Document:

EX-10.1

 Exhibit 10.1 

UNITED STATES OF AMERICA 

BEFORE THE FEDERAL TRADE COMMISSION 
  

					
	COMMISSIONERS:	  	Edith Ramirez, Chairwoman
		  	Julie Brill
		  	Maureen K. Ohlhausen
		  	Joshua D. Wright
		  	Terrell McSweeny

  

					
	 	 	)	 	
	In the Matter of	 	)	 	
		 	)	 	
	GRACO INC.,	 	)	 	
	 a corporation,
	 	)	 	 Docket No. 9350

		 	)	 	
	ILLINOIS TOOL WORKS INC.,	 	)	 	 PUBLIC

	 a corporation, and
	 	)	 	
		 	)	 	
	ITW FINISHING LLC,	 	)	 	
	 a limited liability company.
	 	)	 	
	 	 	)	 	

 DECISION AND ORDER 

[Redacted Public Version] 

The Federal Trade Commission (“Commission”), having heretofore issued its administrative Complaint charging Respondents Graco Inc.
(“Graco”), Illinois Tool Works Inc., and ITW Finishing LLC (“ITW”), hereinafter referred to as the Respondents, with violations of Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18, and Section 5 of the
Federal Trade Commission Act, as amended, 15 U.S.C. § 45, and the Respondents having been served with a copy of the Complaint, together with a notice of contemplated relief, and the Respondents having answered the Complaint denying said
charges; and 
 The Respondents, their attorneys, and counsel for the Commission having thereafter executed an Agreement Containing Consent
Orders (“Consent Agreement”), containing an admission by the Respondents of all the jurisdictional facts set forth in the aforesaid Complaint, a statement that the signing of said Consent Agreement is for settlement purposes only and does
not constitute an admission by the Respondents that the law has been violated as alleged in such Complaint, or that the facts as alleged in such Complaint, other than jurisdictional facts, are true, and waivers and other provisions as required by
the Commission’s Rules; and 
 The Secretary of the Commission having thereafter withdrawn the matter from adjudication in accordance
with § 3.25(c) of its Rules; and 

  
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 The Commission having thereafter considered the matter and the executed Consent Agreement, and
thereupon issued its Order to Hold Separate and Maintain Assets, and having accepted the executed Consent Agreement and placed such agreement on the public record for a period of thirty (30) days, and having duly considered the comments filed
by interested persons pursuant to Commission Rule 2.34, 16 C.F.R. § 2.34, and having modified the Decision and Order in certain respects, now in further conformity with the procedure prescribed in § 3.25(f) of its Rules, the Commission
hereby makes the following jurisdictional findings and issues the following Decision and Order (“Order”): 
  

	1.	Respondent Graco Inc. is a corporation organized, existing, and doing business under, and by virtue of, the laws of the State of Minnesota, with its office and principal place of business located at 88-11th Avenue
Northeast, Minneapolis, Minnesota 55413. 

  

	2.	Respondent Illinois Tool Works Inc. is a corporation organized, existing, and doing business under, and by virtue of, the laws of the State of Delaware, with its office and principal place of business located at 3600
West Lake Avenue, Glenview, Illinois 60026. 

  

	3.	Respondent ITW Finishing LLC is a limited liability company organized, existing, and doing business under and by virtue of the laws of the State of Delaware, with its office and principal place of business located at
3600 West Lake Avenue, Glenview, Illinois 60026. ITW Finishing LLC is indirectly wholly owned by Illinois Tool Works Inc. 

  

	4.	The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the Respondents, and the proceeding is in the public interest. 

ORDER 
 I. 

IT IS HEREBY ORDERED that, as used in this Order, the following definitions shall apply: 

 

	A.	“Graco” means Graco Inc., its directors, officers, employees, agents, representatives, successors, and assigns; and its subsidiaries, divisions, groups and affiliates in each case controlled by Graco, and the
respective directors, officers, employees, agents, representatives, successors, and assigns of each. After the Acquisition Date, Graco includes the Liquid Finishing Business Assets. After the Divestiture Date, Graco excludes the Liquid Finishing
Business Assets and any subsidiaries that are divested in connection with the divestiture of the Liquid Finishing Business Assets. 

  

	B.	“ITW” means Illinois Tool Works Inc., its directors, officers, employees, agents, representatives, successors, and assigns; and its subsidiaries, divisions, groups and affiliates in each case controlled by ITW
(including, but not limited to, Respondent ITW Finishing LLC), and the respective directors, officers, employees, agents, representatives, successors, and assigns of each. 

  
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	C.	“Commission” means the Federal Trade Commission. 

  

	D.	 “3M” means 3M Company, a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware,
with its headquarters address located at 3M Center, St. Paul, Minnesota 55144-1000. The term “3M” includes 3M Innovative Properties Company. 

  

	E.	 “3M Agreements” means the 3M Settlement Agreement and the 3M Supply and License Agreement. The 3M Agreements are attached as Appendix 1,
Confidential Exhibit 1, to this Order. 

  

	F.	“3M Settlement Agreement” means the Settlement Agreement, dated October 23, 2008, by and among 3M Company, 3M Innovative Properties Company, Illinois Tool Works Inc. and ITW Finishing LLC.

  

	G.	“3M Supply and License Agreement” means the Supply and License Agreement, dated October 23, 2008, by and among 3M Company, 3M Innovative Properties Company, Illinois Tool Works Inc. and ITW Finishing LLC.

  

	H.	“3M-ITW Settlement-Related Agreements” means all agreements and releases by and between Graco and ITW related to the settlement between 3M and ITW of the lawsuit filed by 3M against ITW on March 8, 2013,
in the United States District Court for the District of Minnesota, 3M Company and 3M Innovative Properties Company v. Illinois Tool Works, Inc. and ITW Finishing L.L.C., Case No. 0:13-CV-00553 (“3M-ITW Settlement”), pursuant to
which Respondents have agreed, among other things, to transfer and convey the 3M Agreements and the DeKups IP and Tooling to, and for use in connection with, the Liquid Finishing Business. The 3M-ITW Settlement-Related Agreements are attached as
Appendix 1, Confidential Exhibit 2, to this Order. 

  

	I.	“Acquisition” means the acquisition described in the Asset Purchase Agreement, by and among Graco Inc., Graco Holdings Inc., Graco Minnesota Inc., Illinois Tool Works Inc., and ITW Finishing LLC, dated
April 14, 2011 (the “Asset Purchase Agreement”), including the First Amendment to the agreement, dated April 2, 2012. 

  

	J.	“Acquisition Date” means April 2, 2012, the date the Acquisition was consummated. 

  

	K.	“Business Records” means all originals and all copies of any operating, financial or other information, documents, data, computer files (including files stored on a computer’s hard drive or other storage
media), electronic files, books, records, ledgers, papers, instruments, and other materials, whether located, stored or maintained in traditional paper format or by means of electronic, optical, or magnetic media or devices, photographic or video
images, or any other format or media, including, without limitation: distributor files and records; customer files and records, customer lists, customer product specifications, customer purchasing histories, customer service and support materials,
customer approvals and other information; credit records and information; correspondence; referral sources; supplier and vendor files and lists; 

  
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advertising, promotional and marketing materials, including website content; sales materials; research and development data, files, and reports; technical information; data bases; studies;
drawings, specifications and creative materials; production records and reports; service and warranty records; equipment logs; operating guides and manuals; employee and personnel records; educational materials; tax returns; financial and accounting
records; and other documents, information, and files of any kind. 

  

	L.	“Commission-approved Acquirer” means any Person that receives the prior approval of the Commission to acquire the Liquid Finishing Business Assets pursuant to Paragraph II. (or Paragraph V.) of this Order.

  

	M.	“Confidential Business Information” means competitively sensitive, proprietary and all other business information of any kind, except for any information that Respondents demonstrate (i) was or becomes
generally available to the public other than as a result of a disclosure by Respondents, or (ii) was available, or becomes available, to Respondents on a non-confidential basis, but only if, to the knowledge of Respondents, the source of such
information is not in breach of a contractual, legal, fiduciary, or other obligation to maintain the confidentiality of the information. 

  

	N.	“DeKups Products” means all “Supplied Products” within the meaning of the 3M Supply and License Agreement as identified and described on Exhibit A to the 3M Supply and License Agreement, which is
attached as part of Appendix 1, Confidential Exhibit 1, to this Order. 

  

	O.	“DeKups IP and Tooling” means the DeKups Intellectual Property identified and described on Appendix 1, Exhibit 3, to this Order, and all tooling, molds, dies, and other equipment relating to the DeKups
Products to which ITW has or had any rights or interests (including reversionary) pursuant to the 3M Agreements or otherwise. The DeKups IP and Tooling are included in the Liquid Finishing Business Intellectual Property and are required to be
divested to the Commission-approved Acquirer pursuant to this Order. 

  

	P.	“DeVilbiss Powder Finishing Intellectual Property” means all Intellectual Property that is necessary for making, having made, using, offering for sale, selling, importing or exporting DeVilbiss Powder
Finishing Products, which are specifically identified and described on Appendix 2, Exhibit 1, to this Order. The DeVilbiss Powder Finishing Intellectual Property is included in the LFB Powder Finishing Intellectual Property and is required to be
divested to the Commission-approved Acquirer pursuant to this Order. 

  

	Q.	 “DeVilbiss Powder Finishing Products” means the powder finishing products and systems manufactured, sold or serviced under the DeVilbiss® trademarks or brand names prior to the Acquisition by Respondent ITW, and are specifically identified and described on Appendix 2, Exhibit 1, to this Order. 

  
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	R.	“Direct Cost” means an amount not to exceed the cost of labor (inclusive of benefits), material, travel, and other expenditures to the extent such costs are directly incurred to provide the relevant
assistance, support, or service. In the case of Respondent’s hourly employees who provide labor, the cost of labor shall not exceed the hourly wage rate, together with the prorated cost of benefits, for any such employees. In the case of
Respondent’s salaried employees who provide labor, the cost of labor shall not exceed the prorated base salary, together with the prorated cost of benefits, for any such employees. 

 

	S.	“Divested Ransburg Powder Finishing Intellectual Property” means the Ransburg Powder Finishing Intellectual Property including, but not limited to (but specifically excluding the Retained Ransburg Powder
Finishing Intellectual Property), the Intellectual Property identified and described on Appendix 3, Exhibit 2, to this Order. The Divested Ransburg Powder Finishing Intellectual Property is included in the LFB Powder Finishing Intellectual Property
and is required to be divested by Graco to the Commission-approved Acquirer pursuant to this Order. 

  

	T.	“Divestiture Agreement(s)” means any agreement(s) that receive the prior approval of the Commission between Respondent Graco (or between a Divestiture Trustee appointed pursuant to Paragraph V. of this Order)
and a Commission-approved Acquirer to purchase the Liquid Finishing Business Assets (including any related agreements, including but not limited to, a Graco License, an LFB License-Back, and any Transitional Services agreement), and all amendments,
exhibits, attachments, agreements, and schedules thereto that have been approved by the Commission. 

  

	U.	“Divestiture Date” means the date on which Respondent Graco (or the Divestiture Trustee) and a Commission-approved Acquirer consummate a transaction to divest, license, assign, grant, transfer, deliver, and
otherwise convey the Liquid Finishing Business Assets completely and as required by Paragraph II. (or Paragraph V.) of this Order. 

  

	V.	“Gema Powder Finishing Business” means the worldwide business of developing, assembling, manufacturing, distributing, selling, or servicing Gema Powder Finishing Products conducted prior to the Acquisition by
Respondent ITW, and as it has been operated by Respondent Graco since the Acquisition, including all business activities relating thereto, but only if and to the extent that such operations and activities are consistent with Graco’s obligations
pursuant to this Order and the Hold Separate. For the avoidance of doubt, the Gema Powder Finishing Business does not include the Liquid Finishing Business or the LFB Powder Finishing Business. For the further avoidance of doubt, the Gema Powder
Finishing Business was acquired by Respondent Graco in the Acquisition and is not required to be divested pursuant to this Order. 

  

	W.	“Gema Powder Finishing Products” means the powder finishing products and systems manufactured, sold, or serviced prior to the Acquisition by Respondent ITW, including, but not limited to, powder finishing
products and systems manufactured, sold, or serviced 

  
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under the Gema® trademark or brand name and any improvements or additions thereto specifically directed to developing, assembling, manufacturing,
distributing, selling, or servicing powder finishing systems and products; provided, however, that the Gema Powder Finishing Products do not include the Liquid Finishing Products or the LFB Powder Finishing Products. 

 

	X.	“Graco License” means: (i) a worldwide, fully paid-up, royalty-free, perpetual, irrevocable, transferrable license by Respondent Graco to the Commission-approved Acquirer under the Graco Retained
Intellectual Property, and (ii) such tangible embodiments of the licensed rights (including but not limited to physical and electronic copies) as may be necessary to enable the Commission-approved Acquirer to utilize the licensed rights. The
purpose of the Graco License is to assure the continued and unimpeded research, development, manufacture, use, import, export, distribution, offer to sell, and sale of the Liquid Finishing Products and the LFB Powder Finishing Products. The Graco
License for the Category 1 - Graco Retained Intellectual Property shall be sub- licensable, and on an exclusive basis (except as to Respondent Graco and except as to Graco’s right to have products made on its behalf by another under the Graco
Retained Intellectual Property), and shall convey the right to the Commission-approved Acquirer to enforce all rights in the Category 1 - Graco Retained Intellectual Property. The Graco License for the Category 2- Graco Retained Intellectual
Property shall include the Commission-approved Acquirer’s right to have products made on its behalf by another, and shall be on such further terms and conditions as receive the prior approval of the Commission. The Commission-approved Acquirer
shall not have the right to assign or transfer the Graco License without Graco’s prior written consent, which consent shall not be unreasonably withheld, except (i) if such assignment or transfer occurs in connection with a merger or the
sale or other disposition of all or substantially all of the assets or stock of the Liquid Finishing Business and/or the LFB Powder Finishing Business, and (ii) the assignee agrees in writing to be bound by all of the Commission-approved
Acquirer’s obligations under the Graco License. 

  

	Y.	“Graco Retained Intellectual Property” means (i) Category 1: the Retained Ransburg Powder Finishing Intellectual Property, which is specifically identified and described on Appendix 3, Exhibit 3 to
this Order, and (ii) Category 2: Intellectual Property included as an asset of the Gema Powder Finishing Business for which a license to the Commission- approved Acquirer is necessary to assure the continued and unimpeded operations of
the Liquid Finishing Business and the LFB Powder Finishing Business after the Divestiture Date. The Graco Retained Intellectual Property that must be licensed to the Commission- approved Acquirer pursuant to a Graco License is specifically
identified and described on Appendix 4 to this Order. Respondent Graco shall maintain the Category 1 - Graco Retained Intellectual Property in force, which includes paying maintenance fees for issued patents, diligently prosecuting any pending
patent applications, and maintaining the confidentiality of trade secrets; provided, however, that Respondent Graco may be relieved of the duty to maintain any portion of the Category 1 - Graco Retained Intellectual Property in force by
transferring the ownership of such portion of the Graco Retained Intellectual Property to the Commission-approved Acquirer. 

  

  
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	Z.	“Hold Separate” means the Order to Hold Separate and Maintain Assets issued by the Commission in this matter. 

  

	AA.	“Hold Separate Business” means the (i) Liquid Finishing Business Assets, (ii) Liquid Finishing Business, and (iii) LFB Powder Finishing Business. 

 

	BB.	“Intellectual Property” means all intellectual property and all associated rights thereto, including all of the following in any jurisdiction throughout the world: (i) all brand names, commercial names,
trade names, “doing business as” (d/b/a) names, registered and unregistered trademarks, trade dress, logos, slogans, service marks, internet domain names, internet website content (together with all translations, adaptions, derivations,
and combinations thereof), including all goodwill associated therewith, and all applications, registrations, and renewals in connection therewith; (ii) all patents, patent applications, and patent disclosures, together with all reissuances,
continuations, continuations-in-part, divisionals, revisions, extensions, and reexaminations thereof, and all inventions and discoveries (whether patentable or unpatentable and whether or not reduced to practice), and all improvements thereto, and
all rights to obtain and file for patents and registrations thereof; (iii) all copyrightable works, all registered and unregistered copyrights in both published works and unpublished works, and all applications, registrations, and renewals in
connection therewith; (iv) all mask works and all applications, registrations, and renewals in connection therewith; (v) all know-how, trade secrets, and confidential or proprietary information (including ideas, research and development,
formulas, compositions, manufacturing and production processes and techniques, tooling, molds, dies, equipment, engineering, technical data and information, blue prints, designs, drawings, specifications, protocols, quality control information,
customer and supplier lists, pricing and cost information, business and marketing plans and proposals, and all other data, technology, and plans); (vi) all computer software (including source code, executable code, data, databases, and related
documentation); (vii) all advertising and promotional materials; (viii) all other proprietary rights; (ix) all copies and tangible embodiments thereof (in whatever form or medium); and (x) all rights to sue and recover damages or
obtain injunctive relief for infringement, dilution, misappropriation, violation, or breach of any of the foregoing. 

  

	CC.	“LFB License-Back” means: (i) a fully paid-up, royalty-free, perpetual, irrevocable, transferable license by the Commission-approved Acquirer to Respondent Graco under the Licensed-Back Powder Finishing
Intellectual Property, and (ii) such tangible embodiments of the licensed rights (including but not limited to physical and electronic copies) as may be necessary to enable Respondent Graco to utilize the licensed rights. The LFB License-Back
shall be on such further terms and conditions as receive the prior approval of the Commission; provided, however, that the LFB License-Back shall be limited to the following field/application: powder finishing. 

  
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	DD.	“LFB Powder Finishing Business” means the worldwide business of developing, assembling, manufacturing, distributing, selling, or servicing the LFB Powder Finishing Products conducted prior to the Acquisition
by Respondent ITW, and as it has been and is required to be maintained since the Acquisition pursuant to the requirements of the Hold Separate, including all business activities relating thereto. 

 

	EE.	“LFB Powder Finishing Intellectual Property” means all DeVilbiss Powder Finishing Intellectual Property and all Divested Ransburg Powder Finishing Intellectual Property owned or licensed (as licensor or
licensee) by Respondent Graco (after the Acquisition) in which Graco has a proprietary interest, and all associated rights thereto, that were acquired by Graco in the Acquisition or that have been assigned, transferred, conveyed to, acquired, or
owned by Graco after the Acquisition, and that are required to be divested by Graco to the Commission-approved Acquirer pursuant to this Order. 

  

	FF.	“LFB Powder Finishing Products” means the DeVilbiss Powder Finishing Products and the Ransburg Powder Finishing Products, which are identified and described on Appendix 2, Exhibits 1 and 2, respectively, to
this Order. 

  

	GG.	“Licensed-Back Powder Finishing Intellectual Property” means the Divested Ransburg Powder Finishing Intellectual Property, which is specifically identified and described on Appendix 5 to this Order, and which
Graco is permitted to license back from the Commission-approved Acquirer consistent with the divestiture requirements of Paragraph II.A of this Order pursuant to an LFB License-Back. 

 

	HH.	“Liquid Finishing Business” means the worldwide business of developing, assembling, manufacturing, distributing, selling, or servicing Liquid Finishing Products conducted prior to the Acquisition by Respondent
ITW, and as it has been and is required to be maintained since the Acquisition pursuant to the requirements of the Hold Separate, including all business activities relating thereto. 

 

	II.	“Liquid Finishing Business Assets” means all of Graco’s rights, title, and interest in and to all property and assets, tangible and intangible, of every kind and description, wherever located, and any
improvements or additions thereto, relating to the Liquid Finishing Business or to the LFB Powder Finishing Business that were acquired by Graco in the Acquisition (except as otherwise provided in this Order) or that have been assigned, transferred,
conveyed to, or acquired or owned by Graco after the Acquisition pursuant to the 3M-ITW Settlement-Related Agreements or otherwise, and as they have been and are required to be maintained pursuant to the requirements of the Hold Separate, including
but not limited to: 

  

	 	1.	All real property interests (including fee simple interests and real property leasehold interests), including all easements, appurtenances, licenses, and permits, together with all buildings and other structures,
facilities, and improvements located thereon, owned, leased, or otherwise held; 

  
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	2.	All Tangible Personal Property, including any Tangible Personal Property removed from any location of the Liquid Finishing Business or of the LFB Powder Finishing Business since the date of the announcement of the
Acquisition, and not replaced, if such property was used in connection with the operation of the Liquid Finishing Business or of the LFB Powder Finishing Business prior to the Acquisition; 

 

	3.	All inventories, wherever located, including all finished product, work in process, raw materials, spare parts, and all other materials and supplies to be used or consumed in the production of finished products;

  

	4.	All (a) trade accounts receivable and other rights to payment from customers of Respondents and the full benefit of all security for such accounts or rights to payment, (b) all other accounts or notes
receivable by Respondents and the full benefit of all security for such accounts or notes, and (c) any claim, remedy, or other right related to any of the foregoing; 

 

	5.	All agreements and contracts (including, but not limited to, the 3M Agreements and other agreements and contracts with customers, distributors, suppliers, vendors, sales representatives, agents, licensees, and
licensors), purchase orders, sales orders, leases, mortgages, notes, bonds, and other binding commitments, whether written or oral, and all rights thereunder and related thereto; 

 

	6.	All consents, licenses, certificates, registrations, or permits issued, granted, given, or otherwise made available by or under the authority of any governmental body or pursuant to any legal requirement, and all
pending applications therefor or renewals thereof; 

  

	7.	All intangible rights and property, including all Liquid Finishing Business Intellectual Property and all LFB Powder Finishing Business Intellectual Property, and all going-concern value, goodwill, telephone, telecopy,
and e-mail addresses and listings; 

  

	8.	All Business Records; provided, however, that where documents or other materials included in the Business Records to be divested contain information: (a) that relates both to the Liquid Finishing Business
Assets to be divested and to Respondent Graco’s retained assets or other products or businesses and cannot be segregated in a manner that preserves the usefulness of the information as it relates to the Liquid Finishing Business Assets to be
divested; or (b) for which the relevant party has a legal obligation to retain the original copies, the relevant party shall be required to provide only copies or relevant excerpts of the documents and materials containing this information. In
instances where such copies are provided to the Commission-approved Acquirer, the relevant party shall provide the Commission-approved Acquirer access to original documents under circumstances where copies of the documents are insufficient for
evidentiary or regulatory purposes; 

  
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	 	9.	All insurance benefits, including rights and proceeds; 

  

	 	10.	All rights under warranties and guarantees, express or implied; and 

  

	 	11.	All rights relating to deposits and prepaid expenses, claims for refunds and rights to offset in respect thereof. 

Provided, however, that the Liquid Finishing Business Assets need not include any part of such assets that the
Commission-approved Acquirer determines it does not need, or that the Commission otherwise determines need not be divested, if the Commission approves the divestiture without such assets, and 

Provided further that the Liquid Finishing Business Assets shall not include the following (and
Respondent Graco is not required to divest any of the following to the Commission-approved Acquirer pursuant to this Order): 
  

	 	a.	The Graco Retained Intellectual Property (except insofar as the Liquid Finishing Business Assets shall include a Graco License to the Graco Retained Intellectual Property as provided in Paragraph II.D. of this Order);

  

	 	b.	Properties, tangible and intangible, used in or relating to the businesses engaged in by Respondent Graco (other than the Liquid Finishing Business and the LFB Powder Finishing Business), including but not limited to
the worldwide business of develop- ing, assembling, manufacturing, distributing, selling, or servicing liquid finishing sys- tems and products in which Respondent Graco was engaged prior to the Acquisition and in which Respondent Graco has continued
to be engaged since the Acquisition; and 

  

	 	c.	Assets and properties, tangible and intangible, relating to the Gema Powder Finishing Products and/or the Gema Powder Finishing Business, except for any Intellectual Property specifically identified on Appendix 6 or
Appendix 3, Exhibit 2, to this Order. 

  

	JJ.	“Liquid Finishing Business Employees” means any full-time, part-time, or contract employees of the Liquid Finishing Business or the LFB Powder Finishing Business who were employed at any time immediately prior
to the Acquisition through the Divestiture Date. 

  

	KK.	“Liquid Finishing Business Intellectual Property” means all Intellectual Property owned or licensed (as licensor or licensee) by Respondent Graco (after the Acquisition) in which Graco has a proprietary
interest, and all associated rights thereto, that were acquired by Graco in the Acquisition or that have been assigned, transferred, conveyed to, acquired, or owned by Graco after the Acquisition, or by Respondents pursuant to the 3M-ITW
Settlement-Related Agreements or otherwise (including, but not limited to, the DeKups IP and Tooling), and that relate to the Liquid Finishing Products and/or the Liquid 

  
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	 	Finishing Business, all of which is required to be divested by Graco to the Commission- approved Acquirer pursuant to this Order. The Liquid Finishing Business Intellectual Property includes, but is not limited to, the
Intellectual Property identified and described on Appendix 1, Exhibit 3, and Appendix 6. 

  

	LL.	“Liquid Finishing Products” means the liquid finishing products and systems manufactured, sold, or serviced prior to the Acquisition by Respondent ITW, including, but not limited to, liquid finishing products
and systems manufactured, sold, or serviced under the Binks®, DeVilbiss®, Ransburg®, and BGK Finishing Systems trademarks or brand
names, and any improvements or additions thereto specifically directed to developing, assembling, manufacturing, distributing, selling, or servicing liquid finishing systems and products. 

 

	MM.	“Person” means any individual, partnership, corporation, business trust, limited liability company, limited liability partnership, joint stock company, trust, unincorporated association, joint venture, other
entity, or a governmental body. 

  

	NN.	“Prospective Acquirer” means a Person that Respondent Graco (or a Divestiture Trustee) intends to submit as a Commission-approved Acquirer to the Commission for its prior approval pursuant to Paragraph II. (or
Paragraph V.) of this Order. 

  

	OO.	“Ransburg Powder Finishing Intellectual Property” means all Intellectual Property that is necessary for making, having made, using, offering for sale, selling, importing, or exporting Ransburg Powder Finishing
Products, including, but not limited to, the Intellectual Property specifically identified and described on Appendix 3, Exhibit 1, to this Order. 

  

	PP.	“Ransburg Powder Finishing Products” means the powder finishing products and systems manufactured, sold, or serviced under the Ransburg® trademarks or
brand names prior to the Acquisition by Respondent ITW, which are specifically identified and described on Appendix 2, Exhibit 2, to this Order. 

  

	QQ.	“Respondents” means Graco and ITW, individually and collectively. 

  

	RR.	“Retained Ransburg Powder Finishing Intellectual Property” means the Ransburg Powder Finishing Intellectual Property specifically identified and described on Appendix 3, Exhibit 3, to this Order. The Retained
Ransburg Powder Finishing Intellectual Property is not required to be divested by Graco to the Commission-approved Acquirer pursuant to Paragraph II.A. of this Order; provided, however, that Graco is required to enter into a Graco License
conveying rights in the Graco Retained Intellectual Property, including, but not limited to, the Retained Ransburg Powder Finishing Intellectual Property, to the Commission-approved Acquirer in accordance with the requirements of Paragraph II.D. of
this Order. 

  
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	SS.	“Tangible Personal Property” means all machinery, equipment, tools, furniture, office equipment, computer hardware, supplies, materials, vehicles, rolling stock, and other items of tangible personal property
(other than inventories) of every kind owned or leased (including, but not limited to, all tangible personal property included in the DeKups IP and Tooling), together with any express or implied warranty by the manufacturers or sellers or lessors of
any item or component part thereof and all maintenance records and other documents relating thereto. 

  

	TT.	“Transitional Services” means any transitional assistance, support, or services necessary to enable the Commission-approved Acquirer to continue the development, manufacturing, distribution, sales, and
services related to operation of the Liquid Finishing Business Assets, including, but not limited to, the provision of administrative services, consultation and advice, technical assistance, and training. 

II. 
 IT IS FURTHER
ORDERED that: 
  

	A.	Respondent Graco shall divest the Liquid Finishing Business Assets, absolutely and in good faith, at no minimum price, as an on-going business, no later than 180 days after the date this Order becomes final, to a
Commission-approved Acquirer, and only in a manner (and pursuant to a Divestiture Agreement with the Commission-approved Acquirer) that receives the prior approval of the Commission; provided, however, that nothing in this Order shall prevent
Respondent Graco from entering into an LFB License-Back, subject to the prior approval of the Commission, with the Commission-approved Acquirer. 

  

	B.	No later than the Divestiture Date, Respondent Graco shall secure all consents, assignments, waivers, licenses, certificates, registrations, permits, and other authorizations from all Persons that are necessary for the
divestiture and operation of the Liquid Finishing Business Assets to the Commission-approved Acquirer; provided, however, that Respondent Graco may satisfy this requirement by certifying that the Commission-approved Acquirer has executed
appropriate agreements directly with each of the relevant Persons. 

  

	C.	In the event Respondent Graco is unable to obtain any consent(s), assignment(s), waiver(s), license(s), certificate(s), registration(s), permit(s), or other authorizations necessary for the divestiture and/or operation
of the Liquid Finishing Business Assets from any Person, Respondent Graco shall: 

  

	 	1.	Provide such assistance as the Commission-approved Acquirer may reasonably request in its efforts to obtain a comparable license, certificate, registration, permit, or other authorization; and/or 

 

	 	2.	With the acceptance of the Commission-approved Acquirer and the prior approval of the Commission, substitute equivalent assets or arrangements. 

  
 12 

	D.	No later than the Divestiture Date, Respondent Graco shall grant a Graco License under the Graco Retained Intellectual Property to the Commission-approved Acquirer in connection with the Liquid Finishing Business Assets
as divested pursuant to this Order, and only in a manner (and pursuant to a Divestiture Agreement with the Commission- approved Acquirer) that receives the prior approval of the Commission. Respondent Graco is not required to make any
representations or warranties with respect to the ownership, existence, or maintenance of the Category 2 – Graco Retained Intellectual Property in the Divestiture Agreement. 

 

	E.	Respondent Graco: 

  

	 	1.	shall not join, file, prosecute, or maintain any suit, in law or equity, or take any administrative action, either directly or indirectly through a third party (including assignees, transferees, or licensees), against
the Commission-approved Acquirer or any of its customers or affiliates (including integrators, distributors, licensees, manufacturers, and suppliers), assigns or successors in interest, under or with regard to any Intellectual Property acquired by
Respondent Graco in the Acquisition or developed or otherwise obtained by the Hold Separate Business during the Hold Separate Period, and owned or licensed by Respondent Graco relating to the Gema Powder Finishing Business or to the Liquid Finishing
Business Assets as of the Divestiture Date, if such suit or action would, or would have the potential to, interfere with the Commission-approved Acquirer’s freedom to practice in the research, development, manufacture, use, import, export,
distribution, offer to sell, or sale of any Liquid Finishing Products or LFB Powder Finishing Products; and 

  

	 	2.	shall not (i) assert, directly or indirectly through a third party, any Intellectual Property rights acquired by Respondent Graco in the Acquisition against the Commission- approved Acquirer or any of its customers
or affiliates, or assigns or successors in interest, if such assertion would, or would have the potential to, interfere with the Commission-approved Acquirer’s freedom to practice in the research, development, manufacture, use, import, export,
distribution, offer to sell, or sale of any Liquid Finishing Products or LFB Powder Finishing Products; or (ii) seek to challenge or invalidate any rights under the Liquid Finishing Business Intellectual Property or the LFB Powder Finishing
Intellectual Property in a civil action or administrative proceeding, to the extent that the Commission-approved Acquirer or any of its customers or affiliates, or assigns or successors in interest, exercise the rights divested by, expressly granted
by, or that are required to be granted by Graco pursuant to the requirements of this Order; 

 provided,
however, that the scope of the prohibitions in sub-Paragraphs II.E.1 and II.E.2 of this Order shall be limited for the DeVilbiss Powder Finishing Products to South America and for the Ransburg Powder Finishing Products to transportation and
related supply chain markets; and 

  
 13 

	 	3.	shall include a covenant not to sue or take any other action effecting the foregoing prohibitions in sub-Paragraphs II.E.1 and II.E.2 of this Order in any Divestiture Agreement related to the Liquid Finishing Business
Assets; 

 provided, however, that Respondent Graco may, subject to the prior approval of the
Commission, receive a covenant not to sue from the Commission-approved Acquirer not to assert against the Gema Powder Finishing Business any Intellectual Property that is divested by Respondent Graco to the Commission-approved Acquirer pursuant to
this Order; and 
 provided further that any such covenant not to sue the Gema Powder Finishing Business received by
Respondent Graco from the Commission-approved Acquirer shall be limited to the following field/application: powder finishing. 
  

	F.	At the request of the Commission-approved Acquirer, pursuant to an agreement that receives the prior approval of the Commission, Respondent Graco shall, for a period not to exceed twelve (12) months from the
Divestiture Date, or as otherwise approved by the Commission, provide Transitional Services to the Commission-approved Acquirer: 

  

	 	1.	Sufficient to enable the Commission-approved Acquirer to operate the divested assets and business in substantially the same manner as they were operated prior to the Acquisition; and 

 

	 	2.	At substantially the same level and quality as such services were provided by Respondents in connection with the operation of the divested assets and business prior to the Acquisition. 

Provided, however, that Respondent Graco shall not (i) require the Commission-approved Acquirer to pay
compensation for Transitional Services that exceeds the Direct Cost of providing such goods and services, (ii) terminate its obligation to provide Transitional Services because of a material breach by the Commission-approved Acquirer of any
agreement to provide such assistance, in the absence of a final order of a court of competent jurisdiction, except if Respondent Graco is unable to provide such services due to such material breach, or (iii) seek to limit the damages (such as
indirect, special, and consequential damages) which a Commission-approved Acquirer would be entitled to receive in the event of Respondent Graco’s breach of any agreement to provide Transitional Services. 

 

	G.	Respondent ITW shall provide the Commission-approved Acquirer, at the request of the Commission-approved Acquirer, the transition and support services Respondent ITW has agreed to provide to Respondent Graco in the
Asset Purchase Agreement on the terms and subject to the conditions contemplated by the Asset Purchase Agreement. 

  

	H.	Respondent Graco shall provide the Commission-approved Acquirer with the opportunity to identify, recruit, and employ any Liquid Finishing Business Employee in conformance with the following: 

  
 14 

	 	1.	No later than ten (10) days after a request from a Prospective Acquirer, or staff of the Commission, Respondents shall provide the Prospective Acquirer with the following information for each Liquid Finishing
Business Employee, as and to the extent permitted by law: 

  

	 	a.	name, job title or position, date of hire, and effective service date; 

	 	b.	a specific description of the employee’s responsibilities; 

	 	c.	the base salary or current wages; 

	 	d.	the most recent bonus paid, aggregate annual compensation for Respondent ITW’s last fiscal year, and current target or guaranteed bonus, if any; 

	 	e.	employment status (i.e., active or on leave or disability; full-time or part- time); 

	 	f.	any other material terms and conditions of employment in regard to such employee that are not otherwise generally available to similarly-situated employees; and 

	 	g.	at the Prospective Acquirer’s option, copies of all employee benefit plans and summary plan descriptions (if any) applicable to the relevant Liquid Finishing Business Employee. 

 

	 	2.	No later than thirty (30) days before the Divestiture Date, after a request from a Prospective Acquirer, Respondent Graco shall provide the Prospective Acquirer with an opportunity (i) to meet, personally and
outside the presence or hearing of any employee or agent of any Respondent, with any Liquid Finishing Business Employee for the purpose of discussing potential employment, (ii) to inspect the personnel files and other documentation relating to
any such employee, to the extent permissible under applicable laws, and (iii) to make offers of employment to any Liquid Finishing Business Employee. 

  

	 	3.	Respondent Graco shall (i) not interfere, directly or indirectly, with the hiring or employing by the Prospective Acquirer of any Liquid Finishing Business Employee, (ii) not offer any incentive to any Liquid
Finishing Business Employee to decline employment with the Prospective Acquirer, (iii) not make any counteroffer to any Liquid Finishing Business Employee who receives a written offer of employment from the Prospective Acquirer; provided,
however, that nothing in this Order shall be construed to require Respondent Graco to terminate the employment of any employee or prevent Respondent Graco from continuing the employment of any employee; (iv) remove any impediments within
the control of Respondent Graco that may deter any Liquid Finishing Business Employee from accepting employment with the Prospective Acquirer, including, but not limited to, any non-compete or confidentiality provisions of employment or other
contracts with Respondent Graco that would affect the ability of such employee to be employed by the Prospective Acquirer, and (v) not otherwise interfere with the recruitment of any Liquid Finishing Business Employee by the Prospective
Acquirer. 

  
 15 

	I.	Until the Divestiture Date, Respondent Graco shall provide each Liquid Finishing Business Employee with reasonable financial incentives to continue in his or her position consistent with past practices and/or as may be
necessary to preserve the marketability, viability, and competitiveness of the Liquid Finishing Business Assets pending divestiture. Such incentives shall include employee benefits, including regularly scheduled raises, bonuses, vesting of current
and accrued retirement benefits (as permitted by law), on the same basis as provided under the Asset Purchase Agreement to other employees hired by Respondent Graco in the Acquisition, and such additional incentives as may be necessary to assure the
continuation and to prevent any diminution of the viability, marketability, and competitiveness of the Liquid Finishing Business Assets until the Divestiture Date, and as may otherwise be necessary to achieve the purposes of this Order and the Hold
Separate. 

  

	J.	For a period of two (2) years after the Divestiture Date, Respondent Graco shall not, directly or indirectly, solicit, induce, or attempt to solicit or induce any Liquid Finishing Business Employee who has accepted
an offer of employment with the Commission- approved Acquirer, or who is employed by the Commission-approved Acquirer, to terminate his or her employment relationship with the Commission-approved Acquirer; provided, however, Respondent Graco
may: 

  

	 	1.	Advertise for employees in newspapers, trade publications, or other media, or engage recruiters to conduct general employee search activities, so long as these actions are not targeted specifically at any Liquid
Finishing Business Employees; and 

  

	 	2.	Hire Liquid Finishing Business Employees who apply for employment with Respondent Graco, so long as such individuals were not solicited by Respondent Graco in violation of this paragraph; provided further, that
this sub-Paragraph shall not prohibit Respondent Graco from making offers of employment to or employing any Liquid Finishing Business Employees if the Commission- approved Acquirer has notified Respondent Graco in writing that the
Commission-approved Acquirer does not intend to make an offer of employment to that employee, or where such an offer has been made and the employee has declined the offer, or where the individual’s employment has been terminated by the
Commission-approved Acquirer. 

  

	K.	No later than the Divestiture Date, Respondents shall assign, transfer, convey, and divest all rights, title and interest in and to the 3M Agreements, the DeKups Products, and the DeKups IP and Tooling (including upon
termination of the 3M Agreements) to the Liquid Finishing Business and/or the Commission-approved Acquirer pursuant to the 3M-ITW Settlement-Related Agreements or otherwise; provided, however, that in the event Respondent ITW obtains
ownership, possession, or control of any rights, title or interest in or to the 3M Agreements, the DeKups Products, and/or the DeKups IP and Tooling after the Divestiture Date, then Respondent ITW shall immediately transfer, convey, and deliver all
such rights, title, and interest, absolutely and in good faith, to the Liquid Finishing Business and/or the Commission-approved Acquirer. 

  
 16 

	L.	The purpose of the divestiture of the Liquid Finishing Business Assets is to ensure the continuation of the Liquid Finishing Business Assets as an ongoing, viable business operating in the same relevant markets in which
such assets were competing at the time of the announcement of the Acquisition by Respondents, and to remedy the lessening of competition resulting from the Acquisition as alleged in the Commission’s Complaint. 

III. 
 IT IS FURTHER
ORDERED that: 
  

	A.	Respondents shall (i) keep confidential and not disclose (including with respect to Respondents’ employees) and (ii) not use for any reason or purpose, any Confidential Business Information pertaining to
the Liquid Finishing Business, the LFB Powder Finishing Business, and the Liquid Finishing Business Assets; provided, however, that the Respondents may disclose or use such Confidential Business Information: 

 

	 	1.	In the course of performing their obligations as permitted under this Order or the Hold Separate, including as necessary to effect the marketing and divestiture of the Liquid Finishing Business Assets pursuant to
Paragraph II. of this Order and the provision of Transitional Services; provided further, that Respondents’ employees who provide support services under the Hold Separate or Transitional Services under the Divestiture Agreement(s), or
who staff the Hold Separate Business, shall be deemed to be performing obligations under this Order or the Hold Separate. 

  

	 	2.	In the course of performing their obligations under the Divestiture Agreement(s); 

  

	 	3.	To enforce the terms of the Divestiture Agreement(s) or to prosecute or defend against any dispute or legal proceeding; 

  

	 	4.	To comply with financial reporting requirements, obtain legal advice, defend legal claims, enforce actions threatened or brought against the Liquid Finishing Business, the LFB Powder Finishing Business, or the Liquid
Finishing Business Assets, or as required by applicable law, regulations, and other legal requirements (including in connection with tax returns, reports required by securities laws and payroll, benefits, or personnel reports or information) or in
overseeing compliance with policies and standards concerning health, safety, and environmental aspects of the operation of the Liquid Finishing Business and the LFB Powder Finishing Business and the integrity of the Liquid Finishing Business and LFB
Powder Finishing Business financial controls; 

  

	 	5.	To Respondent Graco’s lenders, auditors, attorneys, and financial advisors; and 

  
 17 

	 	6.	As otherwise permitted by the Commission staff, this Order, the Hold Separate, or the Divestiture Agreement(s). 

  

	B.	If the disclosure or use of any Confidential Business Information is permitted to Respondents’ employees or to any other Person under Paragraph III.A. of this Order, then Respondents shall limit such information
(i) only to those employees or other Persons who require such information for the purposes permitted under Paragraph III.A., (ii) only to the extent such information is required, and (iii) only after such employees or other Persons
have signed an agreement in writing to maintain the confidentiality of such information. 

  

	C.	Respondents shall enforce the terms of this Paragraph III. as to their employees and any other Person and take such action as is necessary to cause each of their employees and any other Person to comply with the terms
of this Paragraph III., including implementation of access and data controls, training of their employees, and all other actions that Respondents would take to protect their own trade secrets and proprietary information. 

IV. 
 IT IS FURTHER
ORDERED that: 
  

	A.	The Divestiture Agreement(s) shall not limit or contradict, or be construed to limit or contradict, the terms of this Order, it being understood that nothing in this Order shall be construed to reduce any rights or
benefits of the Commission-approved Acquirer or to reduce any obligations of the Respondents under such agreements. 

  

	B.	The Divestiture Agreement(s) shall be incorporated by reference into this Order and made a part hereof. 

  

	C.	Respondent Graco shall comply with all provisions of the Divestiture Agreement(s), and any breach by Respondent Graco of any term of such agreement shall constitute a violation of this Order. If any term of a
Divestiture Agreement varies from the terms of this Order (“Order Term”), then to the extent that Respondent Graco cannot fully comply with both terms, the Order Term shall determine Respondent Graco’s obligations under this Order.
Any failure by Respondent Graco to comply with any term of a Divestiture Agreement shall constitute a failure to comply with this Order. 

  

	D.	Respondent Graco shall not modify or amend any of the terms of the Divestiture Agreement(s) without the prior approval of the Commission, except as otherwise provided in Rule 2.41(f)(5) of the Commission’s Rules of
Practice and Procedure, 16 C.F.R. § 2.41(f)(5). Notwithstanding any paragraph, section, or other provision of the Divestiture Agreement, any modification of the Divestiture Agreement without the prior approval of the Commission, or as otherwise
provided in Rule 2.41(f)(5), shall constitute a failure to comply with this Order. 

  
 18 

 V. 

IT IS FURTHER ORDERED that: 
  

	A.	If Respondent Graco has not divested the Liquid Finishing Business Assets and otherwise fully complied with its obligations as required by Paragraphs II.A.-I., of this Order, the Commission may appoint a trustee
(“Divestiture Trustee”) to divest the Liquid Finishing Business Assets, grant a Graco License, and/or perform Respondent Graco’s other obligations in a manner that satisfies the requirements of this Order. The Divestiture Trustee
appointed pursuant to this Paragraph may be the same Person appointed as Hold Separate Trustee pursuant to the relevant provisions of the Hold Separate entered in this matter. 

 

	B.	In the event that the Commission or the Attorney General brings an action pursuant to § 5(l) of the Federal Trade Commission Act, 15 U.S.C. § 45(l), or any other statute enforced by the Commission, Respondent
Graco shall consent to the appointment of a Divestiture Trustee in such action to divest the relevant assets and grant the relevant license in accordance with the terms of this Order. Neither the appointment of a Divestiture Trustee nor a decision
not to appoint a Divestiture Trustee under this Paragraph shall preclude the Commission or the Attorney General from seeking civil penalties or any other relief available to it, including a court-appointed Divestiture Trustee, pursuant to §
5(l) of the Federal Trade Commission Act, or any other statute enforced by the Commission, for any failure by the Respondents to comply with this Order. 

  

	C.	The Commission shall select the Divestiture Trustee, subject to the consent of Respondent Graco, which consent shall not be unreasonably withheld. The Divestiture Trustee shall be a person with experience and expertise
in acquisitions and divestitures. If Respondent Graco has not opposed, in writing, including the reasons for opposing, the selection of any proposed Divestiture Trustee within ten (10) days after notice by the staff of the Commission to
Respondent Graco of the identity of any proposed Divestiture Trustee, Respondent Graco shall be deemed to have consented to the selection of the proposed Divestiture Trustee. 

 

	D.	Within ten (10) days after appointment of a Divestiture Trustee, Respondent Graco shall execute a trust agreement that, subject to the prior approval of the Commission, transfers to the Divestiture Trustee all
rights and powers necessary to permit the Divestiture Trustee to effect the relevant divestiture or transfer required by this Order. 

  

	E.	If a Divestiture Trustee is appointed by the Commission or a court pursuant to this Order, Respondent Graco shall consent to the following terms and conditions regarding the Divestiture Trustee’s powers, duties,
authority, and responsibilities: 

  
 19 

	 	1.	Subject to the prior approval of the Commission, the Divestiture Trustee shall have the exclusive power and authority to divest, assign, grant, license, transfer, deliver, or otherwise convey the relevant assets that
are required by this Order to be divested, assigned, granted, licensed, transferred, delivered, or otherwise conveyed. 

  

	 	2.	The Divestiture Trustee shall have twelve (12) months from the date the Commission approves the trust agreement described herein to accomplish the divestiture and/or other obligations required by this Order, which
shall be subject to the prior approval of the Commission. If, however, at the end of the twelve (12) month period, the Divestiture Trustee has submitted a plan of divestiture or compliance with other obligations, or believes that the
divestiture or compliance with other obligations can be achieved within a reasonable time, the divestiture period may be extended by the Commission, or, in the case of a court-appointed Divestiture Trustee, by the court; provided, however,
that the Commission may extend the period only two (2) times. 

  

	 	3.	Subject to any demonstrated legally recognized privilege, the Divestiture Trustee shall have full and complete access to the personnel, books, records, and facilities related to the relevant assets that are required to
be divested, assigned, granted, licensed, delivered, or otherwise conveyed by this Order and to any other relevant information, as the Divestiture Trustee may request. Respondent Graco shall develop such financial or other information as the
Divestiture Trustee may request and shall cooperate with the Divestiture Trustee. Respondent Graco shall take no action to interfere with or impede the Divestiture Trustee’s accomplishment of the divestiture. Any delays in divestiture caused by
Respondent Graco shall extend the time for divestiture under this Paragraph V in an amount equal to the delay, as determined by the Commission or, for a court-appointed Divestiture Trustee, by the court. 

 

	 	4.	The Divestiture Trustee shall use commercially reasonable best efforts to negotiate the most favorable price and terms available in each contract that is submitted to the Commission, subject to Respondent Graco’s
absolute and unconditional obligation to divest expeditiously and at no minimum price. The divestiture shall be made in the manner and to a Commission-approved Acquirer as required by this Order; provided, however, if the Divestiture Trustee
receives bona fide offers from more than one acquiring entity, and if the Commission determines to approve more than one such acquiring entity, the Divestiture Trustee shall divest to the acquiring entity selected by Respondent Graco from among
those approved by the Commission; provided further, however, that Respondent Graco shall select such entity within five (5) days of receiving notification of the Commission’s approval. 

` 

  
 20 

	 	5.	The Divestiture Trustee shall serve, without bond or other security, at the cost and expense of Respondent Graco, on such reasonable and customary terms and conditions as the Commission or a court may set. The
Divestiture Trustee shall have the authority to employ, at the cost and expense of Respondent Graco, such consultants, accountants, attorneys, investment bankers, business brokers, appraisers, and other representatives and assistants as are
necessary to carry out the Divestiture Trustee’s duties and responsibilities. The Divestiture Trustee shall account for all monies derived from the divestiture and all expenses incurred. After approval by the Commission and, in the case of a
court-appointed Divestiture Trustee, by the court, of the account of the Divestiture Trustee, including fees for the Divestiture Trustee’s services, all remaining monies shall be paid at the direction of Respondent Graco, and the Divestiture
Trustee’s power shall be terminated. The compensation of the Divestiture Trustee shall be based at least in significant part on a commission arrangement contingent on the divestiture of all of the relevant assets that are required to be
divested by this Order. 

  

	 	6.	Respondent Graco shall indemnify the Divestiture Trustee and hold the Divestiture Trustee harmless against any losses, claims, damages, liabilities, or expenses arising out of, or in connection with, the performance of
the Divestiture Trustee’s duties, including all reasonable fees of counsel and other expenses incurred in connection with the preparation for, or defense of, any claim, whether or not resulting in any liability, except to the extent that such
losses, claims, damages, liabilities, or expenses result from gross negligence or willful misconduct by the Divestiture Trustee. For purposes of this Paragraph V.E.6., the term “Divestiture Trustee” shall include all Persons retained by
the Divestiture Trustee pursuant to Paragraph V.E.5. of this Order. 

  

	 	7.	The Divestiture Trustee shall have no obligation or authority to operate or maintain the relevant assets required to be divested by this Order. 

 

	 	8.	The Divestiture Trustee shall report in writing to Respondent Graco and to the Commission every thirty (30) days concerning the Divestiture Trustee’s efforts to accomplish the divestiture. 

 

	 	9.	Respondents may require the Divestiture Trustee and each of the Divestiture Trustee’s consultants, accountants, attorneys, and other representatives and assistants to sign a customary confidentiality agreement;
provided, however, such agreement shall not restrict the Divestiture Trustee from providing any information to the Commission. 

  

	F.	If the Commission determines that a Divestiture Trustee has ceased to act or failed to act diligently, the Commission may appoint a substitute Divestiture Trustee in the same manner as provided in this Paragraph V.

  
 21 

	G.	The Commission or, in the case of a court-appointed Divestiture Trustee, the court, may on its own initiative or at the request of the Divestiture Trustee issue such additional orders or directions as may be necessary
or appropriate to accomplish the divestiture required by this Order. 

 VI. 

IT IS FURTHER ORDERED that: 
  

	A.	Within thirty (30) days after the date this Order becomes final and every thirty (30) days thereafter until Respondents have fully complied with the provisions of Paragraphs II and V of this Order, Respondents
shall submit to the Commission a verified written report setting forth in detail the manner and form in which they intend to comply, are complying, and have complied with this Order, and the Hold Separate. Respondent Graco shall include in its
compliance reports, among other things that are required from time to time, a full description of the efforts being made to comply with this Order and with the Hold Separate, including a description of all substantive contacts or negotiations
relating to the divestiture and approval, and the identities of all parties contacted. Respondents shall include in their compliance reports copies, other than of privileged materials, of all written communications to and from such parties, all
internal memoranda, and all reports and recommendations concerning the divestiture and approval, and, as applicable, a statement that the divestiture approved by the Commission has been accomplished, including a description of the manner in which
Respondent Graco completed such divestiture and the date the divestiture was accomplished. 

  

	B.	One (1) year after the date this Order becomes final, Respondents, and annually thereafter for the next five (5) years on the anniversary of the date this Order becomes final, and at such other times as the
Commission may request, Respondent Graco shall file a verified written report with the Commission setting forth in detail the manner and form in which it has complied and is complying with the Order and any Divestiture Agreement. 

VII. 
 IT IS FURTHER
ORDERED that Respondent Graco shall notify the Commission at least thirty (30) days prior to: 
  

	A.	Any proposed dissolution of Respondent Graco; 

  

	B.	Any proposed acquisition, merger, or consolidation of Respondent Graco; or 

  

	C.	Any other change in Respondent Graco, including, but not limited to, assignment and the creation or dissolution of subsidiaries, if such change might affect compliance obligations arising out of this Order.

  
 22 

 VIII. 

IT IS FURTHER ORDERED that, for the purpose of determining or securing compliance with this Order, subject to any legally recognized
privilege, upon written request and five (5) days’ notice to the relevant Respondent, with respect to any matter contained in this Order, the relevant Respondent shall permit any duly authorized representative of the Commission: 

 

	A.	Access, during business office hours of the relevant Respondent(s) and in the presence of counsel, to all facilities and access to inspect and copy all books, ledgers, accounts, correspondence, memoranda, and all other
records and documents in the possession or under the control of the relevant Respondent(s) related to compliance with the Consent Agreement and/or the Orders, which copying services shall be provided by such Respondent(s) at the request of the
authorized representative(s) of the Commission and at the expense of such Respondent(s); and 

  

	B.	Without restraint or interference from such Respondent(s), to interview officers, directors, or employees of such Respondent(s), who may have counsel present. 

IX. 
 IT IS FURTHER
ORDERED that this Order shall terminate on October 6, 2024. 
 By the Commission, Commissioner Ohlhausen abstaining, and
Commissioner Wright and Commissioner McSweeny not participating. 
 Donald S. Clark 

Secretary 
 SEAL: 

ISSUED: October 6, 2014 
 ATTACHMENTS

 [Confidential Exhibits Redacted From the Public Record Version, 

But Incorporated By Reference] 
 APPENDIX
1: DeKups Products and 3M Agreements  
 CONFIDENTIAL Exhibit 1: The 3M Agreements 

CONFIDENTIAL Exhibit 2: 3M-ITW Settlement-Related Agreements 

Exhibit 3: DeKups Intellectual Property Transferred Pursuant to 3M-ITW Settlement-Related Agreements 

APPENDIX 2: LFB Powder Finishing Products 

Exhibit 1: DeVilbiss Powder Finishing Products 

Exhibit 2: Ransburg Powder Finishing Products 

  
 23 

 APPENDIX 3: Ransburg Powder Finishing Intellectual Property 

Exhibit 1:  Ransburg Powder Finishing Intellectual Property 

Exhibit 2:  Divested Ransburg Powder Finishing Intellectual Property 

Exhibit 3:  Retained Ransburg Powder Finishing Intellectual Property 

APPENDIX 4:  Graco Retained Intellectual Property 

APPENDIX 5:  Licensed-Back Powder Finishing Intellectual Property 

APPENDIX 6:  Liquid Finishing Business Intellectual Property 

Exhibit 1:  Patents and Patent Applications 

CONFIDENTIAL Exhibits 2 and 2A: Unpublished and Unfiled Patent Applications  

CONFIDENTIAL Exhibit 3: Abandoned or Expired Patents 

Exhibit 4:  Trademarks 

Exhibit 5:  Inactive Trademarks 

  
 24EX-4.1

 EXHIBIT 4.1 

 
  

AMENDED AND RESTATED TRUST AGREEMENT 
 between 
 CALIFORNIA REPUBLIC FUNDING, LLC 

and 

[                    ],

 as Owner Trustee 
 Amended and Restated as of [                    ], 20[  ] 

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
		
	 ARTICLE I DEFINITIONS
	  	 	1	  
		
	 Section 1.01    Capitalized Terms
	  	 	1	  
	 Section 1.02    Other Definitional Provisions
	  	 	2	  
		
	 ARTICLE II ORGANIZATION
	  	 	3	  
		
	 Section 2.01    Name
	  	 	3	  
	 Section 2.02    Office
	  	 	3	  
	 Section 2.03    Purposes and Powers
	  	 	3	  
	 Section 2.04    Appointment of Owner Trustee
	  	 	4	  
	 Section 2.05    Initial Capital Contribution of Trust Estate
	  	 	4	  
	 Section 2.06    Declaration of Trust
	  	 	4	  
	 Section 2.07    Liability of the Depositor and Certificateholders
	  	 	4	  
	 Section 2.08    Title to Trust Property
	  	 	5	  
	 Section 2.09    Situs of Trust
	  	 	5	  
	 Section 2.10    Representations, Warranties and Covenants of the Depositor
	  	 	5	  
	 Section 2.11    Federal Income Tax Matters
	  	 	6	  
		
	 ARTICLE III CERTIFICATES AND TRANSFER OF INTERESTS
	  	 	6	  
		
	 Section 3.01    Initial Ownership
	  	 	6	  
	 Section 3.02    The Certificates
	  	 	6	  
	 Section 3.03    Execution, Authentication and Delivery of Certificates
	  	 	7	  
	 Section 3.04    Registration of Transfer and Exchange of Certificates
	  	 	7	  
	 Section 3.05    Certificate Transfer Restrictions
	  	 	9	  
	 Section 3.06    Mutilated, Destroyed, Lost or Stolen Certificates
	  	 	10	  
	 Section 3.07    Persons Deemed Owners
	  	 	10	  
	 Section 3.08    Access to List of Certificateholders’ Names and Addresses
	  	 	10	  
	 Section 3.09    Book-Entry Certificates
	  	 	11	  
	 Section 3.10    Notices to Depository
	  	 	11	  
	 Section 3.11    Definitive Certificates
	  	 	11	  
	 Section 3.12    Maintenance of Office or Agency
	  	 	12	  
	 Section 3.13    Appointment of Paying Agent
	  	 	12	  
	 Section 3.14    Indemnification
	  	 	13	  
	 Section 3.15    No Recourse
	  	 	13	  
	 Section 3.16    Certificates Nonassessable and Fully Paid
	  	 	13	  
		
	 ARTICLE IV ACTIONS BY OWNER TRUSTEE AND CERTIFICATEHOLDERS
	  	 	13	  
		
	 Section 4.01    Prior Notice with Respect to Certain Matters
	  	 	13	  
	 Section 4.02    Standards of Operations; Separateness of the Issuer and the Depositor
	  	 	15	  
	 Section 4.03    Action by Certificateholders with Respect to Certain Matters
	  	 	16	  

  
 i 

					
	 Section 4.04    Action by Certificateholders with Respect to Bankruptcy
	  	 	16	  
	 Section 4.05    Restrictions on Certificateholders’ Power
	  	 	17	  
	 Section 4.06    Majority Control
	  	 	17	  
	 Section 4.07    Rule 144A
	  	 	17	  
		
	 ARTICLE V APPLICATION OF TRUST FUNDS; CERTAIN DUTIES
	  	 	18	  
		
	 Section 5.01    Establishment of Certificate Distribution Account
	  	 	18	  
	 Section 5.02    Application of Trust Funds
	  	 	18	  
	 Section 5.03    Method of Payment
	  	 	19	  
	 Section 5.04    Accounting and Reports to Certificateholders, the Internal Revenue Service and Others
	  	 	20	  
	 Section 5.05    Signature on Returns, Tax Matters Partner
	  	 	20	  
	 Section 5.06    Sarbanes-Oxley Act
	  	 	20	  
	 Section 5.07    Optional Purchase
	  	 	20	  
		
	 ARTICLE VI AUTHORITY AND DUTIES OF OWNER TRUSTEE
	  	 	21	  
		
	 Section 6.01    Duties of Owner Trustee
	  	 	21	  
	 Section 6.02    Rights of Owner Trustee
	  	 	22	  
	 Section 6.03    Acceptance of Trusts and Duties
	  	 	22	  
	 Section 6.04    Action upon Instruction by Certificateholders
	  	 	24	  
	 Section 6.05    Furnishing of Documents
	  	 	24	  
	 Section 6.06    Representations and Warranties of Owner Trustee
	  	 	24	  
	 Section 6.07    Reliance; Advice of Counsel
	  	 	25	  
	 Section 6.08    Owner Trustee May Own Certificates and Notes
	  	 	26	  
	 Section 6.09    Compensation and Indemnity
	  	 	26	  
	 Section 6.10    Replacement of Owner Trustee
	  	 	26	  
	 Section 6.11    Merger or Consolidation of Owner Trustee
	  	 	27	  
	 Section 6.12    Appointment of Co-Trustee or Separate Trustee
	  	 	28	  
	 Section 6.13    Eligibility Requirements for Owner Trustee
	  	 	29	  
	 Section 6.14    Withholding Certificate
	  	 	29	  
	 Section 6.15    Notice to Administrator of Repurchase Requests
	  	 	29	  
		
	 ARTICLE VII DISSOLUTION / TERMINATION
	  	 	30	  
		
	 Section 7.01    Dissolution / Termination
	  	 	30	  
		
	 ARTICLE VIII AMENDMENTS
	  	 	30	  
		
	 Section 8.01    Amendments Without Consent of Certificateholders
	  	 	30	  
	 Section 8.02    Amendments With Consent of the Noteholders and the Certificateholders
	  	 	31	  
	 Section 8.03    Form of Amendments
	  	 	32	  
		
	 ARTICLE IX MISCELLANEOUS
	  	 	32	  
		
	 Section 9.01    No Legal Title to Trust Estate
	  	 	32	  
	 Section 9.02    Limitations on Rights of Others
	  	 	33	  

  
 ii 

					
	 Section 9.03    Notices
	  	 	33	  
	 Section 9.04    Severability of Provisions
	  	 	33	  
	 Section 9.05    Counterparts
	  	 	33	  
	 Section 9.06    Successors and Assigns
	  	 	33	  
	 Section 9.07    Nonpetition Covenant
	  	 	33	  
	 Section 9.08    No Recourse
	  	 	34	  
	 Section 9.09    Headings
	  	 	34	  
	 Section 9.10    Governing Law
	  	 	34	  
	 Section 9.11    Indemnification by and Reimbursement of the Servicer
	  	 	34	  
	 Section 9.12    Submission to Jurisdiction
	  	 	34	  
		
	 ARTICLE X REGULATION AB
	  	 	35	  
		
	 Section 10.01    The Intent of the Parties; Reasonableness
	  	 	35	  
	 Section 10.02    Representations and Warranties
	  	 	35	  
	 Section 10.03    Information to Be Provided by the Owner Trustee
	  	 	35	  
		
	Exhibit A        Form of Certificate	  	 	A-1	  
	Exhibit B        Form of Certificate of Trust	  	 	B-1	  
	Exhibit C        Form of Certificate Purchase Agreement	  	 	C-1	  
	Exhibit D        Form of Repurchase Request Notice	  	 	D-1	  

  
 iii 

 This AMENDED AND RESTATED TRUST AGREEMENT (as amended, restated or otherwise
modified from time to time, this “Agreement”), dated as of [                    ], 20[    ], is
between California Republic Funding, LLC, a Delaware limited liability company (the “Depositor”), and [                    ],
a [                                ], as owner trustee (the “Owner
Trustee”). 
  
 RECITALS 

WHEREAS, pursuant to a Receivables Purchase Agreement, dated as of
[            ], 20[  ], between California Republic Bank (“CRB”) and the Depositor, CRB desires to transfer and assign to the Depositor certain
motor vehicles receivables and related rights and assets all as more fully described herein and in the other Basic Documents; 

WHEREAS, California Republic Auto Receivables Trust 201[  ]-[  ] (the
“Issuer”), a Delaware statutory trust, was formed pursuant to that Trust Agreement, dated as of
[                        ], 201[  ], between the Depositor and the Owner Trustee (the “Original
Trust Agreement”); 
 WHEREAS, the Depositor and the Owner Trustee desire to amend and restate the Original Trust
Agreement in its entirety. 
 NOW THEREFORE, the Depositor and the Owner Trustee hereby agree as follows: 

ARTICLE I 
 DEFINITIONS 

Section 1.01      Capitalized Terms.     For all purposes
of this Agreement, the following terms have the meanings set forth below: 
 “Bankruptcy Action” has the
meaning assigned to such term in Section 4.04. 
 “Certificate Distribution Account” has the meaning
assigned to such term in Section 5.01(a). 
 “Certificate of Trust” means the certificate of trust
attached hereto as Exhibit B filed for the Issuer pursuant to Section 3810(a) of the Statutory Trust Act. 

“Certificate Purchase Agreement” means each purchase agreement setting forth the sale of any of the
Certificates, substantially in the form attached hereto as Exhibit C, entered into between the Depositor and a purchaser of Certificates. 

“Certificate Register” and “Certificate Registrar” means the register mentioned in and the
registrar appointed pursuant to Section 3.04(a). 
 “Certificateholder” or “Holder”
means a Person in whose name a Certificate is registered. 

  
 Amended and Restated Trust Agreement

 “Certificates” has the meaning ascribed to such term in
Section 3.03. 
 “Corporate Trust Office” means, with respect to the Owner Trustee, the principal
corporate trust office of the Owner Trustee located at [                    ], Attention: Corporate Trust Administration, or at such other
address in the State of Delaware as the Owner Trustee may designate by notice to the Certificateholders and the Depositor, or the principal corporate trust office of any successor Owner Trustee at the address (which shall be in the State of
Delaware) designated by such successor Owner Trustee by notice to the Certificateholders and the Depositor. 

“CRB” means California Republic Bank, a California corporation authorized to transact a banking business.

 “Issuer” has the meaning ascribed to such term in the recitals. 

“Paying Agent” means any paying agent or co-paying agent appointed pursuant to Section 3.13 and shall
initially be [                    ]. 

“Paying Agent’s Corporate Office” means (i) as long as the Paying Agent is
[                    ], the Corporate Trust Office, as such term is defined in Appendix A to the Sale and Servicing Agreement, and
(ii) thereafter, a designated office of the Paying Agent. 
 “Percentage Interest” means, with
respect to any Certificate, the percentage specified on such Certificate, which percentage represents the beneficial ownership interest of the Certificateholder in the Issuer. The sum of all Percentage Interests will equal 100%. 

“Sale and Servicing Agreement” means the Sale and Servicing Agreement, dated as of
[                    ], 20[  ], among the Issuer, the Depositor, CRB, as Seller, Servicer, Administrator and Custodian, [the
Backup Servicer,] and the Indenture Trustee. 
 “Secretary of State” means the Secretary of State of the
State of Delaware. 
 “Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code,
12 Del. Code § 3801 et seq. 
 “Treasury Regulations” means regulations, including proposed
or temporary regulations, promulgated under the Code. References herein to specific provisions of proposed or temporary regulations shall include analogous provisions of final Treasury Regulations or other successor Treasury Regulations. 

“Trust Estate” has the same meaning as Collateral. 

“United States Person” means a “United States person”, as such term is defined in
Section 7701(a)(30) of the Code. 
 Section 1.02      Other Definitional
Provisions.    Capitalized terms not defined in this Agreement have the meanings assigned thereto in Appendix A to the Sale and Servicing Agreement including the rules of construction and usage set forth therein. 

  
 2 

 ARTICLE II 

ORGANIZATION 

Section 2.01      Name.  The trust created under the Original Trust
Agreement and by the filing of the Certificate of Trust pursuant to the Statutory Trust Act and continued hereby shall continue to be known as California Republic Auto Receivables Trust 201[_]-[_], in which name the Owner Trustee may conduct the
business of the Issuer, make and execute contracts and other instruments on behalf of the Issuer and sue and be sued. 

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

Section 2.03      Purposes and Powers.  The purpose of the Issuer is to
engage in the following activities and the Issuer shall have the power and authority: 

(a)        to issue the Notes, secure the Notes and pay the Notes pursuant to the
Indenture, to issue the Certificates pursuant to this Agreement and to sell, transfer and exchange the Notes and the Certificates, in each case in accordance with the Basic Documents; 

(b)        with the proceeds of the sale of the Notes and the Certificates, to
purchase the Depositor Conveyed Assets, to fund the Reserve Account and make all other payments required pursuant to Section 5.04 of the Sale and Servicing Agreement and Section 5.04 of the Indenture, and to pay the organizational,
start-up and transactional expenses of the Issuer; 
 (c)        to assign, grant,
transfer, pledge, mortgage and convey the Trust Estate pursuant to the Indenture and to hold, acquire, manage and distribute to the Certificateholders pursuant to the terms of this Agreement, any portion of the Trust Estate released from the Lien
of, and remitted to the Issuer pursuant to, the Indenture or the Sale and Servicing Agreement; 

(d)        to enter into and perform its obligations under the Basic Documents to
which it is a party; 
 (e)        to engage in those activities, including
entering into agreements, that are necessary, suitable or convenient to accomplish the foregoing purposes or are incidental thereto or connected therewith; and 

(f)        subject to compliance with the Basic Documents, to engage in such other
activities as may be required in connection with servicing, administration and conservation of the Trust Estate, the securing and payment of the Notes and the making of distributions to the Certificateholders. 

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

  
 3 

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

 Section 2.05      Initial Capital Contribution of Trust
Estate.    The Depositor has heretofor sold, assigned, transferred, conveyed and set over to the Owner Trustee, as of the date thereof, the sum of $1. The Owner Trustee hereby acknowledges receipt in trust from the Depositor,
as of the date of formation of the Issuer, of the foregoing contribution, which constitutes the initial Trust Estate and has been deposited in the Certificate Distribution Account. The Depositor shall pay organizational expenses of the Issuer as
they may arise or shall, upon the request of the Owner Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the Owner Trustee. The Depositor and the Owner Trustee acknowledge and agree that the Trust Estate shall include all
Depositor Conveyed Assets transferred by the Depositor to the Issuer on the Closing Date pursuant to the Sale and Servicing Agreement. 

Section 2.06      Declaration of Trust.    The Owner Trustee
hereby declares that it shall hold the Trust Estate in trust upon and subject to the conditions set forth herein for the use and benefit of the Certificateholders, subject to the obligations of the Issuer under the Basic Documents. It is the
intention of the parties hereto that the Issuer constitute a statutory trust under the Statutory Trust Act and that this Agreement constitute the governing instrument of such statutory trust. It is the intention of the parties hereto that, solely
for federal, State and local income, single business and franchise tax purposes, (a) the Notes shall be treated as debt and (b) the Issuer shall not be treated as an association (or publicly-traded partnership) taxable as a corporation.
The parties agree that, unless otherwise required by appropriate tax authorities, the Issuer and, to the extent applicable, the Certificateholders shall file or cause to be filed annual or other necessary returns, reports and other forms consistent
with the characterization of the Issuer provided in the preceding sentence for such tax purposes and shall not take any position contrary to this characterization in any federal or state tax filings. Effective as of the date hereof, the Owner
Trustee shall have all rights, powers and duties set forth herein and in the Statutory Trust Act with respect to accomplishing the purposes of the Issuer. The Owner Trustee shall not file or join in, and each Certificateholder by acceptance of its
Certificate agrees that it shall not file or join in, an election to treat the Issuer as an association taxable as a corporation for tax purposes. The Depositor intends to treat the Issuer for federal income tax reporting purposes as a grantor trust
under subpart E, part 1, subchapter J, chapter 1 of subtitle A of the Code. Each purchaser of a Certificate, by its acceptance of the Certificate, agrees to treat the Issuer as a grantor trust and will take no action inconsistent with such
treatment, unless otherwise required by the appropriate authority. 

Section 2.07      Liability of the Depositor and Certificateholders. 

(a)        The Depositor shall be liable directly to and will indemnify the injured
party for all losses, claims, damages, liabilities and expenses of the Issuer (including expenses, to the extent not paid out of the Trust Estate) to the extent that the Depositor would be liable if the Issuer were a partnership under the Delaware
Revised Uniform Limited Partnership Act in which the Depositor were a general partner; provided, however, that the Depositor shall not be liable for any losses incurred by a Certificateholder in the capacity of an investor in the
Certificates or a Noteholder in the capacity of an investor in the Notes. In addition, any third-party creditors of 

  
 4 

 
the Issuer (other than in connection with the obligations described in the preceding proviso for which the Depositor shall not be liable) shall be deemed third-party beneficiaries of this
Section 2.07(a). 
 (b)        The Certificateholders shall not have any
personal liability for any liability or obligation of the Issuer. 

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

Section 2.09      Situs of Trust.  The Issuer shall be located in the
State of Delaware; provided, however, that the Issuer may enter into administration agreements with Persons located outside of the State of Delaware. All bank accounts maintained by the Owner Trustee on behalf of the Issuer shall be
located in the State of Delaware, the State of California or the State of New York. The Issuer shall not have any employees; provided, however, that nothing herein shall restrict or prohibit the Owner Trustee from having employees
within or without the State of Delaware. Payments shall be received by the Issuer only in Delaware, California or New York, and payments shall be made by the Issuer only from the State of Delaware, the State of California or the State of New York.
The only office of the Issuer shall be at the Corporate Trust Office in the State of Delaware. 

Section 2.10    Representations, Warranties and Covenants of the Depositor.  The
Depositor hereby represents and warrants to the Owner Trustee and the Holders of Notes and the Certificateholders, that, as of the Closing Date: 

(a)        The Depositor is duly formed and validly existing as a limited liability
company in good standing under the laws of the State of Delaware, with power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted. 

(b)        The Depositor is duly qualified to do business as a foreign limited
liability company in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of its property or the conduct of its business shall require such qualifications. 

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

(d)        The Depositor has duly executed and delivered this Agreement, and this
Agreement constitutes a legal, valid and binding obligation of the Depositor, enforceable against the Depositor in accordance with its terms. 

  
 5 

 (e)        The consummation of the
transactions contemplated by this Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the
limited liability company agreement of the Depositor, or any indenture, agreement or other instrument to which the Depositor is a party or by which it is bound; nor result in the creation or imposition of any Lien upon any of its properties pursuant
to the terms of any such indenture, agreement or other instrument (other than pursuant to the Basic Documents); nor violate any Applicable Law to the Depositor of any Governmental Authority having jurisdiction over the Depositor or its properties.

 (f)        There are no Proceedings or investigations pending or threatened
before any Governmental Authority having jurisdiction over the Depositor or its properties (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement
or (iii) that could adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability of, this Agreement. 

(g)        The representations and warranties of the Depositor in Section 3.02
of the Sale and Servicing Agreement are true and correct. 

Section 2.11      Federal Income Tax Matters.  The Certificateholders
acknowledge that it is their intent and that they understand it is the intent of the Depositor and the Servicer that, for purposes of federal income, State and local income and franchise tax and any other income taxes, the Issuer shall be treated as
either an entity that is disregarded as separate from the beneficial owner of the equity in the Issuer if there is only one such owner, or as a partnership (other than an association or publicly traded partnership) if there are two or more such
owners, and income, expenses, gain or loss of the Issuer for such month as determined for federal, State and local income and franchise tax purposes shall be allocated among the Certificateholders as of the Record Date occurring within such month,
in proportion to their ownership of the Certificate on such date. The Depositor hereby agrees and each Certificateholder by acceptance of a Certificate agrees to such treatment and each agrees to take no action inconsistent with the foregoing
characterization. 
 The Depositor is authorized to modify the allocations in this Section if necessary or appropriate, in
its sole discretion, for the allocations to reflect fairly the economic income, expenses, gain or loss to the Certificateholders or as otherwise required by the Code. 

ARTICLE III 
 CERTIFICATES AND
TRANSFER OF INTERESTS 
 Section 3.01      Initial
Ownership.     Upon the formation of the Issuer by the contribution by the Depositor pursuant to Section 2.05 and until the issuance of the Certificates, the Depositor shall be the sole beneficiary of the Issuer.

 Section 3.02      The Certificates. 

(a)        The Certificates shall be executed on behalf of the Issuer by manual or
facsimile signature of an authorized officer of the Owner Trustee. Certificates bearing the 

  
 6 

 
manual or facsimile signatures of individuals who were, at the time when such signatures shall have been affixed, authorized to sign on behalf of the Issuer, shall be validly issued and entitled
to the benefit of this Agreement and shall be valid and binding obligations of the Issuer, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the authentication and delivery of such Certificates or
did not hold such offices at the date of authentication and delivery of such Certificates. 

(b)        A transferee of a Certificate, if any, shall become a Certificateholder
and shall be entitled to the rights and subject to the obligations of a Certificateholder hereunder upon such transferee’s acceptance of a Certificate duly registered in such transferee’s name pursuant to Section 3.04;
provided, however, that no Certificate shall be transferred without the prospective transferee and the prospective transferor satisfying the requirements of a Certificate Purchase Agreement. 

Section 3.03      Execution, Authentication and Delivery of Certificates. 

(a)        The Owner Trustee on behalf of the Issuer shall, on the date hereof, upon
the written order of the Depositor, execute and cause to be authenticated and delivered to the Depositor, Certificates evidencing 100% Percentage Interest. No Certificate shall entitle the respective Certificateholder to any benefit under this
Agreement, or be valid for any purpose, unless there shall appear on such Certificate a certificate of authentication substantially in the form set forth in Exhibit A, executed by the Owner Trustee or its authenticating agent, by manual
signature; and such authentication shall constitute conclusive evidence that such Certificate shall have been duly authenticated and delivered hereunder. 

(b)        The Certificates shall consist of a single class designated as the
“Certificates”. The rights of the Certificateholders to receive distributions from the proceeds of the Issuer in respect of their Certificates, and all ownership interests of the Certificateholders in such distributions, shall be as
set forth in this Agreement. When executed, issued and duly authorized, the Certificates will be fully paid, validly issued, nonassessable and entitled to all benefits of this Agreement. 

(c)        The Certificates shall be substantially in the form attached hereto as
Exhibit A; provided, however, that any of the Certificates may be issued with appropriate insertions, omissions, substitutions and variations, and may have imprinted or otherwise reproduced thereon such legend or legends, not
inconsistent with the provisions of this Agreement, as may be required to comply with any Applicable Law, or with the applicable rules of any securities market in which the Certificates are admitted to trading, or to conform to general usage. The
Certificates shall be issuable in registered form only. 

Section 3.04      Registration of Transfer and Exchange of Certificates. 

(a)        A registrar (the “Certificate Registrar”) shall keep or
cause to be kept, at the office or agency maintained pursuant to Section 3.12, a register (the “Certificate Register”) in which, subject to such reasonable regulations as it may prescribe, the Issuer shall provide for the
registration of Certificates and of transfers and exchanges of Certificates as herein provided. [                    ] shall be the initial
Certificate Registrar. Upon any resignation of any Certificate Registrar, the Owner Trustee shall, upon receipt of written instructions from the Depositor, promptly appoint a successor thereto. 

  
 7 

 (b)        No transfer, sale, pledge or
other disposition of any Certificate or interest therein shall be made unless that transfer, sale, pledge or other disposition (i) complies with the requirements and restrictions set forth in the related Certificate Purchase Agreement (except
that for the initial transfer of the Certificates to the Depositor, the requirements for transfer shall be deemed to have been met by the Depositor) and (ii) is exempt from the registration and/or qualification requirements of the Securities
Act, and any applicable State securities laws, or is otherwise made in accordance with the Securities Act and such State securities laws. Any Certificateholder desiring to effect a transfer of Certificates or interest therein shall, and does hereby
agree to, indemnify the Issuer, each of the Depositor, the Owner Trustee and the Certificate Registrar against any liability that may result if the transfer is not so exempt or is not made in accordance with the Securities Act and such State laws.

 (c)        Subject to Section 3.09, upon surrender for registration of
transfer of any Certificate at the office or agency maintained pursuant to Section 3.12, the Owner Trustee shall execute, authenticate and deliver (or shall cause to be authenticated and delivered), in the name of the designated transferee or
transferees, one or more new Certificates in authorized denominations of a like aggregate Percentage Interest dated the date of authentication by the Owner Trustee or any authenticating agent. At the option of a Certificateholder, Certificates may
be exchanged for other Certificates of authorized denominations of a like aggregate Percentage Interest upon surrender of the Certificates to be exchanged at the office or agency maintained pursuant to Section 3.12. 

(d)        Every Certificate presented or surrendered for registration of transfer or
exchange shall be accompanied by a written instrument of transfer in form satisfactory to the Certificate Registrar duly executed by the related Certificateholder or such Certificateholder’s attorney duly authorized in writing. Each Certificate
surrendered for registration of transfer or exchange shall be cancelled and subsequently disposed of by the Certificate Registrar in accordance with its customary practice. 

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

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

(g)        Each purchaser (including any transferee) of a Certificate must satisfy
the transfer restrictions as set forth herein and in the applicable transfer certificate attached to the Certificate Purchase Agreement. Each purchaser (including any transferee) of a Certificate shall be deemed by its acceptance of an ownership
interest in a Certificate to have made the representations and warranties set forth under “Notice to Investors” in the Private Placement Memorandum. 

  
 8 

 (h)        The provisions of this
Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the transfer of the Certificates. 

Section 3.05      Certificate Transfer Restrictions. 

(a)        The Certificates may not be acquired by or for the account of (i) an
employee benefit plan, as defined in Section 3(3) of ERISA, that is subject to Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of the Internal Revenue Code that is subject to Section 4975 of the Internal Revenue
Code, (iii) a governmental plan, as defined in Section 3(32) of ERISA, subject to any federal, State or local law which is, to a material extent, similar to the provisions of Section 406 of ERISA or Section 4975 of the Internal
Revenue Code, (iv) an entity whose underlying assets include plan assets by reason of a plan’s investment in the entity (within the meaning of Section 3(42) of ERISA and Department of Labor Regulation 29 C.F.R.
Section 2510.3-101) or (v) a person investing “plan assets” of any such plan (including, for purposes of this clause (a), an insurance company general account, but excluding any entity registered under the 1940 Act). 

(b)        No transfer (or purported transfer) of a Certificate (or economic interest
therein), whether to another Certificateholder or to a Person who is not a Certificateholder, shall be effective, and any such transfer (or purported transfer) shall be void ab initio, and no Person shall otherwise become a Certificateholder, and
none of the Issuer, the Owner Trustee, the Certificate Registrar or any of the Certificateholders will recognize such transfer (or purported transfer), unless the transferee has first represented and warranted in writing to the Issuer and the
Certificate Registrar that: 
 (i)        it is acquiring the
Certificates for its own account and is the sole beneficial owner of such Certificates; and 

(ii)       the transfer is not being effected on or through (A) an
“established securities market” within the meaning of Section 7704(b)(1) of the Code, including an over-the-counter market or an interdealer quotation system that regularly disseminates firm buy or sell quotations or (B) a
“secondary market” or “substantial equivalent thereof’ within the meaning of Section 7704(b)(2) of the Code and any Treasury Regulations thereunder; 

(c)        Notwithstanding anything to the contrary in this Agreement, no transfer
(or purported transfer) of any Certificate (or any economic interest therein) shall be effective, and any such transfer (or purported transfer) shall be void ab initio if, after such transfer (or purported transfer), there would be more than
seventy-five (75) Certificateholders (where, for purposes of determining the number of Certificateholders, a Person (beneficial owner) owning an interest in a partnership, grantor trust, or S corporation (“flow-through entity”), that
owns, directly or through other flow-through entities, an interest in the Issuer, is treated as a Certificateholder if more than fifty percent (50%) of the value of such beneficial owner’s interest in the flow-through entity is
attributable to the flow-through entity’s interest (direct or indirect) 

  
 9 

 
in the Issuer) unless the transferee delivers an Opinion of Counsel, in a form acceptable to the Certificate Registrar, that the transfer will not cause the Issuer to become a publicly traded
partnership for U.S. federal income tax purposes. 

Section 3.06      Mutilated, Destroyed, Lost or Stolen
Certificates.     If (a) any mutilated Certificate shall be surrendered to the Certificate Registrar, or if the Certificate Registrar shall receive evidence to its satisfaction of the destruction, loss or theft of
any Certificate and (b) there shall be delivered to the Certificate Registrar and the Owner Trustee such security or indemnity as may be required by them to save each of them harmless, then in the absence of notice that such Certificate has
been acquired by a Protected Purchaser, the Owner Trustee on behalf of the Issuer shall execute and the Owner Trustee or the Certificate Registrar, as the Owner Trustee’s authenticating agent, shall authenticate and deliver, in exchange for or
in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like tenor and denomination. In connection with the issuance of any new Certificate under this Section, the Owner Trustee or the Certificate Registrar may
require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. Any duplicate Certificate issued pursuant to this Section shall constitute conclusive evidence of ownership in the
Issuer, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at anytime. 

Section 3.07      Persons Deemed Owners.  Prior to due presentation of a
Certificate for registration of transfer, the Owner Trustee, the Certificate Registrar or any Paying Agent may treat the Person in whose name any Certificate is registered in the Certificate Register as the owner of such Certificate for the purpose
of receiving distributions pursuant to Section 5.02 and for all other purposes whatsoever, and none of the Owner Trustee, the Certificate Registrar or any Paying Agent shall be bound by any notice to the contrary. 

Section 3.08      Access to List of Certificateholders’ Names and
Addresses.   The Certificate Registrar shall furnish or cause to be furnished to the Servicer, the Paying Agent and the Depositor, within fifteen (15) days after receipt by the Certificate Registrar of a written request
therefor from the Servicer, the Paying Agent or the Depositor, a list, in such form as the Servicer, the Paying Agent or the Depositor may reasonably require, of the names and addresses of the Certificateholders as of the most recent Record Date.
The Certificate Registrar shall also furnish to the Owner Trustee and the Paying Agent a copy of such list at any time there is a change therein. If (i) three (3) or more Certificateholders or (ii) one (1) or more
Certificateholders evidencing not less than twenty-five percent (25%) of the Percentage Interest apply in writing to the Owner Trustee, and such application states that the applicants desire to communicate with other Certificateholders with
respect to their rights under this Agreement or under the Certificates and such application and written direction from the Administrator is accompanied by a copy of the communication that such applicants propose to transmit, then the Certificate
Registrar shall, within five (5) Business Days after the receipt of such application, afford such applicants access during normal business hours to the current list of Certificateholders. Each Certificateholder, by receiving and holding a
Certificate, shall be deemed to have agreed not to hold any of the Depositor, the Certificate Registrar or the Owner Trustee accountable by reason of the disclosure of its name and address, regardless of the source from which such information was
derived. The Certificate Registrar shall upon the request of the Owner Trustee provide such list, or access to such list, of Certificateholders as contemplated by this Section. 

  
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 Section 3.09      Book-Entry
Certificates.  Each Certificate, upon original issuance, shall be issued in the form of a typewritten certificate or certificates representing the Book-Entry Certificates, which shall be deposited on behalf of the purchasers of the
Certificates represented by such Book-Entry Certificate with the Depository or the Certificate Registrar, as custodian for the Depository, and registered on the Certificate Register in the name of the Depository or a nominee thereof (initially, such
nominee to be Cede & Co.). No Owner shall receive a Definitive Certificate representing such Owner’s interest in such Certificate, except as provided in Section 3.11. Unless and until Definitive Certificates with respect to such
Certificates have been issued to such Owners pursuant to Section 3.11, with respect to such Certificates: 

(a)        the provisions of this Section shall be in full force and effect; 

(b)        the Certificate Registrar, the Paying Agent and the Owner Trustee shall be
entitled to deal with the Depository for all purposes of this Agreement (including the payment of principal of and interest on such Certificates and the giving of instructions or directions hereunder) as the sole Certificateholder and shall have no
obligation to the related Owners; 
 (c)        to the extent that the provisions
of this Section conflict with any other provisions of this Agreement, the provisions of this Section shall control; 

(d)        the rights of the Owners shall be exercised only through the Depository
and shall be limited to those established by Applicable Law and agreements between such Owners and the Depository and/or the Depository Participants, and unless and until Definitive Certificates are issued pursuant to Section 3.11, the initial
Depository shall make book-entry transfers between the Depository Participants and receive and transmit payments of principal of and interest on such Notes to such Depository Participants, pursuant to the Depository Agreement; and 

(e)        whenever this Agreement requires or permits actions to be taken based upon
instructions or directions of Certificateholders evidencing a specified Percentage Interest, the Depository shall be deemed to represent such percentage when it has delivered such instructions to the Owner Trustee and the Certificate Registrar; the
Owner Trustee and Certificate Registrar may fully rely on such instructions and it shall be the duty of the Depository to ensure that it has received written instructions to such effect from Owners and/or Depository Participants owning or
representing, respectively, such required Percentage Interest. 
 Section 3.10    Notices to
Depository.   With respect to any Certificates issued as Book-Entry Certificates, whenever a notice or other communication to the Certificateholders is required under this Agreement, unless
and until Definitive Certificates representing the Certificates shall have been issued to the related Owners pursuant to Section 3.11, the Owner Trustee shall give all such notices and communications specified herein to be given to the related
Certificateholders to the Depository and shall have no obligation to such Owners. 

Section 3.11    Definitive Certificates.    If for any Certificates
issued as Book-Entry Certificates (i) the Administrator advises the Owner Trustee in writing that the Depository 

  
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is no longer willing or able to properly discharge its responsibilities with respect to such Certificates and the Administrator on behalf of the Issuer is unable to locate a qualified successor;
or (ii) after the occurrence of an Event of Default or a Servicer Termination Event, Owners representing more than 50% of the Percentage Interest advise the Depository in writing that the continuation of a book-entry system through the
Depository is no longer in the best interests of such Owners, then the Depository shall notify all Owners and the Owner Trustee in writing of the occurrence of any such event and of the availability of Definitive Certificates to such Owners
requesting the same. Upon surrender to the Owner Trustee of the typewritten Certificate or Certificates representing such Book-Entry Certificates by the Depository, accompanied by registration instructions, the Issuer shall execute and the Owner
Trustee shall authenticate the related Definitive Certificates in accordance with the instructions of the Depository. None of the Issuer, the Administrator, the Certificate Registrar or the Owner Trustee shall be liable for any delay in delivery of
such instructions and may conclusively rely on, and shall be fully protected in relying on, such instructions. Upon the issuance of such Definitive Certificates, the Issuer, the Certificate Registrar and the Owner Trustee shall recognize the holders
of such Definitive Certificates as Certificateholders. The Owner Trustee shall not be liable if the Administrator is unable to locate a qualified successor Depository. 

Section 3.12    Maintenance of Office or Agency.  The Certificate Registrar shall
designate in the Borough of Manhattan, the City of New York, an office or offices or agency or agencies where Certificates may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Owner Trustee in
respect of the Certificates and the Basic Documents may be served. The Certificate Registrar initially designates the Indenture Trustee as its office for such purposes. The Certificate Registrar shall give prompt written notice to the Depositor and
the Certificateholders of any change in the location of the Certificate Register or any such office or agency. 

Section 3.13    Appointment of Paying Agent.    The Paying Agent shall
make distributions to Certificateholders from the Certificate Distribution Account pursuant to Section 5.02 and shall report the amounts of such distributions to the Owner Trustee. Any Paying Agent shall have the revocable power to withdraw
funds from the Certificate Distribution Account for the purpose of making the distributions referred to above. The Owner Trustee may revoke such power and remove the Paying Agent if the Owner Trustee determines in its sole discretion that the Paying
Agent shall have failed to perform its obligations under this Agreement in any material respect; provided, however, the Owner Trustee shall have no duty to monitor or oversee the compliance by the Paying Agent of its obligations under
this Agreement or any other Basic Document. The Paying Agent initially shall be [                    ], and any co-paying agent chosen by the
Depositor. [                    ] shall be permitted to resign as Paying Agent upon thirty (30) days’ written notice to the Owner
Trustee. In the event that [                    ] shall no longer be the Paying Agent, the Depositor, with the consent of the Owner Trustee,
shall appoint a successor to act as Paying Agent (which shall be a bank or trust company). The Owner Trustee shall cause such successor Paying Agent or any additional Paying Agent appointed hereunder to execute and deliver to the Owner Trustee an
instrument in which such successor Paying Agent or additional Paying Agent shall agree with the Owner Trustee that, as Paying Agent, such successor Paying Agent or additional Paying Agent shall hold all sums, if any, held by it for payment to the
Certificateholders in trust for the benefit of the Certificateholders entitled thereto until such sums shall be paid to such Certificateholders. The 

  
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Paying Agent shall return all unclaimed funds to the Owner Trustee and upon removal of a Paying Agent such Paying Agent shall also return all funds in its possession to the Owner Trustee. The
provisions of Sections 6.03, 6.06, 6.07 and 6.09 shall apply to the Owner Trustee also in its role as Paying Agent, for so long as the Owner Trustee shall act as Paying Agent and, to the extent applicable, to any other paying agent appointed
hereunder. Any reference in this Agreement to the Paying Agent shall include any co-paying agent unless the context requires otherwise. 

Section 3.14    Indemnification.    The rights, privileges, protections,
immunities and benefits given to the Indenture Trustee under Article VI of the Indenture (including the compensation and indemnification provisions of Section 6.07 of the Indenture), are extended to, and shall be enforceable by
[                    ] in its capacities as Certificate Registrar and Paying Agent hereunder. 

Section 3.15    No Recourse.    Each Certificateholder, by accepting a
Certificate, acknowledges that the Certificates represent beneficial interests in the Issuer only and do not represent interests in or obligations of the Depositor, the Seller, the Servicer, the Administrator, either Trustee or any of their
respective Affiliates and no recourse may be had against any such entities or their assets, except as may be expressly set forth or contemplated in the Certificates or any Basic Document. hereunder. 

Section 3.16    Certificates Nonassessable and Fully
Paid.    Certificateholders shall not be personally liable for obligations of the Issuer. The interests represented by the Certificates shall be nonassessable for any losses or expenses of the Issuer or for any reason
whatsoever, and, upon the authentication thereof by the Owner Trustee pursuant to Sections 3.03, 3.04 or 3.05, the Certificates are and shall be deemed fully paid. 

ARTICLE IV 
 ACTIONS BY OWNER
TRUSTEE AND CERTIFICATEHOLDERS 
 Section 4.01      Prior Notice with Respect to
Certain Matters. 
 With respect to the following matters, the Owner Trustee shall not take action unless at least
thirty (30) days before the taking of such action, the Owner Trustee shall have notified the Certificateholders of record as of the preceding Record Date in writing of the proposed action and such Certificateholders shall not have notified the
Owner Trustee in writing prior to the thirtieth (30th) day after such notice is given that such Certificateholders have withheld consent or provided alternative direction: 

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

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

(c)        the amendment of any Basic Document in circumstances where the consent of
any Noteholder or the Indenture Trustee is required; 
 (d)        the amendment,
change or modification of the Administration Agreement, except to cure any ambiguity or to amend or supplement any provision in a manner or add any provision that would not materially adversely affect the interests of the Certificateholders; 

(e)        the appointment pursuant to the Indenture of a successor Registrar, Paying
Agent or Indenture Trustee or pursuant to this Agreement of a successor Certificate Registrar, or the consent to the assignment by the Registrar, Paying Agent or Indenture Trustee or Certificate Registrar of its obligations under the Indenture or
this Agreement, as applicable; 
 (f)        the consent to the calling or waiver
of any default of any Basic Document; 
 (g)        the consent to the assignment
by the Indenture Trustee or Servicer of their respective obligations under any Basic Document, unless permitted in the Basic Documents; 

(h)        except as provided in Article VII, the dissolution, termination or
liquidation of the Issuer in whole or in part; 
 (i)        the merger,
conversion, or consolidation of the Issuer with or into any other entity, or the conveyance or transfer of all or substantially all of the Issuer’s assets to any other entity; 

(j)        the incurrence, assumption or guaranty of any indebtedness other than as
set forth in this Agreement or the Basic Documents; 
 (k)        the confession of
a judgment against the Issuer; 
 (l)         the possession of Issuer’s
assets, or the assignment of the Issuer’s right to property, for other than a Issuer purpose; 

(m)       the lending by the Issuer of any funds to any entity, unless permitted in the
Basic Documents; 
 (n)        any change to the Issuer’s purpose and powers
from those set forth in this Agreement; 
 (o)        any act that conflicts with
any other Basic Document; or 
 (p)        any act that would make it impossible to
carry on the ordinary business of the Issuer as described in Section 2.03. 

  
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 Section 4.02      Standards of Operations;
Separateness of the Issuer and the Depositor.  The operations of the Issuer shall be conducted in accordance with the following standards: 

(a)        Except as otherwise expressly provided in the Basic Documents, neither the
Depositor nor any other holder of a Certificate shall have any authority to act for, or to assume any obligation or responsibility on behalf of, the Issuer. 

(b)        The Issuer shall keep correct and complete books and records of the
accounts and minutes of the meetings and other proceedings of the Issuer and any agents, separate from those of the Depositor or any subsidiary, affiliate or separate account of either. Any such resolutions, agreements and other instruments shall be
continuously maintained as official records by the Issuer. 
 (c)        Subject to
Sections 2.05 and 2.07, each of the Depositor and the Issuer shall provide for its own operating expenses and liabilities from its own funds. General overhead and administrative expenses of the Issuer shall not be charged or otherwise allocated
to the Depositor (except indirectly, insofar as the Depositor owns any of the Certificates) and such expenses of the Depositor shall not be charged or otherwise allocated to the Issuer. 

(d)        The Issuer shall conduct its business under names or trade names so as not
to mislead others as to the identity of the Issuer. Without limiting the generality of the foregoing, all oral and written communications, including letters, invoices, contracts, statements and applications, shall be made solely in the name of the
Issuer (or addressed to the Issuer, as applicable) if related to the Issuer. The Depositor and the Issuer each shall have separate stationery, checks, invoices and other business forms. 

(e)        The Issuer shall be adequately capitalized for the conduct of its business
and in light of its purposes. 
 (f)        There shall be no guarantees made by
the Issuer with respect to obligations of the Depositor. There shall not be any indebtedness among the Issuer and the Depositor. The Issuer shall not hold itself out to be responsible for the debts and obligations of the Depositor or any other
entity. 
 (g)        The Issuer shall maintain its assets in such a manner that it
shall not be costly or difficult to ascertain or otherwise identify its individual assets and liabilities from those of any other entity. In that regard, the Issuer shall not commingle its assets with those of any other entity. The Issuer shall
maintain its financial and accounting books and records separate from those of any other entity. Except as expressly set forth herein, the Issuer shall not pay the indebtedness, operating expenses and liabilities of any other entity. The Issuer
shall maintain appropriate minutes or other records of all appropriate actions and shall maintain its office separate from the offices of the Depositor and the Servicer. 

(h)        The Issuer shall not commingle or pool its funds or other assets with
those of the Depositor or any other entity and shall not maintain any joint bank accounts with the Depositor. 

  
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 (i)         The Issuer shall act
solely in its name and through its or the Owner Trustee’s duly authorized officers or agents in the conduct of its business and enter into transactions and agreements with the Depositor solely on an arm’s length basis. The Issuer shall
not: (i) operate or purport to operate as an integrated, single economic unit with respect to the Depositor or any other entity; (ii) seek or obtain credit or incur any obligation to any third party based upon the assets of the Depositor
or any other entity; or (iii) induce any such third party to reasonably rely on the creditworthiness of the Depositor or any other affiliated or unaffiliated entity. The Issuer shall correct any known misunderstanding or misrepresentation with
respect to its separate identity. 
 (j)         The Depositor shall maintain
an office separate from that of the Issuer. Such business office may be a separately allocated and identifiable office space within the business offices of the other, provided that the name of the Depositor and the Issuer is posted upon the
directory of organizations occupying such building. Each of the Depositor and the Issuer shall maintain a telephone number that is different from that of each other such party. 

(k)        The Issuer shall not incur any debt or other obligations other than that
contemplated herein or in the Basic Documents. 
 (l)         The Issuer shall
not merge with or assent to its acquisition by or of another entity without the prior satisfaction of the Rating Agency Condition. 

(m)       Notwithstanding anything to the contrary in this Agreement, the Issuer shall
comply with its obligations and responsibilities under the Basic Documents and will not do any act in contravention of the Basic Documents. 

Section 4.03      Action by Certificateholders with Respect to Certain
Matters.  The Owner Trustee shall not have the power, except upon the written direction of the Certificateholders holding a majority of the Percentage Interests, to (a) remove the Administrator under the Administration Agreement
pursuant thereto, (b) appoint a successor Administrator pursuant to Section 8 of the Administration Agreement, (c) remove the Servicer under the Sale and Servicing Agreement pursuant thereto, (d) amend the Sale and Servicing
Agreement pursuant thereto, or (e) except as expressly provided in the Basic Documents, sell the Receivables after the termination of the Indenture. The Owner Trustee shall take the actions referred to in the preceding sentence only upon
written instructions signed by Certificateholders holding a majority of the Percentage Interest. 

Section 4.04      Action by Certificateholders with Respect to
Bankruptcy.    The Owner Trustee shall not have the power to (a) remove or replace the Indenture Trustee, (b) institute proceedings to have the Issuer declared or adjudicated a bankruptcy or insolvent,
(c) consent to the institution of bankruptcy or insolvency proceedings against the Issuer, (d) file a petition or consent to a petition seeking reorganization or relief on behalf of the Issuer under any applicable federal or State law
relating to bankruptcy, (e) consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or any similar official) of the Issuer or a substantial portion of the property of the Issuer, (f) make any assignment for
the benefit of the Issuer’s creditors, (g) cause the Issuer to admit in writing its inability to pay its debts generally as they become due, or (h) take any action, or cause the Issuer to take any action, in furtherance of 

  
 16 

 
any of the foregoing (any of the above, a “Bankruptcy Action”) without the unanimous prior approval of all Certificateholders and the delivery to the Owner Trustee by each such
Certificateholder of a certification certifying that such Certificateholder reasonably believes that the Issuer is insolvent, and to the extent otherwise consistent with the Basic Documents. 

Section 4.05      Restrictions on Certificateholders’ Power.  The
Certificateholders shall not direct the Owner Trustee to take or to refrain from taking any action (a) if such action or inaction would be contrary to any obligation of the Issuer or the Owner Trustee under this Agreement or any of the other
Basic Documents or would be contrary to Section 2.03, (b) that, for federal, State or local income, single business or franchise tax purposes, would cause the Issuer to be treated as an association (or a publicly-traded partnership)
taxable as a corporation; nor shall the Owner Trustee be obligated to follow any such direction, if given. With respect to any direction of the Certificateholders, the Certificateholders shall be required to certify as to the compliance with this
Section 4.05 and the Owner Trustee shall be entitled to conclusively rely on any such certificate. 

Section 4.06      Majority Control.  Except as expressly provided herein,
any action that may be taken by the Certificateholders under this Agreement may be taken by the Certificateholders holding not less than a majority of the Percentage Interests. Except as expressly provided herein, any written notice of the
Certificateholders delivered pursuant to this Agreement shall be effective if signed by Certificateholders holding not less than a majority of the Percentage Interests at the time of the delivery of such notice. 

Section 4.07      Rule 144A. 

At any time that the Issuer is not a reporting company under Section 13 or Section 15(d) of the Exchange Act, or is
exempt from reporting pursuant to Rule 12g3-2(b) of the Exchange Act, the Administrator on behalf of the Issuer, upon request by a Certificateholder and at the expense of such Certificateholder, shall furnish to such Certificateholder and to
any prospective purchaser of the Certificates from such Certificateholder, any information to be delivered under Rule 144A(d)(4) under the Securities Act. 

  
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 ARTICLE V 

APPLICATION OF TRUST FUNDS; CERTAIN DUTIES 

Section 5.01      Establishment of Certificate Distribution Account. 

(a)        The Paying Agent, for the benefit of the Certificateholders, shall
establish and maintain in the name of the Issuer an Eligible Account (the “Certificate Distribution Account”) located at the Paying Agent’s Corporate Office and bearing a designation clearly indicating that the funds deposited
therein are held for the benefit of the Certificateholders. The title of the Certificate Distribution Account shall be “California Republic Auto Receivables Trust 201[  ]-[  ]: Certificate Distribution Account
for the benefit of the Certificateholders”. 
 (b)        The Issuer shall
possess all right, title and interest in all funds on deposit from time to time in the Certificate Distribution Account and in all proceeds thereof. Except as otherwise expressly provided herein, the Certificate Distribution Account shall be under
the sole dominion and control of the Paying Agent for the benefit of the Certificateholders. If, at any time, the Certificate Distribution Account ceases to be an Eligible Account, the Paying Agent shall within ten (10) Business Days (or such
longer period, not to exceed thirty (30) calendar days, as to which each Rating Agency may consent) establish a new Certificate Distribution Account, as applicable, as an Eligible Account and shall transfer all cash and investments to such new
Certificate Distribution Account, as applicable. 
 Section 5.02      Application of
Trust Funds. 
 (a)        The Paying Agent shall deposit, or cause to be
deposited, in the Certificate Distribution Account all funds received by the Issuer pursuant to Section 5.04(a) of the Sale and Servicing Agreement or the terms of the Indenture. All funds held in the Certificate Distribution Account shall be
held uninvested pending distribution to the Certificateholders. On each Payment Date or other Business Day on which amounts are deposited into the Certificate Distribution Account pursuant to Section 5.04(a) of the Sale and Servicing Agreement
or the terms of the Indenture, the Paying Agent shall distribute or cause to be distributed, to the Certificateholders, ratably, in proportion to each Certificateholder’s Percentage Interest, the funds on deposit in the Certificate Distribution
Account. 
 (b)        Notwithstanding any provision of this Agreement to the
contrary, on the Closing Date the Paying Agent on behalf of the Issuer shall remit, or cause to be remitted, to the Reserve Account (to the extent that the Issuer has received sufficient funds from net proceeds of the issuance of the Notes) an
amount equal to the Initial Reserve Account Deposit Amount. 
 (c)        On each
Payment Date, the Paying Agent shall send to each Certificateholder the statement or statements provided to the Paying Agent by the Servicer pursuant to the Sale and Servicing Agreement with respect to such Payment Date. 

(d)        In the event that any withholding tax is imposed on the Issuer’s
payment (or allocations of income) to a Certificateholder, such tax shall reduce the amount otherwise distributable to such Certificateholder in accordance with this Section. The Owner Trustee or Paying Agent is hereby authorized and directed to
retain from amounts otherwise distributable to 

  
 18 

 
the Certificateholders sufficient funds for the payment of any tax that is legally owed by the Issuer (but such authorization shall not prevent the Owner Trustee or the Paying Agent from
contesting any such tax in appropriate proceedings and withholding payment of such tax, if permitted by Applicable Law, pending the outcome of such proceedings, provided they shall have no obligation to do so). The amount of any withholding tax
imposed with respect to a Certificateholder shall be treated as cash distributed to such Certificateholder at the time it is withheld by the Issuer and remitted to the appropriate taxing authority. If there is a possibility that withholding tax is
payable with respect to a distribution, the Owner Trustee or the Paying Agent may in its sole discretion withhold such amounts in accordance with this paragraph. 

(e)        Any Certificateholder that is a United States Person shall, on or prior to
the date that such Certificateholder becomes a Certificateholder, (i) provide the Owner Trustee and the Paying Agent with Internal Revenue Service Form W-9 (or successor form) or (ii) notify the Owner Trustee and the Paying Agent that
it is exempt from backup withholding. Any such Certificateholder agrees by its acceptance of a Certificate, upon request of the Issuer, the Owner Trustee or the Paying Agent, to provide like certification or notification on an ongoing basis and to
notify the Owner Trustee or Paying Agent should subsequent circumstances render such forms or exemptions incorrect or invalid. The Owner Trustee and the Paying Agent shall be fully protected in relying upon, and each Certificateholder by its
acceptance of a Certificate hereunder agrees to indemnify and hold the Owner Trustee and the Paying Agent harmless against all claims or liability of any kind arising in connection with or related to the Owner Trustee’s and the Paying
Agent’s reliance upon, any documents, forms or information provided by any such Certificateholder to the Issuer, the Owner Trustee or the Paying Agent pursuant to this Section. 

(f)        Any Certificateholder that is not a United States Person shall, on or
prior to the date such Certificateholder becomes a Certificateholder , (a) so notify the Owner Trustee and the Paying Agent, (b) (i) provide the Owner Trustee and the Paying Agent with applicable Internal Revenue Service Form W-8
(or successor forms), or (ii) notify the Owner Trustee and the Paying Agent that it is not entitled to an exemption from United States withholding tax or a reduction in the rate thereof on payments of interest. Any such Certificateholder agrees
by its acceptance of a Certificate, on an ongoing basis, to provide like certification for each taxable year and to notify the Owner Trustee and the Paying Agent should subsequent circumstances arise affecting the information provided the Owner
Trustee or the Paying Agent in clauses (a) and (b) above. The Owner Trustee and the Paying Agent shall be fully protected in relying upon, and each Certificateholder by its acceptance of a Certificate hereunder agrees to indemnify and hold
the Owner Trustee and the Paying Agent harmless against all claims or liability of any kind arising in connection with or related to the Owner Trustee’s and the Paying Agent’s reliance upon any documents, forms or information provided by
any Certificateholder to the Owner Trustee or the Paying Agent. 

Section 5.03      Method of Payment.     Subject to
Section 5.02(a), distributions required to be made to Certificateholders on any Payment Date shall be made to each Certificateholder of record on the related Record Date either by wire transfer, in immediately available funds, to the account of
such Certificateholder at a bank or other entity having appropriate facilities therefor, if such Certificateholder shall have provided to the Certificate Registrar and the Paying Agent appropriate written instructions at least five (5) Business
Days prior to such Payment Date, or, if not, by check mailed to such Certificateholder at the address of such Certificateholder appearing in the Certificate Register. 

  
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 Section 5.04      Accounting and Reports
to Certificateholders, the Internal Revenue Service and Others.  The Administrator on behalf of the Issuer shall (a) maintain (or cause to be maintained) the books of the Issuer on a calendar year basis on the cash method of
accounting, (b) deliver to the Certificateholders, as may be required by the Code and applicable Treasury Regulations or otherwise, such information provided to it as may be required to enable the Certificateholders to prepare their respective
federal income tax returns, (c) file such tax returns relating to the Issuer and make such elections as may from time to time be required or appropriate under any applicable State or federal statute or rule or regulation thereunder so as to
maintain the Issuer’s characterization as, for so long as the Depositor is the sole Certificateholder, a division or branch of the Depositor and, if not, as determined by the Depositor for federal income tax purposes, in all such cases on forms
prepared by the Administrator, (d) cause such tax returns to be signed in the manner required by Applicable Law and (e) collect or cause to be collected any withholding tax required to be withheld by the Owner Trustee or the Paying Agent
in accordance with Section 5.02(d) with respect to income or distributions to the Certificateholders. 

Section 5.05      Signature on Returns, Tax Matters
Partner.     The Owner Trustee shall sign on behalf of the Issuer any and all tax returns of the Issuer that are prepared and delivered to it for execution by the Administrator, unless Applicable Law requires a
Certificateholder to sign such documents, in which case such documents shall be signed by the Depositor if the Depositor is a Certificateholder at the applicable time. To the extent that the Issuer is treated as a partnership, the Depositor shall be
the “tax matters partner” of the Issuer pursuant to the Code if the Depositor is a Certificateholder at the applicable time. If the Depositor is not a Certificateholder at the applicable time, the “tax matters partner” of the
Issuer shall be the partner with the largest Percentage Interest in the Issuer. Under no circumstances shall the Owner Trustee be the “tax matters partner” of the Issuer. 

Section 5.06      Sarbanes-Oxley Act.     Notwithstanding
anything to the contrary herein or in any other Basic Document, the Owner Trustee shall not be required to execute, deliver or certify in accordance with the provisions of the Sarbanes-Oxley Act on behalf of the Issuer or any other Person, any
periodic reports filed pursuant to the Exchange Act, or any other documents pursuant to the Sarbanes-Oxley Act, as amended. 

Section 5.07      Optional Purchase.    The Servicer may at its
option purchase the Trust Estate (other than the Reserve Account) at a time and price specified in Section 9.01 of the Sale and Servicing Agreement, and such purchase of the Receivables and other property of the Issuer shall effect retirement
of the Certificates. Following such purchase, the Issuer shall dissolve, wind up and terminate pursuant to Section 7.01. 

  
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 ARTICLE VI 

AUTHORITY AND DUTIES OF OWNER TRUSTEE 

Section 6.01      Duties of Owner Trustee. 

(a)        The Owner Trustee undertakes to perform such duties, and only such duties,
as are specifically set forth in this Agreement and the other Basic Documents, including the administration of the Issuer in the interest of the Certificateholders, subject to the Basic Documents and in accordance with the provisions of this
Agreement. No implied covenants or obligations shall be read into this Agreement. 

(b)        Notwithstanding the foregoing, the Owner Trustee shall be deemed to have
discharged its duties and responsibilities hereunder and under the other Basic Documents to the extent the Administrator has agreed in the Administration Agreement to perform any act or to discharge any duty of the Owner Trustee hereunder or under
any other Basic Document, and the Owner Trustee shall not be liable for the default or failure of the Administrator to carry out its obligations under the Administration Agreement and shall have no duty to monitor the Administrator. 

(c)        The Owner Trustee may conclusively rely and shall be fully protected in
acting or refraining from acting on any document (whether in its original or facsimile form) believed by it to be genuine and to have been signed or presented by the proper Person. The Owner Trustee shall not be bound to make any investigation into
any fact or matter stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document. 

(d)        The Owner Trustee may not be relieved from liability for its own negligent
action, its own negligent failure to act or its own willful misconduct, except that: 

  (i)         this Section 6.01(d) shall not limit
the effect of Section 6.01(a) or (b); 
   (ii)       the
Owner Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer unless it is proved that the Owner Trustee was negligent in ascertaining the pertinent facts; and 

  (iii)      the Owner Trustee shall not be liable with respect to any
action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Sections 4.01, 4.03, 4.04 or 6.04. 

(e)        Subject to Sections 5.01 and 5.02, monies received by the Owner
Trustee hereunder need not be segregated in any manner except to the extent required by Applicable Law or the Sale and Servicing Agreement and the Indenture and may be deposited under such general conditions as may be prescribed by law, and the
Owner Trustee shall not be liable for any interest thereon. 

  
 21 

 (f)        The Owner Trustee shall not
take any action that (i) is inconsistent with the purposes of the Issuer set forth in Section 2.03 or (ii) would result in the Issuer’s becoming taxable as a corporation for federal income tax purposes. 

(g)       The Certificateholders shall not direct the Owner Trustee to take action that
would violate the provisions of this Section 6.01. 
 Section 6.02      Rights
of Owner Trustee.  The Owner Trustee is authorized and directed to execute and deliver the Basic Documents and each certificate or other document attached as an exhibit to or contemplated by the Basic Documents to which the Issuer is
to be a party, in such form as the Depositor shall approve, as evidenced conclusively by the Owner Trustee’s execution thereof. In addition to the foregoing, the Owner Trustee is authorized, but shall not be obligated, to take all actions
required of the Issuer pursuant to the Basic Documents. The Owner Trustee is further authorized from time to time to take such action as the Administrator recommends with respect to the Basic Documents. 

Section 6.03      Acceptance of Trusts and Duties.  Except as otherwise
provided in this Article, in accepting the trusts hereby created, the Owner Trustee acts solely as Owner Trustee hereunder and not in its individual capacity and all Persons having any claim against the Owner Trustee by reason of the transactions
contemplated by this Agreement or any Basic Document shall look only to the Trust Estate for payment or satisfaction thereof. The Owner Trustee accepts the trusts hereby created and agrees to perform its duties hereunder with respect to such trusts
but only upon the terms of this Agreement. The Owner Trustee also agrees to disburse all monies actually received by it constituting part of the Trust Estate upon the terms of the other Basic Documents and this Agreement. The Owner Trustee shall not
be liable or accountable hereunder or under any other Basic Document under any circumstances, except (i) for its own negligent action, its own negligent failure to act or its own willful misconduct or (ii) in the case of the inaccuracy of
any representation or warranty contained in Section 6.06 and expressly made by the Owner Trustee. In particular, but not by way of limitation (and subject to the exceptions set forth in the preceding sentence): 

(a)        the Owner Trustee shall at no time have any responsibility or liability
for or with respect to the legality, validity and enforceability of any Receivable held by the Issuer, or the perfection and priority of any security interest created by any such Receivable in any Financed Vehicle or the maintenance of any such
perfection and priority, or for or with respect to the sufficiency of the Trust Estate or its ability to generate the distributions and payments to be made to the Certificateholders under this Agreement or to Noteholders under the Indenture,
including: the existence and contents of any such Receivable on any computer or other record thereof; the validity of the assignment of any such Receivable to the Issuer or of any intervening assignment; the completeness of any such Receivable; the
performance or enforcement of any such Receivable; the compliance by the Seller or the Servicer with any warranty or representation made under any Basic Document or in any related document or the accuracy of any such warranty or representation or
any action of the Administrator, the Indenture Trustee or the Servicer or any subservicer taken in the name of the Owner Trustee; 

(b)        the Owner Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in accordance with the instructions of the Servicer, the Administrator, the Depositor or any Certificateholder, provided such instructions are in accordance with this Agreement and the other Basic Documents; 

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

(d)        under no circumstances shall the Owner Trustee be liable for indebtedness
evidenced by or arising under any of the Basic Documents, including the principal of and interest on the Notes or any amounts payable with respect to the Certificates; 

(e)        the Owner Trustee shall not be responsible for or in respect of and makes
no representation as to the validity or sufficiency of any provision of this Agreement or for the due execution hereof by the Depositor or for the form, character, genuineness, sufficiency, value or validity of any of the Trust Estate or for or in
respect of the validity or sufficiency of the other Basic Documents, the Notes or of any Receivables held by the Issuer or any related documents, and the Owner Trustee shall in no event assume or incur any liability, duty or obligation to any
Noteholder or to any Certificateholder, other than as expressly provided for herein and in the other Basic Documents; 

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

(g)        the Owner Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Agreement, or to institute, conduct or defend any litigation under this Agreement or otherwise or in relation to this Agreement or any other Basic Document, at the request, order or direction of any of the
Certificateholders, unless such Certificateholders have offered to the Owner Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities that may be incurred by the Owner Trustee therein or thereby; the right of the
Owner Trustee to perform any discretionary act enumerated in this Agreement or in any other Basic Document shall not be construed as a duty, and the Owner Trustee shall not be answerable for other than its negligence or willful misconduct in the
performance of any such act; and 
 (h)        The Owner Trustee shall not be
liable (i) for any losses due to forces beyond the control of the Owner Trustee, including strikes, work stoppages, acts of war or terrorism, insurrection, revolution, nuclear or natural catastrophes or acts of God and interruptions, loss or
malfunctions of utilities, communications or computer (software and hardware) services provided to the Owner Trustee by third parties caused by such events or (ii) for any damages in the nature of special, indirect or consequential damages,
however styled, including lost profits. 

  
 23 

 Section 6.04      Action upon Instruction
by Certificateholders. 
 (a)        Subject to Sections 4.05 and 4.06,
the Certificateholders may by written instruction direct the Owner Trustee in the management of the Issuer. 

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

(c)        Whenever the Owner Trustee is unable to decide between alternative courses
of action permitted or required by the terms of this Agreement or any other Basic Document, or is unsure as to the application, intent, interpretation or meaning of any provision of this Agreement or the other Basic Documents, the Owner Trustee
shall promptly give notice (in such form as shall be appropriate under the circumstances) to the Certificateholders requesting instruction as to the course of action to be adopted, and, to the extent the Owner Trustee acts in good faith in
accordance with any such instruction received, the Owner Trustee shall not be liable on account of such action to any Person. If the Owner Trustee shall not have received appropriate instructions within ten (10) days of such notice (or within
such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action, and the Owner Trustee shall have no liability to
any Person for any such action or inaction. 
 Section 6.05      Furnishing of
Documents.  The Owner Trustee shall furnish (a) to the Certificateholders, promptly upon receipt of a written request therefor, duplicates or copies of all reports, notices, requests, demands, certificates, financial statements
and any other instruments furnished to the Owner Trustee under the Basic Documents and (b) to the Noteholders and the Certificateholders, promptly upon receipt of a written request therefor, copies of the Receivables Purchase Agreement, the
Sale and Servicing Agreement, the Administration Agreement, the Indenture and this Agreement. 

Section 6.06      Representations and Warranties of Owner
Trustee.    The Owner Trustee hereby represents and warrants to the Depositor, for the benefit of the Certificateholders, that: 

(a)        It is a
[                    ] duly organized and validly existing under the laws of the United States. 

(b)        It has full power, authority and legal right to execute, deliver and
perform this Agreement, and has taken all necessary action to authorize the execution, delivery and performance by it of this Agreement. The eligibility requirements set forth in Section 6.13 are satisfied with respect to it. 

(c)        The execution, delivery and performance by it of this Agreement
(i) shall not violate any provision of any law or regulation governing the Owner Trustee or any order, writ, judgment or decree of any Governmental Authority applicable to the Owner 

  
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Trustee or any of its assets, (ii) shall not violate any provision of the corporate charter or by-laws of the Owner Trustee and (iii) shall not violate any provision of, or constitute,
with or without notice or lapse of time, a default under, or result in the creation or imposition of any lien on any properties included in the Issuer pursuant to the provisions of, any mortgage, indenture, contract, agreement or other undertaking
to which it is a party, which violation, default or lien could reasonably be expected to have a materially adverse effect on the Owner Trustee’s performance or ability to perform its duties as Owner Trustee under this Agreement or on the
transactions contemplated in this Agreement. 
 (d)        The execution, delivery
and performance by the Owner Trustee of this Agreement shall not require the authorization, consent or approval of, the giving of notice to, the filing or registration with, or the taking of any other action in respect of, any Governmental Authority
regulating the banking and corporate trust activities of the Owner Trustee. 

(e)        This Agreement has been duly executed and delivered by the Owner Trustee
and constitutes the legal, valid and binding agreement of the Owner Trustee, enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement
of creditors’ rights in general and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law. 

(f)        There are no pending or, to the best of its knowledge, threatened actions
or proceedings against the Owner Trustee before any court, administrative agency or tribunal which, if determined adversely to it, would materially and adversely affect its ability, either in its individual capacity or as Owner Trustee, as the case
may be, to perform its obligations under this Agreement or the Basic Documents. 

Section 6.07      Reliance; Advice of Counsel. 

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

(b)        In the exercise or administration of the trusts hereunder and in the
performance of its duties and obligations under this Agreement or the other Basic Documents, the Owner Trustee: (i) may act directly or through its agents, attorneys, custodians or nominees pursuant to agreements entered into with any of them,
and the Owner Trustee shall not be liable for the negligent conduct or misconduct of such agents, attorneys, custodians or nominees if such 

  
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agents, attorneys, custodians or nominees shall have been selected by the Owner Trustee with reasonable care; and (ii) may consult with counsel, accountants and other skilled professionals
to be selected with reasonable care and employed by it. The Owner Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the opinion or advice of any such counsel, accountants or other such Persons
and not contrary to this Agreement or any other Basic Document. 

Section 6.08      Owner Trustee May Own Certificates and
Notes.    The Owner Trustee in its individual or any other capacity may become the owner or pledgee of Certificates or Notes and may deal with the Depositor, the Administrator, the Indenture Trustee and the Servicer in
transactions in the same manner as it would have if it were not the Owner Trustee. 

Section 6.09      Compensation and Indemnity.  The Owner Trustee shall
receive as compensation for its services hereunder such fees as have been separately agreed upon before the date hereof between the Depositor and the Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by the Servicer for its
other expenses hereunder, including the reasonable compensation, expenses and disbursements of such agents, custodians, nominees, representatives, experts and counsel as the Owner Trustee may employ in connection with the exercise and performance of
its rights and its duties hereunder. The Servicer shall indemnify the Owner Trustee and its successors, assigns, agents, servants, officers, directors and employees in accordance with the provisions of Section 7.03 of the Sale and Servicing
Agreement. To the extent these fees and indemnification amounts are not paid by the Servicer, they will be paid out of Available Funds as described in the Sale and Servicing Agreement. The indemnities contained in this Section shall survive the
resignation or termination of the Owner Trustee or the termination of this Agreement. Any amounts paid to the Owner Trustee pursuant to this Section shall be deemed not to be a part of the Trust Estate immediately after such payment. 

Section 6.10      Replacement of Owner Trustee. 

(a)        The Owner Trustee may at any time give notice of its intent to resign and
be discharged from the trusts hereby created by giving written notice thereof to the Administrator; provided that no such resignation shall become effective, and the Owner Trustee shall not resign, prior to the time set forth in
Section 6.10(c). Upon giving such notice, the Owner Trustee will provide to the Depositor in writing and in form and substance reasonably satisfactory to the Depositor, all information reasonably requested by the Depositor in order to comply
with its reporting obligation under the Exchange Act with respect to the resignation of the Owner Trustee. The Administrator may appoint a successor Owner Trustee by delivering a written instrument, in duplicate, to the resigning Owner Trustee and
the successor Owner Trustee. If no successor Owner Trustee shall have been appointed and have accepted appointment within 30 days after the giving of such notice, the resigning Owner Trustee giving such notice may petition at the expense of the
Servicer any court of competent jurisdiction for the appointment of a successor Owner Trustee. The Depositor or the Administrator shall remove the Owner Trustee if: 

  (i)         the Owner Trustee shall cease to be
eligible in accordance with the provisions of Section 6.13 and shall fail to resign after written request therefor by the Administrator; 

  
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   (ii)      the Owner
Trustee shall be adjudged bankrupt or insolvent; 
   (iii)     a
receiver or other public officer shall be appointed or take charge or control of the Owner Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation; 

  (iv)     the Owner Trustee shall otherwise be legally incapable of
acting; or 
   (v)      the Owner Trustee shall fail to comply with
any of its obligations under this Agreement during the period that the Depositor is required to file Exchange Act Reports with respect to the Issuer and such failure is not remedied within the lesser of ten (10) calendar days and the period of
time in which the related Exchange Act Report is required to be filed. 

(b)        If the Owner Trustee resigns or is removed or if a vacancy exists in the
office of Owner Trustee for any reason the Administrator shall promptly appoint a successor Owner Trustee by written instrument, in duplicate (one copy of which instrument shall be delivered to the outgoing Owner Trustee and one copy to the
successor Owner Trustee) and shall pay all fees owed to the outgoing Owner Trustee. 

(c)        Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall not become effective, and no such resignation shall be deemed to have occurred, until a written acceptance of appointment is delivered by the successor Owner
Trustee to the outgoing Owner Trustee and the Administrator, and all fees and expenses due to the outgoing Owner Trustee are paid. Any successor Owner Trustee appointed pursuant to this Section shall be eligible to act in such capacity in
accordance with Section 6.13 and, following compliance with the preceding sentence, shall become fully vested with all the rights, powers, duties and obligations of its predecessor under this Agreement, with like effect as if originally named
as Owner Trustee. 
 (d)        The predecessor Owner Trustee shall upon payment of
its fees and expenses deliver to the successor Owner Trustee all documents, computer files and statements and monies held by it under this Agreement. The Administrator and the predecessor Owner Trustee shall execute and deliver such instruments and
do such other things as may reasonably be required for fully and certainly vesting and confirming in the successor Owner Trustee all such rights, powers, duties and obligations. 

(e)        Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section 6.10, the Administrator shall mail notice of the successor of such Owner Trustee to all Certificateholders, the Indenture Trustee and the Rating Agencies. 

Section 6.11    Merger or Consolidation of Owner Trustee.    Any Person
into which the Owner Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Owner Trustee shall be a party, or any Person succeeding to all or
substantially all of the corporate trust business of the Owner Trustee, shall be the successor of the Owner Trustee hereunder, provided such Person shall be eligible pursuant to Section 6.13, and without the execution or filing of any
instrument or any further act on the part of any of the parties hereto. The Owner Trustee shall 

  
 27 

 
provide the Depositor in writing and in form and substance reasonably satisfactory to the Depositor, all information reasonably requested by the Depositor in order to comply with its reporting
obligation under the Exchange Act with respect to the successor Owner Trustee. The Administrator and the predecessor Owner Trustee shall execute and deliver such instruments and do such other things as may reasonably be required for fully and
certainly vesting and confirming in the successor Owner Trustee all such rights, powers, duties and obligations. 

Section 6.12    Appointment of Co-Trustee or Separate Trustee. 

(a)        Notwithstanding any other provisions of this Agreement, at any time, for
the purpose of meeting any legal requirement of any jurisdiction in which any part of the Trust Estate or any of the Dealers may at the time be located, the Administrator and the Owner Trustee acting jointly shall have the power and shall execute
and deliver all instruments to appoint one or more Persons approved by the Owner Trustee to act as co-trustee, jointly with the Owner Trustee, or as separate trustee or trustees, of all or any part of the Trust Estate, and to vest in such Person, in
such capacity, such title to the Issuer, or any part thereof, and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Administrator and the Owner Trustee may consider necessary or desirable.
If the Administrator shall not have joined in such appointment within fifteen (15) days after the receipt by it of a request so to do, the Owner Trustee alone shall have the power to make such appointment. No co-trustee or separate trustee
under this Agreement shall be required to meet the terms of eligibility as a successor trustee pursuant to Section 6.13 and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant to Section 6.10. 

(b)        Each separate trustee and co-trustee shall, to the extent permitted by
Applicable Law, be appointed and act subject to the following provisions and conditions: 

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

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

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

(c)        Any notice, request or other writing given to the Owner Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall 

  
 28 

 
refer to this Agreement and the conditions of this Article. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property
specified in its instrument of appointment, either jointly with the Owner Trustee or separately, as may be provided therein, subject to all the provisions of this Agreement, specifically including every provision of this Agreement relating to the
conduct of, affecting the liability of, or affording protection to, the Owner Trustee. Each such instrument shall be filed with the Owner Trustee and a copy thereof given to the Administrator. 

(d)        Any separate trustee or co-trustee may at any time appoint the Owner
Trustee as its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Agreement on its behalf and in its name. If any separate trustee or co-trustee shall die,
become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Owner Trustee, to the extent permitted by Applicable Law, without the appointment of a new or
successor trustee. 
 Section 6.13    Eligibility Requirements for Owner
Trustee.   The Owner Trustee shall at all times satisfy the requirements of Section 26(a)(1) of the 1940 Act. The Owner Trustee shall at all times: (a) be authorized to exercise corporate trust powers; (b) have an
aggregate capital, surplus and undivided profits of at least $50,000,000 and be subject to supervision or examination by federal or State authorities; and (c) have (or have a parent which has) a long-term unsecured debt rating of at least BBB-
by Standard and Poor’s. If such corporation shall publish reports of condition at least annually, pursuant to Applicable Law or to the requirements of the aforesaid supervising or examining authority, then for the purpose of this Section, the
aggregate capital, surplus and undivided profits of such corporation shall be deemed to be its aggregate capital, surplus and undivided profits as set forth in its most recent report of condition so published. If at any time the Owner Trustee shall
cease to be eligible in accordance with the provisions of this Section, the Owner Trustee shall resign immediately in the manner and with the effect specified in Section 6.10. Notwithstanding any other term or provision of this Agreement, the
Owner Trustee shall comply at all times with subsection (a)(4)(i) of Rule 3a-7 of the 1940 Act. At all times, at least one trustee of the Issuer shall satisfy the requirements of Section 3807(a) of the Statutory Trust Act. 

Section 6.14    Withholding Certificate.     Prior to the first
Payment Date, the Administrator, on behalf of the Issuer, shall deliver to the Servicer a properly completed and executed Internal Revenue Service Form W-9. 

Section 6.15    Notice to Administrator of Repurchase Requests.    Not
later than the fifth day of the month following the end of a calendar quarter (or, if such day is not a Business Day, the immediately following Business Day), beginning
[            ], 201[  ], the Owner Trustee shall provide to the Administrator a notice in substantially the form of Exhibit D with respect to any requests received
by the Owner Trustee during the immediately preceding calendar quarter (or, in the case of the initial notice, since the Closing Date) that any Receivable be repurchased by the Depositor or the Seller pursuant to Section 3.03 of the Sale and
Servicing Agreement or pursuant to the Receivables Purchase Agreement. 

  
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 ARTICLE VII 

DISSOLUTION / TERMINATION 

Section 7.01      Dissolution / Termination. 

(a)        The Issuer shall dissolve in accordance with Section 3808 of the
Statutory Trust Act upon the optional purchase of the Trust Estate (other than the Reserve Account) by the Servicer pursuant to Section 5.07 or immediately prior to the date upon which is to occur the final distribution by the Paying Agent or
the Owner Trustee of all monies or other property or proceeds of the Trust Estate in accordance with the terms of the Indenture, the Sale and Servicing Agreement and Article V. The bankruptcy, liquidation, dissolution, death or incapacity of any
Certificateholder shall not (x) operate to terminate this Agreement or the Issuer or (y) entitle any Certificateholder’s legal representatives or heirs to claim an accounting or to take any action or proceeding in any court for a
partition or winding up of all or any part of the Issuer or Trust Estate or (z) otherwise affect the rights, obligations and liabilities of the parties hereto. 

(b)        Upon dissolution of the Issuer, the Administrator shall wind up the
business and affairs of the Issuer as required by Section 3808 of the Statutory Trust Act. Upon the satisfaction and discharge of the Indenture, and receipt of a certificate from the Indenture Trustee stating that all Noteholders have been paid
in full and that the Indenture Trustee is aware of no claims remaining against the Issuer in respect of the Indenture and the Notes, the Administrator, in the absence of actual knowledge of any other claim against the Issuer, shall be deemed to have
made reasonable provision to pay all claims and obligations (including conditional, contingent or unmatured obligations) for purposes of Section 3808(e) of the Statutory Trust Act and upon the written direction of the Certificateholders the
Owner Trustee shall cause the Certificate of Trust to be cancelled by filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3810 of the Statutory Trust Act, at which time the Issuer shall
terminate and this Agreement (other than Section 6.09) shall be of no further force or effect. 

(c)        Except as provided in Section 7.01(a), none of the Depositor or the
Certificateholders shall be entitled to revoke or terminate the Issuer. 
 ARTICLE VIII 

AMENDMENTS 

Section 8.01      Amendments Without Consent of Certificateholders. 

(a)        This Agreement may be amended by the Depositor and the Owner Trustee
without the consent of any of the Certificateholders (but with prior notice to the Rating Agencies) to: 

(i)         cure any ambiguity; 

  
 30 

  (ii)        correct or supplement any provisions in this
Agreement that may be defective or inconsistent with any other provision in this Agreement; 

  (iii)       add or supplement any credit, liquidity or other
enhancement arrangement for the benefit of all Certificateholders; 

  (iv)       add to the covenants, restrictions or obligations of
the Depositor or the Owner Trustee; 

  (v)        evidence and provide for the acceptance of the
appointment of a successor trustee with respect to the Trust Estate and add to or change any provisions as shall be necessary to facilitate the administration of the trusts hereunder by more than one trustee pursuant to Article VI; 

  (vi)       restrict transfers of the Certificates (or interest
therein) or as otherwise required to prevent the Issuer from being treated as a “publicly traded partnership” under Section 7704 of the Code; 

  (vii)      add provisions to, delete or modify the existing
provisions of this Agreement as appropriate to allow the Issuer to acquire and issue securities backed by any assets other than the Collateral, subject to satisfaction of the Rating Agency Condition with respect thereto; or 

  (viii)     add, change or eliminate any other provision of this Agreement
in any manner that shall not, as evidenced by an Opinion of Counsel, materially and adversely affect the interests of the Certificateholders. 

(b)        The consent of the Certificateholders shall be deemed to have been given
if the Depositor does not receive a written objection from such Person within ten (10) Business Days after a written request for consent shall have been given. 

Section 8.02      Amendments With Consent of the Noteholders and the
Certificateholders. 
 (a)        This Agreement may be amended from time to
time by the Depositor and the Owner Trustee with the consent of the Noteholders representing a majority of the outstanding Note Balance of the Controlling Class (unless, as evidenced by an Opinion of Counsel, such amendment shall not materially and
adversely affect the interests of the Noteholders), and the consent of the Certificateholders (unless, as evidenced by an Opinion of Counsel, such amendment shall not materially and adversely affect the interests of the Certificateholders) (which
consent, whether given pursuant to this Section or pursuant to any other provision of this Agreement, shall be conclusive and binding on such Persons and on all future Noteholders and Certificateholders, whether or not notation of such consent is
made upon the Notes or the Certificates for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement, or of modifying in any manner the rights of the Noteholders and
Certificateholders); provided, however, that no amendment may increase or reduce in any manner the amount of, or accelerate or delay the timing of, collection on payments on the Trust Estate or payments that are required to be made for
the benefit of the Noteholders without the consent of each Noteholder. 

  
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 (b)        Notwithstanding the
foregoing, this Agreement may not be amended in any way that would: (i) materially and adversely affect the Owner Trustee’s own rights, privileges, indemnities, duties or obligations under this Agreement, the other Basic Documents or
otherwise without the prior written consent of the Owner Trustee; or (ii) significantly change the permitted activities or powers of the Issuer even if such amendment would not have an adverse effect on the Holders of the Notes, without the
consent of the Holders representing a majority of the Note Balance. The Owner Trustee may request an officer’s certificate from a Responsible Officer of the Depositor certifying that any amendment does not have an adverse effect on the Holders
of the Notes or that the consent of the Holders representing a majority of the Note Balance has been obtained, which officer’s certificate may be conclusively relied upon by the Owner Trustee. 

Section 8.03      Form of Amendments. 

(a)        Prior to the execution of any amendment to this Agreement, the Depositor
shall provide each Rating Agency with written notice of the substance of such amendment. Promptly after the execution of any amendment, the Owner Trustee shall furnish a copy of such amendment to each Rating Agency, the Owner Trustee and the
Indenture Trustee. It shall be a condition of the execution and delivery of any amendments to be entered into pursuant to this Article that the Rating Agency Condition be satisfied with respect to such amendment. 

(b)        It shall not be necessary for the consent of Noteholders or the
Certificateholders pursuant to Section 8.02 to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such Person consents to the substance thereof. The manner of obtaining such consents (and any other
consents of Noteholders and the Certificateholders provided for in this Agreement or in any other Basic Document) and of evidencing the authorization of the execution thereof by Noteholders and the Certificateholders shall be subject to such
reasonable requirements as the Owner Trustee may prescribe. 
 (c)        Prior to
the execution of any amendment to this Agreement, the Owner Trustee shall be entitled to receive and rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and that all conditions
precedent to the execution and delivery of such amendment have been satisfied. The Owner Trustee may, but shall not be obligated to, enter into any such amendment which affects the Owner Trustee’s own rights, duties or immunities under this
Agreement or otherwise. 
 ARTICLE IX 

MISCELLANEOUS 

Section 9.01      No Legal Title to Trust Estate.    The
Certificateholders shall not have legal title to any part of the Trust Estate. The Certificateholders shall be entitled to receive distributions with respect to their undivided ownership interest therein only in accordance with Articles V and
VII. No transfer, by operation of law or otherwise, of any right, title, and interest 

  
 32 

 
of the Certificateholders to and in their ownership interest in the Trust Estate shall operate to terminate this Agreement or the trusts hereunder or entitle any transferee to an accounting or to
the transfer to it of legal title to any part of the Trust Estate. 

Section 9.02      Limitations on Rights of Others.   The provisions
of this Agreement are solely for the benefit of the Owner Trustee, the Depositor, the Certificateholders, the Administrator and, to the extent expressly provided herein, the Indenture Trustee and the Noteholders, and nothing in this Agreement,
whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Trust Estate or under or in respect of this Agreement or any covenants, conditions or provisions contained herein. 

Section 9.03      Notices.   All demands, notices and communications
upon or to the Depositor, the Servicer, the Administrator, the Indenture Trustee, the Owner Trustee or the Rating Agencies or Certificateholders under this Agreement shall be delivered as specified in Section 10.03 of the Sale and Servicing
Agreement. 
 Section 9.04      Severability of Provisions.   If
any one or more of the covenants, agreements, provisions or terms of this Agreement or the Certificates shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed enforceable to the fullest
extent permitted, and if not so permitted, shall be deemed severable from the remaining covenants, agreements, provisions and terms of this Agreement and the Certificates shall in no way affect the validity or enforceability of the other provisions
of this Agreement, the Certificates or the rights of the Certificateholders. 

Section 9.05      Counterparts.    This Agreement may be
executed in two or more counterparts (and by different parties on separate counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument. 

Section 9.06      Successors and Assigns.   All covenants and
agreements contained herein shall be binding upon, and inure to the benefit of, the Depositor, the Owner Trustee and Certificateholders and their respective successors and permitted assigns, all as herein provided. Any request, notice, direction,
consent, waiver or other instrument or action by a Certificateholder shall bind the successors and assigns of such Certificateholder. 

Section 9.07      Nonpetition Covenant.   The Owner Trustee, by
entering into this Agreement, and each Noteholder and the Certificateholders, by accepting the benefits of this Agreement, hereby covenant and agree that it shall not prior to the date which is one year and one day after the termination of the
Issuer and with respect to the Depositor, of each other such trust formed by the Depositor, acquiesce, petition or otherwise invoke or cause the Depositor or the Issuer to invoke in any proceeding involving a Government Authority for the purpose of
commencing or sustaining a case against the Depositor or the Issuer under any federal or State bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the
Depositor or the Issuer or any substantial part of its property or ordering the winding up or liquidation of the affairs of the Depositor or the Issuer. 

  
 33 

 Section 9.08      No
Recourse.     Each Certificateholder, or owner of a beneficial interest in the Certificates, acknowledges that the Certificates represents an undivided ownership interest in the Issuer only and does not represent
interests in or obligations of the Depositor, the Servicer, the Administrator, the Owner Trustee, the Indenture Trustee or any Affiliate thereof and no recourse, either directly or indirectly, may be had against such parties or their assets, except
as may be expressly set forth or contemplated in this Agreement or the other Basic Documents. 

Section 9.09      Headings.   The headings herein are for purposes
of reference only and shall not affect the meaning or interpretation of any provision hereof. 

Section 9.10    Governing Law.         THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF OR OF ANY OTHER JURISDICTION, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

Section 9.11    Indemnification by and Reimbursement of the
Servicer.    The Owner Trustee further acknowledges and accepts the conditions and limitations with respect to the Servicer’s obligation to indemnify, defend and hold the Owner Trustee harmless as set forth in
Section 7.03 of the Sale and Servicing Agreement. 
 Section 9.12    Submission to
Jurisdiction.    Each of the parties hereto hereby irrevocably and unconditionally: 

(a)        submits for itself and its property in any legal action or proceeding
relating to this Agreement, any documents executed and delivered in connection herewith or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York located
in the Borough of Manhattan, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof; 

(b)        consents that any such action or proceeding may be brought in such courts
and waives any objection that it may now or hereafter have to the venue of such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

(c)        agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Person at its address in Section 10.03 of the Sale and Servicing Agreement; and 

(d)        agrees that nothing herein shall affect the right to effect service of
process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction. 

  
 34 

 ARTICLE X 

REGULATION AB 

Section 10.01      The Intent of the Parties;
Reasonableness.    The parties hereto acknowledge and agree that the purpose of this Article is to facilitate compliance by the Depositor with the provisions of Regulation AB and related rules and regulations of the
Commission. The Depositor shall not exercise its right to request delivery of information or other performance under these provisions other than in good faith, or for purposes other than the Depositor’s compliance with the Securities Act, the
Exchange Act and the rules and regulations of the Commission thereunder (or the provision in a private offering of disclosure comparable to that required under the Securities Act). The Owner Trustee agrees to cooperate in good faith with any
reasonable request by the Depositor for information regarding the Owner Trustee which is required in order to enable the Depositor to comply with the provisions of Regulation AB, including Items 1109(a), 1109(b), 1117 and 1119 of Regulation AB as
such items relate to the Owner Trustee or to the Owner Trustee’s obligations under this Agreement. 

Section 10.02      Representations and Warranties.   The Owner
Trustee represents that: 
 (a)        the Owner Trustee is not an Affiliate of any
Item 1119 Party; 
 (b)        other than the transactions contemplated by the
Basic Documents, there are no relationships or transactions with respect to any Item 1119 Party and the Owner Trustee that are outside the ordinary course of business or on terms other than would be obtained in an arm’s-length transaction
with an unrelated third party that are material to the investors’ understanding of the Notes; and 

(c)        there are no Proceedings pending, or known to be contemplated by
Governmental Authorities, against the Owner Trustee, or of which the property of the Owner Trustee is subject, that are material to the Noteholders. 

Section 10.03      Information to Be Provided by the Owner Trustee. 

(a)        For so long as the Depositor is required to report under Regulation AB,
the Owner Trustee shall, as promptly as practicable, notify the Depositor, in writing, of (i) the commencement of, a material development in or, if applicable, the termination of, any and all Proceedings against the Owner Trustee or any and all
Proceedings of which any property of the Owner Trustee is the subject, that is material to the Noteholders and (ii) any such Proceedings known to be contemplated by Governmental Authorities. The Owner Trustee shall also notify the Depositor, in
writing, as promptly as practicable following notice to or discovery by a Responsible Officer of the Owner Trustee of any material changes to Proceedings described in the preceding sentence. In addition, the Owner Trustee will furnish to the
Depositor, in writing, the necessary disclosure regarding the Owner Trustee describing such Proceedings required to be disclosed under Item 1117 of Regulation AB, for inclusion in reports filed by or on behalf of the Depositor pursuant to the
Exchange Act. 

  
 35 

 (b)        For so long as the Depositor
is required to report under Regulation AB, the Owner Trustee shall (i) on or before the fifth Business Day of each January, April, July and October, provide to the Depositor such information regarding the Owner Trustee as is required for the
purpose of compliance with Items 1109(a), 1109(b) and 1119 of Regulation AB; provided, however, the Owner Trustee shall not be required to provide such information in the event that there has been no change to the information previously provided by
the Owner Trustee to the Depositor, and (ii) as promptly as practicable following notice to or discovery by a Responsible Officer of the Owner Trustee of any changes to such information, provide to the Depositor, in writing, such updated
information. Such information shall include, at a minimum: 

  (i)         the Owner Trustee’s name and form of
organization; 
   (ii)        a description of the extent
to which the Owner Trustee has had prior experience serving as a trustee for asset-backed securities transactions involving auto finance receivables; and 

  (iii)       a description of any affiliation between the Owner
Trustee and any of the following parties to a Securitization Transaction, as such parties are identified by name to the Owner Trustee by the Depositor in writing in advance of such Securitization Transaction: (1) the sponsor, (2) any
depositor, (3) the issuing entity, (4) any servicer or subservicer, (5) any other trustee, (6) any originator, (7) any significant obligor, (8) any enhancement or support provider and (9) any other material party
related to any Securitization Transaction. 
 In addition, the Owner Trustee shall provide a description of whether there is, and if so the
general character of, any business relationship, agreement, arrangement, transaction or understanding between the Owner Trustee and any above-listed party that is entered into outside the ordinary course of business or is on terms other than would
be obtained in an arm’s-length transaction with an unrelated third party, apart from the Securitization Transactions, that currently exists or that existed during the past two years and that is material to an investor’s understanding of
the Notes. 
 [SIGNATURES APPEAR ON NEXT PAGE] 

  
 36 

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

			
	CALIFORNIA REPUBLIC FUNDING, LLC        
	as Depositor
		
	By:	 	  

		 	Name:
		 	Title:

  
 [Additional Signature Pages
Follow] 

  
 [Signature Page to
Amended and Restated Trust Agreement – CRART 201[    ]-[    ]] 

 
			
	[                    ],
	as Owner Trustee
		
	By:  	 	  

		 	Name:
		 	Title:

  
  

[Additional Signature Pages Follow] 

  
 [Signature Page to
Amended and Restated Trust Agreement – CRART 201[    ]-[    ]] 

			
	In acknowledgement of its obligations as Servicer and Administrator, including, but not limited to, its obligations under Section 6.09:
	
	 CALIFORNIA REPUBLIC BANK,
 not in
its individual capacity but solely as
Servicer and Administrator

		
	By:	 	  

		 	Name:
		 	Title:

  
 [Additional Signature Page Follows] 

  
 [Signature Page to
Amended and Restated Trust Agreement – CRART 201[    ]-[    ]] 

			
	In acknowledgement of its obligations as Paying Agent and Certificate Registrar:
	
	
[                    ],

not in its individual capacity but solely as Paying Agent and Registrar

		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

  
 [Signature Page to
Amended and Restated Trust Agreement – CRART 201[    ]-[    ]] 

 EXHIBIT A 

FORM OF CERTIFICATE 
 THIS
CERTIFICATE IS SUBORDINATE TO THE NOTES TO THE EXTENT DESCRIBED IN THE TRUST AGREEMENT, THE SALE AND SERVICING AGREEMENT AND THE INDENTURE REFERRED TO HEREIN. 

THIS CERTIFICATE IS NOT GUARANTEED OR INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY GOVERNMENTAL AGENCY. 

THIS CERTIFICATE HAS NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
ANY STATE SECURITIES LAWS OR SECURITIES LAWS OF ANY OTHER JURISDICTION, AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM. IN ADDITION, THE TRANSFER OF THIS CERTIFICATE IS
SUBJECT TO CERTAIN RESTRICTIONS AND CONDITIONS SET FORTH IN THE TRUST AGREEMENT UNDER WHICH THIS CERTIFICATE IS ISSUED (A COPY OF WHICH IS AVAILABLE FROM THE OWNER TRUSTEE UPON REQUEST), INCLUDING RECEIPT BY THE OWNER TRUSTEE OF AN INVESTMENT LETTER
IN WHICH THE TRANSFEREE MAKES CERTAIN REPRESENTATIONS. 
 THIS CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR AN OBLIGATION OF CALIFORNIA
REPUBLIC FUNDING, LLC, CALIFORNIA REPUBLIC BANK, [                    ] OR ANY OF THEIR RESPECTIVE AFFILIATES. 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC, ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

  
 A-1 

 Registered 

Percentage Interest:  100% 
 R-1 

CALIFORNIA REPUBLIC AUTO RECEIVABLES TRUST 201[    ]-[    ] 

CERTIFICATE 
 evidencing a
fractional undivided beneficial interest in the California Republic Auto Receivables Trust 201[    ]-[    ] (the “Issuer”), the property of which includes a pool of motor vehicle retail
installment sale contracts and/or installment loans that are secured by new and used automobiles, sport utility vehicles and light-duty trucks sold by California Republic Bank, a California corporation authorized to transact a banking business
(“CRB”), to California Republic Funding, LLC, a Delaware limited liability company (the “Depositor”), and sold by the Depositor to the Issuer. The property of the Issuer has been pledged by the Issuer under the Indenture, dated
as of [                    ], 20[    ] (as amended or supplemented from time to time, the “Indenture”),
between the Issuer and [                    ], as trustee (the “Indenture Trustee”), to secure the payment of the Notes issued
thereunder. The interest represented by this Certificate is only that remaining after all obligations of the Issuer, including, in particular, the Notes, are fully satisfied. 

The Issuer was created pursuant to a Trust Agreement, dated as of
[                  ], 201[    ] (as amended or supplemented from time to time, the “Trust Agreement”), between the
Depositor and [                    ], as owner trustee (the “Owner Trustee”). To the extent not otherwise defined herein, the
capitalized terms used herein have the meanings assigned to them in the Trust Agreement and the Sale and Servicing Agreement, dated as of
[                    ], 20[    ] (as amended or supplemented from time to time, the “Sale and Servicing
Agreement”), among the Issuer, the Depositor, CRB, as Seller, Servicer, Administrator and Custodian, and the Indenture Trustee. 

This certifies that Cede & Co. is the registered owner of 100% nonassessable, fully paid, validly issued undivided
percentage interest in California Republic Auto Receivables Trust 201[    ]-[    ] and is entitled to all benefits of the Trust Agreement. 

This Certificate is subordinate to the Notes to the extent set forth in the Sale and Servicing Agreement, the Trust Agreement
and the Indenture. Subject to the foregoing, this Certificate represents a right to amounts in the Certificate Distribution Account distributable to Certificateholders. This Certificate is issued under and is subject to the terms, provisions and
conditions of the Trust Agreement, to which Trust Agreement the Holder of this Certificate by virtue of its acceptance hereof assents and by which such Holder is bound. 

A Certificateholder, by its acceptance of a Certificate, covenants and agrees that such Certificateholder shall not at any
time direct the Owner Trustee to take or to refrain from taking any action (a) if such action or inaction would be contrary to any obligation of the Issuer or the Owner Trustee under the Trust Agreement or any of the other Basic Documents or
would be contrary to Section 2.03 of the Trust Agreement, (b) that, for federal, State or local income, single business or franchise tax purposes, would cause the Issuer to be treated as an association

  
 A-2 

 
(or a publicly-traded partnership) taxable as a corporation; nor shall the Owner Trustee be obligated to follow any such direction, if given. With respect to any direction of the
Certificateholders, a Certificateholder will certify as to the compliance with this paragraph and the Owner Trustee shall be entitled to conclusively rely on any such certificate. 

Distributions on this Certificate shall be made as provided in the Trust Agreement by the Owner Trustee or Paying Agent by
wire transfer or check mailed to the Certificateholder of record in the Certificate Register without the presentation or surrender of this Certificate or the making of any notation hereon. Except as otherwise provided in the Trust Agreement and,
notwithstanding the above, the final distribution on this Certificate shall be made after due notice by the Owner Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency
designated for that purpose in the Borough of Manhattan, the City of New York. 
 Reference is hereby made to the further
provisions of this Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. In the event of any discrepancies between this Certificate and the terms of the Trust
Agreement, the Trust Agreement shall govern. 
 Unless the certificate of authentication hereon shall have been executed by
an authorized officer of the Owner Trustee or authenticating agent, by manual signature, this Certificate shall not entitle the Holder hereof to any benefit under the Trust Agreement or the Sale and Servicing Agreement or be valid for any purpose.

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

  
 A-3 

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

					
	CALIFORNIA REPUBLIC AUTO RECEIVABLES TRUST 201[    ]-[    ]
		
	By:  	 	
[                    ], not in its individual 
capacity, but

	solely as Owner Trustee	 	
			
	By:	 	  
	 	
		 	Authorized Signatory	 	

  
 Dated: 

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one
of the Certificates referred to in the within mentioned Trust Agreement. 
  

[To be authenticated by either signatory below] 
  

 

							
	[                    ],	    	[                    ],
	As Owner Trustee	    	    as Owner Trustee
		    		    	    By:  [                    ], as Authenticating Agent
				
	    By:	    	  
	    	    By:        	 	  

		    	      Authorized Signatory	    		 	Authorized Signatory

  
 A-4 

 [REVERSE OF CERTIFICATE] 

The Certificates do not represent an obligation of, or an interest in, Depositor, the Servicer, the Owner Trustee or any
Affiliates of any of them and no recourse may be had against such parties or their assets, except as expressly set forth or contemplated herein or in the Trust Agreement or the other Basic Documents. In addition, this Certificate is not guaranteed
by any governmental agency or instrumentality and is limited in right of payment to certain collections and recoveries with respect to the Receivables (and certain other amounts), all as more specifically set forth in the Trust Agreement and in the
Sale and Servicing Agreement and the Indenture. A copy of each of the Sale and Servicing Agreement, the Indenture and the Trust Agreement will be furnished by the Depositor to any Certificateholder promptly upon receipt by the Depositor of a written
request therefor. 
 The Trust Agreement permits, with certain exceptions therein provided, the amendment thereof and the
modification of the rights and obligations of the Depositor and the rights of Certificateholders under the Trust Agreement at any time by the Depositor and the Owner Trustee with the consent of the consent of the Noteholders representing a majority
of the Outstanding Note Balance of the Controlling Class and the Holders of the Certificates evidencing not less than a majority of the Percentage Interests. Any such consent by the Holder of this Certificate shall be conclusive and binding on such
Holder and on all future Holders of this Certificate and of any Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent is made upon this Certificate. The Trust Agreement also
permits the amendment thereof, in certain circumstances, without the consent of the Holders of any of the Certificates. 

As provided in the Trust Agreement and subject to certain limitations therein set forth, the transfer of this Certificate is
registerable in the Certificate Register upon surrender of this Certificate for registration of transfer at the offices or agencies of the Certificate Registrar designated by the Owner Trustee in the Borough of Manhattan, the City of New York,
accompanied by a written instrument of transfer in form satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new
Certificates of authorized denominations evidencing the same aggregate interest in the Issuer shall be issued to the designated transferee. The initial Certificate Registrar appointed under the Trust Agreement is
[                    ]. 

The Certificates are issuable only as registered Certificates, without coupons, in the Percentage Interests reflected
thereon. As provided in the Trust Agreement and subject to certain limitations therein set forth, including the transfer limitations and restrictions provided for therein, Certificates are exchangeable for new Certificates of authorized Percentage
Interests evidencing the same aggregate Percentage Interest, as requested by the Certificateholder surrendering the same. No service charge shall be made for any such registration of transfer or exchange, but the Owner Trustee or the Certificate
Registrar may require payment of a sum sufficient to cover any tax or governmental charge payable in connection therewith. 

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

  
 A-5 

 The obligations and responsibilities to the Certificateholders created by the
Trust Agreement and the Issuer created thereby shall terminate upon the payment to Certificateholders of all amounts required to be paid to them pursuant to the Trust Agreement and the Sale and Servicing Agreement and the disposition of all property
held as part of the Trust Estate. The Servicer of the Receivables may at its option purchase the Trust Estate at a time and price specified in the Sale and Servicing Agreement, and such purchase of the Receivables and other property of the Issuer
shall effect retirement of the Certificates; provided, however, that such right of purchase is exercisable only as of the last day of any Collection Period of which the Pool Balance is less than or equal to 10% of the Cutoff Date Pool
Balance. 
 The Certificates may not be acquired by (A) an employee benefit plan, as defined in Section 3(3) of
ERISA, that is subject to Title I of ERISA, (B) a plan described in Section 4975(e)(1) of the Internal Revenue Code that is subject to Section 4975 of the Internal Revenue Code, (C) a governmental plan, as defined in
Section 3(32) of ERISA, subject to any federal, state or local law which is, to a material extent, similar to the provisions of Section 406 of ERISA or Section 4975 of the Internal Revenue Code, (D) an entity whose underlying
assets include plan assets by reason of a plan’s investment in the entity (within the meaning of Section 3(42) of ERISA and Department of Labor Regulation 29 C.F.R. Section 2510.3-101) or (E) a person investing “plan
assets” of any such plan (including without limitation, for purposes of this sentence, an insurance company general account, but excluding any entity registered under the 1940 Act). By accepting and holding this Certificate, the Holder hereof
shall be deemed to have represented and warranted that it is not any of the entities described in clauses (A) through (E) of the preceding sentence. 

  
 A-6 

 ASSIGNMENT 

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

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE 
  

 
 (Please print or type name and address, including
postal zip code, of assignee) 
 the within Certificate, and all rights thereunder, and hereby irrevocably constitutes and
appoints                      , attorney, to transfer said Certificate on the books of the Certificate Registrar, with full power of
substitution in the premises. 
  
 Dated: 

 

	
	 1

	  
  

 
  
  

 

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

  
 A-7 

 EXHIBIT B 

FORM OF CERTIFICATE OF TRUST 

CERTIFICATE OF TRUST OF CALIFORNIA REPUBLIC AUTO RECEIVABLES TRUST 201[    ]-[    ] (the
“Issuer”), is being duly executed and filed on behalf of the Issuer by [                    ], as trustee, to form a
statutory trust under the Delaware Statutory Trust Act (12 Del. C. §3801, et seq. (the “Act”)). 

Name. The name of the statutory trust being formed hereby is CALIFORNIA REPUBLIC AUTO RECEIVABLES TRUST
201[    ]-[    ]. 
 Delaware Trustee. The name and business
address of the trustee of the Issuer in the State of Delaware is [                    ],
[                                         
       ], Attention: Corporate Trust Administration. 
 Effective Date. This
Certificate of Trust shall be effective upon filing. 
 [The remainder of the page is intentionally left blank] 

  
 B-1 

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

							
	
[                    ],

not in its individual capacity, but solely as owner trustee

			
	By:	 	  
	 	
	Name:	 		 	
	Title:	 		 	

  
 B-2 

 EXHIBIT C 

FORM OF CERTIFICATE PURCHASE AGREEMENT 

  
 C-1 

 EXHIBIT D 
  

FORM OF REPURCHASE REQUEST NOTICE 

                    ,
201     
  
 California Republic Bank 

18400 Von Karman, Suite 1100 
 Irvine, California 92612 

Attn: 

			
	Tel:	 	949-270-9700
	Fax: 	 	949-270-9799

  

					
	Re:	    	California Republic Auto Receivables Trust 201[_]-[_] Noteholder Request to
		    	 Repurchase Receivables             
	  	

 Reference is hereby made to (i) the Indenture, dated as of
[                    ], 20[    ] (the “Indenture”), between California Republic Auto Receivables Trust
201[    ]-[    ], as issuer (the “Issuer”), and [                    ], as
indenture trustee (the “Indenture Trustee”), and (ii) the Amended and Restated Trust Agreement of the Issuer, dated as of
[                    ], 20[    ], between California Republic Funding, LLC, as depositor (the
“Depositor”), and [                    ], as owner trustee (in such capacity, the “Owner Trustee”). Capitalized terms used
but not defined herein shall have the meanings given them in the Indenture. 
 [During the period from and including
        , 201     to but excluding         , 201    , the Owner Trustee received no requests
requesting that Receivables be repurchased by the Seller or the Depositor pursuant to Section 3.03 of the Sale and Servicing Agreement or Section 3.03 of the Receivables Purchase Agreement.] 

[During the period from and including         , 201     to but
excluding         , 201    , the Owner Trustee received one or more requests requesting that Receivables be repurchased by the Seller or the Depositor pursuant to
Section 3.03 of the Sale and Servicing Agreement or Section 3.03 of the Receivables Purchase Agreement. The details of such requests are set forth below:] 
  

					
	
Date of Request
  
	  	 Number of
Receivables 
 Subject to Request
  
	  	  

Aggregate Principal Balance

of Receivables Subject to

Request
  

	 	 	 
	 	  	 	  	 
	 	 	 
	 	  	 	  	 
	 	 	 
	 	  	 	  	 

  
 D-1 

											
		 		 	[                    ], not in its individual capacity but solely as Owner Trustee
					
		 		 	By:	 	  
	 	
		 		 		 	Name:	 		 	
		 		 		 	Title:	 		 	

  
 D-2

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