Document:

Exhibit

Exhibit 10.8

	
					
	SUMMARY OF COMPENSATION FOR 

	THE BOARD OF TRUSTEES OF 

	RAMCO-GERSHENSON PROPERTIES TRUST

	 
	 
	 

	 
	 
	 

	The following table sets forth the compensation program for non-employee Trustees:
	 

	 
	 
	 

	 
	 
	 

	Annual cash retainer (1)
	 
	$
	40,000
	

	Additional cash retainer:
	 
	 

	 
	Chairman
	100,000
	

	 
	Audit Committee chair
	15,000
	

	 
	Compensation Committee chair
	10,000
	

	 
	Nominating and Governance Committee chair
	10,000
	

	 
	Executive Committee chair
	5,000
	

	 
	Executive Committee members
	—
	

	 
	 
	 

	Annual equity retainer (value of restricted shares) (2)
	 
	90,000
	

	 
	 
	 

		
	(1) 
	The annual cash retainer is equal to $130,000 less the grant date fair value, which approximates $90,000, of the restricted shares granted in the applicable year.

		
	(2) 
	Grants are made under the Trust's 2012 LTIP.  The restricted shares vest over one year.  The grant is made on July 1st or, if not a business day, the business day prior to July 1st.  During 2017, 5,814 shares were granted to each Trustee that was in service as of the July 1st date. 

The Trust also reimburses all Trustees for all expenses incurred in connection with attending any meetings or performing their duties as Trustees.Blueprint

  Exhibit
10.1

 

INVENTORY FINANCING AND SECURITY AGREEMENT

 

 

I. THE PARTIES TO THIS AGREEMENT

 

This
Inventory Financing and Security Agreement
(“Agreement”) is effective as of February 16, 2018
and is made by and among the following parties:

 

A. 

Ally Bank (Ally Capital in Hawaii,
Mississippi, Montana and New Jersey), a Utah chartered state bank
(“Bank”), with a business office at 5851 Legacy
Circle, Suite 200, Plano, TX 75024; and

 

B. 

Ally Financial Inc., a Delaware
corporation (“Ally”) with a business office at
5851 Legacy Circle, Suite 200, Plano, TX 75024 (together
with Bank, the “Ally Parties” and Bank and Ally each
being, an “Ally Party”); and

 

C. 

RMBL Missouri, LLC, a Delaware entity,
with its principal executive office currently located at
4521 Sharon Road, Suite 370, Charlotte, NC 28211
(“Dealership”).

 

II. THE RECITALS

 

The
essential facts relied on by Bank, Ally and Dealership as true and
complete, and giving rise to this Agreement, are as
follows:

 

A. 

From time to time,
Dealership has and/or intends to acquire one or more new and used
automobiles, trucks, cars, vans, chassis, buses, trailers, motor
homes, recreational vehicles, towable recreational vehicles,
motorcycles, all-terrain vehicles, snowmobiles, motorized carts,
motor vehicles, other vehicles and/or campers (together with all
accessories, accessions, additions and attachments to such
vehicles, the “Vehicle(s)”) from one or more
manufacturer, distributor, dealers, auctioneer, merchant, customer,
broker, seller, or other supplier (“Vehicle
Seller(s)”), for the principal purpose of selling or leasing
them either to retail customers in the ordinary course of business
or to the wholesale market through recognized third-party auctions
that are approved by the Ally Parties.

 

B. 

To enable
Dealership to acquire Vehicles and hold them in inventory,
Dealership wants the Ally Parties to provide Dealership with
wholesale inventory floorplan finance accommodations by
i) advancing the purchase price of the Vehicles directly to
the Vehicle Sellers; ii) advancing funds to other third
parties who are not Vehicle Sellers; or iii) by loaning money
directly to Dealership for Vehicles that were previously purchased
from Vehicle Sellers by Dealership (“Inventory
Financing”). (Vehicles acquired with or held as a result of
Inventory Financing may be referred to as “Inventory Financed
Vehicles.”)

 

C. 

Bank is willing to
provide Dealership with Inventory Financing in accordance with all
of the provisions of this Agreement, and so long as Dealership
remains qualified and creditworthy in accordance with standards
established by Bank from time to time.

 

D. 

Ally is willing to
provide Dealership with Inventory Financing in accordance with all
of the provisions of this Agreement, and so long as Dealership
remains qualified and creditworthy in accordance with standards
established by Ally from time to time.

 

E. 

The Inventory
Financing will be governed by the terms of this Agreement.
Accordingly, this Agreement sets forth the rights and duties
between Bank and Dealership and between Ally and Dealership
concerning Inventory Financing, including establishment of a credit
line by which inventory financing advances may be made by either or
both of the Ally Parties, payment of principal, interest, and other
charges, the grant of security interests in collateral, and other
terms and conditions. It is a composition of various alternatives
available to Bank and Dealership and to Ally and Dealership, as
independent commercial parties. Before execution, each party has
carefully read this Agreement and each related document and has
consulted with or had an opportunity to consult with an
attorney.

 

 

 

III. THE AGREEMENT

 

In
consideration of the premises and the mutual promises in this
Agreement, which are acknowledged to be sufficient, Bank, Ally and
Dealership agree to the following:

 

A. 

Inventory Finance
Accommodations.

 

1. 

Establishment of a Committed Inventory
Financing Credit Line. Subject to the terms and conditions
of this Agreement,

 

(a) 

Ally commits to
provide Inventory Financing to Dealership.

 

(b) 

Bank commits to
provide Inventory Financing to Dealership.

 

(c) 

The sum of all
Inventory Financing by each Ally Party, plus any obligation of each
Ally Party to make specific advances to a Vehicle Seller or other
party, constitutes a single obligation of Dealership to such Ally
Party. The sum of all Inventory Financing plus the sum of all
obligations of both of the Ally Parties to make specific advances
to Vehicle Sellers or other parties constitutes the
Dealership’s “Wholesale
Outstandings.”

 

2. 

Amount of the Credit Line. As
of the effective date of this Agreement, the aggregate amount of
credit that may be extended by the Ally Parties pursuant to this
Agreement (the “Credit Line”) is up to $25,000,000.00,
subject to the restrictions contained herein. Further details about
the numbers, amounts and types of Vehicles allocated under the
Credit Line will be provided by the Ally Parties. Either or both of
the Ally Parties may modify the amount of credit it is willing to
extend under the Credit Line including the numbers, amounts, and
types of Vehicles allocated under it and any such modification will
not constitute an amendment to this Agreement. As such, the Credit
Line, including the numbers, amounts, and types of Vehicles, is
subject to change from time to time, at the discretion of either or
both of the Ally Parties.

 

3. 

Method of Providing Inventory
Financing. The Credit Line must be used exclusively for
Inventory Financing in any of the following ways:

 

(a) 

Advances Directly to Vehicle
Sellers. From time to time, upon notice from Dealership or
Vehicle Sellers, either or both of the Ally Parties may advance
money directly to Vehicle Sellers for Vehicles acquired or proposed
to be acquired by Dealership as Inventory Financed Vehicles. In the
case of Vehicles acquired or proposed to be acquired from Vehicle
Sellers approved by each of the Ally Parties for full purchase
price financing, one or more of the Ally Parties will advance the
actual reasonable dealer invoice amount or purchase price for each
Vehicle sold, shipped or designated for shipment by such Vehicle
Seller to Dealership. For any other Vehicles, the Ally Parties will
determine from time to time the amount that will be advanced to
Vehicle Sellers for the Vehicles, which ordinarily will be a
certain fixed percentage of the fair market wholesale value. The
Ally Parties will make payment in accordance with and in reliance
on any invoice, draft, debit, contract, advice or other
communication received by the Ally Parties from the Vehicle Seller.
The Ally Parties are not required to verify the order or shipment
of any Vehicle for which it pays a Vehicle Seller and are not
responsible for any nonconformity of the Vehicle, delivery, or
transaction between Dealership and a Vehicle Seller. If requested,
Dealership will promptly provide invoices, bills of sale, title
other transaction documents pertaining to such Vehicles. Any change
to the amount or percentage that the Ally Parties will advance or
the Ally Parties’ source for determining the fair market
wholesale value of a Vehicle will not constitute an amendment to
this Agreement.

 

2

 

 

 

(b) 

Advances Directly to or on behalf of
Dealership. From time to time, either or both of the Ally
Parties may advance money directly to Dealership or to other third
parties who are not Vehicle Sellers on behalf of Dealership to
finance Vehicles then owned or proposed to be acquired by
Dealership. The Ally Parties will determine from time to time the
amount that will be advanced to or on behalf of Dealership for the
Vehicles, which ordinarily will be a certain fixed percentage of
the fair market wholesale value of the Vehicles. Any change to the
amount or percentage that the Ally Parties will advance or the
source used by the Ally Parties in determining the fair market
wholesale value of the Vehicles will not constitute an amendment to
this Agreement. Upon request by either or both of the Ally Parties,
Dealership must provide the Ally Parties with satisfactory evidence
of the value, ownership, and title status of the Vehicle(s),
including the manufacturer’s certificate of origin or title
certificate, invoice or bill of sale, and the shipping receipt,
bill of lading, and the like.

 

4. 

Evidence of Inventory
Financing. The Ally Parties will maintain on their books and
records in accordance with their usual practices, one or more
accounts detailing the Inventory Financing, Wholesale Outstandings,
and all Interest, Principal Reductions, Other Charges and any other
related fees, costs, expenses, and payments owed by Dealership.
From time to time, ordinarily monthly, the Ally Parties will
furnish Dealership with statements of its account information
(“Wholesale Billing Statement”). If only one Wholesale
Billing Statement is provided by the Ally Parties, the Wholesale
Billing Statement will indicate (by account number or otherwise)
the Inventory Financing provided by each of the Ally Parties.
Unless Dealership advises the Ally Parties in writing of any
discrepancy on the Wholesale Billing Statement within ten (10)
calendar days of receipt, and absent manifest error, the Wholesale
Billing Statement will be deemed acknowledged and agreed to by
Dealership and conclusive proof of Dealership’s actual
obligation to each of the Ally Parties as of the date of the
Wholesale Billing Statement last received by
Dealership.

 

5. 

Credit Line Terms
Discretionary. Except as otherwise expressly stated in this
Agreement, either or both of the Ally Parties may modify the terms,
conditions, provisions, documentation, and administration of the
Credit Line, in their sole, absolute discretion. Neither of the
Ally Parties has any obligation whatsoever, under this Agreement or
otherwise, to provide Inventory Financing to Dealership under any
circumstance. Each Ally Party’s decision to provide Inventory
Financing to Dealership is solely within such party’s
exclusive judgment and discretion. Bank and/or Ally may refuse to
provide Inventory Financing to Dealership, may limit the purpose or
purposes for which the proceeds of any Inventory Financing may be
used, and may limit the aggregate amount of Inventory Financing, or
the amount of a single Inventory Financing advance, for any or no
reason, with or without cause. Bank and/or Ally may, but are not
required to, suspend any and all Inventory Financing accommodations
to Dealership, regardless of the actual amount of the Wholesale
Outstandings. Suspension may occur without any advance notice to or
demand upon Dealership or Default (as defined in Section III.H
below) of Dealership under this Agreement. Any suspension is
prospective only and will not affect the Inventory Financing
previously provided to Dealership or for which either or both of
the Ally Parties is obligated to provide to a Vehicle Seller. If
practical, the suspending Ally Party will provide notice to
Dealership of any suspension and reinstatement, but the failure to
do so does not vitiate the suspension or
reinstatement.

 

6. 

Other Financing Accommodations.
Upon Dealership’s request, either or both of the Ally Parties
may provide other forms of finance and / or credit accommodations
which arise out of or relate to the business operations of
Dealership and / or any of its owners, officers, or affiliates,
including, without limitation, the discount purchase of retail
installment sale and lease agreements, working capital, revolving
credit, equipment, and realty loans (such accommodations from
either of the Ally Parties being, the “Other Financing
Accommodations”). Except as otherwise expressly stated in
this Agreement or in any other written agreements between such Ally
Party and Dealership, the availability, amount, terms, conditions,
provisions, continuation, documentation, and administration of
Other Financing Accommodations are separate and distinct from the
Inventory Financing under this Agreement and may be provided, if at
all, only according to the terms and conditions of the written
agreement between such Ally Party and Dealership.

 

3

 

 

 

B. 

Interest, Principal Reductions, Late
Charges, Costs, Expenses and Other Charges and
Fees.

 

1. 

Interest Accrual, Rate, and Method of
Calculation.

 

(a) 

Wholesale
Outstandings owed to the Ally Parties will bear interest on and
from the day after each advance or loan through the date of
repayment in full. Interest will be at a per annum rate designated
from time to time by each of the Ally Parties and will be
determined using a 365/360 simple interest method of calculation,
unless expressly prohibited by law (“Interest”). Ally
and Bank may designate and charge different rates of Interest and
different rates of Interest may also be designated and charged by
each of the Ally Parties for different categories of Inventory
Financing (e.g., new vs. used Vehicles).

 

(b) 

The rate(s) of
Interest set forth in the Wholesale Billing Statement will
constitute the current effective Interest rate(s) between
Dealership and each of the Ally Parties and will continue in force
unless Dealership is notified to the contrary. In the event one or
both of the Ally Parties notifies Dealership of a change in the
interest rate(s) charged by such Ally Party(ies), the change in the
Interest rate(s) will not be effective if, within ten (10) calendar
days of delivery of notice of the change, Dealership terminates
this Agreement with such Ally Party(ies) and pays such Ally
Party(ies) in full the amount of Wholesale Outstandings owed to
such Ally Party(ies), together with Interest calculated at the
prior rate(s), along with all other amounts owed under this
Agreement (including, but not limited to those late charges, costs,
expenses and Other Charges described in Subsections III.B.4-6
below), and any other payment obligations due to such Ally
Party(ies). Notification of a change in the interest rate charged
by either or both of the Ally Parties will not constitute an
amendment to this Agreement. Any adjustment, credit, set-off, or
reduction in the rate(s) or amount of Interest will be set forth in
the Wholesale Billing Statement.

 

2. 

Maximum Interest. In no event
will Interest owed to either or both of the Ally Parties under this
Agreement exceed the maximum rate of interest allowed by law in
effect at the time it is assessed. Each of the Ally Parties and
Dealership intend to faithfully comply with applicable usury laws,
and this Agreement is to be construed in accordance with this
intent. If circumstances cause the actual or imputed interest
contracted for, charged, or received by either or both of the Ally
Parties to be in excess of the maximum rate of interest allowed by
law, Dealership must promptly notify the affected Ally Party(ies)
of the circumstance, and such Ally Party(ies) will either, at their
sole discretion, refund to Dealership, or credit the Wholesale
Outstandings owed by Dealership to such Ally Party(ies), with so
much of the imputed interest as will reduce the effective rate of
interest to an amount one-tenth of one per cent (0.10%) per annum
less than the maximum rate of interest allowed by law for the
applicable period.

 

3. 

Principal Reductions. From time
to time, one or both of the Ally Parties may require Dealership to
repay a portion of the principal amount as designated by such Ally
Party(ies) pertaining to one or more Vehicles for which such Ally
Party(ies) provide Inventory Financing (“Principal
Reductions”). Principal Reductions will be assessed,
ordinarily monthly, based upon:

 

 

4

 

 

(a) 

usage of the
Vehicle by Dealership as a Demonstrator or Shop Rental (each as
defined in Subsection III.E.4 below);

 

(b) 

the passage of
time; or

 

(c) 

decline in value
due to market conditions, uninsured damage, or other
factors.

 

Principal
Reductions may be billed to Dealership and will reduce the amount
of the Wholesale Outstandings when paid by Dealership. Any change
in the Principal Reductions required by either or both of the Ally
Parties will not constitute an amendment to this
Agreement.

 

4. 

Late Charge. Unless prohibited
by law, each of the Ally Parties may assess a late charge of up to
five percent (5%) of any amount owed to such Ally Party(ies) that
is not paid when due and payable (“Late Charge”). The
Late Charge is in addition to Interest.

 

5. 

Costs, Expenses, Fees. Unless
prohibited by law, Dealership must pay all expenses and reimburse
each of the Ally Parties for any cost, expense, or other
expenditures, including reasonable attorney fees and legal
expenses; amounts expended by the Ally Parties on behalf of
Dealership; collection and bankruptcy costs, fees and expenses; and
all other amounts incurred by each of the Ally Parties in the
enforcement of any right or remedy, collection of any Obligation
(as defined in subsection III.D.2 below), or defense of any claim
or action in respect of this Agreement.

 

6. 

Other Charges and Fees. The
Ally Parties may assess and Dealership will pay charges in
connection with Inventory Financing, including, by way of example,
transaction, processing, audit, collateral monitoring,
non-compliance, over-age, returned item, or other administrative
fees and expenses in connection with Inventory Financing
(“Other Charges”). Provided no Default has occurred,
the Ally Parties will provide advance notice of at least 30
calendar days of new charges or changes to existing
charges.

 

C. 

Payments by
Dealership.

 

1. 

Permissive Principal Payments.
Except as otherwise expressly stated in this Agreement, Dealership
may pay to the Ally Parties some or all of the Wholesale
Outstandings and any other payment obligations at any time before
they are due and payable without premium or penalty.

 

2. 

Required Payments. Dealership
must fully, promptly, and faithfully pay to the Ally Parties the
Wholesale Outstandings, Interest, Principal Reductions, Late
Charges, Other Charges, costs, expenses, fees and any other payment
obligations due under this Agreement, as follows:

 

(a) 

the principal
amount of the advance or loan by the Ally Parties for each
Inventory Financed Vehicle as and when such Vehicle is sold,
leased, consigned, gifted, exchanged, transferred, otherwise
disposed of, registered, placed into service, or no longer in the
possession of the Dealership, or if it is otherwise lost, stolen,
confiscated, missing, or otherwise not received, or if it is
damaged or destroyed, except if payment is due in accordance with
the Delayed Payment Privilege (as defined in
Subsection III.E.6 below);

 

(b) 

the total amount
specified in the Wholesale Billing Statement or other billing
statements for Interest, Principal Reductions, Late Charges, Other
Charges, costs, expenses, fees and any other payment obligations,
immediately upon receipt from the Ally Parties; and

 

5

 

 

 

(c) 

in any event, on
demand by either or both of the Ally Parties, except that absent
Default (as defined in Section III.H below), Dealership is
permitted sixty (60) calendar days to pay in full after demand is
made.

 

3. 

Method of Payment. All payments
must be made by Dealership to the Ally Parties in good funds by one
or more of the following methods: (i) draft, check, or other
negotiable instrument, (ii) wire transfer, electronic fund
transfer, automated clearing house transfer, or other electronic
means, or (iii) chattel paper assigned to one of the Ally Parties
that is acceptable to such Ally Party in its sole discretion. Upon
request by either or both of the Ally Parties, Dealership must make
all payments to such Ally Party(ies) in immediately available
funds, certified check, bank check, and the like. Dealership must
remit all payments owed to Ally and Bank under this Agreement to
Ally at the local business office set forth in Section I.A
above, or any other place as each of the Ally Parties designates
from time to time.

 

4. 

“Full” Payment
Defined. The requirement for making payments
“fully” as set forth in this Agreement means that the
required payment amount must be actually remitted to and received
by the Ally Parties in whole, without setoff, recoupment, or
netting of any other amounts which are or may be due Dealership by
either of the Ally Parties or any affiliate of either of the Ally
Parties. This does not include funds actually received by the Ally
Parties from or on behalf of Dealership for specific application to
a required payment by way of:

 

(a) 

subvention,
discount, subsidy, support, or supplementation from a Vehicle
Seller; or

 

(b) 

credit, rebate,
bonus, debit, disbursement, or other payment from either of the
Ally Parties or any other person for the purchase of chattel paper,
distribution from finance reserve accounts, application of account
balances, and the like.

 

Absent
payment actually being remitted by Dealership to the Ally Parties,
payment is not “fully” made because either or both of
the Ally Parties have:

 

(a) 

a right of setoff,
recoupment, and the like;

 

(b) 

a Security Interest
in or an assignment of Collateral (each as defined in
Section III.D below), or the proceeds thereof; or

 

(c) 

a direct or
indirect claim against a Vehicle Seller, surety, guarantor, or any
other person.

 

Dealership’s
obligation to pay each of the Ally Parties as set forth in this
Agreement is independent of any other rights that Dealership or
either of the Ally Parties may have to effect payment from other
sources and persons, and neither of the Ally Parties has any duty
to undertake the enforcement of any other rights.

 

5. 

“Prompt” Payment
Defined. The requirement for making payments
“promptly” as set forth in this Agreement means that
the required payment amount must be tendered to the Ally Parties
immediately after the event causing the payment to become due and
payable (e.g., demand by either or both of the Ally Parties, sale
of a Vehicle by Dealership, the Dealership no longer having
possession of a Vehicle, and the like). In their sole discretion,
either or both of the Ally Parties may permit more time between the
event and payment due date to take into account factors such as
delays in the administration, processing, and delivery of the
payments (“Release Period”). The Release Period is
available only for payments required under Subsection III.C.2(a)
above. The existence, duration, terms, and continuation of the
Release Period are subject to change from time to time by each of
the Ally Parties. Changes in the Release Period by the Ally Parties
do not constitute amendments of this Agreement.

 

6

 

 

 

6. 

“Sold” Defined.
“Sold” as set forth in this Agreement means the
delivery or transfer of ownership, title or interest in the
property by Dealership to a third party.

 

7. 

Source and Application of
Payment. The source of all payments due under this Agreement
is presumptively deemed to be Collateral (as defined in
Subsection III.D.1, below). Absent Default (as defined in
Subsection III.H below), the Ally Parties will apply payments
pursuant to Dealership’s instructions. Absent instruction
from Dealership or in the event of Default, the Ally Parties may
apply payments to any obligation due and owing by Dealership under
this Agreement or under Other Financing Accommodations. A payment
is not final to the extent of any defeasance of it by application
of law. Payment made by check, draft, or other instrument will be
deemed made by Dealership not later than one (1) business day after
the instrument is accepted by the payor bank. Except as otherwise
provided in any SmartCash Agreement between Dealership and either
or both of the Ally Parties, payments made by wire transfer,
electronic fund transfer, automated clearing house transfer, and
other electronic means will be deemed made by Dealership upon
posting of such payment by the Ally Parties.

 

D. 

The Ally Parties’ Security
Interests.

 

1. 

Grant of Security Interest.
Dealership hereby grants to each of Bank and Ally a continuing
security interest in and a collateral assignment of
(“Security Interest”) all of the following described
property in which Dealership has or may have any rights, wherever
located, whether now existing or hereafter arising or acquired and
any and all accessions, additions, attachments, replacements,
substitutions, returns, profits, and proceeds in whatever form or
type, of any of the property
(“Collateral”):

 

all
Vehicles, including but not limited to those for which either of
the Ally Parties provides Inventory Financing; other inventory;
equipment; fixtures; accounts, including factory open accounts of
Dealership; deposit and other accounts with banks and other
financial institutions; cash and cash equivalents; general
intangibles; all documents; instruments; investment property; and
chattel paper.

 

2. 

The Obligations Secured. The
Collateral secures payment and performance of all debts,
obligations, and duties of Dealership to Bank and Ally of every
kind and description, now existing or hereafter arising under this
Agreement, Other Financing Accommodations, or otherwise, whether
primary or secondary, absolute or contingent, due or to become due,
direct or indirect, presently contemplated or not contemplated by
Bank, Ally or Dealership, or otherwise designated by the parties as
secured or unsecured (“Obligations”).

 

3. 

Status of Collateral. The
Collateral is held by Dealership in trust for each of the Ally
Parties. The Collateral must be and remain free from all taxes,
confiscations, assessments, forfeitures, loss, destruction,
impairment, liens, security interests, pledges, claims, and
encumbrances except for:

 

(a) 

the Security
Interest arising under this Agreement or other agreement in favor
of the Ally Parties or their affiliates;

 

(b) 

purchase money
security interests in non-Vehicle Collateral; and

 

(c) 

other security
interests to which each of the Ally Parties specifically consents
in writing.

 

 

7

 

 

The
grant of the Security Interest and the execution of any document,
instrument, promissory note, or the like, in connection with it or
the Obligations do not constitute payment or performance of any of
the Obligations, except to the extent of actual, indefeasible
payment of the Obligations from the realization by Dealership or
the Ally Parties of the Collateral or otherwise. The Security
Interest continues to the full extent provided in this Agreement
until all Obligations are fully and indefeasibly paid and
performed, even after this Agreement is terminated by Bank, Ally
and/or Dealership or if the Credit Line is from time to time
modified, suspended, or terminated and reestablished.

 

4. 

Perfection of Security
Interest. The Ally Parties may each file financing
statements, mark chattel paper, notify account debtors, note liens
on documents of title, and the like, in order to establish,
confirm, and maintain a perfected Security Interest in the
Collateral. Dealership will execute and deliver any documents
necessary and appropriate for these purposes and otherwise
irrevocably appoints each of the Ally Parties to do so. Each of the
Ally Parties may require Dealership to pay any fee, cost, tax, or
assessment required by any government entity to perfect and / or
maintain each of the Ally Parties’ Security Interest in the
Collateral. All financing statements previously filed by either or
both of the Ally Parties are hereby ratified and authorized by
Dealership as of the date of filing.

 

5. 

Protection of Security
Interest. Unless expressly prohibited by law, upon either of
the Ally Parties’ request, Dealership must
immediately:

 

(a) 

turn over to Ally
or some other party designated by the Ally Parties custody or
control of all manufacturer’s certificates of origin,
certificates of title, documents of title, bills of sale, invoices,
and other records or instruments of ownership by Dealership
pertaining to the Vehicles;

 

(b) 

establish and
maintain an account, separate from other Dealership accounts, at a
federally insured financial institution with which Dealership
and/or its affiliates have had no business or lending relationship
for a minimum of six (6) months before setting up the account, into
which cash, instruments, and other proceeds of Collateral are to be
deposited and segregated from other funds of
Dealership;

 

(c) 

protect and defend
the Collateral against the claims and demands of all other persons,
including, but not limited to obtaining waivers from landlords,
depository institutions and other parties which have access to or
control over the Ally Parties’ Collateral or proceeds of the
Ally Parties’ Collateral; and

 

(d) 

permit
representative(s) of each of the Ally Parties to, and ensure that
such representatives have all necessary permission, access and
authority to, monitor, audit and inspect Collateral by taking one
or more of the following actions:

 

(i.) 

to enter any
locations where Dealership conducts business or maintains
Collateral, and to remain on the premises for such time as such
Ally Party(ies) may deem desirable;

 

(ii.) 

to take possession
and control over certificates of origin, title, and keys with
respect to each Vehicle comprising Dealership’s inventory or
equipment;

 

(iii.) 

to take
constructive or actual possession and control over all documents,
books, records, papers, accounts, chattel paper, electronic chattel
paper, instruments, promissory notes, general intangibles, payment
intangibles, supporting obligations, contract rights, software, or
any similar types of tangible or intangible property relating to or
comprising the Collateral;

 

(iv.) 

to receive payment
of all Collateral proceeds; and

 

(v.) 

to take whatever
additional actions as either or both of the Ally Parties may deem
necessary or desirable to protect and preserve the Collateral, and
to carry out, and to protect and preserve each of the Ally
Parties’ security rights and remedies.

 

8

 

 

 

6. 

Offset. In addition to the
Security Interest, Bank has an absolute and continuing right of
offset, recoupment, netting-out, and any other legal or equitable
right to credit those assets of Dealership in the possession or
control of Bank against any Obligations of Dealership to Bank,
whether then matured, liquidated, or due. Ally has an absolute and
continuing right of offset, recoupment, netting-out, and any other
legal or equitable right to credit those assets of Dealership in
the possession or control of Ally against any Obligations of
Dealership to Ally, whether then matured, liquidated, or
due.

 

7. 

Assignment of Accounts Due or to
Become Due. Dealership assigns to each of Bank and Ally
accounts which are due or to become due to Dealership from any
account debtors or other payment obligors (including banks and
other depositories) of Dealership (such parties being
“Account Debtors”). Dealership hereby authorizes and
empowers each of Bank and Ally to demand, collect and receive from
Account Debtors, and give such parties binding receipts for, all
sums due and/or to become due and, in Dealership’s name or
otherwise, to prosecute suits therefor. With or without a default,
each of the Ally Parties may, at any time notify Dealership’s
Account Debtors to make payment directly to the Ally Parties of
amounts in which the Ally Parties have a security interest.
Dealership unconditionally and irrevocably authorizes and instructs
each of its Account Debtors to make payment directly to the Ally
Parties as instructed, and authorizes Account Debtors to rely on a
copy of this Agreement as evidence of the authorization and
instruction. The Ally Parties will account to Dealership for all
sums received pursuant to this assignment and applied in the manner
described in Subsection III.C.7 above. This assignment is
irrevocable without the prior written consent of each of the Ally
Parties and is provided as additional security for and not as
payment of obligations now or hereafter arising to the Ally
Parties. Dealership hereby appoints each Bank and Ally as its agent
and attorney-in-fact for the sole purpose of executing or
endorsing, on Dealership’s behalf, any document, check or
other instrument necessary to cause payment of sums assigned
hereunder, or to perfect Bank’s and/or Ally’s security
interest in the aforesaid accounts and payment
intangibles.

 

8. 

Direct Collection of
Collateral. With or without a default, Dealership hereby
authorizes and empowers each of Bank and Ally to take immediate
possession of the Collateral from any person then in possession of
Collateral, and to give such person(s) binding receipts for such
Collateral in Dealership’s name. Dealership unconditionally
and irrevocably authorizes and instructs any person in possession
of Collateral at any time to turn Collateral over to the Ally
Parties as instructed, and authorizes all such persons to rely on a
copy of this Agreement as evidence of the authorization and
instruction. The Ally Parties will account to Dealership for all
Collateral received pursuant to this assignment. This authorization
is irrevocable without the prior written consent of each of the
Ally Parties and is provided as additional security for and not as
payment of obligations now or hereafter arising to the Ally
Parties. Dealership hereby appoints each Bank and Ally as its agent
and attorney-in-fact for the sole purpose of executing or
endorsing, on Dealership’s behalf, any document, check or
other instrument necessary to cause any person in possession of
Collateral to turn such Collateral over to the Ally
Parties.

 

E. 

Dealership’s Handling of
Vehicles.

 

1. 

Ownership and Taxes. Dealership
will have and maintain absolute title to and ownership of each
Vehicle, subject to each Ally Party’s respective Security
Interest in the Vehicle. Dealership will pay all taxes and
assessments at any time levied on any Vehicle as and when they
become due and payable.

 

2. 

Location. Dealership will keep
all Vehicles financed by the Ally Parties at Dealership’s
customary retail business location(s), at warehouse locations
owned, leased or otherwise controlled by Dealership, or at
locations specifically approved in writing by the Ally Parties
(after written request by Dealership), and will not remove them
from those locations, except:

 

9

 

 

 

(a) 

for temporary
relocation for repair, restoration, governmental inspection, and
the like;

 

(b) 

to the extent
authorized by each of the Ally Parties in writing, as consistent
with the usage of the Vehicle as a Demonstrator or Shop Rental
(each as defined in Subsection III.E.4 below);

 

(c) 

to the extent
authorized by each of the Ally Parties in writing, for bailment to
another person for upfitting, completion, upgrading, modification,
and the like; or

 

(d) 

to the extent
authorized by each of the Ally Parties in writing, for storage or
display at a temporary location.

 

3. 

Condition. Dealership will keep
Vehicles in good operating condition and repair, in good and
marketable condition and will not alter or substantially modify any
of them, except as otherwise contemplated in Subsection III.E.2(c)
above. Dealership will keep new Vehicles brand new, unused, and
undamaged and will keep used Vehicles substantially in the same or
better condition as when first acquired by Dealership, except for
changes resulting from incidental use or depreciation or as
otherwise contemplated in Subsection III.E.4 below.

 

4. 

Usage. Dealership will not use
Vehicles illegally or improperly. Dealership will hold and consider
them as inventory only for storage, exhibition, sale or, in the
case of Vehicles other than “Recreational Vehicles,”
lease to retail customers in the ordinary course of business (for
purposes of this Agreement, towable recreational vehicles, motor
homes, trailers, campers and other Vehicles that the Ally Parties
in their sole discretion deem to be recreational vehicles are
defined as “Recreational Vehicles”), except as
follows:

 

(a) 

Demonstrators. From time to
time, after receiving prior written authorization from the Ally
Parties, Dealership may use one or more Vehicles for demonstration
and promotional purposes (“Demonstrator”), pursuant to
the following additional terms and conditions:

 

(i.) 

Dealership may
permit a potential customer to use and examine any Vehicle for the
purpose of inspecting, test-driving, and considering the purchase
or lease of a Vehicle.

 

(ii.) 

Upon approval by
each of the Ally Parties, Dealership may provide a Vehicle to a
person whose use of it will directly or indirectly promote the
Dealership’s business including:

 

● 

owners or employees
of the Dealership;

● 

service customers,
provided the Vehicle is for local use, short duration, and no fee
is assessed;

● 

special persons
associated with, but not employed by, Dealership (e.g., family,
professionals, athletes); and

● 

a school board or
accredited educational institution for use in driver education
classes; provided, however, that Recreational Vehicles are not
permitted for such use.

 

(iii.) 

Dealership must
provide each of the Ally Parties with the following information as
to any Vehicle used as a Demonstrator:

 

● 

vehicle
identification number;

● 

date that Vehicle
is placed in service as a Demonstrator;

 

10

 

 

● 

date that Vehicle
is removed from service as a Demonstrator;

● 

whether Vehicle is
used in a driver education training program; and

● 

any additional
information or documents that either or both of the Ally Parties
may request from time to time.

 

(iv.) 

Upon either or both
of the Ally Parties’ request, Demonstrators are subject
to:

 

● 

a term of no more
than twelve months;

● 

inspection by each
of the Ally Parties (including all related documents);

● 

reductions in
principal balance in an amount determined by such Ally
Party(ies);

● 

removal from
service as a Demonstrator; and

● 

any other
limitation imposed by either or both of the Ally Parties from time
to time.

 

(v.) 

Dealership must
obtain and maintain adequate types and levels of insurance coverage
for vehicles used as Demonstrators.

 

(b) 

Shop Rentals. From time to
time, after receiving prior written authorization from the Ally
Parties, Dealership may use one or more Vehicles for short term
rental to customers (“Shop Rental”), pursuant to the
following additional terms and conditions:

 

(i.) 

Dealership must
request permission from each of the Ally Parties to make the
designation and use of the Vehicle as a Shop Rental. The request
must be made in advance on a form provided by the Ally Parties for
this purpose and include a detailed description of the Vehicle
proposed for designation as a Shop Rental, including:

 

● 

Vehicle
information: vehicle identification number; new or used status;
stock number;

● 

Shop Rental service
information: term of service; effective date of service
period;

● 

Vehicle financing
information: amount financed; monthly amortization; first payment
due date; balloon payment; and

● 

any additional
information or document that either or both of the Ally Parties may
request from time to time.

 

(ii.) 

The Ally Parties
may approve or deny the request for a Shop Rental and may rescind
any approval previously granted. Any approval must be in
writing.

 

(iii.) 

The Shop Rental
must be confined to a customer of Dealership who is in need of a
temporary replacement motor vehicle:

 

● 

while the
customer’s vehicle is being repaired by
Dealership;

● 

for a thirty (30)
day period following theft of the customer’s motor vehicle;
or

● 

pending delivery of
a new motor vehicle to customer pursuant to a bona fide order with
Dealership.

 

(iv.) 

Unless changed by
either or both of the Ally Parties in their sole discretion,
Dealership must make monthly principal reduction payments in the
amount designated from time to time by the such Ally Party(ies) for
the Shop Rental plus monthly interest or other service charges
established by each of the Ally Parties from time to
time.

 

 

11

 

 

(v.) 

A Vehicle may not
be used as a Shop Rental for a term longer than the term specified
in the written approval provided by the Ally Parties, unless each
of the Ally Parties consents in writing to a longer
period.

 

(vi.) 

Dealership must
maintain adequate levels of insurance coverage on the Shop Rental,
including comprehensive and collision coverage insuring each of the
Ally Parties and Dealership (as their interests may appear), and
liability insurance coverage insuring Dealership and the Shop
Rental user in an amount equal to or greater than: (a) the
minimum amount required by the Ally Parties; and (b) the
minimum required by law.

 

(vii.) 

Dealership must
immediately notify each of the Ally Parties whenever a Shop Rental
ceases to be used in this way by reason of its sale, lease,
re-designation by either or both of the Ally Parties or Dealership,
or otherwise.

 

(viii.) 

All other terms and
conditions of this Agreement will apply to a Shop
Rental.

 

5. 

Inspection. Without any advance
notice to Dealership, each of the Ally Parties may at all times
have access to, examine, audit, appraise, verify, protect, or
otherwise inspect all Vehicles financed by either of the Ally
Parties or otherwise located at a location formally approved by the
Ally Parties as frequently as each of the Ally Parties elects. With
reasonable advance notice to Dealership, each of the Ally Parties
may have access to, examine, audit, appraise, verify, protect, or
otherwise inspect Vehicles not financed by either of the Ally
Parties and not located at a location formally approved by the Ally
Parties. In either case, the inspection may include examination and
copying of all documents, titles, certificates of origin, invoices,
instruments, chattel paper, computer records, bank statements, and
all other books and records of the Dealership of or pertaining to
the Vehicles or to determine compliance with this Agreement. Bank
and Ally each have Dealership’s continuing consent to enter
the Dealership’s premises to carry out inspections. If
Vehicles are located anywhere other than Dealership’s
premises, Dealership must ensure that Bank and Ally each have
continuing consent to enter the premises to carry out inspections.
In connection with the inspection, the Ally Parties may be assisted
by, cooperate with, or discuss the financial and business affairs
of Dealership with any of the officers, owners, employees,
sureties, creditors, or agents of Dealership, or with any person
who appears to have authority over the premises where Vehicles are
located. Each of the Ally Parties may contact Dealership’s
customers to verify certain information material to the possession,
acquisition, sale, or lease of any Vehicle.

 

6. 

Disposition. Dealership will
not sell, lease, transfer, or otherwise dispose of any Vehicle,
except to retail customers in the ordinary course of business or to
the wholesale market through recognized third-party auctions that
are approved by the Ally Parties; provided, however, if full
payment to Dealership by a customer to whom more than one Vehicle
(and such Vehicles are not Recreational Vehicles) is sold per
individual transaction (“Delayed Payment Customer”) is
not made to the Dealership as and when the Vehicles are delivered
to the Delayed Payment Customer (“Delayed Payment
Vehicles”), then Dealership is expressly prohibited and has
no authority to dispose of the Delayed Payment Vehicles, except
pursuant to the following additional terms and conditions (the
“Delayed Payment Privilege”):

 

(a) 

From time to time,
Dealership may request both of the Ally Parties’ approval to
sell, transfer, or otherwise dispose of Delayed Payment Vehicles
pursuant to the Delayed Payment Privilege by completing the
applicable form provided by the Ally Parties. The Ally Parties may
approve or deny the request or may rescind a previously granted
approval. Any approval must be in writing and is limited, in each
instance, to the express terms and conditions of the approval,
which terms and conditions may include one or more of the
following:

 

 

12

 

 

(i.) 

continuation in
full force and effect via acknowledgment, consent or otherwise of
the Delayed Payment Customer or other party having an interest in
the Delayed Payment Vehicles, of each of the Ally Parties’
first priority perfected security interest in the Delayed Payment
Vehicles until payment is made directly to Ally or jointly to
Dealership and Ally;

 

(ii.) 

direct assignment
to each of the Ally Parties by Dealership of the purchase price
owed to Dealership and notice of the assignment and demand for
payment to the Delayed Payment Customer or other party having an
interest in the Delayed Payment Vehicles;

 

(iii.) 

establishment of
additional credit enhancements in the form of restricted cash
deposits, funds held pursuant to credit balance agreements, letters
of credit, and the like; and

 

(iv.) 

assignment of loan
proceeds payable by the financing source to the Delayed Payment
Customer.

 

(b) 

Dealership must pay
the Ally Parties the principal amount of the advance or loan for
the Delayed Payment Vehicles upon the earlier of Dealership’s
receipt of the purchase price owed by the customer or the date
specified by the Ally Parties in their approval of the Delayed
Payment Privilege. Dealership’s obligation to pay each of the
Ally Parties is absolute, unconditional, and primary,
notwithstanding the Ally Parties’ approval of the Delayed
Payment Privilege, or the specific terms of the approval. Each of
the Ally Parties may, but has no duty to, examine, review, or
consider the creditworthiness of any proposed Delayed Payment
Customer, and any action by either or both of the Ally Parties is
for such Ally Party’s(ies’) sole and exclusive use,
purpose, and benefit even if information developed by one or both
of the Ally Parties is provided to Dealership.

 

(c) 

Recreational
Vehicles are not permitted to be sold pursuant to the Delayed
Payment Privilege and will only be sold to individual customers in
the ordinary course of business.

 

7. 

Report of Damage, Loss.
Dealership will notify each of the Ally Parties upon any occurrence
in which a Vehicle is damaged, destroyed, lost, stolen, or missing.
Dealership must use reasonable means to diligently repair and
restore such Vehicle to its original condition, replace, or locate
any of these Vehicles, and keep the Ally Parties apprised of these
efforts.

 

8. 

Risks. Neither of the Ally
Parties has any risk or responsibility concerning the ownership,
location, condition, usage, inspection, or disposition of any
Vehicle or other Collateral whether or not permitted by this
Agreement, including fire, theft, vandalism, mischief, collision,
acts of terrorism, acts of God, property damage, personal injury,
public liability, and the like (“Risks”). Dealership
bears and assumes the Risks, unless imposed by law on another
person and except to the extent of any insurance proceeds actually
received by the Ally Parties. Dealership will indemnify and hold
harmless Bank and Ally against all Risks, including injury and
damage to persons, property, or Collateral caused by any of these
Risks.

 

9. 

Insurance. Except to the extent
that both of the Ally Parties obtain insurance for themselves on
one or more of the Risks, Dealership must acquire and maintain one
or more policies of insurance on losses which may arise as a
consequence of the Risks on any of the Vehicles or, as requested by
either or both of the Ally Parties, on other Collateral. The
amounts, deductibles, provider, term, cancellation rights, and
types of insurance are subject to approval by each of the Ally
Parties, on which each of the Ally Parties must be named as a loss
payee, as each of their interests may appear. Dealership must
provide each of the Ally Parties with one or more certificates of
insurance evidencing compliance with this
Subsection III.E.9.

 

13

 

 

 

F. 

Representations and Warranties of
Dealership. Dealership represents and warrants to each of
the Ally Parties the accuracy and completeness of each of the
following statements as of the effective date of this Agreement.
Dealership will immediately notify each of the Ally Parties of any
known or expected material change to any of these statements.
Otherwise, they are deemed as continuing and reaffirmed each time
either of the Ally Parties provides Inventory Financing to
Dealership.

 

1. 

Dealership Existence.
Dealership is duly formed, constituted, and is in good standing in
the jurisdiction in which it is located, as “location”
is determined under Article 9 of the Uniform Commercial Code, as
amended from time to time. Dealership has all government and other
permits, licenses, authorizations, and approvals necessary to do
business lawfully in the jurisdiction in which any of its business
operations are located.

 

2. 

Dealership Franchise.
Dealership has executed, operates, and is in good standing under
all contracts, franchise agreements, dealer sales and service
agreements, and the like, if any, provided by Vehicle Sellers which
manufacture or distribute new Vehicles.

 

3. 

Dealership Authorization.
Dealership is authorized and empowered to execute and deliver this
Agreement and to do all things necessary and appropriate to fulfill
and implement the terms and conditions of it.

 

4. 

Legal Compliance. Dealership is
in compliance with all federal, state, and local laws, regulations,
and ordinances.

 

5. 

Financial Condition.
Information on the financial condition of Dealership which has or
may be submitted to either or both of the Ally Parties, either
directly or indirectly (e.g., through a Vehicle Seller), by
Dealership or an agent of Dealership (e.g., accountant), fairly
presents the financial condition of Dealership in accordance with
generally accepted accounting principles applied on a consistent
basis.

 

6. 

Relationship of Ally Parties and
Dealership. The relationship between each of the Ally
Parties and Dealership is one of creditor and debtor, respectively,
based upon this Agreement and/or Other Financing Accommodations.
There is no fiduciary, trust, representative, confidential,
partnership, or other special relationship between either of the
Ally Parties and Dealership. The Ally Parties do not have and will
not have any investment in Dealership, whether equity or otherwise.
Dealership is not a counselor, advisor, agent or legal or other
representative of Bank or Ally. Neither Bank nor Ally is a
counselor, advisor, agent, or legal or other representative of the
Dealership, except for the limited power of attorney expressly
described in Subsections III.D.4 and 7 above and
Subsections III.J.10 and III.K.18 below, and each of them
recognizes the ability, importance, and freedom to consult with any
accountants, attorneys, agents, advisors, and business consultants
of their choice in connection with the review, execution, and
administration of this Agreement. Neither of the Ally Parties
controls, supervises, or manages Dealership.

 

7. 

Relationship with Vehicle
Sellers. The Ally Parties do not represent the interests of
any Vehicle Seller. The relationships of each of the Ally Parties
and Dealership to any Vehicle Seller are separate and distinct from
one another. Neither of the Ally Parties is under the control of
any Vehicle Seller, despite any business, consultative, investment,
ownership, legal, or other relationship either of the Ally Parties
may have with one or more Vehicle Seller. Nothing in this Agreement
obligates Dealership to obtain Inventory Financing from the Ally
Parties based on any relationship that either of the Ally Parties
may have with one or more Vehicle Sellers.

 

G. 

Additional Promises of
Dealership. Dealership will:

 

14

 

 

 

1. 

Provide each of the
Ally Parties with accurate and complete information, data, books,
records, documentation, and the like, concerning:

 

(a) 

all financial and
business matters of Dealership, upon request by either or both of
the Ally Parties;

 

(b) 

all proposed or
actual changes of any nature concerning the Dealership or its
assets, including the Dealership’s name, address, tax status,
entity, structure, capitalization, indebtedness, solvency,
ownership, management, and the like, immediately upon any
change;

 

(c) 

all financial and
other reports made and information provided to any Vehicle Sellers
and will allow each of the Ally Parties direct access to all such
reports and information, and upon request by either or both of the
Ally Parties, provide copies of such reports and information;
and

 

(d) 

any notice relating
to any franchise or dealer sales and service agreement, and any
related materials, sent by or received from any Vehicle Sellers
which manufacture or distribute new Vehicles to
Dealership.

 

2. 

Provide audited
financial statements within the time period provided by such
requesting Ally Party(ies), upon request by either or both of the
Ally Parties.

 

3. 

Arrange for each of
the Ally Parties to obtain and maintain a continuing and absolute
guaranty of payment, limited or unlimited as determined by each of
the Ally Parties, of all amounts owed under or in connection with
this Agreement from persons identified by one or both of the Ally
Parties from time to time.

 

4. 

At all times,
remain in good standing under, and have not received or sent notice
of termination of, any contracts, franchise agreements, dealer
sales and service agreements, and the like, if any, provided by
Vehicles Sellers which manufacture or distribute new Vehicles to
Dealership.

 

H. 

Default by Dealership. An
occurrence of any one or more of the following events constitutes a
default under this Agreement (“Default”):

 

1. 

Failure of
Dealership to pay when due the full amount owing to either of the
Ally Parties under Section III.B and C
above;

 

2. 

The breach of, or
the failure of Dealership to fully comply with or duly perform, any
term, condition, or promise of this Agreement, any other Obligation
or any Other Financing Accommodation, provided, however, that
Dealership shall not be deemed to be in Default under this
paragraph unless the Ally Parties shall have provided written
notice of the violation and an opportunity of not less than 5 days
for the Dealership to cure the violation;

 

3. 

Any representation,
statement, or warranty made by Dealership to either of the Ally
Parties in this Agreement or otherwise, which was false or
materially misleading when made; and/or

 

4. 

The inability of
Dealership to pay debts as they mature, or any proceeding in
bankruptcy, insolvency, or receivership, instituted by or against
Dealership, Dealership’s property or any guarantor of any of
Dealership’s obligations to either or both of the Ally
Parties.

 

I. 

Waiver and Modification of Certain
Important Rights. Unless and only to the extent not
expressly prohibited by law, Dealership, Bank and Ally expressly
and affirmatively waive and modify certain very important rights,
as follows:

 

 

15

 

 

1. 

Claims. Any and all claims,
causes of action, suits, rights, remedies, disputes, complaints,
defenses, and counterclaims between either or both of the Ally
Parties on the one hand and Dealership on the other hand, or any of
their officers, agents, employees, subsidiaries, affiliates,
members, owners, or shareholders directly or indirectly arising out
of or relating to the terms or subject matter of this Agreement or
Other Financing Accommodations, whether in contract, tort, equity,
statute, or regulation, or pertaining to conversion, fraud,
defamation, negligence, franchise, licensing, or distribution or
the defect, non-conformity, price, or allocation of Vehicles by any
Vehicle Seller, or otherwise, but not including actions for and
enforcement of provisional remedies otherwise provided by law,
equity, or agreement between the parties, suits for debt,
enforcement of security interests, or claims pursuant to Section
III.J below, (“Claim”) are subject to each of the
following:

 

(a) 

Claim Resolution.
Notwithstanding anything to the contrary in this Agreement, the
resolution of any Claim (“Claim Resolution”) will
occur, if at all, only in accordance with the following provisions
and sequence:

 

(i.) 

Informal discussion
and negotiation between executive level managers of the Dealership
and the Ally Party(ies) asserting a Claim or against which a Claim
is asserted;

 

(ii.) 

Mediation in
accordance with the rules of commercial mediation as published from
time to time by the American Arbitration Association, JAMS, or any
other nationally recognized alternative dispute resolution
organization, selected by the party against whom the Claim is being
asserted; and

 

(iii.) 

Binding arbitration
in accordance with the rules of commercial arbitration as published
from time to time by the American Arbitration Association, JAMS, or
other nationally recognized alternative dispute resolution
organization, selected by the party against whom the Claim is being
asserted (“Arbitration”), except that the Arbitration
must be decided based upon the terms and conditions of this
Agreement. Judgment on the Arbitration may be entered in any court
having jurisdiction.

 

(iv.) 

All mediation and
Arbitration hearings and proceedings brought pursuant to
Subsections III.I.1(a)(ii) and (iii) above shall occur at a
location within fifty (50) miles of Ally’s local business
office that manages Dealership’s account.

 

(b) 

JURY WAIVER. BANK, ALLY AND DEALERSHIP WAIVE AND RENOUNCE
THE RIGHT UNDER FEDERAL AND STATE LAW TO A TRIAL BY JURY FOR ANY
CLAIM.

 

2. 

Choice of Law. This Agreement
must be construed, interpreted, and enforced in accordance with the
laws of the state of Missouri without regard to its conflict of
laws rules.

 

3. 

Limitation of type and nature of
damage Claims. With respect to any Claim:

 

(a) 

Liability and Damages for Handling
Payments. Neither of the Ally Parties will be liable to
Dealership for Claims arising from the handling of advances,
principal repayments and interest payments via automated
clearinghouse (“ACH”) transactions or otherwise, except
for acts and omissions by one or both of the Ally Parties that
constitute gross negligence or willful misconduct. In no event will
either of the Ally Parties be liable for any delay in transmitting
advances, principal repayments or interest repayments via ACH
transaction due to equipment, communication or electronic failures
or any other cause beyond the Ally Parties’ reasonable
control. In any event, the liability of either of the Ally Parties
for activities relating to the handling or remitting of payments
will not exceed an amount equal to the actual dollar amount of
processing entries that are the subject of the Claim.

 

16

 

 

 

(b) 

Liability and Damages for Other
Activities. In the case of Claims other than those outlined
in Subsection III.I.3(a) above, Dealership’s damages under
this Agreement are expressly limited to the lesser of:

 

(i.) 

the actual dollar
amount of Dealership’s future economic or financial loss;
or

(ii.) 

reasonable dollar
amount of lost future profits for not more than two (2) years from
the accrual date of the Claim.

 

(c) 

Other Damages. Dealership will
not assert, and neither of the Ally Parties is liable for, any
Claim for consequential, incidental, punitive or exemplary
damages.

 

(d) 

In no event will
Dealership’s recoverable damages set forth in this
Subsection III.I.3 exceed the amount of interest assessed by
the Ally Party(ies) against whom the Claim is brought and actually
paid by the Dealership in the twenty-four (24) calendar months
immediately preceding accrual of the Claim.

 

4. 

Notification of information to
Others. Bank and Ally each have the right, but not the
obligation, to notify guarantors, sureties, Account Debtors and
other third parties (e.g., owners, officers, etc.) of the terms,
administration, or performance of this Agreement.

 

5. 

Information From and To Third
Persons. Dealership irrevocably and continuously consents to
the disclosure of all types and kinds of information in any format
concerning the Dealership by third persons to each of the Ally
Parties and by each of the Ally Parties to third persons, including
regulators of either Ally Party, and the obtaining of information
by each of the Ally Parties from third persons, including, by way
of example, credit, financial, and business information, whether of
direct actual experience or obtained from other sources. The
exchange of information is limited to persons having an ownership,
business, financial, audit, official, credit, trade, suretyship,
lending, legal, regulatory, supervisory, or other suitable reason
to have or know the information. Each of the Ally Parties may, but
is not required to, report to others on its credit relationship
with Dealership and Dealership acknowledges that though each of the
Ally Parties will endeavor to ensure the accuracy of such reports,
neither of the Ally Parties has any liability and is exculpated
from any liability for any inaccuracy in its reports, unless
provided by such Ally Party in a grossly negligent
manner.

 

J. 

Default or Insecurity.
Notwithstanding and without regard to the provisions of Section
III.I above, in the event of Default by Dealership or if either or
both of the Ally Parties deem themselves insecure concerning either
jeopardy to the Collateral or timely, full payment of the
Obligations, then either or both of the Ally Parties may exercise
any one or more of the following provisional rights and remedies in
addition to those otherwise provided by law. These provisional
rights and remedies are cumulative and not alternative, are
non-exclusive, and may be enforced successively or concurrently.
The single or partial exercise of any right or remedy does not
waive or exhaust any other rights or remedies or waive any present
or future Default of any kind. Dealership does not have a grace
period or right to cure any default or insecurity.

 

1. 

Demand. Either or both of the
Ally Parties may demand immediate payment in full of all
Obligations owed by Dealership to such Ally
Party(ies).

 

2. 

Repossession of Collateral.
Either or both of the Ally Parties may take immediate possession of
the Collateral, without demand, further notice to or consent of
Dealership, and with or without legal process. Upon request by
either or both of the Ally Parties, Dealership must assemble the
Collateral and make it available to such Ally Party(ies) at a
reasonably convenient place designated by such Ally Party(ies),
including the Dealership premises. Dealership irrevocably
authorizes and empowers each of the Ally Parties and their agents
to enter upon the premises where the Collateral is located and
remove it or render portions of it unusable (“Collateral
Recovery”). Dealership irrevocably waives any bonds, surety,
or security which may be required by any rule, law, or procedure in
connection with Collateral Recovery.

 

17

 

 

 

3. 

Suit at Law or in Equity.
Either or both of the Ally Parties may institute proceedings in a
proper court of law or equity to enforce any and all provisional
remedies such Ally Party(ies) have at law or equity, including
injunctive relief and action for possession of Collateral, an order
for accounting, appointment of a receiver or examiner, or the like.
Either or both of the Ally Parties may apply for and have granted
any equitable or other legal relief appropriate to enforce any
right or remedy including specific performance and the issuance of
any ex parte preliminary injunction to
protect the Collateral.

 

4. 

Refrain from Disposition. Upon
request by either or both of the Ally Parties, Dealership will not
sell, lease, or otherwise dispose of any Vehicles or other
Collateral without the prior written consent of each of the Ally
Parties.

 

5. 

Turnover of All Proceeds. All
amounts received by Dealership upon the sale, lease, or other
disposition of any Vehicle must be paid to the Ally Parties even if
it exceeds the specific amount for which the Ally Parties provided
Inventory Financing for that Vehicle. Payments may be applied by
the Ally Parties to the Obligations, as determined by the Ally
Parties, unless otherwise required by law.

 

6. 

Direct Collection of
Collateral. Either or both of the Ally Parties may make
direct collection of any Collateral in the possession or control of
any third party, including, but not limited to, chattel paper,
accounts, accounts with Vehicle Sellers, instruments, and
proceeds.

 

7. 

Disposition of Collateral.
Following total or partial Collateral Recovery, either or both of
the Ally Parties may sell, lease, or otherwise dispose of all or
any portion of the Collateral not less than ten (10) calendar days
after giving Dealership written notice of the public or private
sale or as permitted by law which it proposes for the account of
Dealership. The sale of Vehicles at an auction at which only other
dealers or Vehicle Sellers are generally invited to attend is
deemed to be a “private sale.”

 

8. 

“Commercially Reasonable”
Defined. Any of the following, nonexclusive, methods of
Collateral disposition is deemed “commercially
reasonable” in accordance with Article 9 of the Uniform
Commercial Code:

 

(a) 

repurchase of any
Vehicle, parts, or accessories manufactured by the original Vehicle
Seller pursuant to the terms of a repurchase agreement between such
Ally Party and Vehicle Seller, in accordance with a franchise
granted to Dealership by the Vehicle Seller or pursuant to any
applicable state law that requires a repurchase of Vehicles, parts,
or accessories;

 

(b) 

sale of any parts
or accessories to the highest bidder in an auction sale, in lieu of
a sale to a Vehicle Seller pursuant to a repurchase agreement,
where the proceeds to either or both of the Ally Parties are
reasonably believed to be higher than they would be under the
repurchase agreement;

 

(c) 

sale to the highest
cash bid from dealers in the type of property repossessed, whether
in bulk or parcels; and

 

(d) 

sale at any
physical or virtual auction, including SmartAuction, at which only
dealers of multiple or single Vehicle manufacturer are generally
invited to attend.

 

 

18

 

 

9. 

Deficiency. Dealership must
fully and promptly pay to each of the Ally Parties any deficiency
remaining after disposition of the Collateral, except to the extent
expressly modified by each of the Ally Parties in
writing.

 

10. 

Limited Power of Attorney.
Dealership hereby irrevocably appoints each Bank and Ally, acting
through any of their respective officers and employees, its true
and lawful attorney for and in its name, stead, and behalf as if
fully done by Dealership, to sign, endorse, execute, negotiate,
compromise, settle, complete, and deliver:

 

(a) 

any invoice, bill
of sale, certificate of title, manufacturer’s certificate of
origin, application, and any other instrument or document
pertaining to title or ownership or the transference thereof of any
Collateral;

 

(b) 

any financing
statement, notice, filing, or document pertaining to the
enforcement of the Security Interest in Collateral;
and

 

(c) 

any check, draft,
certificate of deposit, credit voucher, or any other medium of
payment, insurance claims, proof of loss, instrument, or document
pertaining to or proceeds of any Collateral;

 

This
limited power of attorney is coupled with an interest and may be
relied upon by any third party without any duty to inquire as to
its continued effectiveness. Neither Bank nor Ally will be liable
for any acts or omissions, nor for any error of judgment or mistake
of law or fact in the exercise of any authorization under this
limited power of attorney.

 

11. 

Default Rate of Interest. To
the extent permitted by law, each of the Ally Parties may
immediately assess a default rate of Interest up to the current
rate of Interest plus five percent (5%).

 

12. 

Duty of Care. Neither of the
Ally Parties has any duty as to the collection or protection of
Collateral, nor as to the preservation of any rights pertaining to
it, except for the use of reasonable care in the custody and
preservation of the Collateral when in the possession of such Ally
Party.

 

K. 

Additional
Provisions.

 

1. 

Authenticity and Authority.
Each of the Ally Parties may rely and act upon any form of
communication purportedly sent by Dealership as the authentic and
duly authorized act of Dealership, in the implementation or
furtherance of the purposes of this Agreement, whether by
electronic, computer, telegraphic, facsimile, telephonic, personal
or paper delivery, transmission, or otherwise; provided such Ally
Party:

 

(a) 

acts in good
faith;

 

(b) 

has no actual
knowledge of information to the contrary; and

 

(c) 

the practice is
customary with dealers generally or Dealership
specifically.

 

The
Ally Parties have no obligation to scrutinize, inquire, or confirm
any communication.

 

2. 

Written Waivers Only. A waiver,
release, estoppel, or defense of any provision of this Agreement is
effective only if it is in writing signed by the party sought to be
bound by it.

 

(a) 

No course of
dealing nor the delay or failure of either or both of the Ally
Parties to enforce any right or remedy, in whole or in part, to
demand payment or to declare an event of Default under this
Agreement will:

 

19

 

 

 

(i.) 

alter or affect any
of Dealership’s obligations or such Ally
Party’s(ies’) rights and remedies; or

(ii.) 

operate as a
waiver, release, estoppel, or defense thereof.

 

(b) 

Conversely, any
notice to or demand on Dealership by either or both of the Ally
Parties in any event not specifically required under this Agreement
does not entitle Dealership to any other or further notice or
demand in the same, similar, or other circumstances unless
specifically required by this Agreement.

 

(c) 

There can be no
waiver of this Subsection III.K.2, except in writing signed by the
party against whom the alleged waiver is asserted. Reliance by any
party on an oral representation will be deemed
unreasonable.

 

3. 

Assignment. Dealership must not
assign or cause the transfer of any duties or obligations under
this Agreement without the express prior written consent of each of
the Ally Parties. Each of the Ally Parties may freely assign its
rights, duties and obligations under this Agreement.

 

4. 

Amendments.

 

(a) 

By the Ally Parties. Bank may
amend the provisions of this Agreement as they relate to Bank from
time to time by providing Dealership with written notice of the
amendment. Ally may amend the provisions of this Agreement as they
relate to Ally from time to time by providing Dealership with
written notice of the amendment. Except as provided otherwise in
this Agreement, the amendment will take effect no less than thirty
(30) calendar days after either or both of the Ally Parties send
the notice. The amendment may apply to existing and prospective
obligations under this Agreement.

 

(b) 

Guidelines. From time to time,
each of the Ally Parties may issue written guidance to provide
Dealership a more detailed and comprehensive explanation of the
terms under this Agreement which relate to such Ally Party. Any
written guidance delivered to the Dealership by such Ally Party
after the execution of this Agreement will be determinative in
interpreting this Agreement and may be amended or replaced from
time to time by such Ally Party.

 

5. 

Use of Tracking Devices.
Dealership consents to Bank’s and Ally’s use of any
tracking device in or on any Vehicle in order to locate the
Vehicle.

 

6. 

Definitions and Word Meanings.
The word “may” or any other term in this Agreement
signifying a permissive, elective, or optional right of a party to
act or decide, or to refuse to act or decide, will mean and be
construed as providing the complete and absolute prerogative of
that party to do so in its sole, unfettered discretion. The word
“will” is a mandatory word denoting an obligation to
pay or perform. Otherwise, unless the context otherwise clearly
requires, the terms used in this Agreement must be given the
meaning ascribed to them in accordance with the capitalized
definitions established throughout this Agreement; the Uniform
Commercial Code, as amended from time to time; and common and
ordinary usage in law and commercial practice,
respectively.

 

7. 

Section Captions. The captions
inserted at the beginning of each article, section, and subsection
are for convenience only and do not limit, enlarge, modify,
explain, or define the text thereof nor affect the construction or
interpretation of this Agreement.

 

 

20

 

 

8. 

Effective. This Agreement
substitutes and supersedes any previously executed agreement
between Dealership and either or both of the Ally Parties
concerning wholesale inventory floor plan finance accommodations
and will govern Dealership’s inventory floor plan finance
indebtedness to each of the Ally Parties now outstanding under any
prior agreement (e.g., Wholesale Security Agreement, Bank or Ally
Form 178 and all amendments to it) or incurred under this
Agreement. This Agreement is not a novation or transformation of
any prior obligation but merely restates and substitutes for any
prior agreement related to inventory floor plan finance
accommodations.

 

9. 

Termination. This Agreement is
effective until terminated upon the earlier of an event of Default
or after receipt of a written notice of termination sent as
outlined in subsections (a)-(d) below. Termination will not relieve
any party from any duty or obligation incurred, or right, waiver,
modification, or benefit bestowed, prior to the effective date of
the termination.

 

(a) 

Dealership may at
any time and for any or no reason provide written notice of
termination to the Ally Parties that Dealership will no longer
request the Ally Parties to provide additional Inventory Financing
under this Agreement, and at the time of sending this notice,
Dealership will immediately pay to the Ally Parties in full the
Wholesale Outstandings, accrued Interest, late charges, expenses,
Other Charges and any other payment obligations under this
Agreement then outstanding. Provided that the Dealership has not
received notice indicating that one of the Ally Parties has
assigned the Wholesale Outstandings owed by Dealership to such Ally
Party and its rights, duties and obligations under this Agreement
to another party (“Assignee”), Dealership’s
termination pursuant to this Subsection III.K.9(a) will apply to
both of the Ally Parties.

 

(b) 

In the event that
the Dealership has received notice indicating that one of the Ally
Parties has assigned the Wholesale Outstandings owed to such Ally
Party and its rights, duties and obligations under this Agreement
to an Assignee, then Dealership may provide written notice of
termination to one of the Ally Parties or its Assignee that
Dealership will no longer request such party to provide additional
Inventory Financing under this Agreement, and at the time of
sending this notice, Dealership will immediately pay to such party
in full the Wholesale Outstandings, accrued Interest, late charges,
expenses, Other Charges and any other payment obligations under
this Agreement then outstanding to such party.

 

(c) 

Bank may at any
time and for any or no reason, with or without cause, upon sixty
(60) calendar days prior written notice terminate the
Dealership’s ability to request and obtain Inventory
Financing from Bank under this Agreement or otherwise. If the Bank
terminates future Inventory Financing to Dealership, the Bank may
demand immediate payment in full of the Wholesale Outstandings,
accrued Interest, late charges, expenses, Other Charges and any
other payment obligations owed to Bank under this Agreement then
outstanding, which amounts Dealership will pay in accordance with
Subsection III.C.2(c) above.

 

(d) 

Ally may at any
time and for any or no reason, with or without cause, upon sixty
(60) calendar days prior written notice terminate the
Dealership’s ability to request and obtain Inventory
Financing from Ally under this Agreement or otherwise. If Ally
terminates future Inventory Financing to Dealership, Ally may
demand immediate payment in full of the Wholesale Outstandings,
accrued Interest, late charges, expenses, Other Charges and any
other payment obligations owed to Ally under this Agreement then
outstanding, which amounts Dealership will pay in accordance with
Subsection III.C.2(c) above.

 

10. 

Binding. This Agreement is
binding on Bank, Ally and Dealership and their respective
successors, administrators, and assigns.

 

 

21

 

 

11. 

No Third Party Beneficiary.
Except as outlined in Section III.D, no Vehicle Seller or any
person (other than Bank, Ally and Dealership) may rely on this
Agreement or any term or provision contained in this
Agreement.

 

12. 

Severability. Any provision of
this Agreement prohibited by law is ineffective only to the extent
of the prohibition without invalidating the remaining provisions of
this Agreement.

 

13. 

Notice. Any notice required to
be given by this Agreement or by law is deemed reasonably and
properly given if sent to the other party within the time frame set
forth in this Agreement, but in any event no less than ten (10)
calendar days, at the address set forth in Section I above by
any one of the following nonexclusive methods:

 

(a) 

United States
certified, registered, or first class mail, postage
prepaid;

 

(b) 

Use of a
commercially recognized express delivery service;

 

(c) 

Electronic mail or
facsimile transmission; or

 

(d) 

Personal
delivery.

 

14. 

Separate Credit Accommodations.
Despite the fact that Ally may be acting as a servicer or agent on
behalf of Bank, Dealership recognizes that Ally and Bank are
providing separate credit accommodations to Dealership with the
terms consolidated in a single document and credit line for the
convenience of the parties. Bank is not responsible for the
performance or conduct of Ally and Ally is not responsible for the
performance or conduct of Bank. Dealership shall not assert against
Bank any claim, defense or set-off relating to Ally and Dealership
will not assert against Ally any claim, defense or set-off relating
to Bank. This Agreement does not create any rights and obligations
between Ally and Bank.

 

15. 

Time of the Essence. Time is of
the essence as to this Agreement. There is no grace period, right
to cure, or other indulgence provided in the terms and conditions
of this Agreement unless expressly provided for in this Agreement
or in a separate writing signed by the party against whom it is
asserted.

 

16. 

Entire Agreement. This document
and the Addendum to Inventory Financing and Security Agreement
contain the entire agreement of Bank, Ally and Dealership
concerning the subject matter set forth herein. There are no other
oral or implied agreements, understandings, or representations
between them. Dealership has not relied on any statement, promise,
or representation made by anyone connected with Bank or Ally,
except as provided in this Agreement or any related
document.

 

17. 

No Interpretive Presumptions.
The language in this Agreement will be construed according to the
fair and usual meaning of the language and will not be strictly
construed for or against either party.

 

18. 

Continued Cooperation.
Dealership will execute and deliver to each of the Ally Parties any
and all documents, notices, instruments, and other writings and
perform all acts necessary and appropriate to fully implement the
terms and conditions of this Agreement. Dealership hereby
irrevocably appoints each Bank and Ally, acting through any of
their officers and employees, its true and lawful attorney for and
in its name, stead and behalf as if fully done by Dealership to
execute, complete and deliver any other document, instrument, or
agreement in connection with this Agreement to supply any omitted
information and correct any patent errors in any of them. This
limited power of attorney is coupled with an interest and may be
relied upon by any third party without any duty to inquire as to
its continued effectiveness. Neither Bank nor Ally will be liable
for any acts or omissions, nor for any error of judgment or mistake
of law or fact in the exercise of any authorization under this
limited power of attorney.

 

22

 

 

19. 

Use of Pronouns. All personal
pronouns, whether used in the masculine, feminine or neuter gender,
will include all other genders; the singular will include plural,
and the plural will include the singular.

 

20. 

Counterparts. This Agreement
may be signed in counterparts, each of which is deemed an original
and all of which taken together constitute one and the same
agreement. Any electronically placed or delivered (e.g., via fax or
email) signatures of the parties constitute and are deemed original
signatures for all purposes.

 

21. 

Addendum. Attached hereto is an
Addendum to Inventory Financing and Security Agreement
(“Addendum”), which forms a part of this Agreement. The
Addendum includes additional terms, conditions, interest rates,
advance rates, provisions, restrictions, authorizations, and other
details regarding Dealership’s use of the Credit Line and its
performance under this Agreement. The Addendum may be amended or
revised by the Ally Parties in their sole and absolute discretion
at any time by giving Dealership 10 days’ notice of any
change, provided, however, that changes to terms that may otherwise
by imposed under this Agreement without notice or on less than
10 days’ notice may be implemented immediately. Changes
made to the Addendum by the Ally Parties will not constitute an
amendment to this Agreement. In the event the terms of the Addendum
differ from the terms of the Agreement (considered without
reference to the Addendum), the terms contained in the Addendum
control.

 

 

	
 

	

RMBL Missouri, LLC

	
 

	
 

	

Ally Bank

	
 

	

 

	
 

	
 

	

 

	

Signature:

	
/s/ Marshal
Chesrown

	
 

	

Signature:

	
/s/
Christian Kemp
	

By
(Print):

	

Marshall
Chesrown

	
 

	

By
(Print):

	

Christian
Kemp

	

Title:

	

Manager

	
 

	

Title:

	

Authorized
Representative

	

Date:

	
2-16-18

	
 

	

Date:

	
2-16-18
	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Ally Financial Inc.

	
 

	
 

	
 

	

 

	
 

	
 

	
 

	
 

	

Signature:

	
/s/ Christian
Kemp

	
 

	
 

	
 

	

By
(Print):

	

Christian
Kemp

	
 

	
 

	
 

	

Title:

	

Authorized
Representative

	
 

	
 

	
 

	

Date:

	
2-16-18
	
 

	
 

	
 

	
 

	
 

 

23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}]]