true, or if the Agent or any Paying Agent believes that it will no longer be able to comply with such
Subclauses. Any such notice shall constitute notice of resignation by such Paying Agent under this Agreement with respect to Notes
issued by TMCC.

 

		22.	MERGER AND CONSOLIDATION

 

Any corporation into which the
Agent or any Paying Agent may be merged, or any corporation with which the Agent or any of the Paying Agents may be consolidated,
or any corporation resulting from any merger or consolidation to which the Agent or any of the Paying Agents shall be a party,
or any corporation to which the Agent or any of the Paying Agents shall sell or otherwise transfer all or substantially all the
assets of the Agent or any Paying Agent shall, on the date when such merger, consolidation or transfer becomes effective and to
the extent permitted by any applicable laws, become the successor Agent or, as the case may be, Paying Agent under this Agreement
without the execution or filing of any paper or any further act on the part of the parties hereto, unless otherwise required by
the Issuers, and after the said effective date all references in this Agreement to the Agent or, as the case may be, such Paying
Agent shall be deemed to be references to such corporation. Written notice of any such merger, consolidation or transfer shall
forthwith be given to the Issuers by the relevant Agent or Paying Agent.

 

		23.	NOTIFICATIONS

 

Following receipt of notice of
resignation from the Agent or any Paying Agent and forthwith upon appointing a successor Agent or, as the case may be, further
or other Paying Agents for any Series of Notes outstanding prior to the date of such appointment or on giving notice to terminate
the appointment of any Agent or, as the case may be, Paying Agent, the relevant Issuer shall give or cause to be given not more
than 45 days’ nor less than 30 days’ notice thereof to any Noteholders affected by such termination or appointment
in accordance with the Conditions.

 

		24.	CHANGE OF SPECIFIED OFFICE

 

The specified office of the Agent
shall be One Canada Square, Canary Wharf, London E14 5AL, United Kingdom. If the Agent or any Paying Agent determines to change
its specified office, it shall give to the Issuers and (if applicable) the Agent written notice of such determination giving the
address of the new specified office which shall be in the same city and stating the date on which such change is to take effect,
which shall not be less than 45 days thereafter. The Agent (on behalf of the Issuers) shall within 15 days of receipt of such notice
(unless the appointment of the Agent or the relevant Paying Agent, as the case may be, is to terminate pursuant to Clause 21 on
or prior to the date of such change) give or cause to be given not more than 45 days’ nor less than 30 days’ notice
thereof to the Noteholders in accordance with the Conditions; provided, however, that if a Paying Agent acts as Paying Agent for
only some of the Series of Notes under the Programme, notice need be given only to holders of the Notes of those Series in relation
to which the Paying Agent acts as Paying Agent.

 

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		25.	NOTICES

 

		(1)	Any notice or communication given hereunder shall be sufficiently given or served:

 

		(a)	if delivered in person to the relevant address specified on the signature pages hereof (or to such
other address as is specified in writing and delivered to the relevant parties to this Agreement) and, if so delivered, shall be
deemed to have been delivered at time of receipt;

 

		(b)	if sent by facsimile to the relevant number specified on the signature pages hereof (or to such
other facsimile number as is specified in writing and delivered to the relevant parties to this Agreement) and, if so sent, shall
be deemed to have been delivered upon transmission provided such transmission is confirmed when an acknowledgment of receipt is
received; or

 

		(c)	if sent by email to the relevant email address specified on the signature pages hereof (or to such
other address as is specified in writing and delivered to the relevant parties to this Agreement) and, if so sent, shall be deemed
to have been delivered at the time of confirmation by telephone.

 

		(2)	A copy of any notice served in accordance with Subclause 25(1) shall be given to the Parent and
TFS at:

 

Toyota Motor Corporation

Nagoya Office

7-1, Meieki 4-chome

Nakamura-ku

Nagoya City

Aichi Prefecture 450-8711

Japan

 

	Telephone:	052 552 0721
	Telefax:	052 552 3745
	Attention:	Group Manager of Affiliated Companies Finance Division
	 	 

Toyota Financial Services Corporation

Nagoya Lucent Tower

6-1, Ushijima-cho

Nishi-ku

Nagoya City

Aichi Prefecture 451-6015

Japan

 

	Telephone:	052 217 2414
	Telefax:	052 587 7931
	Attention:	Group Vice President of Risk Management

    Page 33

     

    

		26.	TAXES AND STAMP DUTIES

 

The Issuers agree to pay any
and all stamp and other documentary taxes or duties (other than any interest or penalties arising as a result of a failure by any
other person to account promptly to the relevant authorities for any such duties or taxes after such person shall have received
from the relevant Issuer the full amount payable in respect thereof) which may be payable in connection with the execution, delivery,
performance and enforcement of this Agreement.

 

		27.	CURRENCY INDEMNITY

 

If, under any applicable law
and whether pursuant to a judgment being made or registered against any Issuer or in the liquidation, insolvency or analogous process
of any Issuer or for any other reason, any payment under or in connection with this Agreement is made or is to be satisfied in
a currency (the other currency) other than that in which the relevant payment is expressed to be due (the required currency)
under this Agreement, then, to the extent that the payment (when converted into the required currency at the rate of exchange on
the date of payment or, if it is not practicable for the Agent or the relevant Paying Agent to purchase the required currency with
the other currency on the date of payment, at the rate of exchange as soon thereafter as it is practicable for it to do so or,
in the case of a liquidation, insolvency or analogous process at the rate of exchange on the latest date permitted by applicable
law for the determination of liabilities in such liquidation, insolvency or analogous process) actually received by the Agent or
the relevant Paying Agent falls short of the amount due under the terms of this Agreement, such Issuer undertakes that it shall,
as a separate and independent obligation, indemnify and hold harmless the Agent and the relevant Paying Agent against the amount
of such shortfall. For the purpose of this Clause 27, rate of exchange means the rate at which the Agent or the relevant
Paying Agent is able on the London foreign exchange market on the relevant date to purchase the required currency with the other
currency and shall take into account any premium and other costs of exchange.

 

		28.	AMENDMENTS: MEETINGS OF HOLDERS

 

		(1)	Provisions for meetings of holders of Registered Notes issued by TCCI and amendment of the TCCI
Note Agency Agreement are set out in the TCCI Note Agency Agreement. Provisions for meetings of holders of Registered Notes issued
by TMCC and amendment of the TMCC Note Agency Agreement are set out in the TMCC Note Agency Agreement. This Clause 28 applies to
Bearer Notes and any reference in this Clause 28 to “Notes” is to Bearer Notes.

 

		(2)	This Agreement, the Notes and any Coupons attached to the Notes may be amended by the Issuers or
the relevant Issuer, as the case may be, and the Agent, without the consent of the holder of any Note or Coupon (a) for the purpose
of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained herein or therein, or to evidence
the succession of another corporation to the relevant Issuer as provided in Condition 13 or provide for substitution of the relevant
Issuer as provided in Condition 14, (b) to make any further modifications of the terms of this Agreement necessary or desirable
to allow for the issuance of any additional Notes (which modifications shall not be materially adverse to holders of outstanding
Notes), or (c) in any manner which the Issuers or the relevant Issuer, as the case may be, and the Agent may deem necessary or
desirable

 

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and which shall not materially
adversely affect the interests of the holders of the Notes and Coupons. In addition, with the written consent of holders of a majority
in aggregate nominal amount of the Notes then outstanding affected thereby, or by resolution adopted by the holders of a majority
in aggregate nominal amount of Notes then outstanding present or represented at a meeting of the holders of the Notes affected
thereby at which a quorum is present (provided that such resolution shall be approved by the holders of not less than 25 per cent.
of the aggregate nominal amount of Notes then outstanding affected thereby), this Agreement or the terms and conditions of the
Notes and Coupons may be modified or amended by the parties hereto or thereto, and future compliance and past defaults waived,
in each case as provided in Conditions 9 and 15 and subject to the limitations therein provided (including that no such agreement
shall, without the consent or the affirmative vote of the holder of each Note affected thereby, (i) change the stated maturity
of the principal of or any interest on any Note, (ii) reduce the nominal amount of or interest on any Note, (iii) change
the obligation of the Issuer to pay Additional Amounts as provided in Condition 7, (iv) reduce the percentage in nominal amount
of outstanding Notes the consent of the holders of which is necessary to modify or amend this Agreement or the terms and conditions
of the Notes or to waive any future compliance or past default, or (v) reduce the percentage in nominal amount of outstanding
Notes the consent of the holders of which is required at any meeting of holders of Notes at which a resolution is adopted).

 

		(3)	A meeting of holders of Notes may be called by the holders of at least 10 per cent. in nominal
amount of the outstanding Notes of the relevant Series at any time and from time to time to make, give or take any request, demand,
authorisation, direction, notice, consent, waiver or other action provided by this Agreement or the Notes to be made, given or
taken by holders of Notes.

 

		(4)	The Agent may at any time call a meeting of holders of Notes of any Series for any purpose specified
in Subclause 28(2) to be held at such time and at such place in the City of New York or in London, as the Agent and the relevant
Issuer shall determine. Notice of every meeting of holders of Notes, setting forth the time and the place of such meeting and in
general terms the action proposed to be taken at such meeting, shall be given by the Agent to the relevant Issuer and to the holders
of the Notes, in the same manner as provided in Condition 16, not less than 21 nor more than 180 days prior to the date fixed for
the meeting. In the case at any time the relevant Issuer or the holders of at least 10 per cent. in nominal amount of the outstanding
Notes shall have requested the Agent to call a meeting of the holders to take any action authorised in Subclause 28(2), by written
request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Agent shall not have given notice
of such meeting within 21 days after receipt of such request or shall not thereafter proceed to cause the meeting to be held as
provided herein, then the relevant Issuer, or the holders of Notes in the amount above-specified, as the case may be, may determine
the time and the place in the City of New York or London for such meeting and may call such meeting by giving notice thereof as
provided in this Subclause 28(4).

 

		(5)	To be entitled to vote at any meeting of holders of Notes, a person shall be a holder of outstanding
Notes at the time of such meeting, or a person appointed by an instrument in writing as proxy for such holder.

 

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		(6)	The quorum at any meeting called to adopt a resolution will be persons holding or representing
a majority in aggregate nominal amount of the Notes then outstanding affected thereby. In the absence of a quorum, within 30 minutes
of the time appointed for any such meeting, the meeting may be adjourned for a period of not less than 10 days as determined by
the chairman of the meeting prior to the adjournment of such meeting. In the absence of a quorum at any such adjourned meeting,
such adjourned meeting may be further adjourned for a period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such adjourned meeting. Notice of the reconvening of any adjourned meeting shall be given as provided
in Subclause 28(4) except that such notice need be given not less than five days prior to the date on which the meeting is scheduled
to be reconvened. Notice of the reconvening of an adjourned meeting shall state expressly the percentage of the nominal amount
of the outstanding Notes which shall constitute a quorum.

 

The quorum at any adjourned meeting
will be one or more persons holding or representing 25 per cent. in aggregate nominal amount of such Notes then outstanding
affected thereby. Any meeting of holders of Notes at which a quorum is present may be adjourned from time to time by vote of a
majority in nominal amount of the outstanding Notes represented at the meeting, and the meeting may be held as so adjourned without
further notice. At a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid, any resolution
and all matters shall be effectively passed and decided if passed or decided by the persons entitled to vote a majority in nominal
amount of the outstanding Notes represented and voting at such meeting, provided that such amount approving such resolution shall
be not less than 25 per cent. in nominal amount of the outstanding Notes.

 

		(7)	Any modifications, amendments or waivers under this Clause 28 to this Agreement or to the terms
and conditions of the Notes and Coupons will be conclusive and binding on all holders of Notes and Coupons, whether or not they
have given such consent or were present at any meeting, and whether or not notation of such modifications, amendments or waivers
is made upon the Notes and Coupons. It shall not be necessary for the consent of the holders of Notes under Condition 15 to approve
the particular form of any proposed amendment, but it shall be sufficient if such consent shall approve the substance thereof.

 

		(8)	Notes authenticated and delivered after the execution of any amendment under this Clause 28 to
this Agreement, the Notes or Coupons may bear a notation in form approved by the Agent as to any matter provided for in such amendment
to this Agreement. New Notes so modified as to conform, in the opinion of the Agent and the relevant Issuer, to any modification
contained in any such amendment may be prepared by the relevant Issuer, authenticated by the Agent and delivered in exchange for
the Notes then outstanding affected thereby.

 

		(9)	The Agent may make such reasonable regulations as it may deem advisable for any meeting of holders
of Notes in regard to proof of the holding of Notes and of the appointment of proxies and in regard to the appointment and duties
of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such
other matters concerning the

 

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conduct of the meeting as it shall
deem appropriate. The Agent shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting
shall have been called by the relevant Issuer or holders of Notes as provided above, in which case the relevant Issuer or the holders
of Notes calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a
permanent secretary of the meeting shall be elected by vote of the persons entitled to vote a majority in nominal amount of the
outstanding Notes represented at the meeting. The chairman of the meeting shall have no right to vote, except as a holder of Notes
or proxy. A record, at least in triplicate, of the proceedings of each meeting of holders of Notes shall be prepared, and one such
copy shall be delivered to the relevant Issuer and another to the Agent to be preserved by the Agent.

 

		29.	CALCULATION AGENCY AGREEMENT

 

A form of calculation agency
agreement is set out in Appendix C hereto. Where the Conditions require functions to be carried out by a Calculation Agent other
than the Agent, the relevant Issuer may execute such an agreement or an agreement in such other form as such Issuer and the Calculation
Agent may agree.

 

		30.	REDENOMINATION AND EXCHANGE

 

		(1)	Redenomination

 

Where redenomination (Redenomination)
is specified in the applicable Final Terms as being applicable, and unless otherwise specified in the applicable Final Terms, the
relevant Issuer may, without the consent of any Noteholder or Couponholder, on giving prior notice to Euroclear, Clearstream, Luxembourg
and the Agent or, in the case of Registered Notes issued by TCCI, the TCCI Registrar and the TCCI Transfer Agent or, in the case
of Registered Notes issued by TMCC, the TMCC Registrar and the TMCC Transfer Agent and at least 30 days’ prior notice to
Noteholders as provided in Condition 16, designate a Redenomination Date. With effect from the Redenomination Date, notwithstanding
the other provisions of the Conditions:

 

		(a)	the Notes shall (unless already so provided by mandatory provisions of applicable law) be deemed
to be redenominated in euro in the denomination of euro 0.01 with a nominal amount for each Note equal to the nominal amount of
the Note in the original Specified Currency, converted into euro at the Established Rate, and the Specified Currency shall be deemed
to be Euro; provided that, if the relevant Issuer determines, after consultation with the Agent or, in the case of Registered Notes
issued by TCCI, the TCCI Registrar and the TCCI Transfer Agent or, in the case of Registered Notes issued by TMCC, the TMCC Registrar
and the TMCC Transfer Agent, that the then market practice in respect of the redenomination into euro of internationally offered
securities is different from the provisions specified above in this Subclause 30(1)(a) or in the applicable Final Terms, such provisions
shall be deemed to be amended so as to comply with such market practice and the relevant Issuer shall promptly notify the Noteholders,
the stock exchange (if any) on which the Notes may be listed and the Agent and Paying Agent(s) or,

 

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in the case of Registered Notes
issued by TCCI, the TCCI Registrar and the TCCI Transfer Agent or, in the case of Registered Notes issued by TMCC, the TMCC Registrar
and the TMCC Transfer Agent of such deemed amendments;

 

		(b)	if Definitive Notes are required to be issued after the Redenomination Date, they shall be issued
at the expense of the relevant Issuer in the denominations of euro 1,000, euro 10,000 and euro 100,000 and (but only to the extent
of any remaining amounts less than euro 1,000 or such smaller denominations as the Agent or, in the case of Registered Notes issued
by TCCI, the TCCI Registrar and the TCCI Transfer Agent or, in the case of Registered Notes issued by TMCC, the TMCC Registrar
and the TMCC Transfer Agent may approve) euro 0.01 and such other denominations as the relevant Issuer, after consultation with
the Agent or, in the case of Registered Notes issued by TCCI, the TCCI Registrar and the TCCI Transfer Agent or, in the case of
Registered Notes issued by TMCC, the TMCC Registrar and the TMCC Transfer Agent, shall determine and notify to Noteholders;

 

		(c)	if Definitive Notes have been issued, all unmatured Coupons denominated in the original Specified
Currency (whether or not attached to the Notes) will become void and no payments will be made in respect of them with effect from
the date on which the relevant Issuer gives notice (the Exchange Notice) that Euro-denominated Notes and Coupons are available
for exchange (provided that such securities are so available). New certificates in respect of Euro-denominated Notes and Coupons
will be issued in exchange for Notes and Coupons in the original Specified Currency in such manner as the relevant Issuer, after
consultation with the Agent or, in the case of Registered Notes issued by TCCI, the TCCI Registrar and the TMCC Transfer Agent
or, in the case of Registered Notes issued by TMCC, the TMCC Registrar and the TMCC Transfer Agent, may specify and shall be notified
to Noteholders in the Exchange Notice. No Exchange Notice may be given less than 15 days prior to any date for payment of principal
or interest on the Notes;

 

		(d)	after the Redenomination Date, all payments in respect of the Notes and the Coupons (other than,
unless the Redenomination Date is on or after such date as the original Specified Currency ceases to be a subdivision of the euro,
payments of interest in respect of periods commencing before the Redenomination Date) will be made solely in euro as though references
in the Notes and the Coupons to the Specified Currency were to euro. Such payments will be made in euro by credit or transfer to
a euro account (or any other account to which euro may be credited or transferred) specified by the payee or by cheque; provided,
however, that a cheque may not be delivered to an address in, and an amount may not be transferred to an account at a bank located
in, the United States of America or its possessions except as provided in Condition 5(d);

 

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		(e)	after the Redenomination Date, Business Day in relation to any sum payable in euro shall
mean a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including
dealings in foreign exchange and foreign currency deposits) in London and a day on which the TARGET2 system is open. After the
Redenomination Date, Payment Day shall mean (A) a Business Day as defined herein and (B) a day on which commercial
banks are open for general business (including dealings in foreign exchange and foreign currency deposits) in the relevant place
of presentation;

 

		(f)	if Definitive Notes have been issued, after the Redenomination Date, the amount of interest due
in respect of Notes will be calculated by reference to the aggregate nominal amount of Notes presented (or, as the case may be,
in respect of which Coupons are presented) for payment by the relevant holder and the amount of such payment shall be rounded down
to the nearest euro 0.01. If the Notes are in global form, after the Redenomination Date, the amount of interest due in respect
of Notes represented by the Global Note will be calculated by reference to the aggregate nominal amount of such Notes and the amount
of such payment shall be rounded down to the nearest euro 0.01; and

 

		(g)	the applicable Final Terms will specify any relevant changes to the provisions relating to interest,
including without limitation, any change to the applicable Day Count Fraction and Business Day Convention.

 

		(2)	Exchange

 

Where exchange (Exchange)
is specified in the applicable Final Terms as being applicable, and unless otherwise specified in the applicable Final Terms, the
relevant Issuer may, without the consent of any Noteholder or Couponholder, on giving prior notice to Euroclear, Clearstream, Luxembourg
and the Agent or, in the case of Registered Notes issued by TCCI, the TCCI Registrar and the TCCI Transfer Agent or, in the case
of Registered Notes issued by TMCC, the TMCC Registrar and the TMCC Transfer Agent and at least 30 days’ prior notice to
the Noteholders as provided in Condition 16, elect that, with effect from the Redenomination Date specified in the notice, the
Notes shall be exchangeable for Notes expressed to be denominated in euro in accordance with such arrangements as the relevant
Issuer may decide, after consultation with the Agent or, in the case of Registered Notes issued by TCCI, the TCCI Registrar and
the TCCI Transfer Agent or, in the case of Registered Notes issued by TMCC, the TMCC Registrar and the TMCC Transfer Agent, and
as may be specified in the notice, including arrangements under which Coupons (which expression shall for this purpose include
Coupons to be issued on an exchange of matured Talons) unmatured at the date so specified become void.

 

		(3)	Amendments and Modifications

 

The applicable Final Terms in relation
to any Notes may specify other terms and conditions which shall, to the extent so specified or to the extent inconsistent with
the provisions herein, replace or modify the provisions for

 

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the purpose of such Notes. In addition,
the relevant Issuer and the Agent or, in the case of Registered Notes issued by TCCI, the TCCI Registrar and the TMCC Transfer
Agent or, in the case of Registered Notes issued by TMCC, the TMCC Registrar and the TMCC Transfer Agent may make any changes,
without the consent of, but with notification to (in accordance with Condition 16 and this Clause 30), any Noteholder or Couponholder,
to this Agreement necessary to implement the provisions of Condition 18 and this Clause 30.

 

Notwithstanding anything to the
contrary contained in this Clause 30, if the relevant Issuer determines, after consultation with the Agent or, in the case of Registered
Notes issued by TCCI, the TCCI Registrar and the TCCI Transfer Agent or, in the case of Registered Notes issued by TMCC, the TMCC
Registrar and the TMCC Transfer Agent, that the then market practice in respect of the redenomination into euro of internationally
offered securities or euro-denominated internationally offered securities is different from that specified in this Clause 30, the
relevant Issuer may (but shall not be required to) amend the provisions of this Clause 30 and any provision of the Conditions,
as applicable, so as to comply with such market practice, and the relevant Issuer shall promptly notify Noteholders, the stock
exchange (if any) on which the Notes may be listed, the Paying Agents and the Agent or, in the case of Registered Notes issued
by TCCI, the TCCI Registrar and the TCCI Transfer Agent or, in the case of Registered Notes issued by TMCC, the TMCC Registrar
and the TMCC Transfer Agent of such deemed amendments. Such changes will not take effect until after they have been notified to
Noteholders in accordance with Condition 16 and this Clause 30.

 

		31.	DEED POLL

 

		(1)	If any Global Bearer Note becomes void in accordance with its terms, the relevant Issuer covenants
with each Relevant Account Holder (other than any Relevant Account Holder which is an account holder of any other Relevant Clearing
System) that each Relevant Account Holder shall automatically acquire at the Relevant Time, without the need for any further action
on behalf of any person, against the relevant Issuer all those rights which the Relevant Account Holder would have had if at the
Relevant Time it held and beneficially owned executed and authenticated Definitive Bearer Notes in respect of each Underlying Note
(as defined in the definition of “Global Bearer Note”) represented by the Global Bearer Note which the Relevant Account
Holder has credited to its securities account with the Relevant Clearing System at the Relevant Time. The relevant Issuer’s
obligation under this Clause 31 shall be a separate and independent obligation by reference to each Underlying Note which a Relevant
Account Holder has credited to its securities account with the Relevant Clearing System and the relevant Issuer agrees that a Relevant
Account Holder may assign its rights under this Clause 31 in whole or in part.

 

		(2)	The records of the Relevant Clearing System shall be conclusive evidence of the identity of the
Relevant Account Holders and the number of Underlying Notes credited to the securities account of each Relevant Account Holder.
For these purposes a statement issued by the Relevant Clearing System stating:

 

		(a)	the name of the Relevant Account Holder to which the statement is issued; and

 

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		(b)	the aggregate nominal amount of Underlying Notes credited to the securities account of the Relevant
Account Holder as at the opening of business on the first day following the Relevant Time on which the Relevant Clearing System
is open for business,

 

shall be conclusive evidence of
the records of the Relevant Clearing System at the Relevant Time.

 

		(3)	In the event of a dispute, the determination of the Relevant Time by the Relevant Clearing System
shall (in the absence of manifest error) be final and conclusive for all purposes in connection with the Relevant Account Holders
with securities accounts with the Relevant Clearing System.

 

		(4)	The relevant Issuer undertakes in favour of each Relevant Account Holder that, in relation to any
payment to be made by it under this Clause 31, it will comply with the provisions of Condition 7 to the extent that they apply
to any payments in respect of Underlying Notes as if those provisions had been set out in full in this Clause 31.

 

		(5)	The relevant Issuer will pay any stamp and other duties and taxes, including interest and penalties,
payable on or in connection with the execution of this Agreement and any action taken by any Relevant Account Holder to enforce
the provisions of this Clause 31.

 

		(6)	This Clause 31 and Clause 34 shall take effect as a Deed Poll for the benefit of the Relevant Account
Holders from time to time. This Agreement shall be deposited with and held by the common depositary or common safekeeper, as the
case may be, for Euroclear and Clearstream, Luxembourg (being at that date of this Agreement the Agent) until all the obligations
of each Issuer under this Clause 31 have been discharged in full.

 

		(7)	Each Issuer acknowledges the right of every Relevant Account Holder to the production of, and the
right of every Relevant Account Holder to obtain (upon payment of a reasonable charge) a copy of, this Agreement, and further acknowledges
and covenants that the obligations binding upon it contained in this Clause 31 are owed to, and shall be for the account of, each
and every Relevant Account Holder, and that each Relevant Account Holder shall be entitled severally to enforce those obligations
against the relevant Issuer.

 

		32.	DESCRIPTIVE HEADINGS

 

The descriptive headings in this
Agreement are for convenience of reference only and shall not define or limit the provisions hereof.

 

		33.	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

 

Save for Clause 31, this Agreement
confers no right on a person who is not a party to this Agreement by virtue of the Contracts (Rights of Third Parties) Act 1999
to enforce any term of this Agreement, but this does not affect any right or remedy of a third party which exists or is available
apart from that Act.

 

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		34.	GOVERNING LAW

 

		(1)	This Agreement and any non-contractual obligations arising out of or in connection with this Agreement
shall be governed by, and construed in accordance with, the laws of England.

 

		(2)	Each Issuer hereby irrevocably agrees for the exclusive benefit of the Agent, the Paying Agents
and the Relevant Account Holders that the courts of England are to have jurisdiction to settle any disputes which may arise out
of or in connection with this Agreement (including a dispute relating to any non-contractual obligations arising out of or in connection
with this Agreement) and that accordingly any suit, action or proceedings (together referred to as Proceedings) arising
out of or in connection with this Agreement (including any Proceedings relating to any non-contractual obligations arising out
of or in connection with this Agreement) may be brought in such courts. Each Issuer hereby irrevocably waives any objection which
it may have to the laying of the venue of any Proceedings in any such courts and any claim that any such Proceedings have been
brought in an inconvenient forum and hereby further irrevocably agrees that a judgment in any Proceedings brought in the English
courts shall be conclusive and binding upon each Issuer and may be enforced in the courts of any other jurisdiction. Nothing contained
herein shall limit any right to take Proceedings against any Issuer in any other court of competent jurisdiction, nor shall the
taking of Proceedings in one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction, whether concurrently
or not. Each Issuer hereby appoints Toyota Financial Services (UK) PLC of Great Burgh, Burgh Heath, Epsom, Surrey KT18 5UZ as its
agent for service of process and agrees that, in the event of Toyota Financial Services (UK) PLC ceasing so to act or ceasing to
be registered in England, it will appoint another person as its agent for service of process in England in respect of any Proceedings.

 

		(3)	If TMF is represented by an attorney or attorneys in connection with the signing and/or execution
and/or delivery of this Agreement or any agreement, deed or document referred to herein or made pursuant hereto and the relevant
power or powers of attorney is or are expressed to be governed by the laws of the Netherlands, it is hereby expressly acknowledged
and accepted by the other parties hereto that such laws shall govern the existence and extent of such attorney's or attorneys'
authority and the effects of the exercise thereof.

 

		35.	COUNTERPARTS

 

This Agreement may be executed
in any number of counterparts, and by each party on separate counterparts. Each counterpart is an original, but all counterparts
shall together constitute one and the same instrument. Delivery of a counterpart of this Agreement by e-mail attachment or telecopy
shall be an effective mode of delivery.

 

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IN WITNESS WHEREOF,
TMF, TCCI, TFA and TMCC have executed this Agreement as a deed, and the Agent has executed this Agreement, as of the date first
above written.

 

The Issuers

 

	SIGNED, SEALED AND DELIVERED 	)	 
	by Hiroyasu Ito	)	HIROYASU ITO
	being a duly authorised attorney of	)	 
	TOYOTA MOTOR FINANCE	)	 
	(NETHERLANDS) B.V. with the 	)	 
	intention that this instrument takes effect	)	 
	as TMF’s deed in the presence of:	)	 

 

JORRIT VAN ELK

 

TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.

World Trade Center Amsterdam

Tower H, Level 10

Zuidplein 90

1077 XV Amsterdam

The Netherlands

 

	Telephone:	+31 20 502 5310
	Telefax:	+31 20 502 5319
	Email:	front.office@uk.toyota-fs.com 
	Attention:	Chief Executive Officer
	 	 

	SIGNED, SEALED AND DELIVERED 	)	 
	by Richard Nelson	)	RICHARD NELSON
	being a duly authorised attorney of	)	 
	TOYOTA CREDIT CANADA INC.	)	 
	with the intention that this instrument takes	)	 
	effect as TCCI’s deed in the presence of:	)	 

 

IVANA WEBB

 

TOYOTA CREDIT CANADA INC.

80 Micro Court, Suite 200

Markham

Ontario L3R 9Z5

Canada

 

	Telephone:	+1 905 513 8200
	Telefax:	+1 905 513 8335
	Attention:	President

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	SIGNED, SEALED AND DELIVERED 	)	 
	by Richard Nelson	)	RICHARD NELSON
	being a duly authorised attorney of	)	 
	TOYOTA FINANCE AUSTRALIA	)	 
	LIMITED with the intention that this	)	 
	instrument takes effect as TFA’s deed	)	 
	in the presence of:	)	 

 

IVANA WEBB

 

Signed under
Power of Attorney

dated 14 September 2018

 

TOYOTA FINANCE AUSTRALIA LIMITED

Level 9, 207 Pacific Highway

St Leonards NSW 2065

Australia

 

	Telephone:	+61 2 9430 0000
	Telefax:	+61 2 9430 0913
	Email:	treasury@toyota.com.au 
	Attention:	Treasurer 
	 	 

	SIGNED, SEALED AND DELIVERED 	)
	by the undersigned being duly	)
	authorised on behalf of	)
	TOYOTA MOTOR CREDIT	)
	CORPORATION with the intention that	)
	this instrument takes effect as TMCC’s	)
	deed	)
	 	 
	 	 

		By:	PAUL BOODÉE

 

___________________

		Name:	Paul Boodée

		Title:	General Manager – Head of Markets and Liquidity

 

TOYOTA MOTOR CREDIT CORPORATION

6565 Headquarters Drive, Mailstop W2–3D 

Plano

Texas 75024–5965 

United States

 

	Telephone:	+1 469 486 9013
	Telefax:	+1 310 381 7739
	Email:	TFS_Treasury_Operations@toyota.com
	Attention:	TFS Treasury Operations

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The Agent

 

THE BANK OF NEW YORK MELLON

acting through its London branch

One Canada Square

Canary Wharf

London E14 5AL

United Kingdom

 

	Telephone:	+44 (0) 1202 689511
	Telefax:	+44 (0) 207 964 2536
	Attention:	Corporate Trust Administration

 

	By:	ANTHONY EDET	 
	  	 	 
	Name:	Anthony Edet	 
	Title:	Authorised Signatory	 

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Appendix A

TERMS AND CONDITIONS OF THE NOTES

 

This Note is one of a Series (as defined
below) of Notes issued subject to, and with the benefit of, an amended and restated agency agreement dated 14 September 2018
(the “Agency Agreement”) and made between Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc.,
Toyota Finance Australia Limited and Toyota Motor Credit Corporation as Issuers and The Bank of New York Mellon, acting through
its London branch, as the issuing agent and (unless specified otherwise in the applicable Final Terms) principal paying agent and
(unless specified otherwise in the applicable Final Terms) as calculation agent (the “Agent”, which expression
shall include any successor agent or other Calculation Agent specified in the applicable Final Terms and the “Paying Agent”,
which expression shall include any additional or successor paying agents). Notes in registered form (“Registered Notes”)
issued by Toyota Credit Canada Inc. are also issued subject to, and with the benefit of, an amended and restated note agency agreement
dated 8 September 2017 (the “TCCI Note Agency Agreement”) and made between Toyota Credit Canada Inc. as
Issuer, BNY Trust Company of Canada as registrar, paying agent and transfer agent and, in respect of Registered Notes settled or
clearing in Euroclear and/or Clearstream, Luxembourg (each as defined below), The Bank of New York Mellon SA/NV, Luxembourg Branch
as registrar and transfer agent (each a “TCCI Registrar”, which expression shall include any successor registrar,
paying agent and transfer agent) and The Bank of New York Mellon, acting through its London branch, as transfer agent and paying
agent (the “TCCI Transfer Agent”, which expression shall include any additional or successor transfer agent
or paying agent appointed for Registered Notes issued by Toyota Credit Canada Inc.). Registered Notes issued by Toyota Motor Credit
Corporation are also issued subject to, and with the benefit of, an amended and restated note agency agreement dated 8 September
2017 (the “TMCC Note Agency Agreement”) and made between Toyota Motor Credit Corporation as Issuer, The Bank
of New York Mellon SA/NV, Luxembourg Branch as registrar and transfer agent (the “TMCC Registrar”, which expression
shall include any successor registrar and transfer agent) and The Bank of New York Mellon, acting through its London branch, as
transfer agent and paying agent (the “TMCC Transfer Agent”, which expression shall include any additional or
successor transfer agent or paying agent appointed for Registered Notes issued by Toyota Motor Credit Corporation).

 

References in these Terms and Conditions
to the “Issuer” shall be references to the party specified in the applicable Final Terms (as defined below).
References herein to the “Notes” shall be references to the Notes of this Series (as defined below) and shall
mean (i) in relation to any Notes represented by a global Note, units of the lowest Specified Denomination (as defined below) in
the Specified Currency (as defined below) of the relevant Notes, (ii) definitive Notes issued in exchange (or part exchange) for
a temporary global Note, a permanent global Note or a global Registered Note and (iii) any global Note.

 

Interest bearing definitive Notes in bearer
form will (unless otherwise indicated in the applicable Final Terms) have interest coupons (“Coupons”) and,
if indicated in the applicable Final Terms, talons for further Coupons (“Talons”) attached on issue. Any reference
herein to Coupons or coupons shall, unless the context otherwise requires, be deemed to include a reference to Talons. Global Notes
do not have Coupons or Talons attached on issue.

 

The Notes and the Coupons have the benefit
of certain Credit Support Agreements governed by Japanese law, one between Toyota Motor Corporation (the “Parent”)
and Toyota Financial Services Corporation (“TFS”) dated 14 July 2000 as supplemented by a Supplemental Credit
Support Agreement dated 14 July 2000 and a Supplemental Credit Support Agreement No. 2 dated 2 October 2000 (collectively, the
“TMC Credit Support Agreement”) and others between TFS and each of Toyota Motor Finance (Netherlands) B.V.,
Toyota Credit Canada Inc. and Toyota Finance Australia Limited dated 7 August 2000 and Toyota Motor Credit Corporation dated 1
October 2000 (each a “Credit Support Agreement” and together with the TMC Credit Support Agreement, the “Credit
Support Agreements”). The Credit Support Agreements do not constitute a direct or

 

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indirect guarantee by the Parent or TFS
of the Notes. The Parent’s obligations under its Credit Support Agreement and the obligations of TFS under its Credit Support
Agreements, rank pari passu with its direct, unconditional, unsubordinated and unsecured debt obligations.

 

The Final Terms applicable to the Notes
are attached to or endorsed on the Notes and supplement these Terms and Conditions. References herein to the “applicable
Final Terms” shall mean the Final Terms attached to or endorsed on the Notes.

 

As used herein, “Series”
means each original issue of Notes together with any further issues expressed to form a single series with the original issue and
the terms of which (save for the Issue Date, the amount and the date of the first payment of interest thereon and/or the Issue
Price (as indicated in the applicable Final Terms)) are identical (including the Maturity Date, Interest Basis, Redemption/Payment
Basis and Interest Payment Dates (if any) and whether or not the Notes are admitted to trading) and expressions “Notes
of the relevant Series” and related expressions shall be construed accordingly. As used herein, “Tranche”
means all Notes of the same Series with the same Issue Date and Interest Commencement Date (if applicable).

 

Copies of the Agency Agreement (which contains
the form of the Final Terms), the Credit Support Agreements and (if the Notes are offered to the public in a Member State of the
European Economic Area or admitted to trading on a regulated market within the meaning of the Prospectus Directive 2003/71/EC (as
amended, including by Directive 2010/73/EU, and includes any relevant implementing measure (for the purpose of these Terms and
Conditions and the applicable Final Terms) in the relevant Member State) the “Prospectus Directive”) the Final
Terms applicable to the Notes are available free of charge and available for inspection at the specified offices of the Agent.
If the Notes are to be admitted to trading on the regulated market of the London Stock Exchange or offered to the public in a Member
State of the European Economic Area in circumstances not within an exemption from the requirement to publish a prospectus under
the Prospectus Directive, the applicable Final Terms will be published on the website of the London Stock Exchange through a regulatory
news service. Copies of the TCCI Note Agency Agreement (if the Notes are Registered Notes issued by Toyota Credit Canada Inc.)
are available free of charge and available for inspection by the holders of Registered Notes issued by Toyota Credit Canada Inc.
at the specified offices of the TCCI Registrar and the TCCI Transfer Agent. Copies of the TMCC Note Agency Agreement (if the Notes
are Registered Notes issued by Toyota Motor Credit Corporation) are available free of charge and available for inspection by the
holders of Registered Notes issued by Toyota Motor Credit Corporation at the specified offices of the TMCC Registrar and the TMCC
Transfer Agent. The holders of the Notes (the “Noteholders”), which expression shall, in relation to any Notes
represented by a global Note, be construed as provided in Condition 1, and the holders of the Coupons (the “Couponholders”)
are deemed to have notice of the Agency Agreement and the applicable Final Terms, which are binding on them. The holders of Registered
Notes issued by Toyota Credit Canada Inc. are deemed to have notice of the TCCI Note Agency Agreement, which is binding on them
and the holders of Registered Notes issued by Toyota Motor Credit Corporation are deemed to have notice of the TMCC Note Agency
Agreement, which is binding on them.

 

Words and expressions defined in the Agency
Agreement or (if the Note is a Registered Note issued by Toyota Credit Canada Inc.) in the TCCI Note Agency Agreement or (if the
Note is a Registered Note issued by Toyota Motor Credit Corporation) in the TMCC Note Agency Agreement or used in the applicable
Final Terms shall have the same meanings where used in these Terms and Conditions unless the context otherwise requires or unless
otherwise stated. In the event of inconsistency between the Agency Agreement, (if the Note is a Registered Note issued by Toyota
Credit Canada Inc.) the TCCI Note Agency Agreement, (if the Note is a Registered Note issued by Toyota Motor Credit Corporation)
the TMCC Note Agency Agreement or the applicable Final Terms, the applicable Final Terms will prevail.

 

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		1.	Form, Denomination and Title 

 

The Notes may be issued in bearer form
(“Bearer Notes”) or, in respect of Notes issued by Toyota Credit Canada Inc. or Toyota Motor Credit Corporation,
in bearer or registered form as set out in the applicable Final Terms and, in the case of definitive Bearer Notes, serially numbered,
in the currency (“Specified Currency”) and in the denominations (“Specified Denomination(s)”),
as specified in the applicable Final Terms.

 

Bearer Notes may not be exchanged for Registered
Notes and vice versa.

 

The Note may be a Note bearing interest
on a fixed rate basis (“Fixed Rate Note”), a Note bearing interest on a floating rate basis (“Floating
Rate Note”), a Note issued on a non-interest bearing basis (“Zero Coupon Note”) or any combination
of the foregoing, depending upon the interest basis specified in the applicable Final Terms.

 

Bearer Notes in definitive form are issued
with Coupons attached, unless they are Zero Coupon Notes in which case references to interest (other than interest due after the
Maturity Date), Coupons and Couponholders in these Terms and Conditions are not applicable.

 

Subject as set out below, title to Bearer
Notes and Coupons will pass by delivery. The holder of each Coupon whether or not such Coupon is attached to a Note, in his capacity
as such, shall be subject to and bound by all the provisions contained in the relevant Note. Subject as set out below, the Issuer
and any Paying Agent may deem and treat the bearer of any Bearer Note or Coupon as the absolute owner thereof (whether or not overdue
and notwithstanding any notice to the contrary, including any notice of ownership or writing thereon or notice of any previous
loss or theft thereof) for all purposes but, in the case of any global Bearer Note, without prejudice to the provisions set out
in the next succeeding paragraph.

 

For so long as any of the Notes is represented
by a global Note, each person who is for the time being shown in the records of Euroclear Bank SA/NV (“Euroclear”)
or of Clearstream Banking S.A. (“Clearstream, Luxembourg”) or any other agreed clearing system as the holder
of a particular nominal amount of such Notes (other than a clearing agency (including Euroclear and Clearstream, Luxembourg) that
is itself an account holder of Euroclear or Clearstream, Luxembourg or any other agreed clearing system (in which regard any certificate
or other document issued by Euroclear or Clearstream, Luxembourg or any other agreed clearing system as to the nominal amount of
Notes standing to the account of any person shall be conclusive and binding for all purposes save in the case of manifest error
or proven error)) shall be treated by the Issuer, the Agent and any other Paying Agent or (in the case of Registered Notes issued
by Toyota Credit Canada Inc.) the TCCI Registrar and the TCCI Transfer Agent or (in the case of Registered Notes issued by Toyota
Motor Credit Corporation) the TMCC Registrar and the TMCC Transfer Agent as the holder of such nominal amount of such Notes for
all purposes other than with respect to the payment of principal (including premium (if any)) or interest on the Notes, for which
purpose the bearer of the relevant global Bearer Note or registered holder of the global Registered Note shall be treated by the
Issuer, the Agent and any other Paying Agent as the holder of such Notes in accordance with and subject to the terms of the relevant
global Note (and the expressions “Noteholder” and “holder of Notes” and related expressions
shall be construed accordingly). Notes which are represented by a global Note will be transferable only in accordance with the
rules and procedures for the time being of Euroclear or of Clearstream, Luxembourg, as the case may be.

 

Title to Registered Notes issued by Toyota
Credit Canada Inc. passes on due endorsement in the central register (“TCCI Register”) which Toyota Credit Canada
Inc. shall procure to be kept by the BNY Trust Company of Canada. Toyota Credit Canada Inc. shall procure a branch register to
be kept by The Bank of New York Mellon SA/NV, Luxembourg Branch in respect of Registered Notes settled or clearing in Euroclear
or Clearstream, Luxembourg. Title to Registered Notes issued by Toyota Motor Credit Corporation passes on due endorsement in the
relevant register

 

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(“TMCC Register”) which
Toyota Motor Credit Corporation shall procure to be kept by the TMCC Registrar. Subject as set out above, except as ordered by
a court of competent jurisdiction or as required by law, the registered holder of any Registered Note shall be deemed to be and
may be treated as the absolute owner of such Registered Note for all purposes, whether or not such Registered Note shall be overdue
and notwithstanding any notice of ownership, theft or loss thereof or any writing thereon made by anyone and no person shall be
liable for so treating such registered holder (and the expressions “Noteholder” and “holder of Notes”
and related expressions shall be construed accordingly).

 

Provisions relating to the transfer of
Registered Notes issued by Toyota Credit Canada Inc. are set out in the relevant Registered Note and the TCCI Note Agency Agreement.
Provisions relating to the transfer of Registered Notes issued by Toyota Motor Credit Corporation are set out in the relevant Registered
Note and the TMCC Note Agency Agreement.

 

Any reference herein to Euroclear and/or
Clearstream, Luxembourg shall, whenever the context so permits, except in relation to Bearer Notes in new global note (“NGN”)
form or Registered Notes intended to be held in a manner which would allow Eurosystem eligibility (being the new safekeeping structure
(“NSS”) and hereinafter referred to as “held under the NSS”), be deemed to include a reference
to any additional or alternative clearing system specified in Part B of the applicable Final Terms.

 

If the Specified Currency of the Note is
a currency of one of the Member States of the European Union which has not adopted the euro, and if specified in the applicable
Final Terms, the Note shall permit redenomination and exchange (as referred to in Condition 18 below or in such other manner as
set forth in the applicable Final Terms) at the option of the Issuer.

 

		2.	Status of the Notes and the Credit Support Agreements 

 

The Notes and any relative Coupons are
direct, unconditional, unsubordinated and (subject to the provisions of Condition 3) unsecured obligations of the Issuer and rank
pari passu and rateably without any preference among themselves and (save for certain obligations required to be preferred
by law) equally with all other unsecured obligations (other than subordinated obligations, if any) of the Issuer from time to time
outstanding. The Notes and the Coupons have the benefit of the Credit Support Agreements.

 

		3.	Negative Pledge 

 

The Notes will be subject to this Condition
3 only if this Condition 3 is specified to be applicable in the applicable Final Terms. So long as
any of the Notes remains outstanding (as defined in Condition 15) the Issuer will not create or permit to be outstanding any mortgage,
pledge, lien, security interest or other charge (each a “Security Interest”) (other than a Permitted Security
Interest (as defined below)) for the benefit of the holders of any Relevant Indebtedness (as defined below) on the whole or any
part of its property or assets, present or future, to secure any Relevant Indebtedness issued or expressly guaranteed by the Issuer
or in respect of which the Issuer has given any indemnity without in any such case at the same time according to the Notes the
same security as is granted or is outstanding in respect of such Relevant Indebtedness or such guarantee or indemnity or such other
security as shall be approved by the written consent of holders of a majority in aggregate nominal amount of the Notes then
outstanding affected thereby, or by resolution adopted by the holders of a majority in aggregate nominal amount of the Notes then
outstanding present or represented at a meeting of the holders of the Notes affected thereby at which a quorum is present, as provided
in the Agency Agreement; provided, however, that such covenant will not apply to Security Interests
securing outstanding Relevant Indebtedness which does not in the aggregate at any one time exceed 20 per cent. of Consolidated
Net Tangible Assets (as defined below) of the Issuer and its consolidated subsidiaries (if any). For the purposes of this Condition
3: 

 

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“Consolidated Net Tangible Assets”
means the aggregate amount of assets (less applicable reserves and other properly deductible items) after deducting therefrom all
goodwill, trade names, trademarks, patents, unamortised debt discount and expense and other like intangibles of the Issuer and
its consolidated subsidiaries (or, where the Issuer has no consolidated subsidiaries, of the Issuer), all as set forth on the most
recent balance sheet of the Issuer and its consolidated subsidiaries (or, where the Issuer has no consolidated subsidiaries, the
most recent balance sheet of the Issuer) prepared in accordance with generally accepted accounting principles as practised in the
jurisdiction of the Issuer’s incorporation;

 

“Relevant Indebtedness”
shall mean any indebtedness in the form of or represented by bonds, notes, debentures or other securities which have a final maturity
of more than a year from the date of their creation and which are admitted to trading on one or more stock exchanges;

 

“Permitted Security Interest”
shall mean:

 

		(i)	any Security Interest arising by operation of law or any
right of set-off;

 

		(ii)	any Security Interest granted by the Parent in favour of a TMC subsidiary (as defined below) (while
such beneficiary remains a TMC subsidiary) or by one TMC subsidiary in favour of another TMC subsidiary (while such beneficiary
remains a TMC subsidiary);

 

		(iii)	any Security Interest created in connection with, or pursuant to, a limited-recourse financing,
securitisation or other like arrangement where the payment obligations in respect of the indebtedness secured by the relevant Security
Interest are to be discharged from the revenues generated by assets over which such Security Interest is created (including, without
limitation, receivables),

 

and (in addition to (i), (ii) and (iii)
above) where the Issuer is Toyota Finance Australia Limited, any Security Interest provided
for by one of the following transactions if the transaction does not secure payment or performance of an obligation:

 

		(A)	a transfer of an account or chattel paper;

 

		(B)	a commercial consignment; or

 

		(C)	a PPS lease,

 

where “account”, “chattel
paper”, “commercial consignment” and “PPS lease” have the same meanings given to
them in the Personal Property Securities Act 2009 of Australia; and

 

“TMC subsidiary”
means any of the Parent’s subsidiaries consolidated in accordance with generally accepted accounting principles in the United
States.

 

		4.	Interest

 

		(a)	Interest on Fixed Rate Notes and Business Day Convention for Notes other than Floating Rate
Notes 

 

Each Fixed Rate Note bears interest from
(and including) the Interest Commencement Date which is specified in the applicable Final Terms (or the Issue Date, if no Interest
Commencement Date is separately specified) to (but excluding) the Maturity Date specified in the applicable Final Terms at the
rate(s) per annum equal to the Fixed Rate(s) of Interest so specified payable in arrear on the Interest Payment Date(s) in each
year and on the Maturity Date so specified if it does not fall on an Interest Payment Date.

 

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If the Notes are in definitive form, except
as provided in the applicable Final Terms, or if the applicable Final Terms specify that a Fixed Coupon Amount or Broken Amount(s)
shall apply in the case of Notes represented by a global Note, the amount of interest payable on each Interest Payment Date in
respect of the Fixed Interest Period ending on (but excluding) such date will amount to the Fixed Coupon Amount as specified in
the applicable Final Terms. Payments of interest on any Interest Payment Date will, if so specified in the applicable Final Terms,
amount to the Broken Amount(s) so specified.

 

As used in these Terms and Conditions,
“Fixed Interest Period” means the period from (and including) an Interest Payment Date (or the Interest Commencement
Date or the Issue Date, as the case may be) to (but excluding) the next (or first) Interest Payment Date or Maturity Date.

 

Unless specified otherwise in the applicable
Final Terms, the “Following Business Day Convention” will apply to the payment of all Fixed Rate Notes, meaning
that if the Interest Payment Date or Maturity Date would otherwise fall on a day which is not a Business Day (as defined in Condition
4(b)(i) below), the related payment of principal or interest will be made on the next succeeding Business Day as if made on
the date such payment was due. If the “Modified Following Business Day Convention” is specified in the applicable
Final Terms for any Fixed Rate Note, it shall mean that if the Interest Payment Date or Maturity Date would otherwise fall on a
day which is not a Business Day (as defined in Condition 4(b)(i) below), the related payment of principal or interest will be made
on the next succeeding Business Day as if made on the date such payment was due unless it would thereby fall into the next calendar
month in which event the full amount of payment shall be made on the immediately preceding Business Day as if made on the day such
payment was due. Unless specified otherwise in the applicable Final Terms, the amount of interest due shall not be changed if payment
is made on a day other than an Interest Payment Date or the Maturity Date as a result of the application of a Business Day Convention
specified above or other Business Day Convention specified in the applicable Final Terms.

 

Except in the case of (i) Notes in definitive
form where a Fixed Coupon Amount or a Broken Amount is specified in the applicable Final Terms or (ii) Notes represented by a global
Note where the applicable Final Terms specify that a Fixed Coupon Amount or Broken Amount(s) shall apply, interest shall be calculated
in respect of any period (including any period ending other than on an Interest Payment Date (which for this purpose shall not
include a period where a payment is made on a day other than an Interest Payment Date or the Maturity Date as a result of the application
of a Business Day Convention as provided in the immediately preceding paragraph, unless specified otherwise in the applicable Final
Terms)) by applying the Fixed Rate of Interest to:

 

		(A)	in the case of Fixed Rate Notes which are represented by a global Note, the aggregate outstanding
nominal amount of the Fixed Rate Notes represented by such global Note; or

 

		(B)	in the case of Fixed Rate Notes in definitive form, the Calculation Amount,

 

and, in each case, multiplying such sum
by the applicable Fixed Day Count Fraction or Day Count Fraction as specified in the applicable Final Terms, and rounding the resultant
figure to the nearest sub-unit of the relevant Specified Currency, half of any such sub-unit being rounded upwards or otherwise
in accordance with applicable market convention. Where the Specified Denomination of a Fixed Rate Note in definitive form is a
multiple of the Calculation Amount, the amount of interest payable in respect of such Fixed Rate Note shall be the product of the
amount (determined in the manner provided above) for the Calculation Amount and the amount by which the Calculation Amount is multiplied
to reach the Specified Denomination, without any further rounding.

 

In these Terms and Conditions, “Fixed
Day Count Fraction” means:

 

		(i)	if “Actual/Actual (ICMA)” is specified in the applicable Final Terms:

 

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		(A)	in the case of Notes where the number of days in the relevant period from (and including) the most
recent Interest Payment Date (or, if none, the Interest Commencement Date or Issue Date, as applicable) to (but excluding) the
relevant payment date (the “Accrual Period”) is equal to or shorter than the Determination Period (as defined
below) during which the Accrual Period ends, the number of days in such Accrual Period divided by the product of (1) the number
of days in such Determination Period and (2) the number of Determination Dates (as specified in the applicable Final Terms) that
would occur in one calendar year assuming interest was to be payable in respect of the whole of that year; or

 

		(B)	in the case of Notes where the Accrual Period is longer than the Determination
Period during which the Accrual Period ends, the sum of:

 

		(1)	the number of days in such Accrual Period falling in the Determination
Period in which the Accrual Period begins divided by the product of (x) the number of days
in such Determination Period and (y) the number of Determination Dates (as specified in the applicable Final Terms) that would
occur in one calendar year assuming interest was to be payable in respect of the whole of that year; and 

 

		(2)	the number of days in such Accrual Period falling in the next Determination Period divided by the
product of (x) the number of days in such Determination Period and (y) the number of Determination Dates (as specified in the applicable
Final Terms) that would occur in one calendar year assuming interest was to be payable in respect of the whole of that year;

 

		(ii)	if “Actual/Actual (ISDA)” is specified in the applicable Final Terms, the actual
number of days in the relevant period from (and including) the most recent Interest Payment Date (or, if none, the Interest Commencement
Date or Issue Date, as applicable) to (but excluding) the next scheduled Interest Payment Date divided by 365 (or, if any portion
of that period falls in a leap year, the sum of (x) the actual number of days in that portion of the period falling in a leap
year divided by 366; and (y) the actual number of days in that portion of the period falling in a non-leap year divided by
365);

 

		(iii)	if “30/360” is specified in the applicable Final
Terms, the number of days in the relevant period from (and including) the most recent Interest
Payment Date (or, if none, the Interest Commencement Date or Issue Date, as applicable) to (but excluding) the next scheduled Interest
Payment Date (such number of days being calculated on the basis of a year of 360 days with 12 30-day months) divided by 360 and,
in the case of an incomplete month, the number of days elapsed; 

 

		(iv)	if “Actual/360” is specified in the applicable Final Terms, the actual number
of days in the relevant period from (and including) the most recent Interest Payment Date (or, if none, the Interest Commencement
Date or Issue Date, as applicable) to (but excluding) the next scheduled Interest Payment Date divided by 360;

 

		(v)	if “Actual/Actual Canadian Compound Method” is specified in the applicable Final
Terms, whenever it is necessary to compute any amount of accrued interest in respect of the Notes for a period of less than one
full year, other than in respect of any Fixed Coupon Amount or Broken Amount, such interest will be calculated on the basis of
the actual number of days in the period and a year of 365 days; and

 

		(vi)	if “Actual/365 (Fixed)” is specified in the applicable Final Terms, the actual
number of days in the Fixed Interest Period divided by 365.

 

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In these Terms and Conditions:

 

“Determination Period”
means the period from (and including) a Determination Date (as specified in the applicable Final Terms) to (but excluding) the
next Determination Date (including, where either the Interest Commencement Date or the final Interest Payment Date is not a Determination
Date, the period commencing on the first Determination Date prior to, and ending on the first Determination Date falling after,
such date); and

 

“sub-unit” means, with
respect to any currency other than euro, the lowest amount of such currency that is available as legal tender in the country of
such currency and, with respect to euro, means one cent.

 

		(b)	Interest on Floating Rate Notes

 

		(i)	Interest Payment Dates

 

Each Floating Rate Note bears interest
from (and including) the Interest Commencement Date specified in the applicable Final Terms (or the Issue Date, if no Interest
Commencement Date is separately specified) and, unless specified otherwise in the applicable Final Terms, at the rate equal to
the Rate of Interest payable in arrear on the Maturity Date and on either: (1) the Specified Interest Payment Date(s) (each, together
with the Maturity Date, an “Interest Payment Date”) in each year specified in the applicable Final Terms; or
(2) if no Specified Interest Payment Date(s) is/are specified in the applicable Final Terms, each date (each such date, together
with the Maturity Date, an “Interest Payment Date”) which falls the number of months or other period specified
as the Specified Period in the applicable Final Terms after the preceding Interest Payment Date or, in the case of the first Interest
Payment Date, after the Interest Commencement Date or Issue Date, as applicable. Such interest will be payable in respect of each
Interest Period. As used in these Terms and Conditions, “Interest Period” means the period from (and including)
an Interest Payment Date (or the Interest Commencement Date or Issue Date, as applicable) to (but excluding) the next (or first)
Interest Payment Date.

 

If a Business Day Convention is specified
in the applicable Final Terms and (x) if there is no numerically corresponding day in the calendar month in which an Interest Payment
Date should occur or (y) if any Interest Payment Date would otherwise fall on a day which is not a Business Day (as defined below),
then, if the Business Day Convention specified is:

 

		(A)	in any case where Specified Periods are specified in accordance with Condition 4(b)(i)(2) above,
the Floating Rate Convention, such Interest Payment Date (i) in the case of (x) above, shall be the last day that is a Business
Day in the relevant month and the provisions of (2) below in this sub-paragraph (A) shall apply mutatis mutandis or (ii)
in the case of (y) above, shall be postponed to the next day which is a Business Day unless it would thereby fall into the next
calendar month, in which event (1) such Interest Payment Date shall be brought forward to the immediately preceding Business Day
and (2) each subsequent Interest Payment Date shall be the last Business Day in the month which falls in the Specified Period after
the preceding applicable Interest Payment Date occurred; or

 

		(B)	the Following Business Day Convention, such Interest Payment Date shall be postponed to the next
day which is a Business Day; or

 

		(C)	the Modified Following Business Day Convention, such Interest Payment
Date shall be postponed to the next day which is a Business Day unless it would thereby fall
into the next calendar month, in which event such Interest Payment Date shall be brought forward to the immediately preceding Business
Day; or 

 

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		(D)	the Preceding Business Day Convention, such Interest Payment Date
shall be brought forward to the immediately preceding Business Day. 

 

In these Terms and Conditions,
“Business Day” means (unless otherwise stated in the applicable Final Terms) a day which is both:

 

		(1)	a day on which commercial banks and foreign exchange markets settle payments and are open for general
business (including dealing in foreign exchange and foreign currency deposits) in London and any other Additional Business Centre
specified in the applicable Final Terms; and

 

		(2)	(i) in relation to any sum payable in a Specified Currency other than euro and Renminbi, a day
on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealings in
foreign exchange and foreign currency deposits) in the principal financial centre of the country of the relevant Specified Currency
(which, if the Specified Currency is Australian dollars or New Zealand dollars, shall be Sydney or Auckland, respectively), (ii)
in relation to any sum payable in euro, a day on which the TARGET2 System is open or (iii) in relation to any sum payable in Renminbi,
a day on which commercial banks and foreign exchange markets are open for business and settlement of Renminbi payments in Hong
Kong or such RMB Settlement Centre(s) as may be specified in the applicable Final Terms. Unless otherwise provided in the applicable
Final Terms, the principal financial centre of any country for the purpose of these Terms and Conditions shall be as provided in
the 2006 ISDA Definitions (as published by the International Swaps and Derivatives Association, Inc.) as supplemented, amended
and updated as of the first Issue Date of the Notes of the relevant Series (the “ISDA Definitions”) (except
if the Specified Currency is Australian dollars or New Zealand dollars the principal financial centre shall be Sydney or Auckland,
respectively). In these Terms and Conditions, “TARGET2 System” means the Trans-European Automated Real-Time
Gross Settlement Express Transfer (TARGET2) System or any successor thereto.

 

(ii)       Rate
of Interest 

 

The Rate of Interest payable from time
to time in respect of the Floating Rate Notes will be determined in the manner specified in the applicable Final Terms.

 

Unless otherwise stated in the applicable
Final Terms, the Minimum Rate of Interest shall be deemed to be zero.

 

(iii)       ISDA
Determination

 

(A)       Where
ISDA Determination is specified in the applicable Final Terms as the manner in which the Rate of Interest is to be determined,
the Rate of Interest for each Interest Period will be the relevant ISDA Rate plus or minus (as indicated in the applicable Final
Terms) the Margin (if any) as determined by the Agent (or such other Calculation Agent specified in the applicable Final Terms).
For the purposes of this Condition 4(b)(iii) unless specified otherwise in the applicable Final Terms, “ISDA Rate plus
or minus (as indicated in the applicable Final Terms) the Margin (if any)” for an Interest Period means a rate equal
to the Floating Rate that would be determined under an interest rate swap transaction under the terms of an agreement (regardless
of any event of default or termination event thereunder) incorporating the ISDA Definitions with the holder of the relevant Note
and under which:

 

		(1)	the manner in which the Rate of Interest is to be determined is the “Floating Rate Option”
as specified in the applicable Final Terms;

 

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		(2)	the Issuer is the “Floating
Rate Payer”;

 

		(3)	the Agent or other person specified
in the applicable Final Terms is the “Calculation Agent”;

 

		(4)	the Interest Commencement Date
is the “Effective Date”;

 

		(5)	the Aggregate Nominal Amount of
Notes is the “Notional Amount”;

 

		(6)	the relevant Interest Period is
the “Designated Maturity” as specified in the applicable Final Terms; 

 

		(7)	the Interest Payment Dates are
the “Floating Rate Payer Payment Dates”;

 

		(8)	the Margin is the “Spread”;
and

 

		(9)	the relevant Reset Date is the day specified in the applicable Final Terms.

 

(B)       When
Condition 4(b)(iii)(A) applies, unless specified otherwise in the applicable Final Terms with respect to each relevant Interest
Payment Date:

 

		(1)	the amount of interest determined
for such Interest Payment Date shall be the Interest Amount for the relevant Interest Period for the purposes of these Terms and
Conditions as though calculated under Condition 4(b)(vi) below; and

 

		(2)	(i) ”Floating Rate”, “Floating Rate
Option”, “Floating Rate Payer”, “Effective Date”, “Notional Amount”,
“Floating Rate Payer Payment Dates”, “Spread”, “Calculation Agent”, “Designated
Maturity” and “Reset Date” have the meanings given to those terms in the ISDA Definitions; and (ii)
“Euro-zone” means the region comprised of Member States of the European
Union that adopt the single currency in accordance with the Treaty on the Functioning of the European Union, as amended.

 

		(iv)	Screen Rate Determination 

 

Where Screen Rate Determination is specified
in the applicable Final Terms as the manner in which the Rate of Interest is to be determined, the Rate of Interest for each Interest
Period will, subject as provided below, be either:

 

		(x)	the rate or offered quotation (if there is only one rate or
offered quotation on the Relevant Screen Page); or

 

		(y)	the arithmetic mean (rounded, if necessary, to the fifth decimal
place with 0.000005 being rounded upwards) of the rates or offered quotations,

 

(expressed as a percentage rate per annum),
for the Reference Rate (as specified in the applicable Final Terms) for deposits in the Specified Currency for that Interest Period
which appears or appear, as the case may be, on the Relevant Screen Page (or such replacement page on that service which displays
the information) (as specified in the applicable Final Terms) as at the Specified Time (as specified in the applicable Final Terms)
on the Interest Determination Date (as defined below) in question plus or minus (as specified in the applicable Final Terms) the
Margin (if any), all as determined by the Agent (or such other Calculation Agent specified in the applicable Final Terms). Unless
specified otherwise in the applicable Final Terms, if, in the case of (y) above, five or more of such rates or offered quotations
are available on the Relevant Screen Page, the highest (or, if there is more than one such highest rate or offered quotation, one
only of such rates or offered quotations) and the lowest (or, if there is more than one such lowest rate or offered quotation,
one only of such rates or offered quotations) shall be disregarded by the Agent (or such

 

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other Calculation Agent specified in the
applicable Final Terms) for the purpose of determining the arithmetic mean (rounded as provided above) of such rates or offered
quotations. In addition:

 

(A)       if,
in the case of (x) above, no such rate or offered quotation appears or, in the case of (y) above, fewer than two of such
rates or offered quotations appear at such time or if the offered rate or rates which appears or appear, as the case may be, as
at such time do not apply to a period of a duration equal to the relevant Interest Period, the Rate of Interest for such Interest
Period shall, subject as provided below and except as otherwise indicated in the applicable Final Terms, be the arithmetic mean
(rounded, if necessary, to the fifth decimal place with 0.000005 being rounded upwards) of the bid rates or offered quotations
(expressed as a percentage rate per annum), of which the Agent (or such other Calculation Agent specified in the applicable Final
Terms) is advised by or as is accepted by all Reference Banks (as defined below) as at the Specified Time on the Interest Determination
Date for a period of the Interest Period and in an amount that is representative for a single transaction in the relevant market
at the relevant time, if applicable, plus or minus (as specified in the applicable Final Terms) the Margin (if any), all as determined
by the Agent (or such other Calculation Agent specified in the applicable Final Terms);

 

(B)       if
on any Interest Determination Date to which Condition 4(b)(iv)(A) applies two or three only of the Reference Banks advise the Agent
(or such other Calculation Agent specified in the applicable Final Terms) of such bid rates or offered quotations, the Rate of
Interest for the next Interest Period shall, subject as provided below, be determined as in Condition 4(b)(iv)(A) on the basis
of the rates or offered quotations of those Reference Banks advising or accepting such bid rates or offered quotations;

 

(C)       if
on any Interest Determination Date to which Condition 4(b)(iv)(A) applies one only or none of the Reference Banks advises the Agent
(or such other Calculation Agent specified in the applicable Final Terms) of such rates or offered quotations, the Rate of Interest
for the next Interest Period shall, subject as provided below and except as otherwise indicated in the applicable Final Terms,
be whichever is the higher of:

 

		(1)	the Rate of Interest in effect for the last preceding Interest
Period to which Condition 4(b)(iv)(A) shall have applied (plus or minus (as specified in the applicable Final Terms), where
a different Margin is to be applied to the next Interest Period than that which applied to the last preceding Interest Period,
the Margin relating to the next Interest Period in place of the Margin relating to the last preceding Interest Period); or

 

		(2)	the reserve interest rate (the “Reserve Interest Rate”)
which shall be the rate per annum which the Agent (or such other Calculation Agent specified in the applicable Final Terms) determines
to be either:

 

		(x)	the arithmetic mean (rounded, if necessary, to the fifth decimal place with 0.000005 being rounded
upwards) of the lending rates for the Specified Currency which banks selected by the Agent (or such other Calculation Agent specified
in the applicable Final Terms) in the principal financial centre of the country of the Specified Currency (which, if Australian
dollars, shall be Sydney, if New Zealand dollars, shall be Auckland and if euro, shall be London, unless specified otherwise in
the applicable Final Terms) are quoting on the relevant Interest Determination Date for the next Interest Period to the Reference
Banks or those of them (being at least two in number) to which such quotations are, in the opinion of the Agent (or such other
Calculation Agent specified in the applicable Final Terms), being so made plus or minus (as specified in the applicable Final Terms)
the Margin (if any); or

 

		(y)	in the event that the Agent (or such other Calculation Agent specified in the applicable Final
Terms) can determine no such arithmetic mean (in accordance

 

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with (x) above), the lowest
lending rate for the Specified Currency which banks selected by the Agent (or such other Calculation Agent specified in the applicable
Final Terms) in the principal financial centre of the country of the Specified Currency (which, if Australian dollars, shall be
Sydney, if New Zealand dollars, shall be Auckland and if euro, shall be London, unless specified otherwise in the applicable Final
Terms) are quoting on such Interest Determination Date to leading European banks for the next Interest Period plus or minus (as
specified in the applicable Final Terms) the Margin (if any), provided that if the banks selected as aforesaid by the Agent (or
such other Calculation Agent specified in the applicable Final Terms) are not quoting as mentioned above, the Rate of Interest
shall be the Rate of Interest specified in (1) above;

 

(D)       the
expression “Reference Rate” means LIBOR, EURIBOR or CAD-BA-CDOR as specified in the Final Terms and the expression
“Relevant Screen Page” means such page, whatever its designation, on which the Reference Rate that is for the
time being displayed on the Reuters Monitor Money Rates Service or Dow Jones Market Limited or other such service, as specified
in the applicable Final Terms;

 

(E)       “Reference
Banks” means, in the case where the Reference Rate is LIBOR, the principal London office of four major banks in the London
inter-bank market; in the case where the Reference Rate is EURIBOR, the principal Euro-zone office of four major banks in the Euro-zone
inter-bank market; and in the case where the Reference Rate is CAD-BA-CDOR, the principal Toronto office of four major Canadian
chartered banks listed in Schedule I to the Bank Act (Canada);

 

(F)       the
expression “Interest Determination Date” means, unless otherwise specified in the applicable Final Terms, (x) other
than in the case of Condition 4(b)(iv)(A), with respect to Notes denominated in any Specified Currency other than Sterling,
Canadian dollars or euro, the second Banking Day in London prior to the commencement of the relevant Interest Period and, in the
case of Condition 4(b)(iv)(A), the second Banking Day in the principal financial centre of the country of the Specified Currency
(which, if Australian dollars, shall be Sydney, if New Zealand dollars, shall be Auckland and if euro, shall be London) prior to
the commencement of the relevant Interest Period; (y) with respect to Notes denominated in Sterling or Canadian dollars the
first Banking Day in the principal financial centre of the country of the Specified Currency of the relevant Interest Period; and
(z) with respect to Notes denominated in euro, the second day on which the TARGET2 system is open prior to the commencement
of the relevant Interest Period; and

 

(G)       the
expression “Banking Day” means, in respect of any place, any day on which commercial banks are open for general
business (including dealings in foreign exchange and foreign currency deposits) in that place or, as the case may be, as indicated
in the applicable Final Terms.

 

		(v)	Minimum Rate of Interest and/or Maximum Rate of Interest 

 

If the applicable Final Terms specifies
a Minimum Rate of Interest/Interest Amount for any Interest Period, then in no event shall the Rate of Interest/Interest Amount
for such Interest Period be less than such Minimum Rate of Interest/Interest Amount. If the applicable Final Terms specifies a
Maximum Rate of Interest/Interest Amount for any Interest Period, then in no event shall the Rate of Interest/Interest Amount for
such Interest Period be greater than such Maximum Rate of Interest/Interest Amount.

 

		(vi)	Determination of Rate of Interest and Calculation of Interest Amounts 

 

The Agent (or, if the Agent is not the
Calculation Agent, the Calculation Agent specified in the applicable Final Terms) will, on or as soon as practicable after each
time at which the Rate of Interest is to be determined, determine the Rate of Interest (subject to any Minimum or Maximum Rate
of Interest/Interest Amount specified in the applicable Final Terms) and calculate the amount

 

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of interest (the “Interest Amount”)
payable on the Floating Rate Notes for the relevant Interest Period, by applying the Rate of Interest to:

 

		(A)	subject to paragraph (C) below, in the case of Floating Rate Notes which are represented by a global
Note, the aggregate outstanding nominal amount of the Notes represented by such global Note;

 

		(B)	in the case of Floating Rate Notes in definitive form, the Calculation Amount; or

 

		(C)	in the case of Floating Rate Notes which are represented by a global Note and the applicable Final
Terms indicates that the Rate of Interest shall be applied to the Calculation Amount, the Calculation Amount,

 

and, in each case, multiplying such sum
by the applicable Day Count Fraction, as specified in the applicable Final Terms, and rounding the resultant figure to the nearest
sub-unit of the relevant Specified Currency, half of any such sub-unit being rounded upwards or otherwise in accordance with applicable
market convention or as specified in the applicable Final Terms. Where the Specified Denomination of a Floating Rate Note in the
case of paragraph (B) or (C) above is a multiple of the Calculation Amount, the Interest Amount payable in respect of such Floating
Rate Note shall be the product of the amount (determined in the manner provided above) for the Calculation Amount and the amount
by which the Calculation Amount is multiplied to reach the Specified Denomination, without further rounding.

 

“Day Count Fraction”
means in respect of the calculation of an amount of interest for any Interest Period:

 

		(A)	if “Actual/Actual (ISDA)” or “Actual/Actual”
is specified in the applicable Final Terms, the actual number of days in the Interest Period divided by 365 (or, if any portion
of that Interest Period falls in a leap year, the sum of (A) the actual number of days in that
portion of the Interest Period falling in a leap year divided by 366 and (B) the actual number of days in that portion of the Interest
Period falling in a non-leap year divided by 365); 

 

		(B)	if “Actual/365 (Fixed)” is specified in the applicable Final Terms, the actual
number of days in the Interest Period divided by 365;

 

		(C)	if “Actual/360” is specified in the applicable Final Terms, the actual number
of days in the Interest Period divided by 360;

 

		(D)	if “30/360”, “360/360” or “Bond Basis” is specified
in the applicable Final Terms, the number of days in the Interest Period divided by 360, calculated on a formula basis as follows:

 

 

where:

 

“Y1”
is the year, expressed as a number, in which the first day of the Interest Period falls;

 

“Y2”
is the year, expressed as a number, in which the day immediately following the last day of the Interest Period falls;

 

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“M1”
is the calendar month, expressed as a number, in which the first day of the Interest Period falls;

 

“M2”
is the calendar month, expressed as a number, in which the day immediately following the last day of the Interest Period falls;

 

“D1”
is the first calendar day, expressed as a number, of the Interest Period, unless such number is 31, in which case D1
will be 30; and

 

“D2”
is the calendar day, expressed as a number, immediately following the last day included in the Interest Period, unless such number
would be 31 and D1 is greater than 29, in which case D2 will be 30;

 

		(E)	if “30E/360” or “Eurobond Basis” is specified in the applicable
Final Terms, the number of days in the Interest Period divided by 360, calculated on a formula basis as follows:

 

 

where:

 

“Y1”
is the year, expressed as a number, in which the first day of the Interest Period falls;

 

“Y2”
is the year, expressed as a number, in which the day immediately following the last day of the Interest Period falls;

 

“M1”
is the calendar month, expressed as a number, in which the first day of the Interest Period falls;

 

“M2”
is the calendar month, expressed as a number, in which the day immediately following the last day of the Interest Period falls;

 

“D1”
is the first calendar day, expressed as a number, of the Interest Period, unless such number would be 31, in which case D1
will be 30; and

 

“D2”
is the calendar day, expressed as a number, immediately following the last day included in the Interest Period, unless such number
would be 31, in which case D2 will be 30;

 

		(F)	if “30E/360 (ISDA)” is specified in the applicable Final Terms, the number of
days in the Interest Period divided by 360, calculated on a formula basis as follows:

 

 

where:

 

“Y1”
is the year, expressed as a number, in which the first day of the Interest Period falls;

 

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“Y2”
is the year, expressed as a number, in which the day immediately following the last day of the Interest Period falls;

 

“M1”
is the calendar month, expressed as a number, in which the first day of the Interest Period falls;

 

“M2”
is the calendar month, expressed as a number, in which the day immediately following the last day of the Interest Period falls;

 

“D1”
is the first calendar day, expressed as a number, of the Interest Period, unless (i) that day is the last day of February or (ii)
such number would be 31, in which case D1 will be 30; and

 

“D2”
is the calendar day, expressed as a number, immediately following the last day included in the Interest Period, unless (i) that
day is the last day of February but not the Maturity Date or (ii) such number would be 31, in which case D2 will be
30; and

 

		(G)	if “Actual/365 (Sterling)” is specified in the applicable Final Terms, the number
of days in the Interest Period divided by 365 or, in the case of an Interest Payment Date falling in a leap year, 366.

 

		(vii)	Linear Interpolation

 

Where Linear Interpolation is specified
as applicable in respect of an Interest Period or Specified Period in the applicable Final Terms, the Rate of Interest for such
Interest Period or Specified Period shall be calculated by the Agent (or if the Agent is not the Calculation Agent, the Calculation
Agent specified in the applicable Final Terms) by straight line linear interpolation by reference to two rates based on the relevant
Reference Rate (where Screen Rate Determination is specified as applicable in the applicable Final Terms) or the relevant Floating
Rate Option (where ISDA Determination is specified as applicable in the applicable Final Terms), one of which shall be determined
as if the Designated Maturity (as defined below) were the period of time for which rates are available next shorter than the length
of the relevant Interest Period or Specified Period and the other of which shall be determined as if the Designated Maturity were
the period of time for which rates are available next longer than the length of the relevant Interest Period or Specified Period,
provided however, that if there is no rate available for a period of time next shorter or, as the case may be, next longer, then
the Agent (or if the Agent is not the Calculation Agent, the Calculation Agent specified in the applicable Final Terms) shall determine
such rate at such time and by reference to such sources as the Issuer shall determine as appropriate for such purposes. For the
purposes of this Condition 4(b)(vii), the expression “Designated Maturity” means, in relation to Screen Rate
Determination, the period of time designated in the Reference Rate.

 

		(viii)	Notification of Rate of Interest and Interest Amount

 

The Agent will cause the Rate of Interest
and each Interest Amount for each Interest Period or Specified Period and the relevant Interest Payment Date to be notified to
the Issuer, the TCCI Registrar and the TCCI Transfer Agent (in the case of Registered Notes issued by Toyota Credit Canada Inc.),
the TMCC Registrar and the TMCC Transfer Agent (in the case of Registered Notes issued by Toyota Motor Credit Corporation) and
any stock exchange or other relevant authority on which the relevant Floating Rate Notes are for the time being admitted to trading
and listed and will cause notice of the same to be published or given in accordance with Condition 16 as soon as possible after
their determination but in no event later than the fourth London Business Day after their determination. Each Interest Amount and
Interest Payment Date so notified may subsequently be amended (or appropriate alternative arrangements made by way of adjustment)
without publication as aforesaid or prior notice in the event of an extension or shortening of the Interest Period or Specified
Period in accordance with the provisions hereof. Any such

 

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amendment will promptly be notified to
each stock exchange or other relevant authority on which the relevant Floating Rate Notes are for the time being admitted to trading
and listed. For the purposes of this Condition 4(b)(viii), the expression “London Business Day” means a day
(other than a Saturday or Sunday) on which banks and foreign exchange markets are open for general business in London.

 

		(ix)	Certificates to be Final 

 

All certificates, communications, opinions,
determinations, calculations, quotations and decisions given, expressed, made or obtained for the purposes of the provisions of
this Condition 4(b), whether by the Agent or other Calculation Agent, shall (in the absence of wilful default, bad faith, manifest
error or proven error) be binding on the Issuer, the Agent, the Calculation Agent, any other Paying Agent and all Noteholders and
Couponholders and (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Registrar and TCCI Transfer Agent
and (in the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Registrar and TMCC Transfer Agent and
(in the absence of wilful default or bad faith) no liability to the Issuer, the Noteholders or the Couponholders shall attach to
the Agent or the Calculation Agent in connection with the exercise or non-exercise by either of them of their powers, duties and
discretions pursuant to such provisions.

 

		(c)	Benchmark Discontinuation

 

Notwithstanding the provisions in Condition
4(b) above, if the Issuer determines that a Benchmark Event has occurred in relation to an Original Reference Rate when any Rate
of Interest (or any component part thereof) remains to be determined by reference to that Original Reference Rate, then the following
provisions of this Condition 4(c) shall apply.

 

		(i)	Successor Rate or Alternative Rate

 

If there is a Successor Rate, then the
Issuer shall promptly notify the Agent (or such other Calculation Agent specified in the applicable Final Terms) and, in accordance
with Condition 16, the Noteholders of such Successor Rate and that Successor Rate shall (subject to adjustment as provided in Condition
4(c)(ii)) subsequently be used by the Agent (or such other Calculation Agent specified in the applicable Final Terms) in place
of the Original Reference Rate to determine the relevant Rate(s) of Interest (or the relevant component part(s) thereof) for all
relevant future payments of interest on the Notes (subject to the further operation of this Condition 4(c)).

 

If there is
no Successor Rate but the Issuer, acting in good faith, in a commercially reasonable manner and by reference
to such sources as it deems appropriate, which may include consultation with an Independent Adviser, determines that there is an
Alternative Rate, then the Issuer shall promptly notify the Agent (or such other Calculation Agent specified in the applicable
Final Terms) and, in accordance with Condition 16, the Noteholders of such Alternative Rate and that Alternative Rate shall (subject
to adjustment as provided in Condition 4(c)(ii)) subsequently be used in place of the Original Reference Rate to determine the
relevant Rate(s) of Interest (or the relevant component part(s) thereof) for all relevant future payments of interest on the Notes
(subject to the further operation of this Condition 4(c)).

 

		(ii)	Adjustment Spread

 

If, in the case of a Successor Rate, an
Adjustment Spread is formally recommended, or formally provided as an option by any Relevant Nominating Body to adopt, in relation
to the replacement of the Original Reference Rate with the Successor Rate by any Relevant Nominating Body, then the Issuer shall
promptly notify the Agent (or such other Calculation Agent specified in the applicable Final Terms) and, in accordance with Condition
16, the Noteholders of such Adjustment Spread and the Agent (or such other Calculation Agent specified in the applicable Final
Terms) shall apply such Adjustment Spread to the Successor Rate for each subsequent determination of a relevant Rate of Interest
(or a component part thereof) by reference to such Successor Rate.

 

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If, in the case of a Successor
Rate where no such Adjustment Spread is formally recommended or formally provided as an option by any Relevant Nominating Body
to adopt, or in the case of an Alternative Rate, the Issuer, acting in good faith, in a commercially reasonable manner and by reference
to such sources as it deems appropriate, which may include consultation with an Independent Adviser, determines that there is an
Adjustment Spread in customary market usage in the international debt capital markets for transactions which reference the Original
Reference Rate, where such rate has been replaced by the Successor Rate or the Alternative Rate (as the case may be), then the
Issuer shall promptly notify the Agent (or such other Calculation Agent specified in the applicable Final Terms) and, in accordance
with Condition 16, the Noteholders of such Adjustment Spread and the Agent (or such other Calculation Agent specified in the applicable
Final Terms) shall apply such Adjustment Spread to the Successor Rate and the Alternative Rate (as the case may be) for each subsequent
determination of a relevant Rate of Interest (or any component part(s) thereof) by reference to such Successor Rate or Alternative
Rate (as applicable).

 

If no such
recommendation or option has been made (or made available) by any Relevant Nominating Body, or the Issuer so determines that there
is no such Adjustment Spread in customary market usage in the international debt capital markets and the Issuer further
determines, acting in good faith, in a commercially reasonable manner and following consultation with
an Independent Adviser, that an Adjustment Spread is required to be applied to the Successor Rate or the Alternative Rate (as the
case may be), then the Adjustment Spread shall be:

 

		(A)	the Adjustment Spread determined by the Issuer, acting in good faith, in a commercially reasonable
manner and following consultation with an Independent Adviser, as being the Adjustment Spread recognised or acknowledged as being
the industry standard for over-the-counter derivative transactions which reference the Original Reference Rate, where such rate
has been replaced by the Successor Rate or the Alternative Rate (as the case may be); or

 

		(B)	if there is no such industry standard recognised or acknowledged, such Adjustment Spread as the
Issuer, acting in good faith, in a commercially reasonable manner and following consultation with an Independent Adviser, determines
to be appropriate.

 

Following
any such determination of the Adjustment Spread, the Issuer shall promptly notify the Agent (or such other Calculation Agent specified
in the applicable Final Terms) and, in accordance with Condition 16, the Noteholders of such Adjustment Spread and
the Agent (or such other Calculation Agent specified in the applicable Final Terms) shall apply such Adjustment Spread to the Successor
Rate or the Alternative Rate (as the case may be) for each subsequent determination of a relevant Rate of Interest (or any component
part(s) thereof) by reference to such Successor Rate or Alternative Rate (as applicable).

 

		(iii)	Benchmark Amendments

 

If any Successor Rate, Alternative Rate
or Adjustment Spread is determined in accordance with this Condition 4(c) and the Issuer, acting in good faith, in a commercially
reasonable manner and by reference to such sources as it deems appropriate, which may include consultation with an Independent
Adviser, determines in its discretion (A) that amendments to these Terms and Conditions are necessary to ensure the proper operation
of such Successor Rate, Alternative Rate and/or Adjustment Spread (such amendments, the “Benchmark Amendments”)
and (B) the terms of the Benchmark Amendments, then the Issuer shall, subject to the Issuer having to give notice thereof to the
Noteholders in accordance with Condition 16, without any requirement for the consent or approval of Noteholders, modify these Terms
and Conditions and/or the Agency Agreement to give effect to such Benchmark Amendments with effect from the date specified in such
notice.

 

In connection
with any such modifications in accordance with this Condition 4(c)(iii), the Issuer shall comply
with the rules of any stock exchange on which the Notes are for the time being listed or admitted to trading.

 

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Any Benchmark
Amendments determined under this Condition 4(c)(iii) shall be notified promptly by the Issuer
to the Agent (or such other Calculation Agent specified in the applicable Final Terms) and, in accordance with Condition 16, the
Noteholders. Such notice shall be irrevocable and shall specify the effective date of such Benchmark Amendments.

 

		(iv)	Independent Adviser

 

In the event the Issuer is to consult with
an Independent Adviser in connection with any determination to be made by the Issuer pursuant to this Condition 4(c), the Issuer
shall use its reasonable endeavours to appoint an Independent Adviser, as soon as reasonably practicable, for the purposes of any
such consultation.

 

An Independent
Adviser appointed pursuant to this Condition 4(c) shall act in good faith, in a commercially reasonable manner
and (in the absence of fraud or wilful default) shall have no liability whatsoever to the Issuer or the Noteholders for any determination
made by it or for any advice given to the Issuer in connection with any determination made by the Issuer pursuant to this Condition
4(c) or otherwise in connection with the Notes.

 

If the Issuer
is in any doubt as to whether there is an Alternative Rate and/or any Adjustment Spread is required to be applied and/or in relation
to the quantum of, or any formula or methodology for determining such Adjustment Spread and/or
whether any Benchmark Amendments are necessary and/or in relation to the terms of any such Benchmark Amendments, a written determination
of an Independent Adviser in respect thereof shall be conclusive and binding on all parties, save in the case of manifest error,
and (in the absence of fraud or wilful default) the Issuer shall have no liability whatsoever to the Noteholders in respect of
anything done, or omitted to be done, in relation to that matter in accordance with any such written determination.

 

No Independent
Adviser appointed in connection with the Notes (acting in such capacity), shall have any relationship
of agency or trust with the Noteholders.

 

		(v)	Survival of Original Reference Rate Provisions

 

Without prejudice to the obligations of
the Issuer under this Condition 4(c), the Original Reference Rate and the fallback provisions provided for in Conditions 4(b) and
the applicable Final Terms will continue to apply unless and until the Issuer has determined the Successor Rate or the Alternative
Rate (as the case may be), and any Adjustment Spread and Benchmark Amendments, in accordance with the relevant provisions of this
Condition 4(c).

 

		(vi)	Definitions

 

In this Condition 4(c):

 

“Adjustment
Spread” means either a spread, or the formula or methodology for calculating a spread and the spread resulting from such
calculation, which spread may in either case be positive or negative and is to be applied to the Successor Rate or the Alternative
Rate (as the case may be) to reduce or eliminate, to the fullest extent reasonably practicable
in the circumstances, any economic prejudice or benefit (as the case may be) to Noteholders as a result of the replacement of the
Original Reference Rate with the Successor Rate or the Alternative Rate (as the case may be);

 

“Alternative
Rate” means an alternative benchmark or screen rate which the Issuer determines in accordance with this Condition
4(c) is used in place of the Original Reference Rate in customary market usage in the international
debt capital markets for the purposes of determining rates of interest (or the relevant component part thereof) for a commensurate
interest period and in the same Specified Currency as the Notes;

 

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“Benchmark
Event” means:

 

		(A)	the Original Reference Rate ceasing to exist or be published;

 

		(B)	the later of (i) the making of a public statement by the administrator of the Original Reference
Rate that it will, by a specified date, cease publishing the Original Reference Rate permanently or indefinitely (in circumstances
where no successor administrator has been appointed that will continue publication of the Original Reference Rate) and (ii) the
date falling six months prior to such specified date;

 

		(C)	the making of a public statement by the supervisor of the administrator of the Original Reference
Rate that the Original Reference Rate has been permanently or indefinitely discontinued or is prohibited from being used or that
its use is subject to restrictions or adverse consequences or, where such discontinuation, prohibition, restrictions or adverse
consequences are to apply from a specified date after the making of any public statement to such effect, the later of the date
of the making of such public statement and the date falling six months prior to such specified date; or

 

		(E)	it has or will prior to the next Interest Determination Date become unlawful for the Agent, any
Calculation Agent, any Paying Agent or the Issuer to determine any Rate of Interest and/or calculate any Interest Amount using
the Original Reference Rate (including, without limitation, under the Benchmarks Regulation (EU) No. 2016/1011, if applicable);

 

“Independent
Adviser” means an independent financial institution of international repute or other independent adviser of recognised
standing with appropriate expertise appointed by the Issuer at its own expense;

 

“Original Reference
Rate” means the benchmark or screen rate (as applicable) originally specified in the applicable Final Terms for the purposes
of determining the relevant Rate of Interest (or any component part(s) thereof) in respect of the Notes;

 

“Relevant Nominating
Body” means, in respect of a benchmark or screen rate (as applicable):

 

		(A)	the central bank for the currency to which the benchmark or screen rate (as applicable) relates,
or any central bank or other supervisory authority which is responsible for supervising the administrator of the benchmark or screen
rate (as applicable); or

 

		(B)	any working group or committee sponsored by, chaired or co-chaired by or constituted at the request
of (A) the central bank for the currency to which the benchmark or screen rate (as applicable) relates, (B) any central bank or
other supervisory authority which is responsible for supervising the administrator of the benchmark or screen rate (as applicable),
(C) a group of the aforementioned central banks or other supervisory authorities, or (D) the Financial Stability Board or any part
thereof; and

 

“Successor
Rate” means a successor to or replacement of the Original Reference Rate which is formally recommended by any Relevant
Nominating Body.

 

		(d)	Zero Coupon Notes 

 

When a Zero Coupon Note becomes due and
repayable prior to the Maturity Date and is not paid when due, the amount due and repayable shall be the Amortised Face Amount
of such Note as determined in accordance with Condition 6(i)(iii). As from the Maturity Date, any overdue principal of such Note
shall bear interest at a rate per annum equal to the Accrual Yield set forth in the applicable Final Terms.

 

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		(e)	Accrual of Interest 

 

Each Note (or in the case of the redemption
of part only of a Note, that part only of such Note to be redeemed) will cease to bear interest (if any) from the date of its redemption
unless payment of principal is improperly withheld or refused. In such event, interest will continue to accrue at the rate of interest
then applicable or at such other rate as may be specified in the applicable Final Terms until whichever is the earlier of (i) the
day on which all sums due in respect of such Note up to that day are received by or on behalf of the holder of such Note; and (ii) the
day on which the Agent or (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Registrar or the TCCI
Transfer Agent or (in the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Registrar or the TMCC Transfer
Agent has notified the holder thereof (either in accordance with Condition 16 or individually) of receipt of all sums due in respect
thereof up to that date.

 

		5.	Payments 

 

		(a)	Method of Payment 

 

Subject as provided below:

 

		(i)	payments in a Specified Currency other than euro, U.S. dollars or Renminbi, will be made by credit
or transfer to an account in the relevant Specified Currency (which, in the case of a payment in Japanese Yen to a non-resident
of Japan, shall be a non-resident account) maintained by the payee with, or at the option of the payee by a cheque in such Specified
Currency drawn on, a bank in the principal financial centre of the country of such Specified Currency (which, if the Specified
Currency is Australian dollars or New Zealand dollars shall be Sydney or Auckland, respectively), unless specified otherwise in
the applicable Final Terms;

 

		(ii)	payments in euro will be made by credit or transfer to a euro account (or any other account to
which euro may be credited or transferred) specified by the payee or, at the option of the payee, by a euro cheque;

 

		(iii)	payments in U.S. dollars, except as provided by Condition 5(d), shall be made by credit or transfer
to a U.S. dollar account outside the United States specified by the payee; and

 

		(iv)	payments in Renminbi shall be made by credit or transfer to a Renminbi account maintained by or
on behalf of the payee with a bank in Hong Kong or such RMB Settlement Centre(s) as may be specified in the applicable Final Terms
in accordance with applicable laws, rules, regulations and guidelines issued from time to time (including all applicable laws and
regulations with respect to settlement in Renminbi in Hong Kong or such RMB Settlement Centre(s) as may be specified in the applicable
Final Terms).

 

A cheque may not be delivered to an address
in, and an amount may not be transferred to an account at a bank located in, the United States of America or its possessions by
any office or agency of the Issuer, the Agent or any Paying Agent or (in the case of Registered Notes issued by Toyota Credit Canada
Inc.) the TCCI Registrar or TCCI Transfer Agent or (in the case of Registered Notes issued by Toyota Motor Credit Corporation)
the TMCC Registrar or TMCC Transfer Agent except as provided in Condition 5(d). Payments will be subject in all cases to any fiscal
or other laws and regulations applicable thereto in the place of payment and the administrative practices and procedures of fiscal
and other authorities in relation to tax, anti-money laundering and other requirements which may apply to payments of amounts due
(whether principal, redemption amount, interest or otherwise) in respect of Notes, but (unless otherwise specified in the applicable
Final Terms) without prejudice to the provisions of Condition 7.

 

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However, if any withholding is required
under Sections 1471 through to 1474 of the U.S. Internal Revenue Code of 1986, as amended, any regulations or other guidance promulgated
thereunder or any official interpretations thereof (including under an agreement described under Section 1471(b)), or under any
intergovernmental agreement implementing an alternative approach thereto or any implementing law in relation thereto the Issuer
will not be required to pay any additional amount under Condition 7 on account of such withholding.

 

		(b)	Presentation of Notes and Coupons – Bearer Notes 

 

This Condition 5(b) applies to Bearer Notes.

 

Payments of principal in respect of definitive
Notes will (subject as provided below) be made in the Specified Currency in the manner provided in Condition 5(a) against presentation
and surrender (or, in the case of part payment of a sum due only, endorsement) of definitive Notes and payments of interest in
respect of the definitive Notes will (subject as provided below) be made in the Specified Currency in the manner provided in Condition
5(a) against presentation and surrender (or, in the case of part payment of a sum due only, endorsement) of Coupons, in each case
at the specified office of any Paying Agent outside the United States which expression, used herein, means the United States of
America (including the States and the District of Columbia and its possessions).

 

Upon the date on which any Fixed Rate Notes
in definitive form become due and repayable, such Notes should be presented for payment together with all unmatured Coupons appertaining
thereto (which expression shall for this purpose include Coupons falling to be issued on exchange of matured Talons), failing which
the amount of any missing unmatured Coupon (or, in the case of payment not being made in full, the same proportion of the aggregate
amount of such missing unmatured Coupon as the sum so paid bears to the sum due) will be deducted from the sum due for payment.
Unless otherwise specified in the applicable Final Terms, each amount of principal so deducted will be paid in the manner mentioned
above against surrender of the relative missing Coupon at any time before the expiry of five years after the Relevant Date (as
defined in Condition 8) in respect of such principal (whether or not such Coupon would otherwise have become void under Condition
8) or, if later, five years from the date on which such Coupon would otherwise have become due. Upon any Fixed Rate Note in definitive
form becoming due and repayable prior to its Maturity Date, all unmatured Talons (if any) appertaining thereto will become void
and no further Coupons will be issued in respect thereof.

 

Upon the date on which any Floating Rate
Note in definitive form becomes due and repayable, unmatured Coupons and Talons (if any) relating thereto (whether or not attached)
shall become void and no payment or, as the case may be, exchange for further Coupons shall be made in respect thereof.

 

If the due date for redemption of any definitive
Note is not an Interest Payment Date, interest (if any) accrued but unpaid in respect of such Note from (and including) the preceding
Interest Payment Date or, as the case may be, the Interest Commencement Date or Issue Date (as applicable) shall be payable only
against surrender of the relevant definitive Note.

 

Payments of principal and interest (if
any) in respect of Notes represented by any global Note will (subject as provided below) be made in the manner specified above
in relation to definitive Notes or otherwise in the manner specified in the relevant global Note, where applicable against presentation
or surrender, as the case may be, of such global Note, if the global Note is not issued in NGN form or held under the NSS, at the
specified office of any Paying Agent located outside the United States except as provided below. A record of each payment made,
distinguishing between any payment of principal and any payment of interest, will be made on such global Note either by the Paying
Agent to which it was presented or in the records of Euroclear and Clearstream, Luxembourg, as applicable.

 

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		(c)	Presentation and Surrender of Notes – Registered Notes 

 

Provisions in relation to payments of principal
and interest in respect of Registered Notes will be set out in the relevant global Registered Note or definitive Registered Note
and as otherwise set out in these Terms and Conditions. Interest on Registered Notes shall be paid to the person shown on the relevant
TCCI Register with respect to Registered Notes issued by TCCI, or the relevant TMCC Register with respect to Registered Notes issued
by TMCC, on the Record Date, and “Record Date” means, in the case of global Registered Notes, at the close of
business on the relevant clearing system business day before the due date for payment thereof, or in the case of Registered Notes
in definitive form, at close of business on the fifteenth day before the due date for payment thereof.

 

		(d)	Global Notes 

 

The holder of a global Note shall be the
only person entitled to receive payments in respect of Notes represented by such global Note and the Issuer will be discharged
by payment to, or to the order of, the holder of such global Note in respect of each amount so paid. Each of the persons shown
in the records of Euroclear or Clearstream, Luxembourg as the holder of a particular nominal amount of Notes represented by such
global Note must look solely to Euroclear or Clearstream, Luxembourg, as the case may be, for the holder’s share of each
payment so made by the Issuer to, or to the order of, the holder of such global Note. No person other than the holder of such global
Note shall have any claim against the Issuer in respect of any payments due on the global Note.

 

Interest on the Notes is payable only outside
the United States and its possessions, within the meaning of United States Treasury regulation Section 1.163-5(c)(1)(ii)(A). No
interest on the Notes shall be paid into an account maintained by the payee in the United States or mailed to an address in the
United States unless the payee is described in United States Treasury regulation Sections 1.163-5(c)(2)(v)(B)(1) or (2).

 

Notwithstanding the foregoing, payments
of principal and interest in respect of global Notes will be made at the specified office of a Paying Agent in the United States
(which expression, as used herein, means the United States of America (including the States and the District of Columbia, its territories,
its possessions and other areas subject to its jurisdiction)) if:

 

		(i)	the Issuer has appointed Paying Agents with specified offices outside the United States with the
reasonable expectation that such Paying Agents would be able to make payments at such specified offices outside the United States
of the full amount owing in respect of the Notes in the manner provided above when due;

 

		(ii)	payment of the full amount owing in respect of the Notes at such specified offices outside the
United States is illegal or effectively precluded by the imposition of exchange controls or other similar restrictions on the full
payment or receipt of interest; and

 

		(iii)	such payment is then permitted under United States law without involving, in the opinion of the
Issuer, adverse tax consequences to the Issuer.

 

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		(e)	Payment Day 

 

Unless specified otherwise in the applicable
Final Terms, if the due date for payment of any amount in respect of any Note or Coupon is not a Payment Day, the holder thereof
shall not be entitled to payment until the next following Payment Day in the relevant place and shall not be entitled to further
interest or other payment in respect of such delay. For these purposes, unless otherwise specified in the applicable Final Terms,
“Payment Day” means any day which (subject to Condition 8) is both:

 

		(i)	a day on which commercial banks and foreign exchange markets settle payments and are open for general
business (including dealing in foreign exchange and foreign currency deposits) in:

 

(A)       the
relevant place of presentation (if presentation is required); and

 

		(B)	any Additional Financial Centre specified in the applicable Final Terms and London; and

 

		(ii)	(1) in relation to any sum payable in a Specified Currency other than
euro or Renminbi, a day on which commercial banks and foreign exchange markets settle payments
and are open for general business (including dealing in foreign exchange and foreign currency deposits) in the principal financial
centre of the country of the relevant Specified Currency (which if the Specified Currency is Australian dollars or New Zealand
dollars shall be Sydney or Auckland, respectively); (2) in relation to any sum payable in euro, a day on which the TARGET2 System
is open; or (3) in relation to any sum payable in Renminbi, a day on which banks and foreign exchange markets are open for business
and settlement of Renminbi payments in Hong Kong or such RMB Settlement Centre(s) as may be specified in the applicable Final Terms.

 

		(f)	Conversion into euro 

 

Unless specified otherwise in the applicable
Final Terms, if the Issuer is due to make a payment in a currency (the “original currency”) other than euro
in respect of any Note or Coupon and the original currency is not available on the foreign exchange markets due to the imposition
of exchange controls, the original currency’s replacement or disuse or other circumstances beyond the Issuer’s control,
the Issuer will be entitled to satisfy its obligations in respect of such payment by making payment in euro on the basis of the
spot exchange rate (the “Euro FX Rate”) at which the original currency is offered in exchange for euro in the
London foreign exchange market (or, at the option of the Issuer or its designated Calculation Agent, in the foreign exchange market
of any other financial centre which is then open for business) at noon, London time, two Business Days prior to the date on which
payment is due or, if the Euro FX Rate is not available on that date, on the basis of a substitute exchange rate determined by
the Issuer or by its designated Calculation Agent acting in its absolute discretion from such source(s) and at such time as it
may select. For the avoidance of doubt, the Euro FX Rate or substitute exchange rate as aforesaid may be such that the resulting
euro amount is zero and in such event no amount of euro or the original currency will be payable. Any payment made in euro or non-payment
in accordance with this Condition 5(f) will not constitute an Event of Default under Condition 9.

 

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(g)       Interpretation
of Principal and Interest 

 

Any reference in these Terms and Conditions
to principal in respect of the Notes shall be deemed to include, as applicable:

 

		(i)	any additional amounts which may be payable with respect to principal under Condition 7 or pursuant
to any undertakings given in addition thereto or in substitution therefor under Condition 14;

 

		(ii)	the Final Redemption Amount of the Notes;

 

		(iii)	the Early Redemption Amount of the Notes;

 

		(iv)	the Optional Redemption Amount(s) (if any) of the Notes;

 

		(v)	in relation to Zero Coupon Notes, the Amortised Face Amount (as defined in Condition 6(i)(iii));
and

 

		(vi)	any premium and any other amounts (other than interest) which may be payable by the Issuer under
or in respect of the Notes.

 

Any reference in these Terms and Conditions
to interest in respect of the Notes shall be deemed to include, as applicable, any additional amounts which may be payable with
respect to interest under Condition 7 or pursuant to any undertakings given in addition thereto or in substitution therefor under
Condition 14, except as provided in sub-paragraph (i) above.

 

(h)       Payment
of Reference Currency Equivalent

 

Notwithstanding any other provisions in
these Terms and Conditions, if by reason of Inconvertibility (as defined below), Non-transferability (as defined below) or Illiquidity
(as defined below), the Issuer determines in good faith and in a commercially reasonable manner that it is not able, or it would
be impracticable for it, to satisfy payments due under the Notes or Coupons in Renminbi in Hong Kong or such RMB
Settlement Centre(s) as may be specified in the applicable Final Terms, the Issuer shall, unless specified otherwise in
the applicable Final Terms, settle any such payment in U.S. dollars on the due date for payment at the Reference Currency Equivalent
of any such Renminbi denominated amount and give notice thereof (including details thereof) as soon as practicable to the Noteholders
in accordance with Condition 16.

 

In such event, payments of the Reference
Currency Equivalent of the relevant amounts due under the Notes or Coupons shall be made in accordance with Condition 5(a).

 

In this Condition 5(h), unless specified
otherwise in the applicable Final Terms:

 

“Governmental Authority”
means any de facto or de jure government (or any agency or instrumentality thereof), court, tribunal, administrative or other governmental
authority or any other entity (private or public) charged with the regulation of the financial markets (including the central bank)
of Hong Kong or such RMB Settlement Centre(s) as may be specified in the applicable Final Terms;

 

“Illiquidity” means
the general Renminbi exchange market in Hong Kong or such RMB Settlement Centre(s) as may be
specified in the applicable Final Terms becomes illiquid as a result of which the Issuer cannot obtain sufficient Renminbi in order
to satisfy its obligation to make a payment under the Notes or Coupons;

 

“Inconvertibility” means
the occurrence of any event that makes it impossible for the Issuer to convert into Renminbi any amount due in respect of the Notes
or Coupons into Renminbi on any

 

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payment date in the general Renminbi exchange
market in Hong Kong or such RMB Settlement Centre(s) as may be specified in the applicable
Final Terms, other than where such impossibility is due solely to the failure of the Issuer to comply with any law, rule or regulation
enacted by any Governmental Authority (unless such law, rule or regulation is enacted after the Issue Date of the first Tranche
of the relevant Series and it is impossible for the Issuer due to an event beyond its control, to comply with such law, rule or
regulation);

 

“Non-transferability”
means the occurrence of any event that makes it impossible for the Issuer to deliver Renminbi between accounts inside Hong Kong
(or such RMB Settlement Centre(s) as may be specified in the applicable Final Terms) or from
an account inside Hong Kong (or such RMB Settlement Centre(s) as may be specified in the applicable
Final Terms) to an account outside Hong Kong (or such RMB Settlement Centre(s) as may be specified
in the applicable Final Terms) (including where the Renminbi clearing and settlement system for participating banks in Hong Kong
(or such RMB Settlement Centre(s) as may be specified in the applicable Final Terms) is disrupted
or suspended), other than where such impossibility is due solely to the failure of the Issuer to comply with any law, rule or regulation
enacted by any Governmental Authority (unless such law, rule or regulation is enacted after the Issue Date of the first Tranche
of the relevant Series and it is impossible for the Issuer due to an event beyond its control, to comply with such law, rule or
regulation);

 

“Rate Determination Business Day”
means a day (other than a Saturday or Sunday) on which commercial banks are open for general business (including dealings in foreign
exchange) in Hong Kong, London, New York City or such other financial centre(s) as may be specified in the applicable Final Terms;

 

“Rate Determination Date”
means the day which is two Rate Determination Business Days before the due date of the relevant amount under the Notes;

 

“Reference Currency Equivalent”
means unless specified otherwise in the applicable Final Terms, the relevant Renminbi amount converted into U.S. dollars using
the Spot Rate for the relevant Rate Determination Date; and

 

“Spot Rate” means, unless
specified otherwise in the applicable Final Terms, the spot CNY/U.S.$ exchange rate for the purchase of U.S. dollars with Renminbi
in the over-the-counter Renminbi exchange market in Hong Kong (or such RMB Settlement Centre(s)
as may be specified in the applicable Final Terms) for settlement in two Rate Determination Business Days, as determined by the
Calculation Agent at or around 11.00 a.m. (local time in Hong Kong or such RMB Settlement Centre(s)
as may be specified in the applicable Final Terms) on the Rate Determination Date, on a deliverable basis by reference to Reuters
Screen Page TRADCNY3, or if no such rate is available, on a non-deliverable basis by reference to Reuters Screen Page TRADNDF.
If neither rate is available, the Calculation Agent shall determine the rate taking into consideration all available information
which the Calculation Agent deems relevant, including pricing information obtained from the Renminbi non-deliverable exchange market
in Hong Kong or elsewhere and the CNY/U.S.$ exchange rate in the PRC domestic foreign exchange market.

 

All certificates, communications, opinions,
determinations, calculations, quotations and decisions given, expressed, made or obtained for the purposes of the provisions of
this Condition 5(h), whether by the Agent or other Calculation Agent, shall (in the absence of negligence, wilful default, bad
faith or manifest error) be binding on the Issuer, the Agent, Calculation Agent (if applicable), any other Paying Agents and all
Noteholders and Couponholders and (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Registrar and
the TCCI Transfer Agent or (in the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Registrar and the
TMCC Transfer Agent and (in the absence as aforesaid) no liability to the Issuer, the Noteholders or the Couponholders shall attach
to the Agent or the Calculation Agent (if applicable) in connection with the exercise or non-exercise by it of its powers, duties
and discretions pursuant to the provisions of this Condition 5(h).

 

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		6.	Redemption and Purchase 

 

		(a)	At Maturity 

 

Unless otherwise indicated in the applicable
Final Terms and unless previously redeemed or purchased and cancelled as specified below, each Note will be redeemed by the Issuer
at its Final Redemption Amount specified in the applicable Final Terms in the relevant Specified Currency on the Maturity Date
specified in the applicable Final Terms.

 

		(b)	Redemption for Tax Reasons 

 

The Issuer may redeem the Notes in whole,
but not in part, at any time at their Early Redemption Amount, together, if appropriate, with accrued but unpaid interest to (but
excluding) the date fixed for redemption under this Condition 6(b), if the Issuer shall determine that as a result of any change
in, or amendment to, the laws (or any regulations or rulings promulgated thereunder) of the jurisdiction in which the Issuer is
incorporated or any political subdivision or any authority thereof or therein having power to tax, or any change in the application
or official interpretation of such laws, regulations or rulings, which change or amendment becomes effective on or after the Issue
Date of the Notes, the Issuer would be required to pay Additional Amounts, as provided in Condition 7, on the occasion of the next
payment due in respect of the Notes.

 

Notice of intention to redeem Notes will
be given at least once in accordance with Condition 16 not less than 30 days nor more than 60 days prior to the date fixed for
redemption under this Condition 6(b), provided that no such notice of redemption shall be given earlier than 90 days prior to the
effective date of such change or amendment and that at the time notice of such redemption is given, such obligation to pay such
Additional Amounts remains in effect. From and after any redemption date, if moneys for redemption of Notes shall have been made
available for redemption on such redemption date, such Notes shall cease to bear interest, if applicable, and the only right of
the holders of such Notes and any Coupons appertaining thereto shall be to receive payment of the Early Redemption Amount and,
if appropriate, all unpaid interest accrued to (but excluding) such redemption date.

 

		(c)	Final Terms 

 

The
Final Terms applicable to the Notes shall indicate either:

 

		(i)	that the Notes cannot be redeemed prior to their Maturity Date (except as otherwise provided in
Condition 6(b) and in Condition 9); or

 

		(ii)	that such Notes will be redeemable at the option of the Issuer and/or the holders of the Notes
prior to such Maturity Date in accordance with the provisions of Conditions 6(d), 6(e), 6(f) and/or 6(h) on the date or dates and
at the amount or amounts indicated in the applicable Final Terms.

 

		(d)	Redemption at the Option of the Issuer (“Issuer Call Option”) 

 

If the Issuer Call Option is specified
as being applicable in the applicable Final Terms, the Issuer may, having given:

 

		(i)	not more than 60 nor less than 30 days’ notice to the holders of the Notes in accordance
with Condition 16, or such other notice period as is specified in the applicable Final Terms; and

 

		(ii)	not less than 5 days before the date of the notice referred to in sub-paragraph (i) (or such other
notice period as is specified in the applicable Final Terms) is to be given, notice to the Agent or (in the case of Registered
Notes issued by Toyota Credit

 

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Canada Inc.)
the TCCI Registrar and the TCCI Transfer Agent or (in the case of Registered Notes issued by Toyota Motor Credit Corporation) the
TMCC Registrar and the TMCC Transfer Agent;

 

(which notices shall be irrevocable), redeem
all or some only of the Notes then outstanding on the Optional Redemption Date(s) and at the Optional Redemption Amount(s) specified
in the applicable Final Terms together (if appropriate) with interest accrued but unpaid to (but excluding) the Optional Redemption
Date(s). If the applicable Final Terms specify the Notes are redeemable in part, such redemption must be of a nominal amount not
less than the Minimum Redemption Amount or not more than the Maximum Redemption Amount, both as indicated in the applicable Final
Terms.

 

(e)       Redemption
at the Option of the Issuer (“Issuer Maturity Par Call Option”)

 

If the Issuer Maturity Par Call Option
is specified as being applicable in the applicable Final Terms, the Issuer may, having given:

 

		(i)	not more than 60 nor less than 30 days’ notice to the holders of the Notes in accordance
with Condition 16, or such other notice period as is specified in the applicable Final Terms; and

 

		(ii)	not less than 5 days before the date of the notice referred to in sub-paragraph (i) (or such other
notice period as is specified in the applicable Final Terms) is to be given, notice to the Agent or (in the case of Registered
Notes issued by Toyota Credit Canada Inc.) the TCCI Registrar and the TCCI Transfer Agent or (in the case of Registered Notes issued
by Toyota Motor Credit Corporation) the TMCC Registrar and the TMCC Transfer Agent;

 

(which notices shall be irrevocable and
shall specify the date fixed for redemption), redeem the Notes in whole, but not in part, at any time during the period commencing
on (and including) the day that is 90 days prior to the Maturity Date to (but excluding) the Maturity Date, at the Final Redemption
Amount specified in the applicable Final Terms, together (if appropriate) with interest accrued but unpaid to (but excluding) the
date fixed for redemption.

 

(f)       Redemption
at the Option of the Issuer (“Issuer Make-Whole Call Option”)

 

If the Issuer Make-Whole Call Option is
specified as being applicable in the applicable Final Terms, the Issuer may, having given:

 

		(i)	not more than 60 nor less than 30 days’ notice to the holders of the Notes in accordance
with Condition 16, or such other notice period as is specified in the applicable Final Terms; and

 

		(ii)	not less than 5 days before the date of the notice referred to in sub-paragraph (i) (or such other
notice period as is specified in the applicable Final Terms) is to be given, notice to the Agent or (in the case of Registered
Notes issued by Toyota Credit Canada Inc.) the TCCI Registrar and the TCCI Transfer Agent or (in the case of Registered Notes issued
by Toyota Motor Credit Corporation) the TMCC Registrar and the TMCC Transfer Agent;

 

(which notices shall be irrevocable and
shall specify the date fixed for redemption), redeem all or some only of the Notes then outstanding on any Optional Redemption
Date (that is, if the Issuer Maturity Par Call Option is specified to be applicable in the applicable Final Terms, more than 90
days prior to the Maturity Date) and at the Optional Redemption Amount(s) specified in the applicable Final Terms together (if
appropriate) with interest accrued but unpaid to (but excluding) the relevant Optional Redemption Date. If the applicable Final
Terms specify the Notes are redeemable in part, such redemption must be of a nominal amount not less than the Minimum Redemption
Amount or not more than the Maximum Redemption Amount, both as indicated in the applicable Final Terms.

 

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If the Special Redemption Amount is specified
in the applicable Final Terms as the Optional Redemption Amount, the Optional Redemption Amount with respect to the Notes shall
be equal to the higher of:

 

		(a)	100 per cent. of the nominal amount of the Notes being redeemed; or

 

		(b)	the price (as reported to the Issuer and the Calculation Agent by the Financial Adviser and expressed
as a percentage) that provides for a Gross Redemption Yield on such Notes on the Reference Date equal (after adjusting for any
difference in compounding frequency) to the Gross Redemption Yield provided by the Reference Bonds based on the Reference Bond
Rate at the Specified Time on the Reference Date plus the Redemption Margin (if any).

 

Where:

 

“Financial Adviser”
means a financial adviser selected by the Calculation Agent after consultation with the Issuer.

 

“Gross Redemption Yield”
means a yield expressed as a percentage and calculated by the Financial Adviser in accordance with generally accepted market practice.

 

“Redemption Margin”
shall be as set out in the applicable Final Terms.

 

“Reference Bonds” means,
as at the Reference Date, the then current on-the-run government securities that would be utilised in pricing new issues of corporate
debt securities denominated in the same currency as the Notes, as determined by the Financial Adviser.

 

“Reference Bond Rate”
means the actual or, where there is more than one Reference Bond, interpolated rate per annum calculated by the Financial Adviser
in accordance with generally accepted market practice by reference to the arithmetic mean of the middle market prices provided
by three Reference Dealers for the Reference Bond(s) having an actual or interpolated maturity equal to the remaining term of the
Notes (if the Notes were to remain outstanding to the Maturity Date).

 

“Reference Date” means
the fifth London Business Day prior to the Optional Redemption Date.

 

“Reference Dealer” means
a bank selected by the Issuer or its affiliates in consultation with the Financial Adviser which is (A) a primary government securities
dealer, or (B) a market maker in pricing corporate bond issues.

 

“Specified Time” shall
be as set out in the applicable Final Terms.

 

All certificates, communications, opinions,
determinations, calculations, quotations and decisions given, expressed, made or obtained for the purposes of the provisions of
this Condition 6(f), by the Financial Adviser, shall (in the absence of negligence, wilful default, bad faith or manifest error)
be binding on the Issuer, the Agent, Calculation Agent (if applicable), any other Paying Agents and all Noteholders and Couponholders
and (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Registrar and the TCCI Transfer Agent or (in
the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Registrar and the TMCC Transfer Agent and (in
the absence as aforesaid) no liability to the Issuer, the Noteholders or the Couponholders shall attach to the Financial Adviser
in connection with the exercise or non-exercise by it of its powers, duties and discretions pursuant to the provisions of this
Condition 6(f).

 

		(g)	Partial Redemption 

 

In the event of redemption of some only
of the Notes under Condition 6(d) or Condition 6(f), the Notes to be redeemed (“Redeemed Notes”) will be selected individually
by lot, in the case of Redeemed Notes represented by definitive Notes, and in accordance with the rules of Euroclear and/or Clearstream,
Luxembourg (to be reflected in the records of Euroclear and Clearstream, Luxembourg as either a pool factor or a reduction in nominal
amount, at their discretion), in the case of Redeemed Notes represented by a global Note, not more than 60 days prior to the date

 

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fixed for redemption (such date of selection
being hereinafter called the “Selection Date”). In the case of Redeemed Notes represented by definitive Notes, a list
of such Redeemed Notes will be published or notified in accordance with Condition 16 not less than 30 days prior to the date fixed
for redemption, or such other period as is specified in the applicable Final Terms. No exchange of the relevant global Note will
be permitted during the period from and including the Selection Date to and including the date fixed for redemption pursuant to
this Condition 6(g) and notice to that effect shall be given by the Issuer to the Noteholders in accordance with Condition 16 at
least 10 days prior to the Selection Date. If an Optional Redemption Date would otherwise fall on a day which is not a Business
Day (as defined in Condition 4(b)(i)), it shall be subject to adjustment in accordance with the Business Day Convention applicable
to the Notes or such other Business Day Convention specified in the applicable Final Terms.

 

		(h)	Redemption at the Option of the Noteholders (“Investor Put Option”) 

 

Unless otherwise specified in the applicable
Final Terms, the Notes will not be subject to repayment at the option of Noteholders. If the Investor Put Option is specified as
being applicable in the applicable Final Terms, upon the holder of any Note giving to the Issuer in accordance with Condition 16
not less than 30 nor more than 60 days’ notice (which notice shall be irrevocable) the Issuer will, upon the expiry of such
notice, redeem, in whole (but not in part), such Note on the Optional Redemption Date and at the Optional Redemption Amount specified
in the applicable Final Terms together, if appropriate, with interest accrued but unpaid to (but excluding) the Optional Redemption
Date.

 

If a Note is in definitive form and held
outside Euroclear and Clearstream, Luxembourg, to exercise the right to require redemption of the Note the holder of the Note must
deliver such Note at the specified office of any Paying Agent (other than the TCCI Transfer Agent or the TMCC Transfer Agent),
in the case of Bearer Notes, or the TCCI Registrar or the TCCI Transfer Agent, in the case of Registered Notes issued by Toyota
Credit Canada Inc., or the TMCC Registrar or the TMCC Transfer Agent, in the case of Registered Notes issued by Toyota Motor Credit
Corporation, at any time during normal business hours of such Paying Agent or the TCCI Registrar or TCCI Transfer Agent or the
TMCC Registrar or TMCC Transfer Agent falling within the notice period, accompanied by a duly completed and signed notice of exercise
in the form (for the time being current) obtainable from any specified office of any Paying Agent, or the TCCI Registrar or the
TCCI Transfer Agent, or the TMCC Registrar or the TMCC Transfer Agent (a “Put Notice”) and in which the holder
must specify a bank account (or, if payment is required to be made by cheque, an address) to which payment is to be made under
this Condition 6(h).

 

If a Note is represented by a global Note
or is in definitive form and held through Euroclear or Clearstream, Luxembourg, to exercise the right to require redemption of
the Note the holder of the Note must, within the notice period, give notice to the Agent, in the case of Bearer Notes, or the TCCI
Registrar or the TCCI Transfer Agent, in the case of Registered Notes issued by Toyota Credit Canada Inc., or the TMCC Registrar
or the TMCC Transfer Agent, in the case of Registered Notes issued by Toyota Motor Credit Corporation, of such exercise in accordance
with the standard procedures of Euroclear and Clearstream, Luxembourg (which may include notice being given on the holder’s
instruction by Euroclear or Clearstream, Luxembourg or any common depositary, or common safekeeper, as the case may be, for them
to the Agent, or the TCCI Registrar or the TCCI Transfer Agent (in the case of Registered Notes issued by Toyota Credit Canada
Inc.), or the TMCC Registrar or the TMCC Transfer Agent (in the case of Registered Notes issued by Toyota Motor Credit Corporation)
by electronic means) in a form acceptable to Euroclear and Clearstream, Luxembourg from time to time.

 

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		(i)	Early Redemption Amounts 

 

For the purpose of Condition 6(b) and Condition
9, the Notes will be redeemed at an amount (the “Early Redemption Amount”) calculated as follows:

 

		(i)	in the case of Notes with a Final Redemption Amount equal to the Calculation Amount, at the Final
Redemption Amount thereof; or

 

		(ii)	in the case of Notes (other than Zero Coupon Notes) with a Final Redemption Amount which is or
may be less or greater than the Calculation Amount or which is payable in a Specified Currency other than that in which the Notes
are denominated, at the amount specified in the applicable Final Terms or, if no such amount is so specified in the applicable
Final Terms, at their nominal amount; or

 

		(iii)	in the case of Zero Coupon Notes, at an amount (the “Amortised Face Amount”)
equal to:

 

		(A)	the sum of (x) the product of (i) either the Calculation Amount or
the Specified Denomination as specified in the applicable Final Terms and (ii) the Reference Price specified in the applicable
Final Terms (the “Reference Amount”) and (y) the product of the Accrual Yield specified in the applicable Final
Terms (compounded annually) being applied to the Reference Amount from (and including) the
Issue Date of the first Tranche of Notes to (but excluding) the date fixed for redemption or (as the case may be) the date upon
which such Note becomes due and repayable; or

 

		(B)	if the amount payable in respect of any Zero Coupon Note upon redemption
of such Zero Coupon Note pursuant to Condition 6(b) or upon its becoming due and repayable as provided in Condition 9 is not paid
or available for payment when due, the amount due and repayable in respect of such Zero Coupon Note shall
be the Amortised Face Amount of such Zero Coupon Note calculated as provided above as though the references in sub-paragraph (A)
to the date fixed for redemption or the date upon which the Zero Coupon Note becomes due and repayable were replaced by
references to the date (the “Reference Date”) which is the earlier of:

 

		(1)	the date on which all amounts due in respect of the Note have been paid; and

 

		(2)	the date on which the full amount of the moneys repayable has been received by the Agent and notice
to that effect has been given in accordance with Condition 16.

 

The calculation of the Amortised
Face Amount in accordance with this sub-paragraph (B) will continue to be made, after as well as before judgment, until the
Reference Date unless the Reference Date falls on or after the Maturity Date, in which case the amount due and repayable shall
be the nominal amount of such Note together with interest at a rate per annum equal to the Accrual Yield.

 

Where any such calculation is to
be made for a period which is not a whole number of years, it shall be made (I) in the case of a Zero Coupon Note other than
a Zero Coupon Note payable in euro, on the basis of a 360-day year consisting of 12 months of 30 days each (or 365/366 days
in the case of Notes denominated in Sterling) and, in the case of an incomplete month, the number of days elapsed or (II) in
the case of a Zero Coupon Note payable in euro, on the basis of the actual number of days elapsed divided by 365 (or, if any of
the days elapsed falls in a leap

 

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year, the sum of (x) the number
of those days falling in a leap year divided by 366 and (y) the number of those days falling in a non-leap year divided by
365).

 

		(j)	Purchases 

 

The Issuer or any of its subsidiaries may
at any time purchase Notes (provided that, in the case of definitive Notes, all unmatured Coupons appertaining thereto are purchased
therewith) at any price in the open market or otherwise. If purchases are made by tender, tenders must be available to all Noteholders
alike. Where the Issuer is Toyota Credit Canada Inc., such Notes shall be surrendered (in the case of Bearer Notes) to any Paying
Agent, or (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Registrar or TCCI Transfer Agent, or (in
the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Registrar or TMCC Transfer Agent, for cancellation
and, where the Issuer is Toyota Motor Finance (Netherlands) B.V., Toyota Finance Australia Limited or Toyota Motor Credit Corporation
such Notes may, at the option of the Issuer, either be (i) resold or reissued, or held by the Issuer for subsequent resale or reissuance,
or (ii) surrendered to any Paying Agent for cancellation, in which event such Notes and Coupons may not be resold or reissued.

 

		(k)	Cancellation 

 

All Notes which are redeemed will forthwith
be cancelled (together with all unmatured Coupons attached thereto or surrendered therewith at the time of redemption). All Notes
so cancelled and any of the Notes purchased and cancelled pursuant to Condition 6(j) (together, in the case of definitive Notes,
with all unmatured Coupons cancelled therewith) shall be forwarded to the Agent and cannot be reissued or resold. If any Note is
purchased and cancelled without all unmatured Coupons appertaining thereto, the Issuer shall make payment in respect of any such
missing Coupon in accordance with Condition 5 as if the relevant Note had remained outstanding for the period to which such Coupon
relates.

 

7.       Taxation
– Additional Amounts

 

(a)       Toyota
Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc. or Toyota Finance Australia Limited

 

This Condition 7(a) only applies to Notes
issued by Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc. or Toyota Finance Australia Limited.

 

Unless otherwise specified in the applicable
Final Terms, all payments of principal and interest in respect of the Notes issued by Toyota Motor Finance (Netherlands) B.V.,
Toyota Credit Canada Inc. or Toyota Finance Australia Limited will be made without withholding or deduction for or on account of
any present or future taxes or duties of whatever nature imposed or levied by or on behalf of the jurisdiction in which the Issuer
is incorporated or any province, territory or other political subdivision or any authority thereof or therein having power to tax,
unless such withholding or deduction is required by law. In such event, the relevant Issuer will pay such additional amounts (the
“Additional Amounts”) as shall be necessary in order that the net amounts receivable by the holders of the Notes
or Coupons after such withholding or deduction shall equal the respective amounts of principal and interest which would otherwise
have been receivable in respect of the Notes or Coupons, as the case may be, in the absence of such withholding or deduction; except
that no such Additional Amounts shall be payable with respect to any Note or Coupon:

 

		(i)	where the Issuer is Toyota Motor Finance (Netherlands) B.V., where the Noteholder or Couponholder
of which (a) would be able to avoid such withholding or deduction or is liable to such withholding or deduction at a reduced rate
by making a declaration of non-residence or producing other evidence establishing that such payment may be made without withholding
or deduction or with such deduction or

 

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withholding
at a reduced rate to the Issuer or the relevant tax authority; or (b) is liable for such taxes or duties in respect of such Note
or Coupon by reason of his having some connection with the Netherlands other than the mere holding of such Note or Coupon; or

 

		(ii)	where the Issuer is Toyota Credit Canada Inc.:

 

		(A)	the holder of which is liable for such taxes or duties in respect of such Note or Coupon by reason
of his having some connection with Canada other than the mere holding of such Note or Coupon or the receipt of principal or interest
in respect thereof;

 

		(B)	the Issuer does not deal at arm’s length (within the meaning of the Income Tax Act (Canada))
with either: (1) the holder of such Note or Coupon, or (2) in the case where a payment is made to a holder of a Coupon, the holder
of the related Note (as applicable); or

 

		(C)	the holder of which is, or does not deal at arm’s length with any person who is, a “specified
shareholder” of TCCI for the purposes of the thin capitalisation rules in the Income Tax Act (Canada);

 

		(iii)	where the Issuer is Toyota Finance Australia Limited, the holder of which is liable for such taxes
or duties in respect of such Note or Coupon:

 

		(A)	by reason of the holder (or a third party acting on its behalf) having some connection with the
Commonwealth of Australia or any political subdivision thereof or therein other than the mere holding of such Note or Coupon or
the receipt of payment in respect thereof; or

 

		(B)	by reason of the holder being a person who could lawfully avoid (but has not so avoided) such withholding
or deduction by complying or procuring that any third party complies with any statutory requirements or by making or procuring
that any third party makes a declaration of non-residence or other similar claim for exemption to any tax authority in the place
where the relevant Note or Coupon is presented for payment; or

 

		(C)	by reason of the holder (or a person with an interest in a Note) being an Offshore Associate of
the Issuer acting other than in the capacity of a clearing house, paying agent, custodian, funds manager or responsible entity
of a registered scheme within the meaning of the Corporations Act 2001 of Australia. “Offshore Associate” means
an associate (as defined in Section 128F(9) of the Income Tax Assessment Act 1936 of Australia) of the Issuer that is either:

 

		(a)	a non-resident of Australia which does not acquire the Notes in carrying on a business at or through
a permanent establishment in Australia; or

 

		(b)	a resident of Australia
that acquires the Notes in carrying on a business at or through a permanent establishment outside Australia; or

 

		(D)	in a case where TFA receives a notice or direction under Section 260-5 of Schedule 1 to the Taxation
Administration Act 1953 of Australia, Section 255 of the Income Tax Assessment Act 1936 of Australia or any analogous provisions,
any amounts paid or deducted from sums payable to the holder by TFA in compliance with such notice or direction; or

 

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		(iv)	in such other circumstances as may be specified in the applicable Final Terms; or

 

		(v)	more than 30 days after the Relevant Date (as defined in Condition 8) except to the extent that
the holder thereof would have been entitled to such Additional Amounts on presenting the same, or making demand, for payment on
such thirtieth day assuming that day to have been a Payment Day (as defined in Condition 5(e)); or

 

		(vi)	where such withholding or deduction is required pursuant to Sections 1471 through to 1474 of the
U.S. Internal Revenue Code of 1986, as amended, any regulations or other guidance promulgated thereunder or any official interpretations
thereof (including under an agreement described under Section 1471(b)), or pursuant to any intergovernmental agreement implementing
an alternative approach thereto or any implementing law in relation thereto.

 

(b)       Toyota
Motor Credit Corporation 

 

This Condition 7(b) only applies to Notes
issued by Toyota Motor Credit Corporation.

 

Except as specifically provided by this
Condition 7(b), where the Issuer is Toyota Motor Credit Corporation, the Issuer shall not be required to make any payment in respect
of the Notes with respect to any tax, assessment or other governmental charge (“Tax”) imposed by any government
or a political subdivision or taxing authority thereof or therein.

 

The Issuer will, subject to certain limitations
and exceptions (set forth below), pay to a Noteholder or Couponholder who is a Non-U.S. Holder (as defined below) such
additional amounts (the “Additional Amounts”) as shall be necessary in order that the net amounts receivable
by the holders of the Notes or Coupons after such withholding or deduction shall equal the respective amounts of principal and
interest which would otherwise have been receivable in respect of the Notes or Coupons, as the case may be, in the absence of such
withholding or deduction; except that the Issuer shall not be required to make any payment of Additional Amounts for or on account
of:

 

		(i)	any Tax which would not have been imposed but for (A) the existence of any present or former
connection between such Noteholder or Couponholder or any beneficial owner of a Note or Coupon (or between a fiduciary, settlor,
beneficiary, member or shareholder of, or possessor of a power over, such Noteholder, Couponholder or beneficial owner, if such
Noteholder, Couponholder or beneficial owner is an estate, trust, partnership or corporation) and the United States, including,
without limitation, being or having been a citizen or resident thereof or being or having been present or engaged in a trade or
business therein or having had a permanent establishment therein, or (B) such Noteholder’s,
Couponholder’s or beneficial owner’s past or present status as a passive foreign investment company, controlled foreign
corporation or a private foundation (as those terms are defined for United States tax purposes) or as a corporation which accumulates
earnings to avoid U.S. federal income tax;

 

		(ii)	any estate, inheritance, gift, sales, transfer, personal property
or similar Tax;

 

		(iii)	any Tax that would not have been so imposed but for the presentation
of a Note or Coupon for payment on a date more than 15 days after the date on which such
payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later;

 

		(iv)	any Tax which is payable otherwise than by deduction or withholding
from payments of principal or interest in respect of the Notes or Coupons;

 

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		(v)	any Tax imposed on interest received or beneficially owned by (A) a 10 per cent. shareholder
of the Issuer within the meaning of U.S. Internal Revenue Code Section 871(h)(3)(B) or Section 881(c)(3)(B) or (B) a
bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business;

 

		(vi)	any Tax required to be withheld or deducted by any Paying Agent from any payment of principal or
interest in respect of any Note or Coupon, if such payment can be made without such withholding or deduction by any other Paying
Agent with respect to the Notes;

 

		(vii)	any Tax which would not have been imposed but for the failure to comply
with certification, information, documentation, or other reporting requirements concerning the nationality, residence, identity
or connection with the United States of the Noteholder or Couponholder or of the beneficial owner of such Note or Coupon, if such
compliance is required by statute or by regulation of the United States Treasury Department as a precondition to relief or exemption
from such Tax including, in the case of Notes with a maturity of more than 183 days (taking into consideration unilateral rights
to roll or extend), failure of the Noteholder or Couponholder or of the beneficial owner of such Note or Coupon, to provide such
certification of non-U.S. beneficial ownership as may be required from time to time under applicable rules, including, if necessary,
a valid U.S. Internal Revenue Service Form W8-BEN or W8-BEN-E;

 

		(viii)	any Tax imposed with respect to a payment on a Note or Coupon to any Noteholder or Couponholder
who is a fiduciary or partnership or other than the sole beneficial owner of the Note or Coupon to the extent a beneficiary or
settlor with respect to such fiduciary, a member of such partnership or a beneficial owner of the Note or Coupon would not have
been entitled to payment of the Additional Amounts, had such beneficiary, settlor, member or beneficial owner been the holder of
the Note or Coupon;

 

		(ix)	any Tax required to be withheld or deducted pursuant to Sections
1471 through to 1474 of the U.S. Internal Revenue Code of 1986, as amended, any regulations or other guidance promulgated thereunder
or any official interpretations thereof (including under an agreement described under Section 1471(b)), or pursuant to any intergovernmental
agreement implementing an alternative approach thereto or any implementing law in relation thereto;
or

 

		(x)	any combination of items (i), (ii), (iii), (iv), (v), (vi), (vii), (viii) and (ix) above.

 

The term “Non-U.S. Holder”
means any Holder that is not for U.S. federal income tax purposes (i) a citizen or resident of the United States, (ii) a corporation,
partnership or other entity organised in or under the laws of the United States or its political subdivisions, (iii) a trust subject
to the control of a U.S. person and the primary supervision of a U.S. court, or (iv) an estate the income of which is subject to
U.S. federal income taxation regardless of its source.

 

8.       Prescription

 

Unless provided otherwise in the applicable
Final Terms, Notes and Coupons will become void unless claims in respect of principal and/or interest are made within a period
of five years after the Relevant Date (as defined below) therefor.

 

There shall
not be included in any Coupon sheet issued on exchange of a Talon any Coupon the claim for payment in respect of
which would be void pursuant to this Condition 8 or Condition 5(b) or any Talon which would be void pursuant to Condition 5(b).

 

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Any moneys paid by the Issuer to the Agent,
or (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Registrar or the TCCI Transfer Agent, or (in
the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Registrar or the TMCC Transfer Agent, for the
payment of principal or interest in respect of the Notes and remaining unclaimed for a period of five years shall forthwith be
repaid to the Issuer. All liability of the Issuer, the Agent, the TCCI Registrar or the TCCI Transfer Agent, the TMCC Registrar
or the TMCC Transfer Agent with respect thereto shall cease when the Notes and Coupons become void.

 

As used herein,
the “Relevant Date” means the date on which such payment first becomes due, except that, if the full amount
of the moneys payable has not been duly received by the Agent or, as the case may be, the Registrar on
or prior to such due date, it means the date on which, the full amount of such moneys having been so received, notice to that effect
is duly given to the Noteholders in accordance with Condition 16. 

 

9.       Events
of Default

 

(a)       In
the event that (each of (i) through to (iv) below, an “Event of Default”):

 

		(i)	default is made by the Issuer in the payment when due of any
principal or interest in respect of any Note and the default continues unremedied for a period
of 14 days after the date when due; or

 

		(ii)	default is made by the Issuer in the performance or observance of any covenant, condition or provision
contained in these Terms and Conditions applicable to the Notes or of any covenant, condition or provision for the benefit of Noteholders
contained in the Agency Agreement and on its part to be performed or observed (other than the covenant to pay the principal and
interest in respect of the Notes) and at the expiration of any applicable grace period therefor such covenant, condition or provision
is not performed or observed in the period of 60 consecutive days after the date on which written notice of such default, requiring
the Issuer to perform or observe such covenant, condition or provision, first shall have been given to the Issuer and the Agent,
or (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Registrar and the TCCI Transfer Agent, or (in
the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Registrar and the TMCC Transfer Agent, by the
holders of not less than 25 per cent. in aggregate nominal amount of Notes then outstanding; or

 

		(iii)	the entry by a court having competent jurisdiction of (a) a decree or order granting relief
in respect of the Issuer in an involuntary proceeding under any applicable bankruptcy, insolvency or other similar law and such
decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or
(b) a decree or order adjudging the Issuer to be insolvent, or approving a petition seeking reorganisation, arrangement, adjustment
or composition of the Issuer and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days;
or (c) a final and non-appealable order appointing a custodian, receiver, liquidator, assignee, trustee or other similar official
of the Issuer or of any substantial part of the property of the Issuer, or ordering the winding up or liquidation of the Issuer,
in each case of (a), (b) or (c) otherwise than for the purposes of or pursuant to and followed by a consolidation, amalgamation,
merger, reconstruction or reorganisation in which a continuing corporation effectively assumes all obligations of the Issuer under
the Notes or the terms of which have previously been approved by the written consent of holders of a majority in aggregate nominal
amount of the Notes then outstanding affected thereby, or by resolution adopted by the holders of a majority in aggregate nominal
amount of such Notes then

 

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outstanding present or represented
at a meeting of the holders of the Notes affected thereby at which a quorum is present, as provided in the Agency Agreement; or

 

		(iv)	the commencement by the Issuer of a voluntary proceeding under any applicable bankruptcy, insolvency
or other similar law or the consent of the Issuer to the entry of a decree or order for relief in an involuntary proceeding under
any applicable bankruptcy, insolvency or other similar law, or the consent by the Issuer to
the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee or similar official of the Issuer
or for any substantial part of the property of the Issuer or the making by the Issuer of a general assignment for the benefit of
creditors, or the Issuer failing generally to pay its debts as they become due, or the taking of corporate action by the Issuer
in furtherance of any such action (in each case otherwise than for the purposes of such a consolidation, amalgamation, merger,
reconstruction or reorganisation as is referred to in paragraph (iii)),

 

then the holder of any Note
may, at its option, declare the principal of such Note and the interest, if any, accrued but unpaid thereon to be due and payable
immediately by written notice to the Issuer and the Agent, or (in the case of Registered Notes issued by Toyota Credit Canada Inc.)
the TCCI Registrar and the TCCI Transfer Agent, or (in the case of Registered Notes issued by Toyota Motor Credit Corporation)
the TMCC Registrar and the TMCC Transfer Agent, and unless all such defaults shall have been remedied by the Issuer (or by the
Parent or TFS pursuant to the relevant Credit Support Agreement) prior to receipt of such written notice, the principal of such
Note and the interest, if any, accrued but unpaid thereon shall become and be immediately due and payable.

 

At any time after such declaration
of acceleration with respect to the Notes has been made and before a judgment or decree for payment of the money due with respect
to any Note has been obtained by any Noteholder, such declaration and its consequences may be rescinded and annulled upon the written
consent of holders of a majority in aggregate nominal amount of the Notes then outstanding affected thereby, or by resolution adopted
by the holders of a majority in aggregate nominal amount of the Notes then outstanding present or represented at a meeting of holders
of the Notes affected thereby at which a quorum is present, as provided in the Agency Agreement, if:

 

		(1)	the Issuer has paid to, or deposited with, the Agent, or (in the case of Registered Notes issued
by Toyota Credit Canada Inc.) the TCCI Transfer Agent, or (in the case of Registered Notes issued by Toyota Motor Credit Corporation)
the TMCC Transfer Agent, a sum sufficient to pay:

 

(A)       all
overdue payments of interest on the Notes; and

 

		(B)	the principal of the Notes which has become due otherwise than by such declaration of acceleration;
and

 

		(2)	all Events of Default with respect to the Notes, other than the non-payment
of the principal of such Notes which has become due solely by such declaration of acceleration,
have been either (i) remedied or (ii) waived as provided in paragraph (b) below.

 

No such rescission shall affect
any subsequent default or impair any right consequent thereon.

 

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		(b)	Any Events of Default by the Issuer, other than the events described
in paragraph (a)(i) above or in respect of where a default
is made by the Issuer in the performance or observance of any covenant, condition or provision described in paragraph (a)(ii) above
which cannot be modified and amended without the written consent of the holders of all outstanding Notes, may be waived by the
written consent of holders of a majority in aggregate nominal amount of the Notes then outstanding affected thereby, or by resolution
adopted by the holders of a majority in aggregate nominal amount of the Notes then outstanding present or represented at a meeting
of the holders of the Notes affected thereby at which a quorum is present, as provided in the Agency Agreement (provided that such
resolution shall be approved by the holders of not less than 25 per cent. of the aggregate nominal amount of Notes then outstanding
affected thereby).

 

10.       Replacement
of Notes, Coupons and Talons

 

Should any Note, Coupon or Talon be lost,
stolen, mutilated, defaced or destroyed, it may be replaced at the specified office of the Agent in London, or (in the case of
Registered Notes issued by Toyota Credit Canada Inc.) at the specified offices of the TCCI Registrar or the TCCI Transfer Agent,
or (in the case of Registered Notes issued by Toyota Motor Credit Corporation) at the specified offices of the TMCC Registrar or
the TMCC Transfer Agent (or such other place outside the United States as may be notified to the Noteholders), in accordance with
all applicable laws and regulations, upon payment by the claimant of such costs and expenses as may be incurred by the Issuer and
the Agent or the TCCI Registrar or TCCI Transfer Agent or the TMCC Registrar or TMCC Transfer Agent, as the case may be, in connection
therewith and on such terms as to evidence and indemnity, security or otherwise as the Issuer and the Agent or the TCCI Registrar
or TCCI Transfer Agent or the TMCC Registrar or Transfer Agent, as the case may be, may require. Mutilated or defaced Notes, Coupons
or Talons must be surrendered before replacements will be issued.

 

11.       Agent
and Paying Agents, Registrars and Transfer Agents

 

The names of the initial Agent, the initial
TCCI Registrar, the initial TCCI Transfer Agent, the initial TMCC Registrar and the initial TMCC Transfer Agent and their initial
specified offices are set out below.

 

In acting under the Agency Agreement or
the TCCI Note Agency Agreement or the TMCC Note Agency Agreement, the Agent and any other Paying Agents and (in the case of the
TCCI Note Agency Agreement only) the TCCI Registrar and the TCCI Transfer Agent and (in the case of the TMCC Note Agency Agreement
only) the TMCC Registrar and the TMCC Transfer Agent act solely as agents of the Issuer and do not assume any obligation to, or
relationship of agency or trust with, any Noteholders or Couponholders. The Issuer agrees to perform and observe the obligations
imposed upon it under the Agency Agreement and (in respect of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Note
Agency Agreement and (in respect of Notes issued by Toyota Motor Credit Corporation) the TMCC Note Agency Agreement and to use
reasonable efforts to cause the Agent and any other Paying Agents to perform and observe the obligations imposed upon them under
the Agency Agreement and (in respect of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Registrar and the TCCI Transfer
Agent, to perform and observe the obligations imposed on them under the TCCI Note Agency Agreement and (in respect of Registered
Notes issued by Toyota Motor Credit Corporation) the TMCC Registrar and the TMCC Transfer Agent, to perform and observe the obligations
imposed on them under the TMCC Note Agency Agreement. The Agency Agreement and (in respect of Registered Notes issued by Toyota
Credit Canada Inc.) the TCCI Note Agency Agreement and (in respect of Registered Notes issued by Toyota Motor Credit Corporation)
the TMCC Note Agency Agreement, contain provisions for the indemnification of the Agent and any other Paying Agents, the TCCI Registrar
and the TCCI Transfer Agent and the TMCC Registrar and the TMCC Transfer Agent, respectively, and for relief from responsibility
in certain circumstances, and entitle any of them to enter into business

 

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transactions with the Issuer without being
liable to account to the Noteholders or the Couponholders for any resulting profit.

 

The Issuer is entitled to vary or terminate
the appointment of any Paying Agent appointed under the terms of the Agency Agreement, or the TCCI Registrar or the TCCI Transfer
Agent appointed under the terms of the TCCI Note Agency Agreement, or the TMCC Registrar or the TMCC Transfer Agent appointed under
the terms of the TMCC Note Agency Agreement, and/or appoint additional or other Paying Agents or Transfer Agents and/or approve
any change in the specified office through which any Paying Agent, TCCI Registrar, TCCI Transfer Agent, TMCC Registrar or TMCC
Transfer Agent acts, provided that:

 

		(i)	so long as the Notes are admitted to trading or listed on any stock
exchange or other relevant authority, there will at all times be a Paying Agent with a specified office in such place as may be
required by the rules and regulations of the relevant stock exchange or other relevant authority;

 

		(ii)	there will at all times be an Agent; and

 

		(iii)	in respect of Registered Notes issued by Toyota Credit Canada Inc., there will at all times be
a TCCI Registrar and in respect of Registered Notes issued by Toyota Motor Credit Corporation, there will at all times be a TMCC
Registrar.

 

In addition, the Issuer shall forthwith
appoint a Paying Agent having a specified office in the United States only in the circumstances described in the final paragraph
of Condition 5(d). Any variation, termination, appointment or change shall only take effect (other than in the case of insolvency,
when it shall be of immediate effect) after not less than 30 or more than 45 days’ prior notice thereof shall have been given
to the Noteholders in accordance with Condition 16.

 

In addition, in relation to Registered
Notes issued or to be issued by it, Toyota Credit Canada Inc. or Toyota Motor Credit Corporation, as the case may be, is entitled
to vary or terminate the appointment of any registrar, transfer agent or paying agent and/or appoint additional transfer agents,
paying agents and/or approve any change in the specified office through which any such registrar, transfer agent or paying agent
acts, provided that there will at all times be a registrar and a paying agent capable of making payments in the Specified Currency
and (in the case of global Registered Notes) to the clearing system specified in the applicable Final Terms.

 

The Agency Agreement or the TCCI Note Agency
Agreement or the TMCC Note Agency Agreement contains provisions permitting any entity into which any Paying Agent and (in the case
of the TCCI Note Agency Agreement and the TMCC Note Agency Agreement only) any registrar, paying agent or transfer agent is merged
or converted or with which it is consolidated or to which it transfers all or substantially all of its assets to become the successor
paying agent, registrar or transfer agent (as appropriate).

 

12.       Exchange
of Talons 

 

On and after the Interest Payment Date,
on which the final Coupon comprised in any Coupon sheet matures, the Talon (if any) forming part of such Coupon sheet may be surrendered
at the specified office of the Agent or any other Paying Agent in exchange for a further Coupon sheet including (if such further
Coupon sheet does not include Coupons to (and including) the final date for the payment of interest due in respect of the Note
to which it appertains) a further Talon, subject to the provisions of Condition 8. Each Talon shall, for the purposes of these
Terms and Conditions, be deemed to mature on the Interest Payment Date on which the final Coupon comprised in the relative Coupon
sheet matures.

 

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13.       Consolidation
or Merger 

 

The Issuer may consolidate with, or sell,
lease or convey all or substantially all of its assets as an entirety to, or merge with or into any other corporation provided
that in any such case, (i) either the Issuer shall be the continuing corporation, or the successor corporation shall be a
corporation organised and existing under the laws of the jurisdiction in which the Issuer is incorporated or any province, territory,
state or other political subdivision thereof and such successor corporation shall expressly assume the due and punctual payment
of the principal of and interest (including Additional Amounts as provided in Condition 7) on all the Notes and Coupons, according
to their tenor, and the due and punctual performance and observance of all of the covenants and conditions of the Notes to be performed
by the Issuer by an amendment to the Agency Agreement or, as the case may be, the TCCI Note Agency Agreement or the TMCC Note Agency
Agreement, executed by such successor corporation, the Issuer and the Agent or the TCCI Registrar and the TCCI Transfer Agent or
the TMCC Registrar and the TMCC Transfer Agent, as the case may be, and (ii) immediately after giving effect to such transaction,
no Event of Default under Condition 9, and no event which, with notice or lapse of time or both, would become such an Event of
Default shall have happened and be continuing. In case of any such consolidation, merger, sale, lease or conveyance and upon any
such assumption by the successor corporation, such successor corporation shall succeed to and be substituted for the Issuer, with
the same effect as if it had been named herein as the Issuer, and the predecessor corporation, except in the event of a conveyance
by way of lease, shall be relieved of any further obligation under the Notes and the Agency Agreement or, as the case may be, the
TCCI Note Agency Agreement or the TMCC Note Agency Agreement.

 

14.       Substitution

 

The Issuer (the “Retiring Issuer”
and the expressions “Issuer” and “Retiring Issuer” include any previous relevant Substitute
Issuer (as defined below) under this Condition 14) may, without the consent of the relevant Noteholders or Couponholders, substitute
the Parent or any subsidiary of the Parent (including TFS) in place of the Issuer as the principal debtor under the Notes, the
relative Coupons, the Agency Agreement and (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Note
Agency Agreement and (in the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Note Agency Agreement
(the “Substitute Issuer”) provided that:

 

(a)       in
the case of the substitution of a subsidiary of the Parent (other than TFS or any other Issuer) in place of the Retiring Issuer,
a Credit Support Agreement, in the case of a subsidiary of TFS, between such subsidiary and TFS being entered into, and the TMC
Credit Support Agreement applying, mutatis mutandis on the terms of the relevant Credit Support Agreement and the TMC Credit
Support Agreement, respectively and, in the case of a subsidiary of the Parent (and not being also a subsidiary of TFS) a Credit
Support Agreement between such subsidiary and the Parent being entered into mutatis mutandis on the terms of the TMC Credit
Support Agreement;

 

(b)       a
deed poll substantially in the form set out in Appendix G to the Agency Agreement (and such other documents (if any)) shall be
executed by the Substitute Issuer and the Retiring Issuer as may be necessary to give full effect to the substitution (the “Substitution
Documents”) and (without limiting the generality of the foregoing) under which (i) the Substitute Issuer shall undertake
in favour of the relevant Noteholders and Couponholders to be bound by the terms and conditions of the relevant Notes and Coupons,
the provisions of the Agency Agreement and (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the provisions
of the TCCI Note Agency Agreement and (in the case of Registered Notes issued by Toyota Motor Credit Corporation) the provisions
of the TMCC Note Agency Agreement, as fully as if the Substitute Issuer had been named in the relevant Notes and Coupons, the Agency
Agreement and (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Note Agency Agreement and (in the
case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Note

 

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Agency Agreement, as the principal debtor
in respect of the relevant Notes and Coupons, the Agency Agreement and (in the case of Registered Notes issued by Toyota Credit
Canada Inc.) the TCCI Note Agency Agreement and (in the case of Registered Notes issued by Toyota Motor Credit Corporation) the
TMCC Note Agency Agreement, in place of the Retiring Issuer; and (ii) the Retiring Issuer shall be released from its obligations
as principal debtor in respect of the relevant Notes and Coupons, the Agency Agreement and (in the case of Registered Notes issued
by Toyota Credit Canada Inc.) the TCCI Note Agency Agreement and (in the case of Registered Notes issued by Toyota Motor Credit
Corporation) the TMCC Note Agency Agreement;

 

(c)       without
prejudice to the generality of paragraph (b) above, where the Substitute Issuer is subject generally to a taxing jurisdiction differing
from or in addition to the taxing jurisdiction to which the Retiring Issuer for which it shall have been substituted under this
Condition 14 was subject, the Substitute Issuer shall undertake or covenant in the Substitution Documents in terms corresponding
to the provisions of Condition 7 with the substitution for or addition to the references to the taxing jurisdiction to which the
Retiring Issuer, as the case may be, was subject of references to the taxing jurisdiction or additional taxing jurisdiction to
which such Substitute Issuer, as the case may be, is subject and in such case, Condition 7 shall be deemed to be modified accordingly
when such substitution takes effect;

 

(d)       the
Substitution Documents shall contain a warranty and representation (i) that the Substitute Issuer and the Retiring Issuer have
obtained all necessary governmental and regulatory approvals and consents for the substitution and that the Substitute Issuer has
obtained all necessary governmental and regulatory approvals and consents for the performance by the Substitute Issuer of its obligations
under the Substitution Documents and that all such approvals and consents are in full force and effect, (ii) that the obligations
assumed by the Substitute Issuer in respect of the relevant Notes and Coupons, the Agency Agreement and (in the case of Registered
Notes issued by Toyota Credit Canada Inc.) the TCCI Note Agency Agreement and (in the case of Registered Notes issued by Toyota
Motor Credit Corporation) the TMCC Note Agency Agreement are, in each case, valid and binding in accordance with their respective
terms and enforceable by each relevant Noteholder, and (iii) the Substitute Issuer is solvent;

 

(e)       any
credit rating obtained by the Retiring Issuer from a nationally recognised statistical rating organisation which applies to the
relevant Notes will not be downgraded as a result of the substitution;

 

(f)       each
stock exchange on which the relevant Notes are admitted to trading shall have confirmed that, following the proposed substitution
of the Substitute Issuer, such Notes will continue to be admitted to trading on such stock exchange;

 

(g)       where
the Substitute Issuer is not a company incorporated in the United Kingdom, the Substitute Issuer shall have appointed a process
agent as its agent in England to receive service of process on its behalf in relation to any legal action or proceedings arising
out of or in connection with the relevant Notes and Coupons, the Agency Agreement and (in the case of Registered Notes issued by
Toyota Credit Canada Inc.) the TCCI Note Agency Agreement and (in the case of Registered Notes issued by Toyota Motor Credit Corporation)
the TMCC Note Agency Agreement;

 

(h)       in
the case of substitution of TCCI or a Canadian subsidiary of the Parent (“Canadian Replacement Subsidiary”)
in place of the Retiring Issuer, no withholding or other taxes will be payable or required to be withheld by any such Substitute
Issuer other than in respect of a holder of the relevant Notes or Coupons that: (i) does not deal at arm’s length (within
the meaning of the Income Tax Act (Canada)) with TCCI or the Canadian Replacement Subsidiary (as applicable) or (ii) is, or does
not deal at arm’s length with any person who is, a “specified shareholder” of TCCI or the Canadian Replacement
Subsidiary (as applicable) for the purposes of the thin capitalisation rules in the Income Tax Act (Canada);

 

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(i)       legal
opinions shall have been delivered to the Agent or (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI
Registrar or (in the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Registrar (from whom copies will
be available) (in each case dated not more than three days prior to the intended date of substitution) from legal advisers of good
standing selected by the Substitute Issuer (i) in each jurisdiction in which the Substitute Issuer and the Retiring Issuer are
incorporated and in England confirming, as appropriate, that upon the substitution taking place, the Substitution Documents constitute
legal, valid and binding obligations of the Substitute Issuer and the relevant Notes and Coupons, the Agency Agreement and (in
the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Note Agency Agreement and (in the case of Registered
Notes issued by Toyota Motor Credit Corporation) the TMCC Note Agency Agreement, are legal, valid and binding obligations of the
Substitute Issuer enforceable in accordance with their terms; and (ii) in Japan and in the jurisdiction in which the Substitute
Issuer is incorporated, in the event any Credit Support Agreements are entered into under paragraph (a) above, confirming that
any such Credit Support Agreements constitute legal, valid and binding obligations of the Parent, TFS and the Substitute Issuer,
as the case may be, enforceable in accordance with its terms; and

 

(j)       in
connection with any such substitution, the Substitute Issuer and the Retiring Issuer shall not have regard to the consequences
of such substitution for individual Noteholders resulting from their being for any purpose domiciled or resident in, or otherwise
connected with, or subject to the jurisdiction of, any particular territory and no person shall be entitled to claim whether from
the Substitute Issuer, the Retiring Issuer, the Agent, (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the
TCCI Registrar and the TCCI Transfer Agent, (in the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC
Registrar and the TMCC Transfer Agent, or any other person, any indemnification or payment in respect of any tax consequence of
any such substitution upon any person except to the extent already provided in Condition 7 and/or any undertaking given in addition
thereto or in substitution therefor in the Substitution Documents in accordance with paragraph (c) above.

 

Upon execution of the
Substitution Documents as referred to in paragraph (b) above, (i) the Substitute Issuer shall be the relevant Issuer named in the
relevant Notes and Coupons, the Agency Agreement and (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the
TCCI Note Agency Agreement and (in the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Note Agency
Agreement as principal debtor in place of the Retiring Issuer and the relevant Notes and Coupons, the Agency Agreement and (in
the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Note Agency Agreement and (in the case of Registered
Notes issued by Toyota Motor Credit Corporation) the TMCC Note Agency Agreement, shall thereby be deemed to be amended to give
effect to the substitution of the Substitute Issuer as principal debtor; and (ii) the Retiring Issuer shall be released as aforesaid
from all of its obligations as principal debtor in respect of the relevant Notes and Coupons, the Agency Agreement and (in the
case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Note Agency Agreement and (in the case of Registered Notes
issued by Toyota Motor Credit Corporation) the TMCC Note Agency Agreement. With effect on and from the time of the substitution
of the Substitute Issuer in place of the Retiring Issuer:

 

(A)       the
Retiring Issuer has no further obligations to any Noteholder or Couponholder in relation to the relevant Notes and Coupons;

 

(B)       the
Substitute Issuer has rights which the Retiring Issuer had in respect of the relevant Notes and Coupons (in each case subject to
paragraph (c) above); and

 

(C)       the
Substitute Issuer has assumed the obligations towards the Noteholders and Couponholders which the Retiring Issuer had in respect
of the relevant Notes and Coupons.

 

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The Substitution Documents shall be deposited
with and held by the Agent and (in the case of Registered Notes issued by Toyota Credit Canada Inc.) copied to the TCCI Registrar
and (in the case of Registered Notes issued by Toyota Motor Credit Corporation) copied to the TMCC Registrar, for so long as any
of the relevant Notes remain outstanding and for so long as any claim made against the Substitute Issuer or the Retiring Issuer
by any Noteholder or Couponholder in relation to the relevant Notes, Coupons, the Agency Agreement, or (in the case of Registered
Notes issued by Toyota Credit Canada Inc.) the TCCI Note Agency Agreement or (in the case of Registered Notes issued by Toyota
Motor Credit Corporation) the TMCC Note Agency Agreement, or the Substitution Documents shall not have been finally adjudicated,
settled or discharged. The Substitute Issuer and the Retiring Issuer shall acknowledge in the Substitution Documents the right
of every Noteholder to the production of the Substitution Documents for the enforcement of any of the relevant Notes, Coupons,
the Agency Agreement, or (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Note Agency Agreement,
or (in the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Note Agency Agreement, or the Substitution
Documents.

 

Within 14 days of a substitution taking
effect under this Condition 14, the Retiring Issuer shall give notice of such substitution to the relevant Noteholders in accordance
with Condition 16.

 

15.       Meetings,
Modifications and Waivers

 

The Agency Agreement, the TCCI Note Agency
Agreement and the TMCC Note Agency Agreement contain provisions which, unless otherwise provided in the Final Terms, are binding
on the Issuer, the Noteholders and the Couponholders, for convening meetings of holders of Notes and Coupons to consider matters
affecting their interests, including the modification or waiver of the Terms and Conditions applicable to the Notes.

 

The Agency Agreement, (in the case of Registered
Notes issued by Toyota Credit Canada Inc.) the TCCI Note Agency Agreement, (in the case of Registered Notes issued by Toyota Motor
Credit Corporation) the TMCC Note Agency Agreement, the Notes and any Coupons attached to the Notes may be amended by the Issuer
and (in the case of the Agency Agreement) the Agent and (in the case of the TCCI Note Agency Agreement) the TCCI Registrar and
the TCCI Transfer Agent, and (in the case of the TMCC Note Agency Agreement) the TMCC Registrar and the TMCC Transfer Agent, without
the consent of the holder of any Note or Coupon (i) for the purpose of curing any ambiguity, or for curing, correcting or
supplementing any defective provision contained therein, or to evidence the succession of another corporation to the Issuer as
provided in Condition 13 or provide for substitution of the Issuer as provided in Condition 14, (ii) to make any further modifications
of the terms of the Agency Agreement, or (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Note Agency
Agreement, or (in the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Note Agency Agreement, necessary
or desirable to allow for the issuance of any additional Notes (which modifications shall not be materially adverse to holders
of outstanding Notes), or (iii) in any manner which the Issuer and (in the case of the Agency Agreement) the Agent and (in
the case of the TCCI Note Agency Agreement) the TCCI Registrar and the TCCI Transfer Agent and (in the case of the TMCC Note Agency
Agreement) the TMCC Registrar and the TMCC Transfer Agent may deem necessary or desirable and which shall not materially adversely
affect the interests of the holders of the Notes and Coupons. In addition, with the written consent of holders of a majority in
aggregate nominal amount of the Notes then outstanding affected thereby, or by resolution adopted by the holders of a majority
in aggregate nominal amount of Notes then outstanding present or represented at a meeting of the holders of the Notes affected
thereby at which a quorum is present, as provided in the Agency Agreement (provided that such resolution shall be approved by the
holders of not less than 25 per cent. of the aggregate nominal amount of Notes then outstanding affected thereby), the Issuer
and the Agent and (in the case of the TCCI Note Agency Agreement) the TCCI Registrar and the TCCI Transfer Agent and (in the case
of the TMCC Note Agency Agreement) the TMCC Registrar and the TMCC Transfer Agent may from time to time and at any time enter into
agreements modifying or amending the Agency Agreement,

 

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or (in the case of Registered Notes issued
by Toyota Credit Canada Inc.) the TCCI Note Agency Agreement, or (in the case of Registered Notes issued by Toyota Motor Credit
Corporation) the TMCC Note Agency Agreement, or the terms and conditions of the Notes and Coupons for the purpose of adding any
provisions to or changing in any manner or eliminating any provisions of the Agency Agreement, or (in the case of Registered Notes
issued by Toyota Credit Canada Inc.) the TCCI Note Agency Agreement, or (in the case of Registered Notes issued by Toyota Motor
Credit Corporation), the TMCC Note Agency Agreement, or of modifying in any manner the rights of the holders of Notes and Coupons;
provided, however, that no such agreement shall, without the consent or the affirmative vote of the holder of each Note affected
thereby, (i) change the stated maturity of the principal of or any instalment of interest on any Note, (ii) reduce the
nominal amount of or interest on any Note, (iii) change the obligation of the Issuer to pay Additional Amounts as provided
in Condition 7, (iv) reduce the percentage in nominal amount of outstanding Notes the consent of the holders of which is necessary
to modify or amend the Agency Agreement, or (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Note
Agency Agreement, or (in the case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Note Agency Agreement,
or the terms and conditions of the Notes or to waive any future compliance or past default, or (v) reduce the percentage in
nominal amount of outstanding Notes the consent of the holders of which is required at any meeting of holders of Notes at which
a resolution is adopted. The quorum at any meeting called to adopt a resolution will be persons holding or representing a majority
in aggregate nominal amount of the Notes then outstanding affected thereby and at any adjourned meeting will be one or more persons
holding or representing 25 per cent. in aggregate nominal amount of such Notes then outstanding affected thereby. Any instrument
given by or on behalf of any holder of a Note in connection with any consent to any such modification, amendment or waiver will
be irrevocable once given and will be conclusive and binding on all subsequent holders of such Note. Any modifications, amendments
or waivers to the Agency Agreement, or (in the case of Registered Notes issued by Toyota Credit Canada Inc.) to the TCCI Note Agency
Agreement, or (in the case of Registered Notes issued by Toyota Motor Credit Corporation) to the TMCC Note Agency Agreement, or
to the terms and conditions of the Notes and Coupons will be conclusive and binding on all holders of Notes and Coupons, whether
or not they have given such consent or were present at any meeting, and whether or not notation of such modifications, amendments
or waivers is made upon the Notes and Coupons. It shall not be necessary for the consent of the holders of Notes under this Condition
15 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent shall approve the substance
thereof.

 

Notes authenticated and delivered after
the execution of any amendment to the Agency Agreement, or (in the case of Registered Notes issued by Toyota Credit Canada Inc.)
to the TCCI Note Agency Agreement, or (in the case of Registered Notes issued by Toyota Motor Credit Corporation) to the TMCC Note
Agency Agreement, the Notes or Coupons may bear a notation in form approved by the Agent, or (in the case of Registered Notes issued
by Toyota Credit Canada Inc.) the TCCI Registrar and the TCCI Transfer Agent, or (in the case of Registered Notes issued by Toyota
Motor Credit Corporation) the TMCC Registrar and the TMCC Transfer Agent, as to any matter provided for in such amendment to the
Agency Agreement or (in the case of Registered Notes issued by Toyota Credit Canada Inc.) to the TCCI Note Agency Agreement or
(in the case of Registered Notes issued by Toyota Motor Credit Corporation) to the TMCC Note Agency Agreement.

 

New Notes so modified as to conform, in
the opinion of the Agent or (in the case of Registered Notes issued by Toyota Credit Canada Inc.) the TCCI Registrar or (in the
case of Registered Notes issued by Toyota Motor Credit Corporation) the TMCC Registrar and the Issuer, to any modification contained
in any such amendment may be prepared by the Issuer, authenticated by the Agent or (in the case of Registered Notes issued by Toyota
Credit Canada Inc.) the TCCI Registrar or the TCCI Transfer Agent or (in the case of Registered Notes issued by Toyota Motor Credit
Corporation) the TMCC Registrar or the TMCC Transfer Agent and delivered in exchange for the Notes then outstanding.

 

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For the purposes of this Condition 15,
Condition 3 and Condition 9, the term “outstanding” means, in relation to the Notes, all Notes issued under
the Agency Agreement or the TCCI Note Agency Agreement or the TMCC Note Agency Agreement other than (i) those which have been
redeemed in full in accordance with the Agency Agreement or the TCCI Note Agency Agreement or the TMCC Note Agency Agreement or
these Terms and Conditions, (ii) those in respect of which the date for redemption in accordance with these Terms and Conditions
has occurred and the redemption moneys therefor (including all interest (if any) accrued but unpaid thereon to the date for such
redemption and any interest (if any) payable under these Terms and Conditions after such date) have been duly paid to the Agent
as provided in the Agency Agreement or (in the case of Registered Notes issued by Toyota Credit Canada Inc.) to the TCCI Registrar
or the TCCI Transfer Agent or (in the case of Registered Notes issued by Toyota Motor Credit Corporation) to the TMCC Registrar
or the TMCC Transfer Agent (and, where appropriate, notice has been given to the Noteholders in accordance with Condition 16) and
remain available for payment against presentation of the Notes, (iii) those which have become void under Condition 8, (iv) those
which have been purchased or otherwise acquired and cancelled as provided in Condition 6, and those which have been purchased or
otherwise acquired and are being held by the Issuer for subsequent resale or reissuance as provided in Condition 6 during the time
so held, (v) those mutilated or defaced Notes which have been surrendered in exchange for replacement Notes pursuant to Condition
10, (vi) (for the purposes only of determining how many Notes are outstanding and without prejudice to their status for any
other purpose) those Notes alleged to have been lost, stolen or destroyed and in respect of which replacement Notes have been issued
pursuant to Condition 10, and (vii) temporary global Notes to the extent that they shall have been duly exchanged in whole
for permanent global Notes or definitive Notes and permanent global Notes or global Registered Notes to the extent that they shall
have been duly exchanged in whole for definitive Notes, in each case pursuant to their respective provisions.

 

16.       Notices

 

All notices regarding the Notes shall be
validly given if published in a leading English language daily newspaper of general circulation in London (which is expected to
be the Financial Times) or, if this is not practicable, one other such English language newspaper as the Issuer, in consultation
with the Agent, shall decide. The Issuer shall also ensure that notices are duly published in a manner which complies with the
rules and regulations of any stock exchange on which the Notes are for the time being admitted to trading or are listed by another
relevant authority. Any such notice published as aforesaid shall be deemed to have been given on the date of such publication or,
if published more than once, on the date of the first such publication. Couponholders will be deemed for all purposes to have notice
of the contents of any notice given to the holders of the Notes in accordance with this Condition 16.

 

Until such time as any definitive Notes
are issued, so long as the global Note(s) is or are held in its or their entirety on behalf of Euroclear and Clearstream, Luxembourg,
there may be substituted for such publication in such newspaper the delivery of the relevant notice to Euroclear and Clearstream,
Luxembourg for communication by them to the holders of the Notes; provided that, for so long as any Notes are admitted to trading
on a stock exchange or are listed by another relevant authority and the rules of that stock exchange or relevant authority so require,
such notice will be published in a daily newspaper of general circulation in the place or places required by those rules. Any notice
delivered to Euroclear and Clearstream, Luxembourg shall be deemed to have been given to the holders of the Notes on the third
day after the day on which the said notice was given to Euroclear and Clearstream, Luxembourg, or on such other day as is specified
in the applicable Final Terms.

 

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Notices to holders of Registered Notes
in definitive form will be deemed to be validly given if sent by mail to them (or, in the case of joint holders of Registered Notes
issued by Toyota Credit Canada Inc., to the first-named in the TCCI Register or, in the case of joint holders of Registered Notes
issued by Toyota Motor Credit Corporation, to the first-named in the TMCC Register) at their respective addresses as recorded in
such register, and will be deemed to have been validly given on the fourth business day after the date of such mailing.

 

Notices to be given by any holder of the
Notes shall be in writing and given by lodging the same, together with the relative Note or Notes, in the case of Bearer Notes,
with the Agent or, in the case of Registered Notes issued by Toyota Credit Canada Inc., with the TCCI Registrar or, in the case
of Registered Notes issued by Toyota Motor Credit Corporation, with the TMCC Registrar. While any of the Notes are represented
by a global Note, such notice may be given by any holder of a Note to, in the case of Bearer Notes, the Agent or, in the case of
Registered Notes issued by Toyota Credit Canada Inc., the TCCI Registrar or, in the case of Registered Notes issued by Toyota Motor
Credit Corporation, the TMCC Registrar, via Euroclear and/or Clearstream, Luxembourg, as the case may be, in such manner as the
Agent or TCCI Registrar or TMCC Registrar and Euroclear and/or Clearstream, Luxembourg, as the case may be, may approve for this
purpose.

 

17.       Further
Issues 

 

The Issuer shall be at liberty from time
to time without the consent of the Noteholders or Couponholders to create and issue further notes ranking pari passu in
all respects (or in all respects save for the Issue Date, the amount and the date of the first payment of interest thereon and/or
the Issue Price) and so that the same shall be consolidated and form a single series with the outstanding Notes and references
in these Terms and Conditions to “Notes” shall be construed accordingly.

 

18.       Redenomination
and Exchange 

 

The Issuer may (if so specified in the
applicable Final Terms) without the consent of the holder of any Note, Coupon or Talon, redenominate into euro all, but not some
only, of the Notes of any Series on or after the date on which the Member State of the European Union in whose national currency
such Notes are denominated has become a participant member in the third stage of the European economic and monetary union. The
Issuer may (if so specified in the applicable Final Terms) without the consent of the holder of any Note, Coupon or Talon, elect
that the Notes shall be exchangeable for Notes expressed to be denominated in euro in accordance with such arrangements as the
Issuer may decide.

 

19.       Disapplication

 

The Notes confer no right under the Contracts
(Rights of Third Parties) Act 1999 to enforce any term of the Notes, but this does not affect any right or remedy of a third party
which exists or is available apart from that Act.

 

20.       Governing
Law and Submission to Jurisdiction 

 

The Agency Agreement, the TCCI Note Agency
Agreement, the TMCC Note Agency Agreement, the Notes, the Coupons and any non-contractual obligations arising out of or in connection
with the Agency Agreement, the TCCI Note Agency Agreement, the TMCC Note Agency Agreement, the Notes and the Coupons are governed
by, and shall be construed in accordance with, English law.

 

    Page 90

     

    

The Issuer irrevocably agrees, for the
exclusive benefit of the Noteholders and the Couponholders, to the jurisdiction of the English courts for all purposes in connection
with the Agency Agreement, the TCCI Note Agency Agreement, the TMCC Note Agency Agreement, the Notes, the Coupons and any non-contractual
obligations arising out of or in connection with the Agency Agreement, the TCCI Note Agency Agreement, the TMCC Note Agency Agreement,
the Notes and the Coupons and in relation thereto the Issuer has appointed Toyota Financial Services (UK) PLC as its agent for
service of process on its behalf and has agreed that in the event of Toyota Financial Services (UK) PLC ceasing so to act or ceasing
to be registered in England, it will appoint another person as its agent for service of process. Without prejudice to the foregoing,
to the extent allowed by law, the Issuer further irrevocably agrees that any suit, action or proceedings arising out of or in connection
with the Agency Agreement, the TCCI Note Agency Agreement, the TMCC Note Agency Agreement the Notes and the Coupons (including
any suit, action or proceedings relating to any non-contractual obligations arising out of or in connection with the Agency Agreement,
the TCCI Note Agency Agreement, the TMCC Note Agency Agreement, the Notes and the Coupons) may be brought in any other court of
competent jurisdiction.

 

    Page 91

     

    

 

AGENT

 

The Bank of New York Mellon

acting through its London branch

One Canada Square

Canary Wharf

London E14 5AL

United Kingdom

 

TCCI REGISTRAR

 

BNY Trust Company of Canada

1 York Street

6th Floor

Toronto Ontario

Canada M5J 0B6 /

 

The Bank of New York Mellon

SA/NV, Luxembourg Branch

Vertigo Building – Polaris

2-4 rue Eugène Ruppert

L-2453 Luxembourg

 

TCCI TRANSFER AGENT

 

The Bank of New York Mellon

acting through its London branch

One Canada Square

Canary Wharf

London E14 5AL

United Kingdom

 

TMCC REGISTRAR

 

The Bank of New York Mellon

SA/NV, Luxembourg Branch

Vertigo Building – Polaris

2-4 rue Eugène Ruppert

L-2453 Luxembourg

 

TMCC TRANSFER AGENT

 

The Bank of New York Mellon

acting through its London branch

One Canada Square

Canary Wharf

London E14 5AL

United Kingdom

 

    Page 92

     

    

Appendix B

FORMS OF GLOBAL AND DEFINITIVE NOTES, COUPONS AND TALONS

 

    Page 93

     

    

APPENDIX B-1

FORM OF TEMPORARY GLOBAL NOTE

 

[ANY UNITED STATES PERSON (AS DEFINED
IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES
INCOME TAX LAWS INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.]1

 

[BY ACCEPTING THIS OBLIGATION, THE HOLDER
REPRESENTS AND WARRANTS THAT IT IS NOT A UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(B)(4) OF
THE INTERNAL REVENUE CODE OF THE UNITED STATES AND THE REGULATIONS THEREUNDER) AND THAT IT IS NOT ACTING FOR OR ON BEHALF OF A
UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(B)(4) OF THE INTERNAL REVENUE CODE AND THE REGULATIONS
THEREUNDER).]2

 

3[TOYOTA
MOTOR FINANCE (NETHERLANDS) B.V.

(a private company incorporated with limited liability under the laws of the Netherlands, with its corporate seat in Amsterdam,
the Netherlands)]

 

[TOYOTA CREDIT CANADA INC.

(a company incorporated with limited liability under the Canada Business Corporations Act)]

 

[TOYOTA FINANCE AUSTRALIA LIMITED

(ABN 48 002 435 181, a company registered in New South Wales and incorporated with limited liability in Australia)]

 

[TOYOTA MOTOR CREDIT CORPORATION

(a company incorporated with limited liability in California, United States)]

 

TEMPORARY GLOBAL NOTE

 

representing

[Specified Currency and Nominal Amount of Series]

NOTES DUE [Year of Maturity]

 

Series No. [   ]

 

 

 

		1	Use this legend in the case of Notes issued by TMF, TCCI or TFA with an initial maturity of more than 183 days (taking into consideration unilateral rights to roll or extend) unless the applicable Final Terms specify TEFRA C.

		2	Use this legend in the case of Notes with an initial maturity of 183 days or less (taking into consideration unilateral rights to roll or extend), have a minimum denomination of $500,000 (or the equivalent amount in any other currency determined at the spot rate on the date of issue) and, as specified in the applicable Final Terms, are intended to satisfy the requirements of Section 1.6049-5(b)(10) of U.S. Treasury Regulations.

		3	Delete all but the relevant Issuer.

    Page 94

     

    

The Notes represented
by this Temporary Global Note have been admitted to the Official List and admitted to trading on the London Stock Exchange plc’s
Regulated Market.4 This Global Note is a Temporary
Global Note in respect of a duly authorised issue of [Specified Currency and Nominal Amount of Tranche] [Specified Currency and
Nominal Amount of Series] Notes Due [Year of Maturity] (the Notes) of [Specified Currency and Specified Denomination] each
of 5[Toyota Motor Finance (Netherlands) B.V.] [Toyota
Credit Canada Inc.] [Toyota Finance Australia Limited] [Toyota Motor Credit Corporation] (the Issuer). References herein
to the Conditions shall be to the Terms and Conditions of the Notes (the Conditions) as set out in Appendix A to the Agency
Agreement (as defined below) as modified and supplemented by the information set out in Part A of the Final Terms relating to the
Notes (which are attached hereto) and, in the event of any conflict between the provisions of the Conditions and the information
set out in the Final Terms, the latter shall prevail. Words and expressions defined in the Conditions and the Final Terms and not
otherwise defined herein shall have the same meanings when used in this Temporary Global Note.

 

This Temporary Global
Note is issued subject to, and with the benefit of, the Conditions and the Agency Agreement dated 12 September 2014 (the Agency
Agreement, which expression shall be construed as a reference to that agreement as the same may be amended, supplemented and/or
restated from time to time), between Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc., Toyota Finance Australia
Limited, Toyota Motor Credit Corporation and The Bank of New York Mellon (the Agent); provided, however, that references
to the Conditions shall mean the Conditions in effect on the date of this Temporary Global Note.

 

This Temporary Global
Note is to be held by a common depositary (or, if the Final Terms indicate that this Temporary Global Note is intended to be a
New Global Note, a common safekeeper) for Euroclear Bank SA/NV (Euroclear), Clearstream Banking, société
anonyme (Clearstream, Luxembourg) and/or such other relevant clearing agency as is specified in the Final Terms on behalf
of account holders which have the Notes represented by this Temporary Global Note credited to their respective securities accounts
therewith from time to time.

 

For value received,
the Issuer, subject to and in accordance with the Conditions, promises to pay to the bearer hereof on the Maturity Date, and/or
on such earlier date(s) as all or any of the Notes represented by this Temporary Global Note may become due and repayable in accordance
with the Conditions, the amount payable under the Conditions in respect of the Notes then represented by this Temporary Global
Note on each such date and to pay interest (if any) on the nominal amount of the Notes from time to time represented by this Temporary
Global Note calculated and payable as provided in the Conditions together with any other sums payable under the Conditions, upon
(if the Final Terms indicate that this Temporary Global Note is not intended to be a New Global Note) presentation and, at maturity,
surrender of this Temporary Global Note to or to the order of the Agent at the principal office of the Agent in London, or at the
offices of any of the other paying agents located outside the United States of America, its territories and possessions, any State
of the United States and the District of Columbia (except as provided in the Conditions) from time to time appointed by the Issuer
in respect of the Notes, but in each case subject to the requirements as to certification provided herein. Any moneys paid by the
Issuer to the Agent for the payment of principal or interest on any Notes and remaining unclaimed at the end of

 

 

		4	Delete in the case of all Notes other than Notes admitted to trading on the London Stock Exchange’s Regulated Market, or add reference to other Stock Exchange, if applicable.

		5	Delete all but the relevant Issuer.

    Page 95

     

    

one year after such principal or interest
shall have become due and payable (whether at maturity, upon call for redemption or otherwise) shall then be repaid to the Issuer
and upon such repayment all liability of the Agent with respect thereto shall thereupon cease, without, however, limiting in any
way any obligation the Issuer may have to pay the principal of or interest on this Temporary Global Note as the same shall become
due.

 

If the Final Terms
indicate that this Temporary Global Note is intended to be a New Global Note, the nominal amount of Notes represented by this Temporary
Global Note shall be the aggregate amount from time to time entered in the records of both Euroclear and Clearstream, Luxembourg
(together, the relevant Clearing Systems). The records of the relevant Clearing Systems (which expression in this Temporary
Global Note means the records that each relevant Clearing System holds for its customers which reflect the amount of such customer’s
interest in the Notes) shall be conclusive evidence of the nominal amount of Notes represented by this Temporary Global Note and,
for these purposes, a statement issued by a relevant Clearing System (which statement shall be made available to the bearer upon
request) stating the nominal amount of Notes represented by this Temporary Global Note at any time shall be conclusive evidence
of the records of the relevant Clearing System at that time.

 

If the Final Terms
indicate that this Temporary Global Note is not intended to be a New Global Note, the nominal amount of the Notes represented by
this Temporary Global Note shall be the aggregate nominal amount stated in the Final Terms or, if lower, the nominal amount most
recently entered by or on behalf of the Issuer in the relevant column in Schedule Two hereto.

 

On any redemption of,
or payment of interest being made in respect of, or purchase and cancellation of, any of the Notes represented by this Temporary
Global Note, the Issuer shall procure that:

 

		(i)	if the Final Terms indicate that this Temporary Global Note is intended to be a New Global Note,
details of such redemption, payment or purchase and cancellation (as the case may be) shall be entered pro rata in the records
of the relevant Clearing Systems and, upon any such entry being made, the nominal amount of the Notes recorded in the records of
the relevant Clearing Systems and represented by this Temporary Global Note shall be reduced by the aggregate nominal amount of
the Notes so redeemed or purchased and cancelled; or

 

		(ii)	if the Final Terms indicate that this Temporary Global Note is not intended to be a New Global
Note, details of such redemption, payment or purchase and cancellation (as the case may be) shall be entered by or on behalf of
the Issuer in Schedule Two hereto and the relevant space in Schedule Two hereto recording any such redemption, payment or purchase
and cancellation (as the case may be) shall be signed by or on behalf of the Issuer. Upon any such redemption or purchase and cancellation,
the nominal amount of this Temporary Global Note and the Notes represented by this Temporary Global Note shall be reduced by the
aggregate nominal amount of such Notes so redeemed or purchased and cancelled.

 

Payments due in respect
of Notes for the time being represented by this Temporary Global Note shall be made to the bearer of this Temporary Global Note
and each payment so made will discharge the Issuer’s obligations in respect thereof. Any failure to make the entries referred
to above shall not affect such discharge.

 

    Page 96

     

    

6[For
the purposes only of the Interest Act (Canada), in respect of Fixed Rate Notes the nominal yearly rate of interest which is equivalent
to the Fixed Rate of Interest per annum, computed on the basis of a year of 360 days consisting of 12 months of 30 days each, for
any period of less than one year may be calculated by multiplying the Fixed Rate of Interest by a fraction of which: (a) the numerator
is the product of (i) the actual number of days in a year commencing on and including the first day of such period and ending on
but not including the corresponding day in the next calendar year and (ii) the sum of (y) the product of 30 and the number of complete
months elapsed in such period and (z) the number of days elapsed in any incomplete month in such period treating all calendar months
as having 30 days; and (b) the denominator is the product of 360 and the actual number of days in such period (including the first
but excluding the last, such day). For the purposes only of the Interest Act (Canada), in respect of Floating Rate Notes the nominal
yearly rate of interest which is equivalent to the Rate of Interest per annum for any Specified Period (as defined in the Final
Terms) calculated on the basis of a year of 365 or 360 days may be calculated by multiplying such Rate of Interest by a fraction
of which the numerator is the actual number of days in a year commencing on and including the first day of such Specified Period
and ending on but not including the corresponding day in the next calendar year and the denominator is 365 or 360, as the case
may be.]

 

Prior to the Exchange
Date (as defined below), all payments (if any) on this Temporary Global Note will only be made to the bearer hereof to the extent
that there is presented to the Agent by a relevant Clearing System a certificate to the effect that it has received from or in
respect of a person entitled to a particular nominal amount of the Notes (as shown by its records) a certificate of non-US beneficial
ownership in the form required by it. On or after the Exchange Date the bearer of this Temporary Global Note will not be entitled
to receive any payment of interest due unless, upon due certification, exchange of this Temporary Global Note is improperly withheld
or refused.

 

On or after the date
which is 40 days after the completion of the distribution of the Notes represented by this Temporary Global Note or, at the option
of the Issuer (with the consent of the lead manager(s) of the Tranche(s) of Notes of the relevant Series) the date which is 40
days after the completion of the distribution of any additional issuance or issuances of one or more Tranches of Notes of the same
Series that occurs within the 40 day period after the issue of this Temporary Global Note (the latest of such dates referred to
as the Exchange Date), this Temporary Global Note may be exchanged in whole or in part (free of charge) for, as specified
in the Final Terms, either (a) Definitive Bearer Notes and (if applicable) Coupons and Talons in or substantially in the forms
set out in Appendices B-3, B-4 and B-5, respectively, to the Agency Agreement (on the basis that all appropriate details have been
included on the face of such Definitive Bearer Notes and (if applicable) Coupons and Talons and the Final Terms (or the relevant
provisions of the Final Terms) have either been endorsed on or attached to such Definitive Bearer Notes) or, (b) either (i) if
the Final Terms indicate that this Temporary Global Note is intended to be a New Global Note, interests recorded in the records
of the relevant Clearing Systems in a Permanent Global Note, or (ii) if the Final Terms indicate that this Temporary Global Note
is not intended to be a New Global Note, a Permanent Global Note which, in either case, is in the form or substantially in the
form set out in Appendix B-2 to the Agency Agreement (together with the Final Terms attached thereto) in each case upon notice
being given to the Agent by the relevant Clearing System acting on the instructions of any holder of an interest in this Temporary
Global Note.

 

 

		6	Delete if the Issuer is Toyota Motor Finance (Netherlands) B.V., Toyota Finance Australia Limited or Toyota Motor Credit Corporation.

    Page 97

     

    

The Issuer shall procure
that, as appropriate, (i) the Definitive Bearer Notes or (as the case may be) the Permanent Global Note (where the Final Terms
indicate that this Temporary Global Note is not intended to be a New Global Note) shall be so issued and delivered or (ii) the
interests in the Permanent Global Note (where the Final Terms indicate that this Temporary Global Note is intended to be a New
Global Note) shall be recorded in the records of the relevant Clearing System, in each case in exchange for only that portion of
this Temporary Global Note in respect of which there shall have been presented to the Agent by a relevant Clearing System a certificate
to the effect that it has received from or in respect of a person entitled to a beneficial interest in a particular nominal amount
of the Notes (as shown by its records) a certificate of non-US beneficial ownership from such person in the form required by it
and, in the case of Definitive Bearer Notes, subject to such notice period and payment of costs as may be specified in the Final
Terms.

 

If Definitive Bearer
Notes and (if applicable) Coupons and Talons have already been issued in exchange for all the Notes represented for the time being
by the Permanent Global Note, then this Temporary Global Note may only thereafter be exchanged for Definitive Bearer Notes and
(if applicable) Coupons and Talons pursuant to the terms hereof.

 

On an exchange of the
whole of this Temporary Global Note, this Temporary Global Note shall be surrendered to or to the order of the Agent. On an exchange
of part only of this Temporary Global Note, the Issuer shall procure that:

 

		(i)	if the Final Terms indicate that this Temporary Global Note is intended to be a New Global Note,
details of such exchange shall be entered pro rata in the records of the relevant Clearing Systems; or

 

		(ii)	if the Final Terms indicate that this Temporary Global Note is not intended to be a New Global
Note, details of such exchange shall be entered by or on behalf of the Issuer in Schedule Two hereto and the relevant space in
Schedule Two hereto recording such exchange shall be signed by or on behalf of the Issuer whereupon the nominal amount of this
Temporary Global Note and the Notes represented by this Temporary Global Note shall be reduced by the nominal amount so exchanged.
If, following the issue of a Permanent Global Note in exchange for some of the Notes represented by this Temporary Global Note,
further Notes represented by this Temporary Global Note are to be exchanged pursuant to this paragraph, such exchange may be effected,
without the issue of a new Permanent Global Note, by the Issuer or its agent endorsing Schedule Two of the Permanent Global Note
previously issued to reflect an increase in the aggregate nominal amount of the Permanent Global Note which would otherwise have
been issued on such exchange.

 

Until the exchange
of the whole of this Temporary Global Note as aforesaid, the bearer hereof shall in all respects (except as otherwise provided
in this Temporary Global Note) be entitled to the same benefits as if it were bearer of Definitive Bearer Notes, and the relative
Coupons and Talons in the form set out in Appendices B-3, B-4 and B-5, respectively, to the Agency Agreement.

 

Accordingly, except
as ordered by a court of competent jurisdiction or as required by law or applicable regulation, the Issuer and any Paying Agent
may deem and treat the bearer hereof as the absolute owner of this Temporary Global Note for all purposes (whether or not this
Temporary Global Note shall be overdue and notwithstanding any notice of ownership or writing hereon or notice of any previous
loss or theft or trust or other interest herein). In the event that this Temporary Global Note (or any part of it) has become due
and repayable in

 

    Page 98

     

    

accordance with Condition 9 and payment
in full of the amount due has not been made to the bearer in accordance with the provisions set out above then this Temporary Global
Note will become void at 8.00 p.m. (London time) on such day and the bearer will have no further rights under this Temporary Global
Note (but without prejudice to the rights which the bearer or any other person may have under Clause 31 of the Agency Agreement
in respect of the Notes issued under the Programme Agreement pursuant to which this Temporary Global Note is issued).

 

This Temporary Global
Note and any non-contractual obligations arising out of or in connection with it shall be governed by, and construed in accordance
with, English law.

 

This Temporary Global
Note shall not be valid unless authenticated by the Agent and, if the Final Terms indicate that this Temporary Global Note is intended
to be a New Global Note (i) which is intended to be held in a manner which would allow Eurosystem eligibility, or (ii) in respect
of which the Issuer has notified the Agent that effectuation is to be applicable, effectuated by the entity appointed as common
safekeeper by the relevant Clearing Systems. This Temporary Global Note may be duly executed on behalf of the Issuer by manual
or facsimile signature.

 

    Page 99

     

    

IN WITNESS WHEREOF,
the Issuer has caused this Temporary Global Note to be duly executed on its behalf.

 

Dated

 

	 	7[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.]
	 	 	 	 	 
	 	By:  	     	By:    	 
	 	 	Authorised Signatory	 	Authorised Signatory
	 	 	 	 	 

	 	[TOYOTA CREDIT CANADA INC.]

[TOYOTA FINANCE AUSTRALIA LIMITED]

[TOYOTA MOTOR CREDIT CORPORATION]
	 	 

	 	By:  	  	 
	 	 	Authorised Signatory	 
	 	 	 	 

	Authenticated by

The Bank of New York Mellon	 
	 	 
	 	 

	By:  	  	 
	        	Authorised Signatory	 
	 	 	 

	8Effectuated without recourse,

warranty or liability by:	 
	 	 
	[insert name of common safekeeper]

as common safekeeper	 
	 	 

	By:	  	 
	 	 	 
	 	 	 

 

		7	Delete all but the relevant Issuer.

		8	This should only be completed where the Final Terms indicate that this Temporary Global Note is intended to be a New Global Note.

    Page 100

     

    

SCHEDULE ONE*

INTEREST PAYMENTS

 

	Interest

Payment Date	 	Date of Payment	 	Total Amount of Interest Payable	 	Amount of Interest Paid	 	Confirmation of payment by or on behalf of the Issuer
	 	 	 	 	 	 	 	 	 
	First	 	  	 	  	 	  	 	  
	Second	 	  	 	  	 	  	 	  
	 	 	 	 	 	 	 	 	 

 

[continue numbering until the appropriate
number of interest payment dates for the particular Series of Notes is reached.]

 

 

 

		*	Schedule One should be
completed where the Final Terms indicate that this Temporary Global Note is not intended to be a New Global Note.

    Page 101

     

    

SCHEDULE TWO*

SCHEDULE OF EXCHANGES

FOR NOTES REPRESENTED BY A PERMANENT GLOBAL NOTE OR DEFINITIVE BEARER NOTES OR REDEMPTIONS OR PURCHASES AND CANCELLATIONS

 

The following exchanges
of a part of this Temporary Global Note for Notes represented by a Permanent Global Note or Definitive Bearer Notes or redemptions
or purchases and cancellation of this Temporary Global Note have been made:

 

	Date of exchange, or redemption or purchase and cancellation	 	Part of nominal amount of this Temporary Global Note exchanged for Notes represented by a Permanent Global Note or Definitive Bearer Notes or redeemed or purchased and cancelled	 	Remaining nominal amount of this Temporary Global Note following such exchange, or redemption or purchase and cancellation	 	Notation made by or on behalf of the Issuer
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

		*	Schedule Two should only
be completed where the Final Terms indicates that this Temporary Global Note is not intended to be a New Global Note.

    Page 102

     

    

 

 

APPENDIX B-2

FORM OF PERMANENT GLOBAL NOTE

 

[ANY UNITED STATES PERSON (AS DEFINED
IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES
INCOME TAX LAWS INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.]1

 

[BY ACCEPTING THIS OBLIGATION, THE HOLDER
REPRESENTS AND WARRANTS THAT IT IS NOT A UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(B)(4) OF
THE INTERNAL REVENUE CODE OF THE UNITED STATES AND THE REGULATIONS THEREUNDER) AND THAT IT IS NOT ACTING FOR OR ON BEHALF OF A
UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(B)(4) OF THE INTERNAL REVENUE CODE AND THE REGULATIONS
THEREUNDER).]2

 

3[TOYOTA
MOTOR FINANCE (NETHERLANDS) B.V.

(a private company incorporated with limited liability under the laws of the Netherlands, with its corporate seat in Amsterdam,
the Netherlands)]

 

[TOYOTA CREDIT CANADA INC.

(a company incorporated with limited liability under the Canada Business Corporations Act)]

 

[TOYOTA FINANCE AUSTRALIA LIMITED

(ABN 48 002 435 181, a company registered in New South Wales and incorporated with limited liability in Australia)]

 

[TOYOTA MOTOR CREDIT CORPORATION

(a company incorporated with limited liability in California, United States)]

 

PERMANENT GLOBAL NOTE

 

representing

[Specified Currency and Nominal Amount of Series]

NOTES DUE [Year of Maturity]

 

Series No. [ ]

 

 

		1	Use this legend in the case of Notes issued by TMF, TCCI or TFA with an initial maturity of more than 183 days (taking into consideration unilateral rights to roll or extend) unless the applicable Final Terms specify TEFRA C.

		2	Use this legend in the case of Notes with an initial maturity of 183 days or less (taking into consideration unilateral rights to roll or extend), have a minimum denomination of $500,000 (or the equivalent amount in any other currency determined at the spot rate on the date of issue) and, as specified in the applicable Final Terms, are intended to satisfy the requirements of Section 1.6049-5(b)(10) of U.S. Treasury Regulations.

		3	Delete all but the relevant Issuer.

    Page 103

     

    

The Notes represented
by this Permanent Global Note have been admitted to the Official List and admitted to trading on the London Stock Exchange plc’s
Regulated Market.4

 

This Global Note is
a Permanent Global Note in respect of a duly authorised issue of [Specified Currency and Nominal Amount of Tranche] [Specified
Currency and Nominal Amount of Series] Notes Due [Year of Maturity] (the Notes) of [Specified Currency and Specified Denomination]
each of 5[Toyota Motor Finance (Netherlands) B.V.]
[Toyota Credit Canada Inc.] [Toyota Finance Australia Limited] [Toyota Motor Credit Corporation] (the Issuer). References
herein to the Conditions shall be to the Terms and Conditions of the Notes (the Conditions) as set out in Appendix A to
the Agency Agreement (as defined below) as modified and supplemented by Part A of the Final Terms relating to the Notes (which
are attached hereto) and, in the event of any conflict between the provisions of the Conditions and the information set out in
the Final Terms, the latter shall prevail. Words and expressions defined in the Conditions and the Final Terms and not otherwise
defined herein shall have the same meanings when used in this Permanent Global Note.

 

This Permanent Global
Note is issued subject to, and with the benefit of, the Conditions and the Agency Agreement dated 12 September 2014 (the Agency
Agreement, which expression shall be construed as a reference to that agreement as the same may be amended, supplemented and/or
restated from time to time), between Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc., Toyota Finance Australia
Limited, Toyota Motor Credit Corporation and The Bank of New York Mellon (the Agent); provided, however, that references
to the Conditions shall mean the Conditions in effect on the date of issue of the Temporary Global Note that originally represented
this Permanent Global Note.

 

This Permanent Global
Note is to be held by a common depositary (or, if the Final Terms indicate that this Permanent Global Note is intended to be a
New Global Note, a common safekeeper) for Euroclear Bank SA/NV (Euroclear), Clearstream Banking, société
anonyme (Clearstream, Luxembourg) and/or such other relevant clearing agency as is specified in the Final Terms on behalf
of account holders which have the Notes represented by this Permanent Global Note credited to their respective securities accounts
therewith from time to time.

 

For value received,
the Issuer, subject to and in accordance with the Conditions, promises to pay to the bearer hereof on the Maturity Date, and/or
on such earlier date(s) as all or any of the Notes represented by this Permanent Global Note may become due and repayable in accordance
with the Conditions, the amount payable under the Conditions in respect of the Notes then represented by this Permanent Global
Note on each such date and to pay interest (if any) on the nominal amount of the Notes from time to time represented by this Permanent
Global Note calculated and payable as provided in the Conditions together with any other sums payable under the Conditions, upon
(if the Final Terms indicate that this Permanent Global Note is not intended to be a New Global Note) presentation and, at maturity,
surrender of this Permanent Global Note to or to the order of the Agent at the principal office of the Agent in London, or at the
offices of any of the other paying agents located outside of the United States of America, its territories and possessions, any
State of the United States and the District of Columbia (except as provided in the Conditions) from time to time appointed by the
Issuer in respect of the Notes, but in each case subject to the requirements as to certification provided herein. Any moneys paid
by the Issuer to the Agent for the payment of principal or interest on any Notes and remaining unclaimed at the end of

 

 

		4	Delete in the case of all Notes other than Notes admitted to trading on the London Stock Exchange’s Regulated Market, or add reference to other Stock Exchange, if applicable.

		5	Delete all but the relevant Issuer.

    Page 104

     

    

one year after such principal or interest
shall have become due and payable (whether at maturity, upon call for redemption or otherwise) shall then be repaid to the Issuer
and upon such repayment all liability of the Agent with respect thereto shall thereupon cease, without, however, limiting in any
way any obligation the Issuer may have to pay the principal of or interest on this Permanent Global Note as the same shall become
due.

 

If the Final Terms
indicate that this Permanent Global Note is intended to be a New Global Note, the nominal amount of Notes represented by this Permanent
Global Note shall be the aggregate amount from time to time entered in the records of both Euroclear and Clearstream, Luxembourg
(together, the relevant Clearing Systems). The records of the relevant Clearing Systems (which expression in this Permanent
Global Note means the records that each relevant Clearing System holds for its customers which reflect the amount of such customer’s
interest in the Notes) shall be conclusive evidence of the nominal amount of Notes represented by this Permanent Global Note and,
for these purposes, a statement issued by a relevant Clearing System (which statement shall be made available to the bearer upon
request) stating the nominal amount of Notes represented by this Permanent Global Note at any time shall be conclusive evidence
of the records of the relevant Clearing System at that time.

 

If the Final Terms
indicate that this Permanent Global Note is not intended to be a New Global Note, the nominal amount of the Notes represented by
this Permanent Global Note shall be the aggregate nominal amount stated in the Final Terms or, if lower, the nominal amount most
recently entered by or on behalf of the Issuer in the relevant column in Schedule Two hereto.

 

On any redemption of,
or payment of interest being made in respect of, or purchase and cancellation of, any of the Notes represented by this Permanent
Global Note, the Issuer shall procure that:

 

		(i)	if the Final Terms indicate that this Permanent Global Note is intended to be a New Global Note,
details of such redemption, payment or purchase and cancellation (as the case may be) shall be entered pro rata in the records
of the relevant Clearing Systems and, upon any such entry being made, the nominal amount of the Notes recorded in the records of
the relevant Clearing Systems and represented by this Permanent Global Note shall be reduced by the aggregate nominal amount of
the Notes so redeemed or purchased and cancelled; or

 

		(ii)	if the Final Terms indicate that this Permanent Global Note is not intended to be a New Global
Note, details of such redemption, payment or purchase and cancellation (as the case may be) shall be entered by or on behalf of
the Issuer in Schedule Two hereto and the relevant space in Schedule Two hereto recording any such redemption, payment or purchase
and cancellation (as the case may be) shall be signed by or on behalf of the Issuer. Upon any such redemption or purchase and cancellation,
the nominal amount of this Permanent Global Note and the Notes represented by this Permanent Global Note shall be reduced by the
aggregate nominal amount of such Notes so redeemed or purchased and cancelled.

 

Payments due in respect
of Notes for the time being represented by this Permanent Global Note shall be made to the bearer of this Permanent Global Note
and each payment so made will discharge the Issuer’s obligations in respect thereof. Any failure to make the entries referred
to above shall not affect such discharge.

 

    Page 105

     

    

If the Notes represented
by this Permanent Global Note were, on issue, represented by a Temporary Global Note then on any exchange of any such Temporary
Global Note for this Permanent Global Note or any part of it, the Issuer shall procure that:

 

		(i)	if the Final Terms indicate that this Permanent Global Note is intended to be a New Global Note,
details of such exchange shall be entered in the records of the relevant Clearing Systems; or

 

		(ii)	if the Final Terms indicate that this Permanent Global Note is not intended to be a New Global
Note, details of such exchange shall be entered by or on behalf of the Issuer in Schedule Two hereto and the relevant space in
Schedule Two hereto recording any such exchange shall be signed by or on behalf of the Issuer. Upon any such exchange, the nominal
amount of this Permanent Global Note and the Notes represented by this Permanent Global Note shall be increased by the nominal
amount of the Notes so exchanged.

 

6[For
the purposes only of the Interest Act (Canada), in respect of Fixed Rate Notes the nominal yearly rate of interest which is equivalent
to the Fixed Rate of Interest per annum, computed on the basis of a year of 360 days consisting of 12 months of 30 days each, for
any period of less than one year may be calculated by multiplying the Fixed Rate of Interest by a fraction of which: (a) the numerator
is the product of (i) the actual number of days in a year commencing on and including the first day of such period and ending on
but not including the corresponding day in the next calendar year and (ii) the sum of (y) the product of 30 and the number of complete
months elapsed in such period and (z) the number of days elapsed in any incomplete month in such period treating all calendar months
as having 30 days; and (b) the denominator is the product of 360 and the actual number of days in such period (including the first
but excluding the last, such day). For the purposes only of the Interest Act (Canada), in respect of Floating Rate Notes the nominal
yearly rate of interest which is equivalent to the Rate of Interest per annum for any Specified Period (as defined in the Final
Terms) calculated on the basis of a year of 365 or 360 days may be calculated by multiplying such Rate of Interest by a fraction
of which the numerator is the actual number of days in a year commencing on and including the first day of such Specified Period
and ending on but not including the corresponding day in the next calendar year and the denominator is 365 or 360, as the case
may be.]

 

In certain circumstances
further notes may be issued which are intended on issue to be consolidated and form a single Series with the Notes. In such circumstances
the Issuer shall procure that:

 

		(i)	if the Final Terms indicate that this Permanent Global Note is intended to be a New Global Note,
details of such further notes shall be entered in the records of the relevant Clearing Systems; or

 

		(ii)	if the Final Terms indicate that this Permanent Global Note is not intended to be a New Global
Note, details of such further notes shall be entered by or on behalf of the Issuer in Schedule Two and the relevant space in Schedule
Two recording such further notes shall be signed by or on behalf of the Issuer, whereupon the nominal amount of this Permanent
Global Note and the Notes represented by this Permanent Global Note shall be increased by the nominal amount of any such further
notes so issued.

 

 

		6	Delete if the Issuer is Toyota Motor Finance (Netherlands) B.V., Toyota Finance Australia Limited or Toyota Motor Credit Corporation.

    Page 106

     

    

This Permanent Global
Note may (under the circumstances set forth in the Conditions and the Final Terms) be exchanged, in whole, but not in part, for
Definitive Bearer Notes and (if applicable) Coupons and Talons in or substantially in the forms set out in Appendices B-3, B-4
and B-5, respectively, of the Agency Agreement (on the basis that all appropriate details have been included on the face of such
Definitive Bearer Notes and (if applicable) Coupons and Talons and the Final Terms (or the relevant provisions of the Final Terms)
have been either endorsed on or attached to such Definitive Bearer Notes) in denominations of [Specified Currency and Specified
Denomination] each upon either, as specified in the Final Terms:

 

		(a)	upon not less than 60 days’ written notice being given to the Agent by the relevant Clearing
Systems acting on the instructions of any holder of an interest in this Permanent Global Note; or

 

		(b)	only upon the occurrence of an Exchange Event; or

 

		(c)	at any time at the request of the Issuer.

 

An Exchange Event means:

 

		(i)	an Event of Default (as defined in Condition 9) has occurred and is continuing; or

 

		(ii)	the Issuer has been notified that both Euroclear and Clearstream, Luxembourg (or any other agreed
clearing system in which this Permanent Global Note is being held) have been closed for business for a continuous period of 14
days (other than by reason of holiday, statutory or otherwise) or have announced an intention permanently to cease business or
have in fact done so and, as a result, Euroclear and Clearstream, Luxembourg or such other agreed clearing system in which this
Permanent Global Note is being held are no longer willing or able to discharge properly their responsibilities with respect to
this Permanent Global Note and the Agent and the Issuer are unable to locate a qualified successor; or

 

		(iii)	the Issuer has or will become subject to adverse tax consequences which would not be suffered were
the Notes represented by this Permanent Global Note in definitive form.

 

If this Permanent Global
Note is exchangeable following the occurrence of an Exchange Event:

 

		(A)	the Issuer will promptly give notice to Noteholders in accordance with Condition 16 if an Exchange
Event occurs; and

 

		(B)	in the event of the occurrence of any Exchange Event, one or more of the relevant Clearing Systems
(acting on the instructions of any holder of an interest in this Permanent Global Note) may give notice to the Agent requesting
exchange and, in the event of the occurrence of an Exchange Event as described in (iii) above, the Issuer may also give notice
to the Agent requesting exchange. Any such exchange shall occur not later than 45 days after the date of receipt of the first relevant
notice by the Agent.

 

    Page 107

     

    

The exchange, if any,
will be made upon presentation of this Permanent Global Note by the bearer hereof on any day (other than a Saturday or a Sunday)
on which banks are open for general business in London at the principal office of the Agent in London; provided, however, the first
notice given to the Agent by Euroclear, Clearstream, Luxembourg and/or such other relevant clearing agency or the Issuer shall
give rise to the issue of Definitive Bearer Notes for the total amount of Notes represented by this Permanent Global Note. The
aggregate nominal amount of Definitive Bearer Notes issued upon an exchange of this Permanent Global Note will be equal to the
aggregate nominal amount of this Permanent Global Note submitted by the bearer hereof for exchange (to the extent that such nominal
amount does not exceed the aggregate nominal amount of this Permanent Global Note, as adjusted, as shown in Schedule Two hereto
if the Final Terms indicate that this Permanent Global Note is not intended to be a New Global Note, or in the records of the relevant
Clearing Systems if the applicable Final Terms indicate that this Permanent Global Note is intended to be a New Global Note). On
an exchange of this Permanent Global Note, this Permanent Global Note shall be surrendered to or to the order of the Agent.

 

Until the exchange
of the whole of this Permanent Global Note as aforesaid, the bearer hereof shall in all respects (except as otherwise provided
in this Permanent Global Note) be entitled to the same benefits as if it were the bearer of Definitive Bearer Notes, and the relative
Coupons and Talons in the form set out in Appendices B-3, B-4 and B-5, respectively, to the Agency Agreement.

 

Accordingly, except
as ordered by a court of competent jurisdiction or as required by law or applicable regulation, the Issuer and any Paying Agent
may deem and treat the bearer hereof as the absolute owner of this Permanent Global Note for all purposes (whether or not this
Permanent Global Note shall be overdue and notwithstanding any notice of ownership or writing hereon or notice of any previous
loss or theft or trust or other interest herein). In the event that this Permanent Global Note (or any part of it) has become due
and repayable in accordance with Condition 9 and payment in full of the amount due has not been made to the bearer in accordance
with the provisions set out above then this Permanent Global Note will become void at 8.00 p.m. (London time) on such day and the
bearer will have no further rights under this Permanent Global Note (but without prejudice to the rights which the bearer or any
other person may have under Clause 31 of the Agency Agreement in respect of the Notes issued under the Programme Agreement pursuant
to which this Permanent Global Note is issued).

 

This Permanent Global
Note and any non-contractual obligations arising out of or in connection with it shall be governed by, and construed in accordance
with, English law.

 

This Permanent Global
Note shall not be valid unless authenticated by the Agent and, if the Final Terms indicate that this Permanent Global Note is intended
to be a New Global Note (i) which is intended to be held in a manner which would allow Eurosystem eligibility, or (ii) in respect
of which the Issuer has notified the Agent that effectuation is to be applicable, effectuated by the entity appointed as common
safekeeper by the relevant Clearing Systems. This Permanent Global Note may be duly executed on behalf of the Issuer by manual
or facsimile signature.

 

    Page 108

     

    

IN WITNESS WHEREOF,
the Issuer has caused this Permanent Global Note to be duly executed on its behalf.

 

Dated

 

	 	7[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.]
	 	 	 	 	 
	 	By: 	      	By:  	  
	 	 	Authorised Signatory	 	Authorised Signatory
	 	 	 	 	 
	 	[TOYOTA CREDIT CANADA INC.]
	 	[TOYOTA FINANCE AUSTRALIA LIMITED]
	 	[TOYOTA MOTOR CREDIT CORPORATION]
	 	 

	 	By:  	  	 
	 	 	Authorised Signatory	 
	 	 	 	 

	Authenticated by

The Bank of New York Mellon	 
	 	 

	By:  	  	 
	        	Authorised Signatory	 
	 	 	 

	8Effectuated without recourse,

warranty or liability by:	 
	 	 
	[insert name of common safekeeper]

as common safekeeper	 
	 	 

	By:	  	 
	 	 	 

 

		7	Delete all but the relevant Issuer.

		8	This should only be completed where the Final Terms indicate that this Permanent Global Note is intended to be a New Global Note.

    Page 109

     

    

SCHEDULE ONE*

INTEREST PAYMENTS

 

	Interest

Payment Date	 	Date of Payment	 	Total Amount of Interest Payable	 	Amount of Interest Paid	 	Confirmation of payment by or on behalf of the Issuer
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	First 	 	  	 	  	 	  	 	  
	Second	 	  	 	  	 	  	 	  
	 	 	 	 	 	 	 	 	 

 

[continue numbering until the appropriate
number of interest payment dates for the particular Series of Notes is reached]

 

 

		*	Schedule One should only
be completed where the Final Terms indicate that this Permanent Global Note is not intended to be a New Global Note.

    Page 110

     

    

SCHEDULE TWO*

SCHEDULE OF EXCHANGES OF A TEMPORARY

GLOBAL NOTE AND FOR DEFINITIVE BEARER NOTES

OR REDEMPTIONS OR PURCHASES AND CANCELLATIONS

 

The following increases
of this Permanent Global Note, exchanges of this Permanent Global Note for Definitive Bearer Notes or redemptions or purchases
and cancellations of this Permanent Global Note have been made:

 

	Date of exchange, or redemption or purchase and cancellation	 	Increase in nominal amount of this Permanent Global Note due to exchanges of a Temporary Global Note for this Permanent Global Note	 	Part of nominal amount of this Permanent Global Note exchanged for Definitive Bearer Notes or redeemed or purchased and cancelled	 	Remaining amount payable under this Permanent Global Note following such exchange, or redemption or purchase and cancellation	 	Notation made by or on behalf of the Issuer
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

 

 

		*	Schedule Two should only
be completed where the applicable Final Terms indicates that this Permanent Global Note is not intended to be a New Global Note.

    Page 111

     

    

 

 

APPENDIX B-3

FORM OF DEFINITIVE BEARER NOTE

 

[ANY UNITED STATES PERSON (AS DEFINED
IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES
INCOME TAX LAWS INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.]1

 

[BY ACCEPTING THIS OBLIGATION, THE HOLDER
REPRESENTS AND WARRANTS THAT IT IS NOT A UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(B)(4) OF
THE INTERNAL REVENUE CODE OF THE UNITED STATES AND THE REGULATIONS THEREUNDER) AND THAT IT IS NOT ACTING FOR OR ON BEHALF OF A
UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SECTION 6049(B)(4) OF THE INTERNAL REVENUE CODE AND THE REGULATIONS
THEREUNDER).]2

 

3[TOYOTA
MOTOR FINANCE (NETHERLANDS) B.V.

(a private company incorporated with limited liability under the laws of the Netherlands, with its corporate seat in Amsterdam,
the Netherlands)]

 

[TOYOTA CREDIT CANADA INC.

(a company incorporated with limited liability under the Canada Business Corporations Act)]

 

[TOYOTA FINANCE AUSTRALIA LIMITED

(ABN 48 002 435 181, a company registered in New South Wales and incorporated with limited liability in Australia)]

 

[TOYOTA MOTOR CREDIT CORPORATION

(a company incorporated with limited liability in California, United States)]

 

DEFINITIVE BEARER NOTE

 

representing

[Specified Currency and Nominal Amount of Series]

NOTES DUE [Year of Maturity]

 

Series No. [ ]

 

This Note has been
admitted to the Official List and admitted to trading on the London Stock Exchange plc’s Regulated Market.4

 

 

		1	Use this legend in the case of Notes issued by TMF, TCCI or TFA with a maturity of more than 183 days (taking into consideration unilateral rights to roll or extend).

		2	Use this legend in the case of Notes with a maturity of 183 days or less (taking into consideration unilateral rights to roll or extend), have a minimum denomination of $500,000 (or the equivalent amount in any other currency determined at the spot rate on the date of issue) and, as specified in the applicable Final Terms, are intended to satisfy the requirements of Section 1.6049-5(b)(10) of U.S. Treasury Regulations.

		3	Delete all but the relevant Issuer.

 

    Page 112

     

    

  

This Note is one of
a duly authorised issue of notes of [Specified Currency and Nominal Amount of Series] (the Notes) each of 5[Toyota
Motor Finance (Netherlands) B.V.] [Toyota Credit Canada Inc.] [Toyota Finance Australia Limited] [Toyota Motor Credit Corporation]
(the Issuer). References herein to the Conditions shall be to the Terms and Conditions of the Notes (the Conditions)
as set out in Appendix A to the Agency Agreement (as defined below) as modified and supplemented by Part A of the Final Terms (which
are reproduced on the reverse hereof) and, in the event of any conflict between the provisions of the Conditions and the information
set out in the Final Terms, the latter shall prevail. Words and expressions defined in the Conditions and the Final Terms and not
otherwise defined herein shall have the same meanings when used in this Definitive Bearer Note.

 

This Note is issued
subject to, and with the benefit of, the Conditions and the Agency Agreement dated 12 September 2014 (the Agency Agreement,
which expression shall be construed as a reference to that agreement as the same may be amended, supplemented and/or restated from
time to time), between Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc., Toyota Finance Australia Limited, Toyota
Motor Credit Corporation and The Bank of New York Mellon (the Agent); provided, however, that references to the Conditions
shall mean the Conditions in effect on the date of issue of the Temporary Global Note that originally represented this Note.

 

For value received,
the Issuer, subject to and in accordance with the Conditions, promises to pay to the bearer hereof on the Maturity Date, and/or
on such earlier date(s) as this Note may become due and repayable in accordance with the Conditions, the amount payable under the
Conditions in respect of this Note on each such date and to pay interest (if any) on this Note calculated and payable as provided
in the Conditions together with any other sums payable under the Conditions.

 

6[For
the purposes only of the Interest Act (Canada), in respect of Fixed Rate Notes the nominal yearly rate of interest which is equivalent
to the Fixed Rate of Interest per annum, computed on the basis of a year of 360 days consisting of 12 months of 30 days each, for
any period of less than one year may be calculated by multiplying the Fixed Rate of Interest by a fraction of which: (a) the numerator
is the product of (i) the actual number of days in a year commencing on and including the first day of such period and ending on
but not including the corresponding day in the next calendar year and (ii) the sum of (y) the product of 30 and the number of complete
months elapsed in such period and (z) the number of days elapsed in any incomplete month in such period treating all calendar months
as having 30 days; and (b) the denominator is the product of 360 and the actual number of days in such period (including the first
but excluding the last, such day). For the purposes only of the Interest Act (Canada), in respect of Floating Rate Notes the nominal
yearly rate of interest which is equivalent to the Rate of Interest per annum for any Specified Period (as defined in the Final
Terms) calculated on the basis of a year of 365 or 360 days may be calculated by multiplying such Rate of Interest by a fraction
of which the numerator is the actual number of days in a year commencing on and including the first day of such Specified Period
and ending on but not including the corresponding day in the next calendar year and the denominator is 365 or 360, as the case
may be.]

 

 

		4	Delete in the case of all Notes other than Notes admitted to trading on the London Stock Exchange’s Regulated Market, or add reference to other Stock Exchange, if applicable.

		

                                                                                5
	Delete all but the relevant Issuer.

		6	Delete if the Issuer is Toyota Motor Finance (Netherlands) B.V., Toyota Finance Australia Limited or Toyota Motor Credit Corporation.

    Page 113

     

    

Title to this Note
and to any Coupon or Talon appertaining hereto shall pass by delivery. The Issuer may treat the bearer hereof as the absolute owner
of this Note for all purposes (whether or not this Note shall be overdue and notwithstanding any notation of ownership or writing
hereon or notice of any previous loss or theft or trust or other interest herein).

 

This Note shall not be validly
issued unless authenticated by the Agent.

 

This Note may be duly executed
on behalf of the Issuer by manual or facsimile signature.

 

IN WITNESS WHEREOF, the Issuer has
caused this Note to be duly executed on its behalf.

 

Dated

 

	 	7[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.]
	 	 	 	 	 
	 	By:  	     	By:	   
	 	 	Authorised Signatory	 	Authorised Signatory
	 	 	 	 	 
	 	[TOYOTA CREDIT CANADA INC.]
	 	[TOYOTA FINANCE AUSTRALIA LIMITED]
	 	[TOYOTA MOTOR CREDIT CORPORATION]
	 	 

	 	By:  	  	 
	 	 	Authorised Signatory	 

	[Authenticated by
 The Bank of New York Mellon] 	 
	 	 
	By:	 	 
	
          

         
	Authorised Signatory	

 

 

[Reverse
Of Note – Terms And Conditions]

 

[Terms and Conditions
to be as set out in Appendix A to the Agency Agreement or in such other form as may be agreed between the relevant Issuer, the
Agent and the relevant Purchaser(s)]

 

[Endorsed on or attached
to the Terms and Conditions is to be the applicable Final Terms]

 

 

		7	Delete all but the relevant Issuer.

    Page 114

     

    

 

APPENDIX B-4

FORM OF COUPON

 

(Face of Coupon)

 

1[TOYOTA MOTOR FINANCE (NETHERLANDS)
B.V.]

[TOYOTA CREDIT CANADA INC.]

[TOYOTA FINANCE AUSTRALIA LIMITED

(ABN 48 002 435 181)]

[TOYOTA MOTOR CREDIT CORPORATION]

 

[Specified Currency and Nominal Amount
of Series]

NOTES DUE [Year of Maturity]

 

Series No.[         ]

 

Part A

 

[For Fixed Rate Notes:

 

	This Coupon is payable to bearer, separately negotiable and subject to the Terms and Conditions of the said Notes to which it appertains.]	Coupon No. [         ]

Coupon for [         ]

due on [         ]

[20[       ]]

 

Part B

 

[For Floating Rate, Dual Currency
and Index Linked Interest Notes:

 

	Coupon for the amount due in accordance with the Terms and Conditions of the Notes to which it appertains.  This Coupon is payable to bearer, separately negotiable and subject to such Terms and Conditions, under which it may become void before its due date.]	Coupon No. [         ]

Coupon due in [         ]

[20[       ]]
	 	 

ANY UNITED STATES PERSON (AS DEFINED
IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES
INCOME TAX LAWS INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

 

 

		1	Delete all but the relevant Issuer.

    Page 115

     

    

(Reverse of Coupon)

 

AGENT

 

The Bank of New York Mellon

One Canada Square

Canary Wharf

London E14 5AL

 

and/or such other or further Agent and
other or further Paying Agents and/or specified offices as may from time to time be duly appointed by the Issuer and notice of
which has been given to the Noteholders.

 

    Page 116

     

    

 

APPENDIX B-5

FORM OF TALON

 

(On the front)

 

ANY UNITED STATES PERSON (AS DEFINED
IN THE INTERNAL REVENUE CODE OF THE UNITED STATES) WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES
TAX LAWS INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

 

1[TOYOTA MOTOR FINANCE (NETHERLANDS)
B.V.]

[TOYOTA CREDIT CANADA INC.]

[TOYOTA FINANCE AUSTRALIA LIMITED

(ABN 48 002 435 181)]

[TOYOTA MOTOR CREDIT CORPORATION]

 

[Specified Currency and Nominal Amount
of Series]

NOTES DUE [Year of Maturity]

 

Series No. [         ]

 

On and after [ ] further
Coupons [and a further Talon]2 appertaining to the Note to which this Talon appertains will be issued at the specified
office of any of the Paying Agents set out on the reverse hereof (and/or any other or further Paying Agents and/or specified offices
as may from time to time be duly appointed and notified to the Noteholders) upon production and surrender of this Talon.

 

This Talon may, in
certain circumstances, become void under the Terms and Conditions endorsed on the Notes to which this Talon appertains.

 

	 	[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.]
	 	 	 	 	 
	 	By:	    	By:	    
	 	 	Authorised Signatory	 	Authorised Signatory
	 	 	 	 	 

	 	[TOYOTA CREDIT CANADA INC.]

[TOYOTA FINANCE AUSTRALIA LIMITED]

[TOYOTA MOTOR CREDIT CORPORATION]
	 	 

	 	By:	    	 
	 	 	Authorised Signatory	 
	 	 	 	 
	 	 	 	 

 

		1	Delete all but the relevant Issuer.

		2	Not required on last Coupon sheet.

    Page 117

     

    

(Reverse of Talon)

 

AGENT

 

The Bank of New York Mellon

One Canada Square

Canary Wharf

London E14 5AL

 

and/or such other or further Agent and
other or further Paying Agents and/or specified offices as may from time to time be duly appointed by the Issuer and notice of
which has been given to the Noteholders.

 

    Page 118

     

    

Appendix C

FORM OF CALCULATION AGENCY AGREEMENT

 

Dated ____________, 20__

 

[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.]

[TOYOTA CREDIT CANADA INC.]

[TOYOTA FINANCE AUSTRALIA LIMITED (ABN 48 002 435 181)]

[TOYOTA MOTOR CREDIT CORPORATION]

 

and

 

[INSERT NAME OF CALCULATION AGENT]

 

€50,000,000,000

 

Euro Medium Term Note Programme

 

established by

 

Toyota Motor Finance (Netherlands) B.V.,
Toyota Credit Canada Inc.,

Toyota Finance Australia Limited (ABN 48 002 435 181) and

 

Toyota Motor Credit Corporation

 

CALCULATION AGENCY AGREEMENT

 

    Page 119

     

    

[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.]

[TOYOTA CREDIT CANADA INC.]

[TOYOTA FINANCE AUSTRALIA LIMITED (ABN 48 002 435 181)]

[TOYOTA MOTOR CREDIT CORPORATION]

 

€50,000,000,000

 

Euro Medium Term Note Programme

 

established by

 

Toyota Motor Finance (Netherlands) B.V.,
Toyota Credit Canada Inc.,

Toyota Finance Australia Limited (ABN 48 002 435 181) and

 

Toyota Motor Credit Corporation

 

CALCULATION AGENCY AGREEMENT

 

THIS AGREEMENT is made on __________,
20__

 

BETWEEN:

 

		(1)	[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V. of World Trade Center Amsterdam, Tower H, Level
10, Zuidplein 90, 1077 XV Amsterdam, the Netherlands (the Issuer);]

 

[TOYOTA CREDIT CANADA INC.
of 80 Micro Court, Suite 200, Markham, Ontario L3R 9Z5, Canada (the Issuer);]

 

[TOYOTA FINANCE AUSTRALIA
LIMITED (ABN 48 002 435 181) of Level 9, 207 Pacific Highway, St Leonards, NSW 2065, Australia (the Issuer);]

 

[TOYOTA MOTOR CREDIT CORPORATION
of 6565 Headquarters Drive, Mailstop W2–3D, Plano, Texas 75024–5965, United States (the Issuer);] and

 

		(2)	[name of calculation agent] of [·] (the Calculation
Agent, which expression shall include its successor or successors for the time being as calculation agent hereunder).

 

WHEREAS:

 

		A.	The Issuer has entered into the Amended and Restated Programme Agreement with certain dealers and
others dated 14 September 2018 under which the Issuer may issue Euro Medium Term Notes (Notes) with an aggregate nominal
amount of up to €50,000,000,000 (or its equivalent in other currencies) outstanding at any time (including Euro Medium Term
Notes issued previously under the Euro Medium Term Note Programme provided for by the Programme Agreement and Euro Medium Term
Notes issued prior to 28 September 2007 by Toyota Motor Credit Corporation under its U.S.$30,000,000,000 Euro Medium-Term Note
Program last updated on 28 September 2006 (and further amended on 4 March 2011 with respect to certain Notes) which remain outstanding).

 

		B.	The Notes will be issued subject to, and with the benefit of, an Amended and Restated Agency Agreement
dated 14 September 2018 (the Agency Agreement, which expression shall be construed as a reference to that agreement as the
same may be amended, supplemented and/or restated from time to time) between, inter alia, the Issuer and The Bank of New
York Mellon, acting through its London branch (the Agent, which expression shall include its successor or successors for
the time being

 

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under the Agency Agreement, and
the Paying Agent, which expression shall include any additional or successor paying agent appointed under the Agency Agreement
and Paying Agent shall mean any of the Agent or the Paying Agents so appointed).

 

NOW IT IS HEREBY AGREED that:

 

		(1)	APPOINTMENT OF THE CALCULATION AGENT

 

The Issuer hereby appoints [name
of calculation agent] as Calculation Agent in respect of the Notes listed in the Schedule hereto which are for the time being outstanding
(the Relevant Notes) for the purposes set out in Clause 2 below, all upon terms and conditions hereinafter mentioned. The
agreement of the parties that this Agreement is to apply to each Series of Relevant Notes shall be evidenced by the manuscript
annotation and signature in counterpart of the Schedule.

 

		(2)	DUTIES OF CALCULATION AGENT

 

The Calculation Agent shall in
relation to each series of Relevant Notes (each a Series) perform all the functions and duties imposed on the Calculation
Agent by the terms and conditions of the relevant Series (the Conditions). Without limiting the foregoing, the Calculation
Agent shall calculate, to the extent applicable, the Rate of Interest, Interest Amount, Interest Payment Date, principal and all
other amounts, rates and dates which are required to be determined or calculated under the Conditions for the Relevant Notes and
shall communicate such calculations to the Issuer and the Agent as soon as practicable after such calculations are determined,
but in any event, within time periods sufficient to enable the Agent to publish the results of such determinations in accordance
with the terms of the Agency Agreement. In addition, the Calculation Agent agrees that it will provide a copy of all calculations
made by it which affect the nominal amount outstanding of any Relevant Notes which are identified on the Schedule as being New
Global Notes to the Agent to the contact details set out in the signature page hereof.

 

		(3)	EXPENSES

 

Except as provided in Clause
4 below, the Calculation Agent shall bear all expenses incurred by it in connection with its said services.

 

		(4)	INDEMNITY

 

		(a)	The Issuer shall indemnify and keep indemnified the Calculation Agent against any losses, liabilities,
costs, claims, actions or demands (including, but not limited to, all reasonable costs, legal fees, charges and expenses paid or
incurred by the Calculation Agent in disputing or defending any of the foregoing) which the Calculation Agent may incur or which
may be made against it (excluding consequential losses and losses of profit) as a result of or in connection with its appointment
or the exercise of its powers and duties under this Agreement except such as may result from its own wilful default, negligence
or bad faith or that of its officers, directors or employees or any of them, or the breach by it of the terms of this Agreement.

 

		(b)	The Calculation Agent shall indemnify and keep indemnified the Issuer against any losses, liabilities,
costs, claims, actions or demands (including, but not limited to, all reasonable costs, legal fees, charges and expenses paid or
incurred by the Issuer in disputing or defending any of the foregoing)

 

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which the Issuer may incur or which
may be made against it (excluding consequential losses and losses of profit) as a result of or in connection with the breach by
the Calculation Agent of the terms of this Agreement or its wilful default, negligence or bad faith or that of its officers, directors
or employees or any of them.

 

		(5)	CONDITIONS OF APPOINTMENT

 

		(a)	In acting hereunder in connection with the Relevant Notes, the Calculation Agent shall act solely
as agent of the Issuer and shall not thereby assume any obligations towards or relationship of agency or trust for or with any
of the owners or holders of the Relevant Notes or coupons (if any) appertaining thereto (the Coupons).

 

		(b)	In relation to each Series, the Calculation Agent shall be obliged to perform such duties and only
such duties as are herein and in the Conditions specifically set forth and no implied duties or obligations shall be read into
this Agreement or the Conditions against the Calculation Agent other than the duty to act honestly and in good faith and to exercise
the diligence of a reasonably prudent agent in comparable circumstances.

 

		(c)	The Calculation Agent may consult with legal and other professional advisers and the opinion of
such advisers shall be full and complete protection in respect of any action taken, omitted or suffered hereunder in good faith
and in accordance with the opinion of such advisers.

 

		(d)	The Calculation Agent shall be protected and shall incur no liability for or in respect of any
action taken, omitted or suffered in reliance upon any instruction, request or order from the Issuer or the Agent, or any notice,
resolution, direction, consent, certificate, affidavit, statement, cable or other paper or document which it reasonably believes,
after making reasonable investigation of the same, to be genuine and to have been delivered, signed or sent by the proper party
or parties or upon written instructions from the Issuer.

 

		(e)	The Calculation Agent, and any of its officers, directors and employees, may become the owner of,
or acquire any interest in, any Notes or Coupons (if any) with the same rights that it or he or she would have if the Calculation
Agent were not appointed hereunder, and may engage or be interested in any financial or other transaction with the Issuer and may
act on, or as depositary, trustee or agent for, any committee or body of holders of Notes or Coupons (if any) or other obligations
of the Issuer as freely as if the Calculation Agent were not appointed hereunder.

 

		(6)	TERMINATION OF APPOINTMENT

 

		(a)	The Issuer may terminate the appointment of the Calculation Agent at any time by giving to the
Calculation Agent and the Agent at least 90 days’ prior written notice to that effect, provided that, so long as any of the
Relevant Notes is outstanding, (i) such notice shall not expire less than 45 days before any date upon which any payment is due
in respect of any Relevant Notes and (ii) notice shall be given in accordance with Condition 16 to the holders of the Relevant
Notes at least 30 days prior to any removal of the Calculation Agent.

 

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		(b)	Notwithstanding the provisions of Subclause 6(a) above, if at any time (i) the Calculation Agent
becomes incapable of action, or is adjudged bankrupt or insolvent, or files a voluntary petition in bankruptcy or makes an assignment
for the benefit of its creditors or consents to the appointment of an administrator, liquidator or administrative or other receiver
of all or a substantial part of its property, or if an administrator, liquidator or administrative or other receiver of it or of
all or a substantial part of its property is appointed, or it admits in writing its inability to pay or meet its debts as they
may become due or suspends payment thereof or if any order of any court is entered approving any petition filed by or against it
under the provisions of any applicable bankruptcy or insolvency law or if any public officer takes charge or control of the Calculation
Agent or of its property or affairs for the purpose of rehabilitation, administration or liquidation or (ii) the Calculation Agent
fails duly to perform any function or duty imposed on it by the Conditions and this Agreement, the Issuer may forthwith without
notice terminate the appointment of the Calculation Agent, in which event notice thereof shall be given to the holders of the Relevant
Notes in accordance with Condition 16 of the Relevant Notes as soon as practicable thereafter.

 

		(c)	The termination of the appointment pursuant to Subclause 6(a) or 6(b) above of the Calculation
Agent hereunder shall not entitle the Calculation Agent to any amount by way of compensation but will be without prejudice to any
amount then accrued and due.

 

		(d)	The Calculation Agent may resign its appointment hereunder at any time by giving to the Issuer
and the Agent at least 90 days’ prior written notice to that effect. Following receipt of a notice of resignation from the
Calculation Agent, the Issuer shall promptly give notice thereof to the holders of the Relevant Notes in accordance with Condition
16 of the Relevant Notes.

 

		(e)	Notwithstanding the provisions of Subclauses 6(a), 6(b) and 6(d) above, so long as any of the Relevant
Notes is outstanding, the termination of the appointment of the Calculation Agent (whether by the Issuer or by the resignation
of the Calculation Agent) shall not be effective unless upon the expiry of the relevant notice a successor Calculation Agent has
been appointed. The Issuer agrees with the Calculation Agent that if, by the day falling 10 days before the expiry of any notice
under Clause 6(d), the Issuer has not appointed a replacement Calculation Agent, the Calculation Agent shall be entitled, on behalf
of the Issuer, to appoint as Calculation Agent in its place an investment bank which the Issuer shall approve (such approval not
to be unnecessarily withheld).

 

		(f)	Any successor Calculation Agent appointed hereunder shall execute and deliver to its predecessor
and the Issuer an instrument accepting appointment hereunder, and thereupon such successor Calculation Agent, without further act,
deed or conveyance, shall become vested with all the authority, rights, powers, trusts, immunities, duties and obligations of such
predecessor with like effect as if originally named as the Calculation Agent hereunder.

 

		(g)	If the appointment of the Calculation Agent hereunder is terminated (whether by the Issuer or by
the resignation of the Calculation Agent), the Calculation Agent shall on the date on which such termination takes effect deliver
to the successor Calculation Agent all records concerning the Relevant Notes

 

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maintained by it (except such documents
and records as it is obliged by law or regulation to retain or not to release), but shall have no other duties or responsibilities
hereunder.

 

		(h)	Any corporation into which the Calculation Agent for the time being may be merged or converted
or any corporation with which the Calculation Agent may be consolidated or any corporation resulting from any merger, conversion
or consolidation to which the Calculation Agent shall be a party shall, to the extent permitted by applicable law, be the successor
Calculation Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the
parties hereto. Written notice of any such merger, conversion or consolidation shall forthwith be given to the Issuer and the Agent
by the Calculation Agent.

 

		(i)	Upon the termination of the appointment of the Calculation Agent, the Issuer shall use all reasonable
endeavours to appoint a further bank or investment bank as successor Calculation Agent.

 

		(7)	NOTICES

 

Any notice or communication given
hereunder shall be sufficiently given or served:

 

		(a)	if delivered in person to the relevant address specified below and, if so delivered, shall be deemed
to have been delivered at time of receipt;

 

		(b)	if sent by facsimile to the relevant number specified below, shall be deemed to have been delivered
upon transmission provided such transmission is confirmed when an acknowledgment of receipt is received; or

 

		(c)	if sent by email to the relevant email address specified on the signature pages hereof (or to such
other address as is specified in writing and delivered to the relevant parties to this Agreement) and, if so sent, shall be deemed
to have been delivered at the time of confirmation by telephone:

 

The Issuer:

 

[TOYOTA MOTOR
FINANCE (NETHERLANDS) B.V.

World Trade Center Amsterdam

Tower H, Level 10

Zuidplein 90

1077 XV Amsterdam

The Netherlands

 

	Telephone:	+31 20 502 5310	 
	Telefax:	+31 20 502 5319	 
	Attention:	Chief Executive Officer]	 

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[TOYOTA CREDIT CANADA INC.

80 Micro Court, Suite 200

Markham

Ontario L3R 9Z5

Canada

 

	Telephone:	+1 905 513 8200
	Telefax:	+1 905 513 8335
	Attention:	President]

 

[TOYOTA FINANCE AUSTRALIA LIMITED

Level 9, 207 Pacific Highway

St Leonards

NSW 2065

Australia

 

	Telephone:	+61 2 9430 0000
	Telefax:	+61 2 9430 0913
	Attention:	Treasurer]

 

[TOYOTA MOTOR CREDIT CORPORATION 

6565 Headquarters Drive, Mailstop W2–3D

Plano 

Texas 75024–5965

United States

 

	Telephone:	+1 469 486 9013
	Telefax:	+1 310 381 7739
	Email:	TFS_Treasury_Operations@toyota.com
	Attention:	TFS Treasury Operations]

 

The Calculation Agent: ________________________

 

or to such other address and/or
facsimile number of which notice in writing has been given to the parties hereto in accordance with the provisions of this Clause
7.

 

		(8)	DESCRIPTIVE HEADINGS

 

The descriptive headings in this
Agreement are for convenience of reference only and shall not define or limit the provisions hereof.

 

		(9)	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

 

A person who is not a party to
this Agreement has no right by virtue of the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement,
but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

 

		(10)	COUNTERPARTS

 

This Agreement may be executed
in any number of counterparts, and by each party on separate counterparts. Each counterpart is an original, but all counterparts
shall

 

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together constitute one and the
same instrument. Delivery of a counterpart of this Agreement by e-mail attachment or telecopy shall be an effective mode of delivery.

 

		(11)	GOVERNING LAW

 

		(1)	This Agreement and any non-contractual obligations arising out of or in connection with this Agreement
shall be governed by, and construed in accordance with, the laws of England.

 

		(2)	The Issuer hereby irrevocably agrees for the exclusive benefit of the Calculation Agent that the
courts of England are to have jurisdiction to settle any disputes which may arise out of or in connection with this Agreement (including
a dispute relating to any non-contractual obligations arising out of or in connection with this Agreement) and that accordingly
any suit, action or proceedings (together referred to as Proceedings) arising out of or in connection with this Agreement
(including any Proceedings relating to any non-contractual obligations arising out of or in connection with this Agreement) may
be brought in such courts. The Issuer hereby irrevocably waives any objection which it may have to the laying of the venue of any
Proceedings in any such courts and any claim that any such Proceedings have been brought in an inconvenient forum and hereby further
irrevocably agrees that a judgment in any Proceedings brought in the English courts shall be conclusive and binding upon the Issuer
and may be enforced in the courts of any other jurisdiction. Nothing contained herein shall limit any right to take Proceedings
against the Issuer in any other court of competent jurisdiction, nor shall the taking of Proceedings in one or more jurisdictions
preclude the taking of Proceedings in any other jurisdiction, whether concurrently or not. The Issuer hereby appoints Toyota Financial
Services (UK) PLC of Great Burgh, Burgh Heath, Epsom, Surrey KT18 5UZ as its agent for service of process and agrees that, in the
event of Toyota Financial Services (UK) PLC ceasing so to act or ceasing to be registered in England, it will appoint another person
as its agent for service of process in England in respect of any Proceedings.

 

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IN WITNESS WHEREOF,
this Agreement has been entered into as of the day and year first above written.

 

	[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.
	 	 	 
	 	 	 
	By: 	  	]
	 	 	 
	 	 	 
	[TOYOTA CREDIT CANADA INC.
	 	 	 
	 	 	 
	By: 	  	]
	 	 	 
	 	 	 
	[TOYOTA FINANCE AUSTRALIA LIMITED
	 	 	 
	 	 	 
	By: 	  	]
	 	 	 
	 	 	 
	[TOYOTA MOTOR CREDIT CORPORATION
	 	 	 
	 	 	 
	By: 	  	 
	 	Name:	 
	 	Title:]	 
	 	 	 
	 	 	 
	[NAME OF CALCULATION AGENT]
	 
	 
	By: 	  	 

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SCHEDULE OF RELEVANT NOTES

 

	Series Number	 	Issue Date	 	Maturity Date	 	Title and Nominal Amount	 	New Global Note

[Yes/No]	 	Annotation by Calculation Agent/the Issuer
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

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Appendix D

FORM OF OPERATING and ADMINISTRATIVE

PROCEDURES MEMORANDUM

 

The aggregate nominal
amount of all euro medium term notes (Notes) issued by Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc.,
Toyota Finance Australia Limited and Toyota Motor Credit Corporation outstanding at any time (including Notes issued previously
under the Programme and Notes issued prior to 28 September 2007 by TMCC under its U.S.$30,000,000,000 Euro Medium-Term Note Program
last updated on 28 September 2006 (and further amended on 4 March 2011 with respect to certain Notes) which remain outstanding)
will not exceed €50,000,000,000 or its equivalent in other currencies.

 

The documentation of
the Programme provides for the issue of Notes denominated in such currency (subject to any legal or regulatory restrictions) as
may be agreed between the Issuer (as defined below) and the relevant Purchaser(s) and with a minimum maturity of one month (subject
to certain restrictions as to minimum and/or maximum maturities as set out in the Prospectus (as defined below) describing the
Programme) and being any of:

 

		●	Fixed Rates Notes

 

		●	Floating Rate Notes

 

		●	Zero Coupon Notes

 

		●	other forms of Notes agreed between the relevant Purchaser(s) and the relevant Issuer.

 

All terms with initial
capitals used herein without definition shall have the meanings given to them in the Prospectus dated 14 September 2018 as supplemented
or replaced from time to time (the Prospectus) or, as the case may be, in the Programme Agreement dated 14 September 2018
between Toyota Motor Finance (Netherlands) B.V. (TMF), Toyota Credit Canada Inc. (TCCI), Toyota Finance Australia
Limited (TFA) and Toyota Motor Credit Corporation (TMCC and together with TMF, TCCI and TFA, the Issuers)
and the Dealers named therein as amended, supplemented, novated or restated from time to time (the Programme Agreement)
pursuant to which the Issuers may issue Notes. References herein to Issuer are to TMF, TCCI, TFA or TMCC, as the case may
be, in its capacity as Issuer of Notes.

 

As used herein in relation
to any Notes which are to have a “listing” or to be “listed” (i) on the London Stock Exchange, listing
and listed shall be construed to mean that such Notes have been admitted to the Official List in accordance with the listing
rules of the UK Listing Authority and admitted to trading on the London Stock Exchange’s Regulated Market and (ii) on any
other Stock Exchange within the European Economic Area, listing and listed shall be construed to mean that the Notes
have been admitted to trading on a market within that jurisdiction which is a regulated market for the purposes of the Markets
in Financial Instruments Directive (Directive 2014/65/EU).

 

This Operating and
Administrative Procedures Memorandum applies to Notes issued on and after 14 September 2018. The procedures set out in Annex 1
may be varied by agreement between the Issuer, the Agent and the relevant Purchaser, including to take account

 

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of any standardised procedures published
by Euroclear and/or Clearstream, Luxembourg (together, the ICSDs) and/or the International Capital Market Services Association
(ICMSA) and/or the International Capital Market Association (ICMA). The timings set out in these procedures represent optimum timings
to ensure a smooth settlement process. Each of the ICSDs has its own published deadlines for taking certain of the actions described
herein (which may be later than the timings described herein). The Issuer, the Agent, the relevant Purchaser, and the common depositary,
or common service provider and common safekeeper, as the case may be, may agree to vary the timings described herein subject to
compliance with such deadlines.

 

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OPERATING PROCEDURES

 

Purchasers must confirm all trades directly
with the Issuer and the Agent.

 

		1.	RESPONSIBILITIES OF THE AGENT

 

The Agent will, in addition to
the responsibilities in relation to settlement described in Annex A, be responsible for the following:

 

		(1)	in the case of Notes which are to be listed on a stock exchange (the relevant Stock Exchange),
distributing to the relevant Stock Exchange and any other relevant authority such number of copies of the Final Terms as they may
reasonably require; and

 

		(2)	where applicable, providing the Ministry of Finance of Japan with all required notifications and
reports (including any monthly reports as to amounts, issue dates and other terms of each Tranche of Yen-denominated Notes).

 

		2.	RESPONSIBILITIES OF THE LISTING AGENT/ARRANGER/LEAD MANAGER/DEALER

 

		(1)	The Lead Manager/Dealer/other Purchaser shall be responsible for preparing the applicable Final
Terms (substantially in the form of either Part A or Part B of Annex B hereto) to the Prospectus giving details of the Notes to
be issued.

 

		(2)	In the case of Notes to be listed on a relevant Stock Exchange, the Listing Agent/Arranger or Lead
Manager will be responsible for ensuring compliance with the Prospectus Rules (if applicable) and the Listing Rules and obtaining
all necessary approvals for listing the Notes on the relevant Stock Exchange. The Issuer recognises with respect to this Clause
2(2) its continuing obligation so long as any Notes under the Programme are outstanding to apprise the applicable Dealers of any
material adverse change in its (consolidated, if applicable) financial position or its business operations.

 

		3.	RESPONSIBILITIES OF THE ISSUER

 

The Issuer shall execute and
deliver the Final Terms to the Agent and the Lead Manager/Dealer/other Purchaser.

 

		4.	SETTLEMENT

 

The settlement procedures set
out in Annex A shall apply to each issue of Bearer Notes, unless otherwise agreed between the Issuer and the relevant Dealer or
Dealers.

 

Settlement procedures for an
issue of Registered Notes issued by TCCI are set out in the TCCI Note Agency Agreement. Settlement procedures for an issue of Registered
Notes issued by TMCC are set out in the TMCC Note Agency Agreement.

 

Trading Desk Information list
is set out in Annex E.

 

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ANNEX A TO APPENDIX
D

SETTLEMENT PROCEDURES

 

The procedures set out below have been
discussed and agreed by the ICSDs, representatives of ICMA and representatives of ICMSA. It is recommended that these procedures
are adopted without material amendment to facilitate standardisation in the market and a smooth closing procedure. ****

 

Times set out below are London times
and represent the latest time for taking the action concerned. It is recommended that where possible the action concerned is taken
in advance of these times.

 

	Day	Latest time	Action
	No later than Issue Date minus 3	2:00 p.m.	The Issuer or its designated agent may agree to terms with one or more of the Purchasers for the issue and purchase of Notes1.  The relevant Purchaser instructs the Agent to obtain a common code and ISIN (and any other relevant financial instrument codes such as CFI code and FISN) or, if relevant, a temporary common code and ISIN (and any other relevant financial instrument codes such as CFI code and FISN) for the Notes from one of the ICSDs.
	Issue Date minus 2	5:00 p.m.	If a Purchaser has reached agreement with the Issuer by telephone, the Purchaser confirms the terms of the agreement to the Issuer (substantially in the form of Annex C) attaching a copy of the applicable Final Terms (substantially in the form set out in Annex B) by electronic communication.  The Purchaser sends a copy of that electronic communication to the Agent for information.
	 	 	The Issuer confirms its agreement to the terms on which the issue of Notes is to be made (including the form of the Final Terms) by signing and returning a copy of the Final Terms to the relevant Purchaser and the Agent.  The details set out in the signed Final Terms shall be conclusive evidence of the agreement (save in the case of manifest error) and shall be binding on the parties accordingly.  The Issuer also confirms its instructions to the Agent (substantially in the form set out in Annex D) (including, in the case of Floating Rate Notes, for the purposes of rate fixing) to carry out the duties to be carried out by the Agent under these Settlement Procedures and the Agency Agreement including preparing and authenticating a 

 

 

	 	****	In the case of a syndicated Note issue, certain of the Settlement Procedures set forth below will be revised as appropriate.

		1	Relevant
Purchaser(s) to consider whether it/they have reviewed the necessary product classification from the Issuer prior to the launch
of the offer, pursuant to Section 309B of the Securities and Futures Act (Chapter 289) of Singapore. 

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	Day	Latest time	Action
	 	 	Temporary Global Note for the Tranche of Notes which is to be purchased and, in the case of the first Tranche of a Series, where the applicable Final Terms do not specify that the Temporary Global Note is to be exchangeable only for Notes in definitive form, a Permanent Global Note for the Series.
	 	 	In the case of Floating Rate Notes, the Agent notifies the ICSDs, the Issuer, (if applicable) the relevant Stock Exchange and any other relevant authority and the relevant Purchaser of the Rate of Interest for the first Interest Period (if already determined).  Where the Rate of Interest has not yet been determined, this will be notified in accordance with this paragraph as soon as it has been determined.
	 	 	If the Issuer has agreed with two or more Purchasers to issue Notes on a syndicated basis, it is to enter into an agreement with such Purchasers in the form or substantially the form set out in Appendix 5 to the Programme Agreement.
	No later than Issue Date minus 1	2:00 p.m.	In the case of Notes which are to be listed on a Stock Exchange or publicly offered in a European Economic Area Member State, the Agent also notifies the Stock Exchange and/or any other relevant authority, as the case may be, by electronic communication or by hand of the details of the Notes to be issued by sending the applicable Final Terms to the Stock Exchange and/or any other relevant authority, as the case may be. 
	Issue Date minus 1	10:00 a.m. (for prior day currencies2)	The relevant Purchaser and the Agent give settlement instructions to the relevant ICSD(s) to effect the payment of the purchase price, against delivery of the Notes, to the Agent’s account with the relevant ICSD(s) on the Issue Date.  
	 	12.00 noon (for other currencies)	The parties (which for this purpose shall include the Agent) may agree to arrange for “free delivery” to be made through the relevant ICSD(s) if specified in the applicable Final Terms, in which case these Settlement Procedures will be amended accordingly.
	Issue Date minus 1	ICSD deadlines for the relevant currency	For prior day currencies, the Agent instructs the relevant ICSD(s) to debit its account and pay for value on the Issue Date the aggregate purchase moneys received by it to the account of the Issuer previously notified to the Agent for the purpose. 
	 	 	 

 

		2	The most common prior day currencies are Australian dollars (AUD), Hong Kong dollars (HKD), Japanese yen (JPY) and New Zealand dollars (NZD) but other currencies in similar time zones may also be prior day currencies. The parties should establish whether or not a particular currency is a prior day currency as soon as possible.

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	Day	Latest time	Action
	Issue Date minus 1	3.00 p.m.	The Agent prepares and authenticates a Temporary Global Note for each Tranche of Notes which is to be purchased and, where required as specified above, a Permanent Global Note in respect of the relevant Series, in each case attaching the applicable Final Terms.
	 	 	Each Global Note which is a CGN is then delivered by the Agent to the Common Depositary.  Each Global Note which is a New Global Note is then delivered by the Agent to the common safekeeper, together (if applicable) with an effectuation instruction.  In the event that the common service provider and the common safekeeper are not the same entity, the Agent should also deliver the applicable Final Terms to the common service provider.
	 	 	For securities in New Global Note form, the Agent then instructs the mark up of the issue outstanding amount of the Global Note to the ICSDs through the common service provider.
	Issue Date minus 1	5.00 p.m.	The conditions of issue in the Programme Agreement are satisfied and/or waived.
	 	 	In the case of each Global Note which is a New Global Note, the common safekeeper confirms deposit and effectuation (if applicable)3 of the Global Note to the Agent, the common service provider and the ICSDs.
	Issue Date minus 1	6.00 p.m.	In the case of each Global Note which is a CGN, the Common Depositary confirms deposit of the Global Note to the Agent and the ICSDs. 
	 	 	In the case of each Global Note which is a New Global Note, the common service provider relays the Agent’s instruction to mark up the issue outstanding amount of the Global Note to the ICSDs.

	Issue Date	According to ICSD settlement procedures	The ICSDs debit and credit accounts in accordance with instructions received from the Agent and the relevant Purchaser.

	Issue Date	
        ICSD deadlines for the relevant currency

         
	For non-prior day currencies, the Agent instructs the relevant ICSD(s) to debit its account and pay for value on the Issue Date the aggregate purchase moneys received by it to the account of the Issuer previously notified to the Agent for the purpose.

 

 

 

		3	This assumes that an effectuation authorisation has been delivered by the Issuer to the common safekeeper (i.e. Euroclear or Clearstream, Luxembourg) at the update of the programme. If this is not the case, such an authorisation should be delivered at least 2 business days prior to the closing of the first issue of Eurosystem-eligible New Global Notes under the Programme.

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	Day	Latest time	Action
	Issue Date	5.00 p.m.	The Agent forwards a copy of the signed Final Terms to each ICSD.
	On or subsequent to the Issue Date	 	The Agent notifies the Issuer immediately in the event that a Purchaser does not pay the purchase price due from it in respect of a Note. 
	 	 	The Agent notifies the Issuer of the issue of Notes giving details of the Global Note(s) and the nominal amount represented thereby.
	 	 	The Agent confirms the issue of Notes to the relevant Stock Exchange and any other relevant authority.
	 	 	The relevant Purchaser promptly notifies the Agent that the distribution of the Notes purchased by it has been completed.  The Agent promptly notifies the Issuer, the relevant Purchaser and the ICSDs of the Exchange Date with respect to the relevant Tranche of Notes.

 

Explanatory Notes to Settlement Procedures

 

		(a)	Each Day is a day on which banks and foreign exchange markets are open for general business
in London (including dealings in foreign exchange and foreign currency deposits), counted in reverse order from the proposed Issue
Date.

 

		(b)	The Issue Date must be a Business Day. For the purposes of this Memorandum, Business
Day means a day which is:

 

		(1)	a day on which commercial banks and foreign exchange markets settle payments and are open for general
business (including dealing in foreign exchange and foreign currency deposits) in London and any other place specified in the applicable
Final Terms as an Additional Business Centre;

 

		(2)	(i) in relation to Notes denominated in a Specified Currency other than euro and Renminbi, a day
on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealings in
foreign exchange and foreign currency deposits) in the principal financial centre of the country of the relevant Specified Currency;
or (ii) in relation to Notes denominated in euro, a day on which the TARGET2 system is open; or (iii) in relation to any sum payable
in Renminbi, a day on which commercial banks and foreign exchange markets are open for business and settlement of Renminbi payments
in Hong Kong. Unless provided otherwise in the applicable Final Terms, the principal financial centre of any country shall be as
provided in the 2006 ISDA Definitions (except in the case of Australia and New Zealand, where the principal financial centre will
be Sydney or Auckland, respectively); and

 

		(3)	a day on which the ICSDs and any other relevant clearing system is open for general business.

 

		(c)	Times given can be modified upon the mutual agreement of the Purchaser, the Agent and the Issuer.

 

    Page 135

     

    

		(d)	If at any time the Agent is notified by the Issuer or the relevant Stock Exchange that the listing
of a Series of Notes has been refused or otherwise will not take place, the Agent shall immediately notify the Issuer, the Dealer
and all the relevant Purchaser(s) (if not the Dealer).

 

		(e)	If any final terms or information to be included in the applicable Final Terms constitute “significant
new factors” and consequently trigger the need for a supplement to the Prospectus under Article 16 of the Prospectus Directive
the timings outlined above will change as the Final Terms will need to be approved by the relevant authority as a supplement, which
can take up to seven working days.

 

		(f)	Where a clearing system other than Euroclear or Clearstream, Luxembourg is used for an issue, references
to the ICSDs shall be interpreted accordingly.

 

    Page 136

     

    

 

ANNEX B TO APPENDIX
D

 

FORM OF FINAL TERMS

 

Part A

 

FORM
OF FINAL TERMS IN CONNECTION WITH ISSUES OF NOTES WITH A DENOMINATION OF AT LEAST €100,000 (or equivalent in any other currency)
TO BE ADMITTED TO TRADING ON AN EEA REGULATED MARKET

 

[MiFID II product
governance / Retail investors [(limited to those resident in [insert relevant jurisdiction(s)] only)], professional investors
and ECPs target market – Solely for the purposes of [the/each] manufacturer’s product approval process, the target
market assessment in respect of the Notes has led to the conclusion that: (i) the target market for the Notes is eligible counterparties[,]/[and]
professional clients [outside the European Economic Area (“EEA”),] [and]/[as well as] retail clients [(limited
to those resident in [insert relevant jurisdiction(s)] only),] each as defined in Directive 2014/65/EU (as amended, “MiFID
II”); and (ii) all channels for distribution of the Notes to eligible counterparties and professional clients [outside
the EEA,] [and retail clients (limited to those resident in [insert relevant jurisdiction(s)] only)] are appropriate[, subject
to compliance with applicable [insert relevant jurisdiction(s)] securities laws and regulations.] [; and (iii) the following
channels for distribution of the Notes to retail clients are appropriate - investment advice, portfolio management, non-advised
sales and pure execution services - subject to the distributor’s suitability and appropriateness obligations under MiFID
II, as applicable.] Any person subsequently offering, selling or recommending the Notes (a “distributor”) should
take into consideration the manufacturer[’s/s’] target market assessment; however, a distributor subject to MiFID II
is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the manufacturer[’s/s’]
target market assessment) and determining appropriate distribution channels [outside the EEA with all sales], subject to the distributor’s
suitability and appropriateness obligations under [MiFID II, as applicable.]/[[insert relevant jurisdiction(s)] securities
laws and regulations.]]

 

[MiFID II product
governance / Professional investors and ECPs only target market – Solely for the purposes of [the/each] manufacturer’s
product approval process, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market
for the Notes is eligible counterparties and professional clients only, each as defined in Directive 2014/65/EU (as amended, “MiFID
II”); and (ii) all channels for distribution of the Notes to eligible counterparties and professional clients are appropriate.
Any person subsequently offering, selling or recommending the Notes (a “distributor”) should take into consideration
the manufacturer[’s/s’] target market assessment; however, a distributor subject to MiFID II is responsible for undertaking
its own target market assessment in respect of the Notes (by either adopting or refining the manufacturer[’s/s’] target
market assessment) and determining appropriate distribution channels.]

 

[PRIIPs Regulation
/ Prospectus Directive / PROHIBITION OF SALES TO EEA RETAIL INVESTORS – The Notes are not intended to be offered, sold
or otherwise made available to and should not be offered, sold or otherwise made available to any [retail] investor in the European
Economic Area (“EEA”). [For these purposes, a “retail investor” means a person who is one (or more)
of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, “MiFID II”);
(ii) a customer within the meaning of Directive 2002/92/EC (as amended), where that customer would not qualify as a professional
client as defined in point (10) of Article 4(1) of MiFID II; or (iii) not a qualified investor as defined in the Prospectus Directive
(as defined below).] [Consequently no key information document required by Regulation (EU) No 1286/2014 (as amended, the “PRIIPs
Regulation”) for offering or selling the Notes or otherwise making them available to retail investors in the EEA has
been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investor in the EEA
may be unlawful under the PRIIPs Regulation.]]

 

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Notification under
Section 309B(1)(c) of the Securities and Futures Act (Chapter 289) of Singapore [the “SFA”] - The Notes are [prescribed
capital markets products]/[capital markets products other than prescribed capital markets products] (as defined in the Securities
and Futures (Capital Markets Products) Regulations 2018) and [Excluded Investment Products]/[Specified Investment Products] (as
defined in MAS Notice SFA 04-N12: Notice on the Sale of Investment Products and MAS Notice FAA-N16: Notice on Recommendations on
Investment Products).1] [2

 

Final Terms

 

Dated [ ]

 

[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.]

 

[TOYOTA CREDIT CANADA INC.]

 

[TOYOTA FINANCE AUSTRALIA LIMITED (ABN
48 002 435 181)]

 

[TOYOTA MOTOR CREDIT CORPORATION]

 

[Legal Entity Identifier (“LEI”):
[     ]]

 

Issue of [Aggregate Nominal Amount of
Tranche] [Title of Notes]

under the €50,000,000,000

Euro Medium Term Note Programme

established by

Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc.,

Toyota Finance Australia Limited and Toyota Motor Credit Corporation

 

PART A – CONTRACTUAL TERMS

 

Terms used herein
shall be deemed to be defined as such for the purposes of the Terms and Conditions of the Notes set forth in the Prospectus dated
14 September 2018 [and the supplement[s] to it dated [date] [and [date]]], including all documents incorporated by
reference ([the Prospectus as so supplemented,] the “Prospectus”) which constitutes a base prospectus for the
purposes of the Prospectus Directive (as defined below). This document constitutes the Final Terms of the Notes [described herein
for the purposes of Article 5.4 of the Prospectus Directive – remove for unlisted Notes] and must be read in conjunction
with the Prospectus. Full information on the Issuer and the offer of the Notes is only available on the basis of the combination
of these Final Terms and the Prospectus. The Prospectus has been published on the website of the London Stock Exchange at http://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.

 

[The following alternative
language applies if the first Tranche of an issue which is being increased was issued under a Prospectus or Offering Circular with
an earlier date.

 

Terms used herein shall
be deemed to be defined as such for the purposes of the Terms and Conditions of the Notes (the “Conditions”)
set forth in and extracted from the Prospectus/Offering Circular dated [original date] and which are incorporated by reference
in the Prospectus dated 14 September 2018. This document constitutes the Final Terms of the Notes [described herein for the purposes
of Article 5.4 of the Prospectus Directive (as defined below) – remove for unlisted
Notes] and must be read in conjunction with the Prospectus dated 14 September 2018,
including the Conditions which are incorporated by reference in it [and the supplement[s] to it dated [date] [and
[date]]], including all documents incorporated by reference ([the Prospectus as so supplemented,] the “Prospectus”)
which constitutes a base prospectus for the purposes of the Prospectus Directive. Full information
on the Issuer and the offer of the Notes is only available on the basis of the combination of these Final Terms and the Prospectus.
The Prospectus has been

 

 

 

		1	Insert “prescribed capital market products” and “Excluded Investment Products” or, if not, amend Singapore product classification.

		2 

                                                                                 
	Relevant Dealer(s) to consider whether it/they have received the necessary Singapore product classification from the Issuer prior to the launch of the offer, pursuant to Section 309B of the SFA.

    Page 138

     

    

published on the website of the London 
Stock Exchange at http://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.]

 

The
expression “Prospectus Directive” means Directive 2003/71/EC (as amended, including by Directive 2010/73/EU),
and includes any relevant implementing measure (for the purpose of the Prospectus, [the Terms and Conditions of the Notes set forth
in the Prospectus]/[the Conditions] and these Final Terms) in the relevant Member State.

 

[Include whichever
of the following apply or specify as “Not Applicable”. Note that the numbering should remain as set out below, even
if “Not Applicable” is indicated for individual paragraphs (in which case the sub-paragraphs of the paragraphs which
are not applicable can be deleted). Italics denote guidance for completing the Final Terms.]

 

	1.	(i)	Issuer:	[         ]
	 	(ii)	Credit Support Providers:	Toyota Motor Corporation

Toyota Financial Services Corporation
	2.	[(i)]	Series Number:	[         ]
	 	[(ii)]	Tranche Number:	[         ]
	 	[(iii)]	Uridashi Notes:	[Applicable]/[Not Applicable]
	 	[(iv)]	Date on which the Notes will be consolidated and form a single Series:	[Not Applicable]/[The Notes shall be consolidated and form a single Series and be interchangeable for trading purposes with the [insert description of the Series] on [insert date/the Issue Date/exchange of the Temporary Global Note for interests in the Permanent Global Note, as referred to in paragraph 25 below [which is expected to occur on or about [insert date]]].]

	3.	Specified Currency:	[         ]
	4.	Aggregate Nominal Amount:	[         ]

	 	[(i)]	Series:	[         ] 
	 	[(ii)]	Tranche:	[         ]

	5.	Issue Price:	[         ] per cent. of the Aggregate Nominal Amount [plus [         ] days’ accrued interest in respect of the period from, and including, [insert date] to, but excluding, [insert date] (if applicable)]

	6.	(i)	Specified Denominations:	
        [         ] 

        [[€100,000]
        and integral multiples of [€1,000] in excess thereof up to and including [€199,000]. No Notes in definitive form will
        be issued with a denomination above [€199,000].]

        

	 	(ii)	Calculation Amount:	
        [
        ] 

        (If there is only one
        Specified Denomination, insert the Specified Denomination.

        

        If there is more than
        one Specified Denomination insert the highest common factor of those Specified Denominations. N.B. There must be a common factor
        in the case of two or more Specified Denominations)

        

	7.	(i)	Issue Date:	[         ]
	 	(ii)	Interest Commencement Date:	
        [         ]/[Issue Date]/[Not
        Applicable]

         

    Page 139

     

    

	 	 	 	(N.B. An Interest Commencement Date will not be relevant for certain Notes, for example, Zero Coupon Notes)

	8.	Maturity Date:	
        [      ] 

        [Fixed rate - Specify date / Floating
        rate - Interest Payment Date falling in or nearest to [specify month and year]]

        

        (N.B. The Maturity
Date may need to be not less than one year after the Issue Date and, in the case of Notes issued by TMF, should not be more than
50 years after the Issue Date) 

	9.	Interest Basis:	
        [[      ] per cent. Fixed Rate]

        

        [Fixed Rate Step-up/Step-down] 

        [[      ] month [LIBOR/EURIBOR/CAD-BA-CDOR] +/–
        [      ] per cent. Floating Rate]

        

        [Zero Coupon] 

        (See paragraph 16/17/18 below)

        

	10.	Redemption Basis:	Redemption at par
	11.	Change of Interest Basis:	[Not Applicable]/[For the period from (and including) the Interest Commencement Date, up to (but excluding) [specify date] paragraph [16/17] applies and for the period from (and including) [specify date], up to (but excluding) the Maturity Date, paragraph [16/17] applies]
	12.	Put/Call Options: 	
        [Investor Put Option]

[Issuer Call Option]

[Issuer Maturity Par Call Option] 

        [Issuer Make-Whole Call Option]

        

        [Not Applicable] 

        [(See paragraph(s) 19/20/21/22 below)]

        

	13.	(i)	Status of the Notes:	Senior
	 	(ii)	Nature of the Credit Support:	See “Relationship of TFS and the Issuers with the Parent” in the Prospectus dated 14 September 2018

	14.	Date [Board]/[Executive Committee of the Board] approval for issuance of Notes obtained:	[         ]
	15.	Negative Pledge covenant set out in Condition 3:	[Applicable [Uridashi Notes only]]/[Not Applicable]

	PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE 

	16.	Fixed Rate Note Provisions 	
        [Applicable]/[Not
        Applicable]

        

        (If not applicable,
delete the remaining sub-paragraphs of this paragraph) 

	 	(i)	Fixed Rate(s) of Interest:	[         ] per cent. per annum payable [[         ] in arrear] on each Interest Payment Date [from and including, [         ] to, but excluding, [         ]] [. The first Fixed Interest Period shall be the period commencing on, and including, the Interest Commencement Date and ending on, but excluding, [         ] (short first coupon)]

    Page 140

     

    

	 	(ii)	Interest Payment Date(s):	[         ] [and [         ]] in each year from, and including, [         ] up to, and including, [the Maturity Date]/[         ] [adjusted in accordance with the [Following Business Day Convention]/ [Modified Following Business Day Convention]]/[         ] [with the Additional Business Centres for the definition of “Business Day” being [         ]] [[adjusted]/[with no adjustment] for period end dates]/[. For the avoidance of doubt, the Fixed Coupon Amount [and the Broken Amount] shall remain unadjusted]
	 	(iii)	Fixed Coupon Amount(s):	[         ] per Calculation Amount (applicable to [the Notes in definitive form]/[Uridashi Notes]) [and [         ] per Aggregate Nominal Amount of the Notes (applicable to the Notes in global form)], payable [[         ] in arrear] on [         ]/[each Interest Payment Date][, except for the amount of interest payable on the first Interest Payment Date falling on [         ]][. [This]/[These] Fixed Coupon Amount[s] appl[ies]/[y] if the Notes are represented by a global Note or are in definitive form]
	 	(iv)	Broken Amount(s):	[[         ] per Calculation Amount (applicable to [the Notes in definitive form]/[Uridashi Notes]) [and [         ] per Aggregate Nominal Amount of the Notes (applicable to the Notes in global form)], payable on the Interest Payment Date falling on [         ]] [. This Broken Amount applies if the Notes are represented by a global Note or are in definitive form]/[Not Applicable]
	 	(v)	[Fixed] Day Count Fraction:	[Actual/Actual (ICMA)]/[Actual/Actual (ISDA)]/ [30/360]/[Actual/360]/[Actual/Actual Canadian Compound Method]/[Actual/365 (Fixed)]
	 	(vi)	Determination Date(s):	
        [[ ] in each year]/[Not
        Applicable]

        

        (Insert regular interest
        payment dates, ignoring issue date or maturity date in the case of a long or short first or last coupon. N.B. Only relevant where
        the Fixed Day Count Fraction is Actual/Actual (ICMA))

        

	17.	Floating Rate Note Provisions	
        [Applicable]/[Not
        Applicable]

        

        (If
not applicable, delete the remaining sub-paragraphs of this paragraph)
 

	 	(i)	Specified Period(s)/Specified Interest Payment Dates:	[         ] / [         ] in each year [subject to adjustment in accordance with the Business Day Convention set out in (iii) below]
	 	(ii)	First Interest Payment Date:	[         ]
	 	(iii)	Business Day Convention:	[Floating Rate Convention]/[Following Business Day Convention]/[Modified Following Business Day Convention]/[Preceding Business Day Convention]

    Page 141

     

    

	 	(iv)	Additional Business Centre(s):	[         ]
	 	(v)	Manner in which the Rate of Interest and Interest Amount is/are to be determined:	[Screen Rate Determination]/[ISDA Determination]
	 	(vi)	Party responsible for calculating the Rate of Interest and Interest Amount (if not the Agent) (the “Calculation Agent”):	[         ] 
	 	(vii)	Screen Rate Determination:	 
	 	 	- Reference Rate:	[         ] month [LIBOR/EURIBOR/CAD-BA-CDOR]
	 	 	- Relevant Financial Centre:	[London/Brussels/Toronto/specify other Relevant Financial Centre]
	 	 	-Interest Determination Date(s):	(Second London business day prior to the start of each Interest Period if LIBOR (other than Sterling or euro LIBOR), first day of each Interest Period if Sterling LIBOR or CAD-BA-CDOR and the second day on which TARGET2 System is open prior to the start of each Interest Period if EURIBOR or euro LIBOR)
	 	 	- Relevant Screen Page:	(Insert page on which the Reference Rate is for the time being displayed on Reuters Monitor Money Rates Service or Dow Jones Markets Limited for LIBOR/EURIBOR/CAD-BA-CDOR)
	 	 	 	(In the case of EURIBOR, if not Reuters EURIBOR01 ensure it is a page which shows a composite rate)
	 	 	- Specified Time:	
        [11:00 a.m. [London/Brussels]
        time]

        [In the case of LIBOR/EURIBOR]/

        

        [10:00 a.m. Toronto
time] [In the case of CAD-BA-CDOR] 

	 	(viii)	ISDA Determination:	 
	 	 	- Floating Rate Option:	[         ]
	 	 	- Designated Maturity:	[         ]
	 	 	- Reset Date:	
        [         ]

        

        (The first day of the Interest
        Period)

        

	 	(ix)	Linear Interpolation:	
        [Not Applicable/Applicable
        – the Rate of Interest for the [long/short] [first/last] Interest Period or Specified Period shall be calculated using Linear
        Interpolation

         

        (Specify for each short
        or long Interest Period)]

         

	 	(x)	Margin(s):	[+/-][        ] per cent. per annum
	 	(xi)	Minimum Rate of Interest:	[         ] per cent. per annum
	 	(xii)	Maximum Rate of Interest:	[         ] per cent. per annum
	 	(xiii)	Day Count Fraction:	[Actual/Actual
(ISDA)] [Actual/Actual]

[Actual/365 (Fixed)]

[Actual/360]

    Page 142

     

    

	 	 	 	[30/360] [360/360] [Bond Basis]

[30E/360] [Eurobond Basis]

[30E/360 (ISDA)]

[Actual/365 (Sterling)]

	18.	Zero Coupon Note Provisions 	
        [Applicable]/[Not Applicable]

        

        (If not applicable,
delete the remaining sub-paragraphs of this paragraph) 

	 	(i)	Accrual Yield:	[         ] per cent. per annum
	 	(ii)	Reference Price:	[         ]

	PROVISIONS RELATING TO REDEMPTION

	19.	Issuer Call Option	
        [Applicable]/[Not
        Applicable]

        

        (If not
applicable, delete the remaining sub-paragraphs of this paragraph) 

	 	(i)	Optional Redemption Date(s):	[         ]
	 	(ii)	Optional Redemption Amount(s) of each Note:	[         ] per Calculation Amount
	 	(iii)	If redeemable in part:	 
	 	 	(a)   Minimum Redemption Amount:	[[         ] per Calculation Amount]/[Not Applicable]
	 	 	(b)   Maximum Redemption Amount:	[[         ] per Calculation Amount]/[Not Applicable]
	 	(iv)	Notice periods (if other than set out in the Conditions):	
        [Minimum period: [ ] days]/[Not
        Applicable]

        

        [Maximum period: [
] days]/[Not Applicable] 

	20.	Issuer Maturity Par Call Option	
        [Applicable]/[Not
Applicable] 

        (If not applicable,
        delete the remaining sub-paragraphs of this paragraph)
        

        

	 	   [Notice periods (if other than set out in the Conditions):]	
        [Minimum period: [ ] days]/[Not
        Applicable]

        

        [Maximum period: [
] days]/[Not Applicable] 

	21.	Issuer Make-Whole Call Option	
        [Applicable]/[Not
        Applicable]

        

        (If
not applicable, delete the remaining sub-paragraphs of this paragraph)
 

	 	(i)	Optional Redemption Date(s):	[         ]/[at any time that is more than 90 days prior to the Maturity Date]
	 	(ii)	Optional Redemption Amount of each Note:	[[         ] per Calculation Amount]/[Special Redemption Amount]
	 	(iii)	Specified Time for Special Redemption Amount:	[         ]/[Not Applicable]
	 	(iv)	Redemption Margin:	[[         ] per cent.]/[Not Applicable]
	 	(v)	If redeemable in part:	 
	 	 	(a)   Minimum Redemption Amount:	[[         ] per Calculation Amount]/[Not Applicable]

    Page 143

     

    

	 	 	(b)   Maximum Redemption Amount:	[[         ] per Calculation Amount]/[Not Applicable]
	 	(vi)	Calculation Agent (if not the Agent) (the “Calculation Agent”):	[Not Applicable]/[         ]
	 	(vii)	Notice periods (if other than set out in the Conditions):	
        [Minimum period: [ ] days]/[Not
        Applicable]

        

        [Maximum period: [
] days]/[Not Applicable] 

	22.	Investor Put Option	
        [Applicable]/[Not
Applicable] 

        (If not applicable,
        delete the remaining sub-paragraphs of this paragraph)
        

        

	 	(i)	Optional Redemption Date(s): 	[         ]
	 	(ii)	Optional Redemption Amount(s) of each Note:	[         ] per Calculation Amount

	23.	Final Redemption Amount	[         ] per Calculation Amount
	24.	Early Redemption Amount	 
	 	Early Redemption Amount payable on redemption for taxation reasons or on event of default or other earlier redemption:	[         ] per Calculation Amount

	GENERAL PROVISIONS APPLICABLE TO THE NOTES

	25.	Form of Notes:	 

	 	 	 	
        [          ] 

        (Insert description that is consistent
        with one of the options in the “Form of the Notes” section of the Prospectus)

        

	26.	[New Global Note]/[New Safekeeping Structure]:	[Yes]/[No]
	27.	Additional Financial Centre(s):	
        [Not Applicable/give details]

        

        (Note that this paragraph relates
to the place of payment and not Interest Period end dates to which sub-paragraph 16(ii) or 17(iv) relates) 

	28.	Talons for future Coupons to be attached to definitive Notes:	[No]/[Yes.  As the Notes have more than 27 coupon payments, Talons may be required if, on exchange into definitive form, more than 27 coupon payments are still to be made.]
	29.	Reference Currency Equivalent (if different from US dollars as set out in Condition 5(h)):	[Not Applicable/give details]
	30.	Defined terms/Spot Rate (if different from that set out in Condition 5(h)):	[Not Applicable/give details]
	31.	Calculation Agent responsible for calculating the Spot Rate for the purposes of Condition 5(h) (if not the Agent):	[Not Applicable/give details]
	32.	RMB Settlement Centre(s) for the purposes of Conditions 5(a) and 5(h):	[Not Applicable/give details]

    Page 144

     

    

	33.	Settlement (if different from that set out in Condition 5(h)):	[Not Applicable/give details]
	34.	Relevant Benchmark:	[[specify benchmark] is provided by [administrator legal name]. As at the date hereof, [administrator legal name] [appears]/[does not appear] in the register of administrators and benchmarks established and maintained by ESMA pursuant to Article 36 (Register of administrators and benchmarks) of the Benchmark Regulation]/[Not Applicable]

	RESPONSIBILITY
	The Issuer accepts responsibility for the information contained in these Final Terms.  [[Relevant third party information] has been extracted from [specify source].  The Issuer confirms that such information has been accurately reproduced and that, so far as it is aware and is able to ascertain from information published by [specify source], no facts have been omitted which would render the reproduced information inaccurate or misleading.] 
	 
	 

	Signed on behalf of the Issuer:	 
	 	 	 
	 	 	 
	[NAME OF ISSUER]	 
	 	 	 
	 	 	 
	By:	..............................................................	 
	 	Name:	 
	 	Title:	 

	
         

         

        Duly
        authorised

         

        cc:The Bank of New York
        Mellon, acting through its London branch

        [Registered Notes – BNY Trust Company of Canada / The Bank of New York Mellon SA/NV, Luxembourg Branch (TCCI only)]

        [Registered Notes – The Bank of New York Mellon SA/NV, Luxembourg Branch (TMCC only)]

         

    Page 145

     

    

PART B – OTHER INFORMATION

 

	1.	LISTING AND ADMISSION TO TRADING

	(i)	Listing and admission to trading:	
        [Application
        has been made by the Issuer (or on its behalf) for the Notes to be admitted to trading on [the London
        Stock Exchange’s Regulated Market] and for listing on [the Official List of the UK Listing Authority] with effect from [
        ].] / [Application is expected to be made by the Issuer (or on its behalf) for the Notes to be admitted to trading on the [London
        Stock Exchange’s Regulated Market] and for listing on [the Official List of the UK Listing Authority] with effect from [
        ].] / [Not Applicable.] 

        

        (Where
documenting a fungible issue need to indicate that original securities are already
admitted to trading.) 

	(ii)	Estimate of total expenses related to admission to trading:	[         ]

	2.	RATINGS

	 	Credit Ratings:	[The Notes to be issued [have been]/[are expected to be] rated]/[The following ratings reflect ratings assigned to Notes of this type issued under the Programme generally]:
	 	 	[Moody’s Japan K.K. (“Moody’s Japan”): [         ]]
	 	 	[Moody’s Investors Service, Inc. (“Moody’s”): [          ]]
	 	 	[S&P Global Ratings, acting through S&P Global Ratings Japan Inc. (“Standard & Poor’s Japan”): [          ]]
	 	 	(Need to include an explanation of the meaning of the ratings if this has previously been published by the rating provider.)
	 	 	(The above disclosure should reflect the rating allocated to Notes of the type being issued under the Programme generally or, where the issue has been specifically rated, that rating.)
	 	 	Moody’s Japan, Moody’s and Standard & Poor’s Japan are not established in the European Union and have not applied for registration under Regulation (EC) No. 1060/2009 (the “CRA Regulation”).  However, Moody’s Investors Service Ltd. has endorsed the ratings of Moody’s Japan and Moody’s, and Standard & Poor’s Credit Market Services Europe Limited has endorsed the ratings of Standard & Poor’s Japan, in accordance with the CRA Regulation.  Each of Moody’s Investors Service Ltd. and Standard & Poor’s Credit Market Services Europe Limited is established in the European Union and is registered under the CRA Regulation.
	 	 	 

    Page 146

     

    

	 	
        [The Issuer has not applied
        to Moody’s [Japan] or Standard & Poor’s Japan for ratings to be assigned to the Notes.]

         

        Credit ratings are for
        distribution only to a person (a) who is not a “retail client” within the meaning of section 761G of the Corporations
        Act 2001 of Australia (“Australian Corporations Act”) and is also a sophisticated investor, professional investor
        or other investor in respect of whom disclosure is not required under Parts 6D.2 or 7.9 of the Australian Corporations Act, and
        (b) who is otherwise permitted to receive credit ratings in accordance with applicable law in any jurisdiction in which the person
        may be located.

         

	3.	
        INTERESTS OF NATURAL
        AND LEGAL PERSONS INVOLVED IN THE ISSUE

        

        Save
        [as discussed in “Subscription and Sale” in the Prospectus] / [as set out
        below] / [for any fees payable to the [Purchasers/Dealers/Managers]], so far as the Issuer is aware, no person involved in the
        issue of the Notes has an interest material to the offer. [The [Purchasers/Dealers/Managers] and their affiliates may have engaged,
        and may in the future engage, in investment banking and/or commercial banking transactions with, and may perform the services for,
        the Issuer and its affiliates in the ordinary course of business.] (Amend as appropriate if there are any other interests.)

         

        

        [(When adding any other
        description, consideration should be given as to whether such matters described constitute “significant new factors”
        and consequently trigger the need for a supplement to the Prospectus under Article 16 of the Prospectus Directive.)]

        

	4.	Fixed Rate Notes only – YIELD

	 	Indication of yield:	
        [        ] 

        Calculated as [include specific details
        of method of calculation in summary form] on the Issue Date.

        

        As set out
above, the yield is calculated at the Issue Date on the basis of the Issue Price. It is not an indication of future yield. 

	5.	REASONS FOR THE OFFER

	 	Reasons for the offer:	
        [         ]

        

        (See
        “Use of Proceeds” wording in the Prospectus – if the reasons for the offer are different from making profit and/or
        hedging certain risks will need to include those reasons here)

        

	6.	OPERATIONAL INFORMATION  

	 	(i)	ISIN:	[         ] 
	 	(ii)	Common Code:	[         ]
	 	(iii)	CFI Code:	[Not Applicable]/[ ]
	 	(iv)	FISN:	[Not Applicable]/[ ]
	 	(v)	Any clearing system(s) other than Euroclear Bank SA/NV and Clearstream Banking S.A. and the relevant identification number(s):	[Not Applicable/give name(s) and number(s)]
	 	(vi)	Delivery:	Delivery [against] / [free of] payment 

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	 	(vii)	Names and addresses of additional Paying Agent(s) (if any):	[         ]
	 	(viii)	Deemed delivery of clearing system notices for the purposes of Condition 16 (Notices):	Any notice delivered to Noteholders through the clearing systems will be deemed to have been given [on the third day after the day]/[on the day] on which it was given to [Euroclear Bank SA/NV and Clearstream Banking S.A.][CDS Clearing and Depository Services Inc.].
	 	(ix)	Intended to be held in a manner which would allow Eurosystem eligibility:	
        [Yes]/[No]/[Not
        Applicable]

         

        [Note that
        the designation “yes” means that the Notes are intended upon issue to be deposited with
        Euroclear Bank SA/NV or Clearstream Banking S.A. (the “ICSDs”) as common safekeeper [[, and registered in the
        name of a nominee of one of the ICSDs acting as common safekeeper,] [include this text for registered Notes]] and does not
        necessarily mean that the Notes will be recognised as eligible collateral for Eurosystem monetary policy and intra-day credit operations
        by the Eurosystem either upon issue or at any or all times during their life as such recognition depends upon satisfaction of the
        Eurosystem eligibility criteria.] / [Note that the designation “no” means that should the Eurosystem eligibility criteria
        be amended in the future such that the Notes are capable of meeting such criteria, the Notes may then be deposited with Euroclear
        Bank SA/NV or Clearstream Banking S.A. (the “ICSDs”) as common safekeeper [[, and registered in the name of
        a nominee of one of the ICSDs acting as common safekeeper,] [include this text for registered Notes]] and does not necessarily
        mean that the Notes will be recognised as eligible collateral for Eurosystem monetary policy and intra-day credit operations by
        the Eurosystem at any time during their life as such recognition depends upon satisfaction of the Eurosystem eligibility criteria.]
        (Include this text if “yes” or “no” is selected in which case bearer Notes must be issued in NGN form
        and registered Notes must be held under the NSS.)

        

	7.	DISTRIBUTION

	 	(i)	Method of distribution:	[Syndicated]/[Non-syndicated]
	 	(ii)	
        If syndicated:

        

        (a)    Names
of Managers: 
	
        [Not Applicable/give
        names]

         

	 	 	(b)   Date of Syndicate Purchase Agreement:	[         ]
	 	 	(c)   Stabilising Manager(s) (if any):	[         ]
	 	(iii)	If non-syndicated, name of Dealer/Purchaser:	[Not Applicable/give name and address]

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	 	(iv)	U.S. Selling Restrictions:	
        [Reg. S Category 2; TEFRA
        C/TEFRA D/TEFRA Not Applicable]

         

        

        (TEFRA
        D, except for certification of non-U.S. beneficial ownership, will apply to all Notes issued by TMCC that have an initial maturity
        of 183 days or less (taking into consideration unilateral rights to roll or extend))

         

        

        (For Notes issued by
        TMF, TCCI and TFA, specify if Notes have been issued in reliance on either TEFRA C or TEFRA D)

        

	 	(v)	The Dutch Selling Restrictions (Article 5:20(5) Dutch Financial Supervision Act (Wet op het financieel toezicht)):	[Applicable/Not Applicable]
	 	(vi)	Prohibition of Sales to EEA Retail Investors:	
        [Applicable/Not Applicable]

        

        (If the Notes offered
        clearly do not constitute “packaged” products, “Not Applicable” should be specified. If the Notes offered
        may constitute “packaged” products and no KID will be prepared, “Applicable” should be specified)

        

	 	(vii)	Prohibition of Sales to Belgian Consumers:	Applicable

 

    Page 149

     

    
 

ANNEX B TO APPENDIX D

 

FORM OF FINAL TERMS

 

Part B

 

FORM
OF FINAL TERMS IN CONNECTION WITH ISSUES OF NOTES WITH A DENOMINATION OF LESS THAN €100,000 (OR EQUIVALENT IN ANY OTHER CURRENCY)
TO BE ADMITTED TO TRADING ON AN EEA REGULATED MARKET AND/OR OFFERED TO THE PUBLIC ON A NON-EXEMPT BASIS IN THE EEA and/or issue
terms in connection WITH NOTES TO BE ADMITTED TO TRADING ON ANY OTHER EEA MARKET THAT IS NOT AN EEA REGULATED MARKET1

 

[MiFID II product
governance / Retail investors [(limited to those resident in [insert relevant jurisdiction(s)] only)], professional investors
and ECPs target market – Solely for the purposes of [the/each] manufacturer’s product approval process, the target
market assessment in respect of the Notes has led to the conclusion that: (i) the target market for the Notes is eligible counterparties[,]/[and]
professional clients [outside the European Economic Area (“EEA”),] [and]/[as well as] retail clients [(limited
to those resident in [insert relevant jurisdiction(s)] only),] each as defined in Directive 2014/65/EU (as amended, “MiFID
II”); and (ii) all channels for distribution of the Notes to eligible counterparties and professional clients [outside
the EEA,] [and retail clients (limited to those resident in [insert relevant jurisdiction(s)] only)] are appropriate[, subject
to compliance with applicable [insert relevant jurisdiction(s)] securities laws and regulations.] [; and (iii) the following
channels for distribution of the Notes to retail clients are appropriate - investment advice, portfolio management, non-advised
sales and pure execution services - subject to the distributor’s suitability and appropriateness obligations under MiFID
II, as applicable.] Any person subsequently offering, selling or recommending the Notes (a “distributor”) should
take into consideration the manufacturer[’s/s’] target market assessment; however, a distributor subject to MiFID II
is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the manufacturer[’s/s’]
target market assessment) and determining appropriate distribution channels [outside the EEA with all sales], subject to the distributor’s
suitability and appropriateness obligations under [MiFID II, as applicable.]/[[insert relevant jurisdiction(s)] securities
laws and regulations.]]

 

[MiFID II product
governance / Professional investors and ECPs only target market – Solely for the purposes of [the/each] manufacturer’s
product approval process, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market
for the Notes is eligible counterparties and professional clients only, each as defined in Directive 2014/65/EU (as amended, “MiFID
II”); and (ii) all channels for distribution of the Notes to eligible counterparties and professional clients are appropriate.
Any person subsequently offering, selling or recommending the Notes (a “distributor”) should take into consideration
the manufacturer[’s/s’] target market assessment; however, a distributor subject to MiFID II is responsible for undertaking
its own target market assessment in respect of the Notes (by either adopting or refining the manufacturer[’s/s’] target
market assessment) and determining appropriate distribution channels.]

 

[PRIIPs Regulation
/ Prospectus Directive / PROHIBITION OF SALES TO EEA RETAIL INVESTORS – The Notes are not intended to be offered, sold
or otherwise made available to and should not be offered, sold or otherwise made available to any [retail] investor in the European
Economic Area (“EEA”). [For these purposes, a “retail investor” means a person who is one (or more)
of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, “MiFID II”);
(ii) a customer within the meaning of Directive 2002/92/EC (as amended), where that customer would not qualify as a professional
client as

 

 

		1	For Issue Terms in respect of Notes to be admitted to trading on an EEA market that is not an EEA regulated market, remove all specific Prospectus Directive references.

    Page 150

     

    

defined in point (10) of Article 4(1) of
MiFID II; or (iii) not a qualified investor as defined in the Prospectus Directive (as defined below).] [Consequently no key information
document required by Regulation (EU) No 1286/2014 (as amended, the “PRIIPs Regulation”) for offering or selling
the Notes or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling
the Notes or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPs Regulation.]]

 

Notification under
Section 309B(1)(c) of the Securities and Futures Act (Chapter 289) of Singapore [the “SFA”] - The Notes are [prescribed
capital markets products]/[capital markets products other than prescribed capital markets products] (as defined in the Securities
and Futures (Capital Markets Products) Regulations 2018) and [Excluded Investment Products]/[Specified Investment Products] (as
defined in MAS Notice SFA 04-N12: Notice on the Sale of Investment Products and MAS Notice FAA-N16: Notice on Recommendations on
Investment Products).2] [3

 

Final Terms

 

Dated [ ]

 

[TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.]

 

[TOYOTA CREDIT CANADA INC.]

 

[TOYOTA FINANCE AUSTRALIA LIMITED (ABN
48 002 435 181)]

 

[TOYOTA MOTOR CREDIT CORPORATION]

 

[Legal Entity Identifier (“LEI”):
[     ]]

 

Issue of [Aggregate Nominal Amount of
Tranche] [Title of Notes]

under the €50,000,000,000

Euro Medium Term Note Programme

established by

Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc.,

Toyota Finance Australia Limited and Toyota Motor Credit Corporation

 

Any person making or
intending to make an offer of the Notes may only do so:

 

		(i)	[in those Public Offer Jurisdictions mentioned in Paragraph 9 of Part B below, provided such person
is of a kind specified in that paragraph and that such offer is made during the Offer Period specified in that paragraph; or

 

		(ii)	otherwise]4 in
circumstances in which no obligation arises for the Issuer or any Dealer or Manager to publish a prospectus pursuant to
Article 3 of the Prospectus Directive (as defined below) or to supplement a prospectus pursuant to Article 16 of the Prospectus
Directive, in each case, in relation to such offer.

 

Neither the Issuer nor
any Dealer or Manager has authorised, nor do they authorise, the making of any offer of Notes in any other circumstances.

 

PART A – CONTRACTUAL TERMS

 

Terms used herein shall
be deemed to be defined as such for the purposes of the Terms and Conditions of the Notes set forth in the Prospectus dated 14
September 2018 [and the supplement[s] to it dated [date] [and [date]]], including all documents incorporated by reference
([the Prospectus as so supplemented,] the “Prospectus”) which constitutes a base prospectus for

 

 

 

		2	Insert “prescribed capital market products” and “Excluded Investment Products”
or, if not, amend Singapore product classification.

		3	Relevant Dealer(s) to consider whether it/they have received the necessary product classification from the Issuer prior to the launch of the offer, pursuant to Section 309B of the SFA.

		4	Include this wording where a Non-exempt Offer of Notes is anticipated.

    Page 151

     

    

the purposes of the Prospectus Directive.
This document constitutes the Final Terms of the Notes [described herein for the purposes of Article 5.4 of the Prospectus Directive
– remove for unlisted Notes] and must be read in conjunction with the Prospectus. Full information on the Issuer and
the offer of the Notes is only available on the basis of the combination of these Final Terms and the Prospectus. A summary of
the Notes (which comprises the summary in the Prospectus as amended to reflect the provisions of these Final Terms) is annexed
to these Final Terms. The Prospectus has been published on the website of the London Stock Exchange at http://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.

 

[The following alternative
language applies if the first Tranche of an issue which is being increased was issued under a Prospectus or Offering Circular with
an earlier date.

 

Terms used herein shall
be deemed to be defined as such for the purposes of the Terms and Conditions of the Notes (the “Conditions”)
set forth in and extracted from the Prospectus/Offering Circular dated [original date] and which are incorporated by reference
in the Prospectus dated 14 September 2018. This document constitutes the Final Terms of the Notes [described herein for the purposes
of Article 5.4 of the Prospectus Directive – remove for unlisted Notes] and must be read
in conjunction with the Prospectus dated 14 September 2018, including the Conditions which
are incorporated by reference in it [and the supplement[s] to it dated [date] [and [date]]], including all documents
incorporated by reference ([the Prospectus as so supplemented,] the “Prospectus”) which constitutes a base prospectus
for the purposes of the Prospectus Directive. Full information on the Issuer and the offer of the Notes is only available on the
basis of the combination of these Final Terms and the Prospectus. A summary of the Notes (which comprises the summary in
the Prospectus as amended to reflect the provisions of these Final Terms) is annexed to these Final Terms. The
Prospectus has been published on the website of the London Stock Exchange at http://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.]

 

The
expression “Prospectus Directive” means Directive 2003/71/EC (as amended, including by Directive 2010/73/EU),
and includes any relevant implementing measure (for the purpose of the Prospectus, [the Terms and Conditions of the Notes set forth
in the Prospectus]/[the Conditions] and these Final Terms) in the relevant Member State.

 

[Include whichever
of the following apply or specify as “Not Applicable”. Note that the numbering should remain as set out below, even
if “Not Applicable” is indicated for individual paragraphs (in which case the sub-paragraphs of the paragraphs which
are not applicable can be deleted). Italics denote guidance for completing the Final Terms.]

 

	1.	(i)	Issuer:	[         ] 
	 	(ii)	Credit Support Providers:	Toyota Motor Corporation

Toyota Financial Services Corporation
	2.	[(i)]	Series Number:	[         ]
	 	[(ii)]	Tranche Number:	[         ]
	 	[(iii)]	Uridashi Notes:	[Applicable]/[Not Applicable]
	 	[(iv)]	Date on which the Notes will be consolidated and form a single Series: 	[Not Applicable]/[The Notes shall be consolidated and form a single Series and be interchangeable for trading purposes with the [insert description of the Series] on [insert date/the Issue Date/exchange of the Temporary Global Note for interests in the Permanent Global Note, as referred to in paragraph 25 below [which is expected to occur on or about [insert date]]].]

	3.	Specified Currency:	[         ]
	4.	Aggregate Nominal Amount:	[         ]

	 	[(i)]	Series:	[         ] 
	 	[(ii)]	Tranche:	[         ] 

    Page 152

     

    

	5.	Issue Price:	[        ] per cent. of the Aggregate Nominal Amount [plus [        ] days’ accrued interest in respect of the period from and including [insert date] to, but excluding [insert date] (if applicable)]

	6.	(i)	Specified Denominations:	
        [
        ] 

        [N.B. Notes must have a minimum denomination
        of EUR1,000 (or equivalent) if there is a listing on a regulated market in the EEA and/or if there is a Non-exempt Offer]

        

	 	(ii)	Calculation Amount:	
        [
        ] 

        (If there is only one
        Specified Denomination, insert the Specified Denomination.

        

        If there is
more than one Specified Denomination insert the highest common factor of those Specified Denominations. N.B. There must be a common
factor in the case of two or more Specified Denominations) 

	7.	(i)	Issue Date:	[         ]
	 	(ii)	Interest Commencement Date:	
        [         ]/[Issue
        Date]/[Not Applicable]

        

        (N.B. An Interest Commencement Date
        will not be relevant for certain Notes, for example, Zero Coupon Notes)

         

	8.	Maturity Date:	
        [
         ] 

        [Fixed
        rate - Specify date / Floating rate - Interest Payment Date falling in or nearest to [specify
        month and year]]

        

        (N.B. The Maturity
Date may need to be not less than one year after the Issue Date and, in the case of Notes issued by TMF, should not be more than
50 years after the Issue Date) 

	9.	Interest Basis:	
        [[         ] per cent.
        Fixed Rate]

        [Fixed Rate Step-up/Step-down]

        [[         ] month [LIBOR/EURIBOR/CAD-BA-CDOR] +/– [         ]
        per cent. Floating Rate]

        [Zero Coupon]

        

        (See paragraph 16/17/18 below) 

	10.	Redemption Basis:	Redemption at par
	11.	Change of Interest Basis:	[Not Applicable]/[For the period from (and including) the Interest Commencement Date, up to (but excluding) [specify date] paragraph [16/17] applies and for the period from (and including) [specify date], up to (but excluding) the Maturity Date, paragraph [16/17] applies]
	12.	Put/Call Options: 	
        [Investor Put Option]

        

        [Issuer Call Option] 

        [Issuer Maturity Par Call
        Option]

        

        [Issuer Make-Whole
Call Option] 

        [Not Applicable]

        

        [(See paragraph(s)
19/20/21/22 below)] 

    Page 153

     

    

	13.	(i)	Status of the Notes:	Senior
	 	(ii)	Nature of the Credit Support:	See “Relationship of TFS and the Issuers with the Parent” in the Prospectus dated 14 September 2018

	14.	Date [Board]/[Executive Committee of the Board] approval for issuance of Notes obtained:	[         ]
	15.	Negative Pledge covenant set out in Condition 3:	[Applicable [Uridashi Notes only]]/[Not Applicable]

	PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE 

	16.	Fixed Rate Note Provisions 	
        [Applicable]/[Not
        Applicable]

        

        (If not applicable,
delete the remaining sub-paragraphs of this paragraph) 

	 	(i)	Fixed Rate(s) of Interest:	[         ] per cent. per annum payable [[         ] in arrear] on each Interest Payment Date [from and including, [         ] to, but excluding, [         ]] [. The first Fixed Interest Period shall be the period commencing on, and including, the Interest Commencement Date and ending on, but excluding, [         ] (short first coupon)]
	 	(ii)	Interest Payment Date(s):	[         ] [and [         ]] in each year from, and including, [         ] up to, and including, [the Maturity Date]/[         ] [adjusted in accordance with the [Following Business Day Convention]/ [Modified Following Business Day Convention]]/ [         ] [with the Additional Business Centres for the definition of “Business Day” being [         ]] [[adjusted]/[with no adjustment] for period end dates]/[. For the avoidance of doubt, the Fixed Coupon Amount [and the Broken Amount] shall remain unadjusted]
	 	(iii)	Fixed Coupon Amount(s):	[         ] per Calculation Amount (applicable to [the Notes in definitive form]/[Uridashi Notes]) [and [         ] per Aggregate Nominal Amount of the Notes (applicable to the Notes in global form)], payable [[         ] in arrear] on [         ]/[each Interest Payment Date][, except for the amount of interest payable on the first Interest Payment Date falling on [         ]][. [This]/[These] Fixed Coupon Amount[s] appl[ies]/[y] if the Notes are represented by a global Note or are in definitive form]
	 	(iv)	Broken Amount(s):	[[         ] per Calculation Amount (applicable to [the Notes in definitive form]/[Uridashi Notes]) [and [         ] per Aggregate Nominal Amount of the Notes (applicable to the Notes in global form)], payable on the Interest Payment Date falling on [         ]] [. This Broken Amount applies if the Notes are represented by a global Note or are in definitive form]/[Not Applicable]

    Page 154

     

    

	 	(v)	[Fixed] Day Count Fraction:	[Actual/Actual (ICMA)]/[Actual/Actual (ISDA)]/ [30/360]/[Actual/360]/[Actual/Actual Canadian Compound Method]/[Actual/365 (Fixed)]
	 	(vi)	Determination Date(s): 	
        [[ ] in each year] / [Not
        Applicable]

        

        (Insert regular interest
        payment dates, ignoring issue date or maturity date in the case of a long or short first or last coupon. N.B. Only relevant where
        the Fixed Day Count Fraction is Actual/Actual (ICMA))

        

	17.	Floating Rate Note Provisions	
        [Applicable]/[Not Applicable]

        

        (If not applicable, delete
        the remaining sub-paragraphs of this paragraph)

        

	 	(i)	Specified Period(s)/Specified Interest Payment Dates:	[         ] / [         ] in each year [subject to adjustment in accordance with the Business Day Convention set out in (iii) below]
	 	(ii)	First Interest Payment Date:	[         ]
	 	(iii)	Business Day Convention:	[Floating Rate Convention]/[Following Business 

Day Convention]/[Modified Following Business 

Day Convention]/[Preceding Business Day 

Convention]
	 	(iv)	Additional Business Centre(s):	[         ]
	 	(v)	Manner in which the Rate of Interest and Interest Amount is/are to be determined:	[Screen Rate Determination]/[ISDA Determination]
	 	(vi)	Party responsible for calculating the Rate of Interest and Interest Amount (if not the Agent) (the “Calculation Agent”):	[         ]
	 	(vii)	Screen Rate Determination:	 
	 	 	- Reference Rate:	[         ] month [LIBOR/EURIBOR/CAD-BA-CDOR]
	 	 	- Relevant Financial Centre:	[London/Brussels/Toronto/specify other Relevant Financial Centre] 
	 	 	- Interest Determination Date(s):	(Second London business day prior to the start of each Interest Period if LIBOR (other than Sterling or euro LIBOR), first day of each Interest Period if Sterling LIBOR or CAD-BA-CDOR and the second day on which TARGET2 System is open prior to the start of each Interest Period if EURIBOR or euro LIBOR)
	 	 	- Relevant Screen Page:	
        (Insert page on which the
        Reference Rate is for the time being displayed on Reuters Monitor Money Rates Service or Dow Jones Markets Limited for LIBOR/EURIBOR/CAD-BA-CDOR)

        

        (In the case of EURIBOR,
        if not Reuters EURIBOR01 ensure it is a page which shows a composite rate)

        

    Page 155

     

    

	 	 	- Specified Time:	
        [11:00 a.m. [London/Brussels]
        time]

        [In the case of LIBOR/EURIBOR]/

        

        [10:00 a.m. Toronto
time] [In the case of CAD-BA-CDOR] 

	 	(viii)	ISDA Determination:	 
	 	 	- Floating Rate Option:	[         ]
	 	 	- Designated Maturity:	[         ]
	 	 	- Reset Date:	
        [         ]

        

        (The first day of the Interest
        Period)

        

	 	(ix)	Linear Interpolation:	
        [Not Applicable/Applicable
– the Rate of Interest for the [long/short] [first/last] Interest Period or Specified Period shall be calculated using Linear
Interpolation 

        (Specify for each short
        or long Interest Period)]

        

	 	(x)	Margin(s):	[+/-][        ] per cent. per annum
	 	(xi)	Minimum Rate of Interest:	[         ] per cent. per annum
	 	(xii)	Maximum Rate of Interest:	[         ] per cent. per annum
	 	(xiii)	Day Count Fraction:	[Actual/Actual (ISDA)] [Actual/Actual]

[Actual/365 (Fixed)]

[Actual/360]

[30/360] [360/360] [Bond Basis]

[30E/360] [Eurobond Basis]

[30E/360 (ISDA)]

[Actual/365 (Sterling)]

	18.	Zero Coupon Note Provisions 	[Applicable]/[Not Applicable]

(If not applicable, delete the remaining sub-paragraphs of this paragraph)

	 	(i)	Accrual Yield:	[         ] per cent. per annum
	 	(ii)	Reference Price:	[         ]

	PROVISIONS RELATING TO REDEMPTION 

	19.	Issuer Call Option	
        [Applicable]/[Not
        Applicable]

        

        (If not applicable, delete
the remaining sub-paragraphs of this paragraph) 

	 	(i)	Optional Redemption Date(s):	[         ]
	 	(ii)	Optional Redemption Amount(s) of each Note:	[         ] per Calculation Amount
	 	(iii)	If redeemable in part:	 
	 	 	(a)Minimum Redemption Amount:	[[         ] per Calculation Amount]/[Not Applicable]
	 	 	(b)Maximum Redemption Amount:	[[         ] per Calculation Amount]/[Not Applicable]
	 	(iv)	Notice periods (if other than set out in the Conditions):	
        [Minimum period: [
        ] days]/[Not Applicable]

        

        [Maximum period: [
] days]/[Not Applicable] 

    Page 156

     

    

	20.	Issuer Maturity Par Call Option	
        [Applicable]/[Not Applicable]

        

        (If not applicable,
delete the remaining sub-paragraphs of this paragraph) 

	 	Notice periods (if other than set out in the Conditions):	
        [Minimum period: [
        ] days]/[Not Applicable]

        

        [Maximum period: [
] days]/[Not Applicable] 

	21.	Issuer Make-Whole Call Option	
        [Applicable]/[Not
        Applicable]

        

        (If not applicable, delete
the remaining sub-paragraphs of this paragraph) 

	 	(i)	Optional Redemption Date(s):	[         ]/[at any time that is more than 90 days prior to the Maturity Date]
	 	(ii)	Optional Redemption Amount of each Note:	[[         ] per Calculation Amount]/[Special Redemption Amount]
	 	(iii)	Specified Time for Special Redemption Amount:	[         ]/[Not Applicable]
	 	(iv)	Redemption Margin:	[[         ]] per cent.]/[Not Applicable]
	 	(v)	If redeemable in part:	 
	 	 	(a)Minimum Redemption Amount:	[[         ] per Calculation Amount]/[Not Applicable]
	 	 	(b)Maximum Redemption Amount:	[[         ] per Calculation Amount]/[Not Applicable]
	 	(vi)	Calculation Agent (if not the Agent) (the “Calculation Agent”):	[Not Applicable]/[         ]
	 	(vii)	Notice periods (if other than set out in the Conditions):	
        [Minimum period: [
        ] days]/[Not Applicable]

        

        [Maximum period: [
] days]/[Not Applicable] 

	22.	Investor Put Option	
        [Applicable]/[Not
Applicable] 

        (If not applicable,
        delete the remaining sub-paragraphs of this paragraph)

        

	 	(i)	Optional Redemption Date(s): 	[         ]
	 	(ii)	Optional Redemption Amount(s) of each Note:	[         ] per Calculation Amount

	23.	Final Redemption Amount	[         ] per Calculation Amount
	24.	Early Redemption Amount	 
	 	Early Redemption Amount payable on redemption for taxation reasons or on event of default or other earlier redemption:	[         ] per Calculation Amount

	GENERAL PROVISIONS APPLICABLE TO THE NOTES 

	25.	Form of Notes:	
        [         
] 

        (Insert description that is consistent
        with one of the options in the “Form of the Notes” section of the Prospectus)

        

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	26.	[New Global Note]/[New Safekeeping Structure]:	[Yes]/[No]
	27.	Additional Financial Centre(s):	
        [Not Applicable/give details]

        

        (Note that this paragraph relates to
        the place of payment and not Interest Period end dates to which sub-paragraph 16(ii) or 17(iv) relates)

        

	28.	Talons for future Coupons to be attached to definitive Notes:	[No]/[Yes.  As the Notes have more than 27 coupon payments, Talons may be required if, on exchange into definitive form, more than 27 coupon payments are still to be made.]
	29.	Reference Currency Equivalent (if different from US dollars as set out in Condition 5(h)):	[Not Applicable/give details]
	30.	Defined terms/Spot Rate (if different from that set out in Condition 5(h)):	[Not Applicable/give details]
	31.	Calculation Agent responsible for calculating the Spot Rate for the purposes of Condition 5(h) (if not the Agent):	[Not Applicable/give details]
	32. 	RMB Settlement Centre(s) for the purposes of Conditions 5(a) and 5(h):	[Not Applicable/give details]
	33.	Settlement (if different from that set out in Condition 5(h)):	[Not Applicable/give details]
	34. 	Relevant Benchmark:	[[specify benchmark] is provided by [administrator legal name]. As at the date hereof, [administrator legal name] [appears]/[does not appear] in the register of administrators and benchmarks established and maintained by ESMA pursuant to Article 36 (Register of administrators and benchmarks) of the Benchmark Regulation]/[Not Applicable]

	RESPONSIBILITY
	The Issuer accepts responsibility for the information contained in these Final Terms.  [[Relevant third party information] has been extracted from [specify source].  The Issuer confirms that such information has been accurately reproduced and that, so far as it is aware and is able to ascertain from information published by [specify source], no facts have been omitted which would render the reproduced information inaccurate or misleading.]  

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	Signed on behalf of the Issuer:	 
	 	 	 
	 	 	 
	[NAME OF ISSUER]	 
	 	 	 
	 	 	 
	By:	..............................................................	 
	 	Name:	 
	 	Title:	 

	
         

        Duly
        authorised

         

        cc:The Bank of New York
        Mellon, acting through its London branch

        [Registered Notes – BNY Trust Company of Canada / The Bank of New York Mellon SA/NV, Luxembourg Branch (TCCI only)]

        [Registered Notes – The Bank of New York Mellon SA/NV, Luxembourg Branch (TMCC only)]

         

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PART B – OTHER INFORMATION

 

	1.	LISTING AND ADMISSION TO TRADING

	 	
        [Application
        has been made by the Issuer (or on its behalf) for the Notes to be admitted to trading on [the London
        Stock Exchange’s Regulated Market] and for listing on [the Official List of the UK Listing Authority] with effect from [          ].]
        / [Application is expected to be made by the Issuer (or on its behalf) for the Notes to be admitted to trading on the [London Stock
        Exchange’s Regulated Market] and for listing on [the Official List of the UK Listing Authority] with effect from [         ].]
        / [Not Applicable.]

        

        [Application is
expected to be made by the Issuer (or on its behalf) for the Notes to be admitted to trading on [EUROTLX managed by EUROTLX SIM
S.p.A.] with effect from [         ].] 

        (Where
        documenting a fungible issue need to indicate that original securities are already admitted
        to trading.)

        

	2.	RATINGS

	 	Credit Ratings:	[The Notes to be issued [have been]/[are expected to be] rated]/[The following ratings reflect ratings assigned to Notes of this type issued under the Programme generally]:
	 	 	[Moody’s Japan K.K. (“Moody’s Japan”): [         ]]
	 	 	[Moody’s Investors Service, Inc. (“Moody’s”): [          ]]
	 	 	[S&P Global Ratings, acting through S&P Global Ratings Japan Inc. (“Standard & Poor’s Japan”): [          ]]
	 	 	(Need to include an explanation of the meaning of the ratings if this has previously been published by the rating provider.)
	 	 	(The above disclosure should reflect the rating allocated to Notes of the type being issued under the Programme generally or, where the issue has been specifically rated, that rating.)
	 	 	Moody’s Japan, Moody’s and Standard & Poor’s Japan are not established in the European Union and have not applied for registration under Regulation (EC) No. 1060/2009 (the “CRA Regulation”).  However, Moody’s Investors Service Ltd. has endorsed the ratings of Moody’s Japan and Moody’s, and Standard & Poor’s Credit Market Services Europe Limited has endorsed the ratings of Standard & Poor’s Japan, in accordance with the CRA Regulation.  Each of Moody’s Investors Service Ltd. and Standard & Poor’s Credit Market Services Europe Limited is established in the European Union and is registered under the CRA Regulation.
	 	 	
        [The Issuer has not applied
        to Moody’s [Japan] or Standard & Poor’s Japan for ratings to be assigned to the Notes.]

         

        

        Credit ratings are for
        distribution only to a person (a) who is not a “retail client” within the meaning of section 761G of the Corporations
        Act 2001 of Australia (“Australian Corporations Act”) and is also a sophisticated investor, professional investor
        or other investor in respect of whom disclosure is not required under Parts 6D.2 or 7.9 of the

        

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	 	Australian Corporations Act, and (b) who is otherwise permitted to receive credit ratings in accordance with applicable law in any jurisdiction in which the person may be located.

	3.	
        INTERESTS OF
        NATURAL AND LEGAL PERSONS INVOLVED IN THE ISSUE

         

        Save
        [as discussed in “Subscription and Sale” in the Prospectus] / [as set out
        below] [for any fees payable to the [Purchasers/Dealers/Managers]], so far as the Issuer is aware, no person involved in the issue
        of the Notes has an interest material to the offer. [The [Purchasers/Dealers/Managers] and their affiliates may have engaged, and
        may in the future engage, in investment banking and/or commercial banking transactions with, and may perform the services for,
        the Issuer and its affiliates in the ordinary course of business.] (Amend as appropriate if there are any other interests.)

         

        [(When adding any other
        description, consideration should be given as to whether such matters described constitute “significant new factors”
        and consequently trigger the need for a supplement to the Prospectus under Article 16 of the Prospectus Directive.)]

        

	4.	REASONS FOR THE OFFER, ESTIMATED NET PROCEEDS AND TOTAL EXPENSES

	 	[(i)	Reasons for the offer:	
        [       
] 

        (See “Use of Proceeds”
        wording in the Prospectus – if the reasons for the offer are different from making profit and/or hedging certain risks will
        need to include those reasons here)]

        

	 	[(ii)]	Estimated net proceeds:	
        [
       ] 

        (If proceeds are intended
        for more than one use will need to split out and present in order of priority. If proceeds are insufficient to fund all
        proposed uses state amount and sources of other funding)

        

	 	[(iii)]	Estimated total expenses:	
        [
       ] 

        (Include breakdown of
        expenses (e.g. legal fees))

        

	5.	Fixed Rate Notes only – YIELD

	 	Indication of yield:	
        [        ] 

        Calculated as [include specific details
        of method of calculation in summary form] on the Issue Date.

        

        As set out above, the yield is calculated
        at the Issue Date on the basis of the Issue Price. It is not an indication of future yield.

        

	6.	Floating Rate Notes only - HISTORIC INTEREST RATES 

	[Details of historic [LIBOR/EURIBOR/CAD-BA-CDOR] rates can be obtained from [Reuters]]

	7.	OPERATIONAL INFORMATION  

	 	(i)	ISIN:	[         ]
	 	(ii)	Common Code:	[         ]
	 	(iii)	CFI Code:	[Not Applicable]/[ ]
	 	(iv)	FISN:	[Not Applicable]/[ ]
	 	(v)	Any clearing system(s) other than Euroclear Bank SA/NV and Clearstream 	[Not Applicable/give name(s) and number(s)]

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	 	 	Banking S.A. and the relevant identification number(s):	 
	 	(vi)	Delivery:	Delivery [against]/[free of] payment 
	 	(vii)	Names and addresses of additional Paying Agent(s) (if any):	[         ]
	 	(viii)	Deemed delivery of clearing system notices for the purposes of Condition 16 (Notices):	Any notice delivered to Noteholders through the clearing systems will be deemed to have been given [on the third day after the day]/[on the day] on which it was given to [Euroclear Bank SA/NV and Clearstream Banking S.A.][CDS Clearing and Depository Services Inc.].
	 	(ix)	Intended to be held in a manner which would allow Eurosystem eligibility:	
        [Yes]/[No]/[Not Applicable]

         

        [Note that the designation
        “yes” means that the Notes are intended upon issue to be deposited with Euroclear Bank SA/NV or Clearstream Banking
        S.A. (the “ICSDs”) as common safekeeper [[, and registered in the name of a nominee of one of the ICSDs acting
        as common safekeeper,] [include this text for registered Notes]] and does not necessarily mean that the Notes will be recognised
        as eligible collateral for Eurosystem monetary policy and intra-day credit operations by the Eurosystem either upon issue or at
        any or all times during their life as such recognition depends upon satisfaction of the Eurosystem eligibility criteria.] / [Note
        that the designation “no” means that should the Eurosystem eligibility criteria be amended in the future such that
        the Notes are capable of meeting such criteria, the Notes may then be deposited with Euroclear Bank SA/NV or Clearstream Banking
        S.A. (the “ICSDs”) as common safekeeper [[, and registered in the name of a nominee of one of the ICSDs acting
        as common safekeeper,] [include this text for registered Notes]] and does not necessarily mean that the Notes will be recognised
        as eligible collateral for Eurosystem monetary policy and intra-day credit operations by the Eurosystem at any time during their
        life as such recognition depends upon satisfaction of the Eurosystem eligibility criteria.] (Include this text if “yes”
        or “no” is selected in which case bearer Notes must be issued in NGN form and registered Notes must be held under the
        NSS.)

         

	8.	DISTRIBUTION

	 	(i)	Method of distribution:	[Syndicated]/[Non-syndicated]

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	 	(ii)	
        If syndicated:

         

        (a)   Names
        and addresses of Managers and underwriting commitments:

         
	
        [Not Applicable/give
        names and addresses and underwriting commitments]

        

        (Include names and addresses
        of entities agreeing to underwrite the issue on a firm commitment basis and names and addresses of the entities agreeing to place
        the issue without a firm commitment or on a “best efforts” basis if such entities are not the same as the Managers.)

        

	 	 	(b)  Date of Syndicate Purchase Agreement:	[         ]
	 	 	(c)  Stabilising Manager(s) (if any):	[         ]
	 	(iii)	If non-syndicated, name and address of Dealer/Purchaser:	[Not Applicable/give name and address]
	 	(iv)	Indication of the overall amount of the underwriting commission and of the placing commission:	[         ] per cent. of the Aggregate Nominal Amount
	 	(v)	U.S. Selling Restrictions:	
        [Reg. S Category 2; TEFRA
        C/TEFRA D/TEFRA Not Applicable]

         

        

        (TEFRA
        D, except for certification of non-U.S. beneficial ownership, will apply to all Notes issued by TMCC that have an initial maturity
        of 183 days or less (taking into consideration unilateral rights to roll or extend))

         

        

        (For Notes issued by
        TMF, TCCI and TFA, specify if Notes have been issued in reliance on either TEFRA C or TEFRA D)

        

	 	(vi)	The Dutch Selling Restrictions (Article 5:20(5) Dutch Financial Supervision Act (Wet op het financieel toezicht)):	[Applicable/Not Applicable]
	 	(vii)	Prohibition of Sales to EEA Retail Investors:	
        [Applicable/Not Applicable]

        

        (If the Notes offered
        clearly do not constitute “packaged” products, “Not Applicable” should be specified. If the Notes offered
        may constitute “packaged” products and no KID will be prepared, “Applicable” should be specified)

        

	 	(viii)	Non-exempt Offer:	[Not Applicable]/[Applicable – see paragraph 9 below.] 
	 	(ix)	Prohibition of Sales to Belgian Consumers:	Applicable

	9.	TERMS AND CONDITIONS OF THE PUBLIC OFFER
	 	
        The Central Bank of Ireland has provided
        the competent authorities in each of [Austria, Germany, Italy, Luxembourg, the Netherlands, Norway, Spain and the United Kingdom

        

    Page 163

     

    

	 	
        [delete irrelevant ones/specify others]]
        (together with Ireland, the “Public Offer Jurisdictions”) with a certificate of approval attesting that the
        Prospectus dated 14 September 2018 has been drawn up in accordance with the provisions of the Prospectus Directive and Commission
        Regulation (EC) No. 809/2004. Copies of these Final Terms will be provided to the competent authorities in the Public Offer Jurisdictions.

         

        [The Issuer has agreed to allow the use
        of these Final Terms and the Prospectus in each of the Public Offer Jurisdictions by each of the Managers [and [specify, if
        applicable, names of other financial intermediaries making non-exempt offers]] and any [other] placers authorised directly
        or indirectly by [the Issuer or] any of the Managers (on behalf of the Issuer) involved in the offer which acknowledges on its
        website (i) that it has been duly appointed as a financial intermediary to offer the Notes during the Offer Period, (ii) that it
        is relying on the Issuer’s Base Prospectus and these Final Terms for such Non-exempt Offer with the consent of the Issuer
        and (iii) the conditions attached to that consent (the “Placers”) in connection with possible offers of the
        Notes to the public, other than pursuant to Article 3(2) of the Prospectus Directive, in the Public Offer Jurisdictions during
        the Offer Period (as defined below).

         

        Investors (as defined on page 5 of the
        Prospectus) intending to acquire or acquiring the Notes from any Authorised Offeror (as defined on page 5 of the Prospectus) should
        make appropriate enquiries as to whether that Authorised Offeror is acting in association with the Issuer. Whether or not the Authorised
        Offeror is described as acting in association with the Issuer, the Issuer’s only relationship is with the Managers and the
        Issuer has no relationship with or obligation to, nor shall it have any relationship with or obligation to, an Investor, save as
        may arise under any applicable law or regulation.

         

        The Issuer is only offering to and selling
        to the Managers pursuant to and in accordance with the terms of the Syndicate Purchase Agreement. All sales to persons other than
        the Managers will be made by the Managers or persons to whom they sell, and/or otherwise make arrangements with, including the
        Placers. The Issuer shall not be liable for any offers and/or sales of Notes to, or purchases of Notes by, Investors at any time
        (including during the Offer Period) (other than in respect of offers and sales to, and purchases of Notes by, the Managers and
        only then pursuant to the Syndicate Purchase Agreement) which are made by Managers or Placers or any other Authorised Offeror in
        accordance with the arrangements in place between any such Manager, Placer or other Authorised Offeror and its customers. Any person
        selling Notes at any time during the Offer Period may not be a financial intermediary of the Issuer; any person selling Notes at
        any time after the Offer Period is not a financial intermediary of the Issuer.

         

	 	Each of the Managers has acknowledged and agreed, and any Placer purchasing Notes from a Manager will be notified by that Manager that by accepting such Notes such Placer undertakes that for the purpose of offer(s) of the Notes (i) for the duration of the Offer Period, such Placer will publish on its website (a) that it has been duly appointed as a financial intermediary to offer the Notes during the Offer Period, (b) it is relying on the Prospectus for such offer(s) with the consent of the Issuer and (c) the conditions attached to that consent and (ii) the Issuer has passported the Prospectus into each of the Public Offer Jurisdictions and will not passport the Prospectus into any other European Economic Area Member State; accordingly, the Notes may only be publicly offered in Public Offer Jurisdictions during the Offer Period or offered to qualified investors (as defined in the Prospectus Directive) or otherwise in compliance with Article 3(2) of the Prospectus Directive in any other European Economic Area Member State pursuant to and in accordance with the Prospectus and these Final Terms (without modification or supplement); and that all offers of Notes by it will be made only in accordance with the selling restrictions set forth in the Prospectus and the provisions of these Final Terms and in compliance with all applicable laws and regulations, provided that no such offer of Notes shall require the Issuer or any Manager to publish a prospectus pursuant to Article 3 of the Prospectus Directive (or supplement a prospectus pursuant to Article 16 of the Prospectus Directive) or to take any other action in any jurisdiction other than as described 

    Page 164

     

    

	 	 	above.][Give any details of any specific terms and conditions and agreements applicable in any of the Public Offer Jurisdictions]

	 	(i)	Offer Period:	[From the date of, and following, publication of these Final Terms being [         ] to [         ].] / [give details]
	 	(ii)	Offer Price:	[The Issuer has offered and will sell the Notes to the Managers (and no one else) at the Issue Price of [         ] per cent. less a total commission [and concession] of [   ] per cent. of the Aggregate Nominal Amount of Notes.  Managers and Placers will offer and sell the Notes to their customers in accordance with arrangements in place between each such Manager and its customers (including Placers) or each such Placer and its customers by reference to the Issue Price and market conditions prevailing at the time.] / [give details]
	 	(iii)	Conditions to which the offer is subject:	[Offers of the Notes are conditional on their issue and are subject to such conditions as are set out in the Syndicate Purchase Agreement.  As between Managers and their customers (including Placers) or between Placers and their customers, offers of the Notes are further subject to such conditions as may be agreed between them and/or as is specified in the arrangements in place between them. ] / [give details of any conditions to which Offers may be subject in any of the Public Offer Jurisdictions]
	 	(iv)	Description of the application process:	[A prospective Noteholder will purchase the Notes in accordance with the arrangements in place between the relevant Manager and its customers or the relevant Placer and its customers, relating to the purchase of securities generally.  Noteholders (other than Managers) will not enter into any contractual arrangements directly with the Issuer in connection with the offer or purchase of the Notes.] / [give any details of the application process in any of the Public Offer Jurisdictions]
	 	(v)	Description of possibility to reduce subscriptions and the manner for refunding excess amount paid by applicants:	[Not Applicable] / [give details]
	 	(vi)	Details of the minimum and/or maximum amount of application:	[There are no pre-identified allotment criteria.  The Managers and the Placers will adopt allotment and/or application criteria in accordance with customary market practices and applicable laws and regulations and/or as otherwise agreed between them.] / [give any details of the minimum and/or maximum amount of application] / [Not Applicable]
	 	(vii)	Method and time limits for paying up and delivering the Notes:	[The Notes will be purchased by the Managers from the Issuer on a delivery versus payment basis on the Issue Date.  Prospective Noteholders will be notified by the relevant Manager or Placer of their allocations of Notes and the settlement arrangements in respect thereof.] / [give any details of method and time limits for paying up and delivering the Notes]

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	 	(viii)	Manner in and date on which results of the offer are to be made public:	[Not Applicable] / [give details]
	 	(ix)	Procedure
    for exercise of any right of pre- emption, negotiability of subscription rights and treatment of subscription rights not
    exercised:	[Not Applicable] / [give details]
	 	(x)	Whether tranche(s) have been reserved for certain countries:	[Not Applicable] / [give details]
	 	(xi)	Process for notification to applicants of the amount allotted and indication whether dealing may begin before notification is made:	[Prospective Noteholders will be notified by the relevant Manager or Placer in accordance with the arrangements in place between such Managers or Placers and its customers.  Any dealings in the Notes which take place will be at the risk of prospective Noteholders.] / [give details] / [Not Applicable]
	 	(xii)	Amount of any expenses and taxes specifically charged to the subscriber or purchaser:	[Not Applicable] / [give details]
	 	(xiii)	Name(s) and address(es), to the extent known to the Issuer, of the Placers in the various countries where the offer takes place:	[None known to the Issuer] / [specify]

[Summary of the Notes to be inserted
if applicable]

 

    Page 166

     

    

ANNEX C TO APPENDIX
D

FORM OF PURCHASER’S CONFIRMATION TO THE ISSUER

 

[Date]

 

		To:	[Toyota Motor Finance (Netherlands) B.V.]

[Toyota Credit Canada Inc.]

[Toyota Finance Australia Limited]

[Toyota Motor Credit Corporation]

 

		cc:	The Bank of New York Mellon, acting through its London branch (the Agent)

[The Bank of New York Mellon SA/NV, Luxembourg Branch (the Registrar)]

 

[Name of Issuer]

[Description of Notes]

issued pursuant to the €50,000,000,000 Euro Medium Term Note Programme

of Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc.,

Toyota Finance Australia Limited (ABN 48 002 435 181) and

Toyota Motor Credit Corporation (the “Programme”)

 

We hereby confirm the
agreement for the issue to us of [describe issue] Notes due [        ] (the Notes)
under the Programme in accordance with the Amended and Restated Programme Agreement dated 14 September 2018 [(the Programme
Agreement)] and pursuant to the terms of issue set out in the Final Terms which we are [providing]/[faxing] herewith.

 

[In connection with our purchase
of such Notes, we:

 

		1.	agree with the Issuer for itself and as agent for the Dealers (each as defined in the Programme
Agreement) that we will be bound by the provisions of the Programme Agreement (a copy of which has been supplied to us), with the
exception of Clauses 3 to 5 and 10 to 12 inclusive, as if we had been named as Dealer therein; and

 

		2.	confirm that, where the Issuer authorises us to provide copies of documents and to make representations
and statements in connection with the issue of Notes, such authorisation relates only to the documents, statements and representations
in Clause 7 of the Programme Agreement, subject to the limitations contained in that Clause.]

 

[The Issue Price of
the Notes will be [ ] per cent. of the Aggregate Nominal Amount of the Notes.]

 

[The selling commission
in respect of the Notes will be [        ] per cent. of the Aggregate Nominal Amount of
the Notes [(        )] and will be deductible from the Issue Price of the Notes, giving
net proceeds of [        ].]

 

The Notes are to be
credited to [Euroclear Bank SA/NV/Clearstream Banking S.A.] account number [        ] in
the name of [Name of Purchaser].

 

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[Solely for the purposes
of the requirements of Article 9(8) of the MiFID Product Governance rules under EU Delegated Directive 2017/593 (the MiFID Product
Governance Rules) we acknowledge that we understand the responsibilities conferred upon us under the MiFID Product Governance
Rules relating to each of the product approval process, the target market and the proposed distribution channels as applying to
the Notes and the related information set out in the Final Terms and any announcements in connection with the Notes.]

 

If stabilisation
is to be conducted following the safe harbour set out in Article 5 of the Market Abuse Regulation and Delegated Regulation (EU)
2016/1052 then you should consider including the following:

 

[We hereby acknowledge
our appointment by you as the central point responsible for adequate public disclosure of information, and handling any request
from a competent authority, in accordance with Article 6(5) of Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016 with
regard to regulatory technical standards for the conditions applicable to buy-back programmes and stabilisation measures.]

 

[Insert additional
selling restrictions applicable to the issue of the Notes, as agreed to by the Purchaser]

 

[Insert if Final
Terms relate to an Issue of Notes with a Specified Denomination of less than €100,000 (or its equivalent in any other currency)
to be admitted to trading on an EEA regulated market and/or offered on a non-exempt basis in certain EEA Jurisdictions

 

In addition, as set
out in Appendix 2 of the Programme Agreement (and for the avoidance of doubt, the following provisions are Selling Restrictions
with respect to the Notes and part of the Programme Agreement for the purposes of the issue of the Notes):

 

The Prospectus has
been passported for the purposes of a Non-exempt Offer of Notes to the public and the Issuer understands that [Purchaser]
and any placers authorised on behalf of the Issuer by [Purchaser] involved in the Non-exempt Offer have the Issuer’s
consent (subject to the terms and conditions mentioned below) to use the Prospectus and the Final Terms for a Non-exempt Offer
of the Notes in [Austria, Germany, Luxembourg, the Netherlands, Norway, Spain and the United Kingdom] (such jurisdictions, together
with Ireland, the Jurisdictions and each a Jurisdiction) during the Offer Period (as defined in the Final Terms).

 

Upon the execution
of this Agreement, [Purchaser] may, during the Offer Period, make a Non-exempt Offer using the Prospectus and the Final
Terms in any of the Jurisdictions and otherwise in accordance with the terms and conditions of this Agreement, the Prospectus and
the Final Terms.

 

[Purchaser]
represents and agrees that it has not offered or sold and will not offer in any EEA Member State, any Notes other than by (i) a
Non-exempt Offer in any of the Jurisdictions during the Offer Period pursuant to, and in accordance with, the Prospectus and the
Final Terms (without modification or supplement); or (ii) an offer to qualified investors (as defined in the Prospectus Directive)
or otherwise in compliance with Article 3(2) of the Prospectus Directive and that during the Offer Period, [Purchaser] will
ensure that any Placer (as defined in the Final Terms) purchasing from [Purchaser] any of the Notes has been notified that
by accepting such Notes such Placer undertakes to comply with the foregoing provisions of these Selling Restrictions.

 

    Page 168

     

    

[Purchaser]
also represents and agrees that the following provisions contained in the Final Terms under the heading “Terms and Conditions
of the Public Offer” (including where repeated in the Issue Specific Summary set out in the Schedule to the Final Terms),
in the second sentence of the section entitled “Offer Price”, in the section entitled “Conditions to which the
offer is subject”, in the section entitled “Description of the application process”, in the section entitled
“Details of the minimum and/or maximum amount of application”, in the section entitled “Method and time limits
for paying up and delivering the Notes” and in the section entitled “Process for notification to applicants of the
amount allotted and indication whether dealing may begin before notification is made” relating to it and its offer and sale
process are true and accurate in all respects and that it has not made any Placers as such known to the Issuer [other than any
Placers who are identified as such in the Final Terms].

 

Save as described above
and in the Final Terms, [Purchaser] acknowledges that no action has been taken by the Issuer or any other person that would,
or is intended to, permit a Non-exempt Offer in the Jurisdictions at any time other than during the Offer Period pursuant to, and
in accordance with, the Prospectus and the Final Terms or in any other country or jurisdiction at any time where any such action
for that purpose is required.

 

[Purchaser]
undertakes, that it will not, directly or indirectly, offer or sell any Notes or distribute or publish any offering circular, prospectus,
form of application, advertisement or other document or information in any country or jurisdiction except under circumstances that
will result in compliance with any applicable laws and regulations and all offers and sales of Notes by it will be made on the
same terms, and provided that no such offer or sale of Notes shall require the Issuer or [Purchaser] to publish a prospectus
pursuant to Article 3 of the Prospectus Directive (or supplement a prospectus pursuant to Article 16 of the Prospectus Directive)
or to take any other action in any jurisdiction other than as described above.

 

For the purposes of
these Selling Restrictions, the expression an offer of Notes to the public in relation to any Notes in any relevant Jurisdiction
means the communication in any form and by any means of sufficient information on the terms of the offer and the Notes to be offered
so as to enable an investor to decide to purchase or subscribe the Notes, as the same may be varied in that Jurisdiction by any
measure implementing the Prospectus Directive in that Jurisdiction.]

 

-OR -

 

[Insert if Final
Terms relate to an Issue of Notes with a Specified Denomination of less than €100,000 (or its equivalent in any other currency)
to be admitted to trading on an EEA regulated market and/or offered on an exempt basis in the EEA

 

In addition, as set
out in Appendix 2 of the Programme Agreement (and for the avoidance of doubt, the following provisions are Selling Restrictions
with respect to the Notes and part of the Programme Agreement for the purposes of the issue of the Notes):

 

		(a)	we represent and agree, that we have not offered or sold and we will not offer or sell, whether
through financial intermediaries or otherwise, any such Notes to the public in any EEA Member State by means of the Prospectus,
the applicable Final Terms or any other document, other than to qualified investors (as defined in the Prospectus Directive);

 

		(b)	we acknowledge that no action has been taken by the Issuer or any other person that would, or is
intended to permit an offer to the public of any such Notes in any country or jurisdiction at any time where any such action for
that purpose is required; and

 

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		(c)	we undertake that we will not, directly or indirectly, offer or sell any such Notes or distribute
or publish any offering circular, prospectus, form of application, advertisement or other document or information in any country
or jurisdiction except under circumstances that will result in compliance with any applicable laws and regulations and all offers
and sales of any such Notes by us will be made on the same terms, and provided that no such offer or sale of Notes by us, whether
through financial intermediaries or otherwise, shall require the Issuer, us or any such financial intermediaries to publish a prospectus
pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive.]

 

[Also for the avoidance
of doubt, the Selling Restrictions contained in paragraph [15]/[16] of Appendix 2 to the Programme Agreement are not Selling Restrictions
with respect to the Notes and are not part of the Programme Agreement for the purposes of the issue of the Notes.]

 

[Insert if Uridashi
Notes:

 

Selling Restrictions

 

In addition, and for
the avoidance of doubt, the following provisions are Selling Restrictions with respect to the Notes and part of the Programme Agreement
for the purposes of the issue of the Notes replacing the selling restrictions relating to Japan and the European Economic Area,
respectively:

 

Japan

 

A secondary distribution
(Uridashi) of the Notes is scheduled to be made in Japan. The Notes may not be offered or sold, directly or indirectly,
in Japan or to, or for the benefit of, any resident of Japan (which term as used herein means any person resident in Japan, including
any corporation or other entity organised under the laws of Japan) except in compliance with the terms of [the securities registration
statement and the amendments thereto/the shelf registration statement, the amendments thereto and the supplemental documents] that
have been, or will be, filed by the Issuer with the Director-General of the Kanto Local Finance Bureau of the Ministry of Finance
of Japan with respect to a secondary distribution (Uridashi) of the Notes in Japan in accordance with the Financial Instruments
and Exchange Law of Japan or under circumstances which will result in compliance with all applicable laws, regulations and guidelines
promulgated by the relevant Japanese governmental and regulatory authorities in effect at the relevant time.

 

European Economic
Area

 

We confirm that the
Notes will not be offered or sold in the European Economic Area.]

 

[We represent and agree
that we have not offered, sold or otherwise made available and will not offer, sell or otherwise make available any Notes to any
retail investor in the European Economic Area. For the purposes of this provision:

 

(a)       the
expression “retail investor” means a person who is one (or more) of the following:

 

		(i)	a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, “MiFID II”);
or

 

    Page 170

     

    

		(ii)	a customer within the meaning of Directive 2002/92/EC (as amended), where that customer would not
qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or

 

		(iii)	not a qualified investor as defined in the Prospectus Directive; and

 

		(b)	the expression “offer” includes the communication in any form and by any means
of sufficient information on the terms of the offer and the Notes to be offered so as to enable an investor to decide to purchase
or subscribe the Notes.]

 

[We also confirm that
no action has been taken by [Issuer] or us that would, or is intended to permit an offer to the public of any Notes in the
European Economic Area at any time where any such action for that purpose is required.]

 

[Unless otherwise defined
in this letter, terms and expressions defined in the Programme Agreement shall have the same meanings in this letter, except where
the context requires otherwise.]

 

This letter and any
non-contractual obligations arising out of or in connection with this letter shall be governed by, and construed in accordance
with, the laws of England.

 

Please confirm your
agreement to the terms of issue by signing and [providing]/[faxing] to us a copy of the attached Final Terms. Please also [provide]/[fax]
a copy of the Final Terms to the Agent [and the Registrar].

 

For and on behalf of [Name of Purchaser]

 

	By:	  	 
	 	Authorised signatory	 

    Page 171

     

    

ANNEX D TO APPENDIX
D

FORM OF THE ISSUER’S CONFIRMATION TO AGENT AND PURCHASER

 

[Date]

 

		To:	The Bank of New York Mellon, acting through its London
branch

[The Bank of New York Mellon SA/NV, Luxembourg Branch]

 

and: [Name of Purchaser]

 

[Name of Issuer]

[Description of Notes] (the “Notes”)

issued pursuant to the €50,000,000,000 Euro Medium Term Note Programme

of Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc.,

Toyota Finance Australia Limited (ABN 48 002 435 181) and

Toyota Motor Credit Corporation

 

We hereby confirm our
instruction to The Bank of New York Mellon, acting through its London branch, as Agent to prepare, complete, authenticate and issue
[a Temporary Global Note and a Permanent Global Note]/[the Registered Global Note on [ ] and we hereby authorise and instruct The
Bank of New York Mellon SA/NV, Luxembourg Branch as Registrar to register [ ] aggregate nominal amount of Notes on [ ]] in accordance
with:

 

		(a)	the information contained in the confirmation from [Name of Purchaser] (a copy of which
is attached hereto); [and]

 

		(b)	the terms of the Operating and Administrative Procedures Memorandum relating to the above Programme[,][;
and]

 

		[(c)	the Amended and Restated Note Agency Agreement dated [ ] between Toyota Motor Credit Corporation,
The Bank of New York Mellon, acting through its London branch and The Bank of New York Mellon SA/NV, Luxembourg Branch,]

 

and to give instructions to [Euroclear
Bank SA/NV/Clearstream Banking S.A./other]* to credit the account number [        ]
with [Euroclear Bank SA/NV/Clearstream Banking S.A./other]* in the name of [Name of Purchaser] with the Notes
represented by such [Temporary Global Note][Registered Global Note] against payment on [] of [        ]
to the account of The Bank of New York Mellon, acting through its London branch, account number [        ]
with [Euroclear Bank SA/NV/Clearstream Banking S.A./other]* being the [net] subscription price of such Notes.

 

[Toyota Motor Finance (Netherlands) B.V.]

[Toyota Credit Canada Inc.]

[Toyota Finance Australia Limited]

 

	By:	   	 

 

 

 

	 	*	[Delete as appropriate]

	 	*	[Delete as appropriate]

    Page 172

     

    

 

 

	[Toyota Motor Credit Corporation
	 
	 
	By: 	  	 
	 	Name:	 
	 	Title:]	 

 

 

[Form of Purchaser’s confirmation
to be attached]

 

 

 

    Page 173

     

    

ANNEX E TO APPENDIX
D

TRADING DESK INFORMATION

 

The Issuers

 

TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.

World Trade Center Amsterdam

Tower H, Level 10

Zuidplein 90

1077 XV Amsterdam

The Netherlands

	Telephone:	+31 20 502 5310
	Telefax:	+31 20 502 5319
	Email:	front.office@uk.toyota-fs.com 
	Attention:	Chief Executive Officer

 

TOYOTA CREDIT CANADA INC.

80 Micro Court, Suite 200

Markham

Ontario L3R 9Z5

Canada

	Telephone No:	+1 905 513 8200
	Fax No:	+1 905 513 8335
	Attention:	President

 

TOYOTA FINANCE AUSTRALIA LIMITED

Level 9, 207 Pacific Highway

St Leonards

NSW 2065

Australia

	Telephone No:	+61 2 9430 0000
	Fax No:	+61 2 9430 0913
	Attention:	Treasurer

 

TOYOTA MOTOR CREDIT CORPORATION

6565 Headquarters Drive, Mailstop W2–3D 

Plano

Texas 75024–5965 

United States

	Telephone:	+1 469 486 9013
	Telefax:	+1 310 381 7739
	Email:	TFS_Treasury_Operations@toyota.com
	Attention:	TFS Treasury Operations

  

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The Dealers

 

	MERRILL LYNCH INTERNATIONAL

2 King Edward Street

London EC1A 1HQ

United Kingdom

Telephone: 0207 995 3995 Telefax: 0207 995 0048

Attn: EMTN Trading and Distribution Desk	AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

28th Floor, 40 Bank Street

Canary Wharf

London E14 5EJ

United Kingdom

Telephone: +852 3918 7871

Telefax: +852 3918 7170

Attn: Legal and Transaction Management	BANK OF MONTREAL, LONDON BRANCH

95 Queen Victoria Street

London EC4V 4HG

United Kingdom

Telephone: 0207 664 8062

Telefax: 0207 664 8109

Attn: DCM Syndicate
	BARCLAYS BANK PLC

5 The North Colonnade

Canary Wharf

London E14 4BB

United Kingdom

Telephone: 0207 773 9090

Telefax: 0207 516 7548

Attn: MTN Dealers	BNP PARIBAS

10 Harewood Avenue

London NW1 6AA

United Kingdom

Telephone: 0207 595 8601

Telefax: 0207 595 5053 

Attn: Medium Term Note Desk	CIBC WORLD MARKETS PLC

150 Cheapside

London EC2V 6ET

United Kingdom

Telephone: 0207 234 6387

Email: DLCIBCExecution

Management@cibc.com

Attn: Head of Execution Management 
	CITIGROUP GLOBAL MARKETS LIMITED

Citigroup Centre

Canada Square

Canary Wharf

London E14 5LB

United Kingdom

Telephone: 0207 986 9050

Email: mtndesk@citi.com

Attn: MTN Desk	
        CRÉDIT AGRICOLE CORPORATE AND INVESTMENT
        BANK

        12, Place des Etats-Unis,

        CS 70052

        

        92547 Montrouge

        

        CEDEX France

        Telephone: +33 1 41 89 67 87

        Email: DCM-Legal@ca-cib.com

        

        Attn: Capital Markets Legal Department / Debt
        Instruments

        
	DAIWA CAPITAL MARKETS EUROPE LIMITED

5 King William Street

London EC4N 7AX

United Kingdom

Telephone: 0207 597 8000

Telefax: 0207 597 8644

Email: legalnoticesTM@uk.

daiwacm.com 

Attn: Manager, Transaction Management
	HSBC BANK PLC

8 Canada Square

London E14 5HQ

United Kingdom

Telephone: 0207 991 8888

Telefax: 0207 992 4973

Attn: Transaction Management Group	ING BANK N.V.

Foppingadreef 7

1102 BD Amsterdam

The Netherlands

Telephone: +31 20 563 8019

Telefax: +31 20 565 8515

Email:fm.documentation@ing.com

Attn: DCM Origination / TRC 00.032	
        J.P. MORGAN SECURITIES PLC

        25 Bank Street

        Canary Wharf

        

        London E14 5JP

        United Kingdom

        Telephone: 0207 134 1470

        Email:EMTN.Programmes@jpmorgan.com

        Attn: Euro Medium Term Note Desk

         

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        LLOYDS BANK CORPORATE MARKETS PLC

        10 Gresham Street

        London EC2V 7AE

        United Kingdom

        Telephone: 0207 050 6060

        Telefax: 0207 158 3252

        Attn: Bond Syndicate

        

        Email: bond.syndicate@

        lloydsbanking.com

         
	MIZUHO INTERNATIONAL PLC

Mizuho House

30 Old Bailey

London EC4M 7AU

United Kingdom

Telephone: 0207 248 3920

Telefax: 0207 651 2924

Email: DL-MHI-Primary

Debt-Syndicate@uk.mizuho-sc.com

Attn: Primary Debt Syndicate Desk	MORGAN STANLEY & CO. INTERNATIONAL PLC

25 Cabot Square

Canary Wharf

London E14 4QA

United Kingdom

Telephone: 0207 677 7799

Telefax: 0207 056 4984

Attn: Head of Transaction Management Group, Global Capital Markets
	MUFG SECURITIES EMEA PLC

Ropemaker Place

25 Ropemaker Street

London EC2Y 9AJ

United Kingdom

Telephone: 0207 628 5555

Email: Legal-primarymarkets

@int.sc.mufg.jp 

Attn: Legal – Primary Markets	NATIONAL AUSTRALIA BANK LIMITED

Level 2

88 Wood Street

London EC2V 7QQ

United Kingdom

Telephone No: 0207 710 2994

Telefax: 0207 710 1959

Attn: DCM Desk	NOMURA INTERNATIONAL PLC

1 Angel Lane

London EC4R 3AB

United Kingdom

Telephone: 0207 103 5652

Telefax: 0207 102 5804

Attn: Fixed Income Syndicate
	RBC EUROPE LIMITED

Riverbank House

2 Swan Lane 

London EC4R 3BF

United Kingdom

Telephone: 0207 029 7031

Telefax: 0207 029 7927

Email: tmguk@rbccm.com 

Attn: New Issues Syndicate Desk	SMBC NIKKO CAPITAL MARKETS LIMITED

One New Change

London EC4M 9AF

United Kingdom

Telephone: (020) 3527 7000

Email: LNTM@smbcnikko-cm.com 

Attn: Legal	THE TORONTO-DOMINION BANK

60 Threadneedle Street

London EC2R 8AP

United Kingdom

Telephone: 0207 628 2262

Email: tmg@tdsecurities.com 

Attn: Managing Director, Origination & Syndication
	UNICREDIT BANK AG

Arabellastr. 12

81925 Munich

Germany

Telephone: +49 89 378 18976

Telefax: +49 89 378 33 15964

Email: dcmlegal@unicredit

                                                                                            Attn:
DCM Lega

	 	 

 

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Appendix E

FORM OF THE NOTES

 

Each Tranche of Notes
in bearer form will initially be issued in the form of a temporary global Note (a “Temporary Global Note”) which
will:

 

		(i)	if the global Notes are to be issued in new global note (“NGN”) form, as stated
in the applicable Final Terms, be delivered on or prior to the original issue date of the Tranche to one of the international central
securities depositaries as common safekeeper (the “Common Safekeeper”) for Euroclear Bank SA/NV (“Euroclear”)
and Clearstream Banking S.A. (“Clearstream, Luxembourg”); and

 

		(ii)	if the global Notes are not to be issued in NGN form, as stated in the applicable Final Terms,
be delivered on or prior to the original issue date of the Tranche to a common depositary for Euroclear and Clearstream, Luxembourg
and/or a nominee for any other relevant clearing system (as applicable),

 

without interest coupons or talons.

 

Notes (including Notes
in registered form issued by TCCI or TMCC, as described below) may be issued in a form that permits them to be held in a manner
which will allow Eurosystem eligibility. Any indication in the applicable Final Terms that the Notes are to be so held means that
the Notes are to be deposited with the Common Safekeeper (and, in the case of Notes in registered form issued by TCCI or TMCC,
registered in the name of a nominee of the Common Safekeeper) and does not necessarily mean that the Notes will be recognised as
eligible collateral for Eurosystem monetary policy and intra-day credit operations by the Eurosystem either upon issue or at any
or all times during their life as such recognition depends upon satisfaction of the Eurosystem eligibility criteria. Any indication
in the applicable Final Terms that the Notes are not to be so held means that should the Eurosystem eligibility criteria be amended
in the future such that the Notes are capable of meeting such criteria, the Notes may then be deposited with the Common Safekeeper
(and in the case of Notes in registered form issued by TCCI or TMCC, registered in the name of a nominee of the Common Safekeeper)
and does not necessarily mean that the Notes will be recognised as eligible collateral for Eurosystem monetary policy and intra-day
credit operations by the Eurosystem at any time during their life as such recognition depends upon satisfaction of the Eurosystem
eligibility criteria.

 

Where
the global Notes issued in respect of any Tranche are in NGN form, Euroclear and/or Clearstream, Luxembourg will be notified whether
such global Notes are intended to be held in a manner which would allow Eurosystem eligibility. If the global Note is a NGN, the
nominal amount of the Notes represented by such global Notes will be the aggregate from time to time entered in the records of
both Euroclear and Clearstream, Luxembourg. The records of Euroclear and Clearstream, Luxembourg
(which expression in such global Note means the records that each of Euroclear and Clearstream, Luxembourg holds for its customers
which reflect the amount of each such customer’s interest in the Notes) will be conclusive evidence of the nominal amount
of Notes represented by such global Note and, for such purposes, a statement issued by Euroclear and/or Clearstream, Luxembourg,
stating that the nominal amount of Notes represented by such global Note at any time will be conclusive evidence of the records
of Euroclear and/or Clearstream, Luxembourg at that time, as the case may be. 

 

While any Note is
represented by a Temporary Global Note, payments of principal and interest (if any) due prior to the Exchange Date (as defined
below) will be made (against presentation of the Temporary Global Note if the Temporary Global Note is not issued in NGN form)
only upon certification of non-U.S. beneficial ownership as required by U.S. Treasury regulations to Euroclear and/or Clearstream,
Luxembourg; provided, however, that no such

 

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certification will be required with respect
to Notes that, as specified in the applicable Final Terms (i) have been issued in reliance on the procedures under United States
Treasury regulations Section 1.163-5(c)(2)(i)(C) (or any substantially similar successor United States Treasury regulations) (the
“TEFRA C Rules”) or (ii) have an initial maturity of 183 days or less (taking into consideration unilateral rights
to roll or extend), a minimum denomination of $500,000 (or the equivalent value in any other currency, determined at the spot rate
on the issue date) and are intended to comply with United States Treasury regulations Section 1.6049-5(b)(10).

 

Interests
in the Temporary Global Note will be exchangeable (free of charge) either for:

 

		(i)	interests in a permanent global Note (a “Permanent Global Note”) without interest
coupons or talons; or

 

		(ii)	for security-printed definitive Notes,

 

(as indicated in the applicable Final Terms),
in each case against certification of non-U.S. beneficial ownership as required by U.S. Treasury regulations in accordance with
the terms of the Temporary Global Note:

 

		(a)	on and after the date which is 40 days after completion of the distribution of the relevant Tranche
of Notes; or

 

		(b)	at the option of the relevant Issuer (with the consent of the Lead Manager(s) of the Tranche(s)
of Notes of the relevant Series) on the date which is 40 days after completion of the distribution of any additional issuance or
issuances of one or more Tranches of Notes of the same Series that occurs within the 40 day period after the issue of the Temporary
Global Note,

 

(the latest of such dates in
paragraphs (a) and (b) is referred to as the “Exchange Date”),

 

provided that no such certification of
non-U.S. beneficial ownership will be required with respect to Notes that, as specified in the applicable Final Terms (i) have
been issued in compliance with the TEFRA C Rules or (ii) have an initial maturity of 183 days or less (taking into consideration
unilateral rights to roll or extend), a minimum denomination of $500,000 (or the equivalent value in any other currency, determined
at the spot rate on the issue date) and are intended to comply with United States Treasury regulations Section 1.6049-5(b)(10).

 

The holder of a Temporary
Global Note will not be entitled to collect any payment of interest or principal due on or after the Exchange Date unless, upon
due certification, exchange of the Temporary Global Note for an interest in a Permanent Global Note or for definitive Notes is
improperly withheld or refused. Pursuant to the Agency Agreement (as defined under “Terms and Conditions of the Notes”)
the Agent shall arrange that, where a further Tranche of Notes is issued after the Exchange Date, the Notes of such further Tranche
shall be assigned security code numbers by Euroclear and Clearstream, Luxembourg which are different from the security code numbers
assigned to Notes of any other Tranche of the same Series until at least the expiry of the distribution compliance period (as defined
in Regulation S under the Securities Act) applicable to the Notes of such Tranche.

 

The Permanent Global
Note will, unless otherwise agreed between the relevant Issuer and the relevant Dealer, if the global Notes are issued in NGN form
as stated in the applicable Final Terms, be delivered on or prior to the original issue date of the Tranche to the Common Safekeeper
for Euroclear and Clearstream, Luxembourg. If the global Notes are not issued in NGN form, the Permanent Global Note will be delivered
to the common depositary for Euroclear and Clearstream, Luxembourg.

 

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Payments
of principal and interest (if any) on a Permanent Global Note will be made through Euroclear and/or
Clearstream, Luxembourg (against presentation or surrender (as the case may be) of the Permanent Global Note if the Permanent Global
Note is not issued in NGN form) without any requirement for certification. 

 

A
Permanent Global Note will, if specified in the applicable Final Terms, be exchanged (free of charge) in whole, but not in part,
for security printed definitive Notes with, where applicable, interest coupons and talons attached
(i) at the request of the relevant Issuer; and/or (ii) upon the occurrence of an Exchange Event (as defined below). 

 

For these purposes,
“Exchange Event” means that (i) an Event of Default (as defined in Condition 9 under “Terms and Conditions
of the Notes”) has occurred and is continuing; (ii) the relevant Issuer has been notified that both Euroclear and Clearstream,
Luxembourg, or any other agreed clearing system in which such Permanent Global Note is being held, have been closed for business
for a continuous period of 14 days (other than by reason of holiday, statutory or otherwise) or have announced an intention permanently
to cease business or have in fact done so and, as a result, Euroclear and Clearstream, Luxembourg or such other agreed clearing
system in which such Permanent Global Note is being held are no longer willing or able to discharge properly their responsibilities
with respect to such Notes and the Agent and the relevant Issuer are unable to locate a qualified successor; or (iii) the relevant
Issuer has or will become subject to adverse tax consequences as a result of a change in tax laws after the issuance of the Notes
which would not be suffered were the Notes represented by the Permanent Global Note in definitive form.

 

The relevant Issuer
will promptly give notice to Noteholders in accordance with Condition 16 under “Terms and Conditions of the Notes”
if an Exchange Event occurs. In the event of the occurrence of an Exchange Event, Euroclear and/or Clearstream, Luxembourg and/or
any other agreed clearing system in which such Permanent Global Note is being held (acting on the instructions of any holder of
an interest in such Permanent Global Note) may give notice to the Agent requesting exchange and, in the event of the occurrence
of an Exchange Event as described in (iii) above, the relevant Issuer may also give notice to the Agent requesting exchange. Any
such exchange shall occur not later than 45 days after the date of receipt of the first relevant notice by the Agent.

 

If a portion of the
Notes continues to be represented by the Temporary Global Note after the issuance of definitive Notes, the Temporary Global Note
shall thereafter be exchangeable only for definitive Notes, subject to certification of non-U.S. beneficial ownership; provided,
however, that no such certification of non-U.S. beneficial ownership will be required with respect to Notes that (i) are issued
in reliance on the TEFRA C Rules or (ii) as specified in the applicable Final Terms, have an initial maturity of 183 days or less
(taking into consideration unilateral rights to roll or extend), a minimum denomination of $500,000 (or the equivalent value in
any other currency, determined at the spot rate on the issue date) and are intended to comply with United States Treasury Regulations
Section 1.6049-5(b)(10).

 

No definitive Note
delivered in exchange for a Permanent Global Note or a Temporary Global Note shall be mailed or otherwise delivered to any locations
in the United States of America in connection with such exchange. Temporary Global Notes and Permanent Global Notes and definitive
Notes will be issued by the Agent pursuant to the Agency Agreement.

 

If specified in the
applicable Final Terms, other clearance systems may be used in addition to or in lieu of Euroclear and Clearstream, Luxembourg
provided that, in the case of an issue of Bearer Notes, such other clearance system is capable of complying with the certification
requirements set forth in the Temporary Global Note or the Notes are issued in compliance with the TEFRA C Rules and any reference
herein to Euroclear and/or Clearstream, Luxembourg shall, whenever the context so permits, except in relation to Notes issued in
NGN form, be deemed to include such other additional or alternative clearing system.

 

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Temporary Global Notes
and Permanent Global Notes will be issued in bearer form only. Definitive Notes will be issued in bearer form or, in the case of
Notes issued by TCCI or TMCC, if so indicated in the applicable Final Terms, in registered form.

 

For
United States federal income tax purposes each Permanent Global Note and each definitive Note
issued in bearer form which has an original maturity of more than 365 days (taking into consideration unilateral rights to roll
or extend) issued by TMF, TCCI or TFA (other than Notes issued in compliance with the TEFRA C Rules) and any interest coupon which
may be detached therefrom (or, if the obligation is evidenced by a book entry, appears in the book or record in which the book
entry is made) will carry the following legend:

 

“Any United States
person (as defined in the Internal Revenue Code of the United States) who holds this obligation will be subject to limitations
under the United States income tax laws, including the limitations provided in Sections 165(j) and 1287(a) of the Internal Revenue
Code.”

 

The sections referred
to in such legend provide that United States Noteholders, with certain exceptions, will not be entitled to deduct any loss on Notes
or interest coupons and will not be entitled to capital gains treatment of any gain on any sale, disposition or payment of principal
in respect of Notes or interest coupons.

 

For
United States federal tax purposes each Temporary Global Note, each Permanent Global Note and
each definitive Note issued in bearer form which has an original maturity of 183 days or less (taking into consideration unilateral
rights to roll or extend), a minimum denomination of $500,000 (or the equivalent value in any other currency, determined
at the spot rate on the issue date) and, as specified in the applicable Final Terms, is intended to comply with United States Treasury
Regulations Section 1.6049-5(b)(10) and any interest coupon which may be detached therefrom (or, if
the obligation is evidenced by a book entry, appears in the book or record in which the book entry is made) will carry the following
legend:

 

“By accepting
this obligation, the holder represents and warrants that it is not a United States person (other than an exempt recipient described
in Section 6049(b)(4) of the Internal Revenue Code of the United States and the regulations thereunder) and that it is not
acting for or on behalf of a United States person (other than an exempt recipient described in Section 6049(b)(4) of the Internal
Revenue Code and the regulations thereunder).”

 

Unless Notes issued
by TMF, TCCI or TFA in bearer form will be issued, as specified in the applicable Final Terms, in compliance with the TEFRA C Rules,
Notes issued by TMF, TCCI or TFA in bearer form will be issued in compliance with United States Treasury Regulation Section 1.163-5(c)(2)(i)(D)
(or any substantially similar successor United States Treasury regulations) (the “D Rules”) and Notes issued
by TMCC with maturities at issuance of 183 days or less (taking into consideration unilateral rights
to roll or extend) and in a face amount or nominal amount of not less than U.S.$500,000 (as determined based on the spot
rate on the date of issuance if such Notes are issued in a currency other than U.S. dollars) that, as specified in the applicable
Final Terms, are intended to comply with United States Treasury Regulation Section 1.6049-5(b)(10), will be issued in compliance
with the D Rules (excluding the certification requirement).

 

TMCC will not issue
notes in bearer form with a maturity at issuance of more than 183 days (taking into consideration unilateral rights to roll or
extend).

 

Notes
may be issued in registered form (“Registered Notes”) by either TCCI or TMCC, subject to applicable laws and
regulations. Each Tranche of Registered Notes issued by TCCI or TMCC will be represented on issue by a registered global Note (each
a “Registered Global Note”) which will be (a) if the applicable Final Terms specify the Registered Notes are
intended to held in a manner which would allow Eurosystem eligibility (being the new safekeeping structure (“NSS”)),
deposited on the relevant Issue Date with the Common Safekeeper; or (b) if the applicable Final Terms specify the Registered Notes
are not intended to be held in a manner which

 

    Page 180

     

    

would allow Eurosystem
eligibility, deposited on the relevant Issue Date with a nominee or a depositary or common depositary for the agreed clearing system(s).
Such Registered Global Note will not be exchangeable for Registered Notes in definitive form except on an Exchange Event (as that
term is defined in the Registered Global Note). With respect to each Tranche of Registered Notes, TCCI has appointed, under an
amended and restated note agency agreement dated 8 September 2017 (the “TCCI Note Agency Agreement”), and
TMCC has appointed under a note agency agreement dated 8 September 2017 (the “TMCC Note Agency Agreement”),
a registrar or registrars and a transfer agent and paying agent and may appoint other or additional transfer agents or paying agents,
either generally or in respect of a particular Series of Registered Notes.

 

The
applicable Final Terms will specify whether the Notes will be represented by:

 

		(i)	a Temporary Global Note in bearer form without Coupons which will be deposited with a common depositary
or, as the case may be, a common safekeeper for Euroclear and Clearstream, Luxembourg on or about the Issue Date or a date as specified
in the applicable Final Terms; and that the Temporary Global Note is exchangeable for a Permanent Global Note in bearer form on
and after the Exchange Date and (except for Notes (x) with an initial maturity of 183 days or less (taking into consideration unilateral
rights to roll or extend), a minimum denomination of $500,000 (or its equivalent value in any other currency, determined at the
spot rate on the Issue Date) and specified in the applicable Final Terms as intended to comply with United States Treasury Regulations
Section 1.6049-5(b)(10) and (y) as specified in the applicable Final Terms, that have been issued in reliance on TEFRA C Rules)
upon certification of non-U.S. beneficial ownership; or

 

		(ii)	a Temporary Global Note in bearer form without Coupons which will be deposited with a common depositary
or, as the case may be, a common safekeeper for Euroclear and Clearstream, Luxembourg on or about the Issue Date or a date as specified
in the applicable Final Terms; and that the Temporary Global Note is exchangeable for security printed definitive Notes on and
after the Exchange Date and (except for Notes (x) with an initial maturity of 183 days or less (taking into consideration unilateral
rights to roll or extend), a minimum denomination of $500,000 (or its equivalent value in any other currency, determined at the
spot rate on the Issue Date) and specified in the applicable Final Terms as intended to comply with United States Treasury Regulations
Section 1.6049-5(b)(10) and (y) as specified in the applicable Final Terms, that have been issued in reliance on TEFRA C Rules)
upon certification of non-U.S. beneficial ownership; or

 

		(iii)	a Permanent Global Note in bearer form without Coupons which will be deposited with a common depositary
or, as the case may be, a common safekeeper for Euroclear and Clearstream, Luxembourg on or about the Issue Date or a date as specified
in the applicable Final Terms; and that the Permanent Global Note is exchangeable (free of charge) in whole, but not in part, for
security printed definitive Notes either (a) at the request of the relevant Issuer; and/or (b) upon the occurrence of an Exchange
Event (as defined in the Permanent Global Note); or

 

		(iv)	in the case of TCCI or TMCC only, a Registered Global Note registered in the name of a nominee
for CDS Clearing and Depository Services Inc. (in the case of TCCI only) or a common depositary for Euroclear and Clearstream,
Luxembourg or a common safekeeper for Euroclear and Clearstream, Luxembourg or any other clearing system exchangeable (free of
charge) for security printed definitive Notes only upon an Exchange Event (as defined in the Registered Global Note).

 

The exchange of a
Permanent Global Note or a Registered Global Note for printed definitive Notes by Euroclear and/or Clearstream, Luxembourg (acting
on the instructions of any Noteholder) or at any time at the request of the relevant Issuer should not be expressed to be applicable
in the applicable Final Terms if the Notes are issued with a minimum Specified Denomination such as €100,000 (or its equivalent
in another currency) plus one or more higher

 

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multiples of another smaller amount such
as €1,000 (or its equivalent in another currency). Furthermore, such Specified Denomination construction is not permitted
in relation to any issue of Notes which is to be represented on issue by a Temporary Global Note exchangeable for printed definitive
Notes.

 

Notes shall not be
physically delivered in Belgium, except to a clearing system, a depository or other institution for the purpose of their immobilisation
in accordance with Article 4 of the Belgian Law of 14 December 2005.

 

Each
Issuer may agree with any Dealer that there may be a secondary distribution (“Uridashi”) of the Notes (“Uridashi
Notes”) to be made in Japan in compliance with the terms of a securities registration statement, amendments thereto and
supplemental documents that have been, or will be, filed by the relevant Issuer with the Director-General of the Kanto Local Finance
Bureau of the Ministry of Finance of Japan with respect to such secondary distribution of Uridashi Notes in Japan and in accordance
with the Financial Instruments and Exchange Law of Japan or under circumstances which will result in compliance with all applicable
laws, regulations and guidelines promulgated by the relevant Japanese governmental and regulatory authorities in effect at the
relevant time.

 

Each
Issuer may agree with any Dealer that Notes may be issued in a form not contemplated by the terms and conditions of the Notes herein,
in which case a new Prospectus will be made available which will describe the effect of the agreement reached in relation to such
Notes.

 

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Appendix F

ADDITIONAL DUTIES OF THE AGENT

 

In relation to each
Series of Bearer Notes that are New Global Notes, the Agent will comply with the following provisions:

 

1.       The
Agent will inform each of Euroclear and Clearstream, Luxembourg (the ICSDs), through the common service provider appointed
by the ICSDs to service the Notes (the CSP), of the initial issue outstanding amount (IOA) for each Tranche on or
prior to the relevant Issue Date.

 

2.       If
any event occurs that requires a mark up or mark down of the records which an ICSD holds for its customers to reflect such customers’
interest in the Notes, the Agent will (to the extent known to it) promptly provide details of the amount of such mark up or mark
down, together with a description of the event that requires it, to the ICSDs (through the CSP) to ensure that the IOA of the Notes
remains at all times accurate.

 

3.       The
Agent will at least once every month reconcile its record of the IOA of the Notes with information received from the ICSDs (through
the CSP) with respect to the IOA maintained by the ICSDs for the Notes and will promptly inform the ICSDs (through the CSP) of
any discrepancies.

 

4.       The
Agent will promptly assist the ICSDs (through the CSP) in resolving any discrepancy identified in the IOA of the Notes.

 

5.       The
Agent will promptly provide to the ICSDs (through the CSP) details of all amounts paid by it under the Notes (or, where the Notes
provide for delivery of assets other than cash, of the assets so delivered).

 

6.       The
Agent will (to the extent known to it) promptly provide to the ICSDs (through the CSP) notice of any changes to the Notes that
will affect the amount of, or date for, any payment due under the Notes.

 

7.       The
Agent will (to the extent known to it) promptly provide to the ICSDs (through the CSP) copies of all information that is given
to the holders of the Notes.

 

8.       The
Agent will promptly pass on to the relevant Issuer all communications it receives from the ICSDs directly or through the CSP relating
to the Notes.

 

9.       The
Agent will (to the extent known to it) promptly notify the ICSDs (through the CSP) of any failure by the relevant Issuer to make
any payment or delivery due under the Notes when due.

 

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Appendix G

FORM OF DEED POLL

(sUBSTITUTION OF ISSUER)

 

This Deed Poll is made
on [        ], 20[  ] by [        ] (the
Retiring Issuer), a company incorporated in [       ] and [        ]
(the Substitute Issuer), a company incorporated in [        ] in favour of holders,
which expression includes any persons shown in the records of Euroclear Bank SA/NV and/or Clearstream Banking S.A. [or such other
clearing system indicated in the applicable Final Terms for such Notes][indicate other clearing systems] as holders of a
principal amount, of Notes (as defined below) from time to time.

 

WHEREAS:

 

		(A)	It has been proposed that in respect of [any of the debt securities issued by the Retiring Issuer
under the Euro Medium Term Note Programme of, inter alia, the Retiring Issuer and which remain outstanding on the Effective
Date (as defined below) (the Notes)]/[the [principal amount] [description of Series] Notes due [maturity]
(the Notes) of the Retiring Issuer issued under the Euro Medium Term Note Programme of, inter alia, the Retiring
Issuer] there will be a substitution of the Substitute Issuer for the Retiring Issuer as the issuer of the Notes (the substitution).

 

		(B)	The Notes have been issued [under, and [delete in the case of Registered Notes]] with the
benefit of, an amended and restated Agency Agreement (the Agency Agreement, which expression includes the same as it may
be amended, supplemented or restated from time to time) dated 8 September 2017 between, inter alia, the Retiring Issuer
and The Bank of New York Mellon, acting through its London branch, as agent.

 

		[(C)	[Include in the case of Registered Notes] The Notes have been issued under, and with the
benefit of, [an amended and restated] [a] Note Agency Agreement (the [TCCI] [TMCC] Note Agency Agreement, which expression
includes the same as it may be amended, supplemented or restated from time to time) dated 8 September 2017 between, inter alia,
the Retiring Issuer, The Bank of New York Mellon, acting through its London branch, as paying agent and transfer agent [only
TCCI] BNY Trust Company of Canada as registrar, paying agent and transfer agent and The Bank of New Mellon SA/NV, Luxembourg
Branch as registrar and transfer agent.[only TMCC] and The Bank of New Mellon SA/NV, Luxembourg Branch as registrar and
transfer agent.]

 

NOW THIS DEED WITNESSES AS FOLLOWS:

 

		1.	References herein to the Notes include any Global Note representing the Notes and other
expressions defined in the Notes and the Agency Agreement [and, in the case of Registered Notes issued by TCCI, the TCCI Note Agency
Agreement] [and, in the case of Registered Notes issued by TMCC, the TMCC Note Agency Agreement] have the same meaning in this
Deed unless the context requires otherwise.

 

		2.	The Substitute Issuer agrees that, with effect from and including the date of execution of this
Deed Poll, all the other conditions to the substitution contained in Condition 14 having been met, (the Effective Date),
it shall be deemed to be the “Issuer” for all purposes in respect of the Notes[, the Coupons, the Talons] and the Agency
Agreement [and, in the case of Registered Notes issued by TCCI, the TCCI Note

 

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Agency Agreement] [and, in the
case of Registered Notes issued by TMCC, the TMCC Note Agency Agreement] insofar as it relates to the Notes, as fully as if the
Substitute Issuer had been named in the Notes[, the Coupons, the Talons] and the Agency Agreement [and, in the case of Registered
Notes issued by TCCI, the TCCI Note Agency Agreement] [and, in the case of Registered Notes issued by TMCC, the TMCC Note Agency
Agreement] as the principal debtor in respect of them in place of the Retiring Issuer and, accordingly, it shall be entitled to
all the rights, and shall be subject to all the liabilities and obligations, on the part of the Retiring Issuer contained in them.

 

		3.	With effect from and including the Effective Date, the Retiring Issuer is released from all its
liabilities and obligations as principal debtor, in its capacity as issuer of the Notes, contained in the Notes[, the Coupons,
the Talons] and the Agency Agreement [and, in the case of Registered Notes issued by TCCI, the TCCI Note Agency Agreement] [and,
in the case of Registered Notes issued by TMCC, the TMCC Note Agency Agreement] insofar as they relate to the Notes.

 

		4.	With effect from and including the Effective Date, the Conditions of the Notes and the provisions
of the Agency Agreement [and, in the case of Registered Notes issued by TCCI, the TCCI Note Agency Agreement] [and, in the case
of Registered Notes issued by TMCC, the TMCC Note Agency Agreement] relating to the Substitute Issuer (but without altering such
provisions insofar as they relate to notes issued pursuant to the Agency Agreement [and, in the case of Registered Notes issued
by TCCI, the TCCI Note Agency Agreement] [and, in the case of Registered Notes issued by TMCC, the TMCC Note Agency Agreement]
other than Notes) are amended in the following ways:

 

		(a)	the following sentence is added to the end of the fourth paragraph of the Conditions:

 

“The Noteholders (as defined
below) have the benefit of a Deed Poll (the Deed Poll) dated [          ]
executed by [insert appropriate reference to the Substitute Issuer] and the [insert appropriate reference to the Retiring
Issuer] [and a Credit Support Agreement dated [          ] between the Substitute
Issuer and [TFS][the Parent] executed in relation to the Notes [and the TMC Credit Support Agreement]].”

 

		[(b)	Where the Substitute Issuer is subject generally to a taxing jurisdiction differing from or
in addition to the taxing jurisdiction to which the Retiring Issuer for which it shall have been substituted under Condition 14
was subject insert here an undertaking or covenant in terms corresponding to Condition 7 with the substitution for or addition
to the references to the taxing jurisdiction to which the Retiring Issuer, as the case may be, was subject of references to the
taxing jurisdiction or additional taxing jurisdiction to which such Substitute Issuer, as the case may be, is subject and, in such
case, specify that Condition 7 shall be deemed to be modified accordingly when the substitution takes effect.]

 

		5.	The Substitute Issuer represents, warrants and undertakes with each and every Noteholder, Couponholder
and Relevant Account Holder that the Substitute Issuer is solvent and that it has all corporate power, and has taken all necessary
corporate or other steps including obtaining all necessary governmental and regulatory approvals and consents for the substitution
and for the performance by the Substitute Issuer of its obligations under the Notes[, the Coupons and Talons] and the Agency Agreement

 

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[and, in the case of Registered
Notes issued by TCCI, the TCCI Note Agency Agreement] [and, in the case of Registered Notes issued by TMCC, the TMCC Note Agency
Agreement], to enable it to execute, deliver and perform this Deed, and that this Deed constitutes legal, valid and binding obligations
of the Substitute Issuer enforceable in accordance with its terms, subject to the laws of bankruptcy, insolvency, reorganisation,
moratorium or similar laws affecting creditors’ rights generally.

 

		6.	The Substitute Issuer agrees that the benefit of the undertakings and the covenants binding upon
it contained in this Deed shall be for the benefit of each and every Noteholder, Couponholder and Relevant Account Holder and each
Noteholder, Couponholder and Relevant Account Holder shall be entitled severally to enforce such obligations against the Substitute
Issuer in respect of any Notes.

 

		7.	The Retiring Issuer represents, and warrants with each and every Noteholder, Couponholder and Relevant
Account Holder that it has obtained all necessary governmental and regulatory approvals and consents for the substitution.

 

		8.	Duplicates of this Deed shall be deposited with and held to the exclusion of the Substitute Issuer
by the Relevant Clearing System and the Agent [or each TCCI Registrar in the case of Registered Notes issued by TCCI] [or the TMCC
Registrar in the case of Registered Notes issued by TMCC] until complete performance of the obligations contained in the Notes
and the Agency Agreement [and, in the case of Registered Notes issued by TCCI, the TCCI Note Agency Agreement] [and, in the case
of Registered Notes issued by TMCC, the TMCC Note Agency Agreement] relating to them occurs and the Substitute Issuer hereby acknowledges
the right of every Noteholder, Couponholder and Relevant Account Holder to production of this Deed and, upon request and payment
of the expenses incurred in connection therewith, to the production of a copy hereof certified to be a true and complete copy.

 

		9.	This Deed may only be amended in the same way as the other Conditions and the Agency Agreement
[and, in the case of Registered Notes issued by TCCI, the TCCI Note Agency Agreement] [and, in the case of Registered Notes issued
by TMCC, the TMCC Note Agency Agreement] are capable of amendment under the Conditions and Clause 28 of the Agency Agreement [and,
in the case of Registered Notes issued by TCCI, Clause 19 of the TCCI Note Agency Agreement, respectively] [and in the case of
Registered Notes issued by TMCC, Clause 19 of the TMCC Note Agency Agreement, respectively].

 

		10.	This Deed and any non-contractual obligations arising out of or in connection with this Deed shall
be governed by, and construed in accordance with, English law.

 

		11.	The Substitute Issuer hereby irrevocably agrees for the exclusive benefit of the Noteholders, Couponholders
and Relevant Account Holders that the courts of England are to have jurisdiction to settle any disputes which may arise out of
or in connection with this Deed (including any dispute relating to any non-contractual obligations arising out of or in connection
with this Deed) and that accordingly any suit, action or proceedings (together referred to as Proceedings) arising out of
or in connection with this Deed (including any Proceedings relating to any non-contractual obligations arising out of or in connection
with this Deed) may be brought in such courts. The Substitute Issuer hereby irrevocably waives any objection which it may have
to the laying of the venue of any Proceedings in any such courts and any claim that any such Proceedings have been brought in an
inconvenient forum and hereby further irrevocably agrees that a judgment in any Proceedings brought in the English

 

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courts shall be conclusive and
binding upon the Substitute Issuer and may be enforced in the courts of any other jurisdiction. Nothing contained herein shall
limit any right to take Proceedings against the Substitute Issuer in any other court of competent jurisdiction, nor shall the taking
of Proceedings in one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction, whether concurrently
or not. [The Substitute Issuer hereby appoints [Toyota Financial Services (UK) PLC of Great Burgh, Burgh Heath, Epsom, Surrey KT18
5UZ] as its agent for service of process and agrees that, in the event of [Toyota Financial Services (UK) PLC] ceasing so to act
or ceasing to be registered in England, it will appoint another person as its agent for service of process in England in respect
of any Proceedings.]

 

IN WITNESS whereof this Deed has
been executed by and on behalf of the parties hereto as a Deed Poll as of the day and year first above written.

 

	[Signed as a deed	)
	by [                        ]	)
	[being duly authorised attorney of]	)
	[Substitute Issuer]	)
	in the presence of:]	)
	[U.K. Substitute Issuer acting by	)
	[name of director]	)
	a Director and [name of director or secretary]	)
	[a Director][the Secretary]]	)
	 	 
	 	 
	 	 
	[Signed as a deed	)
	by [                        ]	)
	being duly authorised attorney of	)
	[Retiring Issuer]	)
	in the presence of:]	)

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