Document:

tiffundingllc-conformedl

EXHIBIT 10.1    CONFORMED COPY  Amendment Number 1, 2/8/19  Amendment Number 2, 11/4/19  Omnibus Amendment Number 1, 11/13/20  Form of AICCA - Conforming Amendment  Amendment Number 4, 12/20/21  Omnibus Amendment Number 2, 4/27/22    [CERTAIN INFORMATION AND ATTACHMENTS TO THIS EXHIBIT, MARKED BY [***],  HAVE BEEN OMITTED IN ACCORDANCE WITH ITEM 601(A)(5) OF REGULATION S-K  AS THEY DO NOT CONTAIN INFORMATION MATERIAL TO AN INVESTMENT OR  VOTING DECISION.]     LOAN AND SECURITY AGREEMENT  among  TIF FUNDING LLC,  as Borrower  the LENDERS from time to time party hereto,  WELLS FARGO BANK, NATIONAL ASSOCIATION,  as Administrative Agent and  WILMINGTON TRUST, NATIONAL ASSOCIATION,   as Collateral Agent and Securities Intermediary    Dated as of December 13, 2018          

 

TABLE OF CONTENTS    Page     -i-     ARTICLE I DEFINITIONS .......................................................................................................... 1  Section 101 Defined Terms ..................................................................................... 1  Section 102 Other Definitional Provisions ............................................................ 37  Section 103 Computation of Time Periods ............................................................ 37  Section 104 General Interpretive Principles .......................................................... 37  Section 105 Statutory References .......................................................................... 38  ARTICLE II SECURITY INTEREST......................................................................................... 38  ARTICLE III THE LOANS......................................................................................................... 41  Section 301 Principal Terms of the Loans ............................................................. 41  Section 302 Distribution Account .......................................................................... 57  Section 303 Investment of Monies Held in the Distribution Account, the  Revenue Reserve Account and the Restricted Cash Account;  Control over Eligible Investments ..................................................... 63  Section 304 Reports to Lender ............................................................................... 65  Section 305 Records .............................................................................................. 65  Section 306 Restricted Cash Account .................................................................... 65  Section 307 Revenue Reserve Account ................................................................. 66  Section 308 No Claim ............................................................................................ 67  Section 309 Compliance with Withholding Requirements .................................... 67  ARTICLE IV COLLATERAL .................................................................................................... 67  Section 401 Collateral ............................................................................................ 67  Section 402 Reserved ............................................................................................. 68  Section 403 Collateral Agent’s Appointment as Attorney-in-Fact ........................ 68  Section 404 Release of Security Interest ............................................................... 69  Section 405 Administration of Collateral .............................................................. 70  Section 406 Quiet Enjoyment ................................................................................ 71  Section 407 Rights of Lenders ............................................................................... 71  ARTICLE V REPRESENTATIONS AND WARRANTIES ...................................................... 72  Section 501 Representations and Warranties ......................................................... 72  Section 502 Survival of Representations and Warranties ...................................... 78  ARTICLE VI COVENANTS ...................................................................................................... 78  Section 601 Payment of Principal and Interest; Payment of Taxes ....................... 78  

 

TABLE OF CONTENTS  (continued)  Page     -ii-     Section 602 Maintenance of Office ....................................................................... 79  Section 603 Corporate Existence ........................................................................... 79  Section 604 Protection of Collateral ...................................................................... 79  Section 605 Performance of Obligations ............................................................... 80  Section 606 Negative Covenants ........................................................................... 81  Section 607 Corporate Separateness of the Borrower ........................................... 83  Section 608 No Bankruptcy Petition...................................................................... 83  Section 609 Liens ................................................................................................... 83  Section 610 Other Debt .......................................................................................... 84  Section 611 Guarantees, Loans, Advances and Other Liabilities .......................... 84  Section 612 Consolidation, Merger and Sale of Assets ......................................... 84  Section 613 Other Agreements; Amendment of Transaction Documents ............. 84  Section 614 Organizational Documents ................................................................. 85  Section 615 Capital Expenditures .......................................................................... 85  Section 616 Permitted Activities; Compliance with Organizational  Documents ......................................................................................... 85  Section 617 Investment Company Act .................................................................. 85  Section 618 Payments of Collateral ....................................................................... 85  Section 619 Notices ............................................................................................... 85  Section 620 Books and Records ............................................................................ 86  Section 621 Subsidiaries ........................................................................................ 86  Section 622 Investments ........................................................................................ 86  Section 623 Use of Proceeds .................................................................................. 86  Section 624 Asset Base Certificate ........................................................................ 86  Section 625 Financial Statements .......................................................................... 86  Section 626 UNIDROIT Convention ..................................................................... 87  Section 627 Reserved .............................................. Error! Bookmark not defined.  Section 628 Interest Rate Hedging Requirement ................................................... 88  Section 629 Reserved ............................................................................................. 89  Section 630 Sanctions ............................................................................................ 89  Section 631 Tax Election of the Borrower ............................................................ 89  Section 632 Reserved ............................................................................................. 89  Section 633 Compliance with Law ........................................................................ 89  Section 634 Lender Tax Identification Information .............................................. 89  Section 635 Amendment of Intercreditor Collateral Agreement ........................... 90  Section 636 Inspection ........................................................................................... 90  

 

TABLE OF CONTENTS  (continued)  Page     -iii-     Section 637 Insurance ............................................................................................ 91  Section 638 Cooperation Regarding Rating of the Loans. .................................... 91  ARTICLE VII DISCHARGE OF AGREEMENT; PREPAYMENTS ....................................... 92  Section 701 Full Discharge .................................................................................... 92  Section 702 Prepayment of Loans ......................................................................... 92  ARTICLE VIII DEFAULT PROVISIONS AND REMEDIES .................................................. 92  Section 801 Event of Default ................................................................................. 92  Section 802 Acceleration of Stated Maturity ......................................................... 96  Section 803 Collection of Indebtedness ................................................................. 97  Section 804 Remedies ............................................................................................ 97  Section 805 Reserved ............................................................................................. 98  Section 806 Allocation of Money Collected .......................................................... 98  Section 807 Reserved ........................................................................................... 100  Section 808 Reserved. .......................................................................................... 100  Section 809 Restoration of Rights and Remedies ................................................ 100  Section 810 Rights and Remedies Cumulative .................................................... 100  Section 811 Delay or Omission Not Waiver ........................................................ 100  Section 812 Control by Majority Lenders ........................................................... 100  Section 813 Waiver of Past Defaults ................................................................... 101  Section 814 Waiver of Stay or Extension Laws .................................................. 101  Section 815 Sale of Collateral .............................................................................. 101  Section 816 Collateral Agent Action ................................................................... 102  ARTICLE IX THE COLLATERAL AGENT ........................................................................... 102  Section 901 Duties of the Collateral Agent ......................................................... 102  Section 902 Certain Matters Affecting the Collateral Agent ............................... 104  Section 903 Collateral Agent Not Liable ............................................................. 107  Section 904 Reserved ........................................................................................... 107  Section 905 Collateral Agent’s Fees and Expenses ............................................. 107  Section 906 Eligibility Requirements for the Collateral Agent ........................... 108  Section 907 Resignation and Removal of the Collateral Agent .......................... 108  Section 908 Successor Collateral Agent .............................................................. 109  Section 909 Merger or Consolidation of the Collateral Agent ............................ 110  

 

TABLE OF CONTENTS  (continued)  Page     -iv-     Section 910 Separate Collateral Agents, Co-Collateral Agents and  Custodians ........................................................................................ 110  Section 911 Representations and Warranties ....................................................... 111  Section 912 Reserved ........................................................................................... 112  Section 913 Notice of Various Events ................................................................. 112  Section 914 Notices ............................................................................................. 112  ARTICLE X SUCCESSORS AND ASSIGNS; AMENDMENTS ........................................... 113  Section 1001 General Condition ............................................................................ 113  Section 1002 Assignments and Transfers by Lenders ........................................... 113  Section 1003 Register ............................................................................................ 115  Section 1004 Participation ..................................................................................... 116  Section 1005 Certain Pledges ................................................................................ 117  Section 1006 Electronic Execution ........................................................................ 117  Section 1007 Consents, Amendments, Waivers, Etc ............................................. 117  ARTICLE XI CONDITIONS PRECEDENT ............................................................................ 119  Section 1101 Conditions Precedent to Effectiveness of Agreement ..................... 119  Section 1102 Conditions Precedent to all Loans ................................................... 121  ARTICLE XII EARLY AMORTIZATION EVENTS .............................................................. 121  Section 1201 Early Amortization Events ............................................................... 121  Section 1202 Remedies .......................................................................................... 122  ARTICLE XIII MISCELLANEOUS PROVISIONS ................................................................ 123  Section 1301 Compliance Certificates and Opinions ............................................ 123  Section 1302 Form of Documents Delivered to Collateral Agent ......................... 123  Section 1303 Acts of Lenders ................................................................................ 124  Section 1304 Expenses .......................................................................................... 124  Section 1305 Limitation of Right .......................................................................... 125  Section 1306 Severability ...................................................................................... 125  Section 1307 Notices ............................................................................................. 125  Section 1308 Consent to Jurisdiction ..................................................................... 127  Section 1309 Captions ........................................................................................... 127  Section 1310 Governing Law ................................................................................ 128  Section 1311 No Petition ....................................................................................... 128  Section 1312 WAIVER OF JURY TRIAL ............................................................ 128  

 

TABLE OF CONTENTS  (continued)  Page     -v-     Section 1313 Waiver of Immunity ......................................................................... 129  Section 1314 Judgment Currency .......................................................................... 129  Section 1315 Consents and Approvals .................................................................. 130  Section 1316 Counterparts; Signatures .................................................................. 130  Section 1317 PATRIOT Act .................................................................................. 130  Section 1318 Indemnification ................................................................................ 130  Section 1319 Multiple Roles .................................................................................. 132  Section 1320 Acknowledgement and Consent to Bail-In of Affected  Financial Institutions ........................................................................ 132  Section 1321 Acknowledgement Regarding Any Supported QFCs ...................... 134  ARTICLE XIV THE ADMINISTRATIVE AGENT ................................................................ 135  Section 1401 Authorization and Action ................................................................. 135  Section 1402 Delegation of Duties ........................................................................ 135  Section 1403 Exculpatory Provisions .................................................................... 136  Section 1404 Reliance............................................................................................ 136  Section 1405 Non-Reliance on Administrative Agent and Other Lenders ............ 136  Section 1406 Indemnification of the Administrative Agent .................................. 137  Section 1407 Administrative Agent in Its Individual Capacity ............................. 137  Section 1408 Successor Administrative Agent ...................................................... 137      SCHEDULE I  Maximum Concentrations of Lessees  SCHEDULE II Commitments   SCHEDULE III Scheduled Targeted Principal Balance    EXHIBIT A - [Reserved]  EXHIBIT B - Form of Control Agreement  EXHIBIT C - Depreciation  Policy for Managed Containers  EXHIBIT D - Form of Asset Base Certificate  EXHIBIT E - [Reserved]  EXHIBIT F - Form of Assignment and Acceptance  EXHIBIT G - Intercreditor Collateral Agreement  EXHIBIT H - Funding Notice    

 

     LOAN AND SECURITY AGREEMENT  This LOAN AND SECURITY AGREEMENT, dated as of December 13, 2018 (as  amended, modified or supplemented from time to time as permitted hereby, this “Agreement”), is  among TIF FUNDING LLC, a limited liability company organized under the laws of the State of  Delaware (the “Borrower”), the LENDERS from time to time party hereto, WELLS FARGO  BANK, NATIONAL ASSOCIATION (as the “Administrative Agent”) and WILMINGTON  TRUST, NATIONAL ASSOCIATION, a national banking association, as securities intermediary  (in such capacity, the “Securities Intermediary”) and collateral agent (in such capacity, the  “Collateral Agent”).   W I T N E S S E T H:  WHEREAS, the Borrower desires that the Lenders from time to time make Loans to the  Borrower, and the Lenders, subject to the terms and conditions set forth herein, desire to make  such Loans to the Borrower.  NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein  contained, and other good and valuable consideration, the receipt and adequacy of which are  hereby expressly acknowledged, the parties hereto agree as follows:  ARTICLE I    DEFINITIONS  Section 101 Defined Terms.  Except as otherwise provided herein, all references to any agreement defined in this Section  1.01 shall be deemed to include such agreement as the same may from time to time be amended,  supplemented or otherwise modified in accordance with its terms and, where applicable, the terms  of the other Transaction Documents.  In the event of a conflict between this Section 1.01 and the  terms set forth in another Transaction Document, the terms set forth in the other Transaction  Documents shall supersede and govern with respect to such Transaction Document.  All references  to statutes (including the UCC), rules and regulations shall be deemed to include such statutes,  rules and regulations as the same may be from time to time amended, supplemented or otherwise  modified, in each case unless otherwise specified herein. All definitions contained or referred to  herein shall be equally applicable to both the singular and plural forms of the terms defined. All  references to any Person shall include its successors and permitted assigns. All references to  “including” are not intended to limit the generality of any description preceding such term and for  purposes hereof and of each Transaction Document the rule of ejusdem generis shall not be  applicable to limit a general statement following or referable to an enumeration of specific matters  to matters similar to those specifically mentioned.   “Account Debtor”:  Any “account debtor”, as such term is defined in the UCC.   “Accounts”:  Any “account,” as such term is defined in the UCC.  

 

  2     “Adjusted Net Book Value”:  With respect to any Managed Containers being sold, an  amount equal to the difference of (x) the sum of the respective Net Book Values of such Managed  Containers at the time of sale, minus (y) any insurance proceeds, amounts paid by lessees or other  Collections received by the Borrower in respect of any damage to such Managed Container which  was not repaired prior to sale or in respect of any failure of the lessee to make repairs which were  not made prior to sale.  “Adjusted Term SOFR”:  For purposes of any calculation, the rate per annum equal to (a)  Term SOFR for such calculation plus (b) the Term SOFR Adjustment; provided that, in no event  shall Adjusted Term SOFR be less than zero.     “Administrative Agent”:  Wells Fargo Bank, National Association and its permitted  successors and assigns.   “Administrative Agent Fee”: This term shall have the meaning given thereto in the  Administrative Agent Fee Letter.   “Administrative Agent Fee Letter”:  That certain administrative agent fee letter, dated as  of the Closing Date, between the Administrative Agent and the Borrower.   “Advance Rate”: As of any date of determination, eighty one percent (81%); provided that  upon the occurrence of the Conversion Date, the Advance Rate shall be reduced each month  thereafter until the Final Maturity Date on a straight line basis in an amount equal to 0.125% per  month (or one and one half percent (1.5%) per annum).   “Affected Borrowing”:  The meaning specified in Section 301(m)(2).   “Affiliate”:  With respect to any Person, any other Person directly or indirectly controlling,  controlled by or under direct or indirect common control with such specified Person. For the  purposes of this definition, control, when used with respect to any specified Person, means the  power to direct the management and policies of such Person, directly or indirectly, whether  through the ownership of voting securities, by contract or otherwise; and the terms controlling and  controlled have meanings correlative to the foregoing.  “Aggregate Commitment”:  As of any date of determination, an amount equal to the sum  of the Commitments of all Lenders.   “Aggregate Loan Principal Balance”:  As of any date of determination, an amount equal to  the sum of the unpaid principal balance of all Loans then Outstanding.   “Aggregate Net Book Value”:  As of any date of determination, the sum of the Net Book  Values (such Net Book Values to be measured as of the last day of the month immediately  preceding such date of determination) of all Eligible Containers.   “Amendment Number 3 Effective Date”: The “Amendment Effective Date” under and as  defined in Amendment Number 3 to Loan and Security Agreement, dated as of November 13,  2020, among the Borrower, the Collateral Agent, the Administrative Agent and the Lenders party  thereto.  

 

  3    “Ancillary Fees”:  All fees paid to and received by the Manager under Lease Agreements  for drop-off, pick-up or repositioning charges, handling fees, repair payments and repair insurance  fees which are attributable to the Managed Containers.   “Anti-Corruption Laws”:  All of the following:  (a) the U.S. Foreign Corrupt Practices Act  of 1977, as amended; (b) the U.K. Bribery Act 2010, as amended; and (c) any other anti-bribery  or anti-corruption laws, regulations or ordinances in any jurisdiction in which the Borrower, the  Seller, or any of their Affiliates, is located or doing business.   “Anti-Money Laundering Laws”:  Applicable laws or regulations in any jurisdiction in  which the Borrower, the Seller, or any of their Affiliates, is located or doing business that relates  to money laundering, any predicate crime to money laundering, or any financial record keeping  and reporting requirements related thereto.   “Applicable Law”:  With respect to any Person or Managed Container, all existing laws,  rules, regulations (including proposed, temporary and final income tax regulations), statutes,  treaties, codes, ordinances, permits, certificates, orders and licenses of and interpretations by any  Governmental Authority and judgments, decrees, injunctions, writs, or orders of any court,  arbitrator or other administrative, judicial, or quasi judicial tribunal or agency of competent  jurisdiction applicable to such Person or Managed Container.   “Applicable Margin”: With respect to each Loan, (i) before the Conversion Date, one and  one-half percent (1.50%) per annum and (ii) on and after the Conversion Date, two and one-half  percent (2.50%) per annum (which percentage set forth in this clause (ii) includes any Step-Up  Margin with respect to such Loan(s).   “Approved Fund”:  Any Person (other than a natural Person) that is not a Competitor and  that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial  loans and similar extensions of credit in the ordinary course of its business and that is administered  or managed by (i) a Lender, (ii) the Administrative Agent, or (iii) an Affiliate of a Lender or the  Administrative Agent, or (iv) a Person that administers or manages a Lender.   “Asset Base”:  As of any date of determination, an amount equal to the excess of (1) the  sum of (a) the product of (i) the Advance Rate in effect on such date of determination, multiplied  by (ii) the sum of (A) the Aggregate Net Book Value, plus (B) up to the Receivables Threshold of  receivables resulting from the sale or other disposition of one or more Eligible Containers that  were either owned by the Borrower or subject to a Finance Lease for which the Borrower is the  lessor, so long as such receivables were not outstanding for more than 60 days (measured from the  issue date of such receivables), plus (b) the amounts on deposit in the Restricted Cash Account,  such amounts to be determined after giving effect to all withdrawals from and deposits to the  Restricted Cash Account on such date; over (2) an amount equal to the sum of (a) the aggregate  Manufacturer Debt with respect to all Managed Containers included in the calculation of the  amount set forth in clause (1) above and (b) the product of (i) the Advance Rate in effect on such  date of determination, multiplied by (ii) the outstanding Deferred Lease Amortization Amount as  of such date of determination.   

 

  4     “Asset Base Certificate”:  A certificate with appropriate insertions setting forth the  components of the Asset Base, as of the last day of the month for which such certificate is  submitted, which certificate shall be substantially in the form attached as Exhibit D to this  Agreement and shall be certified by an Authorized Signatory of the Manager.   “Asset Base Deficiency”:  As of any Payment Date, the condition that exists if the  Aggregate Loan Principal Balance (calculated after giving effect to the Scheduled Principal  Payment Amount to be paid on such Payment Date) exceeds the Asset Base.  If such term is used  in a quantitative context, the amount of the Asset Base Deficiency shall be equal to the amount of  such excess.   “Assignment and Acceptance”: Any properly completed agreement substantially in the  form of Exhibit F hereto.    “Authorized Officer”:  The Chief Executive Officer, President, Chief Financial Officer,  Treasurer or Assistant Treasurer of the Manager or the Borrower, or such other individuals  designated by written notice to the Administrative Agent from the Manager or the Borrower  authorized to execute notices, reports and other documents on behalf of the Manager or the  Borrower, respectively, required hereunder. The Manager or the Borrower may amend such list of  individuals from time to time by giving written notice of such amendment to the Administrative  Agent.   “Authorized Signatory”:  Any Person designated in a certificate of a secretary or assistant  secretary of a Person (or, in the case of a Person that is a limited liability company, any Person  designated in a certificate of a secretary or assistant secretary of the manager of such limited  liability company) or by written notice by such Person delivered to the Collateral Agent, as  authorized to execute documents and instruments on behalf of such Person.  “Availability”: As of any date of determination for any Lender, an amount equal to the  lesser of:  (A) the excess, if any, of (x) the Commitment of such Lender on such date of determination  over (y) such Lender’s Pro Rata Share of the Aggregate Loan Principal Balance (calculated without  giving effect to the requested Loan) on such date of determination; and  (B) such Lender’s Pro Rata Share of an amount equal to the excess (but not less than zero)  of (1) the Asset Base, minus (2) the Aggregate Loan Principal Balance (calculated without giving  effect to the requested Loan).  “Available Distribution Amount”:  This term shall have the meaning set forth in Section  302(c) of this Agreement.   “Bankruptcy Code”:  The United States Bankruptcy Reform Act of 1978, as amended.   “Base Rate”:   On any date, a fluctuating rate of interest per annum equal to the highest of  (i) the Federal Funds Effective Rate in effect on such date plus one half of one percent (0.50%),  (ii) the Prime Rate in effect on such date and (iii) Adjusted Term SOFR in effect on such date plus  1.00%.  Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds  

 

  5    Effective Rate or Adjusted Term SOFR shall be effective on the opening of business on the date  of such change.   “Base Rate Loan”:   Any portion of the Loan that bears interest calculated based on the  Base Rate.   “Basel III”:     (a) the agreements on capital requirements, a leverage ratio and liquidity standards  contained in “Basel III:  A global regulatory framework for more resilient banks and banking  systems” dated December 2010 (revised June 2011), “Basel III:  International framework for  liquidity risk measurement, standards and monitoring tools” dated January 2013 and “Guidance  for national authorities operating the countercyclical capital buffer” published by the Basel  Committee on Banking Supervision in December 2010, each as amended, supplemented or  restated;   (b) the rules for global systemically important banks contained in “Global systemically  important banks:  assessment methodology and the additional loss absorbency requirement - Rules  text” published by the Basel Committee on Banking Supervision in November 2011, as amended,  supplemented or restated; and   (c) any further guidance or standards published by the Basel Committee on Banking  Supervision relating to “Basel III”.   “Benefit Plan Investor”:  An “employee benefit plan” as defined in Section 3(3) of ERISA  that is subject to Title I of ERISA, a “plan” within the meaning of Section 4975(e)(1) of the Code  that is subject to Section 4975 of the Code or an entity whose underlying assets include “plan  assets” of any of the foregoing by reason of an employee benefit plan’s or plan’s investment in  such entity.   “Borrower”:  TIF Funding LLC, a limited liability company organized under the laws of  Delaware, and its permitted successors and assigns.   “Borrower Cash Interest Expense”:  With respect to the Borrower for any period, an  amount equal to the difference of (1) the Borrower Interest Expense for such period minus (2) to  the extent included in clause (1), (i) amortization or write off of debt issuance or deferred financing  costs, (ii) any non-cash interest expense related to any interest expense that has not been paid in  cash (which, for this purpose, shall include any amortization of hedge breakage costs not paid in  cash in such period), (iii) any incremental non-cash interest expense incurred as the result of an  accounting change and (iv) any termination payment under any Hedge Agreement for which the  Borrower received a cash capital contribution from its parent, plus (3) without duplication of  amounts included in clause (1), cash interest payments made in such period that were deducted  from Borrower Cash Interest Expense in a prior period.     “Borrower EBIT”:  For any period, means the sum of Borrower Net Income, plus the  following, without duplication, to the extent deducted in calculating such Borrower Net Income:   (1) all income tax expense in respect of any net income generated by the Borrower;  

 

  6     (2) Borrower Interest Expense;   (3) depreciation and amortization charges of the Borrower relating to any increased  depreciation or amortization charges resulting from purchase accounting adjustments or inventory  write-ups with respect to acquisitions or the amortization or write-off of deferred debt or equity  issuance costs;   (4) all other non-cash charges of the Borrower (other than depreciation expense) minus,  with respect to any such non-cash charge that was previously added in a prior period to calculate  Borrower EBIT and that represents an accrual of or reserve for cash expenditures in any future  period, any cash payments made during such period;   (5) any non-capitalized costs incurred in connection with financings, the acquisition of  Containers or dispositions (including financing and refinancing fees and any premium or penalty  paid in connection with redeeming or retiring Indebtedness prior to the stated maturity thereof  pursuant to the agreements governing such Indebtedness);   (6) all non-cash expenses attributable to Incentive Arrangements;   (7) to the extent that any portion of the Management Fees payable during such period was  accrued and not paid during such period, the aggregate amount of expenses attributable to all  payments or accruals of Management Fees during such period; and   (8) any indemnity payments made (regardless of to whom such payments are made)  pursuant to this Agreement;   in each case, for such period and as determined in accordance with GAAP.   “Borrower EBIT to Borrower Cash Interest Expense Ratio”:  As of the last day of the fiscal  quarter preceding such date of determination the ratio of (a) the aggregate amount of Borrower  EBIT for the period of the most recent four consecutive fiscal quarters of the Borrower ending on  or prior to the date of such determination (or such lesser number of fiscal quarters that elapsed  since the Closing Date), to (b) Borrower Cash Interest Expense for such four fiscal quarters (or  such lesser number of fiscal quarters that elapsed since the Closing Date).    “Borrower Expenses”:  For any Collection Period, direct out-of-pocket expenses that are  necessary or advisable, in the opinion of the managers of the Borrower, to maintain the corporate  existence of the Borrower, including:  administration expenses; accounting and audit expenses of  the Borrower; premiums for liability, casualty, fidelity, directors’ and officers’ and other  insurance; legal fees and expenses; other professional fees; franchise taxes and other similar taxes  (but excluding income taxes).   “Borrower Interest Expense”:  With respect to the Borrower for any period, the aggregate  of the interest expense of the Borrower for such period, as determined in accordance with GAAP,  and including, without duplication, (a) all amortization or accretion of original issue discount; (b)  the excess of (A) net cash costs paid in such period under all Hedge Agreements, over (B) cash  capital contributions received by the Borrower from its parent to pay the net cash costs referred to  in clause (A); and (c) amortization of fees under all Hedge Agreements.  

 

  7     “Borrower Net Income”:  For any period, the aggregate net income (or loss) of the  Borrower for such period, determined in accordance with GAAP; provided, however, that there  shall not be included in such Borrower Net Income:    (1) extraordinary gains or losses, as determined in accordance with GAAP;   (2) income or loss attributable to discontinued operations (including, without  limitation, operations disposed of during such period whether or not such operations were  classified as discontinued); and   (3) the cumulative effect of a change in accounting principles, as determined in  accordance with GAAP;    in each case, for such period.   “Breakage Costs”:  With respect to an Interest Accrual Period, any reasonable loss, cost or  expense incurred by a Lender, including, without limitation, any loss (including loss of anticipated  profits, net of anticipated profits in the reemployment of such funds), cost or expense incurred by  reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to  fund or maintain its Loan, as the case may be, during such Interest Accrual Period.   “Business Day”:  Any day other than a Saturday, a Sunday or a day on which banking  institutions in New York City, the city in which the Corporate Trust Office of the Collateral Agent  is located, or the city in which the headquarters of the Administrative Agent is located, are  authorized or are obligated by law, executive order or governmental decree to be closed.   “Capital Improvements”:  Any structural changes required to be made to the Containers so  as to comply with applicable governmental or industry standards.   “Casualty Loss”:  With respect to any Managed Container as of any date of determination,  any of the following events or conditions:   (i) total loss or destruction thereof;   (ii) theft or disappearance thereof without recovery within sixty (60) days after such  theft or disappearance becomes known to the Borrower, the Manager or any of its Affiliates;   (iii) damage rendering such Managed Container unfit for normal use and, in the  judgment of the Borrower or the Manager, beyond repair at reasonable cost; or   (iv) any condemnation, seizure, forced sale or other taking of title to or use of such  Managed Container.   “Casualty Proceeds”:  Any payment to, or on behalf of, the Borrower in connection with a  Casualty Loss.   “Change in Law”:  The occurrence, after the Closing Date, of any of the following:  (a) the  adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule,  

 

  8    regulation or treaty or in the administration, interpretation, implementation or application thereof  by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or  directive (whether or not having the force of law) by any Governmental Authority; provided that  notwithstanding anything herein to the contrary, (x) the Dodd-Frank Act and all requests, rules,  guidelines or directives thereunder or issued in connection therewith, (y) all requests, rules,  guidelines or directives promulgated by the Bank for International Settlement, the Basel  Committee on Banking Supervision (or any successor or similar authority) or the United States or  foreign regulatory authorities pursuant to Basel III, and (z) the implementation or application of,  or compliance with, CRD IV (as defined below) or CRR (as defined below), or any law or  regulation that implements or applies CRD IV or CRR shall, in each case, be deemed to be a  “Change in Law”, regardless of the date enacted, adopted or issued or implemented.  As used  herein, “CRD IV” means Directive 2013/36/EU of 26 June 2013 on access to the activity of credit  institutions and the prudential supervision of credit institutions and investment firms, amending  Directive 2002/87/EC and repealing Directive 2006/48/EC and 2006/49/EC, and “CRR” means  Articles 404-410 of the Capital Requirements Regulation No. 575/2013 of the European  Parliament and of the Council of 26 June 2013 and any related guidelines and regulatory technical  standards or implementing technical standards published by the European Banking Authority and  adopted by the European Commission.   “Change of Control”:  The occurrence the following:  the Manager shall (A) consolidate or  merge with or into any Person, unless (i) the Manager is the surviving entity, and (ii) at least  seventy percent (70%) of the consolidated assets of the Manager and its “Restricted Subsidiaries”  (as defined in the TCIL Credit Agreement) following such consolidation or merger are held in  connection with a Permitted Business, or (B) permit any purchase, sale, assignment, transfer,  conveyance or other acquisition or disposition of assets which would result in less than seventy  percent (70%) of the consolidated assets of the Manager and its “Restricted Subsidiaries”  (measured after giving effect to such transaction) to be held in connection with a Permitted  Business, or (C) cease to be a wholly-owned Subsidiary of Triton Holdco.   “Chattel Paper”:  Any lease or other chattel paper, as such term is defined in the UCC.   “Claim”:  This term shall have the meaning set forth in Section 15.1 of the Management  Agreement.   “Closing Date”:  December 13, 2018.   “Code”:  The Internal Revenue Code of 1986, as amended, or any successor statute thereto.   “Collateral”:  This term shall have the meaning set forth in Article II of this Agreement.    “Collateral Agent”:  The Person identified as such in the preamble hereto and performing  the duties of the Collateral Agent under this Agreement.   “Collateral Agent Fees”:  This term shall have the meaning set forth in Section 905 of this  Agreement.   “Collateral Agent Indemnified Amounts”:  This term shall have the meaning set forth in  Section 905 of this Agreement.  

 

  9     “Collection Account”:  This term shall have the meaning set forth in the Intercreditor  Collateral Agreement.   “Collection Period”:  For each Payment Date, the period from and including the first day  of the calendar month immediately preceding the calendar month in which such Payment Date  occurs through and including the last day of such calendar month.   “Collections”:  With respect to any Collection Period, all payments (including any cash  proceeds) actually received by the Borrower, or by the Manager on behalf of the Borrower, with  respect to the Containers and the other items of Collateral.   “Commercial Tort Claim”:  Any commercial tort claim, as such term is defined in the UCC.   “Commitment”: With respect to each Lender, such Lender’s obligation to make Loans up  to the maximum unpaid principal amount at any time shown on Schedule II, as hereafter modified  pursuant to each Assignment and Acceptance to which it is a party.    “Commitment Fee”:  The meaning set forth in Section 301(p) of this Agreement.   “Competitor”:  Any Person engaged and competing with any of the Borrower or the  Manager or any of their respective Affiliates in the container or chassis leasing business;  provided, however, that in no event shall (i) any Eligible Assignee or (ii) any insurance  company, bank, bank holding company, savings institution or trust company, fraternal benefit  society, pension, retirement or profit sharing trust or fund, or any collateralized bond obligation  fund or similar fund (or any trustee of any such fund) or any holder of any obligations of any  such fund (solely as a result of being such a holder) be deemed to be a Competitor unless, in  either such case, such Person or any of its Affiliates are directly and actively engaged in the  operation of a container or chassis leasing business.   “Concentration Limits”:  The following limitations on the types of Containers eligible to  be an Eligible Container (which limitations shall be applied on each Determination Date and each  Transfer Date and shall be calculated so as to give effect to the transfer under consideration), as  modified from time to time with the consent of the Majority Lenders:   (a) Maximum Concentration of Dry Freight Special Containers.  The sum of the Net  Book Values of all Eligible Containers that are Specialized Containers (other than refrigerated  Containers) shall not exceed twenty-five percent (25%) of the Aggregate Net Book Value;   (b) Maximum Concentration of Finance Leases.  The sum of the Net Book Values of  all Eligible Containers that are subject to a Finance Lease shall not exceed thirty percent (30%) of  the Aggregate Net Book Value;   (c) Maximum Concentration of Non-U.S. Currency Rentals.  The sum of the Net Book  Values of all Eligible Containers subject to Lease Agreements for which rentals are payable in a  currency other than Dollars and which are not the subject of a Currency Hedge Agreement shall  not exceed two percent (2%) of the Aggregate Net Book Value;  

 

  10     (d) Maximum Concentration of any Three Lessees.  The sum of the Net Book Values  of all Eligible Containers then on lease to any three lessees shall not exceed sixty-five percent  (65%) of the then Aggregate Net Book Value; provided, however, that if two or more lessees shall  engage in any transaction (whether through merger, consolidation, stock sale, asset sale or  otherwise) pursuant to which a lessee shall become the owner of, or interest holder in, any other  lessee’s leasehold interests in one or more Containers and the effect of such transaction is to cause  a breach of the foregoing threshold, then the foregoing threshold shall on the effective date of such  transaction be increased to an amount equal to the quotient, expressed as a percentage, (x) the  numerator of which shall equal the sum of (A) the sum of the Net Book Values of all Managed  Containers on lease to such transacting lessees immediately prior to such transaction, and (B) the  sum of the Net Book Values of all Managed Containers then on lease to the two other lessees  having the most Managed Containers then on lease with the Borrower (measured by Net Book  Value) and (y) the denominator of which shall equal the then Aggregate Net Book Value); and  provided further that, if the foregoing limitation has been increased above sixty-five percent (65%)  by operation of the above proviso, then any additional Managed Containers subsequently leased  to any of such three lessees shall not be considered Eligible Containers until such time as the sum  of the Net Book Values of all Managed Containers then on lease to such three lessees does not  exceed an amount equal to sixty-five percent (65%) of the then Aggregate Net Book Value; and   (e) Maximum Concentration for any Single Lessee.  The sum of the Net Book Values  of all Eligible Containers then on Lease to any single lessee shall not exceed an amount equal to  (A) with respect to any of the lessees set forth in Schedule I to this Agreement, the percentage of  the Aggregate Net Book Value set opposite the name of such lessee on such schedule, and (B)  with respect to any lessee not covered by clause (A), seven percent (7%)  of the then Aggregate  Net Book Value; provided, however, that if two or more lessees shall engage in any transaction  (whether through merger, consolidation, stock sale, asset sale or otherwise) pursuant to which a  lessee shall become the owner of, or interest holder in, any other lessee’s leasehold interests in one  or more Eligible Containers, the foregoing threshold set forth in clauses (A) and (B) shall on the  effective date of such transaction be increased with respect to such acquiring or, in the case of a  merger, surviving lessee to equal the greater of (i) the sum of the applicable percentage limitations  for the transacting lessees as set forth in clauses (A) and (B) above, and (ii) a quotient, expressed  as a percentage, (x) the numerator of which shall equal the sum of the Net Book Values of all  Managed Containers on Lease to such transacting lessees immediately prior to such transaction  and (y) the denominator of which shall equal the then Aggregate Net Book Value).   “Conduit Lender”:  Each Person designated as a Conduit Lender on its signature page  hereto.   “Consolidated Subsidiaries”:  With respect to any Person, each Restricted Subsidiary of  such Person that is required to be consolidated with such Person in accordance with GAAP.   “Container”:  Any marine and maritime container (including dry cargo containers,  refrigerated containers (including the associated refrigeration machine), generator sets, gps devices  and Specialized Containers) to which any Person either (i) has good title and that is held for lease  or sale or (ii) is lessor under any Finance Lease.   

 

  11     “Container Fleet”:  At any time, the fleet of Containers owned or managed by TCIL and/or  managed by TCIL on behalf of third parties and its Affiliates, including the Managed Containers.   “Container Identification Number”:  The unique alpha-numeric reference assigned to a  Managed Container which is painted on or affixed to such Managed Container.   “Container Related Agreement”:  Any agreement relating to the Managed Containers or  agreements relating to the use or management of such Managed Containers whether in existence  on the Closing Date or thereafter acquired, including, but not limited to, all Leases, the  Management Agreement, the Intercreditor Collateral Agreement, the Contribution and Sale  Agreement and the Chattel Paper to the extent it arises out of or in any way relates to the Managed  Containers now owned or hereafter acquired by the Borrower.   “Container Representations and Warranties”:  With respect to each Container, the  representations and warranties of the Seller as set forth in paragraphs (v) through (ii) inclusive of  Section 3.01 of the Contribution and Sale Agreement.   “Container Revenues”:  For any Collection Period, all amounts paid to and received by the  Manager which are attributable to the Managed Containers, including but not limited to (i) per  diem rental charges (excluding any prepayments thereof), Ancillary Fees and all charges paid in  respect of the Managed Containers pursuant to Lease Agreements (including, without duplication,  payments on Finance Leases in respect of Managed Containers) but excluding Excluded Amounts,  (ii) amounts received from the manufacturers or sellers of the Managed Containers for breach of  sale warranties relating thereto or in settlement of any claims, losses, disputes or proceedings  relating to the Managed Containers, (iii) amounts received from any other Person in settlement of  any claims, losses, disputes or proceedings relating to the Managed Containers, including lessee  default insurance and any other insurance proceeds relating thereto, and (iv) any insurance  premiums relating to the Managed Containers which have been refunded by the insurer.   Notwithstanding the foregoing, Container Revenues shall not include Sales Proceeds.   “Container Service Provider”:  This term shall have the meaning set forth in the  Management Agreement.   “Container Transfer Certificate”:  A Container Transfer Certificate, substantially in the  form of Exhibit B to the Contribution and Sale Agreement, executed and delivered by the Seller  and the Borrower in accordance with the terms of the Contribution and Sale Agreement.   “Contingent Obligation”:  As to any Person, means any obligation of such Person as a  result of such Person being a general partner of any other Person, unless the underlying obligation  is expressly made non-recourse as to such general partner, and any obligation of such Person  guaranteeing or intended to guarantee any Indebtedness, leases, dividends or other obligations  (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether  directly or indirectly, including, without limitation, any obligation of such Person, whether or not  contingent, (i) to purchase any such primary obligation or any property constituting direct or  indirect security therefor, (ii) to advance or supply funds (x) for the purchase or payment of any  such primary obligation or (y) to maintain working capital or equity capital of the primary obligor  or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property,  

 

  12    securities or services primarily for the purpose of assuring the owner of any such primary  obligation of the ability of the primary obligor to make payment of such primary obligation or (iv)  otherwise to assure or hold harmless the holder of such primary obligation against loss in respect  thereof; provided, however, that the term Contingent Obligation shall not include endorsements of  instruments for deposit or collection in the ordinary course of business.  The amount of any  Contingent Obligation shall be deemed to be an amount equal to the lesser of (x) the stated or  determinable amount of the primary obligation in respect of which such Contingent Obligation is  made or, if not stated or determinable, the maximum reasonably anticipated liability in respect  thereof (assuming such Person is required to perform thereunder) as determined by such Person in  good faith and (y) the stated amount of such Contingent Obligation.   “Contracts”:  All contracts, undertakings, franchise agreements or other agreements (other  than rights evidenced by Chattel Paper, Documents or Instruments) in or under which the Borrower  may now or hereafter have any right, title or interest, including, without limitation, the  Management Agreement, the Contribution and Sale Agreement, any Interest Rate Hedge  Agreements, any Currency Hedge Agreements and any related agreements, security interests or  UCC or other financing statements and, with respect to an Account, any agreement relating to the  terms of payment or the terms of performance thereof.   “Contribution and Sale Agreement”:  The Contribution and Sale Agreement, dated as of  the Closing Date between the Seller and the Borrower, as such agreement shall be amended,  modified or supplemented from time to time in accordance with its terms.   “Control Agreement”:  This term shall have the meaning set forth in Section 303(b) of this  Agreement.   “Conversion Date”:  With respect to the Loans, the earlier to occur of (i) the date on which  an Early Amortization Event occurs and (ii) the Scheduled Commitment Expiration Date.   “Corporate Trust Office”:  The principal office of the Collateral Agent at which at any  particular time its corporate trust business shall be administered, which office shall be located at  1100 North Market Street, Rodney Square North, Wilmington, DE 19890.   “Counterparty Collateral Account”:  This term shall have the meaning set forth in Section  628(e) of this Agreement.  “CRR”:  All of the following: (i) Articles 404-410 of Regulation (EU) No. 575/2013 of the  European Parliament and of the Council of 26 June 2013; (ii) Commission Delegated Regulation  (EU) No 625/2014 of 13 March 2014 and Commission Implementing Regulation (EU) No  602/2014 of 4 June 2014; (iii) any related guidelines and regulatory technical standards or  implementing technical standards published from time to time by the European Banking Authority  (including any successor or replacement agency or authority) and/or the European Commission  and (iv) the guidelines and related documents previously published in relation to the preceding risk  retention legislation by the European Banking Authority (and/or its predecessor, the Committee of  European Banking Supervisors) which continue to apply to the provisions of Articles 404-410 of  the CRR. Any reference to " Articles 404-410 of the CRR" is deemed to include any successor or  replacement provisions included in any subsequent European Union directive or regulation.  

 

  13     “CSP Compensation”: This term shall have the meaning set forth in the Management  Agreement.   “Currency Hedge Agreement”:  An agreement between the Borrower and the Currency  Hedge Counterparty named therein, including any schedules and confirmations prepared and  delivered in connection therewith, each in form and substance acceptable to the Administrative  Agent, with respect to one or more Lease(s) for which the related lessee is obligated to make  payments denominated in a currency other than Dollars pursuant to which (i) the Borrower will  receive payments from, or make payments to, the Currency Hedge Counterparty in such currency  and (ii) recourse by the Currency Hedge Counterparty to the Borrower is limited to actual rental  payments received under such Lease.   “Currency Hedge Counterparty”:  Any Eligible Currency Hedge Counterparty or any  counterparty to a currency hedging instrument permitted to be entered into pursuant to this  Agreement.  “Customary Practices”: The customary practices used by the Manager, as the same may  change from time to time.     “Default Fee”:  For any Payment Date on which interest on overdue amounts is payable in  accordance with the provisions of Section 301(i) hereof, the amount of interest payable on such  Payment Date pursuant to the provisions of Section 301(i).     “Default Rate”:  For any date of determination, an interest rate per annum equal to the sum  of (i) the interest rate then otherwise in effect, plus (ii) two percent (2%).  “Defaulting Lender” Any Lender that (a) has failed to fund any portion of any Loans  required to be funded by it hereunder within two Business Days of the date required to be funded  by it hereunder, (b) has otherwise failed to pay over to the Administrative Agent or any other  Lender any other amount required to be paid by it under the Transaction Documents within two  Business Days of the date when due, unless the subject of a good faith dispute, (c) has notified the  Borrower (or any of its Affiliates) or the Administrative Agent in writing that it does not intend to  comply with its funding obligations hereunder, or has made a public statement to that effect, (d)  has failed, within three Business Days after written request by the Administrative Agent or the  Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply  with its prospective funding obligations hereunder (provided that such Lender shall cease to be a  Defaulting Lender pursuant to this clause (d) upon receipt of such written confirmation by the  Administrative Agent and the Borrower), (e) has, or has a direct or indirect parent company that  has, (i) become the subject of a proceeding under any Insolvency Law, or (ii) had appointed for it  a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or  similar Person charged with reorganization or liquidation of its business or assets, including the  Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in  such a capacity, or (f) is the subject of a Bail-In-Action; provided that (i) a Delaying Lender shall  not be classified as a Defaulting Lender prior to the Delaying Funding Date and (ii) a Lender shall  not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest  in that Lender or any direct or indirect parent company thereof by a Governmental Authority so  long as such ownership interest does not result in or provide such Lender with immunity from the  

 

  14    jurisdiction of courts within the United States or from the enforcement of judgments or writs of  attachment on its assets or permit such Lender (or such Governmental Authority) to reject,  repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any  determination by the Administrative Agent that a Lender is a Defaulting Lender under clauses (a)  through (f) above shall be conclusive and binding absent manifest error, and such Lender shall be  deemed to be a Defaulting Lender (subject to Section 301(m)) upon delivery of written notice of  such determination to the Borrower and each Lender.   “Deferred Lease Amortization Amount”: For any date of determination, the aggregate  outstanding deferred revenue liability as of such date determined in accordance with GAAP as  reflected on the Manager’s books and records resulting from Lease prepayments with respect to  the Managed Containers.   “Deficiency Amount”:  Each of the following: (a) for each Payment Date other than the  Final Maturity Date, any shortfall in the aggregate amount available in the Distribution Account  for the Loans or any other amounts available under this Agreement to pay the Interest Payment for  such Payment Date, and (b) on the Final Maturity Date, any shortfall in the aggregate amount  available in the Distribution Account or any other amounts available under this Agreement to pay  the Aggregate Loan Principal Balance, accrued but unpaid interest thereon and all other amounts  owing to the Lenders pursuant to the terms of the Transaction Documents.   “Delayed Amount”: The meaning specified in Section 301(m)(2).   “Delaying Funding Date”: The meaning specified in Section 301(m)(1).  “Delaying Funding Notice”: The meaning specified in Section 301(m)(1).  “Delaying Lender”: The meaning specified in Section 301(m)(2).   “Deposit Accounts”:  Any deposit accounts, as such term is defined in the UCC.  “Designated Delay Lender”: Any Lender that shall have delivered a written certification to  the Borrower to the effect that (x) it has incurred charges under Basel III, or would incur charges  as of such date under Basel III if it were not a Designated Delay Lender hereunder, in respect of  its Commitment, or the principal amount of its Loans, based on its “liquidity coverage ratio” under  Basel III, which may include external charges incurred by such Lender or internal charges incurred  by any business of such Lender managing such Lender’s Commitment and Pro Rata Share of the  Aggregate Loan Principal Balance or its obligations hereunder, and (y) will exercise a similar right  to delay funding in other transactions that are similar to the transactions contemplated by the  Transaction Documents.  For the avoidance of doubt, any Lender that delivers a written  certification to the Borrower in accordance with the preceding sentence shall remain a Designated  Delay Lender under this Agreement unless and until such Lender delivers written notice to the  Borrower of such Lender’s decision to cease its treatment as a Designated Delay Lender.   “Determination Date”:  The third (3rd) Business Day prior to any Payment Date.   “Direct Operating Expenses”:  All direct expenses and costs incurred in connection with  the ownership, use and/or operation of a Managed Container, including but not limited to: (i)  

 

  15    agency costs and expenses; (ii) depot fees, handling, and storage costs and expenses; (iii) survey,  maintenance and repair expenses (including the actual or estimated cost of repairs to be made  pursuant to a damage protection plan); (iv) repositioning expense (v) the cost of inspecting,  marking and remarking such Managed Container; (vi) third-party fees for bankruptcy recovery;  (vii) legal fees incurred in connection with enforcing rights under the leases of such Managed  Container or repossessing such Managed Container; (viii) insurance expense; (ix) federal, state,  local and foreign taxes, levies, duties, charges, assessments, fees, penalties, deductions or  withholdings assessed, charged or imposed upon or against such Managed Container, including  but not limited to ad valorem, gross receipts and/or other property taxes imposed against such  Managed Container or against the revenues generated by such Managed Container (but not  including income taxes imposed on the Manager or any of its Affiliates); (x) expenses, liabilities,  claims and costs (including without limitation reasonable attorneys’ fees) incurred by the Borrower  or the Manager (on behalf of the Borrower) by any third party arising directly or indirectly  (whether wholly or in part) out of the state, condition, operation, use, storage, possession, repair,  maintenance or transportation of such Managed Container; (xi) expenses and costs (including legal  fees) of pursuing claims against manufacturers or sellers of such Managed Container; and (xii)  non-recoverable sales and value-added taxes on such expenses and costs; provided, however, that  in no event shall either of the following be considered a Direct Operating Expense: (a) any selling,  general and administrative expenses of TCIL, the Borrower or any of their Subsidiaries, or (b) the  Management Fee.   “Director Services Agreement”:  The letter agreement between TCIL and the Director  Services Provider, and all amendments and supplements thereto.   “Director Services Provider”:  Lord Securities Corporation and its permitted successors  and assigns.  “Disposition Fees”: With respect to any Managed Container that (i) has been sold to a third  party, or (ii) is the subject of a Casualty Loss, an amount equal to the product of (x) five percent  (5%) and (y) the Sales Proceeds realized thereon.   “Distribution Account”:  The account or accounts established pursuant to Section 302 of  this Agreement.   “Documents”:  Any documents, as such term is defined in the UCC.   “Dodd Frank Act”:  The Dodd-Frank Wall Street Reform and Consumer Protection Act.   “Dollars”:  The lawful money of the United States of America. This definition will be  equally applicable to the sign $.   “Early Amortization Event”:  The occurrence of any of the events or conditions set forth  in Section 1201 of this Agreement.   “Eligible Account”:  Either (a) a segregated account with an Eligible Institution or (b) a  segregated trust account with the corporate trust department of a depository institution organized  under the laws of the United States or any of the states thereof, including the District of Columbia  (or any domestic branch of a foreign bank), and acting as a trustee for funds deposited in such  

 

  16    account, so long as the senior securities of such depository institution shall have a credit rating  from a nationally recognized rating agency in one of its generic credit rating categories no lower  than Aa2 or AA, as the case may be, or (c) any account held with the Collateral Agent.   “Eligible Assignee”:  Any of the following: (a) an existing Lender; (b) an Affiliate of an  existing Lender; (c) an Approved Fund and (d) a commercial paper conduit for which a Lender or  an Affiliate of a Lender provides liquidity support.   “Eligible Container”:  Any Managed Container which, individually or when considered  with all Managed Containers then owned by the Borrower that are included in the Asset Base, as  the case may be, shall comply with each of the following requirements:   (i) No Liens. The Borrower either (A) has good and marketable title to such Managed  Container, free and clear of all Liens other than (x) Permitted Encumbrances and (y) a  Manufacturer’s Lien for the unpaid purchase price of such Managed Container so long as such  unpaid purchase price is paid within two Business Days following the date of acquisition by the  Borrower of such Managed Container; or (B) is the lessor of such Managed Container under a  Finance Lease for which the filing specified in Section 2.03(a)(iii) of the Contribution and Sale  Agreement has been made and the Borrower has good title to such Finance Lease free and clear of  all Liens other than Permitted Encumbrances. If any Manufacturer’s Lien is not discharged within  such two Business Day period, then the related Managed Container shall cease to be an Eligible  Container until such Manufacturer’s Lien is discharged; and   (ii) Specifications. Such Managed Container substantially conforms to the standard  specifications used by the Manager from time to time for that category of Managed Container and  to any applicable standards promulgated by the International Organization for Standardization;  and   (iii) Container Representations and Warranties. Such Managed Container complies with  the Container Representations and Warranties; and   (iv) Casualty Losses. Such Container shall not have suffered a Casualty Loss; and   (v) Concentration Limits. Such Container, when considered with all other Eligible  Containers owned by the Borrower, satisfies the Concentration Limits; and   (vi) Rights of Lessor Are Assignable.  The rights of the lessor under a Lease Agreement  to which a Managed Container is subject (including the right to receive payments from end users)  are assignable; and   (vii) Marketable Title.  The Seller shall have had good and marketable title to such  Managed Container (x) free and clear of Liens other than Permitted Encumbrances or (y) a  Managed Container that is subject to a Finance Lease under which the Seller is the lessor and the  Borrower has good title to such Finance Lease free and clear of all Liens other than Permitted  Encumbrances; and   (viii) Transfer of Title.  The Seller and the Borrower shall have taken all necessary  actions to transfer title to such Managed Container (other than if such Managed Container is  

 

  17    subject to a Finance Lease for which the Borrower is the lessor) and all related Leases from the  Seller to the Borrower; and   (ix) No Violation.  The contribution and conveyance of such Managed Container does  not violate any agreement of the Seller; and   (x) General Terms.  The Lease for such Managed Container shall contain terms that  are not substantially different than the terms typically included in a Lease for a Container in the  Container Fleet, it being understood that, as a matter of normal business practice, some lessees of  Containers in the Container Fleet may negotiate Leases that include terms that are more favorable  than terms in other leases;   (xi) Adverse Selection.  Such Managed Container was not subject to any adverse  selection procedures other than as contemplated by the Transaction Documents by either the Seller  or the Manager, whichever may be applicable, in choosing Containers to be transferred to the  Borrower;   (xii) Original Equipment Cost.  The Original Equipment Cost of such Container shall be  no greater than the cost of such Container that is recorded on the Seller’s books at the time of sale  to the Borrower;   (xiii) Lessee Insolvency.  As of the related Transfer Date, the Managed Container is not  then under lease to a lessee which, to the best knowledge of Manager, is the subject of an  insolvency proceeding; and   (xiv) No Sanctioned Person or Sanctioned Country.  Such Container is not then on lease  to a Sanctioned Person or, to the best knowledge of the Borrower or the Manager, is not subleased  to a Sanctioned Person or located, operated or used in a Sanctioned Country in violation of  Sanctions applicable to the Borrower or Manager.   “Eligible Currency Hedge Counterparty”:  Any bank or other financial institution which is  otherwise acceptable to the Majority Lenders.   “Eligible Institution”:  Any one or more of the following institutions:  (i) the corporate trust  department of the Collateral Agent or (ii) a depositary institution accepted to the Majority Lenders.   “Eligible Interest Rate Hedge Counterparty”:  Any of the following:   (A) any bank which has both (x) a long-term unsecured debt rating of at least “A-” or better  from S&P or “A3” or better from Moody’s and (y) a short-term unsecured debt rating of “A-1” or  better from S&P and “P-1” or better from Moody’s;    (B) any bank or other financial institution which is acceptable to Majority Lenders; or   (C) any Person that is a Lender or an Affiliate of a Lender on the date on which the related  Hedge Agreement was entered into.  

 

  18     “Eligible Investments”:  One or more of the following:   (i) direct obligations of, and obligations fully guaranteed as to the full and timely  payment by the United States or any agency or instrumentality of the United States of America the  obligations of which are expressly backed by the full faith and credit of the United States of  America; provided that notwithstanding the foregoing, the following securities shall not be Eligible  Investments:  (i) General Services Administration participation certificates; (ii) U.S. Maritime  Administration guaranteed Title XI financing; (iii) Financing Corp. debt obligations; (iv) Farmers  Home Administration Certificates of Beneficial Ownership; and (v) Washington Metropolitan  Area Transit Authority guaranteed transit bonds;   (ii) demand deposits, time deposits or certificates of deposit of any depository  institution or trust company incorporated under the laws of the United States of America or any  State thereof and subject to supervision and examination by Federal or State banking or depository  institution authorities; provided, however, that at the time of the investment or contractual  commitment to invest therein, the commercial paper or other short-term unsecured debt obligations  (other than such obligations the rating of which is based on the credit of a Person other than such  depository institution or trust company) thereof shall be rated “A-1+” by S&P and “Prime 1” by  Moody’s;   (iii) commercial paper that, at the time of the investment or contractual commitment to  invest therein, is rated “A-1+” by S&P and “Prime 1” by Moody’s;   (iv) bankers’ acceptances issued by any depository institution or trust company referred  to in clause (ii) above;   (v) repurchase obligations with respect to any security pursuant to a written agreement  that is a direct obligation of, or fully guaranteed as to the full and timely payment by, the United  States of America or any agency or instrumentality thereof the obligations of which are backed by  the full faith and credit of the United States of America, in either case entered into with (x) a  depository institution or trust company (acting as principal) described in clause (ii) or (y) a  depository institution or trust company the deposits of which are insured by the Federal Deposit  Insurance Corporation and whose commercial paper or other short-term unsecured debt obligations  are rated “A-1+” by S&P and “Prime 1” by Moody’s and long-term unsecured debt obligations  are rated “AAA” by S&P and “Aaa” by Moody’s; and   (vi) money market mutual funds registered under the Investment Company Act of 1940,  as amended (including funds for which an Affiliate of the Collateral Agent is acting as investment  advisor), having a rating, at the time of such investment, from a nationally recognized rating  agency in the highest investment category granted thereby;   provided that none of the foregoing obligations or securities shall constitute Eligible  Investments if (a) such obligation or security has a qualified rating by S&P (i.e., one with a  qualifying suffix), (b) such obligation or security does not have a fixed principal amount due at its  maturity and includes any embedded options, unless full payment of principal is paid in cash upon  the exercise of the embedded option, (c) payments with respect to such obligations or securities or  proceeds of disposition are subject to withholding taxes by any jurisdiction, unless the payor is  

 

  19    required to make “gross-up” payments that cover the full amount of any such withholding tax on  an after-tax basis, (d) such obligation or security is purchased at a price greater than 100% of the  principal or face amount thereof or (e) such obligation or security is subject of a tender offer,  voluntary redemption, exchange offer, conversion or other similar action.   Each of the Eligible Investments may be purchased by the Collateral Agent or through an  Affiliate of the Collateral Agent.   “Entitlement Order”:  This term shall have the meaning set forth in the UCC.   “Equipment”:  This term shall have the meaning set forth in the UCC.   “ERISA”:  The Employee Retirement Income Security Act of 1974, as amended.   “ERISA Affiliate”:  With respect to any Person, any other Person with respect to which it  is a member of a controlled group of corporations or a controlled group of trades or businesses, as  described in Section 414(b) or (c) of the Code.   “Estimated Net Proceeds”:  This term shall have the meaning set forth in Section 5.1.1 of  the Management Agreement.   “Event of Default”:  This term has the meaning set forth in Section 801 of this Agreement.   “Excess Deposit”:  This term has the meaning set forth in Section 5.1.2 of the Management  Agreement.   “Exchange Act”:  The Securities Exchange Act of 1934, as amended.   “Excluded Amounts”:  Any payments received from the lessee under a Lease in connection  with any taxes, fees or other charges imposed by any Governmental Authority, or indemnity  payments for the benefit of the originator of such Lease in its individual capacity made pursuant  to such Lease.   “Excluded Taxes”:  Has the meaning set forth in Section 301(q)(1).    “Fair Market Value”:  With respect to any asset (including a Container), shall mean the  price at which a willing buyer, not an Affiliate of the seller, and a willing seller who does not have  to sell, would agree to purchase and sell such asset, which amount shall be determined in good  faith by the board of directors or other governing body or, pursuant to a specific delegation of  authority by such board of directors or governing body, a designated senior executive officer of  the Borrower, the Manager or the Seller.   “FASB 133”:  Statement of Financial Accounting Standards No. 133 – “Accounting for  Derivative Instruments and Hedging Activities” issued by the Financial Accounting Standards  Board.   “FATCA”:  Sections 1471 through 1474 of the Code, as amended, any regulations  thereunder or other official interpretations thereof, any agreements entered into pursuant to Section  

 

  20    1471(b)(1) of the Code and any intergovernmental agreements (including any foreign legislation,  rules, regulations, guidance notes or other, similar guidance adopted pursuant to or implementing  such agreements) entered into in connection with such Sections.   “FATCA Withholding Tax”:  Any withholding or deduction required pursuant to FATCA.   “Federal Funds Effective Rate”:  For any day, the weighted average of the rates on  overnight federal funds transactions with members of the Federal Reserve System arranged by  federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve  Bank of New York, and determined by the Administrative Agent or, if such rate is not so published  on the next succeeding Business Day, the average of the quotations for the day of such transactions  received by the Administrative Agent from three federal funds brokers of recognized standing  selected by the Administrative Agent.   “Federal Reserve Bank”:  One of the twelve regional banks operated by the Federal Reserve  System established by the Federal Reserve Act of 1913 to regulate the U. S. monetary and banking  system.   “Federal Reserve Board”:  The Board of Governors of the Federal Reserve System or any  successor thereto.  “Fee Letter”: That certain upfront fee letter, dated as of the Closing Date, among the  Lenders and the Borrower.   “Final Maturity Date”:  The four year anniversary date of the Conversion Date, or if such  date is not a Business Day, the immediately following Business Day.    “Finance Lease”:  Any lease classified as a “finance lease” under GAAP, but excluding,  for the avoidance of doubt, any Operating Lease.   “Financial Assets”:  This term shall have the meaning set forth in the UCC.  “Funding Date”:  Any Business Day on which a Loan is funded in accordance with the  terms of this Agreement.   “Funding Notice”:  A funding notice substantially in the form of Exhibit H hereto.   “General Intangibles”:  Any “general intangibles”, as such term is defined in the UCC.   “Generally Accepted Accounting Principles” or “GAAP”:  Those generally accepted  accounting principles and practices which are recognized as such by the American Institute of  Certified Public Accountants acting through its Accounting Principles Board or by the Financial  Accounting Standards Board or through other appropriate boards or committees thereof  consistently applied as to the party in question.   “Governmental Authority”:  Any of the following:  (a) any federal, state, county, municipal  or foreign government, or political subdivision thereof, (b) any governmental or quasi- governmental agency, authority, board, bureau, commission, department, instrumentality or public  

 

  21    body, (c) any court or administrative tribunal or (d) with respect to any Person, any arbitration  tribunal to whose jurisdiction that Person has consented.   “Grant”:  To grant, bargain, sell, convey, assign, transfer, mortgage, pledge, create and  perfect a security interest in and right of set-off against, deposit, set over and confirm.   “Hedge Agreement”: Any Interest Rate Hedge Agreement or Currency Hedge Agreement,  as applicable.   “Hedge Counterparty”:  Any Interest Rate Hedge Counterparty or Currency Hedge  Counterparty, as applicable.   “Hedge Effective Date”:   The earliest to occur of (i) the fifth (5th) Business Day after the  first date on which Adjusted Term SOFR exceeds four percent (4%) per annum, (ii) the initial date  after the Closing Date on which the Aggregate Loan Principal Balance exceeds $100,000,000 for  the six (6) consecutive calendar months immediately prior to such date and (iii) the date on which  an Event of Default or an Early Amortization Event occurs.   “Hedging Requirement”:  This term shall have the meaning set forth in Section 628(a) of  this Agreement.   “Incentive Arrangements”:  With respect to any Person, any (a) earn-out agreements, (b)  stock appreciation rights, (c) “phantom” stock plans, (d) employment agreements, (e) non- competition agreements and (f) incentive and bonus plans entered into by such Person for the  benefit of, and in order to retain, executives, officers or employees of Persons or businesses.   “Increase Effective Date”: The meaning specified in Section 301(l)(5).   “Increased Costs”:  Any fee, expense or increased cost actually charged to or incurred by  an Indemnified Party for which such Indemnified Party is entitled to compensation pursuant to the  provisions hereof.   “Indebtedness”:  With respect to any Person without duplication, means (i) all indebtedness  (including principal, interest, fees and charges) of such Person for borrowed money, (ii) all  obligations of such Person in respect of letters of credit, bankers’ acceptances, and bank guaranties  issued for the account of such Person, (iii) all indebtedness of the types described in clause (i), (ii),  (iv), (v) or (vi) of this definition secured by any Lien on any property owned by such Person,  whether or not such indebtedness has been assumed by such Person (provided that, if the Person  has not assumed or otherwise become liable in respect of such indebtedness, such indebtedness  shall be deemed to be in an amount equal to the lesser of (A) the outstanding amount of such  Indebtedness and (B) the fair market value of the property to which such Lien relates as determined  in good faith by such Person), (iv) the aggregate amount of all capitalized lease obligations of such  Person, (v) all Contingent Obligations of such Person and (vi) all obligations of such Person issued  or assumed as the deferred purchase price of property or services, all conditional sale obligations  and all obligations under any title retention agreement (but excluding trade accounts payable and  other accrued liabilities arising in the ordinary course of business that are either (x) not overdue  by 90 days or more or (y) being contested in good faith by appropriate proceedings promptly  instituted and diligently conducted).  For the avoidance of doubt, the term Indebtedness shall not  

 

  22    include obligations in respect of swaps, caps or other hedging or derivative items that are permitted  by this Agreement.    “Indemnified Party”:  The Administrative Agent, each Lender and each member of the  Related Group of each Lender.   “Indemnity Amounts”:  Indemnity payments to the Lenders of the Loan (or their related  creditor liquidity providers), or any Interest Rate Hedge Counterparty or any Currency Hedge  Counterparty for increased costs, funding costs, breakage costs, taxes, other taxes, expenses or  other indemnity payment.   “Independent”:  A natural person who at the date of his appointment as a manager, director  or officer possesses the following qualifications:  (a) has prior experience as an independent  director or manager for a corporation or a limited liability company, the corporate instruments of  which require the unanimous consent of all independent directors thereof before such corporation  or limited liability company could consent to the institution of proceedings against it or could file  a petition seeking relief under any applicable bankruptcy or insolvency law; and (b) has at least  three years of employment experience with one or more entities that provide, in the ordinary course  of their respective businesses, advisory, management or placement services to issuers of  securitization or structured finance instruments, agreements or securities; provided always that  such individual at the date of such individual’s appointment as such manager, director or officer,  or at any time in the preceding five years, or during such person’s tenure shall not be (other than  such person’s service as an independent director, independent member  or independent manager  of TCIL or an Affiliate thereof):  (i) an employee, director, shareholder, manager, partner or officer  of TCIL or an Affiliate thereof; (ii) a customer or supplier of TCIL or an Affiliate thereof; (iii) a  beneficial owner at the time of such individual’s appointment as an independent manager, or at  any time thereafter while serving as an independent manager, of more than a de minimis amount  of the voting securities of TCIL or an Affiliate thereof; (iv) affiliated with a significant customer,  supplier or creditor of TCIL or an Affiliate thereof; (v) a party to any significant personal service  contracts with TCIL or an Affiliate thereof; or (f) a member of the immediate family of a person  described in (i) or (ii) above.   “Independent Accountants”:  KPMG US LLP or other independent certified public  accountants of internationally recognized standing selected by the Borrower and acceptable to the  Administrative Agent and the Majority Lenders.   “Independent Director”:  A director or manager of the Borrower who is Independent.   “Insolvency Law”:  The Bankruptcy Code or similar Applicable Law in any state or other  applicable jurisdiction.   “Insolvency Proceeding”:  Any Proceeding under any applicable Insolvency Law.   “Instruments”:  Any instrument, as such term is defined in the UCC, including, without  limitation, all notes, certificated securities, and other evidences of indebtedness, other than  instruments that constitute, or are a part of a group of writings that constitute, Chattel Paper.  

 

  23     “Intercreditor Collateral Agreement”:  The Second Amended and Restated Intercreditor  Collateral Agreement, dated as of December 20, 2021, among TCIL and (in each case as defined  therein) the various Triton Entities and Triton Secured Parties from time to time party thereto, as  such agreement has been and may be amended, modified or supplemented from time to time in  accordance with its terms.    “Interest Accrual Period”:  With respect to each Payment Date, the period commencing on  and including the immediately preceding Payment Date (or in the case of the initial Payment Date,  commencing on and including the initial Funding Date) and ending on and including the day before  the current Payment Date.  “Interest Payment”:  With respect to each Payment Date, an amount equal to the interest  payable on such Payment Date on the Aggregate Loan Principal Balance pursuant to Section  301(h) of this Agreement.  No such Interest Payment shall include Default Fees.   “Interest Rate Hedge Agreement”:  An ISDA interest rate swap or cap agreement, collar or  other hedging instrument between the Borrower and the Interest Rate Hedge Counterparty named  therein that complies with the guidelines set forth in Section 628 of this Agreement and pursuant  to which (i) the Borrower will receive payments from, or make payments to, the Interest Rate  Hedge Counterparty based on Adjusted Term SOFR (including, when applicable, any alternative  reference rate is established in accordance with the definition of Term SOFR), (ii) recourse by the  Interest Rate Hedge Counterparty to the Borrower is limited to distributions in accordance with  the priority of payments set forth in Section 302 and Section 806 of this Agreement, as applicable,  (iii) contains a “No Petition” covenant with respect to the Borrower that binds the Interest Rate  Hedge Counterparty to terms that are materially similar to the terms binding on the Collateral  Agent pursuant to Section 1311 of this Agreement; and (iv)  does not prohibit the pledge or  assignment thereof by the Borrower to the Collateral Agent. The Interest Rate Hedge Agreements  in effect on April 27, 2022 which utilize LIBOR rather than Adjusted Term SOFR as a reference  point shall constitute Interest Rate Hedge Agreements.   “Interest Rate Hedge Counterparty”:  Any Eligible Interest Rate Hedge Counterparty or  any counterparty to a cap, collar or other hedging instrument permitted to be entered into pursuant  to this Agreement.   “Inventory”:  Any inventory, as such term is defined in the UCC.   “Investment”:  When used in connection with any Person, any investment by or of that  Person, whether by means of purchase or other acquisition of securities of any other Person or by  means of loan, advance, capital contribution, guaranty or other debt or equity participation or  interest in any other Person, including any partnership and joint venture interests of such Person  in any other Person. The amount of any Investment shall be the original principal or capital amount  thereof less all returns of principal or equity thereon (and without adjustment by reason of the  financial condition of such other Person) and shall, if made by the transfer or exchange of property  other than cash, be deemed to have been made in an original principal or capital amount equal to  the fair market value of such property; provided, however, that the term “Investment” shall not  include (i) any prepaid expenses, negotiable instruments held for collection and lease, utility and  workers’ compensation, performance and other similar deposits made in the ordinary course of  

 

  24    business, (ii) receivables owing to the Borrower, if created or acquired in the ordinary course of  its business and payable or dischargeable in accordance with customary trade terms of the  Borrower, or (iii) any investments (including debt obligations) received by the Borrower in  connection with the bankruptcy or reorganization of lessees, suppliers, trade creditors, licensees,  licensors and customers and in good faith settlement of delinquent obligations of, and other  disputes with, lessees, suppliers, trade creditors, licensees, licensors and customers arising in the  ordinary course of business.   “Investment Company Act”:  The United States Investment Company Act of 1940, as  amended.   “Investment Property”:  This term shall have the meaning set forth in the UCC.   “ISDA”:  International Swaps and Derivatives Association, Inc., and any successor thereto.   “Last Lessee Damage Payment”:  The last payments received from a lessee in respect of  damages to or repair of a Managed Container that is designated for sale.   “Lease” or “Lease Agreement”:  Each and every item of Chattel Paper, installment sales  agreement, equipment lease or rental agreement (including progress payment authorizations) to  which a Container is subject from time to time and including any Lease entered into from time to  time by the Manager pursuant to which the Manager leases one or more Containers from its  Container Fleet. The term Lease includes (a) all payments to be made by the lessee thereunder, (b)  all rights of the lessor thereunder, (c) any and all amendments, renewals or extensions thereof and  (d) guaranties, or other credit support or Supporting Obligation provided by, or on behalf of, the  lessee with respect thereof.   “Lender”:  Any Lender party to this Agreement on the Closing Date that funds a Loan or  any Lender that becomes a party hereto as a Lender on any subsequent date in accordance with the  terms of this Agreement. "Lender" shall be deemed to include any Conduit Lender. A Granting  Lender may act on behalf of a Conduit Lender to the extent set forth in this Agreement.   “Lender Tax Identification Information”:  Properly completed and signed tax certifications  (generally, in the case of U.S. federal income tax, IRS Form W-9 (or applicable successor form)  in the case of a person that is a “United States Person” within the meaning of Section 7701(a)(30)  of the Code or the appropriate IRS Form W-8 (or applicable successor form) in the case of a person  that is not a “United States Person” within the meaning of Section 7701(a)(30) of the Code) and  other information requested from time to time by the Borrower or the Collateral Agent sufficient  (i) to determine the applicability of, or to determine the amount of, U.S. withholding tax under the  Code (including back-up withholding and withholding imposed pursuant to FATCA) or other  Applicable Law and (ii) for the Borrower and Collateral Agent to satisfy their information  reporting obligations under the Code (including under FATCA) or other Applicable Law.   “Lending Office”:  As to any Lender, the office or offices of such Lender designated the  office from which the Loan is funded by such Lender, or such other office or offices as a Lender  may from time to time notify the Borrower and the Administrative Agent.  

 

  25     “Lessee” or “lessee”:  Where the context is with respect to a Lease or Lease Agreement,  any obligor thereunder. If a Container is subject to a Subservicer Lease (as defined in the  Management Agreement), the end user (and not the Subservicer) will be considered to be Lessee  or lessee.   “Letter-of-Credit Rights”:  This term shall have the meaning set forth in the UCC.    “Lien”:  Any security interest, lien, charge, pledge, equity or encumbrance of any kind.   “List of Containers”:  A printed list of the Containers transferred by the Seller to the  Borrower and hereby certified by an Authorized Signatory, which includes a true and complete list  of all Containers to be conveyed on any Transfer Date. The List of Containers will include the  following information for each such Container:  (i) its Container Identification Numbers and (ii)  the type of Container. Supplements to the List of Containers will be attached to the Container  Transfer Certificate and will contain only unit Container Identification Numbers for each  Container.   “Loan”: Any loan made by the Lenders pursuant to the terms of this Agreement.   “Majority Lenders”:  Lenders evidencing more than fifty percent (50%) of the Aggregate  Commitment (or, if the Aggregate Commitment has expired or has been terminated, the then  Aggregate Loan Principal Balance); provided that the Commitment of, and the aggregate  outstanding amount of all Loans held or deemed to be held by, any Defaulting Lender shall be  excluded for purposes of making a determination of Majority Lenders.     “Managed Containers”:  All Containers owned by the Borrower at any time.   “Management Agreement”:  The Management Agreement, dated as of the Closing Date,  entered into by and among TCIL, TCNA and the Borrower, as such agreement may be amended,  restated, supplemented, waived or otherwise modified from time to time in accordance with its  terms.    “Management Fee”:  An amount equal to the sum of (A) the product of (x) seven percent  (7%) and (y) the Net Operating Income, other than with respect to Containers with Finance Leases,  received for the preceding Collection Period, (B) the product of (x) five percent (5%) and (y) the  Net Operating Income with respect to Containers with Finance Leases received for the preceding  Collection Period and (C) the sum of all Disposition Fees for the preceding Collection Period.   “Management Fee Arrearage”:  For any Payment Date, an amount equal to all unpaid  Management Fees from all prior Collection Periods.    “Manager”:  The Person performing the duties of the Manager under the Management  Agreement; initially, TCIL.   “Manager Advance”:  This term is defined in the Management Agreement.   “Manager Default”:  The occurrence of any of the events or conditions set forth in Section  10.1 of the Management Agreement.  

 

  26     “Manager Report”:  A written informational statement in the form attached as an Exhibit  to the Management Agreement to be provided by the Manager in accordance with the Management  Agreement and furnished to the Collateral Agent and the Administrative Agent.   “Manager Termination Notice”:  This term shall have the meaning set forth in Section 10.2  of the Management Agreement.   “Managing Officer”:  Any representative of the Manager involved in, or responsible for,  the management of the day to day operations of the Borrower and the administration and servicing  of the Containers and the other Collateral whose name appears on a list of managing officers  furnished to the Borrower and the Collateral Agent by the Manager, as such list may from time to  time be amended.   “Manufacturer Debt”:  A current account payable of the Borrower incurred in connection  with the acquisition by the Borrower of a Container provided that such account payable has a due  date that occurs prior to the Scheduled Commitment Expiration Date then in effect, does not exceed  the purchase price of such Container and will be paid in full on or prior to the second Business  Day following its Transfer Date.   “Manufacturer’s Lien”:  The Lien of the manufacturer on any Container acquired by the  Borrower which Lien relates solely to such purchased Container and does not secure an amount in  excess of one hundred percent (100%) of the purchase price of such Container.   “Material Adverse Change”:  Any set of circumstances or events which (a) pertains to the  Borrower, the Seller or the Manager and has any material adverse effect whatsoever upon the  validity or enforceability of any Transaction Document or the security for the Loan or the ability  of the Collateral Agent to enforce any of its legal rights or remedies pursuant to the Transaction  Documents or (b) materially impairs the ability of any of the Borrower, the Seller or the Manager  to fulfill its obligations under the Transaction Documents.   “Moody’s”:  Moody’s Investors Service, Inc., and any successor thereto.   “Net Book Value”:  As of any date of determination, with respect to any Managed  Container that is not subject to a Finance Lease, the Net Book Value shall be the Original  Equipment Cost less accumulated depreciation; provided, that such depreciation shall be  determined in accordance with the depreciation policies set forth in Exhibit C. As of any date of  determination, with respect to any Managed Container that is subject to a Finance Lease, the Net  Book Value shall be one hundred percent (100%) of the net investment value of such Finance  Lease, as determined in accordance with GAAP as in effect on the Closing Date.    “Net Manager Compensation”: This term shall have the meaning set forth in the  Management Agreement.   “Net Operating Income”:  For any Collection Period, an amount equal to the excess (if any)  of (i) the Container Revenues actually received by or on behalf of the Borrower during such  Collection Period, over (ii) the Direct Operating Expenses paid during such Collection Period.   “Non-Delaying Lender”: The meaning specified in Section 301(m)(2).  

 

  27     “OFAC”:  The Office of Foreign Assets Control of the United States Department of the  Treasury.   “Officer’s Certificate”:  A certificate signed by a duly authorized officer of the Person (or,  if applicable, by a duly authorized officer of the manager of such Person) who is required to sign  such certificate.  “Operating Lease”: Any lease classified as an “operating lease” under GAAP.   “Opinion of Counsel”:  A written opinion of counsel, who, unless otherwise specified, may  be, but need not be, counsel employed by the Borrower, the Seller or the Manager, in each case  reasonably acceptable to the Person or Persons to whom such Opinion of Counsel is to be  delivered. The counsel rendering such opinion may rely (i) as to factual matters on a certificate of  a Person whose duties relate to the matters being certified, and (ii) insofar as the opinion relates to  local law matters, upon opinions of local counsel.   “Original Equipment Cost”:  With respect to any Container as of any date, an amount equal  to the average, for all Managed Containers of the same equipment type and year of manufacturer,  of the sum of (i) the vendor’s or manufacturer’s invoice price of such Container or, with respect  to a used Container, the purchase price allocated to such Container by the Seller, in the acquisition  of such Container, plus (ii) reasonable and customary inspection, transport and initial positioning  costs necessary to put such Container in service which expenditures are capitalized in accordance  with GAAP, plus (iii) the cost of any Capital Improvements made to such Container, by, or on  behalf of, the Borrower which expenditures are capitalized in accordance with GAAP, plus (iv)  reasonable acquisition fees and other fees allocated by the Seller which expenditures are  capitalized in accordance with GAAP.    “Other Taxes”:  Shall have the meaning set forth in Section 301(q)(2).    “Outstanding”:  As of any particular date with respect to any Loan, such Loan to the extent  not repaid in full or otherwise terminated pursuant to the provisions of this Agreement.    “Outstanding Obligations”:  As of any date of determination an amount equal to the sum  of (i) the then outstanding principal balance of, and accrued interest payable on, the Loans made  under this Agreement, (ii) all other amounts owing to the Administrative Agent or Lenders in  respect of the Loans, or to any Person under this Agreement including any unpaid enforcement  costs and collateral preservation expenses, (iii) amounts owing by the Borrower under any Interest  Rate Hedge Agreement and (iv) amounts owing by the Borrower under any Currency Hedge  Agreement.   “Overfunding Lenders”:  Shall have the meaning set forth in Section 301(m)(4).    “Participant”: Shall have the meaning set forth in Section 1004.   “Payment Date”:  The 20th day of each month (or, if such 20th day is not a Business Day,  the next succeeding Business Day). The initial Payment Date shall be January 22, 2019.  

 

  28     “Permitted Business”:  The marine container leasing business and any business that is the  same as or similar, reasonably related, complementary, ancillary or incidental to the marine  container leasing business, including, but not limited to, the leasing of chassis.  The container  logistics business, the container purchase and resale business, and the static storage business, all  as currently engaged in by Triton Holdco or its Subsidiaries on the Closing Date are also deemed  to be a Permitted Business.  For the avoidance of doubt, all activities contemplated by the  Transaction Documents shall be deemed to be a “Permitted Business” hereunder.   “Permitted Encumbrance”:  Any of the following:   (i) Liens for taxes, assessments or governmental charges or levies not yet delinquent  or Liens for taxes, assessments or governmental charges or levies being contested in good faith  and by appropriate proceedings for which adequate cash reserves have been established in  accordance with GAAP;   (ii) Liens in respect of property or assets of the Borrower or any of its Subsidiaries  imposed by law which have not arisen to secure Indebtedness for borrowed money, such as  carriers’, seamen’s, stevedores’, wharfinger’s, depot operators’, transporters’, warehousemens’,  mechanics’, landlord’s, suppliers’, repairmen’s or other like Liens, and relating to amounts not yet  due or which shall not have been overdue for a period of more than thirty (30) days or which are  being contested in good faith by appropriate proceedings for which adequate cash reserves have  been established in accordance with GAAP;   (iii) Liens created pursuant to the terms of this Agreement and the other Transaction  Documents;   (iv) Liens arising from judgments, decrees or attachments in respect of which the  Borrower shall in good faith be prosecuting an appeal or proceedings for review and in respect of  which there shall have been secured a subsisting stay of execution pending such appeal or  proceedings (including in connection with the deposit of cash or other property in connection with  the issuance of stay and appeal bonds);   (v) licenses, sublicenses, leases or subleases (including Leases) granted by, or on  behalf of, the Borrower to third Persons in the ordinary course of business;   (vi) Liens arising from or related to precautionary UCC or like personal property  security financing statements regarding operating leases (if any) entered into by the Borrower as  lessor in the ordinary course of business;   (vii) Liens in favor of customs or revenue authorities arising as a matter of law to secure  payment of customs duties not past due in connection with the importation of goods;   (viii) Liens arising solely by virtue of any statutory or common law provision relating to  bankers’ liens, rights of set off or similar rights and remedies as to deposit accounts or other funds  maintained with a creditor depository institution;   (ix) Liens of a lessee under any Finance Lease; and  

 

  29     (x) Manufacturer’s Liens (so long as any Manufacturer Debt in respect of such  Container is paid by not later than two (2) Business Days following the date of acquisition by the  Borrower of such Container);   provided, however, that any proceedings of the type described in clauses (i), (iv) or (vii)  above would not reasonably be expected to subject the Collateral Agent or any Secured Party to  any civil or criminal penalty or liability or involve any risk of loss, sale or forfeiture of any portion  of the Collateral that would result in an Asset Base Deficiency.   “Permitted Payment Date Withdrawals”:  For any Payment Date, one of the following:   (1) for any Payment Date other than the Final Maturity Date, the aggregate amount of  the interest and any arrearages thereof payable on such Payment Date; or   (2) for (i) the Final Maturity Date or (ii) any date on which an Event of Default has  occurred and is then continuing and the Loans have been accelerated in accordance with the  provisions of this Agreement, an amount equal to the sum of (x) the aggregate amount of the  interest and arrearages thereof payable on such Payment Date and (y) the then Aggregate Loan  Principal Balance.    “Person”:  An individual, a partnership, a limited liability company, a corporation, a joint  venture, an unincorporated association, a joint-stock company, a trust, or other entity or a  Governmental Authority.   “Plan”:  An “employee pension benefit plan”, as such term is defined in Section 3(2) of  ERISA which is subject to Title IV of ERISA and which is maintained by Borrower or an ERISA  Affiliate of the Borrower.   “Predecessor Container”:  This term shall have the meaning set forth in Section 3.04 of the  Contribution and Sale Agreement.   “Prepayment”:  Any mandatory or optional prepayment of principal of the Loan prior to  the Final Maturity Date made in accordance with the terms of this Agreement.   “Prime Rate”:  As of any date of determination, the rate quoted by the Administrative Agent  as its “prime rate”, such rate being a reference rate and not necessarily representing the lowest or  best rate charged to any customer.    “Pro Rata Share”:  With respect to each Lender as of any date of determination, a ratio  (expressed as a percentage) the numerator of which is equal to the Commitment of such Lender  (or, if the Aggregate Commitment has expired or has been terminated, the then unpaid principal  balance of the Loans owing to such Lender) and the denominator of which is equal to the  Aggregate Commitment (or, if the Aggregate Commitment has expired or has been terminated, the  Aggregate Loan Principal Balance).    “Proceeding”:  Any suit in equity, action at law, or other judicial or administrative  proceeding.  

 

  30     “Proceeds”:  “Proceeds”, as such term is defined in the UCC.   “Receivables Threshold”:  As of any date of determination, means an amount equal to the  lesser of (i) $5.5 million and (ii) 0.55% of the Aggregate Net Book Value as of such date of  determination.   “Record Date”:  With respect to any Payment Date, the last Business Day of the Interest  Accrual Period ending on the day preceding such Payment Date.   “Register”:  Shall have the meaning set forth in Section 1003.   “Related Assets”:  With respect to any Transferred Container, all of the following:  (i) all  Net Operating Income and Sales Proceeds accrued as of the related Transfer Date, (ii) all right,  title and interest in and to, but none of the obligations under, any agreement with the manufacturer  of such Container or any third party with respect to such Container, and all amendments, additions  and supplements made with respect to such Container, (iii) all right, title and interest in and to any  Lease Agreement to which such Container is subject (to the extent, but only to the extent, that such  Lease Agreement relates to such Container), including, without limitation, the Seller’s interest  under all amendments, additions and supplements thereto, (iv) all other security interests or liens  and property subject thereto from time to time purporting to secure payment of a Lease Agreement  (to the extent, but only to the extent, attributable to such Container), (v) all letters of credit,  guarantees, Supporting Obligations and other agreements or arrangements of whatever character  from time to time supporting or securing payment of any Lease Agreement (to the extent, but only  to the extent, attributable to such Container), (vi) any insurance proceeds received with respect to  such Container, (vii) all books and records relating to such Container, (viii) all payments, proceeds  and income of the foregoing or related thereto; (ix) any agreement with the manufacturer of such  Container or other seller of such Container, and all amendments, additions and supplements made  with respect to such Container, to the extent, but only to the extent, relating to such Container; and  (x) all rights under UCC financing statements or documents of similar import evidencing a security  interest in favor of the Seller with respect to such Container (including any such financing  statement filed pursuant to Section 2.03(a)(iii) of the Contribution and Sale Agreement).   “Related Group”:  For each Lender, such Lender and, if applicable, any related Conduit  Lender, and the liquidity providers and credit enhancers for such Conduit Lender.  "Related Parties": With respect to any Person, such Person's Affiliates and the partners,  directors, officers, employees, agents, trustees, administrators, managers, advisors and  representatives of such Person and of such Person's Affiliates.   “Required Deposit Rating”:  With regard to an institution, the short-term unsecured senior  debt rating of such institution is in the highest category by each of S&P and Moody’s.   “Required Hedge Base Amount”: On any date, an amount equal to the Aggregate Loan  Principal Balance.    “Responsible Officer”:  When used with respect to the Collateral Agent, any officer  assigned to the Corporate Trust Office (or any successor thereto), including any Vice President,  Assistant Vice President, Trust Officer, any Assistant Secretary, any trust officer or any other  

 

  31    officer of the Collateral Agent customarily performing functions similar to those performed by any  of the above designated officers and having direct responsibility for the administration of this  Agreement.   “Restricted Cash Account”:  This term shall have the meaning set forth in Section 306 of  this Agreement.   “Restricted Cash Amount”:  As of any Payment Date, the amount required to be deposited  or maintained in the Restricted Cash Account, which shall be an amount equal to the product of  (a) three (3), (b) one-twelfth (1/12), (c) the annual rate of interest payable by the Borrower on the  Loans then Outstanding (or, to the extent that an Interest Rate Hedge Agreement is in effect with  respect to all, or a portion of, such principal balance, the interest rate payable by the Borrower on  such Interest Rate Hedge Agreement) and (d) the then Aggregate Loan Principal Balance  calculated after giving effect to any principal payment actually paid on such date.    “Restricted Subsidiary”:  With respect to the Manager, any Subsidiary of the Manager that  is not an Unrestricted Subsidiary.   “Revenue Reserve Account”:  The account or accounts established pursuant to Section 307  of this Agreement.   “S&P”:  S&P Global Ratings and its successors in interest.   “Sale”:  This term shall have the meaning set forth in Section 815 of this Agreement.   “Sales Proceeds”:  With respect to any Managed Container that (i) has been sold to a third  party, or (ii) is the subject of a Casualty Loss, an amount equal to the excess of (a) the gross  proceeds of the sale or other disposition (including any Last Lessee Damage Payment) of a  Managed Container or Casualty Proceeds, if any, received by the Manager in respect of a Managed  Container, over (b) commissions, administrative fees, handling charges, taxes, reserves or other  similar amounts paid, or to be paid, to Persons other than the Manager in connection with the sale  or other disposition as determined in the sole discretion of the Manager; provided, however, that  to the extent that any such commission, administrative fees, handling charges or other similar  amount is to be paid to an Affiliate of the Manager, the amount of such fee or other charge shall  not exceed the amount that would have otherwise been payable to an independent third party in an  arms-length transaction.   “Sanction”:  Any trade, economic or financial sanctions laws, regulations, embargoes or  restrictive measures administered, enacted or enforced by a Sanctions Authority.   “Sanctioned Country”:  Any country or territory that is, or whose government is, the subject  of comprehensive Sanctions consisting of a general embargo imposed by any Sanctions Authority;  as of the Closing Date, such countries and territories include Cuba, Iran, North Korea, Syria,  Sudan, the Crimea Region of Ukraine, the so-called Donetsk People’s Republic or Luhansk  People’s Republic regions of Ukraine.   “Sanctioned Person”:  Any of the following:  (a) any Person that is listed on, or owned or  controlled by a Person listed on (or a Person acting on behalf of such a Person) (i) the list of  

 

  32    “Specially Designated Nationals and Blocked Persons” maintained by OFAC available at  http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx or as otherwise  published from time to time, the “Sectoral Sanctions Identifications” list maintained by OFAC  available at http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/ssi_list.aspx or as  otherwise published from time to time, or the “Foreign Sanctions Evaders” list maintained by  OFAC available at http://www.treasury.gov/resource-center/sanctions/SDNList/Pages/  fse_list.aspx or as otherwise published from time to time, (ii) the Consolidated List of Financial  Sanctions Targets and the Investment Ban List maintained by Her Majesty’s Treasury or (iii) any  similar list maintained by, or public announcement of a Sanctions designation made by, a  Sanctions Authority, each as amended, supplemented or substituted from time to time; or (b) (i)  an agency of the government of a Sanctioned Country, (ii) an organization directly or indirectly  controlled by a Sanctioned Country or (iii) a Person resident in (or organized under the laws of) a  Sanctioned Country, or (iv) a Person who is owned or controlled by, or acting on behalf of such a  Person.   “Sanctions Authority”:  Each of the following:  (a) the United States Government, (b) the  United Nations Security Council, (c) the European Union, (d) the United Kingdom, (e) the  governments, official institutions or agencies and other relevant sanctions authorities of any of the  foregoing in clauses (a) through (d), including OFAC, the US Department of State, and Her  Majesty’s Treasury or (f) any other governmental authority with jurisdiction over the Borrower,  any Affiliate of the Borrower or, to the knowledge of the Borrower, any Lender.   “Scheduled Commitment Expiration Date”: April 27, 2025, as such date may be extended  from time to time in accordance with Section 301(l)(7).    “Scheduled Principal Payment Amount”:  With respect to the Loans on any Payment Date:  (1) for any Payment Date prior to the Conversion Date, zero; and (2) for any Payment Date  occurring on or following the Conversion Date, an amount equal to the excess, if any, of (x) the  Aggregate Loan Principal Balance over (y) the Scheduled Targeted Principal Balance for the  Loans for such Payment Date.   “Scheduled Targeted Principal Balance”:  For each Payment Date, an amount equal to the  product of (x) the Aggregate Loan Principal Balance on the Conversion Date and (y) the  percentage set forth opposite such Payment Date (based on the number of Payment Dates elapsed  from the Conversion Date) on Schedule III hereto under the column titled “Target Percentage”.   “Secured Parties”:  The Administrative Agent, the Lenders and each Hedge Counterparty  (for so long as such Hedge Counterparty is a party under its Hedge Agreement or any amounts are  owed to it under the related Hedge Agreement).   “Securities Entitlements”:  This term shall have the meaning set forth in the UCC.   “Securities Intermediary”:  The Person identified as such in the preamble hereto and acting  as “securities intermediary” (as defined in Section 8-102(a)(14) of the UCC) for any of the  Distribution Account, Revenue Reserve Account and the Restricted Cash Account.   “Seller”:  Triton International Finance LLC, a Delaware limited liability company, and its  successors and permitted assigns.  

 

  33     “Servicing Standard”:  This term shall have the meaning set forth in Section 3.1 of the  Management Agreement.  “SOFR”: A rate equal to the secured overnight financing rate as administered by the SOFR  Administrator.   “SOFR Administrator”: The Federal Reserve Bank of New York (or a successor  administrator of the secured overnight financing rate).   “SOFR Rate Loan”:  A Loan that bears interest at a rate based on Adjusted Term SOFR,  other than pursuant to clause (iii) of the definition of “Base Rate”.   “Specialized Containers”:  All refrigerated containers, tank containers, special purposes  containers, open top containers, flat rack containers, bulk containers, high cube containers (other  than 40’ high cube dry containers), cellular palletwide containers and all other types of containers  other than standard dry cargo containers.   “State”:  Any state of the United States of America and, in addition, the District of  Columbia.   “Step-Up Margin”: With respect to each Loan on or after the Conversion Date during the  occurrence and continuance of an Asset Base Deficiency, the portion of the Applicable Margin  with respect to such Loan that is equal to the positive excess of (x) the percentage set forth in  clause (ii) of the definition of “Applicable Margin” minus (y) the percentage set forth in clause (i)  of the definition of “Applicable Margin”.   “Subservicer”:  This term shall have the meaning set forth in Section 2.2 of the  Management Agreement.   “Subservicing Agreement”:  This term shall have the meaning set forth in Section 2.2 of  the Management Agreement.   “Subsidiary”:  A subsidiary of a Person means any corporation, association, partnership,  limited liability company, joint venture or other business entity of which more than fifty percent  (50.0%) of the voting stock or other equity interests (in the case of Persons other than corporations)  is owned or controlled directly or indirectly by such Person, or one or more of the Subsidiaries of  such Person, or a combination thereof.   “Substitute Container”:  This term is defined in Section 3.04 of the Contribution and Sale  Agreement.  “Supplemental Principal Payment Amount”: As of any other date of determination, an  amount equal to the excess, if any, of (i) the Aggregate Loan Principal Balance (calculated after  giving effect to the Scheduled Principal Payment Amount paid on such date), over (ii) the Asset  Base on such Payment Date (determined as of the last day of the month immediately preceding  such Payment Date).    “Supporting Obligation”:  This term shall have the meaning set forth in the UCC.  

 

  34     “TAL”:  TAL International Container Corporation, a Delaware corporation.   “Taxes”: This term shall have the meaning set forth in Section 301(q)(1) of this Agreement.   “TCIL”: Triton Container International Limited, a company limited by shares,  incorporated, organized and existing under the laws of Bermuda.   “TCIL Credit Agreement”: That certain Eleventh Restated and Amended Credit  Agreement, dated as of October 14, 2021, among TCIL and TAL International Container  Corporation, as borrowers, the lenders from time to time party thereto, Triton HoldCo, as  guarantor, and Bank of America, N.A., as administrative agent and an issuer thereunder, and any  revolving credit facility that may be entered into from time to time as a replacement for such Credit  Agreement; in each case, as the same may be amended, restated, supplemented, waived or  otherwise modified from time to time in accordance with its terms.   “TCNA”: Triton Container International, Incorporated of North America, a corporation  organized and existing under the laws of the State of California.  “Term SOFR”:  (a) for any calculation with respect to a SOFR Rate Loan, the Term SOFR  Reference Rate for a tenor comparable to the applicable Interest Accrual Period on the day  (such day, the “Periodic Term SOFR Determination Day”) that is two (2) U.S. Government  Securities Business Days prior to the first day of such Interest Accrual Period, as such rate  is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m.  (New York City time) on any Periodic Term SOFR Determination Day the Term SOFR  Reference Rate for the applicable tenor has not been published by the Term SOFR  Administrator and the circumstances set forth in the below proviso have not occurred, then  Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the  Term SOFR Administrator on the first preceding U.S. Government Securities Business  Day for which such Term SOFR Reference Rate for such tenor was published by the Term  SOFR Administrator so long as such first preceding U.S. Government Securities Business  Day is not more than three (3) U.S. Government Securities Business Days prior to such  Periodic Term SOFR Determination Day, and  (b) for any calculation with respect to a Base Rate Loan on any day, the Term  SOFR Reference Rate for a tenor of one month on the day (such day, the “Base Rate Term  SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days  prior to such day, as such rate is published by the Term SOFR Administrator; provided,  however, that if as of 5:00 p.m. (New York City time) on any Base Rate Term SOFR  Determination Day the Term SOFR Reference Rate for the applicable tenor has not been  published by the Term SOFR Administrator and the circumstances set forth in the below  proviso have not occurred, then Term SOFR will be the Term SOFR Reference Rate for  such tenor as published by the Term SOFR Administrator on the first preceding U.S.  Government Securities Business Day for which such Term SOFR Reference Rate for such  tenor was published by the Term SOFR Administrator so long as such first preceding U.S.  

 

  35    Government Securities Business Day is not more than three (3) U.S. Government  Securities Business Days prior to such Base Rate Term SOFR Determination Day;  provided, that, if at any time the Administrative Agent and the Borrower have determined  that (x) the circumstances set forth in clause (b) of Section 301(s) have arisen and such  circumstances are unlikely to be temporary, or (y) the circumstances set forth in clause (b)  of Section 301(s) have not arisen but (i) the SOFR Administrator or a Governmental  Authority having jurisdiction over the Administrative Agent has made a public statement  identifying a specific date after which the Term SOFR Reference Rate shall no longer be  available, or used for determining interest rates for loans, or (ii) syndicated loans currently  being executed, or that include language similar to that contained in this paragraph, are  being executed or amended (as applicable) to incorporate or adopt a new benchmark  interest rate to replace the Term SOFR Reference Rate, then the Administrative Agent and  the Borrower, in consultation with the Hedge Counterparties, shall endeavor to establish  an alternate rate of interest to Adjusted Term SOFR that gives due consideration to the then  prevailing market convention for determining a rate of interest for syndicated loans in the  United States at such time, and shall enter into an amendment to this Agreement, subject  to the written consent of each Hedge Counterparty, to reflect such alternate rate of interest  and such other related changes to this Agreement as may be applicable (but for the  avoidance of doubt, such related changes shall not include a reduction of the Applicable  Margin).  Notwithstanding anything to the contrary in Article X, such amendment shall  become effective without any further action or consent of any other party to this Agreement  (and, for the avoidance of doubt, with the consent of the Hedge Counterparties as of such  time) so long as the Administrative Agent shall not have received, within five (5) Business  Days of the date notice of such alternate rate of interest is provided to the Lenders, a written  notice from the Majority Lenders stating that such Majority Lenders object to such  amendment.  Until an alternate rate of interest shall be determined in accordance with this  provision, each Loan hereunder shall bear interest equal to the rate set forth in clause (i) of  the definition of “Base Rate”; provided, that, if such alternate rate of interest shall be less  than zero, such rate shall be deemed to be zero for the purposes of this Agreement.    “Term SOFR Adjustment”: A percentage equal to 0.10% per annum.  “Term SOFR Administrator”: CME Group Benchmark Administration Limited (CBA) (or  a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent  in its reasonable discretion).  “Term SOFR Reference Rate”: The forward-looking term rate based on SOFR.   “Terminated Managed Container”: A Managed Container for which the management of  such Managed Container may be transferred as the result of the occurrence of a Manager Default  in accordance with the terms of the Management Agreement.   “Transaction Documents”:  Any and all of this Agreement, the Management Agreement,  the Intercreditor Collateral Agreement, the Control Agreement, any notes issued pursuant to this  Agreement, the Contribution and Sale Agreement, the Director Services Agreement, the Interest  Rate Hedge Agreements (upon execution thereof), the Currency Hedge Agreements (upon  

 

  36    execution thereof), Administrative Agent Fee Letter, Fee Letter, and all other transaction  documents and any and all other agreements, documents and instruments executed and delivered  in connection therewith, as any of the foregoing may from time to time be amended, modified,  supplemented or renewed.   “Transfer Date”:  The date on which a Container is contributed or sold by the Seller to the  Borrower pursuant to the terms of the Contribution and Sale Agreement.   “Transferred Assets”:  Transferred Containers and Related Assets collectively.   “Transferred Container”:  A Container transferred by the Seller to the Borrower.   “Triton Holdco”:  Triton International Limited (an exempted company incorporated with  limited liability under the laws of Bermuda).   “UCC”:  The Uniform Commercial Code as in effect in the State of New York.  In the  event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or  priority of Collateral Agent’s security interest in any Collateral is governed by the Uniform  Commercial Code as in effect in a jurisdiction other than the State of New York, the term UCC  shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of  the provisions relating to such attachment, perfection of priority and for purposes of definitions  related to such provisions.   “UNIDROIT Convention”:  Any convention promulgated by the International Institute for  the Unification of Private Law specifically dealing with interests in shipping containers.   “Unrestricted Subsidiary”:  Any Subsidiary that is designated by the Manager as an  “Unrestricted Subsidiary” in accordance with the procedures set forth in the TCIL Credit  Agreement (including without limitation the Borrower).   “Upfront Fee”:  The meaning set forth in Section 301(p) of this Agreement.   “U.S. Government Securities Business Day”:  Any day except for (i) a Saturday, (ii) a  Sunday or (iii) a day on which the Securities Industry and Financial Markets Association  recommends that the fixed income departments of its members be closed for the entire day for  purposes of trading in United States government securities.   “Volcker Rule”:  Section 619 of the Dodd-Frank Act.   “Warranty Purchase Amount”:  With respect to any Managed Container, an amount equal  to the Net Book Value of such Managed Container on the date of repurchase by the Seller from  the Borrower pursuant to the Contribution and Sale Agreement.   “Weighted Average Age”:  For any date of determination, an amount equal to (i) the sum  of the products, for each Managed Container, of (A) the age in years of such Managed Container  and (B) the Net Book Value of such Managed Container, divided by (ii) the Aggregate Net Book  Value.  

 

  37    Section 102 Other Definitional Provisions.    (a) As used in this Agreement and in any certificate or other document made  or delivered pursuant hereto, accounting terms not defined in this Agreement or in any such  certificate or other document, and accounting terms partly defined in this Agreement or in any  such certificate or other document to the extent not defined, shall have the respective meanings  given to them under GAAP consistently applied (subject to clause (e) below). To the extent that  the definitions of accounting terms in this Agreement or in any such certificate or other document  are inconsistent with the meanings of such terms under GAAP or regulatory accounting  principles, the definitions contained in this Agreement or in any such certificate or other  document shall control.  (b) With respect to any Collection Period, the “related Record Date,” the  “related Determination Date,” and the “related Payment Date” shall mean the Record Date  occurring on the last Business Day of such Collection Period and the Determination Date and  Payment Date occurring in the month immediately following the end of such Collection Period.  (c) With respect to any ratio analysis required to be performed as of the most  recently completed fiscal quarter of a Person, the most recently completed fiscal quarter shall  mean the most recently completed fiscal quarter for which financial statements were required  hereunder to have been delivered.  (d) With respect to the calculations of the ratios set forth in this Agreement,  the components of such calculations are to be determined in accordance with GAAP, consistently  applied, with respect to the Borrower or the Manager, as the case may be (subject to clause (e)  below).  (e) If the Borrower notifies the Administrative Agent that the Borrower  requests an amendment to any provision hereof to eliminate the effect of any change occurring  after the date hereof in GAAP or in  application thereof on the operation of such provision (or if  the Administrative Agent notifies the Borrower that the Majority Lenders request an amendment  to any provision hereof for such purpose), regardless of whether any such notice is given before  or after such change in GAAP or in the application thereof, then such provision shall be  interpreted on the basis of GAAP as in effect and applied immediately before such change shall  have become effective until such notice shall have been withdrawn or such provision amended  in accordance herewith.  Section 103 Computation of Time Periods.  Unless otherwise stated in this Agreement,  in the computation of a period of time from a specified date to a later specified date, the word  “from” means “from and including” and the words “to” and “until” each means “to but excluding.”  Section 104 General Interpretive Principles.  For purposes of this Agreement except as  otherwise expressly provided or unless the context otherwise requires:  (a) the defined terms in this Agreement shall include the plural as well as the  singular, and the use of any gender herein shall be deemed to include any other gender;  

 

  38    (b) references herein to “Articles”, “Sections”, “Subsections”, “paragraphs”,  and other subdivisions without reference to a document are to designated Articles, Sections,  Subsections, paragraphs and other subdivisions of this Agreement;  (c) a reference to a Subsection without further reference to a Section is a  reference to such Subsection as contained in the same Section in which the reference appears,  and this rule shall also apply to paragraphs and other subdivisions;  (d) the words “herein”, “hereof’, “hereunder” and other words of similar  import refer to this Agreement as a whole and not to any particular provision;  (e) the term “include” or “including” shall mean without limitation by reason  of enumeration; and  (f) When referring to Section 302 or Section 806 of this Agreement, the term  “or” shall be additive and not exclusive.  Section 105 Statutory References.  References in this Agreement to any section of the  Uniform Commercial Code or the UCC shall mean, on or after the effective date of adoption of  any revision to the Uniform Commercial Code or the UCC in the applicable jurisdiction, such  revised or successor section thereto.  ARTICLE II    SECURITY INTEREST  To secure the payment of all Outstanding Obligations and the performance of all of the  Borrower’s covenants and agreements in this Agreement and all other Transaction Documents, the  Borrower hereby grants, assigns, conveys, mortgages, pledges, hypothecates and transfers to the  Collateral Agent, for the benefit of the Secured Parties, a security interest in and to all of the  Borrower’s right, title and interest in, to and under the following, whether now existing or hereafter  created or acquired: (i) the Managed Containers (including any and all substitutions therefor  acquired from time to time) and other Transferred Assets, (ii) the Distribution Account, the  Restricted Cash Account, the Revenue Reserve Account and all amounts and Eligible Investments,  Financial Assets, Investment Property, Securities Entitlements and all other instruments, assets or  amounts credited to any of the foregoing or otherwise on deposit from time to time in the foregoing,  (iii) the Contribution and Sale Agreement, all Hedge Agreements, the Management Agreement  and the Intercreditor Collateral Agreement, and (iv) all of the following, whether now existing or  hereafter acquired:   (a) All Accounts;  (b) All Chattel Paper;  (c) All Lease Agreements;  (d) All Contracts;  

 

  39    (e) All Documents;  (f) All General Intangibles;  (g) All Instruments;  (h) All Inventory;  (i) All Supporting Obligations;  (j) All Equipment and all Goods;  (k) All Letter-of-Credit Rights;  (l) All Commercial Tort Claims;  (m) All Investment Property;  (n) All Deposit Accounts;  (o) All property of the Borrower held by the Collateral Agent for the benefit  of the Secured Parties, including, without limitation, all property of every description now or  hereafter in the possession or custody of or in transit to the Collateral Agent for any purpose,  including, without limitation, safekeeping, collection or pledge, for the account of the Borrower,  or as to which the Borrower may have any right or power;  (p) To the extent not included above and without limiting the foregoing, all  Chattel Paper, all Leases and all schedules, supplements, amendments, modifications, renewals,  extensions, and guarantees thereof in every case whether now owned or hereafter acquired and  all amounts, rentals, proceeds and other sums of money due and to become due under the  Container Related Agreements, including (in each case only to the extent related to the Managed  Containers), without limitation, (i) all rentals, payments and other monies, including all  insurance payments and claims for losses due and to become due to the Borrower under, and all  claims for damages arising out of the breach of, any Container Related Agreement; (ii) the right  of the Borrower to terminate, perform under, or compel performance of the terms of the  Container Related Agreements; (iii) any guarantee of the Container Related Agreements and (iv)  any rights of the Borrower in respect of any subleases or assignments permitted under the  Container Related Agreements;   (q) All insurance proceeds of the Collateral and all proceeds of the voluntary  or involuntary disposition of the Collateral or such proceeds;  (r) Any and all payments made or due to the Borrower in connection with  any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the  Collateral by any Governmental Authority and any other cash or non-cash receipts from the sale,  exchange, collection or other disposition of the Collateral;   

 

  40    (s) Subject to the terms and conditions set forth in the Intercreditor Collateral  Agreement, all Proceeds of the Managed Containers from time to time on deposit in the  Collection Account; and  (t) To the extent not otherwise included, all income and Proceeds of each of  the foregoing and all accessions to, substitutions and replacements for, and rents, profits and  products of each of the foregoing.  All of the property described in this Article II is herein collectively called the “Collateral” and as  such is security for all Outstanding Obligations; provided that notwithstanding anything to the  contrary in this Agreement, Collateral shall not include monies paid to the Borrower under this  Agreement, including monies received by the Borrower pursuant to Section 302 or Section 806;  provided further, that  notwithstanding the foregoing Grant, (i) no account, instrument, chattel  paper or other obligation or property of any kind due from, owed by, or belonging to, a Sanctioned  Person, (ii) no Lease in which the Lessee is a Sanctioned Person and (iii) no Managed Container  that the Borrower or the Manager has actual knowledge to be located in a Sanctioned Jurisdiction  in violation of applicable laws, shall, in any such instance, constitute Collateral so long as such  condition is continuing.  Each of the Borrower, the Collateral Agent, and each Secured Party agrees that the terms of the  foregoing Grant are subject in all respects to the terms and conditions set forth in the Intercreditor  Collateral Agreement.  The Collateral Agent acknowledges such Grant, accepts the trusts hereunder in accordance with  the provisions hereof, and agrees to perform the duties herein required as hereinafter provided.   Notwithstanding the foregoing, the Collateral Agent does not assume, and shall have no liability  to perform, any of the Borrower’s obligations under any agreement included in the Collateral and  shall have no liability arising from the failure of the Borrower or any other Person to duly perform  any such obligations.  The Borrower consents to and confirms that any Uniform Commercial Code financing statements  filed against the Borrower may describe the Collateral as “all assets” or “all personal property” (or  any other words of similar effect) of the Borrower.  The Loans and the interest and other amounts payable thereon shall be full recourse obligations of  the Borrower and shall be secured by all of the Borrower’s right, title and interest in the Collateral.  The Loans shall never constitute obligations of the Collateral Agent, the Manager, the Seller or of  any shareholder or any Affiliate of the Seller (other than the Borrower) or any member of the  Borrower, or any officers, directors, employees or agents of any thereof, and no recourse may be  had under or upon any obligation, covenant or agreement of this Agreement, or for any claim based  thereon or otherwise in respect thereof, against any incorporator or against any past, present, or  future owner, partner of an owner or any officer, employee or director thereof or of any successor  entity, or any other Person, either directly or through the Borrower, whether by virtue of any  constitution, statute or rule of law, or by the enforcement of any assessment or penalty or  otherwise; it being expressly agreed that this Agreement and the obligations issued hereunder are  solely obligations of the Borrower, and that no such personal liability whatever shall attach to, or  is or shall be incurred by, any other Person under or by reason of this Agreement or implied  

 

  41    therefrom, or for any claim based thereon or in respect thereof, all such liability and any and all  such claims being hereby expressly waived and released as a condition of, and as a consideration  for, the execution of this Agreement. No Person other than the Borrower shall be liable for any  obligation of the Borrower hereunder or for any losses incurred by any Lender.  ARTICLE III    THE LOANS  Section 301 Principal Terms of the Loans.  (a) Funding Commitment.  Subject to the terms and conditions set forth in  this Agreement, each Lender hereby confirms its commitment to fund Loans up to an aggregate  amount of unpaid Loans owing to such Lender and each Conduit Lender in an amount not to  exceed the lesser of (i) its Availability of such Lender on such date and (ii) the Commitment of  such Lender as set forth opposite the name of such Lender on Schedule II hereto (as such  schedule may be updated from time to time in accordance with the terms of this Agreement).   The facility evidenced by this Agreement is a revolving credit facility and accordingly the  Borrower may, subject to the terms and conditions of this Agreement, re-borrow any amounts  repaid pursuant to the terms of this Agreement.    (b) Conduit Funding. Notwithstanding anything to the contrary in Section  301(a), a Lender (a “Granting Lender”) may fund all or a portion of its investment in the Loans  by transferring all, or portion of, its investment to its designated Conduit Lender; provided that  (i) nothing herein shall constitute a commitment by any Conduit Lender to fund any Loan and  (ii) if any Conduit Lender elects not to exercise such option or otherwise fails to fund all or any  part of such Loan, the related Granting Lender shall be obligated to fund such Loan pursuant to  the terms hereof.  The funding of any Loan by a Conduit Lender hereunder shall utilize the  Commitment of its related Granting Lender to the same extent that, and as if, such Loan was  funded by such Granting Lender. Notwithstanding anything to the contrary herein, each Lender  shall be responsible for allocating in its sole discretion its investment in the Loans between such  Lender and its related Conduit Lender (if any) and the Lender record of such allocation shall be  conclusive.  (c) Funding Notice.  On the terms and conditions set forth herein, the  Borrower may submit to the Administrative Agent a funding notice, substantially in the form of  Exhibit H hereto (a “Funding Notice”) requesting that each Lender make a Loan to the Borrower.   The Administrative Agent shall promptly notify each of the Lenders of receipt of such Funding  Notice and each Lender’s Pro Rata Share of the requested Loan.  Each such Funding Notice shall  be submitted to the Administrative Agent at least three (3) Business Days prior to the requested  Funding Date.  Any Funding Notice received by the Administrative Agent prior to 11:00 am  (New York time) on a Business Day shall be deemed to have been received on such Business  Day and any Funding Notice received by the Administrative Agent after such time shall be  deemed received on the following Business Day.  (d) Loan Procedures.    

 

  42    (1) On each day prior to the Conversion Date, and subject to the satisfaction of  the terms and conditions set forth herein, each Lender (or, if applicable, the  Conduit Lender in its Related Group, if such Conduit Lender elects, in its  sole discretion, to make such Loan) shall make a Loan on the requested  Funding Date in an amount equal to its Pro Rata Share of the amount set  forth in the corresponding Funding Notice; provided, however, that a  Delaying Lender may elect to deliver a Delaying Funding Notice with  respect to such Loan Advance in accordance with Section 301(m) hereof.   Each Loan by each Lender (or, if applicable, the Conduit Lender in its  Related Group, if such Conduit Lender elects, in its sole discretion, to make  such Loan) shall be for an amount (A) not less than the lesser of (x) its then  unused Commitment and (y) One Hundred Thousand Dollars ($100,000),  and (B) not greater than the Availability of such Lender on the applicable  Funding Date.  In the event that any Defaulting Lender fails to make a Loan  in accordance with its Commitment, the other Lenders shall not be obligated  to fund the Pro Rata Share of the Defaulting Lender(s).  Except as otherwise  provided in Section 301(m) for a Delaying Lender, the failure of any Lender  or a member of its Related Group to make a Loan shall not impose an  obligation on any other non-Defaulting Lender or member of its Related  Group to make a Loan of such shortfall.  (2) Unless the Administrative Agent shall have received notice from a Lender,  prior to the proposed date of any Loan that such Lender will not make  available to the Administrative Agent such Lender’s Pro Rata Share of the  amount set forth in the related Funding Notice, the Administrative Agent  may assume that such Lender has made such Pro Rata Share available on  such date in accordance with clause (1) above and may, in reliance upon  such assumption, make available to the Borrower a corresponding amount.   In such event, if a Lender has not in fact made its Pro Rata Share available  to the Administrative Agent, then the applicable Lender and the Borrower  severally agree to pay to the Administrative Agent forthwith on demand  such corresponding amount with interest thereon, for each day from and  including the date such amount is made available to the Borrower to but  excluding the date of payment to the Administrative Agent, at (i) in the case  of a payment to be made by such Lender, the greater of the Federal Funds  Effective Rate and a rate determined by the Administrative Agent in  accordance with banking industry rules on interbank compensation, and  (ii) in the case of a payment to be made by the Borrower, the interest rate  applicable to Base Rate Loans.  If the Borrower and such Lender shall pay  such interest to the Administrative Agent for the same or an overlapping  period, the Administrative Agent shall promptly remit to the Borrower the  amount of such interest paid by the Borrower for such period.  If such  Lender pays its Pro Rata Share of the applicable Loan to the Administrative  Agent, then the amount so paid shall constitute such Lender’s Loan.  Any  payment by the Borrower shall be without prejudice to any claim the  Borrower may have against a Lender that shall have failed to make such  payment to the Administrative Agent.   

 

  43    (e) Records.  A duly authorized officer or representative of each Lender shall  make appropriate notations on its books and records to reflect its Pro Rata Share of payments  received by it in reduction of the Aggregate Loan Principal Balance.  The Borrower hereby  authorizes each duly authorized officer of each Lender to make such notations on its books and  records as aforesaid (provided that any failure by such officer or representative of a Lender to  make any such notation shall not affect the obligations of the Borrower under any Loan). Upon  the request of any Lender made through the Administrative Agent, the Borrower shall execute  and deliver to such Lender (through the Administrative Agent) a note, which shall evidence such  Lender’s Loans in addition to such accounts or records.  Each Lender may attach schedules to  its note and endorse thereon the date, amount and maturity of its Loans and payments with  respect thereto.  (f) SOFR.  Each Loan made by a Lender shall be a SOFR Rate Loan except  under the circumstances set forth in Section 301(r) or (s) of  this Agreement.  (g) Principal and Interest.  Distributions of principal and interest on the Loans  shall be made to the Lenders as set forth in Section 302 of this Agreement.  All payments of  principal and interest on the Loans and fees with respect to the Loans shall be paid by the  Borrower to the Lenders reflected in the Register maintained by the Administrative Agent as of  the related Record Date, based on their respective, Pro Rata Shares, by wire transfer of  immediately available funds for receipt prior to 11:00 a.m. (New York City time) on the related  Payment Date.  Any payments received by a Lender after 11:00 a.m. (New York City time) on  any day shall be considered to have been received on the next succeeding Business Day.  (h) Interest Payments on the Loan.  Subject to the provisions of Sections  301(i) and (j), (i) each SOFR Rate Loan (to the extent any Loan is a SOFR Rate Loan) shall bear  interest on the outstanding principal amount thereof during each Interest Accrual Period at a rate  per annum equal to Adjusted Term SOFR for such Interest Accrual Period plus the Applicable  Margin, and (ii) each Base Rate Loan (to the extent any Loan is a Base Rate Loan) shall bear  interest on the outstanding principal amount thereof during each Interest Accrual Period at a rate  per annum equal to the Base Rate plus the Applicable Margin.  Interest on any such SOFR Rate  Loan and Base Rate Loan shall be payable in arrears on each Payment Date from amounts on  deposit in the Distribution Account in accordance with Section 302.  The Administrative Agent  shall no later than the third Business Day prior to each Payment Date submit an invoice to the  Borrower and the Manager detailing the calculation of the Interest Payment payable on such  Payment Date.  (i) Interest on Overdue Amounts.  If the Borrower shall default in the  payment of (i) the Aggregate Loan Principal Balance on the Final Maturity Date, or (ii) the  Interest Payment on any Payment Date, or (iii) all other amounts becoming due hereunder on the  Final Maturity Date or any earlier date on which the Loan has been accelerated in accordance  with Section 802, the Borrower shall, from time to time, pay interest on such unpaid amounts, to  the extent permitted by Applicable Law, at a rate per annum equal to the Default Rate, for the  period during which such principal, interest or other amount shall be unpaid from the due date  of such payment to the date of actual payment thereof (after as well as before judgment).  Default  Fees shall be payable at the times and subject to the priorities set forth in Section 302 hereof.   

 

  44    (j) Maximum Interest Rate.  In no event shall the interest charged with  respect to the Loan exceed the maximum amount permitted by Applicable Law.  If at any time  the interest rate charged with respect to the Loan exceeds the maximum rate permitted by  Applicable Law, the rate of interest to accrue pursuant this Agreement with respect to the Loan  shall be limited to the maximum rate permitted by Applicable Law, but any subsequent  reductions in Adjusted Term SOFR or the Base Rate, as the case may be, shall not reduce the  interest to accrue on the Loan below the maximum amount permitted by Applicable Law until  the total amount of interest accrued on the Loan equals the amount of interest that would have  accrued if a varying rate per annum equal to the interest rate otherwise provided herein had at all  times been in effect.  (k) Calculation of Interest and Fees.  All computations of interest for any Base  Rate Loan for which the Prime Rate is used shall be made on the basis of a year of 365 or 366  days, as the case may be, and actual days elapsed.  All other computations of fees and interest  shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees  or interest, as applicable, being paid than if computed on the basis of a 365-day year).  Interest  shall accrue on the Loan for the day on which the Loan is made, and shall not accrue on the  Loan, or any portion thereof, for the day on which the Loan or such portion is paid, provided that  if the Loan is repaid on the same day on which it is made it shall bear interest for one day.  Each  determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive  and binding for all purposes, absent manifest error.  Whenever any payment hereunder shall be  stated to be due on a day other than a Business Day, such payment shall be made on the next  Business Day, and such extension of time shall in such case be included in the computation of  payment of the Interest Payment or any fee payable hereunder, as the case may be.  (l) Increase and Decrease in Commitments; Extension  (1) Commitment Reductions.  The Borrower may, upon at least 30 days’  written notice to each Lender, with a copy to the Administrative Agent and  Collateral Agent, terminate in whole, or reduce in part, the then unused  Commitment of each Lender; provided, however, that each partial reduction  of a Commitment shall be in amounts equal to $20,000,000 or an integral  multiple of $1,000,000 in excess thereof and shall be allocated pro rata  among each Lender (based on the then current Commitment of each  Lender).  Each notice of reduction or termination pursuant to this Section  shall be irrevocable.  Notwithstanding the foregoing, the Borrower may on  any Business Day reduce to zero and terminate in full the Aggregate  Commitment in connection with a refinancing of the Aggregate Loan  Principal Balance upon (a) at least five (5) Business Days’ prior written  notice to each Lender, with a copy to the Collateral Agent, the  Administrative Agent and each Hedge Counterparty, specifying the  proposed Payment Date of such termination and (b) payment in full of (i)  the Aggregate Loan Principal Balance and interest thereon, (ii) Breakage  Costs, if any, and (iii) all other Outstanding Obligations of Borrower under  this Agreement and the other Transaction Documents, including any  termination payments resulting from the required termination of any Hedge  Agreements then in effect in connection with such reduction.  

 

  45    (2) Request for Increase.  Provided there exists no Early Amortization Event,  Asset Base Deficiency or Event of Default, the Borrower may, from time to  time prior to the Scheduled Commitment Expiration Date, upon notice to  the Administrative Agent (which shall promptly notify the Lenders), request  an increase in the Aggregate Commitment by an amount (for all such  requests) not exceeding Five Hundred Million Dollars ($500,000,000) in  the aggregate; provided that the Borrower may make a maximum of five (5)  such requests and shall be on terms and pursuant to documentation  consistent with the terms and documentation applicable to each then unpaid  Loan, except with respect to any upfront or similar fees that may be agreed  to among the Borrower and the Lender providing any additional  Commitments.  At the time of sending such notice, the Borrower (in  consultation with the Administrative Agent) shall specify the time period  within which each Lender is requested to respond (which shall in no event  be less than ten Business Days from the date of delivery of such notice to  the Lender).  (3) Lender Elections to Increase.  Each Lender shall notify the Administrative  Agent within such time period whether or not it agrees to increase its  Commitment and, if so, whether by an amount equal to, greater than, or less  than its Pro Rata Share of such requested increase.  Any Lender not  responding within such time period shall be deemed to have declined to  increase its Commitment.  (4) Notification by Administrative Agent; Additional Lenders.  The  Administrative Agent shall notify the Borrower and each other Lender of  the Lenders’ responses to each request made hereunder.  Such offer shall be  made first to each existing Lender in proportion to its then existing  Commitments. If any existing Lender elects not to increase its Commitment,  then the Commitments of such declining existing Lender(s) will then be  offered to the other existing Lenders in proportion to their then existing  Commitments. If the existing Lenders do not collectively fulfill such  requested increase, the Borrower may also invite additional Eligible  Assignees to become Lenders pursuant to a joinder agreement in form and  substance satisfactory to the Borrower and the Administrative Agent with a  copy to the Collateral Agent.  Any requested increase in the Aggregate  Commitment need not be achieved in full in order for such requested  increase to take effect with respect to the respective Commitments of any  such Lenders who agree to such increase.  (5) Effective Date and Allocations.  If the Aggregate Commitment is increased  in accordance with this Section 301(l), the Administrative Agent and the  Borrower shall determine the effective date (the “Increase Effective Date”)  and the final allocation of such increase.  The Administrative Agent shall  promptly notify the Borrower, the Collateral Agent and each other Lender  of the final allocation of such increase and the Increase Effective Date.  The  parties hereto authorize the Administrative Agent to amend Schedule II  

 

  46    hereto as of each Increase Effective Date to reflect any modification to the  Aggregate Commitment pursuant to this Section 301(l).  The Lenders that  agree to such increase shall surrender their notes (if any) to the Borrower.   Upon the Borrower’s receipt of evidence of such surrender (to the extent  applicable), the Borrower shall deliver promptly to each applicable Lender  a replacement note (if requested by such Lender) reflecting the Lender’s  increased Commitment.    (6) Conditions to Effectiveness of Increase.  As a condition precedent to such  increase, the Borrower shall deliver to the Administrative Agent and the  Collateral Agent a certificate of the Borrower dated as of the Increase  Effective Date signed by an Authorized Officer of the Borrower (i)  certifying and attaching the resolutions adopted by the Borrower approving  or consenting to such increase, and (ii) certifying that, before and after  giving effect to such increase, (A) the representations and warranties  contained in Section 501 and the other Transaction Documents are true and  correct on and as of the Increase Effective Date, except to the extent that  such representations and warranties specifically refer to an earlier date, in  which case they are true and correct as of such earlier date, and (B) no Early  Amortization Event, Event of Default or Asset Base Deficiency exists or  would exist after giving effect to such increase.  The Borrower shall prepay  or shall cause the Lenders to allocate any Loans outstanding on the Increase  Effective Date (and pay any additional amounts required under the  Transaction Documents) to the extent necessary to keep the outstanding  Loans with any revised Pro Rata Share arising from any non-ratable  increase in the Aggregate Commitment under this Section 301(l).  (7) The Borrower may, within 60 days, but no later than 45 days (or such  shorter period as may be approved by the parties hereto), prior to the then  current Scheduled Commitment Expiration Date, by written notice to each  Lender, with a copy to the Collateral Agent and the Administrative Agent,  request that the Lenders extend the Scheduled Commitment Expiration Date  for a specified period of time.  Each Lender shall make a determination, in  its sole discretion, within 30 days of its receipt of the Borrower’s request,  as to whether or not it will agree to extend the Scheduled Commitment  Expiration Date; provided, however, that the failure of a Lender to make a  timely response to the Borrower’s request for extension of the Scheduled  Commitment Expiration Date shall be deemed to constitute a refusal by  such Lender to extend the Scheduled Commitment Expiration Date.  Any  such extension of the Scheduled Commitment Expiration Date shall become  effective only upon (i) written confirmation to the Borrower by a Lender of  its agreement to so extend the Scheduled Commitment Expiration Date, and  (ii) receipt by each Lender of any fees required to be paid in connection with  such extension. If fewer than all of the Lenders have agreed to extend the  then existing Scheduled Commitment Expiration Date, the Borrower may  arrange for additional Eligible Assignees to replace the Lender or Lenders  that have not consented to such extension.  

 

  47    (m) Delayed Funding.  (1) Any Lender may, not later than two (2) Business Days before a requested  Funding Date, deliver a written notice to the Borrower and the  Administrative Agent (a “Delaying Funding Notice”) certifying that it is a  Designated Delay Lender and its intention to fund its share of the requested  Loans on a date that is on or before the 35th day following the date of such  Funding Date (the “Delaying Funding Date”) rather than on the requested  Funding Date.  (2) If one or more Lenders deliver a Delaying Funding Notice within the time  frame described above (each, a “Delaying Lender”) with respect to a Loan  and such request for a Loan is not revoked or modified by the Borrower  pursuant to clause (3) below, then the Administrative Agent shall direct  each Lender who is not a Delaying Lender (each, a “Non-Delaying Lender”)  to advance an amount equal to such Non-Delaying Lender’s proportionate  share (measured by the Commitments of such Non-Delaying Lenders) of  the sum of the Delaying Lenders’ Pro Rata Shares of the requested Loan  (the “Delayed Amount”), and each Non-Delaying Lender shall fund its  proportionate share of the Delayed Amount; provided, however, that a Non- Delaying Lender shall not have any obligation to fund in excess of its  Availability.  (3) No later than two (2) Business Days before the requested Funding Date and  with respect to any Loan (an “Affected Borrowing”), the Borrower may, if  the Borrower is unable to borrow the full amount of the requested Loan  from Non-Delaying Lenders, either (i) revoke the related Funding Notice,  or (ii) reduce the amount of the Loan requested in the related Funding  Notice to reflect the funding allocation of the Delaying Lenders.  (4) The amount of any principal payment payable to a Delaying Lender  between the Funding Date and the Delaying Funding Date shall instead be  distributed as follows: (i) first, to each Non-Delaying Lenders, on a pro rata  basis based on the portion of the Delayed Amount funded by each Non- Delaying Lender (such Non-Delaying Lender, the “Overfunding Lenders”),  in an amount up to the portion of the Delayed Amount that was funded by  such Overfunding Lender, (ii) second, to the Borrower, the amount of any  Delayed Amount that was not funded by Non-Delaying Lender(s), and (iii)  third, to such Delaying Lender.   (5) On each Delaying Funding Date, the related Delaying Lender shall fund its  Delayed Amount.  A Delaying Lender that fully funds such Delayed  Amount on or before the applicable Delaying Funding Date will not  constitute a Defaulting Lender solely due to its failure to fund its share of  the requested Loan on the requested Funding Date.  Prior to a Delaying  Lender funding its portion of any Delayed Amount, such Delaying Lender  shall not be deemed to have advanced any portion of such Delayed Amount  

 

  48    for purposes of interest or other calculations, and, prior to any  reimbursement of such Delayed Amount, any Overfunding Lender shall be  credited for such purposes with the principal amount of such Delayed  Amount funded by such Overfunding Lender.  A Delaying Lender that fails  to fund its Delayed Amount on or before the Delaying Funding Date shall  be classified as a Defaulting Lender.  (6) Each Delaying Lender agrees that if the conditions to advance of a Loan  were met as of the applicable Funding Date, there shall be no conditions  whatsoever to its obligation to fund its portion of the Delayed Amount on  the related Delaying Funding Date, regardless of whether such conditions  to advance are met on the Delaying Funding Date.  (n) Principal Payments; Scheduled Amortization. The Aggregate Loan  Principal Balance shall be payable on each Payment Date from amounts on deposit in the  Distribution Account in an amount equal to: (i) so long as no Early Amortization Event or Event  of Default is continuing, the Scheduled Principal Payment Amount for such Payment Date (if  any) and the Supplemental Principal Payment Amount (if any) for such Payment Date to the  extent that funds are available for such purpose in accordance with the provisions of Section  302(b)(I) hereof, or (ii) if an Early Amortization Event has occurred and is then continuing, but  no Event of Default shall then be continuing (or an Event of Default has occurred but the Loan  has not been accelerated in accordance with Section 802), the Aggregate Loan Principal Balance  shall be payable in full to the extent that funds are available for such purpose in accordance with  the provisions of Section 302(b)(II).  The Aggregate Loan Principal Balance, together with all  unpaid interest (including all Default Fees), fees, expenses, costs and other amounts payable by  the Borrower to the Lenders and the Collateral Agent pursuant to the terms hereof, shall be due  and payable in full on the earlier to occur of (x) the date on which an Event of Default shall occur  and the Loans have been accelerated in accordance with Section 802 and (y) the Final Maturity  Date.  Funds on deposit in the Distribution Account when an Event of Default is continuing and  the Loans have been accelerated will be distributed in accordance with Section 806.    (o) Voluntary Prepayments.  The Borrower may, on any Payment Date and  upon three (3) Business Days’ prior notice to the Lenders and each Hedge Counterparty,  voluntarily prepay all, or any part, of the Aggregate Loan Principal Balance by making a wire  transfer to the Lenders; provided, however, that the Borrower may not make such repayment  from funds in the Distribution Account, the Revenue Reserve Account or the Restricted Cash  Account except to the extent that funds in any such account would otherwise be payable to the  Borrower or available to prepay the Aggregate Loan Principal Balance in accordance with the  terms hereof; provided, further, that any such voluntary prepayment shall (x) be allocated among  the Loans in the same proportion that the unpaid principal balance of each Loan, immediately  prior to such prepayment, bears to the Aggregate Loan Principal Balance and (y) be in an  aggregate minimum amount of the lesser of (A) $250,000.00 and (B) the Aggregate Loan  Principal Balance.  In the event of any Prepayment of the Loan in accordance with this Section  301(o) or any other provision hereof (including any Supplemental Principal Payment Amounts),  the Borrower shall pay any Breakage Costs incurred by the Lenders and any termination  payments resulting from the required termination of any Hedge Agreements then in effect in  connection with such prepayment. Any such voluntary Prepayment of less than the entire  

 

  49    Aggregate Loan Principal Balance shall be applied to reduce the Scheduled Principal Payment  Amount for future Payment Dates as set forth in Section 702(c).   (p) Upfront and Commitment Fees.  On the Closing Date, the Borrower shall  pay for the account of each Lender its respective Pro Rata Share of a fully-earned, non- refundable Upfront Fee, as set forth in the Fee Letter. On each Payment Date before the  Conversion Date, in accordance with Section 302(c), the Borrower shall pay for the account of  each Lender their respective Pro Rata Share of a fully-earned, non-refundable “Commitment  Fee” which shall be calculated daily and equal the product of (x) (1) three tenths percent (0.30%),  if the daily unused portion of the Aggregate Commitment hereunder is fifty percent (50.00%) or  less, or (2) two fifths percent (0.40%), if the daily unused portion of the Aggregate Commitment  hereunder is greater than fifty percent (50.00%) times (y) the unused Aggregate Commitment.  (q) Taxes.    (1) Subject to clause (7) below, in addition to payments of principal and interest  on the Loans when due, the Borrower shall pay, but only in accordance with  the priorities for distributions set forth in Section 302 hereof, each Lender  any and all present or future taxes, fees, duties, levies, imposts, or charges,  or any other similar deduction or withholding, whatsoever imposed by any  Governmental Authority on payments of principal and interest on the Loans  and other amounts payable by the Borrower under the Transaction  Documents, and all liabilities with respect thereto, excluding (i) franchise  taxes, (ii) such taxes as are imposed on or measured by or determined (in  whole or in part) by reference to each Indemnified Party’s net income by  the jurisdiction under the laws of which such Indemnified Party, as the case  may be (regardless of whether such tax is denominated as an “income tax”  under applicable local law), is organized or maintains an office or any  political subdivision thereof, (iii) any other taxes, fees, duties, levies,  imposts, or charges, whether payable directly by the Lender or by deduction  or withholding from any payment made in respect of the Loans, on account  of a connection, whether present or former, between the Lender and the  relevant taxing jurisdiction including without limitation branch profits  taxes, (iv) withholding taxes imposed on any payment in respect of the  Loans other than on account of a change in law or regulation occurring after  the Person in respect of which such tax is imposed acquired a beneficial  interest in the Loans, and (v) FATCA Withholding Taxes (each of the items  referred to in the clause (i), (ii), (iii), (iv) and (v), an “Excluded Tax” and  collectively, the “Excluded Taxes”; all such non-excluded taxes, levies,  imposts, deductions, charges, withholdings and liabilities being hereinafter  referred to as “Taxes”).  (2) In addition, subject to clause (7) below, the Borrower shall pay, but only in  accordance with the priorities for distribution set forth in Section 302  hereof, any present or future stamp or documentary taxes or any other  similar excise or property taxes, charges or similar levies which arise from  any payment made hereunder or from the execution, delivery or registration  

 

  50    of, or otherwise with respect to, this Agreement or any other  Transaction  Document, except any such taxes, charges or levies imposed with respect to  an assignment (hereinafter referred to as “Other Taxes”).  (3) Subject to clause (7) below, if any Taxes or Other Taxes are directly  asserted or imposed against any Indemnified Party, the Borrower shall  indemnify and hold harmless such Indemnified Party, but only in  accordance with the priorities for distribution set forth in Section 302  hereof, for the full amount of the Taxes or Other Taxes (including any Taxes  or Other Taxes asserted or imposed by any jurisdiction on amounts payable  under this Section 301(q)) paid by the Indemnified Party and any liability  (including penalties, interest, additions to tax and expenses) arising  therefrom or with respect thereto, whether or not such Taxes or Other Taxes  were correctly or legally asserted or imposed.  If the Borrower fails to pay  any Taxes or Other Taxes when due to the appropriate taxing authority or  fails to remit to the Indemnified Party the required receipts or other required  documentary evidence, the Borrower shall indemnify the Indemnified Party  for any incremental Taxes or Other Taxes, interest or penalties that may  become payable by the Indemnified Party as a result of any such failure.   Payment under this indemnification shall be made in accordance with the  payment priorities set forth in Section 302 hereof on the Payment Date  following the date on which the Indemnified Party makes written demand  therefor.  Each Indemnified Party shall give prompt notice to the Borrower  of any assertion of Taxes or Other Taxes so that the Borrower may, at its  option, contest such assertion.  (4) Within thirty (30) days after the date of any payment by the Borrower of  Taxes or Other Taxes, the Borrower shall furnish to the affected  Indemnified Party the original (or a certified copy) of a receipt evidencing  payment thereof, or other evidence of payment thereof satisfactory to such  Indemnified Party.  (5) Taxes, Other Taxes and other indemnification payments owing pursuant to  the provisions of this Section 301(q) shall be paid in accordance with the  payment priority set forth in Section 302 hereof.  (6) If an Indemnified Party is not a “United States person” as defined in section  7701(a)(30) of the Code, such Indemnified Party shall deliver to the  Borrower, with a copy to the Administrative Agent, the Collateral Agent  and the Manager, within 15 days after the Closing Date, or, if such  Indemnified Party becomes an Indemnified Party after the Closing Date, the  date on which such Indemnified Party becomes an Indemnified Party  hereunder:  (i) two (or such other number as may from time to time be  prescribed by Applicable Laws) duly completed copies of (A) IRS Form W- 8BEN or IRS Form W-8BEN-E claiming eligibility of the Indemnified  Party for benefits of an income tax treaty to which the United States is a  party and establishing that such Indemnified Party is not subject to  

 

  51    withholding under FATCA or (B) IRS Form W-8ECI (or any successor  forms or other certificates or statements that may be required from time to  time by the relevant United States taxing authorities or Applicable Laws) or  (ii) in the case of an Indemnified Party that is not legally entitled to deliver  either form listed in clause (6)(i), (A) a certificate of a duly authorized  officer of such Indemnified Party to the effect that such Indemnified Party  is not (x) a “bank” within the meaning of Section 881(c)(3)(A) of the Code,  (y) a “10 percent shareholder” of the Borrower or TCIL within the meaning  of Section 881(c)(3)(B) of the Code, or (z) a controlled foreign corporation  receiving interest from a related person within the meaning of Section  881(c)(3)(C) of the Code (such certificate, an “Exemption Certificate”) and  (B) two duly completed copies of IRS Form W-8BEN, IRS Form W-8BEN- E, or applicable successor form certifying the foreign status of such  Indemnified Party and establishing that such Indemnified Party is not  subject to withholding under FATCA, as appropriate, to permit the  Borrower to make payments hereunder for the account of such Indemnified  Party, without deduction or withholding of United States federal income or  similar Taxes.  Each other Indemnified Party agrees to deliver to the  Borrower, with a copy to the Administrative Agent, the Collateral Agent  and the Manager, within 15 days after the Closing Date, or, if such  Indemnified Party becomes an Indemnified Party after the Closing Date, the  date on which such Indemnified Party becomes an Indemnified Party  hereunder, one or more accurate and complete original signed copies (as the  Borrower, Administrative Agent, the Collateral Agent or Manager may  reasonably request) of IRS Form W-9 or successor applicable form (if  required by law), as the case may be, providing the employer identification  number for such Indemnified Party.  Additionally, upon the obsolescence  of, or after the occurrence of any event requiring a change in, any form or  certificate previously delivered by an Indemnified Party pursuant to this  Section 301(q)(6), and from time to time as may be reasonably requested  by the Borrower, such Indemnified Party shall deliver such forms, amended  or successor forms, certificates or statements as may be required under  Applicable Laws to permit the Borrower to make payments hereunder for  the account of such Indemnified Party, without deduction or withholding of  United States federal income or similar Taxes.  (7) The Borrower shall not be obligated to pay any additional amounts to any  Indemnified Party pursuant to clause (1), or to indemnify any Indemnified  Party pursuant to clause (3), in respect of withholding taxes (including  backup withholding) to the extent imposed as a result of (i) the failure of  such Indemnified Party to deliver to the Borrower any form and/or  Exemption Certificate pursuant to clause (6), (ii) such form not establishing  a complete exemption from U.S. federal withholding tax or the information  or certifications made therein by the Indemnified Party being untrue or  inaccurate on the date delivered in any material respect, or (iii) the  Indemnified Party designating a successor office at which it maintains the  Loans which has the effect of causing such Indemnified Party to become  

 

  52    subject to or obligated for tax payments in excess of those in effect  immediately prior to such designation; provided, however, that the  Borrower shall be obligated to pay additional amounts to any such  Indemnified Party pursuant to clause (1), and to indemnify any such  Indemnified Party pursuant to clause (3), in respect of United States federal  withholding taxes if (i) any such failure to deliver a form and/or Exemption  Certificate or the failure of such form to establish a complete exemption  from U.S. federal withholding tax or inaccuracy or untruth contained therein  resulted from a change in any Applicable Law or regulation (other than any  withholding taxes imposed under FATCA) occurring after the date the  Person in respect of which such tax is imposed acquired a beneficial interest  in the Loans, which change rendered such Indemnified Party no longer  legally entitled to deliver any such form or otherwise ineligible for a  complete exemption from U.S. federal withholding tax, or (ii) the  redesignation of the Indemnified Party’s office for maintenance of the  Loans was made at the request of the Borrower.  (8) Any Indemnified Party that becomes entitled to the payment of additional  amounts pursuant to Section 301(q)(1) shall use reasonable efforts  (consistent with Applicable Law) to file any document reasonably requested  by the Borrower or to transfer its interest in the Loans to an Affiliate in  another jurisdiction if the making of such a filing or transfer to an Affiliate,  as the case may be, would avoid the need for or reduce the amount of any  payment of such additional amounts that may thereafter accrue and would  not, in the good faith determination of such Indemnified Party, be  disadvantageous to it.   (9) If an Indemnified Party receives any refund or is entitled to a tax credit with  respect to Taxes or Other Taxes for which the Borrower has paid any  additional amounts pursuant to Section 301(q)(1) or Section 301(q)(2) or  made an indemnity payment pursuant to Section 301(q)(3), then such  Indemnified Party shall promptly pay the Borrower the portion of such  refund or credit and any interest received with respect thereto as it  determines, in its reasonable, good faith judgment will leave it after such  payment, in no better or worse financial position than it would have been  absent the imposition of such Taxes or Other Taxes and the payment by the  Borrower of such indemnity or additional amounts pursuant to this Section  301(q)(9) provided, however, that (i) the Borrower agrees to promptly  return any amount paid to the Borrower pursuant to this Section 301(q)(9)  upon notice from such Indemnified Party that such refund or any portion  thereof is required to be repaid to the relevant taxing authority and (ii)  nothing in this Section 301(q)(9) shall require an Indemnified Party to  disclose any confidential information to the Borrower (including, without  limitation, its tax returns).  (10) If the Borrower determines in good faith that a reasonable basis exists for  contesting any Taxes or Other Taxes for which additional amounts have  

 

  53    been paid pursuant to Section 301(q)(1) or Section 301(q)(2) or an  indemnity payment has been made pursuant to Section 301(q)(3), the  Indemnified Party (to the extent such Person reasonably determines in good  faith that it will not suffer a material adverse effect as a result thereof) shall  cooperate with the Borrower in challenging such Taxes or Other Taxes, at  the Borrower’s expense, if so requested by the Borrower in writing.  (r) Illegality for SOFR Loans.    (i) If any Lender determines that any law has made it unlawful, or that  any Governmental Authority has asserted that it is unlawful, for such Lender or its  Lending Office to make, maintain or fund the Loans to the extent interest thereon  is determined by reference to the Term SOFR Reference Rate, or to determine or  charge interest rates based upon the Term SOFR Reference Rate, then, on notice  thereof by such Lender to the Borrower, (i) any obligation of such Lender to make  or continue any SOFR Rate Loan shall be suspended, and (ii) if such notice asserts  the illegality of such Lender making or maintaining any Base Rate Loan the interest  rate on which is determined by reference to the Term SOFR component of the Base  Rate, the interest rate on which any Base Rate Loan of Lender shall, if necessary to  avoid such illegality, be determined by the Administrative Agent without reference  to the Term SOFR component of the Base Rate, in each case until such Lender  notifies the Administrative Agent, the Collateral Agent and the Borrower that the  circumstances giving rise to such determination no longer exist.  Upon receipt of  such notice, (x) the Borrower shall, upon demand from such Lender (with a copy  to the Administrative Agent and the Collateral Agent), prepay or, if applicable,  convert any SOFR Rate Loan of such Lender to a Base Rate Loan (the interest rate  on which Base Rate Loan of such Lender shall, if necessary to avoid such illegality,  be determined by the Administrative Agent without reference to the Term SOFR  component of the Base Rate), either on the last day of the Interest Accrual Period  therefor, if such Lender may lawfully continue to maintain such SOFR Rate Loan  to such day, or immediately, if such Lender may not lawfully continue to maintain  such SOFR Rate Loan and (y) if such notice asserts the illegality of such Lender  determining or charging interest rates based upon Term SOFR, the Administrative  Agent shall during the period of such suspension compute the Base Rate applicable  to such Lender without reference to the Term SOFR component thereof until the  Administrative Agent and the Collateral Agent are advised in writing by such  Lender that it is no longer illegal for such Lender to determine or charge interest  rates based upon Term SOFR.  Upon any such prepayment or conversion, the  Borrower shall also pay accrued interest on the amount so prepaid or converted.  (ii) If, in any applicable jurisdiction, it becomes unlawful for any Lender  to perform any of its obligations as contemplated by this Agreement or to fund or  maintain its participation in the Loans:  (1) that Lender shall promptly notify the Administrative Agent and the  Borrower upon becoming aware of that event; and  

 

  54    (2) the Borrower shall terminate the Commitment of such Lender and repay the  Loans owing to such Lender on the date specified by the Lender in the  notice delivered to the Administrative Agent (being no earlier than the last  day of any applicable grace period permitted by law).  (s) Inability to Determine Rates.  If the Majority Lenders determine that for   any reason in connection with any SOFR Rate Loan that (a) adequate and reasonable means do  not exist for determining the Term SOFR Reference Rate for any applicable Interest Accrual  Period with respect to any SOFR Rate Loan or in connection with any Base Rate Loan, or (b)  Adjusted Term SOFR for any applicable Interest Accrual Period with respect to any SOFR Rate  Loan does not adequately and fairly reflect the cost to such Lenders of funding the Loans, and  in each case such circumstances are expected to be temporary, the Administrative Agent will  promptly so notify the Borrower, each Hedge Counterparty and each other Lender.  Thereafter,  (x) the obligation of such Lenders to maintain any SOFR Rate Loan shall be suspended, and (y)  in the event of a determination described in the preceding sentence with respect to the Term  SOFR component of the Base Rate, the utilization of the Term SOFR component in determining  the Base Rate shall be suspended, in each case until the Administrative Agent (upon the  instruction of the Majority Lenders) revokes such notice. If such circumstances are unlikely to  be temporary, then the Administrative Agent and the Borrower shall endeavor to establish an  alternate rate of interest to Adjusted Term SOFR, pursuant to the provisions specified in the final  paragraph of the definition of “Term SOFR”.  (t) Increased Costs.  (1) Increased Costs Generally.  If any Change in Law shall:  (A) impose, modify or deem applicable any reserve, special deposit,  compulsory loan, insurance charge or similar requirement against assets of,  deposits with or for the account of, or credit extended or participated in by,  any Lender (or any member of its Related Group);  (B) subject any Indemnified Party to any taxes described in clause (i) of the  definition of Excluded Taxes on the Loans or other obligations, or its  deposits, reserves, other liabilities or capital attributable thereto (but  excluding any Excluded Taxes described in clauses other than clause (i) of  the definition of Excluded Taxes); or  (C) impose on any Lender (or any member of its Related Group) any other  condition, cost or expense affecting this Agreement;  and the result of any of the foregoing shall be to (i) increase the cost to such Lender (or any member  of its Related Group) of making, converting to, continuing or maintaining its investment in its  Loans the interest on which is determined by reference to Term SOFR, or (ii) reduce the amount  of any sum received or receivable by such Person (whether of principal, interest or any other  amount), or (iii) increase the amount of high quality liquid assets required to be maintained by  such Person, or (iv) result in the imposition of any internal charges related to liquidity to such  Lender, then, upon request of such Lender, the Borrower will pay to such Lender such additional  

 

  55    amount or amounts as will compensate such Lender for such additional costs incurred or reduction  suffered, subject to clauses (3) and (4) below.  (2) Capital Requirements.  If any Lender determines that any Change in Law  affecting such Lender, such Lender’s holding company, if any, or other  member of its Related Group regarding capital or liquidity requirements  has, or would have, the effect of (i) reducing the rate of return on such  Lender’s capital, or on the capital or liquidity of such Lender’s holding  company, if any, or other member of its Related Group as a consequence of  this Agreement, to a level below that which such Lender or such Lender’s  holding company could have achieved but for such Change in Law (taking  into consideration such Lender’s policies and the policies of such Lender’s  holding company with respect to capital adequacy or liquidity (other than a  change solely in such policy)) or (ii) increasing the amount of high quality  liquid assets required to be maintained by any such Person, or (iii) resulting  in the imposition of an internal liquidity charge to such Person, then, in each  such case, the Borrower will, from time to time, pay to such Lender such  additional amount or amounts as will compensate such Lender or such  Lender’s holding company for any such reduction suffered.  (3) Certificates for Reimbursement.  A certificate of a Lender setting forth the  amount or amounts necessary to compensate such Lender or its holding  company, as the case may be, as specified in Section 301(t)(1) or (2) and  delivered to the Borrower shall be conclusive absent manifest error;  provided that such certificate (i) sets forth in reasonable detail the amount  or amounts payable to such Indemnified Party pursuant to such Section  301(t)(1) or (2), (ii) explains the methodology used to determine such  amount, (iii) states that the applicable increased costs or reductions were  suffered no more than ninety (90) days (or, if the circumstances giving rise  to such increased costs or reductions were retroactive, such period in excess  of ninety (90) days as includes the period of retroactive effect) prior to the  date of such certificate, and (iv) states that such amount is consistent with  amounts that such Indemnified Party has required other similarly situated  borrowers or obligors to pay with respect to such increased costs or  reductions.  The Borrower shall pay such Lender the amount shown as due  on any such certificate in accordance with the priority of payments set forth  in this Agreement.  (4) Delay in Requests.  Failure or delay on the part of any Indemnified Party (if  so entitled) to demand compensation pursuant to the foregoing provisions  of this Section 301(t) shall not constitute a waiver of such Indemnified  Party’s right to demand such compensation; provided that the Borrower  shall not be required to compensate an Indemnified Party pursuant to the  foregoing provisions of this Section 301(t) for any increased costs incurred  or reductions (i) suffered more than ninety (90) days prior to the date that  such Indemnified Party notifies the Borrower of the Change in Law giving  rise to such increased costs or reductions and of such Indemnified Party’s  

 

  56    intention to claim compensation therefor (except that, if the Change in Law  giving rise to such increased costs or reductions is retroactive, then the  ninety (90) day period referred to above shall be extended to include the  period of retroactive effect thereof) or (ii) if such Indemnified Party has not  required other similarly situated borrowers or obligors to pay comparable  amounts with respect to such increased costs or reductions.  (u) Replacement of Lender.  In the event (i) any Lender (or the Administrative  Agent or any Indemnified Party with respect to any Lender) delivers a certificate requesting  compensation pursuant to Section 301(q) or Section 301(t) hereof or a notice pursuant to Section  301(r) or 301(s), (ii) the Borrower is required to pay any additional amount to any Lender (or  any Indemnified Party with respect to any Lender) or any Governmental Authority on account  of any Lender (or any Indemnified Party with respect to any Lender) pursuant to Section 301(q)  or (iii) any Lender does not consent (or fails to respond) to a proposed amendment, modification  or waiver to any provision of this Agreement or any other Transaction Document requested by  the Borrower (and the Borrower has satisfied all other conditions precedent to such amendment  or waiver but for receiving the consent of such Lender), the Borrower may, at its sole expense  and effort, upon notice to such Lender, require such Lender to transfer and assign, without  recourse (in accordance with and subject to the restrictions contained in this Agreement), all of  its interests, rights and obligations under this Agreement and the other Transaction Documents  to an assignee that shall assume such assigned obligations (which assignee may be another  Lender, if a Lender accepts such assignment); provided that:  (1) such Lender shall have received payment of an amount equal to the  outstanding principal of its Loans, accrued interest thereon, accrued fees  and all other amounts payable to it hereunder and under the other  Transaction Documents from the Borrower or the assignee (to the extent of  such outstanding principal and accrued interest and fees) or the Borrower  (in the case of all other amounts);  (2) in the case of any such assignment resulting from a claim for compensation  under Section 301(q) or (t), such assignment will result in a reduction in  such compensation or payments thereafter; and  (3) such assignment does not conflict with Applicable Law.  (v) Illegality. If, in any applicable jurisdiction, the Administrative Agent or  any Lender determines that the application of Sanctions has made it unlawful, or that any  Governmental Authority has asserted that it is unlawful, for the Administrative Agent or any  Lender to (i) perform any of its obligations hereunder or under any other Loan Document, (ii) to  fund any Loan or (iii) issue, make, maintain, fund or charge interest or fees with respect to any  Loan, such Person shall promptly notify the Administrative Agent, then, upon the Administrative  Agent notifying the Borrower, and until such notice by such Person is revoked, any obligation  of such Person to issue, make, maintain, fund or charge interest or fees with respect to any such  Loan shall be suspended, and to the extent required by such Sanctions, cancelled.  Upon receipt  of such notice, the Borrower shall, (A) repay that Person’s participation in the Loans or other  applicable Obligations on the next Payment Date for each Loan, or on another applicable date  

 

  57    with respect to another Obligation, occurring after the Administrative Agent has notified the  Borrower or, in each case, if earlier, the date specified by such Person in the notice delivered to  the Administrative Agent (being no earlier than the last day of any applicable grace period  permitted by Applicable Law) and (B) take all reasonable actions requested by such Person to  mitigate or avoid such illegality.  (w) Indemnity. The Borrower will indemnify each Lender against any loss or  expense which such Lender may sustain or incur, including any loss or expense sustained or  incurred in obtaining, liquidating or employing deposits or other funds acquired to effect, fund  or maintain a Loan, due to (a) any failure by the Borrower to make any payment when due of  any amount due hereunder in connection with a SOFR Rate Loan, (b) any failure of the Borrower  to borrow on a date specified therefor in a Funding Notice, (c) any payment or prepayment of  any SOFR Rate Loan on a date other than the last day of the Interest Accrual Period for such  SOFR Rate Loan or (d) any assignment of a SOFR Rate Loan on a day other than the last day of  the Interest Accrual Period therefor.  Section 302 Distribution Account.    (a) The Borrower shall establish and maintain so long as any Outstanding  Obligation remains unpaid the Distribution Account into which the Borrower shall deposit (or  cause to be deposited) all of the following amounts:  (i) all amounts representing Net Operating  Income (and adjustments thereof) and Sales Proceeds with respect to the Managed Containers  received from the Manager pursuant to the terms of the Management Agreement, (ii) all Manager  Advances, (iii) all amounts received by the Borrower pursuant to the terms of all Hedge  Agreements then in effect, and (iv) other payments specified to be deposited therein pursuant to  the terms of this Agreement and the other Transaction Documents.  Such Distribution Account  shall initially be established and maintained with the Collateral Agent. The Distribution Account  shall at all times be an Eligible Account, shall be in the name of the Borrower and shall be  pledged to the Collateral Agent pursuant to the terms of this Agreement. The Borrower shall not  establish any additional Distribution Accounts without (in each instance) prior written notice to  the Collateral Agent.  (b) The Borrower shall cause the Manager to deposit into the Distribution  Account in accordance with the provisions of Section 5.1 and 5.2 of the Management Agreement  amounts representing the Net Operating Income (and adjustments thereof) and Sales Proceeds  with respect to the Managed Containers.  The Manager shall be permitted to require the  Collateral Agent to withdraw from amounts on deposit in the Distribution Account on each  Payment Date, or otherwise net out from amounts otherwise required to be deposited by the  Manager in the Distribution Account in accordance with the provisions of Section 5.1 and 5.2 of  the Management Agreement, the amount of any Management Fees or Management Fee  Arrearage that would otherwise be due and payable on the immediately succeeding Payment  Date.  (c) On or prior to each Determination Date, the Borrower shall cause the  Manager, pursuant to Section 4.1.2 of the Management Agreement, to prepare and deliver the  Manager Report.  On each Payment Date, the Collateral Agent, based on the Manager Report  (upon which Manager Report the Collateral Agent shall be entitled to conclusively rely), shall  

 

  58    distribute from the Distribution Account an amount equal to the sum of (i) all amounts  representing the Net Operating Income of the Eligible Containers received during the related  Collection Period, (ii) all Sales Proceeds and other amounts received by the Borrower subsequent  to the immediately preceding Payment Date that pursuant to the terms of the Transaction  Documents are required to be deposited into the Distribution Account, (iii) all amounts  transferred from the Restricted Cash Account in accordance with the provisions of Section 306  hereof; provided that the amounts described in this clause (iii) may be used only to make the  payments described in Section 306 hereof, (iv) all amounts transferred from the Revenue Reserve  Account in accordance with the provisions of Section 307 hereof, (v) any earnings on Eligible  Investments in the Distribution Account and the Restricted Cash Account, (vi) all Manager  Advances made by the Manager in accordance with the terms of the Management Agreement  subsequent to the immediately preceding Payment Date, and (vii) the net amount received by the  Borrower pursuant to any Hedge Agreement then in effect (the sum of the amounts described in  clauses (i) through (vii) collectively, the “Available Distribution Amount”), to the following  Persons, by wire transfer of immediately available funds, in the order of priority listed below (in  the absence of any Manager Report, the Collateral Agent shall distribute the Available  Distribution Amount in accordance with written instructions from the Administrative Agent  delivered in accordance with the terms of this Agreement (with a copy to the Borrower and each  Hedge Counterparty) and shall hold until delivery of the Manager Report (i) any funds otherwise  payable due to the Borrower and (ii) any other amounts which the Administrative Agent is unable  to ascertain or allocate to a specific payment priority set forth in this Agreement):  (I) If no Early Amortization Event or Event of Default shall have occurred and shall  then be continuing:  (1) To the Collateral Agent, an amount equal to the sum of (A) (x) Collateral  Agent Fees and (y) Collateral Agent Indemnified Amounts then due and  payable (subject to an aggregate per annum dollar limitation of Forty  Thousand Dollars ($40,000)) and (B) any amounts payable to the Collateral  Agent in accordance with the provisions of Section 403(e) hereof;  (2) To the Director Services Provider in the amount of any unpaid fees owing  pursuant to the Director Services Agreement (not to exceed $25,000 per  annum)  (3) To the Manager, an amount equal to the sum of: (i) the Management Fee  then due and payable, (ii) the amount of any Management Fee Arrearage,  and (iii) any Excess Deposit then due and payable, but in each case only to  the extent not previously withheld by the Manager in accordance with the  terms of the Transaction Documents; provided, further, however, that the  foregoing amount (determined without regard to this proviso or any  comparable proviso in any other section of this Agreement relating to  distributions to the Manager) shall only be payable to the Manager up to the  amount of any prior or current unpaid Net Manager Compensation, and the  remainder thereof shall be payable directly to the Container Service  Provider in payment of the CSP Compensation and provided, further, that  the aggregate amount payable pursuant to this clause (3) shall in no event  

 

  59    exceed the sum of (i) such Management Fee, (ii) such Management Fee  Arrearage (if any), and (iii) such Excess Deposit (if any);   (4) To the Manager, reimbursement for any Manager Advances;  (5) To the Administrative Agent, the Administrative Agent Fees then due and  payable;  (6) To the Persons entitled thereto:  (i) any auditing, accounting and related fees  then due and payable which are classified as a Borrower Expense and (ii)  any other Borrower Expenses then due and payable, so long as the aggregate  amount paid pursuant to this clause (6) in any calendar year would not  exceed Fifty Thousand Dollars ($50,000);  (7) To each of the following on a pro rata basis: (i) to each Hedge Counterparty,  the amount of any scheduled payments (but excluding termination  payments) then due and payable pursuant to the terms of any Hedge  Agreement then in effect and (ii) to each Lender, an amount equal to its Pro  Rata Share of the Interest Payment for such Payment Date (excluding the  portion of such Interest Payment in respect of Step-Up Margin);   (8) To the Restricted Cash Account, an amount sufficient so that the total  amount on deposit therein, is equal to the Restricted Cash Amount for such  Payment Date;  (9) To each Hedge Counterparty, on a pro rata basis, the amount of any unpaid  payments then due and payable (including termination payments but  excluding (x) any payments made pursuant to clause (7) above and (y)  termination payments resulting from an “Event of Default” or a  “Termination Event” (other than “Illegality” and “Tax Event”), each as  defined in the related Hedge Agreement, where the related Hedge  Counterparty is the “Defaulting Party” or sole “Affected Party” (each as  defined in the related Hedge Agreement) pursuant to the terms of any Hedge  Agreement then in effect;  (10) To each Lender, an amount equal to its Pro Rata Share (if any) of the  Scheduled Principal Payment Amount then due and payable;  (11) To each Lender, an amount equal to its Pro Rata Share (if any) of the  Supplemental Principal Payment Amount then due and payable;   (12) To each Lender, an amount equal to its Pro Rata Share of the Interest  Payment for such Payment Date in respect of Step-Up Margin, after giving  effect to the payment made pursuant to clause (7) above;  (13) To the Lenders and the Hedge Counterparties, on a pro rata basis, interest  payments, Commitment Fees and Default Fees on the Loans not paid  

 

  60    pursuant to clause (7) or clause (12) above and any Indemnity Amounts or  other amounts then due and payable;   (14) To the Collateral Agent, any Collateral Agent Fees and Collateral Agent  Indemnified Amounts then due and payable, after giving effect to the  payment made pursuant to clause (1) above;  (15) To the Director Services Provider in the amount of any unpaid Indemnified  Amounts (as defined in the Director Services Agreement) owing pursuant  to the Director Services Agreement;  (16) To each Hedge Counterparty, on a pro rata basis, the amount of any unpaid  payments then due and payable (including termination payments resulting  from an “Event of Default” or a “Termination Event” (other than  “Illegality” and “Tax Event”), each as defined in the related Hedge  Agreement where the related Hedge Counterparty is the “Defaulting Party”  or sole “Affected Party” (each as defined in the related Hedge Agreement),  but excluding any payments made pursuant to clause (7) or (9) above)  pursuant to the terms of any Hedge Agreement then in effect;  (17) [Reserved];  (18) To each of the following on a pro rata basis: (i) to the Borrower, the amount  of any indemnity payments payable to the officers, directors and/or  managers of the Borrower required to be made by the Borrower, and (ii) to  the Manager, the amount of any indemnity payments required to be made  by the Borrower to the Manager in accordance with the terms of the  Management Agreement; and  (19) To the Borrower, any remaining Available Distribution Amount which may  be used by the Borrower for any purpose, including, without limitation,  general corporate purposes, the distribution of dividends, repayment of  debt, paying fees and expenses or any other purpose in the sole discretion  of the Borrower.   (II) If an Early Amortization Event shall have occurred and then be continuing, but no  Event of Default shall then be continuing (or an Event of Default has occurred but the  Loans have not been accelerated in accordance with Section 802 hereof, unless the  declaration of such acceleration and its consequences have been rescinded or annulled):  (1) To the Collateral Agent, an amount equal to the sum of (A) (x) Collateral  Agent Fees and (y) Collateral Agent Indemnified Amounts then due and  payable (subject to an aggregate per annum dollar limitation of Forty  Thousand Dollars ($40,000)) and (B) any amounts payable to the Collateral  Agent in accordance with the provisions of Section 403(e) hereof;  

 

  61    (2) To the Director Services Provider in the amount of any unpaid fees owing  pursuant to the Director Services Agreement (not to exceed $25,000 per  annum)  (3) To the Manager, an amount equal to the sum of: (i) the Management Fee  then due and payable, (ii) the amount of any Management Fee Arrearage,  and (iii) any Excess Deposit then due and payable, but in each case only to  the extent not previously withheld by the Manager in accordance with the  terms of the Transaction Documents, provided, further, however, that the  foregoing amount (determined without regard to this proviso or any  comparable proviso in any other section of this Agreement relating to  distributions to the Manager) shall only be payable to the Manager up to the  amount of any prior or current unpaid Net Manager Compensation, and the  remainder thereof shall be payable directly to the Container Service  Provider in payment of the CSP Compensation; provided, further, that the  aggregate amount payable pursuant to this clause (3) shall in no event  exceed the sum of (i) such Management Fee, (ii) such Management Fee  Arrearage (if any), and (iii) such Excess Deposit (if any);   (4) To the Manager, reimbursement for any Manager Advances;  (5) To the Administrative Agent, the Administrative Agent Fees then due and  payable;  (6) To the Persons entitled thereto:  (i) any auditing, accounting and related fees  then due and payable which are classified as a Borrower Expense and (ii)  any other Borrower Expenses then due and payable, so long as the aggregate  amount paid pursuant to this clause (6) in any calendar year would not  exceed Fifty Thousand Dollars ($50,000);  (7) To each of the following on a pro rata basis: (i) to each Hedge Counterparty,  the amount of any scheduled payments (but excluding termination  payments) then due and payable pursuant to the terms of any Hedge  Agreement then in effect and (ii) to each Lender, an amount equal to its Pro  Rata Share of the Interest Payment for such Payment Date (excluding the  portion of such Interest Payment in respect of Step-Up Margin);  (8) To the Restricted Cash Account, an amount sufficient so that the total  amount on deposit therein, is equal to the Restricted Cash Amount for such  Payment Date;  (9) To each of the following on a pro rata basis: (i) to each Hedge Counterparty,  on a pro rata basis, the amount of any unpaid payments then due and payable  (including termination payments but excluding (x) any payments made  pursuant to clause (7) above and (y) termination payments resulting from  an “Event of Default” or a “Termination Event” (other than “Illegality” and  “Tax Event”) (each as defined in the related Hedge Agreement where the  

 

  62    related Hedge Counterparty is the “Defaulting Party” or sole “Affected  Party” (each as defined in the related Hedge Agreement)) pursuant to the  terms of any Hedge Agreement then in effect, and (ii) to each Lender, to  pay the unpaid principal balance of its Loan(s) until the Aggregate Loan  Principal Balance is reduced to zero;  (10) To each Lender, an amount equal to its Pro Rata Share of the Interest  Payment for such Payment Date in respect of Step-Up Margin, after giving  effect to the payment made pursuant to clause (7) above;  (11) To the Lenders and the Hedge Counterparties, on a pro rata basis, interest  payments on the Loans, Commitment Fees and Default Fees not paid  pursuant to clause (7) or clause (10) above and any Indemnity Amounts or  other amounts then due and payable;   (12) [Reserved];  (13) To the Collateral Agent, any Collateral Agent Fees and Collateral Agent  Indemnified Amounts then due and payable, after giving effect to the  payment made pursuant to clause (1) above;  (14) To the Director Services Provider in the amount of any unpaid Indemnified  Amounts (as defined in the Director Services Agreement) owing pursuant  to the Director Services Agreement;  (15) To each Hedge Counterparty, on a pro rata basis, the amount of any unpaid  payments then due and payable (including termination payments resulting  from an “Event of Default” or a “Termination Event” (other than  “Illegality” and “Tax Event”), each as defined in the related Hedge  Agreement, where the related Hedge Counterparty is the “Defaulting Party”  or sole “Affected Party” (each as defined in the related Hedge Agreement),  but excluding any payments made pursuant to clause (7) or (9) above)  pursuant to the terms of any Hedge Agreement then in effect;  (16) To each of the following on a pro rata basis: (i) to the Borrower, the amount  of any indemnity payments payable to the officers, directors and/or  managers of the Borrower required to be made by the Borrower, and (ii) to  the Manager, the amount of any indemnity payments required to be made  by the Borrower to the Manager in accordance with the terms of the  Management Agreement; and  (17) To the Borrower, any remaining Available Distribution Amount which may  be used by the Borrower for any purpose, including, without limitation,  general corporate purposes, the distribution of dividends, repayment of  debt, paying fees and expenses or any other purpose in the sole discretion  of the Borrower.  

 

  63    (d) The Borrower shall have the right, but not the obligation, to make (or to  direct the Collateral Agent to make) principal payments on the Loans and payments of other  Outstanding Obligations from some or all of (i) amounts that are payable or have been paid to  the Borrower pursuant to this Section 302 and (ii) other funds held by the Borrower.    Section 303 Investment of Monies Held in the Distribution Account, the Revenue  Reserve Account and the Restricted Cash Account; Control over Eligible Investments.  (a) The Collateral Agent shall invest any cash deposited in the Distribution  Account, the Revenue Reserve Account and the Restricted Cash Account in such Eligible  Investments as the Borrower or the Manager, on behalf of the Borrower, shall direct in writing  or by telephone and subsequently confirm in writing. Each Eligible Investment (including  reinvestment of the income and proceeds of Eligible Investments) shall be held to its maturity  and shall mature or shall be payable on demand not later than the Business Day immediately  preceding the next succeeding Payment Date. If the Collateral Agent has not received written  instructions from the Borrower or the Manager by 2:30 p.m. (New York time) on the day such  funds are received as to the investment of funds then on deposit in any of the aforementioned  accounts, the funds shall remain uninvested.  Eligible Investments shall be made in the name of  the Securities Intermediary, and subject to the terms of the Control Agreements.  Any earnings  on Eligible Investments in the Distribution Account, the Revenue Reserve Account and the  Restricted Cash Account shall be retained in each such account and be distributed in accordance  with the terms of this Agreement. The Collateral Agent shall not be liable or responsible for  losses on any investments made by it pursuant to this Section 303. The Borrower and the  Manager acknowledge that upon its written request and at no additional cost, it has the right to  receive notification after the completion of each purchase and sale of permitted investments or  the Collateral Agent’s receipt of a broker’s confirmation. The Borrower and the Manager agree  that such notifications shall not be provided by the Collateral Agent hereunder except in  accordance with the immediately preceding sentence, and the Collateral Agent shall make  available, upon request and in lieu of notifications, periodic account statements that reflect such  investment activity. No statement need be made available for any fund/account if no activity has  occurred in such fund/account during such period. To the extent the Collateral Agent receives  conflicting instructions from the Borrower or the Manager on behalf of the Borrower, the  Collateral Agent shall take direction from the Borrower.  (b) On or prior to the Closing Date, each of the Borrower and the Securities  Intermediary shall enter into control agreements (each a “Control Agreement”, collectively, the  “Control Agreements”) substantially in the form of Exhibit B hereto for each of the Distribution  Account, the Revenue Reserve Account and the Restricted Cash Account.  At all times on and  after the Closing Date, each such account shall be the subject of a Control Agreement.  (c) The Collateral Agent, acting in accordance with the terms of this  Agreement, shall be entitled to deliver an Entitlement Order to the Securities Intermediary at  which such accounts are maintained at any time; provided, however, that the Collateral Agent  agrees not to invoke its right to provide an Entitlement Order from the Restricted Cash Account  in accordance with Section 306 unless an Event of Default has occurred and is continuing. Such  Control Agreements shall provide that upon receipt of the Entitlement Order in accordance with  

 

  64    the provisions of this Agreement, the Collateral Agent shall comply with such Entitlement Order  without further consent by the Borrower or any other Person.  (d) Each of the Distribution Account, the Revenue Reserve Account and the  Restricted Cash Account shall be established with the Collateral Agent and, so long as any  Outstanding Obligation remains unpaid, shall be maintained with the Collateral Agent so long  as (A) the short-term unsecured debt obligations of the financial institution fulfilling the role of  the Collateral Agent are rated not less than the Required Deposit Rating, or (B) each of the  Distribution Account, the Revenue Reserve Account and the Restricted Cash Account are  maintained with the Collateral Agent.  (e) Each of the Distribution Account, the Revenue Reserve Account and the  Restricted Cash Account shall be governed by the laws of the State of New York, regardless of  any provision in any other agreement. Each Control Agreement shall provide for purposes of the  UCC, that New York shall be deemed to be the Securities Intermediary’s jurisdiction and each  of the Distribution Account, the Revenue Reserve Account and the Restricted Cash Account (as  well as the Securities Entitlements related thereto) shall be governed by the laws of the State of  New York.  (f) The Securities Intermediary has not entered into, and until the termination  of this Agreement will not enter into, any agreement with any other Person relating to each of  the Distribution Account, the Revenue Reserve Account, the Restricted Cash Account, or any  Financial Assets credited thereto pursuant to which it has agreed to comply with Entitlement  Orders of such other Person and the Securities Intermediary has not entered into, and until the  termination of this Agreement will not enter into, any agreement with the Borrower, the Seller,  the Manager or the Collateral Agent purporting to limit or condition the obligation of the  Securities Intermediary to comply with Entitlement Orders as set forth in Section 303(c) hereof.  (g) Except for the claims and interest of the Collateral Agent and of the  Borrower hereunder in each of the Distribution Account, the Revenue Reserve Account and the  Restricted Cash Account, to the best of its knowledge without independent investigation, the  Securities Intermediary knows of no claim to, or interest in, any of the Distribution Account, the  Revenue Reserve Account, the Restricted Cash Account, or in any Financial Asset credited  thereto. If any other Person asserts any Lien, encumbrance or adverse claim (including any writ,  garnishment, judgment, warrant of attachment, execution or similar process) against any of the  Distribution Account, the Revenue Reserve Account, the Restricted Cash Account, or in any  Financial Asset credited thereto, the Securities Intermediary will promptly notify the Collateral  Agent, the Manager, each Hedge Counterparty and the Borrower thereof.  (h) The Collateral Agent shall possess a perfected security interest in all right,  title and interest in and to all funds on deposit from time to time in each of the Distribution  Account, the Revenue Reserve Account, the Restricted Cash Account, and in all Proceeds  thereof. Each of the Distribution Account, the Revenue Reserve Account and the Restricted Cash  Account shall be in the name of the Borrower subject to a securities account control agreement  providing that such account shall be under the sole dominion and control of the Collateral Agent  (subject to the terms and conditions thereof), for the benefit of the Secured Parties. The Collateral  Agent shall make withdrawals and payments from each of the Distribution Account, the Revenue  

 

  65    Reserve Account and the Restricted Cash Account and apply such amounts in accordance with  the provisions of the Manager Report and, in the absence of any Manager Report, in accordance  with written instructions from the Administrative Agent.  (i) The Borrower and the Manager, on behalf of the Borrower, shall not direct  the Collateral Agent to make any investment of any funds or to sell any investment held in any  of the Distribution Account, the Revenue Reserve Account or the Restricted Cash Account  unless the security interest of the Collateral Agent in such account and any funds or investments  held therein shall continue to be perfected without any further action by any Person.  (j) Wilmington Trust, National Association (including in its capacity as  Securities Intermediary) hereby agrees that any security interest it may have in the Distribution  Account, the Revenue Reserve Account and the Restricted Cash Account or any Security  Entitlement credited thereto shall be subordinate to the security interest created by this  Agreement. The Financial Assets and other items deposited to the Distribution Account, the  Revenue Reserve Account and the Restricted Cash Account will not be subject to deduction, set- off, banker’s lien, or any other right in favor of any Person except as created pursuant to this  Agreement.  For the sake of clarity, the fees and expenses of the Collateral Agent shall be payable  solely pursuant to Section 302 or 806 of this Agreement and will not be subject to deduction,  set-off, bankers lien or other right of the Collateral Agent.  Section 304 Reports to Lender.  The Collateral Agent shall promptly upon the receipt  thereof, make available to each Lender, the Administrative Agent, and each Hedge Counterparty,  a copy of all reports, financial statements and notices received by the Collateral Agent pursuant to  the Contribution and Sale Agreement, this Agreement, the Management Agreement and the  Intercreditor Collateral Agreement, by posting copies thereof on such password-protected website  as shall be specified by the Collateral Agent from time to time in writing to each Lender, the  Administrative Agent and each Hedge Counterparty; provided, however, the Collateral Agent shall  have no obligation to provide such information described in this Section 304 until it has received  the requisite information from the applicable party.  The Collateral Agent will make no  representation or warranties as to the accuracy or completeness of such documents and will assume  no responsibility therefor.  In connection with providing access to the Collateral Agent’s website,  the Collateral Agent may require registration and the acceptance of a disclaimer.  The Collateral  Agent shall not be liable for the dissemination of information in accordance with the terms of this  Agreement.  Section 305 Records.  The Collateral Agent shall cause to be kept and maintained  customary records pertaining to the Distribution Account, the Revenue Reserve Account and the  Restricted Cash Account and all receipts and disbursements therefrom. The Collateral Agent shall  deliver monthly an accounting thereof in the form of a trust statement to the Borrower, the Seller,  the Administrative Agent and the Manager, and each Hedge Counterparty.  Section 306 Restricted Cash Account.   (a) The Borrower has established, and shall maintain so long as any  Outstanding Obligation remains unpaid, an Eligible Account in the name of the Borrower with  the Collateral Agent which shall be designated as the Restricted Cash Account, which account  

 

  66    shall be held by the Collateral Agent for the benefit of the Secured Parties pursuant to the terms  of this Agreement.  On the Closing Date, the Borrower will ensure that the amount on deposit in  the Restricted Cash Account is at least equal to the initial Restricted Cash Amount.  Thereafter  funds will be deposited in the Restricted Cash Account in accordance with Section 302 hereof  or from other funds otherwise available to the Borrower. The Restricted Cash Account shall only  be relocated to another financial institution in accordance with the express provisions of Section  303(d) hereof. Any and all monies on deposit in the Restricted Cash Account shall be invested  in Eligible Investments in accordance with this Agreement and shall be distributed in accordance  with this Section 306.  (b) On each Determination Date, the Collateral Agent shall, in accordance  with the Manager Report (or, in the absence of any Manager Report, in accordance with written  instructions from the Administrative Agent delivered in accordance with the terms of this  Agreement), withdraw from the Restricted Cash Account on or prior to such Determination Date  an amount equal to the Deficiency Amount.  Amounts withdrawn from the Restricted Cash  Account pursuant to the provisions of this Section 306(b) may only be used to pay amounts  specified in the definition of “Permitted Payment Date Withdrawals”.      (c) On each Payment Date, the Collateral Agent shall, in accordance with the  Manager Report (or, in the absence of any Manager Report, in accordance with written  instructions from the Administrative Agent delivered in accordance with the terms of this  Agreement), deposit in the Distribution Account for distribution in accordance with the terms of  this Agreement the excess, if any, of (A) the amounts then on deposit in the Restricted Cash  Account (after giving effect to any withdrawals therefrom on such Payment Date) over (B) an  amount equal to the Restricted Cash Amount for such Payment Date. On the Final Maturity Date,  any remaining funds in the Restricted Cash Account shall be deposited in the Distribution  Account and distributed in accordance with Section 302 of this Agreement.  Section 307 Revenue Reserve Account.   (a) The Borrower has established, and shall maintain so long as any  Outstanding Obligation remains unpaid, an Eligible Account in the name of the Borrower with  the Collateral Agent which shall be designated as the Revenue Reserve Account, which account  shall be held by the Collateral Agent for the benefit of the Secured Parties pursuant to the terms  of this Agreement.  Any and all monies on deposit in the Revenue Reserve Account shall be  invested in Eligible Investments in accordance with this Agreement and shall be distributed in  accordance with this Section 307.  (b) On the Closing Date, the Borrower shall, in respect of Containers acquired  by the Borrower without associated accrued rentals, deposit into the Revenue Reserve Account  cash in an amount equal to the Borrower’s estimate of the revenue to be accrued on the acquired  Containers during the three immediately succeeding months. The Borrower shall have the right,  but not the obligation, to make deposits into the Revenue Reserve Account on any other Transfer  Date on which Containers are acquired by the Borrower without accrued rentals. On each of the  first three Determination Dates following each such deposit, the Collateral Agent will, in  accordance with the Manager Report (or, in the absence of any Manager Report, in accordance  with written instructions from the Majority Lenders), withdraw from the Revenue Reserve  

 

  67    Account and deposit in the Distribution Account funds in an amount equal to one third of the  amount of the corresponding deposit into the Revenue Reserve Account.  Section 308 No Claim.  Indemnities payable to the Collateral Agent, the Manager, the  Independent Director Provider and the Administrative Agent shall be non-recourse to the Borrower  and shall not constitute a claim (as defined in Section 101(5) of the Bankruptcy Code) against the  Borrower or the Collateral in the event such amounts are not paid in accordance with Section 302  or 806 of this Agreement.  Section 309 Compliance with Withholding Requirements.  Notwithstanding any other  provision of this Agreement, the Borrower and Collateral Agent shall comply with all United  States federal income tax withholding requirements (without any corresponding gross-up) with  respect to payments to Lenders of interest or other amounts that the Borrower or the Collateral  Agent reasonably believes are subject to withholding under the Code or other Applicable Law.  The consent of Lender shall not be required for any such withholding.  ARTICLE IV    COLLATERAL  Section 401 Collateral.    (a) The Loans and all other Outstanding Obligations shall be obligations of  the Borrower as provided in Article II hereof. The Collateral Agent, on behalf of the Secured  Parties, shall also have the benefit of, and the Outstanding Obligations shall be secured by and  be payable from, the Borrower’s right, title and interest in the Collateral. The income, payments  and proceeds of such Collateral shall be allocated to each such Person strictly in accordance with  the applicable payment priorities set forth in Section 302 or Section 806 hereof.  (b) Notwithstanding anything contained in this Agreement to the contrary, the  Borrower expressly agrees that it (or the Manager on its behalf) shall remain liable under each  of its Contracts and Leases to observe and perform all the conditions and obligations to be  observed and performed by it thereunder and that it shall perform all of its duties and obligations  thereunder, all in accordance with and pursuant to the terms and provisions of each such Contract  or Lease, as the case may be.  (c) The Collateral Agent hereby acknowledges the appointment by the  Borrower of the Manager to service and administer the Managed Containers, the Leases of such  Managed Containers (to the extent related to the Managed Containers) and certain other items  of the Collateral, each in accordance with the provisions of the Management Agreement and the  Intercreditor Collateral Agreement.  So long as the Management Agreement shall not have been  terminated in accordance with its terms, the Collateral Agent hereby agrees to provide the  Manager with such documentation, and to take all such actions with respect to the Collateral as  the Manager may reasonably request in accordance with the express provisions of the  Management Agreement and the Intercreditor Collateral Agreement; provided, however, that the  Collateral Agent shall be entitled to receive from the Manager reasonable compensation and cost  reimbursement for any such action. Until such time as a Managed Container has become a  

 

  68    Terminated Managed Container following a Manager Default, the Manager, on behalf of the  Borrower, shall continue to collect all Accounts and payments on the Leases of those Managed  Containers that have not become a Terminated Managed Container in accordance with the  provisions of the Management Agreement and the Intercreditor Collateral Agreement and  deposit such amounts into a Collection Account in accordance with the provisions of the  Management Agreement and the Intercreditor Collateral Agreement. Any Proceeds received  directly by the Borrower in payment of any Account or Leases with respect to, or in payment for  or in respect of, any of the Managed Containers or on account of any of the Contracts to which  the Borrower is a party shall be promptly deposited by the Borrower in precisely the form  received (with all necessary endorsements) in the Collection Account in accordance with the  provisions of the Management Agreement and the Intercreditor Collateral Agreement, and until  so deposited shall be deemed to be held in trust by the Borrower for the Collateral Agent and  shall continue to be collateral security for all of the obligations secured by this Agreement and  shall not constitute payment thereof until applied as hereinafter provided. If (i) an Event of  Default has occurred, (ii) any Sale of the Collateral pursuant to Section 815 hereof shall have  occurred or (iii) a Manager Default has occurred, the Borrower shall at the request of the  Collateral Agent, acting with the consent of or at the direction of the Majority Lenders, to the  extent practicable, deliver to the Collateral Agent (or such other Person as the Collateral Agent  may direct) originals (or, to the extent originals cannot be delivered, copies) of all Leases and  other documents evidencing, and relating to, the sale, lease and delivery of such Managed  Containers and the Borrower shall, to the extent practicable, deliver originals (or, to the extent  originals cannot be delivered, copies) of all other documents evidencing and relating to, the  performance of any labor, maintenance, remarketing or other service which created any  Accounts, including, without limitation, all original orders, invoices and shipping receipts.  Section 402 Reserved  Section 403 Collateral Agent’s Appointment as Attorney-in-Fact.  (a) The Borrower hereby irrevocably constitutes and appoints the Collateral  Agent, and any officer or agent thereof, with full power of substitution, as its true and lawful  attorney-in-fact with full irrevocable power and authority in the place and stead of the Borrower  and in the name of the Borrower or in its own name, from time to time, for the purpose of carrying  out the terms of this Agreement, to take any and all appropriate action and to execute and deliver  any and all documents and instruments which may be necessary or desirable to accomplish the  purposes of this Agreement; provided, however, that the Collateral Agent has no obligation or  duty to take such action or to determine whether to perfect, file, record or maintain any perfected,  filed or recorded document or instrument (all of which the Borrower shall prepare, deliver and  instruct the Collateral Agent to execute, if applicable) in connection with the grant or security  interest in the Collateral hereunder.  (b) The Collateral Agent shall not exercise the power of attorney or any rights  granted to the Collateral Agent pursuant to this Section 403 unless an Event of Default shall have  occurred and then be continuing. The Borrower hereby ratifies, to the extent permitted by law,  all actions that said attorney shall lawfully do, or cause to be done, by virtue hereof. The power  of attorney granted pursuant to this Section 403 is a power coupled with an interest and shall be  irrevocable until the Loans have been paid in full.  

 

  69    (c) The powers conferred on the Collateral Agent hereunder are solely to  protect the Collateral Agent’s interests in the Collateral and shall not impose any duty upon it to  exercise any such powers except as set forth herein. The Collateral Agent shall be accountable  only for amounts that it actually receives as a result of the exercise of such powers and neither it  nor any of its officers, directors, employees, agents or representatives shall be responsible to the  Borrower for any act or failure to act, except for its own negligence or willful misconduct.  (d) The Borrower also authorizes (but does not obligate) the Collateral Agent  to (i) so long as a Manager Default is continuing and a Manager Termination Notice has been  delivered in accordance with the terms of the Management Agreement, communicate in its own  name, or to direct any other Person, including the Manager or a replacement Manager, to  communicate with any party to any Contract or Lease relating to a Managed Container that has  become a Terminated Managed Container and (ii) so long as an Event of Default is continuing,  and a Manager Termination Notice has been delivered in accordance with the terms of the  Management Agreement, execute in connection with the sale of Collateral provided for in Article  VIII hereof, any endorsements, assignments or other instruments of conveyance or transfer with  respect to the Collateral.  (e) If the Borrower fails to perform or comply with any of its agreements  contained herein and a Responsible Officer of the Collateral Agent shall receive notice of such  failure, the Collateral Agent, with the consent of the Majority Lenders, shall cause performance  or compliance, or acting at the direction of the Majority Lenders shall perform or comply, with  such agreement; provided, however, that the Collateral Agent shall have no obligation to so  perform or comply if it has reasonable grounds to believe that payment of its expenses and  interest thereon (as set forth in the following sentence) is not reasonably assured. The reasonable  and documented expenses, including reasonable and documented attorneys’ fees and expenses,  of the Collateral Agent incurred in connection with such performance or compliance, shall be  payable by the Borrower to the Collateral Agent on demand and shall constitute additional  Outstanding Obligations secured hereby and shall be paid in accordance with the provisions of  Section 302 or Section 806 hereof.  Section 404 Release of Security Interest.    Any Managed Container and any Related Assets sold, transferred or otherwise disposed of  by the Borrower in accordance with Section 606(a) of this Agreement shall be deemed to be  automatically released from the lien and security interest of this Agreement without any action  being taken by the Collateral Agent upon receipt by the Borrower of the related price for such  Managed Container.  In connection with any such release, the Collateral Agent shall provide any  documents and instruments (including, but not limited to, UCC termination filings) as the  Borrower or the Manager may reasonably request to evidence the termination and release from the  Lien of this Agreement of such Managed Container and the Related Assets. In providing such  evidence, the Collateral Agent may conclusively and exclusively rely on a written direction of the  Manager identifying each Managed Container or other items released from the Lien of this  Agreement in accordance with the provisions of this Section 404 accompanied by an Asset Base  Certificate and the form of evidence requested, properly completed and execution ready. In  addition, if an Early Amortization Event is then continuing, in connection with such release, the  

 

  70    Manager shall provide the Collateral Agent (with a copy to the Administrative Agent) a certificate  stating that such release is in compliance with Sections 404 and 606(a) hereof.  Section 405 Administration of Collateral.    (a) The Collateral Agent shall as promptly as practicable notify the Lenders,  each Hedge Counterparty and the Administrative Agent of any Manager Default of which a  Responsible Officer has actual knowledge. The Collateral Agent, at the written direction of the  Majority Lenders, shall deliver to the Manager (with a copy to the Administrative Agent and  each Hedge Counterparty) a Manager Termination Notice terminating the Manager of its  responsibilities in accordance with the terms of the Management Agreement.  In accordance with  the terms of this Agreement, the Administrative Agent (acting at the direction of the Majority  Lenders) shall seek to appoint a replacement Manager acceptable to the Majority Lenders with  respect to the Terminated Managed Containers as such terminations occur.  If the Administrative  Agent is unable to locate and qualify a replacement Manager acceptable to the Majority Lenders  within sixty (60) days after the date of delivery of the Manager Termination Notice, then the  Collateral Agent may (and shall, upon the direction of the Majority Lenders) appoint, or petition  a court of competent jurisdiction to appoint, a company acceptable to the Majority Lenders,  having a net worth of not less than $5,000,000 and whose regular business includes equipment  leasing or servicing, as the successor to the Manager of all or any part of the responsibilities,  duties or liabilities of the Manager under the Management Agreement and the other Transaction  Documents to which it is a party.  In no event shall either the Collateral Agent or the  Administrative Agent be required to act as Manager.  The Manager shall continue to fulfill its  duties and responsibilities as Manager with respect to those Managed Containers that are not  Terminated Managed Containers in accordance with the terms of the Management Agreement  and the Intercreditor Collateral Agreement. The replaced Manager shall not be entitled to receive  any compensation for any period after the effective date of such replacement, but shall be entitled  to receive compensation for services rendered through the effective date of such replacement  except to the extent that it is unable to fulfill such duties pending the appointment of a  replacement Manager.  If the Manager is unable to fulfill such duties pending the appointment  of a replacement Manager, the Administrative Agent shall take such actions, which it is  reasonably capable of performing and as the Majority Lenders shall direct to aid in the transition  of the Manager; provided, however, that no provisions of this Agreement shall require the  Administrative Agent to expend or risk its own funds or otherwise incur any financial liability  in the performance of its duties hereunder, or in the exercise of any of its rights, powers or duties,  if the Administrative Agent shall have reasonable grounds for believing that timely repayment  in full of such funds or adequate security or indemnity against such risk or liability is not  reasonably assured after taking into account the reimbursement provisions set forth in Section  302 or Section 806, as applicable. All reimbursements to the Administrative Agent shall (unless  the Majority Lenders have otherwise agreed in writing to indemnify the Administrative Agent)  be payable on the immediately succeeding Payment Date pursuant to the provisions of Section  302 or Section 806, as applicable, hereof. Each Lender, the Collateral Agent, and each Hedge  Counterparty shall, by accepting the benefits of this Agreement, be deemed to have agreed that  the duties of the Administrative Agent are not to be construed as those of a replacement Manager.   In connection with the appointment of a replacement Manager, the Collateral Agent or  Administrative Agent may, with the written consent of the Majority Lenders, make such  arrangements for the compensation of such replacement Manager out of Collections as the  

 

  71    Collateral Agent and the Majority Lenders and such replacement Manager shall agree; provided,  however, that no such revised compensation shall be in excess of the Management Fees  permitted the Manager under the Management Agreement and the arrangement for  reimbursement of expenses shall be no more favorable than that set forth in the Management  Agreement unless the Majority Lenders shall approve such higher amounts; provided, further,  that in no event shall any of the Collateral Agent, any Hedge Counterparty or the Administrative  Agent be liable to any replacement Manager for the Management Fees or any additional amounts  (including expenses and indemnifications) payable to such replacement Manager, either pursuant  to the Management Agreement or otherwise. The Collateral Agent and such successor shall take  such action, consistent with the Management Agreement, as shall be necessary to effectuate any  such succession including exercising the power of attorney granted by the Manager pursuant to  Section 9.4 of the Management Agreement.  (b) If a Manager Termination Notice has been delivered in accordance with  the terms of the Management Agreement, the Collateral Agent may and shall, if directed in  writing by the Majority Lenders, after first notifying the Borrower of its intention to do so, notify  Account Debtors of the Borrower (and the Borrower hereby agrees to provide the Collateral  Agent all commercially reasonable information to identify and locate such Account Debtors),  parties to the Contracts of the Borrower, obligors in respect of Instruments of the Borrower and  obligors in respect of Chattel Paper of the Borrower that the Accounts and the right, title and  interest of the Borrower in and under such Contracts, Instruments, and Chattel Paper (to the  extent related to the Managed Containers) have been pledged to Collateral Agent and that  payments shall be made directly to the Collateral Agent or the Distribution Account.  Upon the  request of the Majority Lenders, the Borrower shall, or shall direct Manager to, so notify such  Account Debtors, parties to such Contracts, obligors in respect of such Instruments and obligors  in respect of such Chattel Paper.    (c) Upon a Responsible Officer of the Collateral Agent obtaining actual  knowledge or the actual receipt of written notice that any repurchase obligations of the Seller  under Section 3.03 of the Contribution and Sale Agreement have arisen, the Collateral Agent  shall notify each Hedge Counterparty and the Administrative Agent of such event and shall  enforce such repurchase obligations at the written direction of the Majority Lenders.  (d) Neither the Collateral Agent nor the Administrative Agent shall have any  obligation to take any of the actions specified in Section 405(a), Section 405(b) or Section 405(c)  unless the Collateral Agent and/or the Administrative Agent (as applicable) shall have security  or indemnity reasonably satisfactory to it against the costs and expenses which may be incurred  by the Collateral Agent and/or the Administrative Agent (as applicable) in taking such actions.  Section 406 Quiet Enjoyment.  The security interest hereby granted by the Borrower to  the Collateral Agent, on behalf of the Secured Parties, is subject to the right of any lessee to the  quiet enjoyment of the related Managed Container so long as such lessee is not in default under  the Lease therefor.  Section 407 Rights of Lenders.  The Lenders shall have the right to receive, to the extent  necessary to make the required payments with respect to the Loans at the times and in the amounts  

 

  72    specified herein, funds on deposit in the Distribution Account (subject to the priorities set forth in  Sections 302 and 806 hereof), the Revenue Reserve Account and the Restricted Cash Account.  ARTICLE V    REPRESENTATIONS AND WARRANTIES  Section 501 Representations and Warranties.  The Borrower hereby represents and  warrants to the Lenders and the Collateral Agent as of the Closing Date and each Funding Date  that:  (a) Existence.  The Borrower is a limited liability company duly organized,  validly existing and in compliance under the laws of Delaware.  The Borrower is in good standing  and is duly qualified to do business in each jurisdiction where the failure to do so would  reasonably be expected to have a material adverse effect upon the Borrower, and has all licenses,  permits, charters and registrations the failure to hold which would reasonably be expected to  have a material adverse effect on the Borrower.  (b) Authorization.  The Borrower has the power and is duly authorized to  execute and deliver this Agreement and the other Transaction Documents to which it is a party;  the Borrower is and will continue to be duly authorized to borrow monies under this Agreement  and the other Transaction Documents; and the Borrower is and will continue to be authorized to  perform its obligations under this Agreement and the other Transaction Documents.  The  execution, delivery and performance by the Borrower of this Agreement and the other  Transaction Documents to which it is a party and the Loans hereunder does not and will not  require any consent or approval of any Governmental Authority, stockholder or any other Person  which has not already been obtained.  (c) No Conflict; Legal Compliance.  The execution, delivery and  performance of this Agreement and each of the other Transaction Documents will not: (a)  contravene any provision of Borrower’s limited liability company agreement or other  organizational documents; (b) contravene, conflict with or violate any applicable law or  regulation, or any order, writ, judgment, injunction, decree, determination or award of any  Governmental Authority; or (c) violate or result in the breach of, or constitute a default under  this Agreement, the other Transaction Documents, any indenture or other loan or credit  agreement, or other agreement or instrument to which the Borrower is a party or by which  Borrower, or its property and assets may be bound or affected.  The Borrower is not in violation  or breach of or default under any law, rule, regulation, order, writ, judgment, injunction, decree,  determination or award or any contract, agreement, lease, license, indenture or other instrument  to which it is a party, in each case, in a manner that would reasonably be expected to result in a  Material Adverse Change.  (d) Validity and Binding Effect.  This Agreement is, and each other  Transaction Document to which the Borrower is a party, when duly executed and delivered, will  be, legal, valid and binding obligations of the Borrower, enforceable against the Borrower in  accordance with their respective terms, except as enforceability may be limited by bankruptcy,  

 

  73    insolvency or other similar laws of general application affecting the enforcement of creditors’  rights or by general principles of equity limiting the availability of equitable remedies.  (e) Material Adverse Change.  Since its date of formation, there has been no  Material Adverse Change in the financial condition of the Borrower.  (f) Registered Organization.  The legal name of the Borrower as reflected on  its certificate of formation is “TIF Funding LLC”.  The Borrower is a registered organization  that is organized under the laws of the State of Delaware and has not been previously and is not  now organized under the laws of any other jurisdiction.   (g) No Agreement or Contracts.  The Borrower is not now and has not been  a party to any contract or agreement (whether written or oral) other than the Transaction  Documents.  (h) Consents and Approvals.  No approval, authorization or consent of any  trustee or holder of any Indebtedness or obligation of the Borrower or of any other Person under  any agreement, contract, lease or license or similar document or instrument to which the  Borrower is a party or by which Borrower is bound, is required to be obtained by the Borrower  in order to make or consummate the transactions contemplated under the Transaction  Documents, except for those approvals, authorizations and consents that have been obtained on  or prior to the Closing Date or which the failure to obtain would not reasonably be expected to  result in a Material Adverse Change.  All consents and approvals of, filings and registrations  with, and other actions in respect of, all Governmental Authorities required to be obtained by  Borrower in order to make or consummate the transactions contemplated under the Transaction  Documents have been, or prior to the time when required will have been, obtained, given, filed  or taken and are or will be in full force and effect other than any such consents, approvals, filings  or registrations the failure to so obtain or make would not reasonably be expected to result in a  Material Adverse Change.  (i) Margin Regulations.  The Borrower does not own any “margin security”,  as that term is defined in Regulation U of the Federal Reserve Board, and the proceeds of the  Loans funded hereunder will be used only for the purposes contemplated hereunder.  None of  such proceeds will be used, directly or indirectly, for the purpose of purchasing or carrying any  margin security, for the purpose of reducing or retiring any indebtedness which was originally  incurred to purchase or carry any margin security or for any other purpose which might cause  the Loans under this Agreement to be considered a “purpose credit” within the meaning of  Regulations T, U and X.  The Borrower will not take or permit any agent acting on its behalf to  take any action which might cause this Agreement or any document or instrument delivered by  the Borrower pursuant hereto to violate any regulation of the Federal Reserve Board.  (j) Taxes.  All federal, state, local and foreign tax returns, reports and  statements required to be filed by the Borrower have been filed with the appropriate  Governmental Authorities, and all Taxes, Other Taxes and other impositions shown thereon to  be due and payable by the Borrower have been paid prior to the date on which any fine, penalty,  interest or late charge may be added thereto for nonpayment thereof, or any such fine, penalty,  interest, late charge or loss has been paid, or the Borrower is contesting its liability therefor in  

 

  74    good faith and has fully reserved all such amounts according to GAAP in the financial statements  provided pursuant to Section 625 of this Agreement.  The Borrower has paid when due and  payable all charges upon the books of the Borrower and no Governmental Authority has asserted  any Lien against the Borrower with respect to unpaid Taxes or Other Taxes.  Proper and accurate  amounts have been withheld by the Borrower from its employees for all periods in full and  complete compliance with the tax, social security and unemployment withholding provisions of  applicable federal, state, local and foreign law and such withholdings have been timely paid to  the respective Governmental Authorities.  (k) Investment Company Act of 1940.  The Borrower is not, and is not  controlled by, an “investment company” registered, or required to be registered, under the  Investment Company Act.  The Borrower will be relying on an exemption or exclusion from the  definition of “investment company” under the Investment Company Act contained in  Section 3(a)(1), although there may be additional exemptions or exclusions available to the  Borrower.  The Borrower is not relying on the exemptions set forth in Section 3(c)(1) or  Section 3(c)(7) of the Investment Company Act.  The Borrower is structured so as not to  constitute a “covered fund” for purposes of the Volcker Rule under the Dodd-Frank Act.  (l) Solvency and Separateness.   (i) The capital of the Borrower is adequate for the business and  undertakings of the Borrower.  (ii) Other than with respect to the transactions contemplated by the  Transaction Documents, the Borrower is not engaged in any business transactions  with the Manager except as permitted by the Management Agreement or with the  Seller except as permitted by the Contribution and Sale Agreement.  (iii) At all times, at least one (1) member of the board of directors of the  Borrower shall qualify as an Independent Manager (as defined in the Borrower’s  limited liability company agreement).  (iv) The Borrower’s funds and assets are not, and will not be,  commingled with those of the Manager, except as permitted by the Management  Agreement.  (v) The Borrower shall maintain (A) correct and complete books and  records of account, and (B) minutes of the meetings and other proceedings of its  board of managers.  (vi) The Borrower is not insolvent under the Insolvency Law and will  not be rendered insolvent by the transactions contemplated by the Transaction  Documents and after giving effect to such transactions, the Borrower will not be  left with an unreasonably small amount of capital with which to engage in its  business nor will the Borrower have intended to incur, or believe that it has  incurred, debts beyond its ability to pay such debts as they mature.  The Borrower  does not contemplate the commencement of insolvency, bankruptcy, liquidation or  

 

  75    consolidation proceedings or the appointment of a receiver, liquidator, trustee or  similar official in respect of the Borrower or any of its assets.   (m) No Event of Default or Early Amortization Event.  No Event of Default  or Early Amortization Event has occurred and is continuing hereunder.  No event or condition  that with notice or the passage of time (or both) could reasonably be expected to constitute an  Event of Default or Early Amortization Event has occurred or is continuing.  (n) Litigation and Contingent Liabilities.  No claims, litigation, arbitration  proceedings or governmental proceedings by any Governmental Authority are pending or  threatened against or are affecting Borrower the results of which will materially and adversely  interfere with the consummation of any of the transactions contemplated by this Agreement or  any document issued or delivered in connection therewith or herewith.  (o) Title; Liens.  The Borrower has good, legal and marketable title to each  of its respective assets, and none of such assets is subject to any Lien, except for Permitted  Encumbrances and the Liens created or permitted pursuant to this Agreement.  (p) Subsidiaries.  The Borrower has no Subsidiaries.  (q) No Partnership.  The Borrower is not a partner or joint venturer in any  partnership or joint venture.  (r) Pension and Welfare Plans.  During the twelve-consecutive-month period  prior to the date of the execution and delivery of this Agreement, no steps have been taken to  terminate any Plan, and no contribution failure has occurred with respect to any Plan, sufficient  to give rise to a lien under section 303(k) of ERISA.  No condition exists or event or transaction  has occurred with respect to any Plan which could result in the Borrower or any ERISA Affiliate  of the Borrower incurring any material liability, fine or penalty.  As of the Closing Date, the  Borrower is not a Benefit Plan Investor.  (s) Ownership of the Borrower.  All of the issued and outstanding  membership interests of the Borrower are owned by Triton International Finance LLC.  (t) Security Interest Representations.  (i) This Agreement creates a valid and continuing security interest (as  defined in the UCC) in the Collateral in favor of the Collateral Agent, for the benefit  of the Secured Parties, which security interest is prior to all other Liens, and is  enforceable as such as against creditors of and purchasers from the Borrower.  (ii) The Containers constitute “goods” within the meaning of the  applicable UCC.  The Leases constitute “tangible chattel paper” within the meaning  of the UCC.  The lease receivables constitute “accounts” or “proceeds” of the  Leases with the meaning of the UCC.  The Distribution Account, the Revenue  Reserve Account and the Restricted Cash Account constitute “securities accounts”  within the meaning of the UCC.  The Borrower’s contractual rights under any  

 

  76    Hedge Agreements, the Contribution and Sale Agreement and the Management  Agreement constitute “general intangibles” within the meaning of the UCC.  (iii) The Borrower owns and has good and marketable title to the  Collateral, free and clear of any Lien (whether senior, junior or pari passu), claim  or encumbrance of any Person, except for Permitted Encumbrances.  (iv) The Borrower has caused or shall on the Closing Date cause the  filing of all appropriate financing statements or documents of similar import in the  proper filing office in the appropriate jurisdictions under Applicable Law in order  to perfect the security interest in the Collateral granted to the Collateral Agent in  this Agreement.  (v) Other than the security interest granted to the Collateral Agent  pursuant to this Agreement, the Borrower has not pledged, assigned, sold, granted  a security interest in, or otherwise conveyed any of the Collateral, except as  permitted pursuant to this Agreement.  The Borrower has not authorized the filing  of, and is not aware of, any financing statements against the Borrower that include  a description of collateral covering the Collateral other than any financing statement  or document of similar import (i) relating to the security interest granted to the  Collateral Agent in this Agreement or (ii) that has been terminated.  The Borrower  has no actual knowledge of any judgment or tax lien filings against the Borrower.  (vi) Pursuant to Section 3.3.5 of the Management Agreement, the  Manager has acknowledged that it is holding the Leases, to the extent they relate to  the Managed Containers on behalf of, and for the benefit of, the Collateral Agent,  for the benefit of the Secured Parties. The Seller has caused or shall on the Closing  Date cause the filing of all appropriate financing statements or documents of similar  import in the proper filing office in the appropriate jurisdictions under Applicable  Law in order to perfect the ownership interest of the Borrower (and the Collateral  Agent as its assignee) in the Leases (to the extent that such Leases relate to the  Managed Containers) arising under the Contribution and Sale Agreement.   (vii) The Borrower has received all necessary consents and approvals  required by the terms of the Collateral to the pledge to the Collateral Agent of its  interest and rights in such Collateral hereunder or under this Agreement.  (viii) Wilmington Trust, National Association (in its capacity as  Securities Intermediary) has identified in its records the Collateral Agent as the  Person having a Security Entitlement in each of the Distribution Account, the  Revenue Reserve Account and the Restricted Cash Account.  (ix) Each of the Distribution Account, the Revenue Reserve Account and  the Restricted Cash Account is not in the name of any Person other than the  Borrower.  The Borrower has not consented for Wilmington Trust, National  Association (as the securities intermediary of the Distribution Account, the  Revenue Reserve Account and the Restricted Cash Account) to comply with  

 

  77    Entitlement Orders with respect to such account of any Person other than the  Collateral Agent.  (x) No creditor of the Borrower (other than (x) with respect to the  Managed Containers, the related lessee and (y) the Manager in its capacity as  Manager under the Management Agreement) has in its possession any goods that  constitute or evidence the Collateral, other than for purposes of repair,  refurbishment, painting, positioning, storage and other similar matters with respect  to Managed Containers.  The representations and warranties set forth in this clause (t) shall survive until this Agreement is  terminated in accordance with its terms hereof.  Any breaches of the representations and warranties  set forth in this clause (t) may be waived by the Collateral Agent, only with the prior written  consent of the Majority Lenders.  (u) Tax Election of the Borrower.  None of the Borrower, any of its members  or any other Person has elected, or agreed to elect, to treat the Borrower as an association taxable  as a corporation for United States federal income tax purposes.  (v) Information.  No information, exhibit, financial statement, document,  book, record or report furnished or to be furnished by it to the Administrative Agent or a Lender  in writing (i) is or will be inaccurate in any material respect as of the date it is or shall be dated  or (except as otherwise disclosed to the recipient thereof at the time of delivery or thereafter) as  of the date so furnished and (ii) no such document contains or will contain any material  misstatement of fact or omits or shall omit to state a material fact necessary to make the  statements contained therein not misleading in light of the statements made therein, in each case  as of the date it is or shall be dated or (except as otherwise disclosed to the recipient thereof at  the time of delivery or thereafter) as of the date so furnished.  (w) Sanctions.  The Borrower (i) is not a Sanctioned Person, (ii) is not  controlled by, and is not acting on behalf of, a Sanctioned Person, (iii) is not, to its knowledge,  under investigation for an alleged breach of Sanction(s) by any Sanctions Authority, (iv) will not  use the proceeds of the Loans for the purpose of providing financing to, or otherwise making  funds directly or indirectly available to, any Sanctioned Person, or providing financing to or  otherwise funding any transaction which would be prohibited by any applicable Sanction or, to  the knowledge of the Borrower, would otherwise cause the Collateral Agent, any Lender or any  party to this Agreement to be in breach of any applicable Sanction, (v) will not fund any  repayment of the Loans with proceeds derived from any transaction that would be prohibited by  applicable Sanctions or, to the knowledge of the Borrower, would otherwise cause the Collateral  Agent, any Lender or any party to this Agreement to be in breach of any applicable Sanction,  and (vi) will notify the Collateral Agent and the Administrative Agent in writing not more than  five (5) Business Days after becoming aware of any breach of this clause (w).  (x) Anti-Corruption Laws and Anti-Money Laundering Laws.  The  operations of the Borrower are and have been conducted at all times in material compliance with  all Anti-Corruption Laws applicable to it as well as financial recordkeeping and reporting  requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended.  The  

 

  78    Borrower (or its limited liability company manager on its behalf) (i) has instituted, maintains  and is in compliance with policies, procedures and controls reasonably designed to comply with  all Anti-Corruption Laws and Anti-Money Laundering Laws applicable to it and is currently  complying with, and will at all times comply with, all such Anti-Corruption Laws and Anti- Money Laundering Laws applicable to it, and (ii) is not and has not been, to its knowledge, under  administrative, civil or criminal investigation or received written notice from or made a voluntary  disclosure to any governmental entity regarding a possible violation by it of any Anti-Corruption  Laws or Anti-Money Laundering Laws applicable to it.  The Borrower will not fund any  repayment of the Loans in violation of any Anti-Corruption Laws or Anti-Money Laundering  Laws applicable to it.  No part of the proceeds of the Loans will be used by the Borrower, any  Subsidiary of the Borrower or any Affiliate of the Borrower, in violation of any Anti-Corruption  Laws or Anti-Money Laundering Laws applicable to it.  (y) Intercreditor Collateral Agreement. Attached hereto as Exhibit G is a true,  correct and complete copy of the Intercreditor Collateral Agreement in effect as of the Closing  Date.    (z) Liquidity Coverage Ratio Matters.  The Borrower:  (1) has not issued any debt obligations other than the Loans issued or to be  issued pursuant to this Agreement;   (2) does not and will not during the term of this Agreement issue after the  Closing Date (x) any other debt obligations, or (y) securities other than  equity interests issued to Triton International Finance LLC under the terms  of the limited liability company agreement of the Borrower; or    (3) the assets and liabilities of the Borrower are consolidated with the assets  and liabilities of Triton International Finance LLC for purposes of generally  accepted accounting principles.  Section 502 Survival of Representations and Warranties.  So long as any Loan is  Outstanding and until payment and performance in full of the Outstanding Obligations, the  representations and warranties contained herein shall have a continuing effect as having been true  when made.  ARTICLE VI    COVENANTS  For so long as any Outstanding Obligations have not been paid or performed, the Borrower  shall observe each of the following covenants:  Section 601 Payment of Principal and Interest; Payment of Taxes.    (a) The Borrower will duly and punctually pay the principal of, and interest,  on the Loans in accordance with this Agreement.  

 

  79    (b) The Borrower will take all actions as are necessary to insure that all taxes,  assessments and governmental levies that are payable by the Borrower are paid when due except  (i) such as are contested in good faith and by appropriate proceedings and (ii) if the failure to  make such payment is not adverse in any material respect to the Lenders and does not give rise  to any Liens other than Permitted Encumbrances.   Section 602 Maintenance of Office.  The Borrower shall not establish a new place of  business or location for its chief executive office or change its jurisdiction of formation unless (i)  the Borrower shall provide each of the Collateral Agent, the Administrative Agent and each Hedge  Counterparty not less than thirty (30) days’ prior written notice of its intention so to do, clearly  describing such new location and providing such other information in connection therewith as the  Collateral Agent, the Administrative Agent, or each Hedge Counterparty may reasonably request,  (ii) not less than fifteen (15) days prior to the effective date of such relocation, the Borrower shall  have taken, at its own cost, all action necessary so that such change of location does not impair the  security interest of the Collateral Agent in the Collateral, or the perfection of the sale or  contribution of the Containers to the Borrower, and shall have delivered to the Collateral Agent,  the Administrative Agent and each Hedge Counterparty copies of all filings required in connection  therewith and (iii) the Borrower has delivered to the Collateral Agent, the Administrative Agent  and each Hedge Counterparty, an Opinion of Counsel satisfactory to the Collateral Agent (acting  at the direction of the Majority Lenders), stating that, after giving effect to such change of location,  either (1) in the opinion of such counsel, all registration of charges, financing statements, or other  documents of similar import, and amendments thereto have been executed (if applicable) and filed  that are necessary to perfect the interest of the Borrower and the Collateral Agent in the Transferred  Assets, or (2) stating that, in the opinion of such counsel, no such action shall be necessary to  perfect such interest.  Section 603 Corporate Existence.  The Borrower will keep in full effect its existence,  rights and franchises as a limited liability company organized under the laws of the State of  Delaware, and will obtain and preserve its qualification in each jurisdiction in which such  qualification is necessary to protect the validity and enforceability of this Agreement, except where  the failure to obtain or preserve such qualification is not reasonably expected to result in a Material  Adverse Change.  Section 604 Protection of Collateral.  The Borrower will from time to time execute (if  applicable) and deliver all financing statements, all amendments thereto and continuation  statements, instruments of further assurance and other instruments, and will, upon the reasonable  request of the Manager, the Administrative Agent, or any Hedge Counterparty, take such other  action necessary or advisable to:  (a) maintain or preserve the Lien of this Agreement (and the priority thereof)  including executing and filing such documents as may be required under any international  convention for the perfection of interests in Managed Containers that may be adopted subsequent  to the date of this Agreement;  (b) perfect, publish notice of, and protect the validity of the security interest  in the Collateral created pursuant to this Agreement;  

 

  80    (c) enforce any of the items of the Collateral;  (d) preserve and defend its right, title and interest to the Collateral and the  rights of the Collateral Agent in such Collateral against the claims of all Persons (other than the  Lenders); and  (e) pay any and all taxes levied or assessed upon all or any part of the  Collateral, except such as are contested in good faith and by appropriate proceedings or where  the failure to effect such payment is not adverse in any material respect to the Lenders.  In furtherance of clauses (b) and (c) above, the Borrower hereby agrees that if at any time  subsequent to a Closing Date there is a change in Applicable Law (or a change in the interpretation  of Applicable Law as in effect on such Closing Date) which, in the reasonable judgment of the  Majority Lenders, may affect the perfection of the Collateral Agent’s security interest in the  Collateral, then the Borrower shall, within thirty (30) days after request from the Majority Lenders,  furnish to the Collateral Agent and the Administrative Agent, an Opinion of Counsel either (i)  stating that, in the opinion of such counsel, such action has been taken with respect to the recording,  filing, recording and refiling of this Agreement, and any other requisite documents, and with  respect to the filing of any financing statements and continuation statements, as are necessary to  maintain the Lien created by this Agreement and reciting the details of such action, or (ii) stating  that, in the opinion of such counsel, no such action is necessary to maintain such Lien. Such  Opinion of Counsel shall also describe the recording, filing, re-recording and refiling of this  Agreement, and any other requisite documents and the execution and filing of any financing  statements and continuation statements that, in the opinion of such counsel, are required to  maintain the lien and security interest of this Agreement.  Section 605 Performance of Obligations.  (a) Except as otherwise permitted by this Agreement, the Management  Agreement or the Contribution and Sale Agreement, the Borrower will not take, or fail to take,  any action, and will use its best efforts not to permit any action to be taken by others, which  would release any Person from any of such Person’s covenants or obligations under any  agreement or instrument included in the Collateral, or which would result in the amendment,  hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness  of, any such agreement or instrument; provided that, nothing in this Agreement shall prohibit the  Borrower, or the Manager on the Borrower’s behalf in accordance with the Servicing Standard,  from renegotiating, amending or consenting to waivers to Leases in accordance with the terms  of the Management Agreement.  (b) Nothing in this Agreement shall be construed as requiring the consent of  the Collateral Agent or any Lender for the exercise by any Hedge Counterparty of its rights to  (i) terminate the related Hedge Agreement in accordance with its terms in the event of any event  of default or termination event (however defined) under such Hedge Agreement, (ii) undertake  any permitted transfer under any Hedge Agreement, or (iii) reduce the notional amount in  accordance with the terms of any Hedge Agreement in the event of a notional reduction event  (however defined).  

 

  81    Section 606 Negative Covenants.  The Borrower will not, without the prior written  consent of the Majority Lenders:  (a) at any time sell, transfer, exchange or otherwise dispose of any of the  Collateral, except as follows:  (i) in connection with a sale, conveyance or transfer pursuant to the  provisions of Section 612 or Section 815 hereof; or  (ii) in connection with a substitution or repurchase of Managed  Containers as permitted or required in accordance with the terms of the  Contribution and Sale Agreement; or  (iii) sales of Managed Containers (including any such sales resulting  from the sell/repair decision of the Manager) to unaffiliated third parties that are  not Sanctioned Persons, and to the extent that such sales are on terms and conditions  that would be obtained in an ordinary course, arms-length transaction, to Affiliates  regardless of the Sales Proceeds realized from such sales so long as an Asset Base  Deficiency is not then continuing or would result from such sale of Managed  Containers after giving effect to the application of the proceeds of such sales;  provided, however, that (x) after giving effect to each such sale, the Borrower shall  be in compliance with Section 628 hereof and (y) if an Early Amortization Event  (including the existence of an Asset Base Deficiency) has occurred and is  continuing or would result from any such sale (after giving effect to the application  of the proceeds thereof), no such sale may be made to an Affiliate under this clause  (iii) unless the net proceeds from such sale are greater than or equal to the Adjusted  Net Book Value of the Managed Containers being sold; or   (iv) if an Asset Base Deficiency is then continuing or would result from  such sale of Managed Containers after giving effect to the application of the  proceeds of such sales, sales of Managed Containers (including any such sales  resulting from the sell/repair decision of the Manager), regardless of the Sales  Proceeds realized from such sales so long as (A) no Event of Default is then  continuing or would result from such sale, (B) any sales to Affiliates made pursuant  to this clause (iv) are made on terms and conditions that would be obtained in an  ordinary course, arms-length transaction and the net proceeds from any such sale  are greater than or equal to the Adjusted Net Book Value of the Managed  Containers being sold, (C) after giving effect to each such sale, the Borrower shall  be in compliance with Section 628 hereof and (D) the aggregate sum of the Net  Book Values of all Managed Containers that were sold pursuant to this clause (iv)  during the applicable Collection Period and the three (3) immediately preceding  Collection Periods for proceeds which are less than the Adjusted Net Book Value  of the Managed Containers so sold does not exceed an amount equal to the product  of (x) five percent (5%) times (y) an amount equal to a quotient (A) the numerator  of which is equal to the sum of the aggregate Net Book Value of all Managed  Containers as of the last day of each of the four (4) immediately preceding  Collection Periods and (B) the denominator of which is equal to four (4); or  

 

  82    (v) any other sales of Managed Containers to Persons that are not  Sanctioned Persons which are not covered by the preceding clauses provided that  each such sale shall be specifically approved by (A) the Majority Lenders and (B)  the Manager on behalf of the Borrower; or   (vi) in connection with a Casualty Loss.  Notwithstanding the foregoing limitations of this Section 606(a), the Borrower may sell  Managed Containers to the Seller (or its designated Affiliate) in order to permit the Borrower to  refinance Indebtedness in an amount of at least Twenty Five Million Dollars ($25,000,000)  incurred by the Borrower pursuant to this Agreement on no more than twelve (12) occasions in  any calendar year subject to satisfaction of all of the following conditions:   (A) no Event of Default, Early Amortization Event or Asset Base Deficiency is  then continuing or would result from such sale, after giving effect to such  sale and any required prepayment of the Loans;  (B) the Sales Proceeds received by the Borrower from such sale is an amount in  cash that is not less than the greater of (i) the sum of the Fair Market Values  of the sold Managed Containers, and (ii) the sum of the Net Book Value of  the sold Managed Containers; provided, however, that if the Conversion  Date has not occurred, without limiting or modifying the conditions in  clause (A) above, the Sale Proceeds for such sale of Managed Containers  may, at the option of the Borrower, be paid by the Seller (or such designated  Affiliate) as follows:  (x) cash in an amount not less than the product of (A) the  Advance Rate and (B) the sum of the Net Book Values of the sold Managed  Containers; and  (y) an unsecured obligation of the Seller (or its designated  Affiliate) payable in cash on the next succeeding Payment Date in an  amount equal to the excess of (i) the Sales Proceeds payable pursuant to  clause (B) above over (ii) the cash paid pursuant to clause (x) above.  If no  Early Amortization Event, Manager Default or Asset Base Deficiency is  continuing on such Payment Date, such unsecured obligation of the Seller  (or its designated Affiliate) will be distributed on such Payment Date by the  Borrower to the Seller (or its designated Affiliate) as a deemed distribution.  The Borrower may, without limiting or modifying the conditions in clause (A) above,  utilize the cash proceeds of such sale of Managed Containers to make a prepayment of the Loans  on the date of such sale notwithstanding any contrary provisions contained in this Agreement,  including, without limitation, in the definition of the term “Available Distribution Amount”, or  any advance prepayment notice required under Section 301(o).   Notwithstanding anything to the contrary, during the continuation of an Early Amortization  Event, the Borrower shall not sell all, or substantially all, of the Managed Containers without the  consent of the Majority Lenders and each Hedge Counterparty if an Asset Base Deficiency shall  

 

  83    have occurred and be continuing or would result from such proposed sale after giving effect to the  application of the proceeds of such sales.  Notwithstanding the foregoing limitations of this Section 606(a), no consent of any Lender  shall be required to terminate a Hedge Agreement.  Nothing in the preceding sentence shall  eliminate any rights, duties, or obligations of any Person under Section 628.  (b) claim any credit on, make any deduction from the principal, premium, if  any, or interest payable in respect of the Loans (other than amounts properly withheld from such  payments under any Applicable Law) or assert any claim against any present or former Lender  by reason of the payment of any taxes levied or assessed upon any of the Collateral; or  (c) release any item from the Collateral, except as permitted pursuant to the  terms of a Transaction Document.  Section 607 Corporate Separateness of the Borrower.  (a) The Borrower shall (1) conduct its business in its own name, (2) maintain  its books and records separate from those of any other Person, (3) not commingle its funds with  any other Person (except for any commingling of Collections which may occur prior to the  identification and segregation of such amounts in accordance with the terms of the Management  Agreement and Intercreditor Collateral Agreement) and maintain its bank accounts separate from  those of any other Person, (4) maintain separate financial statements, showing its assets and  liabilities separate and apart from those of any other Person, (5) hold itself out as a separate entity  and (6) observe all other organizational formalities.  (b) Notwithstanding any provision of law which otherwise empowers the  Borrower, the Borrower shall not (1) hold itself out as being liable for the debts of any other  Person, (2) act other than in its limited liability company name and through its duly authorized  officers, managers or agents, (3) enter into any transaction described in Section 610 (except  pursuant to this Agreement) other than trade payables and expense accruals incurred in the  ordinary course of its business, or (4) engage in any other activity not contemplated by this  Agreement or other Transaction Documents.   Section 608 No Bankruptcy Petition.  The Borrower shall not (1) commence any  Insolvency Proceeding seeking to have an order for relief entered with respect to it, or seeking  reorganization, arrangement, adjustment, wind-up, liquidation, dissolution, composition or other  relief with respect to it or its debts, (2) seek appointment of a receiver, trustee, custodian or other  similar official for it or any part of its assets, (3) make a general assignment for the benefit of  creditors, or (4) take any action in furtherance of, or consenting or acquiescing in, any of the  foregoing.  Section 609 Liens.  The Borrower shall not (i) permit any Lien (except any Permitted  Encumbrance) to be created on or extend to or otherwise arise upon or burden the Collateral or  any part thereof or any interest therein or the Proceeds thereof, or (ii) permit the Lien of this  Agreement not to constitute a valid first priority perfected security interest in the Collateral to the  extent that such Lien can be perfected pursuant to Applicable Law.  

 

  84    Section 610 Other Debt.  The Borrower shall not contract for, create, incur, assume or  suffer to exist any Indebtedness of the Borrower other than (i) the Loans made pursuant to this  Agreement, (ii) any Management Fee, Manager Advances and all other amounts payable pursuant  to the provisions of the Management Agreement, (iii) any obligation (including a deferred  purchase price note and any normal warranty) arising in connection with a purchase or sale of  Containers permitted by the Transaction Documents (as in effect as of the date hereof and as  amended, restated or otherwise modified after the date hereof in accordance with the terms  thereof), but only to the extent of the time limit contemplated by clause (x) of the definition of  “Permitted Encumbrances”, (iv) any Indebtedness (including any Hedge Agreement) that is  permitted or required pursuant to the terms of any Transaction Document, and (v) trade payables  and expense accruals incurred in the ordinary course and which are incidental to the purposes  permitted pursuant to the Borrower’s organizational documents.  Section 611 Guarantees, Loans, Advances and Other Liabilities.  Except for investments  in Eligible Investments, the Borrower will not make any loan, advance or credit to, or guarantee  (directly or indirectly or by an instrument having the effect of assuring another’s payment or  performance on any obligation or capability of so doing, or otherwise), endorse (except for the  endorsement of checks for collection or deposit) or otherwise become contingently liable, directly  or indirectly, in connection with the obligations, stock or dividends of, or own, purchase,  repurchase or acquire (or agree contingently to do so) any stock, obligations or securities of, or  any other interest in, or make any capital contribution to, any other Person.    Section 612 Consolidation, Merger and Sale of Assets.    (a) The Borrower shall not consolidate with or merge with, or into, any other  Person or sell, convey, transfer or lease all or substantially all of its assets, whether in a single  transaction or a series of transactions, to any Person except for (i) any such sale, conveyance or  transfer contemplated in this Agreement or the Management Agreement and (ii) the leasing or  sale of the Managed Containers in accordance with the terms of the Management Agreement.  (b) The obligations of the Borrower hereunder shall not be assignable nor  shall any Person succeed to the obligations of the Borrower hereunder except in each case in  accordance with the provisions of this Agreement.  Section 613 Other Agreements; Amendment of Transaction Documents.    (a) The Borrower will not after the Closing Date enter into, or become a party  to, any agreements or instruments other than the Transaction Documents and any other  agreement(s) contemplated by the terms of the Transaction Documents, including, without  limitation, (i) any agreement(s) for disposition of the Transferred Assets permitted by Sections  606, 804 or 815 hereof and (ii) any agreement(s) for the sale, repurchase, lease or re-lease of a  Managed Container made in accordance with the provisions of the Contribution and Sale  Agreement and the Management Agreement.  (b) The Borrower will not amend, modify or waive any provision of any  Transaction Document, or give any approval or consent or permission provided for therein,  except in accordance with the express terms of such Transaction Document.  

 

  85    Section 614 Organizational Documents.  The Borrower will not amend or modify (a) its  certificate of formation or (b) Section 4.1, 4.2, 8.3, 8.4, 16.1, 16.2, 16.3 or 16.10 of its limited  liability company agreement without the prior written consent of the Majority Lenders.    Section 615 Capital Expenditures.  The Borrower will not make any expenditure (by  long term or operating lease or otherwise) for capital assets (both realty and personalty), except  for (a) acquisition of additional Managed Containers from the Seller in accordance with the terms  of the Contribution and Sale Agreement and (b) capital improvements to the Managed Containers  made in the ordinary course of its business and in accordance with the terms of the Management  Agreement.  Section 616 Permitted Activities; Compliance with Organizational Documents.  The  Borrower will not engage in any activity or enter into any transaction except for those activities  that are specified in its organizational documents or that are contemplated by a Transaction  Document. The Borrower will observe all organizational and managerial procedures required by  its organizational documents and Applicable Law. The Borrower shall (i) keep complete minutes  of the meetings of the managers and/or members of the Borrower and (ii) continuously maintain  the resolutions, agreements and other instruments underlying the transaction contemplated by the  Transaction Documents.  Section 617 Investment Company Act.  The Borrower will conduct its operations in a  manner which will not subject it to registration as an “investment company” under the Investment  Company Act of 1940, as amended.  Section 618 Payments of Collateral.  If the Borrower shall receive from any Person any  payments with respect to the Collateral (to the extent such Collateral has not been released from  the Lien of this Agreement), the Borrower shall receive such payment in trust for the Collateral  Agent, on behalf of the Secured Parties, and subject to the Collateral Agent’s security interest and  shall deposit such payment in the Distribution Account as required under this Agreement.  Section 619 Notices.  The Borrower shall notify the Collateral Agent and each Secured  Party in writing of any of the following promptly, but in any event within seven (7) Business Days  upon an Authorized Officer of the Borrower learning of the occurrence thereof, describing the  same and, if applicable, the steps being taken by the Person(s) affected with respect thereto:  (a) Default.  The occurrence of an Event of Default;  (b) Litigation.  The institution of any litigation, arbitration proceeding or  Proceeding before any Governmental Authority which reasonably will be expected to result in a  Material Adverse Change;  (c) Material Adverse Change.  The occurrence of a Material Adverse Change;  (d) Sanctions.  Any violation, or investigation of a violation by the Borrower  of Sanctions; or  

 

  86    (e) Other Events.  The occurrence of an Early Amortization Event or such  other events that would, with the giving of notice or the passage of time or both, constitute an  Event of Default or an Early Amortization Event.  Section 620 Books and Records.  The Borrower shall maintain complete and accurate  books and records in which full and correct entries in conformity with GAAP shall be made of all  dealings and transactions in relation to its business and activities. In connection with each transfer  of Transferred Assets to the Borrower, the Borrower shall report, or cause to be reported, on its  financial records the transfer of the Transferred Assets as a purchase or capital contribution (if  applicable) under GAAP. The Borrower will ensure that the notes accompanying any consolidated  financial statements issued by Triton Holdco (or issued by any Subsidiary of Triton Holdco, whose  consolidated financial statements then include the accounts of the Borrower) note disclose that  special purpose subsidiaries of Triton Holdco (or such Subsidiary) have been established to obtain  securitized financing.  Section 621 Subsidiaries.  The Borrower shall not create any Subsidiaries.  Section 622 Investments.  The Borrower shall not make or permit to exist any  Investment in any Person except for Investments in Eligible Investments made in accordance with  the terms of this Agreement.  Section 623 Use of Proceeds.    (a) The Borrower shall use the proceeds of the Loans only for (i) the purchase  of Containers and Related Assets and to pay on the related Transfer Date any  Manufacturer Debt  in respect of such acquired Containers and (ii) other general company purposes including the  distribution of dividends, repayment of debt and paying costs relating to obtaining the Loans and  any other purposes contemplated by Section 302. The Borrower shall not, directly or, to its  knowledge, indirectly, use the proceeds of the Loans, or lend, contribute or otherwise make  available such proceeds to any Person for use, in any manner that would result in a violation of  applicable Sanctions.  (b) The Borrower shall not permit any proceeds of the Loans to be used, either  directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of “purchasing  or carrying any margin stock” within the meaning of Regulation U of the Board of Governors of  the Federal Reserve System, as amended from time to time, and shall furnish to each Lender,  upon its request, a statement in conformity with the requirements of Regulation U.  Section 624 Asset Base Certificate.  The Borrower shall prepare and deliver to the  Collateral Agent and the Administrative Agent on or before each Determination Date, an Asset  Base Certificate as of the end of the immediately preceding fiscal month of the Borrower.  Section 625 Financial Statements.  (a) The Borrower shall deliver to the Collateral Agent the following financial  statements prepared in accordance with GAAP (subject to the limitations set forth below):  (a)  the quarterly financial statements of the Borrower within sixty (60) days after the end of each  fiscal quarter; (b) annual unaudited financial statements of the Borrower within one hundred and  

 

  87    twenty (120) days after the end of each fiscal year; (c) annual audited consolidated financial  statements of Triton Holdco and its Consolidated Subsidiaries  together with the report of its  Independent Accountants (solely to the extent not filed or to be filed with the Securities and  Exchange Commission) within one hundred fifty (150) days after the end of each fiscal year ;  (d) within one hundred fifty (150) days after the end of each fiscal year of Triton Holdco, a report  addressed to the manager of the Borrower, to the effect that such firm of accountants has audited  the books and records of Triton Holdco, and issued its report in connection with the audit report  on the consolidated financial statements of Triton Holdco and specifying the results of the  application of such agreed upon procedures, as the Administrative Agent shall reasonably agree  from time to time, relating to the objectives specified on Exhibit D to the Management  Agreement; and (e) within sixty (60) days after the close of the first three fiscal quarters in each  fiscal year of Triton Holdco (to the extent not publicly filed), the consolidated balance sheet of  Triton Holdco and its Consolidated Subsidiaries as at the end of such fiscal quarter, the related  consolidated statements of income for such fiscal quarter and cash flows for the elapsed portion  of the fiscal year ended with the last day of such fiscal quarter.  All such financial statements  shall be prepared in accordance with GAAP, subject to, in the case of unaudited financial  statements, the absence of footnotes, and in the case of the quarterly financial statements, the  absence of year-end adjustments.  (b) [Reserved]  (c) Delivery of any reports, information and documents to the Collateral  Agent is for informational purposes only and the Collateral Agent’s receipt of such (including  monthly distribution reports) and any publicly available information shall not constitute actual  or constructive notice or knowledge of any information contained therein or determinable from  information contained therein, including the Borrower’s compliance with any of its covenants  hereunder (as to which the Collateral Agent is entitled to rely exclusively on Officer’s  Certificates).  In the event such independent public accountants require the Collateral Agent to  agree to the procedures to be performed by such firm in any of the reports required to be prepared  pursuant to this Section 625 the Borrower or the Administrative Agent shall direct the Collateral  Agent in writing to so agree; it being understood and agreed that the Collateral Agent will deliver  such letter of agreement in conclusive reliance upon the direction of the Borrower or the  Administrative Agent, as the case may be, and the Collateral Agent has not made any  independent inquiry or investigation as to, and shall have no obligation or liability in respect of,  the sufficiency, validity or correctness of such procedures.  Section 626 UNIDROIT Convention.  The Borrower shall comply with the terms and  provisions of the UNIDROIT Convention or any other internationally recognized system for  recording interests in or liens against shipping containers at the time that such convention is  adopted.  Section 627 Insurance.  The Borrower shall maintain (or cause to be maintained on its  behalf), for the benefit of itself and the Collateral Agent, insurance with respect to the Managed  Containers with such coverage and in such manner as is consistent with the requirements set forth  in Section 3.9 of the Management Agreement.  

 

  88    Section 628 Interest Rate Hedging Requirement.   (a) On or before the Hedge Effective Date, the Borrower will enter into, and  maintain one or more Interest Rate Hedge Agreements that meet the following requirements (the  “Hedging Requirement”): (i) the aggregate notional balance of all such Interest Rate Hedge  Agreements will equal or exceed seventy-five percent (75%) of the then Required Hedge Base  Amount, (ii) the aggregate notional balance of all outstanding Interest Rate Hedge Agreements  (other than interest rate cap agreements) will be less than or equal to one hundred five percent  (105%) of the then Required Hedge Base Amount, and (iii) all such outstanding Interest Rate  Hedge Agreements shall terminate no earlier than (1) if the Hedge Effective Date occurs sixty  (60) days or more prior to the Scheduled Commitment Expiration Date, the Conversion Date,  (2) if the Scheduled Commitment Expiration Date has not been extended for a minimum of one  year by the sixtieth (60th) day prior to the then existing Scheduled Commitment Expiration Date  then in effect, the Final Maturity Date and (3) as of any other date of determination not covered  in clause (1) or (2), the Final Maturity Date.  If the Borrower elects to satisfy all or a portion of  the Hedging Requirement through the purchase of interest rate caps, the strike rate on such  interest rate caps shall not exceed an interest rate per annum equal to the higher of (i) five and  one half percent (5.50%) and (ii) an interest rate per annum equal to the sum of (x) one and one  quarter percent (1.25%) and (y) the duration equivalent swap rate at the date on which such  interest rate cap is purchased.  (b) If the Borrower, or the Manager, on behalf of the Borrower, fails to  comply with the Hedging Requirement, the Majority Lenders shall have the right, in their sole  discretion and at the expense of the Borrower, upon thirty (30) days’ notice, if necessary (as  determined in the sole discretion of the Majority Lenders), to direct the Borrower, to enter into,  maintain or terminate (in whole or in part), one or more Interest Rate Hedge Agreements selected  by the Majority Lenders (in their sole discretion) such that, after giving effect to such action, the  Borrower will be in compliance with the Hedging Requirement. In the event the Majority  Lenders determine to direct the Borrower to enter into, maintain or terminate (in whole or in  part) an Interest Rate Hedge Agreement, the Majority Lenders may provide the Collateral Agent  and Manager on behalf of the Borrower with a written direction to deposit in the Distribution  Account certain amounts to reimburse the Majority Lenders or a third party for the costs of such  Interest Rate Hedge Agreement.  For the avoidance of doubt, a failure by the Borrower to comply  with the Hedging Requirement shall not be deemed a breach of this Section 628 if remedied by  the Borrower within thirty (30) days; provided, that, if such failure is not remedied within such  thirty-day period, to the extent it is deemed a breach, such breach will be deemed to have  occurred as of the start of such period and will not be entitled to the initial thirty-day cure period  that would otherwise be available under Section 801(5)(a), but will be entitled to the additional  thirty-day cure period set forth in the proviso thereto.  (c) All payments received from all such Interest Rate Hedge Agreements  shall be deposited directly into the Distribution Account.  (d) Upon written direction from the Borrower, the Collateral Agent will  establish a separate segregated trust account for each separate Interest Rate Hedge Counterparty  in the name of the Collateral Agent (each a “Counterparty Collateral Account”). So long as no  Event of Default has occurred and is then continuing, investment earnings on amounts held in  

 

  89    the Counterparty Collateral Account shall be remitted to the applicable Interest Rate Hedge  Provider upon written request of the Manager on behalf of the Borrower in accordance with the  terms of the applicable Interest Rate Hedge Agreement.  The Collateral Agent shall, upon  direction, deposit all collateral received from an Interest Rate Hedge Provider under an Interest  Rate Hedge Agreement in the related Counterparty Collateral Account. The only permitted  withdrawal from, or application of funds on deposit in, a Counterparty Collateral Account shall  be, upon written direction of the Manager on behalf of the Borrower, (i) for application to  obligations of the applicable Interest Rate Hedge Provider to the Borrower under its Interest Rate  Hedge Agreement if such Interest Rate Hedge Agreement becomes subject to early termination,  or (ii) so long as no Event of Default has occurred and is then continuing, to return collateral or  investment earnings to such Interest Rate Hedge Counterparty when and as required by such  Interest Rate Hedge Agreement. Investments of funds on deposit in the Counterparty Collateral  Account shall be invested in accordance with Section 303 hereunder. To the extent the Collateral  Agent receives conflicting instructions from the Borrower or the Manager on behalf of the  Borrower, the Collateral Agent shall take direction from the Borrower.  Section 629 Reserved.  Section 630 Sanctions.  The Borrower shall not in a manner which would violate any  Sanction applicable to it (i) lease, or consent to any sublease of, any of the Managed Containers to  any Person that is a Sanctioned Person or (ii) derive any of its assets or operating income from  investments in or transactions with any such Sanctioned Person.  If the Borrower obtains  knowledge that a Managed Container is subleased to a Sanctioned Person or located or used in a  Sanctioned Country in a manner which would violate any applicable Sanction by the Borrower,  then the Borrower shall, as soon as reasonably practicable after obtaining knowledge thereof,  remove such Managed Container from the Asset Base for so long as such condition continues.  Section 631 Tax Election of the Borrower.  The Borrower will not elect or agree to elect  to be treated as an association taxable as a corporation for United States federal income tax or any  State income or franchise tax purposes.  Section 632 Reserved.  Section 633 Compliance with Law.  The Borrower shall comply with any applicable  statute, license, rule or regulation by which it or any of its properties may be bound if the failure  to comply would reasonably be expected to result in a Material Adverse Change.  Section 634 Lender Tax Identification Information.  Each Lender shall provide the  Borrower and the Collateral Agent with such Lender Tax Identification Information as requested  from time to time by the Borrower or the Collateral Agent.  Each Lender will be deemed to  understand that each of the Borrower and the Collateral Agent has the right to (i) withhold tax  (including without limitation FATCA Withholding Tax) on interest and other applicable amounts  under the Code (without any corresponding gross-up) payable with respect to each Lender that  fails to comply with the foregoing requirements or as otherwise required under the Code or other  Applicable Law (including, for the avoidance of doubt, FATCA) and (ii) provide such information  and documentation and any other information concerning its interest in the applicable Loans to the  IRS and any other relevant U.S. or foreign tax authority. The parties agree that the Collateral Agent  

 

  90    shall be released of any liability relating to its actions and compliance under this Section 634 and  FATCA, except in the case of its negligence or willful misconduct. Notwithstanding any other  provisions herein, the term “Applicable Law” for purposes of this Section 634 includes U.S.  federal tax law and FATCA.  Upon request from the Collateral Agent, the Borrower will provide  such additional information that it may have to assist the Collateral Agent in making any  withholdings or informational reports.  Section 635 Amendment of Intercreditor Collateral Agreement.  Without the prior  written consent of the Majority Lenders, the Borrower shall not consent to any amendment,  modification or revision to the Intercreditor Collateral Agreement except for any supplement  thereto needed to designate an additional “Triton Entity” and/or “Triton Secured Creditor”, as each  such term is defined in the Intercreditor Collateral Agreement.  Section 636 Inspection.  (a) Upon reasonable request, the Borrower agrees that it shall make available  to any representative of each of the Collateral Agent, the Administrative Agent, the Lenders and  any Hedge Counterparty and their duly authorized representatives, attorneys or accountants, for  inspection and copying its books of account, records and reports relating to the Managed  Containers and copies of all Leases or other documents relating thereto at the times and in  accordance with the provisions of the Management Agreement.  Any expense incident to the  reasonable exercise by the Collateral Agent, the Administrative Agent, any Hedge Counterparty  or the Lenders of any right under this Section (except for one annual inspection at the expense  of the Borrower) shall be borne by the Person exercising such right unless an Early Amortization  Event, Manager Default or Event of Default shall have occurred and then be continuing in which  case such expenses shall be borne by the Borrower.  (b) The Borrower also agrees to make available on a reasonable basis to each  of the Collateral Agent, the Administrative Agent, each Lender and each Hedge Counterparty a  Managing Officer for the purpose of answering reasonable questions respecting recent  developments affecting the Borrower.  (c) Each of the Administrative Agent and the Lenders agree to maintain the  confidentiality of the Information (as defined below), except that Information may be disclosed  (a) to its Affiliates and to its Related Parties (it being understood that the Persons to whom such  disclosure is made will be informed of the confidential nature of such Information and instructed  to keep such Information confidential); (b) to the extent required or requested by any regulatory  authority purporting to have jurisdiction over such Person or its Related Parties (including any  self-regulatory authority, such as the National Association of Insurance Commissioners); (c) to  the extent required by Applicable Law or by any subpoena or similar legal process; (d) to any  other party hereto; (e) in connection with the exercise of any remedies hereunder or under any  other Transaction Document or any action or proceeding relating to this Agreement or any other  Transaction Document or the enforcement of rights hereunder or thereunder; (f) subject to an  agreement containing provisions substantially the same as those of this Section, to (i) any  assignee of or participant in, or any prospective assignee of or Participant in, any rights and  obligations under this Agreement, or (ii) any actual or prospective party (or its related parties) to  any swap, derivative or other transaction under which payments are to be made by reference to  

 

  91    the Borrower and its obligations, this Agreement or payments hereunder, (g) to (1) any rating  agency in connection with a rating of the Borrower, the Loans issued pursuant to this Agreement,  the transaction described in the Transaction Documents or the commercial paper issued by, or  on behalf of, a Conduit Lender, (2) the CUSIP Service Bureau or any similar agency in  connection with the issuance and monitoring of the CUSIP numbers with respect to this  Agreement with respect to any Conduit Lender or (3) any dealers and investors in the commercial  paper issued by, or on behalf of, a Conduit Lender; (h) with the consent of the Borrower; or (i)  the extent such Information (x) becomes publicly available other than as a result of a breach of  this Section, or (y) becomes available to the Administrative Agent, any Lender or any of their  respective Affiliates on a nonconfidential basis from a source other than the Borrower. In  addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement  and information about this Agreement to market date collectors, similar service providers to the  lending industry and service providers to the Agents and the Lenders in connection with the  administration of this Agreement, the other Transaction Documents, and the Commitments.  For purposes of this Section, "Information" means all information received from  the Borrower relating to the Borrower or its businesses, other than any such information that is  available to the Administrative Agent or any Lender on a non-confidential basis prior to disclosure  by the Borrower after the date hereof, and such information is clearly identified at the time of  delivery as confidential. Any Person required to maintain the confidentiality of Information as  provided in this Section shall be considered to have complied with its obligation to do so if such  Person has exercised the same degree of care to maintain the confidentiality of such Information  as such Person would accord to its own confidential information.  (d) The Borrower acknowledges that from time to time financial advisory,  investment banking and other services may be offered or provided to the Borrower or one or  more of its Affiliates (in connection with this Agreement or otherwise) by any Lender or by one  or more Subsidiaries or Affiliates of such Lender and the Borrower hereby authorizes each  Lender to share any information delivered to such Lender by the Borrower pursuant to this  Agreement with any such Subsidiary or Affiliate of the Lender subject to the provisions of clause  (c).  Section 637 [Reserved.]  Section 638 Cooperation Regarding Rating of the Loans.  At the request of a Lender, the  Borrower agrees to use commercially reasonable efforts to, and to cause its Affiliates to, take such  actions, and furnish such documents, as any Lender may reasonably request in connection with  obtaining, and thereafter maintaining, a rating of the Loans from a nationally recognized  statistically rating agency (each, a "Rating Agency"); provided, however, that nothing contained  in this Section 638 shall require the Borrower to (i) amend or otherwise alter the economic terms  of the Loans (e.g., interest rate and/or principal amortization) or any Event of Default or Early  Amortization Event, or (ii) incur out-of-pocket expenses in connection with obtaining a rating of  the Loans from a Rating Agency unless a Lender directs the Borrower to undertake such  engagement and such Lender agrees to reimburse the Borrower and its Affiliates for all expenses  relating to the engagement of such Rating Agency.  

 

  92    ARTICLE VII    DISCHARGE OF AGREEMENT; PREPAYMENTS  Section 701 Full Discharge.  Upon payment in full of all Outstanding Obligations, the  Collateral Agent shall execute and deliver to the Borrower such deeds or other instruments as shall  be required to evidence the satisfaction and discharge of this Agreement and the security created  by this Agreement, and to release the Borrower from its covenants contained in this Agreement.   In connection with the satisfaction and discharge of this Agreement, the Collateral Agent shall be  provided with, and shall be entitled to conclusively rely upon, an Opinion of Counsel stating that  all conditions precedent specified in the Agreement to such satisfaction and discharge have been  satisfied.  Section 702 Prepayment of Loans.  (a) Mandatory Prepayments.  On each Payment Date, the Borrower shall be  required to prepay all, or a portion of, the Aggregate Loan Principal Balance, and all amounts  due under the related Hedge Agreements (including any termination payments), in the amount  of any Supplemental Principal Payment Amount that may exist on such Payment Date,  determined after giving effect to the acquisition by the Borrower of additional Eligible  Containers, which amounts shall be paid in accordance with the priority of payments set forth in  Section 302 hereof. The calculations referred to herein shall be evidenced by the Asset Base  Certificate received by the Administrative Agent on the related Determination Date.       (b) Optional Prepayments.  The Borrower may, from time to time, make an  optional Prepayment of principal of the Loans pursuant to Section 301(o) of this Agreement.   (c) Adjustment of Prospective Scheduled Principal Payment Amounts.  In the  event that the Borrower on or after the Conversion Date makes an optional Prepayment of  principal of the Loans pursuant to Section 301(o) of this Agreement, then the Borrower (or the  Manager on its behalf) shall promptly (but in any event within five (5) Business Days after the  date on which such Prepayment is made) thereafter recalculate the Scheduled Principal Payment  Amount for each future Payment Date occurring on or after the Conversion Date such that, after  giving effect to such adjustment, the Scheduled Principal Payment Amounts for all subsequent  Payment Dates shall be reduced by a percentage equal to the quotient of (i) the aggregate amount  of the Prepayment actually received by the Lenders in respect of the Loans, divided by (ii) the  Aggregate Loan Principal Balance immediately prior to such prepayment.  ARTICLE VIII    DEFAULT PROVISIONS AND REMEDIES  Section 801 Event of Default.  “Event of Default” means any one of the following events  (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or  be effected by operation of law or pursuant to any judgment, decree or order of any court or any  order, rule or regulation of any Governmental Authority):  

 

  93    (1) the occurrence of the events set forth in clause (A), clause (B) or clause (C)  at the times set forth therein;  (A) default in (x) the payment on any Payment Date of any interest payment  then due and payable on the Loans and the continuation of such default for  more than five (5) Business Days, or (y) the payment on the Final Maturity  Date (or earlier date of each acceleration) of the then unpaid Aggregate  Loan Principal Balance and any other amounts owing to the Lenders; or  (B) default in the payment of: (x) any Collateral Agent Fees due and payable on  a Payment Date (and subject to annual dollar limitation) or (y) scheduled  payments payable by the Borrower (other than termination payments,  indemnification payments, tax payments, or other similar amounts) under  one or more Hedge Agreements, and the continuation of such default  contemplated by clause (x) or clause (y) of this clause (B) for more than  five (5) Business Days after the amounts in such clause (x) or clause (y)  shall have become due and payable in accordance with the terms of this  Agreement;  (C) default in the payment of other amounts not dealt with in clauses (A) or (B)  above that are then due and owing to the Lenders in respect of the Loans  and the continuation of such default for more than thirty (30) days after the  same shall have become due and payable in accordance with the terms of  such this Agreement;  (2) default in the observation or performance of any covenant of the Borrower  set forth in Sections 608, 612 or 621 hereof which breach materially and  adversely affects the interest of any Lender;  (3) the occurrence of the events set forth in clause (A) or (B) at the times set  forth therein:  (A) default in the observation or performance of any covenant of the Borrower  set forth in Sections 606, 607, 609, 610, 611, 613(a), 616 or 622 hereof  which breach materially and adversely affects the interest of any Lender,  and, if curable, continues unremedied for fifteen (15) days after the earlier  of the date (x) on which there has been given to the Borrower, by the  Collateral Agent (at the direction of a Lender) or any Lender, a written  notice specifying such default or breach and requiring it to be remedied and  (y) any Authorized Officer of the Borrower or any Authorized Officer of  the Manager shall have knowledge of such default or breach;  (B) default in any material respect in the observation or performance of any  covenant of the Borrower set forth in Sections 619(a) or 619(d) and the  continuation of such default for three (3) Business Days;   (4) the occurrence of the events set forth in clause (A), (B) or (C) at the times  set forth herein:  

 

  94    (A) default in the observation or performance of any covenant of the Borrower  set forth in Sections 602, 614, 615 or 623(b) hereof, which breach if curable,  continues for thirty (30) days after the earlier of the date (x) on which there  has been given to the Borrower, by the Collateral Agent (at the direction of  any Lender) or any Lender, a written notice specifying such default or  breach and requiring it to be remedied and (y) on which any Authorized  Officer of the Borrower or any Authorized Officer of the Manager shall  have knowledge of such default or breach;  (B) default in any material respect in the observation or performance of any  covenant of the Borrower set forth in Sections 613(b) or 624 and, if curable,  which continues for fifteen (15) days after the earlier of the date (x) on  which there has been given to the Borrower, by the Collateral Agent (at the  direction of any Lender) or any Lender, a written notice specifying such  default or breach and requiring it to be remedied and (y) on which any  Authorized Officer of the Borrower or any Authorized Officer of the  Manager shall have knowledge of such default or breach;  (C) default in any material respect in the observation or performance of any  covenant of the Borrower to deliver financial statements and reports set  forth in the first sentence of Section 625 and the continuation of such default  for fifteen (15) days after the earlier of the date (A) on which there has been  given to the Borrower, by the Collateral Agent (at the written direction of  any Lender) or any Lender, a written notice specifying such default or  breach and requiring it to be remedied and (B) on which any Authorized  Officer of the Borrower or any Authorized Officer of the Manager shall  have knowledge of such default or breach; provided, however, that (w) if  the reason for such default is primarily attributable to changes in accounting  principles or interpretations or the application of the same, (x) such changes  are not related to the assets of the Borrower, and (y) no Manager Default  then exists under Section 10.1.6 or Sections 10.1.8 through 10.1.13 of the  Management Agreement, and (z) if the Borrower is diligently attempting to  effect such cure at the end of the thirty (30) day period, then the Borrower  shall be entitled to an additional thirty (30) day period to complete such  cure;  (5) default in the performance, or breach, in any material respect, of (a) any  covenant of the Borrower in this Agreement or any other Transaction  Document (other than a covenant or agreement a breach of which or default  in the performance of which is specifically dealt with elsewhere in this  Section 801), which breach, if curable, continues for thirty (30) days after  the earlier of the date (x) on which there has been given to the Borrower, by  the Collateral Agent (at the direction of any Lender) or any Lender, a written  notice specifying such default or breach and requiring it to be remedied and  (y) on which any Authorized Officer of the Borrower or any Authorized  Officer of the Manager shall have knowledge of such default or breach,  provided, however, that if the Borrower is diligently attempting to effect  

 

  95    such cure at the end of such thirty (30) day period, the Borrower shall be  entitled to an additional thirty (30) day period in which to complete such  cure; or (b) any representation or warranty of the Borrower made in any of  the Transaction Documents or in any certificate or other writing delivered  pursuant hereto or thereto or in connection herewith with respect to or  affecting any Outstanding Loan shall prove to be inaccurate in any respect  which materially and adversely affects the interests of any Lender as of the  time when the same shall have been made, and such inaccuracy, if curable,  continues for thirty (30) days after the date on which there has been given  to the Borrower by the Collateral Agent (at the direction of any Lender), or  to the Borrower and the Collateral Agent by any Lender, a written notice  specifying such inaccuracy and requiring it to be remedied, provided,  however, that if such inaccuracy is capable of cure and the Borrower is  diligently attempting to effect such cure at the end of such thirty (30) day  period, the Borrower shall be entitled to an additional thirty (30) day period  in which to complete such cure;  (6) an involuntary case is commenced under the Bankruptcy Code against the  Borrower and the petition is not controverted within 10 days, or is not  dismissed within sixty (60) days, after commencement of the case, or a  decree or order for relief by a court having jurisdiction in respect of the  Borrower is entered appointing a receiver, liquidator, assignee, custodian,  trustee, or sequestrator (or other similar official) for the Borrower or for any  substantial part of its properties, or ordering the winding up or liquidation  of its affairs, and the continuance of any such decree or order unstayed and  in effect for a period of sixty (60) consecutive days;  (7) the commencement by the Borrower of a voluntary case under any  applicable Insolvency Law, or other similar law now or hereafter in effect,  or the consent by the Borrower to the appointment of or taking possession  by a receiver, liquidator, assignee, custodian, trustee or sequestrator (or  other similar official) of the Borrower, or any substantial part of its  properties, or the making by the Borrower of any general assignment for the  benefit of creditors, or the failure by the Borrower generally to pay its debts  as they become due, or the taking of corporate action by the Borrower in  furtherance of any such action;  (8) the Aggregate Loan Principal Balance shall exceed the Asset Base and such  condition continues without being cured or waived by the Majority Lenders  for (A) thirty (30) days if the Conversion Date has not occurred or (B) six  (6) months if the Conversion Date has occurred;  (9) the occurrence of a contribution failure with respect to a Plan , which  contribution failure is sufficient to give rise to a lien under Section 303(k)  of ERISA; or  

 

  96    (10) the Collateral Agent shall fail to have a first priority perfected security  interest (other than on account of Permitted Encumbrances) under the laws  of the United States in any material portion of the Collateral, and such  condition continues for fifteen (15) days without being cured or waived by  each of the Lenders unless such failure to have a first priority perfected  security interest is due to any act or omission of the Collateral Agent, the  Administrative Agent or the Lenders;  (11) the Borrower is required to register as an investment company under the  Investment Company Act of 1940, as amended;  (12) the rendering against the Borrower of a final, non-appealable judgment,  decree or order for the payment of money in excess of One Million Dollars  ($1,000,000) (to the extent not paid when due or covered by a reputable and  solvent insurance company, with any portion of such judgment, decree or  order not so paid or not so covered, as applicable, to be included in the  determination of the dollar amount specified in this clause (12)) which  judgment, decree or order results in a claim that would entitle the  claimholder to petition for the involuntary bankruptcy of the Borrower  under the Bankruptcy Code, and the continuance of such judgment, decree  or order for a period of 60 consecutive days;  (13) all of the following shall have occurred:  (A) a Manager Default shall have  occurred and be continuing, (B) the Majority Lenders (or the Collateral  Agent, acting at the direction of the Majority Lenders) shall have delivered  the Manager Termination Notice to the Manager in accordance with the  terms of the Management Agreement, (C) the Collateral Agent (at the  direction of the Majority Lenders) shall have directed the Borrower to  appoint a replacement Manager, and (D) a replacement Manager has not  assumed the duties of the terminated Manager within ninety (90) days  measured from the date of such Manager Termination Notice;  (14) any Transaction Document shall cease to be the legal, valid and binding  obligation of the Borrower (other than upon the expiration or termination of  such Transaction Document in accordance with its terms) enforceable in  accordance with its terms; or  (15) the Borrower fails to be a Subsidiary of Triton Holdco.  Section 802 Acceleration of Stated Maturity.  Upon the occurrence of an Event of  Default of the type described in paragraph (6) or (7) of Section 801, the unpaid Aggregate Loan  Principal Balance of, and accrued interest on, the Loans, together with all other amounts then due  and owing to the Lenders and each Hedge Counterparty, shall become immediately due and  payable without further action by any Person. Except as set forth in the immediately preceding  sentence, if an Event of Default under Section 801 occurs and is continuing, then and in every such  case the Collateral Agent shall at the direction of the Majority Lenders declare the principal of and  accrued interest on the Loans then Outstanding to be due and payable immediately, by a notice in  

 

  97    writing to the Borrower, each Hedge Counterparty and to the Collateral Agent given by the  Majority Lenders, and upon any such declaration such principal and accrued interest shall become  immediately due and payable.  Section 803 Collection of Indebtedness.  The Borrower covenants that, if an Event of  Default occurs and is continuing and a declaration of acceleration has been made under Section  802 and not rescinded, the Borrower will, upon demand of the Collateral Agent (acting at the  direction of the Majority Lenders), pay to the Collateral Agent, for the benefit of the Secured  Parties, an amount equal to the whole amount then due and payable on the Loans for principal and  interest, with interest upon the overdue principal and, to the extent that payment of such interest  shall be legally enforceable, upon overdue installments of interest, at the Default Rate payable with  respect to each Loan and, in addition thereto, such further amount as shall be sufficient to cover  all other Outstanding Obligations, the costs and out-of-pocket expenses of collection, including  the reasonable and documented compensation, expenses, disbursements and advances of the  Collateral Agent and the Majority Lenders, their respective agents and counsel incurred in  connection with the enforcement of this Agreement.  Section 804 Remedies.  If an Event of Default occurs and is continuing, the Collateral  Agent, by such officer or agent as it may appoint, shall notify each Lender, each Hedge  Counterparty and the Administrative Agent of such Event of Default.  So long as an Event of  Default is continuing or at any time after a declaration of acceleration has been made, the Collateral  Agent shall if instructed by the Majority Lenders:  (i) institute any Proceedings, in its own name and as trustee of an  express trust, for the collection of all amounts then due and payable under this  Agreement, whether by declaration or otherwise, enforce any judgment obtained,  and collect from the Collateral and any other assets of the Borrower any monies  adjudged due;  (ii) subject to the quiet enjoyment rights of any lessee of a Managed  Container, sell (subject to, in the case of any Managed Container that is not a  Terminated Managed Container, the rights of the Manager under the Management  Agreement), hold or lease the Collateral or any portion thereof or rights or interest  therein, at one or more public or private transactions conducted in any manner  permitted by law;  (iii) institute any Proceedings from time to time for the complete or  partial foreclosure of the Lien created by this Agreement with respect to the  Collateral;  (iv) institute such other appropriate Proceedings to protect and enforce  any other rights, whether for the specific enforcement of any covenant or agreement  in this Agreement or in aid of the exercise of any power granted herein, or to enforce  any other proper remedy;  (v) exercise any remedies of a secured party under the Uniform  Commercial Code or any Applicable Law and take any other appropriate action to  

 

  98    protect and enforce the rights and remedies of the Collateral Agent or the Lenders  hereunder; and  (vi) appoint a receiver or a manager over the Borrower or its assets.  Section 805 Reserved.  Section 806 Allocation of Money Collected.  If the Loans have been declared due and  payable following an Event of Default and such declaration and its consequences have not been  rescinded or annulled, any money collected by the Collateral Agent pursuant to this Article or  otherwise and any other monies that may be held or thereafter received by the Collateral Agent as  security for the Loans and the obligations secured hereby shall be applied, to the extent permitted  by law, in the following order, pursuant to a Manager Report by wire transfer of immediately  available funds:  (1) To the Collateral Agent, an amount equal to the sum of (A) all the Collateral  Agent Fees and Collateral Agent Indemnified Amounts then due and  payable and (B) any amounts payable to the Collateral Agent in accordance  with the provisions of Section 403(e) hereof;  (2) To the Director Services Provider in the amount of any unpaid fees owing  pursuant to the Director Services Agreement (not to exceed $25,000 per  annum)  (3) To the Manager, an amount equal to the sum of: (i) the Management Fee  then due and payable, (ii) the amount of any Management Fee Arrearage,  and (iii) any Excess Deposit then due and payable, but in each case only to  the extent not previously withheld by the Manager in accordance with the  terms of the Transaction Documents, provided, further, however, that the  foregoing amount (determined without regard to this proviso or any  comparable proviso in any other section of this Agreement relating to  distributions to the Manager) shall only be payable to the Manager up to the  amount of any prior or current unpaid Net Manager Compensation, and the  remainder thereof shall be payable directly to the Container Service  Provider in payment of the CSP Compensation provided, further, that the  aggregate amount payable pursuant to this clause (3) shall in no event  exceed the sum of (i) such Management Fee, (ii) such Management Fee  Arrearage (if any), and (iii) such Excess Deposit (if any);  (4) To the Manager, reimbursement for any Manager Advances;  (5) To the Administrative Agent, the Administrative Agent Fees then due and  payable;  (6) To the Persons entitled thereto:  (i) any auditing, accounting and related fees  then due and payable which are classified as a Borrower Expense and (ii)  any other Borrower Expenses then due and payable, so long as the aggregate  

 

  99    amount paid pursuant to this clause (6) in any calendar year would not  exceed One Hundred Thousand Dollars ($100,000);   (7) To each of the following on a pro rata basis: (i) to each Hedge Counterparty,  the amount of any scheduled payments (but excluding termination  payments) then due and payable pursuant to the terms of any Hedge  Agreement then in effect and (ii) to each Lender, an amount equal to its Pro  Rata Share of the Interest Payment for such Payment Date (excluding the  portion of such Interest Payment in respect of Step-Up Margin);  (8) To each of the following on a pro rata basis: (i) to each Hedge Counterparty,  on a pro rata basis, the amount of any unpaid payments then due and payable  (including termination payments but excluding (x) any payments made  pursuant to clause (7) above and (y) termination payments resulting from  an “Event of Default” or a “Termination Event” (other than “Illegality” and  “Tax Event”) (each as defined in the related Hedge Agreement) where the  related Hedge Counterparty is the “Defaulting Party” or sole “Affected  Party” (each as defined in the related Hedge Agreement)) pursuant to the  terms of any Hedge Agreement then in effect, and (ii) to each Lender, to  pay the unpaid principal balance of its Loan(s) until the Aggregate Loan  Principal Balance is reduced to zero;  (9) To each Lender, an amount equal to its Pro Rata Share of the Interest  Payment for such Payment Date in respect of Step-Up Margin, after giving  effect to the payment made pursuant to clause (7) above;  (10) To the Lenders and Hedge Counterparties, on a pro rata basis, interest  payments on the Loans and Default Fees not paid pursuant to clause (7) or  clause (9) above and any Indemnity Amounts or other amounts then due  and payable;  (11) [Reserved];   (12) To the Collateral Agent, any Collateral Agent Fees and Collateral Agent  Indemnified Amounts then due and payable, after giving effect to the  payment made pursuant to clause (1) above;  (13) To the Director Services Provider in the amount of any unpaid Indemnified  Amounts (as defined in the Director Services Agreement) owing pursuant  to the Director Services Agreement;  (14) To each Hedge Counterparty, on a pro rata basis, the amount of any unpaid  payments then due and payable (including termination payments resulting  from an “Event of Default” or a “Termination Event” (other than  “Illegality” and “Tax Event”), each as defined in the related Hedge  Agreement, where the related Hedge Counterparty is the “Defaulting Party”  or sole “Affected Party” (each as defined in the related Hedge Agreement),  

 

  100    but excluding any payments made pursuant to clause (7) or (8) above)  pursuant to the terms of any Hedge Agreement then in effect;  (15) To each of the following on a pro rata basis: (i) to the Borrower, the amount  of any indemnity payments payable to the officers, directors and/or  managers of the Borrower required to be made by the Borrower, and (ii) to  the Manager, the amount of any indemnity payments required to be made  by the Borrower to the Manager in accordance with the terms of the  Management Agreement; and  (16) To the Borrower, any remaining monies which may, any provision in the  Transaction Documents to the contrary notwithstanding, be used by the  Borrower for any purpose, including, without limitation, general corporate  purposes, the distribution of dividends, repayment of debt, paying fees and  expenses or any other purpose in the sole discretion of the Borrower.  Section 807 Reserved.   Section 808 Reserved.  Section 809 Restoration of Rights and Remedies.  If the Collateral Agent or any Lender  has instituted any Proceeding to enforce any right or remedy under this Agreement and such  Proceeding has been discontinued or abandoned for any reason, or has been determined adversely  to the Collateral Agent or to such Lender, then and in every such case, subject to any determination  in such Proceeding, the Borrower, the Collateral Agent and the Lenders shall be restored severally  and respectively to their former positions hereunder and thereafter all rights and remedies of the  Collateral Agent and the Lenders shall continue as though no such Proceeding had been instituted.  Section 810 Rights and Remedies Cumulative.  No right or remedy conferred upon or  reserved to the Collateral Agent, any Hedge Counterparty or to the Lenders pursuant to this  Agreement is intended to be exclusive of any other right or remedy, and every right and remedy  shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy  given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or  employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent  assertion or employment of any other appropriate right or remedy.  Section 811 Delay or Omission Not Waiver.  No delay or omission of the Collateral  Agent, of any Hedge Counterparty or of any Lenders to exercise any right or remedy accruing  upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such  Event of Default or an acquiescence therein. Every right and remedy given by this Article or by  law to the Collateral Agent, any Hedge Counterparty, or to the Lenders may be exercised from  time to time, and as often as may be deemed expedient, by the Collateral Agent, by any Hedge  Counterparty or by the Lenders, as the case may be.  Section 812 Control by Majority Lenders.  (a) Upon the occurrence of an Event of Default, the Majority Lenders shall  have the right to direct the time, method and place of conducting any Proceeding for any remedy  

 

  101    available to the Collateral Agent or exercising any trust or power conferred on the Collateral  Agent, provided that (i) such direction shall not be in conflict with any rule of law or with this  Agreement, including, without limitation, Section 804 hereof and (ii) the Collateral Agent may  take any other action deemed proper by the Collateral Agent which is not inconsistent with such  direction.  (b) Notwithstanding the grant of a security interest to secure the Outstanding  Obligations owing to the Collateral Agent, for the benefit of the Secured Parties, all rights to  direct actions or to exercise rights or remedies under this Agreement or the UCC (including these  set forth in Section 804 hereof) shall be vested solely in the Majority Lenders and, by accepting  the benefits of this Agreement, each Secured Party acknowledges such statement; provided,  however, that nothing contained in this paragraph shall constitute a modification of Section 808,  Section 813(b) or Section 815(d) hereof.  Section 813 Waiver of Past Defaults.  (a)  The Majority Lenders may, on behalf of all  the Lenders, waive any past Event of Default and its consequences, except an Event of Default:  (i) in the payment of (x) the principal outstanding amount of the Loans  on the Final Maturity Date of the Loans, (y) interest on the Loans on any Payment  Date, or (z) fees in respect of the Loans on any Payment Date, all of which defaults  can be waived solely by the affected Lenders;   (ii) in respect of a covenant or provision hereof which cannot be  modified or amended without the consent of all of the Lenders; or  (iii) which requires the consent of a Hedge Counterparty under Section  1007 hereof, in which event the consent of such Hedge Counterparty must be  obtained for the Majority Lenders to waive such Event of Default on behalf of all  the Lenders.  (b) Upon any such waiver, such Event of Default shall cease to exist and shall  be deemed to have been cured and not to have occurred for every purpose of this Agreement;  provided, however, that no such waiver shall extend to (i) any subsequent or other Event of  Default or impair any right consequent thereon or (ii) affect any Hedge Agreement which has  been terminated in accordance with its terms.  Section 814 Waiver of Stay or Extension Laws.  The Borrower covenants (to the extent  that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner  whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted,  now or at any time hereafter in force, which may affect the covenants or the performance of this  Agreement; and the Borrower (to the extent that it may lawfully do so) hereby expressly waives  all benefit or advantage of any such law and covenants that it will not hinder, delay or impede the  execution of any power herein granted to the Collateral Agent, but will suffer and permit the  execution of every such power as though no such law had been enacted.  Section 815 Sale of Collateral.  

 

  102    (a) The power to effect any sale (a “Sale”) of any portion of the Collateral  pursuant to Section 804 hereof shall not be exhausted by any one or more Sales as to any portion  of the Collateral remaining unsold, but shall continue unimpaired until the entire Collateral shall  have been sold or all Outstanding Obligations shall have been paid in full. The Collateral Agent  at the direction of the Majority Lenders may from time to time postpone any Sale by public  announcement made at the time and place of such Sale.  (b) Upon any Sale, whether made under the power of sale hereby given or  under judgment, order or decree in any Proceeding for the foreclosure or involving the  enforcement of this Agreement:  (i) the Collateral Agent, at the written direction of the Majority  Lenders, may bid for and purchase the property being sold, and upon compliance with the terms  of such Sale may hold, retain and possess and dispose of such property in accordance with the  terms of this Agreement; and (ii) the receipt of the Collateral Agent or of any officer thereof  making such Sale shall be a sufficient discharge to the purchaser or purchasers at such Sale for  its or their purchase money, and such purchaser or purchasers, and its or their assigns or personal  representatives, shall not, after paying such purchase money and receiving such receipt of the  Collateral Agent or of such officer thereof, be obliged to see to the application of such purchase  money or be in any way answerable for any loss, misappropriation or non-application thereof.  (c) The Collateral Agent shall execute and deliver an appropriate instrument  of conveyance provided to it transferring its interest in any portion of the Collateral in connection  with a Sale thereof. In addition, the Collateral Agent is hereby irrevocably appointed the agent  and attorney-in-fact of the Borrower to transfer and convey its interest (subject to lessees’ rights  of quiet enjoyment) in any portion of the Collateral in connection with a Sale thereof, and to take  all action necessary to effect such Sale. No purchaser or transferee at such a Sale shall be bound  to ascertain the Collateral Agent’s authority, inquire into the satisfaction of any conditions  precedent or see to the application of any monies.  (d) The Collateral Agent acknowledges that its right to sell, transfer or  otherwise convey any Hedge Agreement or any transaction outstanding thereunder, or to  exercise foreclosure rights with respect thereto shall be subject to compliance with the provisions  of the applicable Hedge Agreement.  Section 816 Collateral Agent Action.  The Collateral Agent’s right to seek and recover  judgment on the Loans or under this Agreement shall not be affected by the seeking, obtaining or  application of any other relief under or with respect to this Agreement. Neither the Lien of this  Agreement nor any rights or remedies of the Collateral Agent, any Hedge Counterparty or the  Lenders shall be impaired by the recovery of any judgment by the Collateral Agent against the  Borrower or by the levy of any execution under such judgment upon any portion of the Collateral  or upon any of the assets of the Borrower.  ARTICLE IX    THE COLLATERAL AGENT  Section 901 Duties of the Collateral Agent.  Each of the Lenders hereby (i) appoints  Wilmington Trust, N.A. to act as the Collateral Agent under this Agreement and the other  

 

  103    Transaction Documents and as its “representative” as such term is used in the UCC, and (ii)  authorizes and directs the Collateral Agent to enter into the Intercreditor Collateral Agreement and  the Control Agreements. The Collateral Agent, prior to the occurrence of an Event of Default or  after the cure or waiver of any Event of Default that may have occurred, undertakes to perform  such duties and only such duties as are specifically set forth in this Agreement and no implied  duties shall be inferred against it.  If any Event of Default has occurred and is continuing, the  Collateral Agent, at the written direction of the Majority Lenders, shall exercise such of the rights  and powers vested in it by this Agreement.  The Collateral Agent, upon receipt of all resolutions, certificates, statements, opinions,  reports, documents, orders or other instruments furnished to the Collateral Agent which are  specifically required to be furnished pursuant to any provisions of this Agreement, shall, as  expressly set forth in this Agreement, determine whether they are substantially in the form required  by this Agreement; provided, however, that the Collateral Agent shall not be responsible for  investigating or re-calculating, evaluating, certifying, verifying or independently determining the  accuracy or content (including mathematical calculations) of any such resolution, certificate,  statement, opinion, report, document, order or other instrument furnished pursuant to this  Agreement.  No provision of this Agreement shall be construed to relieve the Collateral Agent from  liability for its own negligent action, its own negligent failure to act or its own willful misconduct;  provided, however, that:  (i) Prior to the occurrence of an Event of Default and after the cure or  waiver of any Event of Default that may have occurred, the duties and obligations  of the Collateral Agent shall be determined solely by the express provisions of this  Agreement issued pursuant to the terms hereof.  The Collateral Agent shall not be  liable except for the performance of such duties and obligations as are specifically  set forth in this Agreement issued pursuant to the terms hereof, and no implied  covenants or obligations shall be read into this Agreement against the Collateral  Agent and, in the absence of bad faith on the part of the Collateral Agent, the  Collateral Agent may conclusively rely, as to the truth of the statements and the  correctness of the opinions expressed therein, upon any certificates, statements,  reports, documents, orders, opinions or other instruments (whether in their original  or facsimile form) furnished to the Collateral Agent and conforming to the  requirements of this Agreement;  (ii) The Collateral Agent shall not be liable for actions taken, or any  error of judgment made, in good faith by a Responsible Officer or Responsible  Officers of the Collateral Agent, unless it shall be proved that the Collateral Agent  was negligent in ascertaining the pertinent facts; and  (iii) The Collateral Agent shall not be liable with respect to any action  taken, suffered or omitted to be taken by it in good faith in accordance with the  direction of the Majority Lenders relating to the time, method and place of  conducting any Proceeding for any remedy available to the Collateral Agent, or  

 

  104    exercising any trust or power conferred upon the Collateral Agent, under this  Agreement.  No provisions of this Agreement shall require the Collateral Agent to expend or risk its  own funds or otherwise incur any financial liability in the performance of its duties hereunder, or  in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that  repayment of such funds or adequate security or indemnity against such risk or liability is not  reasonably assured to it.  Whether or not therein expressly so provided, every provision of this Agreement relating  to the conduct or affecting the liability of or affording protection to the Collateral Agent shall be  subject to the provisions of this Section 901.  Section 902 Certain Matters Affecting the Collateral Agent.  (a) Except as otherwise  provided in Section 901 hereof:  (i) The Collateral Agent may conclusively rely and shall be fully  protected in acting or refraining from acting upon any Opinion of Counsel,  certificate of an officer of the Borrower, the Manager or the Administrative Agent,  certificate of auditors or any other certificate, statement, instrument, opinion,  report, notice, request, consent, order, appraisal, bond or other paper or document  (whether in its original or facsimile form) believed by it to be genuine and to have  been signed or presented by the proper party or parties;  (ii) The Collateral Agent may consult with counsel of its selection and  any advice or opinion of such counsel shall be full and complete authorization and  protection in respect of any action taken or suffered or omitted by it hereunder in  good faith and in accordance with such advice or opinion;  (iii) The Collateral Agent shall not be liable with respect to any action it  takes or omits to take in accordance with a direction received by it from the  Borrower, the Manager, the Administrative Agent or the Majority Lenders in  accordance with the terms of this Agreement and the other Transaction Documents.   The Collateral Agent shall be under no obligation to institute, conduct or defend  any litigation or Proceeding hereunder or in relation hereto at the request, order or  direction of the Majority Lenders, pursuant to the provisions of this Agreement,  unless the Majority Lenders shall have offered to the Collateral Agent security or  indemnity reasonably satisfactory to it against the costs, expenses and liabilities  which may be incurred therein or thereby; and  (iv) The Collateral Agent shall not be liable for any action taken,  suffered or omitted by it in good faith and believed by it to be authorized or within  the discretion or rights or powers conferred upon it by this Agreement;  (b) The Collateral Agent shall not be bound to take any discretionary action,  including any investigation into the facts or matters stated in any resolution, certificate,  statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other  paper or document, unless requested in writing to do so by the Majority Lenders; provided,  

 

  105    however, that the Collateral Agent may require security or indemnity reasonably satisfactory to  it against any cost, expense or liability likely to be incurred in making such investigation as a  condition to so proceeding.  The reasonable expense of any such examination shall be paid, on a  pro rata basis, by the Lenders requesting such examination or, if paid by the Collateral Agent,  shall be reimbursed by such Lenders upon demand;  (c) The Collateral Agent may execute any of the trusts or powers hereunder or  perform any duties hereunder either directly or by or through its agents or attorneys and the  Collateral Agent shall not be responsible for any misconduct or negligence on the part of any agent  or attorney appointed by it with due care hereunder;  (d) The Collateral Agent shall not be deemed to have knowledge of any default,  Event of Default, Early Amortization Event, or other event or information, or be required to act  upon any default, Event of Default, Early Amortization Event, or other event or information  (including the sending of any notice) unless a Responsible Officer of the Collateral Agent shall  have received written notice or has actual knowledge of such event or information, and shall have  no duty to take any action to determine whether any such event, default, Event of Default or Early  Amortization Event has occurred;  (e) The knowledge of the Collateral Agent shall not be attributed or imputed  to any other roles of Wilmington Trust, National Association or its Affiliates (“Wilmington  Trust”) in the transaction and knowledge of the Securities Intermediary shall not be attributed or  imputed to each other or to the Collateral Agent (other than those where the roles are performed  by the same group or division within Wilmington Trust or otherwise share the same Responsible  Officers), or any Affiliate, line of business, or other division of Wilmington Trust (and vice  versa);  (f) Notwithstanding anything to the contrary herein or otherwise, under no  circumstance will the Collateral Agent be liable for special, punitive, indirect, or consequential  loss or damage of any kind whatsoever (including lost profits), whether or not foreseeable, even if  the Collateral Agent is actually aware of or has been advised of the likelihood of such loss or  damage;  (g) Before the Collateral Agent acts or refrains from taking any action under  this Agreement, it may require an Officer’s Certificate and/or an Opinion of Counsel from the  party requesting that the Collateral Agent act or refrain from acting in form and substance  acceptable to the Collateral Agent, the costs of which (including the Collateral Agent’s  reasonable attorney’s fees and expenses) shall be paid by the party requesting that the Collateral  Agent act or refrain from acting. The Collateral Agent shall not be liable for any action it takes  or omits to take in good faith in reliance on such Officer’s Certificates and/or Opinions of  Counsel;  (h) The Collateral Agent shall incur no liability if, by reason of any provision  of any future law or regulation thereunder, or by any force majeure event, including but not limited  to natural disaster, act of war or terrorism, or other circumstances beyond its reasonable control,  the Collateral Agent shall be prevented or forbidden from doing or performing any act or thing  which the terms of this Agreement provide shall or may be done or performed, or by reason of any  

 

  106    exercise of, or failure to exercise, any discretion provided for in this Agreement or any other  transaction document;  (i) Notwithstanding anything to the contrary in this Agreement, the Collateral  Agent shall not be required to take any action that is not in accordance with Applicable Law;  (j) The right of the Collateral Agent to perform any permissive or discretionary  act enumerated in this Agreement or any related document shall not be construed as a duty;  (k) Neither the Collateral Agent nor any of its officers, directors, employees,  attorneys or agents will be responsible or liable for the existence, genuineness, value or protection  of the Collateral, for the legality, enforceability, effectiveness or sufficiency of the Transaction  Documents for the creation, perfection, continuation, priority, sufficiency or protection of any of  the Liens created hereunder, or for any defect or deficiency as to any such matters, or for  monitoring the status of any Lien or performance of the Collateral;  (l) The Collateral Agent shall not be liable for any action or inaction of the  Borrower, the Manager, the Seller, or any other party (or agent thereof) to this Agreement or any  related document and may assume compliance by such parties with their obligations under this  Agreement or any related agreements, unless a Responsible Officer of the Collateral Agent shall  have received written notice to the contrary at the Corporate Trust Office of the Collateral Agent;  (m) The rights, privileges, protections, immunities and benefits given to the  Collateral Agent, including, without limitation, its right to be indemnified, are extended to, and  shall be enforceable by, the Collateral Agent in each of its capacities hereunder and under the other  Transaction Documents, including without limitation, the Securities Intermediary, and to each  agent, custodian and other Person employed to act hereunder;   (n) The Collateral Agent shall have no duty to see to, or be responsible for the  correctness or accuracy of, any recording, filing or depositing of this Agreement or any agreement  referred to herein, or any financing statement or continuation statement evidencing a security  interest, or to see to the maintenance of any such recording or filing or depositing or to any  rerecording, refilling or re-depositing of any thereof; and  (o) The Collateral Agent shall not have any liability for any determination made  by or on behalf of the Administrative Agent or the Borrower in connection with the determination  of Adjusted Term SOFR or any replacement thereof or any alternate rate of interest to Adjusted  Term SOFR, and each Lender shall be deemed to waive and release any and all claims against the  Collateral Agent relating to any such determinations.  The Collateral Agent will not have any  liability or obligation with respect to any determination by the Administrative Agent or the  Borrower that the circumstances set forth in Section 301(s) have occurred or the selection of any  replacement or alternate rate of interest to Adjusted Term SOFR.  The Collateral Agent shall not  have any responsibility to make any determination with respect to Adjusted Term SOFR, or have  any involvement in connection with the selection, cessation or replacement of Term SOFR or any  replacement or alternate rate of interest to Term SOFR.  The provisions of this Section 902 shall be applicable to the Collateral Agent in its capacity  as the Collateral Agent under this Agreement.  

 

  107    Section 903 Collateral Agent Not Liable.    (a) The recitals contained herein (other than the representations and warranties  contained in Section 911 hereof) shall be taken as the statements of the Borrower, and the  Collateral Agent assumes no responsibility for their correctness.  The Collateral Agent makes no  representations as to, and shall not be responsible for, the validity, legality, enforceability or  adequacy or sufficiency of this Agreement, the Collateral or of any Transaction Document, or as  to the correctness of any statement contained in any thereof; provided that this sentence shall not  limit the representations and warranties made by the Collateral Agent in Section 911.  The  Collateral Agent shall not be accountable for the use or application by the Borrower of the Loans  or of the proceeds thereof, or for the use or application of any funds paid to the Borrower or the  Manager in respect of the Collateral.  (b) The Collateral Agent shall have no responsibility or liability for or with  respect to the existence or validity of any Container, the perfection of any security interest (whether  as of the date hereof or at any future time), the maintenance of or the taking of any action to  maintain such perfection, the validity of the assignment of any portion of the Collateral to the  Collateral Agent or of any intervening assignment, the compliance by the Seller or the Manager  with any covenant or the breach by the Seller or the Manager of any warranty or representation  made hereunder, or in any related document or the accuracy of such warranty or representation,  any investment of monies in the Distribution Account, the Revenue Reserve Account, or the  Restricted Cash Account or any loss resulting therefrom (provided that such investments are made  in accordance with the provisions of Section 303 hereof), or the acts or omissions of the Seller or  the Manager taken in the name of the Collateral Agent.   (c) Except as expressly provided herein, the Collateral Agent shall not have any  obligation or liability under any Contract by reason of or arising out of this Agreement or the  granting of a security interest in such Contract hereunder or the receipt by the Collateral Agent of  any payment relating to any Contract pursuant hereto, nor shall the Collateral Agent be required  or obligated in any manner to perform or fulfill any of the obligations of the Borrower, the Seller  or the Manager under or pursuant to any Contract, or to make any payment, or to make any inquiry  as to the nature or the sufficiency of any payment received by it, or the sufficiency of any  performance by any party, under any Contract.  Section 904 Reserved.  Section 905 Collateral Agent’s Fees and Expenses.  The fees and expenses (“Collateral  Agent Fees”) of the Collateral Agent shall be paid by the Borrower in accordance with Section  302 or 806 hereof.  Subject to the provisions of Section 902(a)(iii) hereof, the Borrower shall  indemnify the Collateral Agent and each of its officers, directors and employees for, and hold them  harmless against, any loss, liability, damage, claim or out-of-pocket expense (including reasonable  and documented out-of-pocket legal fees, costs and expenses and court costs), in each case incurred  without negligence or willful misconduct on their part, arising out of or in connection with the  acceptance or administration of this trust, including the costs and expenses of defending itself both  individually and in its representative capacity against any claim or liability in connection with the  exercise or performance of any of its powers or duties hereunder and those incurred in connection  with any action, claim or suit brought to enforce the Collateral Agent’s right to indemnification  

 

  108    (“Collateral Agent Indemnified Amounts”). Upon request from the Borrower or any Lender, the  Collateral Agent shall provide to such requesting party reasonable detail of all Collateral Agent  Indemnified Amounts and expenses incurred by the Collateral Agent.  The obligations of the Borrower under this Section 905 to compensate the Collateral Agent,  to pay or reimburse the Collateral Agent for expenses, disbursements and advances and to  indemnify and hold harmless, the Collateral Agent shall constitute Outstanding Obligations  hereunder and shall survive the resignation or removal of the Collateral Agent and the satisfaction  and discharge and assignment of this Agreement.  When the Collateral Agent incurs expenses or renders services in connection with an Event  of Default specified in Section 801(6) or Section 801(7), the expenses and the compensation for  the services are intended to constitute expenses of administration under any Insolvency Law.  Section 906 Eligibility Requirements for the Collateral Agent.  The Collateral Agent  hereunder shall at all times be a national banking association or a corporation organized and doing  business under the laws of the United States of America or any State, and authorized under such  laws to exercise corporate trust powers.  In addition, the Collateral Agent or its parent corporation  shall at all times (i) have a combined capital and surplus of at least Two Hundred Fifty Million  Dollars ($250,000,000), (ii) be subject to supervision or examination by federal or State authority  and (iii) have a long-term unsecured senior debt rating of not less than investment grade by  Moody’s and S&P, and short-term unsecured senior debt rating of not less than investment grade  by Moody’s and S&P.  If such corporation publishes reports of condition at least annually, pursuant  to law or to the requirements of such supervising or examining authority, then, for the purposes of  this Section 906, the combined capital and surplus of such corporation shall be deemed to be its  combined capital and surplus as set forth in its most recent report of condition so published.  In  case at any time the Collateral Agent shall cease to be eligible in accordance with the provisions  of this Section, the Collateral Agent shall resign promptly in the manner and with the effect  specified in Section 907 hereof.  Section 907 Resignation and Removal of the Collateral Agent.  The Collateral Agent  may at any time resign and be discharged from the trusts hereby created by giving written notice  thereof to the Borrower, the Manager, the Administrative Agent, each Hedge Counterparty and  each Lender.  Upon receiving such notice of resignation, the Borrower, at the direction and subject  to the consent of the Majority Lenders, shall promptly appoint a successor agent by written  instrument, in duplicate, one copy of which instrument shall be delivered to the resigning  Collateral Agent, each Hedge Counterparty, the Administrative Agent and one copy to the  successor Collateral Agent.  If no successor Collateral Agent shall have been so appointed and  have accepted appointment within 30 days after the giving of such notice of resignation, the  Majority Lenders may appoint a successor Collateral Agent or, if it does not do so within 30 days  thereafter, the resigning Collateral Agent may petition at the expense of the Borrower any court of  competent jurisdiction for the appointment of a successor Collateral Agent, which successor  Collateral Agent shall meet the eligibility standards set forth in Section 906.  If at any time the Collateral Agent shall cease to be eligible in accordance with the  provisions of Section 906 hereof and shall fail to resign after written request therefor by the  Borrower, at the direction of the Majority Lenders, or if at any time the Collateral Agent shall  

 

  109    become incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the  Collateral Agent or of its property shall be appointed, or any public officer shall take charge or  control of the Collateral Agent or of its property or affairs for the purpose of rehabilitation,  conservation or liquidation, then the Borrower, at the direction of the Majority Lenders, shall  remove the Collateral Agent and appoint a successor Collateral Agent by written instrument, in  duplicate, one copy of which instrument shall be delivered to the Collateral Agent so removed and  one copy to the successor Collateral Agent.  If no successor Collateral Agent shall have been so  appointed and have accepted appointment within 30 days after such removal, the Majority Lenders  may appoint a successor Collateral Agent or, if it does not do so within 30 days after such  resignation or removal, the departing Collateral Agent may petition at the expense of the Borrower  any court of competent jurisdiction for the appointment of a successor Collateral Agent, which  successor Collateral Agent shall meet the eligibility standards set forth in Section 906.  In addition, the Borrower may, with the consent of the Majority Lenders, remove the  Collateral Agent for cause (which includes a determination by the Borrower and/or the Majority  Lenders that Collateral Agent Indemnified Amounts and expenses are excessive) and appoint a  successor Collateral Agent with prior written notice by written instrument, in duplicate, one copy  of which instrument shall be delivered to the Collateral Agent so removed and one copy to the  successor Collateral Agent. In connection with any such removal of the Collateral Agent, the  departing Collateral Agent shall be entitled to receive all accrued but unpaid Collateral Agent Fees  and Collateral Agent Indemnified Amounts.  Any resignation or removal of the Collateral Agent and appointment of a successor  Collateral Agent pursuant to any of the provisions of this Section shall become effective upon  acceptance of appointment by the successor Collateral Agent as provided in Section 908 hereof.  Section 908 Successor Collateral Agent.  Any successor Collateral Agent appointed as  provided in Section 907 hereof shall execute, acknowledge and deliver to the Borrower, each  Secured Party and to its predecessor Collateral Agent an instrument accepting such appointment  hereunder, and thereupon the resignation or removal of the predecessor Collateral Agent shall  become effective and such successor Collateral Agent, without any further act, deed or  conveyance, shall become fully vested with all the rights, powers, duties and obligations of its  predecessor hereunder, with like effect as if originally named as the Collateral Agent herein.  The  predecessor Collateral Agent shall upon payment of all charges due it, its agents and counsel  deliver to the successor Collateral Agent all documents relating to the Collateral, if any, delivered  to it, together with any amount remaining in the Distribution Account, the Revenue Reserve  Account and the Restricted Cash Account.  In addition, the predecessor Collateral Agent and, upon  request of the successor Collateral Agent, the Borrower shall execute and deliver such instruments  and do such other things as may reasonably be required for more fully and certainly vesting and  confirming in the successor Collateral Agent all such rights, powers, duties and obligations.  No successor Collateral Agent shall accept appointment as provided in this Section unless  at the time of such acceptance such successor Collateral Agent shall be eligible under the  provisions of Section 906 hereof and shall be acceptable to the Majority Lenders.  Upon acceptance of appointment by a successor Collateral Agent as provided in this  Section, the Borrower shall mail notice of the succession of such Collateral Agent hereunder to all  

 

  110    Lenders at their respective addresses as shown in the registration books maintained by the  Administrative Agent.  If the Borrower fails to mail such notice within ten (10) days after  acceptance of appointment by the successor Collateral Agent, the successor Collateral Agent shall  cause such notice to be mailed at the expense of the Borrower.  Section 909 Merger or Consolidation of the Collateral Agent.  Any corporation into  which the Collateral Agent 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 Collateral  Agent shall be a party, or any corporation succeeding to the business of the Collateral Agent, shall  be the successor of the Collateral Agent hereunder, provided such corporation shall be eligible  under the provisions of Section 906 hereof, without the execution or filing of any paper or any  further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.  Section 910 Separate Collateral Agents, Co-Collateral Agents and Custodians.  If the  Collateral Agent is not capable of acting for jurisdictional purposes, it shall have the power from  time to time to appoint one or more Persons or corporations to act either as co-agents jointly with  the Collateral Agent, or as separate agents, or as custodians, for the purpose of holding title to,  foreclosing or otherwise taking action with respect to any of the Collateral, when such separate  agent or co-agent is necessary or advisable under any Applicable Laws or for the purpose of  otherwise conforming to any legal requirement, restriction or condition in any applicable  jurisdiction.  The separate agents, co-agents, or custodians so appointed shall be agents, co-agents,  or custodians for the benefit of the Secured Parties and shall have such powers, rights and remedies  as shall be specified in the instrument of appointment; provided, however, that no such  appointment shall, or shall be deemed to, constitute the appointee an agent of the Collateral Agent  and the Collateral Agent shall not have any liability relating to such appointment.  The Borrower  shall join in any such appointment, but such joining shall not be necessary for the effectiveness of  such appointment.  Every separate agent, co-agent and custodian shall, to the extent permitted by law, be  appointed and act subject to the following provisions and conditions:  (i) all powers, duties, obligations and rights conferred upon the  Collateral Agent in respect of the receipt, custody and payment of moneys shall be  exercised solely by the Collateral Agent;  (ii) all other rights, powers, duties and obligations conferred or imposed  upon the Collateral Agent shall be conferred or imposed upon and exercised or  performed by the Collateral Agent and such separate agent, co-agent, or custodian  jointly, except to the extent that under any law of any jurisdiction in which any  particular act or acts are to be performed the Collateral Agent 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 Collateral or any portion  thereof in any such jurisdiction) shall be exercised and performed by such separate  agent, co-agent or custodian;  

 

  111    (iii) no agent, co-agent, separate agent or custodian hereunder shall be  personally liable by reason of any act or omission of any other agent, co-agent,  separate agent or custodian hereunder; and  (b) the Borrower or the Collateral Agent may at any time accept the  resignation of or remove any separate agent, co-agent or custodian so appointed by it or them if  such resignation or removal does not violate the other terms of this Agreement.  Any notice, request or other writing given to the Collateral Agent shall be deemed to have  been given to each of the then separate agents and co-agents, as effectively as if given to each of  them. Every instrument appointing any separate agent, co-agent, or custodian shall refer to this  Agreement and the conditions of this Article. Each separate agent and co-agent, 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 Collateral Agent 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 Collateral Agent. Every such instrument shall be furnished to the Collateral  Agent and each Hedge Counterparty.  Any separate agent, co-agents, or custodian may, at any time, constitute the Collateral  Agent, 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 agent, co-agent, or custodian 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  Collateral Agent, to the extent permitted by law, without the appointment of a new or successor  agent or custodian.  No separate agent, co-agent or custodian hereunder shall be required to meet the terms of  eligibility as a successor agent under Section 906 hereof and no notice to the Lenders of the  appointment thereof shall be required under Section 908 hereof.  The Collateral Agent agrees to instruct the co-agents, if any, to the extent necessary to  fulfill the Collateral Agent’s obligations hereunder.  Section 911 Representations and Warranties.  The Collateral Agent hereby represents  and warrants as of the Closing Date that:  (a) Organization and Good Standing.  The Collateral Agent is a national  banking association duly organized, validly existing and in good standing under the laws of the  United States, and has the power to own its assets and to transact the business in which it is  presently engaged;  (b) Authorization.  The Collateral Agent has the power, authority and legal  right to execute, deliver and perform this Agreement, and the execution, delivery and  performance of this Agreement have been duly authorized by the Collateral Agent by all  necessary corporate action;  

 

  112    (c) Binding Obligations.  This Agreement, assuming due authorization,  execution and delivery by the Borrower, constitutes the legal, valid and binding obligations of  the Collateral Agent, enforceable against the Collateral Agent in accordance with its terms,  except that (i) such enforcement may be subject to bankruptcy, insolvency, reorganization,  moratorium or other similar laws (whether statutory, regulatory or decisional) now or hereafter  in effect relating to creditors’ rights generally and the rights of trust companies in particular and  (ii) the remedy of specific performance and injunctive and other forms of equitable relief may  be subject to certain equitable defenses and to the discretion of the court before which any  Proceeding therefor may be brought, whether in a Proceeding at law or in equity;  (d) No Violation.  The performance by the Collateral Agent of its obligations  under this Agreement will not conflict with, result in any breach of any of the terms and  provisions of, or constitute (with or without notice, lapse of time or both) a default under, the  charter documents or bylaws of the Collateral Agent;  (e) No Proceedings.  There are no Proceedings or investigations to which the  Collateral Agent is a party pending, or, to the knowledge of the Collateral Agent without  independent investigation, threatened, before any court, regulatory body, administrative agency  or other tribunal or Governmental Authority (A) asserting the invalidity of this Agreement, (B)  seeking to prevent the consummation of any of the transactions contemplated by this Agreement  or (C) seeking any determination or ruling that would materially and adversely affect the  performance by the Collateral Agent of its obligations under, or the validity or enforceability of,  this Agreement; and  (f) Approvals.  Neither the execution or delivery by the Collateral Agent of  this Agreement nor the consummation of the transactions by the Collateral Agent contemplated  hereby requires the consent or approval of, the giving of notice to, the registration with or the  taking of any other action with respect to any Governmental Authority under any existing federal  or State of New York or State of Minnesota law governing the banking or trust powers of the  Collateral Agent.  Section 912 Reserved.  Section 913 Notice of Various Events.  If a Responsible Officer of the Collateral Agent  shall have actual knowledge that an Event of Default or an Early Amortization Event shall have  occurred and be continuing, the Collateral Agent shall promptly (but in any event within five (5)  Business Days) give written notice thereof to each affected Lender, the Administrative Agent and  each Hedge Counterparty.  For all purposes of this Agreement, in the absence of actual knowledge  by a Responsible Officer of the Collateral Agent, the Collateral Agent shall not be deemed to have  actual knowledge of any Event of Default or Early Amortization Event unless notified in writing  thereof by the Borrower, the Seller, the Manager, the Administrative Agent or a Lender, and such  notice references the Borrower or this Agreement.  Section 914 Notices.  Any application by the Collateral Agent for written instructions  from the Borrower may, at the option of the Collateral Agent, set forth in writing any action  proposed to be taken or omitted by the Collateral Agent under this Agreement and the date on  and/or after which such action shall be taken or such omission shall be effective.  The Collateral  

 

  113    Agent shall not be liable for any action taken by, or omission of, the Collateral Agent in accordance  with a proposal included in such application on or after the date specified in such application  (which date shall not be less than five (5) Business Days after the date any officer of the limited  liability company manager of the Borrower actually receives such application, unless any such  officer shall have consented in writing to any earlier date) unless prior to taking any such action  (or the effective date in the case of an omission), the Collateral Agent shall have received written  instructions in response to such application specifying the action to be taken or omitted.  ARTICLE X    SUCCESSORS AND ASSIGNS; AMENDMENTS  Section 1001 General Condition.  The provisions of this Agreement shall be binding upon  and inure to the benefit of the parties hereto and their respective successors and assigns permitted  hereby, except that the Borrower may not assign or otherwise transfer any of its rights or  Outstanding Obligations hereunder without the prior written consent of each Lender.  No Lender  may assign or otherwise transfer any of its rights or obligations hereunder except (a) to an Eligible  Assignee in accordance with the provisions of Section 1002, (b) by way of participation in  accordance with the provisions of Section 1004 or (c) by way of pledge or assignment of a security  interest in accordance with the provisions of Section 1005.  Any other attempted assignment or  transfer by any party hereto shall be null and void.  Nothing in this Agreement, expressed or  implied, shall be construed to confer upon any Person (other than the parties hereto, their respective  successors and assigns permitted hereby, participants to the extent provided in Section 1004, and,  to the extent expressly contemplated hereby, the Related Group of each of the Administrative  Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this  Agreement or any of the other Transaction Documents.  Assignments and Transfers by Lenders.   Any Lender may at any time assign to one or more assignees all or a portion of its rights and  obligations under this Agreement (including all or a portion of its Commitment and the Loans at  the time owing to it); provided that any such assignment shall be subject to the following  conditions:  (i) Minimum Amounts.  (A) in the case of an assignment of the entire remaining amount  of the assigning Lender's Commitment and/or the Loans at the  time owing to it or contemporaneous assignments to related  Approved Funds (determined after giving effect to such  assignments) that equal at least the amount specified in paragraph  (i)(B) of this Section in the aggregate or in the case of an  assignment to an Eligible Assignee, no minimum amount need be  assigned; and  (B) in any case not described in paragraph (i)(A) of this Section,  the aggregate amount of the Commitment (which for this purpose  includes Loans outstanding thereunder) or, if the applicable  Commitment is not then in effect, the principal outstanding  balance of the Loans of the assigning Lender subject to each such  

 

  114    assignment (determined as of the date the Assignment and  Assumption with respect to such assignment is delivered to the  Administrative Agent or, if "Trade Date" is specified in the  Assignment and Assumption, as of the Trade Date) shall not be  less than $5,000,000 (unless such assignment is made by a  Conduit Lender to an Eligible Assignee), unless each of the  Administrative Agent and, so long as the Conversion Date has not  occurred and no Event of Default has occurred and is continuing,  the Borrower otherwise consents (each such consent not to be  unreasonably withheld or delayed).  (ii) Proportionate Amounts. Each partial assignment shall be  made as an assignment of a proportionate part of all the assigning  Lender's rights and obligations under this Agreement with respect  to the Loan or the Commitment assigned.  (iii) Required Consents. No consent shall be required for any  assignment except to the extent required by paragraph (i)(B) of  this Section and the consent of the Borrower (such consent not to  be unreasonably withheld or delayed) shall be required unless (w)  an Event of Default has occurred and is continuing at the time of  such assignment, or (x) such assignment is to an Eligible  Assignee, or (y) such assignment is made by a Conduit Lender to  an Eligible Assignee, or (z) the Conversion Date shall have  occurred.  (iv) Assignment and Assumption. The parties to each assignment  shall execute and deliver to the Administrative Agent an  Assignment and Acceptance, together with a processing and  recordation fee of $3,500 (unless such assignment is made by a  Conduit Lender to an Eligible Assignee); provided that the  Administrative Agent may, in its sole discretion, elect to waive  such processing and recordation fee in the case of any assignment.  (v) No Assignment to Certain Persons. No such assignment  shall be made to (A) the Borrower or any of the Borrower's  Affiliates, (B) to any Defaulting Lender or any of its Subsidiaries,  or any Person who, upon becoming a Lender hereunder, would  constitute a Defaulting Lender or a Subsidiary thereof, or (C) a  Competitor.  (vi) No Assignment to Natural Persons. No such assignment  shall be made to a natural Person (or a holding company,  investment vehicle or trust for, or owned and operated for the  primary benefit of, a natural Person).  

 

  115    (vii) Certain Additional Payments. In connection with any  assignment of rights and obligations of any Defaulting Lender  hereunder, no such assignment shall be effective unless and until,  in addition to the other conditions thereto set forth herein, the  parties to the assignment shall make such additional payments to  the Administrative Agent in an aggregate amount sufficient, upon  distribution thereof as appropriate (which may be outright  payment, purchases by the assignee of participations or  subparticipations, or other compensating actions, including  funding, with the consent of the Borrower and the Administrative  Agent, the applicable Pro Rata Share of Loans previously  requested but not funded by the Defaulting Lender, to each of  which the applicable assignee and assignor hereby irrevocably  consent), to (x) pay and satisfy in full all payment liabilities then  owed by such Defaulting Lender to the Administrative Agent and  each other Lender hereunder (and interest accrued thereon), and  (y) acquire (and fund as appropriate) its full Pro Rata Share of all  Loans. Notwithstanding the foregoing, in the event that any  assignment of rights and obligations of any Defaulting Lender  hereunder shall become effective under applicable law without  compliance with the provisions of this paragraph, then the  assignee of such interest shall be deemed to be a Defaulting  Lender for all purposes of this Agreement until such compliance  occurs.   From and after the effective date of such assignment, the Eligible Assignee shall be a  Lender under the Transaction Documents, and the assigning Lender thereunder shall, to the extent  of the interest assigned by such Assignment and Acceptance, be released from its obligations under  this Agreement and the other Transaction Documents.  In the case of an Assignment and  Acceptance covering all of the assigning Lender’s rights and obligations under this Agreement,  such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of  Section 301(q) and (t) with respect to facts and circumstances occurring prior to the effective date  of such assignment.  Any assignment or transfer by a Lender of rights or obligations under this  Agreement that does not comply with this subsection shall be treated for purposes of this  Agreement as a sale by such Lender of a participation in such rights and obligations in accordance  with Section 1004.  Notwithstanding anything to the contrary contained herein, the Borrower shall  not be obligated to pay to the Eligible Assignee any amount under Section 301(q) or Section 301(t)  that is greater than the amount that the Borrower would have been obligated to pay such Eligible  Assignee’s assignor if such assigning Lender had not assigned to such Eligible Assignee any of its  rights under this Agreement, unless (i) the circumstances giving rise to such greater payments did  not exist at the time of such assignment, or (ii) the Borrower consented to the assignment to such  Eligible Assignee.  Section 1003 Register.  The Administrative Agent, acting solely for this purpose as an  agent of the Borrower, shall maintain at the Administrative Agent’s office a copy of each  Assignment and Assumption delivered to it and a register for the recordation of the names and  addresses of the Lenders, and the Aggregate Loan Principal Balance (and stated interest) owing  

 

  116    to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the  Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent  and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the  terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to  the contrary.  The Register shall be available for inspection by the Borrower or any Lender at any  reasonable time and from time to time upon reasonable prior notice.  In addition, at any time that  a request for a consent for a material or substantive change to the Transaction Documents is  pending, any Lender wishing to consult with other Lenders in connection therewith may request  and receive from the Administrative Agent a copy of the Register.  Section 1004 Participation.  (a) Any Lender may at any time, without the consent of,  or notice to, the Borrower, sell participations to any Person (other than a natural person, a  Competitor, the Borrower or an Affiliate of the Borrower) (each, a “Participant”) in all or a portion  of such Lender’s rights or obligations under this Agreement (including all or a portion of the Loans  owing to it); provided, that (a) such Lender’s obligations under this Agreement shall remain  unchanged, (b) such Lender shall remain solely responsible to the other Borrower for the  performance of such obligations and (c) the Borrower, and the Lender shall continue to deal solely  and directly with such Lender in connection with such Lender’s rights and obligations under this  Agreement.  Any agreement or instrument pursuant to which a Lender sells such a participation  shall provide that such Lender shall retain the sole right to enforce this Agreement and the other  Transaction Documents and to approve any amendment, modification or waiver of any provision  of this Agreement and the other Transaction Documents; provided, that such agreement or  instrument may provide that such Lender will not, without the consent of the Participant, agree to  any amendment, modification or waiver that would reduce the principal of, and interest rate on,  the Loans, or extend any regularly scheduled payment date for principal or interest or the Final  Maturity Date.  Subject to clause (b) below, the Borrower agrees that each Participant shall be  entitled to the benefits of Sections 301(q) and (t) to the same extent as if it were a Lender and had  acquired its interest by assignment pursuant to clause (1) above.    (b) Limitations on Participant Rights.  A Participant shall not be entitled to  receive any greater payment under Sections 301(q) and/or (t) than the applicable Lender would  have been entitled to receive with respect to the participation sold to such Participant, unless the  sale of the participation to such Participant is made with the Borrower’s prior written consent.   A Participant shall not be entitled to the benefits of Section 301(q) unless the Borrower is notified  of the participation sold to such Participant and such Participant agrees, for the benefit of the  Borrower, to comply with Section 301(q)(6) as though it were a Lender.  (c) Participant Register.  Each Lender that sells a participation shall maintain  a register on which it enters the name and address of each Participant and the principal amounts  (and stated interest) of each Participant’s interest in the Loans or other obligations under the  Transaction Documents (the “Participant Register”); provided that no Lender shall have any  obligation to disclose all or any portion of the Participant Register (including the identity of any  Participant or any information relating to a Participant’s interest in the Loans or its other  obligations under any Transaction Document) to any Person except to the extent that such  disclosure (x) is necessary to establish that such loan or other obligation is in registered form  under Section 5f.103-1(c) of the United States Treasury Regulations  or (y) is reasonably  requested by the Collateral Agent, the Administrative Agent, the Borrower, the Seller or the  

 

  117    Manager in connection with any policies and procedures relating to applicable sanctions, anti- bribery, anti-corruption or anti-money laundering laws, regulations or rules. The entries in the  Participant Register shall be conclusive absent manifest error, and such Lender shall treat each  Person whose name is recorded in the Participant Register as the owner of such participation for  all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of  doubt, neither the Borrower nor the Administrative Agent shall have any responsibility for  maintaining a Participant Register.  Section 1005 Certain Pledges.  Any Lender may at any time pledge or assign a security  interest in all or any portion of its rights under this Agreement (including under its Loans) to secure  obligations of such Lender, including any pledge or assignment to secure obligations to (i) a  Federal Reserve Bank, the European Central Bank or any other applicable central bank or  Governmental Authority, or (ii) a collateral agent or a security trustee in connection with the  funding by such Lender of all or a portion of its investment in the Loans, without notice to or  consent of the Borrower or any other party; provided, that no such pledge or assignment shall  release such Lender from any of its obligations hereunder or substitute any such pledgee or  assignee for such Lender as a party hereto.  Section 1006 Electronic Execution.  The words “execution,” “signed,” “signature,” and  words of like import in any Assignment and Assumption shall be deemed to include electronic  signatures or the keeping of records in electronic form, each of which shall be of the same legal  effect, validity or enforceability as a manually executed signature or the use of a paper-based  recordkeeping system, as the case may be, to the extent and as provided for in any applicable law,  including the Federal Electronic Signatures in Global and National Commerce Act, the New York  State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform  Electronic Transactions Act.  Section 1007 Consents, Amendments, Waivers, Etc.  Any consent or approval required  or permitted by this Agreement to be given by the Lenders may be given, and any term of this  Agreement, the other Transaction Documents or any other instrument related hereto or mentioned  herein may be amended, and the performance or observance by the Borrower of any terms of this  Agreement, the other Transaction Documents or such other instrument or the continuance of any  Event of Default may be waived (either generally or in a particular instance and either retroactively  or prospectively) with, but only with, the written consent of the Borrower and the written consent  of the Majority Lenders (unless otherwise specifically provided).  Notwithstanding the foregoing,  no amendment, modification or waiver shall:  (a) without the written consent of the Borrower and each Lender directly  affected thereby:  (i) reduce, delay or forgive the payment or repayment when due of any  Supplemental Principal Payment Amount, the unpaid principal of any Loans or any  fees or other amounts payable to any Lender hereunder or under any other  Transaction Document or reduce the amount or rate of interest (or fees) on the  Loans or the priority thereof (other than interest at the Default Rate accruing before  or after the date of any waiver by the Majority Lenders of the Event of Default  relating thereto);  

 

  118    (ii) postpone or extend any Payment Date or any other regularly  scheduled dates for payments of principal of, or interest on, the Loans or other  amounts payable to such Lender (it being understood that (A) a waiver of the  application of the default rate of interest pursuant to Section 301(i), and (B) any  vote to rescind any acceleration made pursuant to Section 802 of amounts owing  with respect to the Loans and other Outstanding Obligations shall require only the  approval of the Majority Lenders);   (iii) release all, or substantially all, or permit the creation of any Lien  (other than Permitted Encumbrances) on the Collateral ranking prior to or party  with the Lien created by this Agreement; and  (iv) change the pro rata nature of payments to and from a Lender, and  increase or extend the Commitment of a Lender.  (b) without the written consent of all of the Lenders, amend, modify or waive  this Section 1007, any other provision of this Agreement or any other Transaction Document  that expressly requires the consent of all of the Lenders, the definitions of “Eligible Container”,  “Majority Lenders”, “Asset Base”, “Aggregate Net Book Value”, or “Pro Rata Share”;  (c) without the written consent of the Collateral Agent, amend or waive  Article IX, the amount or time of payment of any fee payable for the Collateral Agent’s account  or any other provision applicable to the Collateral Agent;   (d) without the written consent of the Administrative Agent, amend or waive  Article XIV, the amount or time of payment of any fee payable for the Administrative Agent’s  account or any other provision applicable to the Administrative Agent;   (e) without the written consent of each affected Hedge Counterparty, (i)  amend, modify, waive or supplement any sections in this Agreement granting rights or benefits  with respect to Hedge Agreements or Hedge Counterparties if the effect of any such amendment,  modification, waiver or supplement is to modify in a manner adverse to such Hedge  Counterparty such rights or benefits; (ii) enter into any amendments, modifications, waivers or  supplements which would adversely affect or deprive such Hedge Counterparty of any rights  expressly granted to it under this Agreement or to subordinate any payment priority attributed to  such Hedge Counterparty; (iii) release all, or substantially all, or permit the creation of any Lien  (other than Permitted Encumbrances) on the Collateral ranking prior to or parri passu with the  Lien created by this Agreement; or (iv) waive an Event of Default if, at the time of such waiver,  the related Hedge Agreement has been previously terminated and the Hedge Counterparty is  owed any termination payments on account thereof; or  (f) without the written consent of each Conduit Lender, amend, modify or  waive the definition of Eligible Assignee or any of Sections 301(b), 301(d), 636, 1002, 1311 or  1406, in each case, in a manner that adversely impacts such Conduit Lender.  Notwithstanding anything to the contrary herein, no Defaulting Lender will have any right  to approve or disapprove any amendment, waiver or consent hereunder (and any amendment,  waiver or consent which by its terms requires the consent of all Lenders or each affected Lender  

 

  119    may be effected with the consent of the Lenders other than Defaulting Lenders), except that (1)  the Commitment of any Defaulting Lender may not be increased or extended without the consent  of such Lender, (2) the amount of principal and accrued fees and interest owing to any Defaulting  Lender may not be reduced without the consent of such Lender, and (3) any waiver, amendment  or modification requiring the consent of all Lenders or each affected Lender that by its terms affects  any Defaulting Lender more adversely than other affected Lenders will require the consent of such  Defaulting Lender.   In executing, or accepting the additional trusts created by, an amendment permitted by this  Article or the modification thereby of the trusts created by this Agreement, the Collateral Agent  shall be entitled to receive, and shall be fully protected in relying upon, an Opinion of Counsel  stating that all conditions precedent specified in this Agreement for the execution of such  amendment have been satisfied and that the execution of such amendment is authorized or  permitted by this Agreement. The Collateral Agent may, but shall not be obligated to, enter into  any such amendment which affects the Collateral Agent’s own rights, duties or immunities under  this Agreement or otherwise.   No waiver shall extend to or affect any obligation not expressly waived or impair any right  consequent thereon.  No course of dealing or delay or omission on the part of the Collateral Agent,  Administrative Agent or any Lender in exercising any right shall operate as a waiver thereof or  otherwise be prejudicial thereto.  No notice to or demand upon the Borrower shall entitle the  Borrower to other or further notice or demand in similar or other circumstances.  Prior to the execution of any amendment, modification, waiver or supplement pursuant to  this Section 1007, the Borrower shall provide a written notice (which may be in the form of an e- mail) to each Hedge Counterparty setting forth in general terms the substance of any such  amendment, modification, waiver or supplement.  Promptly after the execution of any amendment,  modification, waiver or supplement pursuant to this Section, the Borrower shall mail (which may  be in the form of an e-mail) to the Lenders and each Hedge Counterparty, a notice setting forth in  general terms the substance of such amendment, modification, waiver or supplement, together with  a copy of the text of such amendment, modification, waiver or supplement.  ARTICLE XI    CONDITIONS PRECEDENT   Section 1101 Conditions Precedent to Effectiveness of Agreement. The effectiveness of  this Agreement is subject to the condition precedent that the Collateral Agent, the Administrative  Agent and the Lenders shall have received all of the following, each duly executed and delivered,  in form and substance satisfactory to all of the initial Lenders:  (a) Certificate(s) of Secretary or Assistant Secretary or Officer; Other  Documents.  Separate certificates executed by the corporate secretary, assistant secretary or  authorized officer of each of the Manager, TAL, the Seller, the Container Service Provider and  the Borrower as of the Closing Date, certifying (i) that the respective company has the authority  to execute and deliver, and perform its respective obligations under each of the Transaction  Documents to which it is a party, and (ii) that attached are true, correct and complete copies of  

 

  120    the board resolutions and incumbency certificates of the related company in form and substance  satisfactory to each Lender as to such matters as the Lender shall reasonably require.  (b) Transaction Documents; Notes.  This Agreement and all other  Transaction Documents shall have been executed and delivered by the Borrower and all other  parties thereto, together with such other documents reasonably requested by the Administrative  Agent, the Collateral Agent or any Lender.  There shall have been delivered to the Administrative  Agent for the account of each Lender that has requested a Note, the appropriate Note, in each  case executed by the Borrower and in the amount, maturity and as otherwise provided herein.  (c) Opinions of Counsel.  Opinions from counsel to the Borrower, the Seller,  the Container Service Provider, TAL and the Manager, each dated the Closing Date and in form  and in substance satisfactory to each Lender, as to such matters as it shall reasonably require  including, without limitation, true sale, non-consolidation, enforceability, investment company  act, corporate matters, perfected security interest in the Collateral and such other matters incident  to the transactions contemplated herein as the Administrative Agent may reasonably request.  (d) Certificate as to Managed Containers.  A certificate from the Manager,  dated the Closing Date, certifying that it is managing all of the Managed Containers in  accordance with the Management Agreement in satisfactory form shall have been duly executed  and delivered.  (e) Fees.  The Borrower shall have paid all fees owing to the Administrative  Agent, the Collateral Agent and the Lenders, including the Upfront Fee.  (f) Matters regarding the Collateral.  The Administrative Agent and the  Lenders shall have received from the Borrower satisfactory evidence of (i) the existence or  validity of the Collateral, (ii) the perfection of the Collateral Agent’s security interest in the  Collateral, and (iii) compliance by the Borrower, the Seller, the Container Service Provider and  the Manager with all of their respective covenants, and the accuracy of all of their respective  warranties or representations, in each case to the extent such covenants, warranties or  representations relate to the Collateral.  (g) Notices.  The Borrower (or the Manager on its behalf) shall have delivered  notices of (i) the designation of the Borrower as an “Unrestricted Subsidiary” under the TCIL  Credit Agreement, and (ii) the designation of the Borrower and Collateral Agent as a “Managed  Equipment Owner” and “Managed Equipment Lender”, respectively, under the Intercreditor  Collateral Agreement in effect as of the Closing Date.  (h) Officer’s Certificate.  The Administrative Agent shall have received a  certificate from the Borrower, dated as of the Closing Date and signed by an Authorized Officer  of the Borrower, certifying (a) that no Default, Event of Default or Early Amortization Event  exists on such date and (b) all representations and warranties of the Borrower contained herein  and in each other Transaction Document are true and correct in all material respects.  (i) Further Assurances. All instruments and agreements in connection with  the transactions contemplated by this Agreement and the other Transaction Documents shall be  reasonably satisfactory in form and substance to the Administrative Agent, and the  

 

  121    Administrative Agent shall have received all information and copies of all certificates,  documents and papers, including good standing certificates, bring-down certificates and any  other records of company proceedings and governmental approvals, if any, which the  Administrative Agent reasonably may have requested in connection therewith, such documents  and papers, where appropriate, to be certified by proper company or governmental authorities.  Section 1102 Conditions Precedent to all Loans.  Each Loan (including any Loans on the  Closing Date) shall be subject to satisfaction of the following conditions precedent:  (a) Representations and Warranties.  The representations and warranties  contained in Section 501 of this Agreement are true and correct as though made on the date of  such Loan unless such representation or warranty expressly relates to an earlier date, in which  case, such representation or warranty was true and correct as of such earlier date.   (b) Performance by Borrower. On and as of such day, the Borrower has  performed in all material respects all of the agreements contained in this Agreement and the  other Transaction Documents to which it is a party to be performed by the Borrower at or prior  to such day.   (c) Early Amortization Event or Asset Base Deficiency.  Both before and  after giving effect to the Loan, no Asset Base Deficiency or Early Amortization Event shall have  occurred and be continuing unless, in each case, the Loan has been approved by each Lender.  (d) Funding Notice and Asset Base Certificate.  The Borrower shall have  delivered to the Administrative Agent a duly completed and executed (i) Funding Notice in  accordance with the terms of this Agreement and (ii) an Asset Base Certificate demonstrating  that no Asset Base Deficiency shall exist before and after the making of the requested Loan  (which calculations shall give effect to any Eligible Containers to be acquired with the proceeds  of such Loan).  (e) Event of Default.  No Event of Default, or event or condition that with the  passage of time or the giving of notice or both would constitute an Event of Default, shall have  occurred and be continuing.  (f) Conversion Date.  The Conversion Date shall not have occurred.   (g) Discharge of Existing Indebtedness.  If the Borrower requests that the  proceeds of the Loans be used in whole or in part to discharge in full any undischarged Liens on  the Containers to be acquired on such date, the Borrower shall provide the name of the related  lienholders, a pay-off letter from such lienholder and the related wiring instructions to the  Administrative Agent.  ARTICLE XII    EARLY AMORTIZATION EVENTS  Section 1201 Early Amortization Events.  As of any date of determination, the existence  of any one of the following events or conditions shall constitute an Early Amortization Event:  

 

  122    (1) The occurrence of (i) an Event of Default, (ii) a breach by the Seller of any  of its obligations under the Contribution and Sale Agreement or any other  Transaction Document to which it is a party, which breach materially and  adversely affects the interests of any Lender and which continues, if curable,  for sixty (60) days after the occurrence of such breach, or (iii) any  representation or warranty of the Seller made in the Contribution and Sale  Agreement or any other Transaction Document to which it is a party shall  prove to be inaccurate in any respect when made which materially and  adversely affects the interest of any Lender, and such inaccuracy, if curable,  continues for thirty (30) days after the date on which there has been given  to the Borrower by the Collateral Agent (at the direction of a Lender), or to  the Borrower and the Collateral Agent by any Lender, a written notice  specifying such inaccuracy and requiring it to be remedied, provided,  however, that if such inaccuracy is capable of cure and the Seller or the  Borrower is diligently attempting to effect such cure at the end of such thirty  (30) day period, the Seller and the Borrower shall be entitled to an additional  thirty (30) day period in which to complete such cure; for the avoidance of  doubt, a breach of any Container Representation and Warranty shall be  considered to have been cured upon the repurchase by the Seller of the  applicable Container and Related Assets with respect thereto;  (2) a Manager Default shall have occurred and then be continuing;  (3) if on any Payment Date an Asset Base Deficiency shall exist;  (4) as of each Payment Date occurring after the Amendment Number 3  Effective Date, the Borrower EBIT to Borrower Cash Interest Expense  Ratio (as reported in the related Manager Report) shall be less than 1.3 to  1.0; and  (5) as of any Payment Date, the Weighted Average Age of the Eligible  Containers (as reported in the related Manager Report) shall be greater than  nine (9.0) years.  If the Early Amortization Event described in either of clauses (4) or (5) occurs, such condition  shall be deemed cured if it does not exist on any subsequent Payment Date as reported in the  Manager Report delivered on the Determination Date for such Payment Date, such cure to become  effective on such Payment Date.  Except as set forth in the immediately preceding sentence, if an  Early Amortization Event exists on any Payment Date, then such Early Amortization Event shall  be deemed to continue until the Business Day on which the Majority Lenders waive, in writing,  such Early Amortization Event. The Collateral Agent shall promptly provide notice of any such  waiver to each Hedge Counterparty.  Section 1202 Remedies.  If an Early Amortization Event shall have occurred and then be  continuing, the Collateral Agent shall have in addition to the rights provided in the Transaction  Documents, all rights and remedies provided under all Applicable Laws.  

 

  123    ARTICLE XIII    MISCELLANEOUS PROVISIONS  Section 1301 Compliance Certificates and Opinions.  Upon any application or request by  the Borrower to the Collateral Agent to take any action under any provision of this Agreement, the  Borrower shall furnish to the Collateral Agent a certificate stating that all conditions precedent, if  any, provided for in this Agreement have been complied with and, if required pursuant to the terms  of this Agreement, an Opinion of Counsel stating that in the opinion of such counsel all such  conditions precedent, if any, have been complied with, except that in the case of any such  application or request as to which the furnishing of such documents is specifically required by any  provision of this Agreement relating to such particular application or request, no additional  certificate or opinion need be furnished.  (a) Every certificate or opinion with respect to compliance with a condition or  covenant provided for in this Agreement shall include:  (i) a statement that each individual signing such certificate or opinion  has read such covenant or condition and the definitions herein relating thereto;  (ii) a brief statement as to the nature and scope of the examination or  investigation upon which the statements or opinions contained in such certificate  or opinion are based;  (iii) a statement that, in the opinion of each such individual, he has made  such examination or investigation as is necessary to enable him to express an  informed opinion as to whether such covenant or condition has been complied with;  and  (b) a statement as to whether, in the opinion of each such individual, such  condition or covenant has been complied with; provided that in the case of an opinion delivered  by a law firm, such opinion may, but need not, make such statements with regard to the individual  signing such opinion.  Section 1302 Form of Documents Delivered to Collateral Agent.   In any case where  several matters are required to be certified by, or covered by an opinion of, any specified Person,  it is not necessary that all such matters be certified by, or covered by the opinion of, only one such  Person, or that they be so certified or covered by only one document, but one such Person may  certify or give an opinion with respect to some matters and one or more other such Persons as to  other matters, and any such Person may certify or give an opinion as to such matters in one or  several documents.  (a) Any certificate or opinion may be based, insofar as it relates to legal matters,  upon a certificate or opinion of, or representations by, another Person, unless the Person providing  such certificate or opinion knows that the certificate or opinion or representations with respect to  the matters upon which such Person’s certificate or opinion is based are erroneous.  

 

  124    (b) Where any Person is required to make, give or execute two or more  applications, requests, consents, certificates, statements, opinions or other instruments under this  Agreement, they may, but need not, be consolidated and form one instrument.  Section 1303 Acts of Lenders.    (a) Any request, demand, authorization, direction, notice, consent, waiver or  other action provided by this Agreement to be given or taken by the Lenders may be (i) embodied  in and evidenced by one or more instruments of substantially similar tenor signed by the Lenders  in person or by an agent duly appointed in writing, (ii) evidenced by the written consent or  direction of the Lenders of the specified percentage of the principal amount of the Loans, or (iii)  evidenced by a combination of such instrument or instruments; and, except as herein otherwise  expressly provided, such action shall become effective when such instrument or instruments, or  consent or direction, are delivered to the Collateral Agent and, where it is hereby expressly  required, to the Borrower. Proof of execution of any such instrument or of a writing appointing  any such agent or of the execution of any written consent or direction shall be sufficient for any  purpose of this Agreement and conclusive in favor of the Collateral Agent and the Borrower, if  made in the manner provided in this Section.  (b) The fact and date of the execution by any Person of any such instrument  or writing may be proved by the affidavit of a witness of such execution or by a certificate of a  notary public or other officer authorized by law to take acknowledgments of deeds, certifying  that the individual signing such instrument or writing acknowledged to him the execution  thereof. Where such execution is by a signer acting in a capacity other than his individual  capacity, such certificate or affidavit shall also constitute sufficient proof of his authority. The  fact and date of the execution of any such instrument or writing, or the authority of the Person  executing the same, may also be proved in any other manner which the Collateral Agent deems  sufficient.  Section 1304 Expenses.  The Borrower agrees to pay (a) the reasonable costs of producing  and reproducing this Agreement, the other Transaction Documents and the other agreements and  instruments mentioned herein, (b) the reasonable and documented fees, expenses and  disbursements of the Administrative Agent’s special counsel and any local counsel to the  Administrative Agent actually incurred in connection with the preparation, administration, or  interpretation of or due diligence related to the Transaction Documents and other instruments  mentioned herein (regardless of whether this loan facility is closed), any amendments,  modifications, approvals, consents or waivers hereto or hereunder, or the cancellation of any  Transaction Document upon payment in full in cash of all of the Outstanding Obligations or  pursuant to any terms of such Transaction Document providing for such cancellation, (c) the  reasonable and documented fees, expenses and disbursements of the Administrative Agent or any  of its Affiliates actually incurred by the Administrative Agent or such Affiliate in connection with  the preparation, syndication, administration or interpretation of the Transaction Documents and  other instruments mentioned herein, (d) any reasonable and documented fees, costs, expenses and  bank charges, including bank charges for returned checks, incurred by the Administrative Agent  in establishing, maintaining or handling agency accounts, lock box accounts and other accounts  for the collection of any of the Collateral, (e) all reasonable and documented out-of-pocket  expenses (including without limitation reasonable and documented attorneys’ fees and costs, and  

 

  125    reasonable and documented consulting, accounting, audit, due diligence, field examination,  investment banking and similar professional fees and charges) actually incurred by the Lenders  and/or the Administrative Agent in connection with (x) the enforcement of or preservation of rights  under any of the Transaction Documents against the Borrower or the administration thereof after  the occurrence and during the continuance of an Event of Default and (y) any litigation, proceeding  or dispute whether arising hereunder or otherwise, in any way related to the Administrative  Agent’s relationship with the Borrower, provided, that, notwithstanding anything to the contrary  in any Transaction Document, the Borrower shall only be obligated to pay the reasonable and  documented fees and expenses of (1) one counsel for the Administrative Agent and the Lenders in  connection with this clause (e) (to the extent such Lenders are not conflicted with the  Administrative Agent in any proceeding described in or resulting from any circumstance described  in this clause (e)) and (2) separate counsel for each Lender that is conflicted with the  Administrative Agent in connection with this clause (e); and (f) all reasonable and documented  fees, expenses and disbursements of Collateral Agent incurred in connection with UCC searches  or UCC filings.  The covenants contained in this Section 1304 shall survive payment or satisfaction  in full of all Outstanding Obligations.  Section 1305 Limitation of Right.  Except as expressly set forth in this Agreement, this  Agreement shall be binding upon the Borrower, the Lenders and their respective successors and  permitted assigns and shall not inure to the benefit of any Person other than the parties hereto, the  Lenders and the Manager as provided herein. Notwithstanding the previous sentence, the parties  hereto, the Seller and the Manager acknowledge that each Hedge Counterparty is an express third  party beneficiary hereof entitled to enforce its rights hereunder as if actually a party hereto.  Section 1306 Severability.  If any provision of this Agreement is held to be in conflict  with any applicable statute or rule of law or is otherwise held to be unenforceable for any reason  whatsoever, such circumstances shall not have the effect of rendering the provision in question  inoperative or unenforceable in any other case or circumstance, or of rendering any other provision  or provisions herein contained invalid, inoperative, or unenforceable to any extent whatsoever.  The invalidity of any one or more phrases, sentences, clauses or Sections of this Agreement  shall not affect the remaining portions of this Agreement, or any part thereof.  Section 1307 Notices.  (a)  All demands, notices, instructions, directions and  communications hereunder shall be in writing, personally delivered, or by facsimile (with  subsequent telephone confirmation of receipt thereof), or sent by internationally recognized  overnight courier service to:  Manager: Triton Container International Limited  c/o Triton Container International, Incorporated  of North America  100 Manhattanville Road  Purchase, New York 10577-2135  Attn:  Michael S. Pearl   Fax: 914-697-2526  

 

  126     with a copy to:   Triton Container International Limited  c/o Triton Container International, Incorporated  of North America  100 Manhattanville Road  Purchase, New York 10577-2135  Attn: Marc A. Pearlin  Fax: 914-697-2526    Borrower: TIF Funding LLC  c/o Triton Container International, Incorporated  of North America  100 Manhattanville Road  Purchase, New York 10577-2135  Attn: Michael S. Pearl   with a copy to:     Triton Container International Limited  c/o Triton Container International, Incorporated  of North America  100 Manhattanville Road  Purchase, New York 10577-2135  Attn: Michael S. Pearl  Fax: 914-697-2526    and     Triton Container International Limited  c/o Triton Container International, Incorporated  of North America  100 Manhattanville Road  Purchase, New York 10577-2135  Attn:  Marc A. Pearlin  Fax: 914-697-2526  

 

  127    Lenders:    Wells Fargo Bank, National Association  550 South Tryon Street  Charlotte, NC 28202  Email:  Emily.Alt@wellsfargo.com    ABN AMRO Capital USA LLC  100 Park Avenue, Floor 17  New York, New York 10017  Email: Ross.Briggs@abnamro.com    Administrative Agent Wells Fargo Bank, National Association  550 South Tryon Street  Charlotte, NC 28202  Email:  Emily.Alt@wellsfargo.com    Collateral Agent: Wilmington Trust, National Association  1100 North Market Street  Rodney Square North  Wilmington, Delaware  Attention: Corporate Trust Administration  /Robert Perkins  Fax: 302-651-8947    Hedge Counterparty: To its address as set forth in the applicable Hedge  Agreement    or at such other address as shall be designated by such party in a written notice to the other parties.  Any notice required or permitted to be given to the Lenders shall be given by certified first class  mail, postage prepaid (return receipt requested), or by courier, or by facsimile, with subsequent  telephone confirmation of receipt thereof, in each case at the address of the Lender or to the  telephone and fax number furnished by the Lender. Notice shall be effective and deemed received  (a) two (2) days after being delivered to the courier service, if sent by courier, (b) upon receipt of  confirmation of transmission, if sent by fax, or (c) when delivered, if delivered by hand.  Section 1308 Consent to Jurisdiction.  ANY LEGAL SUIT, ACTION OR  PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR ANY  TRANSACTION CONTEMPLATED HEREBY, MAY BE INSTITUTED IN ANY FEDERAL  OR STATE COURT IN THE COUNTY OF NEW YORK, STATE OF NEW YORK AND EACH  PARTY HERETO HEREBY WAIVES ANY OBJECTION WHICH IT MAY NOW OR  HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR  PROCEEDING, AND, SOLELY FOR THE PURPOSES OF THIS AGREEMENT, EACH  PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE  JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING.  Section 1309 Captions.  The captions or headings in this Agreement are for convenience  only and in no way define, limit or describe the scope or intent of any provisions or sections of  this Agreement.  

 

  128    Section 1310 Governing Law.  THIS AGREEMENT SHALL BE CONSTRUED BY  AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW  YORK, INCLUDING SECTION 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS  LAW BUT OTHERWISE WITHOUT GIVING EFFECT TO THE PRINCIPLES OF  CONFLICTS OF LAW, AND THE RIGHTS, OBLIGATIONS AND REMEDIES OF THE  PARTIES HERETO SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF  THE STATE OF NEW YORK.  Section 1311 No Petition.    (a) The Collateral Agent, on its own behalf, hereby covenants and agrees, and  each Lender by its funding of the Loans shall be deemed to covenant and agree, that it will not  institute (or cause or direct or solicit any Person to institute) against the Borrower any  bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other  proceedings under any federal or state bankruptcy or similar law, at any time other than on a date  which is at least one (1) year and one (1) day after the last date on which the Loans are  Outstanding.  (b) Each party hereto agrees, for the benefit of the holders of the privately or  publicly placed indebtedness for borrowed money on behalf of each Conduit Lender, not, prior  to the date which is one year and one day after the payment in full of all such indebtedness, to  acquiesce, petition or otherwise, directly or indirectly, invoke, or cause such Conduit Lender to  invoke, the process of any Governmental Authority for the purpose of (a) commencing or  sustaining a case against such Conduit Lender under any federal or state bankruptcy, insolvency  or similar law (including the Federal Bankruptcy Code), (b) appointing a receiver, liquidator,  assignee, trustee, custodian, sequestrator or other similar official for such Conduit Lender, or  any substantial part of its property, or (c) ordering the winding up or liquidation of the affairs of  such Conduit Lender.  (c) Notwithstanding anything contained in this Agreement to the contrary,  no Conduit Lender shall have any obligation to pay any amounts owing under this Agreement  unless and until such Conduit Lender has received such amounts pursuant to this Agreement.  The parties hereto hereby agree that no amount owing hereunder constituting fees,  indemnities or expenses shall constitute a claim (as defined in Section 101 or Tittle 11 of the  United States Bankruptcy Code or any similar law in any other jurisdiction) against any  Conduit Lender, and no Conduit Lender shall not be required to pay such amounts, unless  such Conduit Lender has received cash pursuant to this Agreement sufficient to pay such  amounts, and such amounts are not necessary to pay outstanding indebtedness of such  Conduit Lender.  (d) The provisions of this Section 1311 shall survive the termination of the  Commitments and repayment in full of the Outstanding Obligations and the termination of the  Loan Agreement.  Section 1312 WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO  HEREBY IRREVOCABLY WAIVES, AS AGAINST THE OTHER PARTIES HERETO, ANY  RIGHTS IT MAY HAVE TO A JURY TRIAL IN RESPECT OF ANY CIVIL ACTION OR  

 

  129    PROCEEDING (WHETHER ARISING IN CONTRACT OR TORT OR OTHERWISE),  INCLUDING ANY COUNTERCLAIM, ARISING UNDER OR RELATING TO THIS  AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT, INCLUDING IN RESPECT  OF THE NEGOTIATION, ADMINISTRATION OR ENFORCEMENT HEREOF OR  THEREOF.  Section 1313 Waiver of Immunity.  To the extent that any party hereto or any of its  property is or becomes entitled at any time to any immunity on the grounds of sovereignty or  otherwise from any legal actions, suits or proceedings, from set-off or counterclaim, from the  jurisdiction or judgment of any competent court, from service of process, from execution of a  judgment, from attachment prior to judgment, from attachment in aid of execution, or from  execution prior to judgment, or other legal process in any jurisdiction, such party, for itself and its  successors and assigns and its property, does hereby irrevocably and unconditionally waive, and  agrees not to plead or claim, any such immunity with respect to its obligations, liabilities or any  other matter under or arising out of or in connection with this Agreement, the other Transaction  Documents or the subject matter hereof or thereof, subject, in each case, to the provisions of the  Transaction Documents and mandatory requirements of Applicable Law.  Section 1314 Judgment Currency.  The parties hereto (A) acknowledge that the matters  contemplated by this Agreement are part of an international financing transaction and (B) hereby  agree that (i) specification and payment of Dollars is of the essence, (ii) Dollars shall be the  currency of account in the case of all obligations under the Transaction Documents unless  otherwise expressly provided herein or therein, (iii) the payment obligations of the parties under  the Transaction Documents shall not be discharged by an amount paid in a currency or in a place  other than that specified with respect to such obligations, whether pursuant to a judgment or  otherwise, except to the extent actually received by the Person entitled thereto and converted into  Dollars by such Person (it being understood and agreed that, if any party hereto shall so receive an  amount in a currency other than Dollars, it shall (A) if it is not the Person entitled to receive  payment, promptly return the same (in the currency in which received) to the Person from whom  it was received or (B) if it is the Person entitled to receive payment, either, in its sole discretion,  (x) promptly return the same (in the currency in which received) to the Person from whom it was  received or (y) subject to reasonable commercial practices, promptly cause the conversion of the  same into Dollars), (iv) to the extent that the amount so paid on prompt conversion to Dollars  under normal commercial practices does not yield the requisite amount of Dollars, the obligee of  such payment shall have a separate cause of action against the party obligated to make the relevant  payment for the additional amount necessary to yield the amount due and owing under the  Transaction Documents, (v) if, for the purpose of obtaining a judgment in any court with respect  to any obligation under any of the Transaction Documents, it shall be necessary to convert to any  other currency any amount in Dollars due thereunder and a change shall occur between the rate of  exchange applied in making such conversion and the rate of exchange prevailing on the date of  payment of such judgment, the obligor in respect of such obligation will pay such additional  amounts (if any) as may be necessary to insure that the amount paid on the date of payment is the  amount in such other currency which, when converted into Dollars and transferred to New York  City, New York, in accordance with normal banking procedures, will result in realization of the  amount then due in Dollars and (vi) any amount due under this paragraph shall be due as a separate  debt and shall not be affected by or merged into any judgment being obtained for any other sum  due under or in respect of the Transaction Documents.  

 

  130    Section 1315 Consents and Approvals.  If a consent or approval from any Person (other  than the Collateral Agent, the Administrative Agent, the Borrower and any Lender (including any  Conduit Lender)) is required to be provided to the Borrower under this Agreement, such consent  or approval shall be deemed to have been given if the Borrower does not receive a written objection  from such Person within ten (10) Business Days after a written request by the Borrower for such  consent or approval shall have been given.  Section 1316 Counterparts; Signatures.  This Agreement may be executed in any number  of counterparts, all of which shall constitute one and the same instrument, and any party hereto  may execute this Agreement by signing and delivering one or more counterparts.  This Agreement  may be executed by an authorized individual on behalf of each party hereto by means of (i) an  electronic signature that complies with the federal Electronic Signatures in Global and National  Commerce Act, state enactments of the Uniform Electronic Transactions Act, and/or any other  relevant electronic signatures law, in each case to the extent applicable; (ii) an original manual  signature; or (iii) a faxed, scanned, or photocopied manual signature. Each electronic signature or  faxed, scanned, or photocopied manual signature shall for all purposes have the same validity,  legal effect, and admissibility in evidence as an original manual signature. Each party hereto shall  be entitled to conclusively rely upon, and shall have no liability with respect to, any electronic  signature or faxed, scanned, or photocopied manual signature of any other party and shall have no  duty to investigate, confirm or otherwise verify the validity or authenticity thereof.   Notwithstanding the foregoing, with respect to any notice provided for in this Agreement or any  instrument required or permitted to be delivered hereunder, any party hereto receiving or relying  upon such notice or instrument shall be entitled to request execution thereof by original manual  signature as a condition to the effectiveness thereof.  Section 1317 PATRIOT Act.  The parties hereto acknowledge that in accordance with the  Customer Identification Program (CIP) requirements under the USA PATRIOT Act and its  implementing regulations, the Collateral Agent in order to help fight the funding of terrorism and  money laundering, is required to obtain, verify, and record information that identifies each person  or legal entity that establishes a relationship or opens an account with the Collateral Agent. Each  party hereby agrees that it shall provide the Collateral Agent with such information as the  Collateral Agent may request that will help Collateral Agent to identify and verify each party’s  identity, including without limitation each party’s name, physical address, tax identification  number, organizational documents, certificate of good standing, license to do business, or other  pertinent identifying information.  Section 1318 Indemnification.    (a) The Borrower shall indemnify the Administrative Agent (and any sub- agent thereof), each Lender and each Person in its Related Group and each officer, director or  agents of each of the foregoing Persons (each such Person being called an “Indemnitee”) against,  and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and  related expenses (including (A) special, indirect, consequential or punitive damages or any  liabilities actually incurred or paid by any Indemnitee to a third party that does not also have  rights as an Indemnitee under this Section 1318 and (B) subject to the final proviso in this  paragraph, the fees, charges and disbursements of any external counsel for any Indemnitee),  incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the  

 

  131    Borrower arising out of, in connection with, or as a result of (i) the execution or delivery of this  Agreement, any other Transaction Document or any agreement or instrument contemplated  hereby or thereby, the performance by the parties hereto of their respective obligations hereunder  or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any  Loan or the use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence  or release of hazardous materials on or from any property owned or operated by the Borrower,  or any environmental liability related in any way to the Borrower or any of its Subsidiaries, (iv)  any civil penalty or fine assessed by OFAC against, and all reasonable costs and expenses  (including reasonable counsel fees and disbursements) incurred in connection with defense  thereof by, an Indemnitee as a result of conduct of the Borrower or the Manager that violates a  sanction enforced by OFAC or (v) any actual claim, litigation, investigation or proceeding  relating to any of the foregoing, whether based on contract, tort or any other theory, whether  brought by a third party or by the Borrower and regardless of whether any Indemnitee is a party  thereto, provided that such indemnity shall not, as to any Indemnitee, be available to the extent  that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of  competent jurisdiction by final and nonappealable judgment to have resulted from the gross  negligence or willful misconduct of such Indemnitee (and, upon any such determination, any  indemnification payments with respect to such indemnified matter or related costs and expenses  previously received by such Indemnitee shall be promptly reimbursed by such Indemnitee), or  (y) result from a claim brought by the Borrower against an Indemnitee for breach in bad faith of  such Indemnitee’s obligations hereunder or under any other Transaction Document, if the  Borrower has obtained a final and nonappealable judgment in its favor on such claim as  determined by a court of competent jurisdiction; provided, further, that, notwithstanding  anything to the contrary in any Transaction Document, the Borrower shall only be obligated to  pay the reasonable and documented fees and expenses of (x) one counsel for the Administrative  Agent and the Lenders (to the extent such Lenders are not conflicted with the Administrative  Agent in any proceeding described in or resulting from any circumstance described in clauses (i)  through (v) above) and (y) separate counsel for each Lender that is conflicted with the  Administrative Agent in any proceeding described in or resulting from any circumstance  described in clauses (i) through (v) above.  (b) To the extent that the Borrower fails to pay any amount required to be  paid to the Administrative Agent, under clause (a) hereof, each Lender severally agrees to pay  to the Administrative Agent, such Lender’s pro rata share (determined as of the time that the  unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided, that  the unreimbursed expense or indemnified payment, claim, damage, liability or related expense,  as the case may be, was incurred by or asserted against the Administrative Agent in its capacity  as such.  (c) To the extent permitted by applicable law, none of the Borrower, the  Administrative Agent, the Collateral Agent, any Lender or any other Indemnitee shall assert, and  each of such Persons hereby waives, any claim against any other of such Persons, on any theory  of liability, for special, indirect, consequential or punitive damages or any liabilities based upon  any theory of lost profits (as opposed to actual or direct damages) arising out of, in connection  with or as a result of, this Agreement or any agreement or instrument contemplated hereby, the  transactions contemplated therein, any Loan or the use of proceeds thereof; provided, however,  that nothing in this sentence shall prevent any Indemnitee that is entitled to indemnification under  

 

  132    Section 1318(a) for any such damages or liabilities from seeking indemnification for such  liabilities (to the extent paid to a third party that does not also have rights as an Indemnitee under  this Section 1318) from the Borrower thereunder.  (d) The agreements in this Section 1318 shall survive the resignation of the  Administrative Agent, the replacement of any Lender, and the repayment, satisfaction or  discharge of all Outstanding Obligations.  Section 1319 Multiple Roles.  The parties expressly acknowledge and consent to  Wilmington Trust, National Association acting in the multiple capacities of Securities  Intermediary, and in the capacity as Collateral Agent. Wilmington Trust, National Association  may, in such multiple capacities, discharge its separate functions fully, without hindrance or regard  to conflict of interest principles or other breach of duties to the extent that any such conflict or  breach arises from the performance by Wilmington Trust, National Association of express duties  set forth in this Agreement and any other transaction documents in any of such capacities, all of  which defenses, claims or assertions are hereby expressly waived by the other parties hereto except  in the case of negligence (other than errors in judgment) and willful misconduct by Wilmington  Trust, National Association.  Section 1320 Acknowledgement and Consent to Bail-In of Affected Financial  Institutions.  Notwithstanding anything to the contrary in this Agreement, any other Transaction  Document or in any other agreement, arrangement or understanding among any such parties, each  party hereto acknowledges that any liability of any Affected Financial Institution arising under this  Agreement or the other Transaction Documents, to the extent such liability is unsecured, may be  subject to the write-down and conversion powers of the applicable Resolution Authority and agrees  and consents to, and acknowledges and agrees to be bound by:  (a) the application of any Write-Down and Conversion Powers by the  applicable Resolution Authority to any such liabilities arising hereunder which may be payable  to it by any party hereto that is an Affected Financial Institution; and  (b) the effects of any Bail-in Action on any such liability, including, if  applicable:  (i) a reduction in full or in part or cancellation of any such liability;  (ii) a conversion of all, or a portion of, such liability into shares or other  instruments of ownership in such Affected Financial Institution, its parent  undertaking, or a bridge institution that may be issued to it or otherwise conferred  on it, and that such shares or other instruments of ownership will be accepted by it  in lieu of any rights with respect to any such liability under this Agreement or any  other Transaction Document ; or  (iii) the variation of the terms of such liability in connection with the  exercise of the write-down and conversion powers of the applicable Resolution  Authority.  For purposes of this Section 1320, the following terms have the following meanings:  

 

  133    “Affected Financial Institution”: (a) any EEA Financial Institution or (b) any UK Financial  Institution.  “Bail-In Action”: The exercise of any Write-Down and Conversion Powers by the  applicable Resolution Authority in respect of any liability of an Affected Financial  Institution.  “Bail-In Legislation”: (a) with respect to any EEA Member Country implementing Article  55 of Directive 2014/59/EU of the European Parliament and of the Council of the European  Union, the implementing law, regulation, rule or requirement for such EEA Member  Country from time to time which is described in the EU Bail-In Legislation Schedule and  (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009  (as amended from time to time) and any other law, regulation or rule applicable in the  United Kingdom relating to the resolution of unsound or failing banks, investment firms  or other financial institutions or their affiliates (other than through liquidation,  administration or other insolvency proceedings).  “EEA Financial Institution”: (a) any credit institution or investment firm established in any  EEA Member Country which is subject to the supervision of an EEA Resolution Authority,  (b) any entity established in an EEA Member Country which is a parent of an institution  described in clause (a) of this definition, or (c) any financial institution established in an  EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b)  of this definition and is subject to consolidated supervision with its parent;   “EEA Member Country”: any of the member states of the European Union, Iceland,  Liechtenstein, and Norway.  “EEA Resolution Authority”: any public administrative authority or any person entrusted  with public administrative authority of any EEA Member Country (including any delegee)  having responsibility for the resolution of any EEA Financial Institution.  “EU Bail-In Legislation Schedule”: the EU Bail-In Legislation Schedule published by the  Loan Market Association (or any successor person), as in effect from time to time.   “Resolution Authority” means any EEA Resolution Authority or, with respect to any UK  Financial Institution, a UK Resolution Authority.  “UK Financial Institution” means any BRRD Undertaking (as such term is defined under  the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom  Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA  Handbook (as amended from time to time) promulgated by the United Kingdom Financial  Conduct Authority, which includes certain credit institutions and investment firms, and  certain affiliates of such credit institutions or investment firms.  “UK Resolution Authority” means the Bank of England or any other public administrative  authority having responsibility for the resolution of any UK Financial Institution.  

 

  134    “Write-Down and Conversion Powers”: (a) with respect to any EEA Resolution Authority,  the write-down and conversion powers of such EEA Resolution Authority from time to  time under the Bail-In Legislation for the applicable EEA Member Country, which write- down and conversion powers are described in the EU Bail-In Legislation Schedule and (b)  with respect to the United Kingdom, any powers of the applicable Resolution Authority  under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of  any UK Financial Institution or any contract or instrument under which that liability arises,  to convert all or part of that liability into shares, securities or obligations of that person or  any other person, to provide that any such contract or instrument is to have effect as if a  right had been exercised under it or to suspend any obligation in respect of that liability or  any of the powers under that Bail-In Legislation that are related to or ancillary to any of  those powers.  Section 1321   Acknowledgement Regarding Any Supported QFCs.  To the extent that  the Transaction Documents provide support through a guarantee or otherwise, for any Hedge  Agreements or any other agreement or instrument that is a QFC (such support, “QFC Credit  Support”, and each such QFC, a “Supported QFC”), the parties acknowledge and agree as follows  with respect to the resolution power of the Federal Deposit Insurance Corporation under the  Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer  Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution  Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below  applicable notwithstanding that the Transaction Documents and any Supported QFC may in fact  be stated to be governed by the laws of the State of New York and/or of the United States or any  other state of the United States):  In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes  subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported  QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such  Supported QFC and such QFC Credit Support, and any rights in property securing such Supported  QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent  as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC  and such QFC Credit Support (and any such interest, obligation and rights in property) were  governed by the laws of the United States or a state of the United States. In the event a Covered  Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S.  Special Resolution Regime, Default Rights under the Transaction Documents that might otherwise  apply to such Supported QFC or any QFC Credit Support that may be exercised against such  Covered Party are permitted to be exercised to no greater extent than such Default Rights could be  exercised under the U.S. Special Resolution Regime if the Supported QFC and the Transaction  Documents were governed by the laws of the United States or a state of the United States. Without  limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with  respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect  to a Supported QFC or any QFC Credit Support.  For purposes of this Section 1321, the following terms have the following meanings:  “BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and  interpreted in accordance with, 12 U.S.C. § 1841(k)) of such party.  

 

  135    “Covered Entity” means any of the following:  (i) a “covered entity” as that term is defined  in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that  term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a  “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. §  382.2(b).  “Covered Party” has the meaning provided in this Section 1321.  “Default Right” has the meaning assigned to that term in, and shall be interpreted in  accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.  “QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be  interpreted in accordance with, 12 U.S.C. § 5390(c)(8)(D).  “QFC Credit Support” has the meaning provided in this Section 1321.  “Supported QFC” has the meaning provided in this Section 1321.  “U.S. Special Resolution Regimes” has the meaning provided in this Section 1321.    ARTICLE XIV    THE ADMINISTRATIVE AGENT  Section 1401 Authorization and Action.  (a) Each Lender hereby designates and appoints Wells Fargo Bank, National  Association as the Administrative Agent, and authorizes Wells Fargo Bank, National  Association to take such actions as agent on its behalf and to exercise such powers as are  delegated to the Administrative Agent by the terms of this Agreement and the other Transaction  Documents, together with such powers as are reasonably incidental thereto.  The Administrative  Agent shall not have any duties or responsibilities, except those expressly set forth herein, or any  fiduciary relationship with any Lender and no implied covenants, functions, responsibilities,  duties, obligations or liabilities on the part of the Administrative Agent shall be read into this  Agreement or otherwise exist for the Administrative Agent.  In performing its functions and  duties hereunder, the Administrative Agent shall act solely as agent for the related Lenders and  does not assume nor shall be deemed to have assumed any obligation or relationship of trust or  agency with or for the Borrower, the Seller or the Manager or any of their respective successors  or assigns. The Administrative Agent shall not be required to take any action which exposes the  Administrative Agent to personal liability or which is contrary to this Agreement, any other  Transaction Document or applicable law. The appointment and authority of the Administrative  Agent hereunder shall terminate at the time of the indefeasible payment in full of all amounts  due under the Transaction Documents.  Section 1402 Delegation of Duties.  

 

  136    The Administrative Agent may execute any of its duties under this Agreement by or  through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters  pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or  misconduct of any agents or attorneys-in-fact selected by it with reasonable care.  Section 1403 Exculpatory Provisions.  (a) The Administrative Agent, and its directors, officers, agents or  employees, shall not be (i) liable for any action lawfully taken or omitted to be taken by it or  them under or in connection with this Agreement (except for its, their or such Person’s own gross  negligence or willful misconduct) or (ii) responsible in any manner to any of the Lenders for any  recitals, statements, representations or warranties made by the Borrower contained in this  Agreement, any other Transaction Document or in any certificate, report, statement or other  document referred to or provided for in, or received under or in connection with, this Agreement,  any other Transaction Document or for the value, validity, effectiveness, genuineness,  enforceability or sufficiency of this Agreement, any other Transaction Document or any other  document furnished in connection herewith, or for any failure of the Borrower to perform its  obligations hereunder, or for the satisfaction of any condition specified in Article XI.  The  Administrative Agent shall not be under any obligation to any Lender to ascertain or to inquire  as to the observance or performance of any of the agreements or covenants contained in, or  conditions of, this Agreement or any other Transaction Document, or to inspect the properties,  books or records of the Borrower or the Manager.  The Administrative Agent shall not be deemed  to have knowledge of any Event of Default, Manager Default or Early Amortization Event unless  the Administrative Agent has received written notice from the Borrower, the Collateral Agent  (to the extent a Responsible Officer thereof has received written notice or has actual knowledge  of such Event of Default, Manager Default or Early Amortization Event) or a Lender.  Section 1404 Reliance.  The Administrative Agent shall in all cases be entitled to rely, and shall be fully protected  in relying, upon any document or statement believed by it to be genuine and correct and to have  been signed, sent or made by the proper Person or Persons and upon advice and statements of legal  counsel (including, without limitation, counsel to the Borrower), independent accountants and  other experts selected by the Administrative Agent.  The Administrative Agent shall in all cases  be fully justified in failing or refusing to take any action under this Agreement, the Transaction  Documents or any other document furnished in connection herewith unless it shall first receive  such advice or concurrence of the Majority Lenders as it deems appropriate or it shall first be  indemnified to its satisfaction by the Lenders, provided, that unless and until the Administrative  Agent shall have received such advice or indemnification, the Administrative Agent may take or  refrain from taking any action, as the Administrative Agent shall deem advisable and in the best  interests of all Lenders. The Administrative Agent shall in all cases be fully protected in acting, or  in refraining from acting, in accordance with a request of the related Lenders and/or Majority  Lenders, and such request and any action taken or failure to act pursuant thereto shall be binding  upon all Lenders.  Section 1405 Non-Reliance on Administrative Agent and Other Lenders.  

 

  137    Each Lender expressly acknowledges that none of the Administrative Agent or any of its  officers, directors, employees, agents, attorneys-in-fact or Affiliates, has made any representations  or warranties to it and that no act by the Administrative Agent hereafter taken, including, without  limitation, any review of the affairs of the Borrower, shall be deemed to constitute any  representation or warranty by the Administrative Agent.  Each Lender represents and warrants to  the Administrative Agent that it has made and will make, independently and without reliance upon  the Administrative Agent or any other Lender and based on such documents and information as it  has deemed appropriate, its own appraisal of an investigation into the business, operations,  property, prospects, financial and other conditions and creditworthiness of the Borrower and made  its own decision to enter into this Agreement.  Section 1406 Indemnification of the Administrative Agent.  (a) In accordance with Section 1318, the Administrative Agent will be  indemnified by the Borrower for actions taken in such capacity pursuant to the terms of this  Agreement and the other Transaction Documents.  (b) Each Lender other than a Conduit Lender agrees to reimburse and  indemnify, severally, the Administrative Agent ratably according to their Pro Rata Shares, to the  extent the Borrower fails to indefeasibly pay or reimburse any amounts for which the  Administrative Agent, in its capacity as administrative agent, is entitled to reimbursement or  indemnification by the Borrower pursuant to the terms of the Transaction Documents.   Section 1407 Administrative Agent in Its Individual Capacity.  The Administrative Agent and each of its Affiliates may make loans to, accept deposits  from and generally engage in any kind of business with the Borrower, the Seller or any Affiliate  thereof as though it was not the Administrative Agent hereunder. With respect to the funding of  Loans pursuant to this Agreement, the Administrative Agent and each of its Affiliates shall have  the same rights and powers under this Agreement as any Lender and may exercise the same as  though it were not the Administrative Agent and the term “Lender,” shall include the  Administrative Agent in its individual capacity.  Section 1408 Successor Administrative Agent.  If the Administrative Agent shall resign, then the Majority Lenders shall appoint from  among the Lenders a successor Administrative Agent.  At the request of the Majority Lenders, the  Administrative Agent shall resign.  No resignation of the Administrative Agent shall be effective  until its successor shall have been appointed and shall have accepted such appointment. After the  retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of  this Agreement shall inure to its benefit and be binding upon it as to any actions taken or omitted  to be taken by it while it was the Administrative Agent, as the case may be, under this Agreement.  [Signature Pages Follow] 

 

   [Loan and Security Agreement]    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly  executed and delivered, all as of the day and year first above written.    TIF FUNDING LLC, as Borrower    By: Triton Container International Limited,    its manager    By: /s/ Michael S. Pearl    Name:  Michael S. Pearl  Title:  Senior Vice President and Treasurer         

 

   [Loan and Security Agreement]    WELLS FARGO BANK, NATIONAL  ASSOCIATION,  as Administrative Agent      By: /s/ John Fulvimar     Name:  John Fulvimar  Title:  Director     

 

   [Loan and Security Agreement]    WILMINGTON TRUST, NATIONAL  ASSOCIATION, not in its individual capacity but  solely as Collateral Agent and Securities  Intermediary        By: Robert J. Perkins    Name:  Robert J. Perkins  Title:  Vice President  

 

  *This exhibit has been omitted in accordance with Item 601(a)(5) of Regulation S-K as it does not contain  information material to an investment or voting decision.      Schedule I      SCHEDULE I    Maximum Concentrations of Lessees    [***]*                                                                    

 

  *The Commitment for each Lender has been redacted in accordance with Item 601(a)(5) of Regulation S-K  as it does not constitute information material to an investment or voting decision. The aggregate  Commitments for all Lenders totaled $1,125,000,000.     Schedule II    SCHEDULE II  Commitments  Lender Commitment  Wells Fargo Bank, National Association [***]*  Bank of America, N.A. [***]*  Citizens Bank, National Association [***]*  ING Belgium SA/NV [***]*  PNC Bank National Association [***]*  Mizuho Bank, Ltd. [***]*  Regions Bank [***]*  MUFG Bank, Ltd. [***]*        

 

   Schedule III    SCHEDULE III  Scheduled Targeted Principal Balance  Payment Date   Following   Conversion Date  Target Percentage  Payment Date   Following   Conversion Date  Target Percentage  0 100.00% 25 79.17%  1 99.17% 26 78.33%  2 98.33% 27 77.50%  3 97.50% 28 76.67%  4 96.67% 29 75.83%  5 95.83% 30 75.00%  6 95.00% 31 74.17%  7 94.17% 32 73.33%  8 93.33% 33 72.50%  9 92.50% 34 71.67%  10 91.67% 35 70.83%  11 90.83% 36 70.00%  12 90.00% 37 69.17%  13 89.17% 38 68.33%  14 88.33% 39 67.50%  15 87.50% 40 66.67%  16 86.67% 41 65.83%  17 85.83% 42 65.00%  18 85.00% 43 64.17%  19 84.17% 44 63.33%  20 83.33% 45 62.50%  21 82.50% 46 61.67%  22 81.67% 47 60.83%  23 80.83% 48 60.00%  24 80.00% 49 0.00%      

 

   Exhibit A      EXHIBIT A    [Reserved]    

 

   Exhibit B    EXHIBIT B    FORM OF CONTROL AGREEMENT    [Attached] 

 

  *This exhibit has been omitted in accordance with Item 601(a)(5) of Regulation S-K as it does not contain  information material to an investment or voting decision.      Exhibit C    EXHIBIT C    Depreciation Policy for Managed Containers  [***]*    

 

  *This exhibit has been omitted in accordance with Item 601(a)(5) of Regulation S-K as it does not contain  information material to an investment or voting decision.      Exhibit D    EXHIBIT D    Form of Asset Base Certificate  [***]*  

 

   Exhibit E  EXHIBIT E    [Reserved]    

 

  Exhibit F-1    EXHIBIT F  Form of Assignment and Acceptance    Reference is made to the Loan and Security Agreement, dated as of December 13,  2018 (as such agreement may be amended, restated, replaced or otherwise modified from time to  time, the “Agreement”), by and among TIF Funding LLC, as Borrower, the lenders party thereto,  Wells Fargo Bank, National Association, as administrative agent, and Wilmington Trust, National  Association, as Collateral Agent.  Terms defined in the Agreement are used herein with the same  meaning.          (the “Assignor”) and            (the “Assignee”) agree as follows:  1. The Assignor hereby sells and assigns to the Assignee, and the Assignee  hereby purchases and assumes from the Assignor, that interest in and to all of the Assignor's rights  and obligations under the Agreement as of the date hereof which represents the percentage interest  specified in Section 1 of Annex 1 of all outstanding rights and obligations of the Assignor under  the Agreement.   2. The Assignor (i) represents and warrants that it is the legal and beneficial  owner of the interest being assigned by it hereunder and that such interest is free and clear of any  adverse claim; and (ii) makes no representation or warranty and assumes no responsibility with  respect to any statements, warranties or representation made in or in connection with the  Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of  the Agreement or any other instrument or document furnished pursuant thereto.  3. The Assignee (i) confirms that it has received a copy of the Agreement,  together with copies of such financial statements and such other documents and information as it  has deemed appropriate to make its own credit analysis and decision to enter into this Assignment  and Acceptance; (ii) agrees that it will, independently and without reliance upon the Assignor or  any other party to the Agreement and based on such documents and information as it shall deem  appropriate at the time, continue to make its own credit decisions in taking action under the  Agreement; (iii) appoints and authorizes the Administrative Agent to take such action as agent on  its behalf and to exercise such powers under the Agreement as are delegated to the Administrative  Agent by the terms thereof, together with such powers as are reasonably incidental thereto and (iv)  agrees that it will perform in accordance with their terms all of the obligations which by the terms  of the Agreement are required to be performed by it as a Lender.   4. Following the execution of this Assignment and Acceptance by the  Assignor and the Assignee, it will be delivered to the Administrative Agent for recording by the  Administrative Agent. The effective date of this Assignment and Acceptance (the "Transfer Date")  shall be the date of recording thereof by the Administrative Agent.  5. Upon such recording by the Administrative Agent, as of the Transfer Date,  (i) the Assignee shall be a party to the Agreement and, to the extent provided in this Assignment  and Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall,  to the extent provided in this Assignment and Acceptance, relinquish its rights and be released  from its obligations under the Agreement.  

 

  Exhibit F-2    6. Upon such recording by the Administrative Agent, from and after the  Transfer Date, the Administrative Agent shall make, or cause to be made, all payments under the  Agreement in respect of the interest assigned hereby (including, without limitation, all payments  of principal and interest with respect thereto) to the Assignee as follows: [payment instructions]  [to the Administrative Agent’s Account at ____________]. The Assignor and the Assignee shall  make all appropriate adjustments in payment under the Agreement for periods prior to the Transfer  Date directly between themselves.  7. THIS ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED  BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW  YORK WITHOUT REGARD TO ITS CONFLICT OF LAW PRINCIPLES (OTHER THAN  SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS  LAW).  (signatures to commence on the following page)      

 

  Exhibit F-2    IN WITNESS WHEREOF, the parties hereto have caused this Assignment and  Acceptance to be executed by their respective officers thereunto duly authorized, as of the date  first above written.         [ASSIGNOR]           By:        Name:   Title:           Address for notices          [Address]           [ASSIGNEE]           By:       Name:    Title:           Address for notices          [Address]       

 

   Exhibit F-3    Annex 1 to Assignment and Acceptance  Date:  Section 1.  Percent Interest:  Section 2.  Assignee’s Commitment: $[●]  Assignor’s Commitment   after giving effect to assignment: $[●]  Section 3.  Transfer Date:    

 

  *This exhibit has been omitted in accordance with Item 601(a)(5) of Regulation S-K as it does not contain  information material to an investment or voting decision.     Exhibit G    Exhibit G  Intercreditor Collateral Agreement  [***]*    

 

   Exhibit H  EXHIBIT H  Funding Notice  I, Michael S. Pearl, Treasurer of TIF FUNDING LLC (the “Borrower”), hereby certify  that, with respect to that certain Loan and Security Agreement, dated as of December 13, 2018,  among the Borrower, the lenders party thereto, Wells Fargo Bank, National Association, as  Administrative Agent, and Wilmington Trust, National Association, as collateral agent (the “Loan  and Security Agreement”; all defined terms in the Loan and Security Agreement are incorporated  herein by reference):  (i) The Borrower hereby requests a Loan be made in accordance with the  following terms:  (a) The Loan shall be in an amount equal to $[●].  (b) The date of such Loan shall be [●].   (ii) The representations and warranties contained in Section 501 of the Loan  and Security Agreement are true and correct as though made on the date hereof.  (iii) Except as described below, no event has occurred and is continuing, or  would result from any Loan occurring on the date hereof, which constitutes an Event of  Default or an Early Amortization Event.  (iv) As of the date hereof, the Aggregate Loan Principal Balance (after giving  effect to the Loans requested hereby) does not exceed the Asset Base. For purposes hereof,  the Aggregate Loan Principal Balance and the Asset Base have been re-calculated by the  Borrower based upon amounts and percentages as of the date hereof (after giving effect to  the Loans requested hereby).  (v) On and as of such day, the Borrower has performed in all material respects  all of the agreements contained in the Loan and Security Agreement (including those set  forth in Section 1101) and the other Transaction Documents to which it is a party to be  performed by the Borrower at or prior to such day.  (vi) The Conversion Date has not occurred.      

 

   Exhibit H  This notice has been signed as of the date first above written.  TIF FUNDING LLC    By:  Triton Container International Limited, its  manager      __________________________________  Name:    Michael S. Pearl  Title:      Vice President and TreasurerDocument

Exhibit 4.1

___________________________________________________________________________
___________________________________________________________________________

TEXAS-NEW MEXICO POWER COMPANY

To
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,
as Trustee

_______________________________________

SEVENTEENTH SUPPLEMENTAL INDENTURE
dated as of July 28, 2022

Supplemental to the First Mortgage Indenture
dated as of March 23, 2009
(file no.: 09-0007931211)

Establishing a series of Securities designated

3.81% FIRST MORTGAGE BONDS, DUE JULY 28, 2032, SERIES 2022C

___________________________________________________________________________
___________________________________________________________________________

THIS INSTRUMENT GRANTS A SECURITY INTEREST BY A UTILITY

THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS

  

Address of Debtor:
Texas-New Mexico Power Company
Attention: Treasurer
414 Silver Ave. SW, MS 0905 
Albuquerque, New Mexico 87102-3289

Address of Secured Party:
U.S. Bank Trust Company, National Association, as Trustee
101 North First Avenue, Suite 1600
Phoenix, Arizona 85003
Attention:  Global Corporate Trust

SEVENTEENTH SUPPLEMENTAL INDENTURE, dated as of July 28, 2022, between TEXAS-NEW MEXICO POWER COMPANY, a corporation organized and existing under the laws of the State of Texas (the “Company”), and U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association (ultimate successor as trustee to The Bank of New York Mellon Trust Company, N.A.), as Trustee under the Indenture hereinafter referred to (the “Trustee”).
RECITALS OF THE COMPANY
WHEREAS, the Company has heretofore executed and delivered to the Trustee a First Mortgage Indenture dated as of March 23, 2009 (the “Original Indenture”), providing for the issuance by the Company from time to time of its bonds, notes or other evidence of indebtedness to be issued in one or more series (in the Original Indenture and herein called the “Securities”) and to provide security for the payment of the principal of and premium, if any, and interest, if any, on the Securities and the performance and observance of the other obligations of the Company thereunder; and
WHEREAS, the Company has also heretofore executed and delivered to the Trustee a First Supplemental Indenture, dated as of March 23, 2009, a Second Supplemental Indenture, dated as of March 25, 2009, a Third Supplemental Indenture, dated as of April 30, 2009, as amended by a First Amendment, dated as of December 16, 2010, a Fourth Supplemental Indenture, dated as of September 30, 2011, a Fifth Supplemental Indenture, dated as of April 3, 2013, a Sixth Supplemental Indenture, dated as of June 27, 2014, a Seventh Supplemental Indenture, dated as of February 10, 2016, an Eighth Supplemental Indenture, dated as of August 24, 2017, a Ninth Supplemental Indenture, dated as of June 28, 2018, a Tenth Supplemental Indenture, dated March 29, 2019, an Eleventh Supplemental Indenture, dated as of July 1, 2019, a Twelfth Supplemental Indenture, dated as of April 24, 2020, a Thirteenth Supplemental Indenture, dated as of July 15, 2020, a Fourteenth Supplemental Indenture, dated as of August 16, 2021, a Fifteenth Supplemental Indenture, dated as of May 12, 2022 and a Sixteenth Supplemental Indenture, dated as of May 13, 2022, each such supplemental indenture being between the Company and the Trustee, each providing for the establishment of the terms of one or more series of Securities (the Original Indenture, as supplemented by said First Supplemental Indenture, said Second Supplemental Indenture, said Third Supplemental Indenture (as amended), said Fourth Supplemental Indenture, said Fifth Supplemental Indenture, said Sixth Supplemental Indenture, as supplemented and amended by said Seventh Supplemental Indenture, as supplemented by said Eighth Supplemental Indenture, said Ninth Supplemental Indenture, said Tenth Supplemental Indenture, said Eleventh Supplemental Indenture, said Twelfth Supplemental Indenture, said Thirteenth Supplemental Indenture, said Fourteenth Supplemental Indenture, said Fifteenth Supplemental Indenture and said Sixteenth Supplemental Indenture, the “Indenture”); and
WHEREAS, on June 1, 2011, MUFG Union Bank, N.A. (under its then name, Union Bank, N.A.) succeeded to The Bank of New York Mellon Trust Company, N.A. as Trustee under the Indenture; effective March 15, 2021, U.S. Bank National Association succeeded to MUFG Union Bank, N.A. as Trustee under the Indenture; and effective January 29, 2022, U.S. Bank Trust Company, National Association succeeded to U.S. Bank National Association as Trustee under the Indenture; and

WHEREAS, the Company, in the exercise of the power and authority conferred upon and reserved to it under the provisions of the Indenture and pursuant to appropriate resolutions of the Board of Directors, has duly determined to make, execute and deliver to the Trustee this Seventeenth Supplemental Indenture to the Indenture as permitted by Sections 2.01, 3.01 and 14.01 of the Original Indenture in order to establish the form and terms of, and to provide for the creation and issuance of, a new series of Securities under the Indenture to be known as its 3.81% First Mortgage Bonds, due July 28, 2032, Series 2022C” in an aggregate principal amount of $95,000,000 (the “2022 Bonds”); and
WHEREAS, all things necessary to make the 2022 Bonds, when executed by the Company and authenticated and delivered by the Trustee or any Authenticating Agent and issued upon the terms and subject to the conditions hereinafter and in the Indenture set forth, the valid, binding and legal obligations of the Company and to make this Seventeenth Supplemental Indenture a valid, binding and legal agreement of the Company, have been done.
NOW, THEREFORE, THIS SEVENTEENTH SUPPLEMENTAL INDENTURE WITNESSETH that, in order to establish the terms of the 2022 Bonds and for and in consideration of the premises and of the covenants contained in the Indenture and in this Seventeenth Supplemental Indenture and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, intending to be legally bound, it is mutually covenanted and agreed as follows:
ARTICLE ONE
DEFINITIONS
Section 1.01Certain Definitions.  Each capitalized term that is used herein and is defined in the Original Indenture shall have the meaning specified in the Original Indenture unless such term is otherwise defined in this Seventeenth Supplemental Indenture.  Unless the context otherwise requires, any reference herein to a “Section” or an “Exhibit” means a Section of, or an Exhibit to, this Seventeenth Supplemental Indenture, as the case may be.  The words “herein,” “hereof” and “hereunder” and words of similar import refer to this Seventeenth Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision.
The following terms have the meanings given to them in this Article One and, for purposes of this Seventeenth Supplemental Indenture, such meanings shall supersede and replace the meanings given them, if any, in the Original Indenture: 
Certain terms, used principally in Article Two, are defined in that Article.
“Blocked Person” means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity or  organization that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws, or (c) a Person that is an agent, department or instrumentality of, or otherwise beneficially owned fifty percent (50%) or more by, controlled by or acting on behalf of, directly or indirectly, any one or more Person(s), entity or organization described in clause (a) or (b) or a Sanctioned Jurisdiction.

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“Bond Repurchase Amount” is defined in Section 2.07 hereof.
“Bond Repurchase Requirement” is defined in Section 2.07 hereof.
“Capital Stock” means (a) in the case of a corporation, all classes of capital stock of such corporation, (b) in the case of a partnership, partnership interests (whether general or limited), (c) in the case of a limited liability company, membership interests and (d) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person; including, in each case, all warrants, rights or options to purchase any of the foregoing.
“Change in Control” means the occurrence of any of the following:  (a) other than in connection with the Agreement and Plan of Merger, dated as of October 20, 2020, by and among Parent, Avangrid, Inc. and NM Green Holdings, Inc. as may be amended, and the transactions contemplated thereby (the “Avangrid Merger”), any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all Capital Stock that such person or group has the right to acquire (such right, an “option right”), whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of twenty-five percent (25%) of the Capital Stock of the Parent entitled to vote for members of the board of directors or equivalent governing body of the Parent on a fully diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right); (b) other than in connection with the Avangrid Merger, during any period of twenty-four (24) consecutive months, a majority of the members of the board of directors or other equivalent governing body of the Parent cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body; (c) other than in connection with the Avangrid Merger, any Person or two or more Persons acting in concert shall have acquired by contract or otherwise, or shall have entered into a contract or arrangement that, upon consummation thereof, will result in its or their acquisition of the power to exercise, directly or indirectly, a controlling influence over the management or policies of the Parent, or control over the Voting Stock of the Parent on a fully-diluted basis (and taking into account all such Voting Stock that such Person or group has the right to acquire pursuant to any option right) representing twenty-five percent (25%) or more of the combined voting power of such Voting Stock; or (d) the Parent shall cease to own, directly or indirectly, and free and clear of all Liens or other encumbrances (other than any Lien in favor of the administrative agent for the benefit of the lenders under any Material Credit Facility (as it may be amended, restated, supplemented, refinanced or otherwise modified from time to time) securing Indebtedness thereunder), at least one-hundred percent (100%) of the outstanding Voting Stock of the Company on a fully diluted basis.  

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“Change in Control Notice” is defined in Section 2.06(a) hereof.
“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time.
“Consolidated Capitalization” means, with respect to any Person, the sum of (a) all of the shareholders’ equity or net worth of such Person and its Subsidiaries, as determined in accordance with GAAP plus (b) Consolidated Indebtedness of such Person and its Subsidiaries plus (c) the outstanding principal amount of Preferred Stock plus (d) seventy-five percent (75%) of the outstanding principal amount of Specified Securities of such Person and its Subsidiaries.
“Consolidated Indebtedness” means, as of any date of determination, with respect to any Person and its Subsidiaries on a consolidated basis, an amount equal to (a) all Indebtedness of such Person and its Subsidiaries as of such date minus (b) the outstanding principal amount of stranded cost securitization bonds of such Person and its Subsidiaries minus (c) an amount equal to the lesser of (i) seventy-five percent (75%) of the outstanding principal amount of Specified Securities of such Person and its Subsidiaries and (ii) ten percent (10%) of Consolidated Capitalization (calculated assuming clause (i) above is applicable).
“Contingent Obligation” means, with respect to any Person, any direct or indirect liability of such Person with respect to any Indebtedness, liability or other obligation (the “primary obligation”) of another Person (the “primary obligor”), whether or not contingent, (a) to purchase, repurchase or otherwise acquire such primary obligation or any property constituting direct or indirect security therefor, (b) to advance or provide funds (i) for the payment or discharge or any such primary obligation or (ii) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency or any balance sheet item, level of income or financial condition of the primary obligor, (c) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor in respect thereof to make payment of such primary obligation or (d) otherwise to assure or hold harmless the owner of any such primary obligation against loss or failure or inability to perform in respect thereof; provided, however, that, with respect to the Company and its Subsidiaries, the term Contingent Obligation shall not include endorsements for collection or deposit in the ordinary course of business.  The amount of any Contingent Obligation of any Person shall be deemed to be an amount equal to the maximum amount of such Person’s liability with respect to the stated or determinable amount of the primary obligation for which such Contingent Obligation is incurred or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder).
“Controlled Entity” means (i) any of the Subsidiaries of the Company and any of their or the Company’s respective Controlled Affiliates and (ii) if the Company has a parent company, such parent company and its Controlled Affiliates.  As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.
“Corporate Trust Office” has the meaning given to it in the Original Indenture and for the purposes of such term in the Indenture and this Seventeenth Supplemental Indenture, the principal 
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corporate trust office of the Trustee is 101 North First Avenue, Suite 1600, Phoenix, Arizona 85003, Attention: Global Corporate Trust, unless and until the Trustee shall have designated such other address as contemplated by such term.
“Coupon Rate” is defined in Section 2.02 hereof.
“Default Rate” means, with respect to the 2022 Bonds, as of any date, that rate of interest that is the greater of (i) two percent (2%) per annum above the Coupon Rate for the 2022 Bonds or (ii) two percent (2%) over the rate of interest publicly announced from time to time by U.S. Bank Trust Company, National Association in Phoenix, Arizona as its “base” or “prime” rate, as in effect on such date.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. 
“ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as a single employer together with the Company under section 414 of the Code.
“ERISA Event” means, with respect to the Company: (a) a Reportable Event with respect to a Plan or a Multiemployer Plan, (b) a complete or partial withdrawal by the Company or any ERISA Affiliate from a Multiemployer Plan, or the receipt by the Company or any ERISA Affiliate of notice from a Multiemployer Plan that it is in insolvency pursuant to section 4245 of ERISA or that it intends to terminate or has terminated under section 4041A of ERISA, (c) the distribution by the Company or any ERISA Affiliate under section 4041 or 4041A of ERISA of a notice of intent to terminate any Single Employer Plan or the taking of any action to terminate any Single Employer Plan, (d) the commencement of proceedings by the PBGC under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Single Employer Plan, or the receipt by the Company or any ERISA Affiliate of a notice from any Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan, (e) the institution of a proceeding by any fiduciary of any Multiemployer Plan against the Company or any ERISA Affiliate to enforce section 515 of ERISA, which is not dismissed within thirty (30) days, (f) the imposition upon the Company or any ERISA Affiliate of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under section 4007 of ERISA, or the imposition or threatened imposition of any Lien upon any assets of the Company or any ERISA Affiliate as a result of any alleged failure to comply with the Code or ERISA in respect of any Single Employer Plan, (g) the engaging in or otherwise becoming liable for a nonexempt Prohibited Transaction by the Company or any ERISA Affiliate, (h) a violation of the applicable requirements of section 404 or 405 of ERISA or the exclusive benefit rule under section 401(a) of the Code by any fiduciary of any Single Employer Plan for which the Company or any ERISA Affiliate may be directly or indirectly liable, (i) the granting of a security interest in connection with the amendment of a Single Employer Plan or (j) the withdrawal of the Company or any ERISA Affiliate from a Multiple Employer Plan during a plan year in which it was a substantial employer (as such term is defined in section 4001(a)(2) of ERISA), or the termination of a Multiple Employer Plan.
“FATCA” means Foreign Account Tax Compliance Act.

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“Fiscal Quarter” means each of the calendar quarters ending as of the last day of each March, June, September and December.
“GAAP” means generally accepted accounting principles as in effect from time to time in the United States of America, and, notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, without giving effect to any election under Financial Accounting Standards Board Accounting Standards Codification Topic No. 825-10-25 – Fair Value Option, International Accounting Standard 39 – Financial Instruments: Recognition and Measurement (or any other Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Company or any Subsidiary at “fair value”, as defined therein.” 
“Hedging Agreements” means, collectively, interest rate protection agreements, equity index agreements, foreign currency exchange agreements, option agreements or other interest or exchange rate or commodity price hedging agreements (other than forward contracts for the delivery of power or gas written by the Company to its jurisdictional and wholesale customers in the ordinary course of business).
“Indebtedness” means, with respect to any Person (without duplication), (a) all indebtedness and obligations of such Person for borrowed money or in respect of loans or advances of any kind, (b) all obligations of such Person evidenced by notes, bonds, debentures or similar instruments, (c) all reimbursement obligations of such Person with respect to surety bonds, letters of credit and bankers’ acceptance (in each case, whether or not drawn or matured and in the stated amount thereof), (d) all obligations of such Person to pay for the deferred purchase price of property or services, (e) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person, (f) all obligations of such Person as lessee under leases that are or are required to be, in accordance with GAAP, recorded as capital leases, to the extent such obligations are required to be so recorded, (g) the net termination obligations of such Person under any Hedging Agreements, calculated as of any date as if such agreement or arrangement were terminated as of such date in accordance with the applicable rules under GAAP, (h) all Contingent Obligations of such Person, (i) all obligations and liabilities of such Person incurred in connection with any transaction or series of transactions providing for the financing of assets through one or more securitizations or in connection with, or pursuant to, any synthetic lease or similar off-balance sheet financing, (j) the aggregate amount of uncollected accounts receivable of such Person subject at the time of determination to a sale of receivables (or similar transaction) to the extent such transaction is effected with recourse to such Person (whether or not such transaction would be reflected on the balance sheet of such Person in accordance with GAAP), (k) all Specified Securities and (l) all indebtedness referred to in clauses (a) through (k) above secured by any Lien on any property or asset owned or held by such Person regardless of whether the indebtedness secured thereby shall have been assumed by such Person or is nonrecourse to the credit of such Person.
“Interest Payment Date” is defined in Section 2.02 hereof.
“Institutional Investor” means (a) any Holder of a 2022 Bond on the date hereof, (b) any Holder  of  a  2022 Bond holding (together with one or more of its affiliates) more than 5% of the 
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aggregate principal amount of the 2022 Bonds then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any Holder of any 2022 Bond.
“Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or capital lease, upon or with respect to any property or asset of such Person (including in the case of stock, stockholder agreements, voting trust agreements and all similar arrangements).
“Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole, (b) the ability of the Company to perform its obligations under the Indenture and the 2022 Bonds, or (c) the validity or enforceability of the Indenture and the 2022 Bonds.
“Material Credit Facility” means, as to the Company and its Subsidiaries, 
(a)the $100,000,000 Fourth Amended and Restated Credit Agreement among the Company, certain lenders identified therein and certain agents identified therein dated as of March 11, 2022 including any renewals, extensions, amendments, supplements, restatements, replacements or refinancing thereof (the “Credit Agreement”); and
(b)any other agreement(s) creating or evidencing indebtedness for borrowed money, entered into on or after April 27, 2022, by the Company or any Subsidiary of the Company, or in respect of which the Company or any Subsidiary of the Company is an obligor or otherwise provides a guarantee or other credit support (“Credit Facility”), in a principal amount outstanding or available for borrowing equal to or greater than $60,000,000 (or the equivalent of such amount in the relevant currency of payment, determined as of the date of the closing of such facility based on the exchange rate of such other currency).
“Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in section 4001(a)(3) of ERISA).
“Multiple Employer Plan” means, with respect to the Company, a Single Employer Plan to which the Company or any ERISA Affiliate and at least one employer other than the Company or any ERISA Affiliate are contributing sponsors.
“OFAC Sanctions Program” means any economic or trade sanction that OFAC is responsible for administering and enforcing.  A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx.
 “Parent” means PNM Resources, Inc., a New Mexico corporation, together with its successors.
“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto.

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“Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability.
“Preferred Stock” means, with respect to any Person, all preferred Capital Stock issued by such Person in which the terms thereof do not require such Capital Stock to be redeemed or to make mandatory sinking fund payments.
“Proposed Prepayment Date” is defined in Section 2.06(b) hereof.
“Regular Record Date” is defined in Section 2.02 hereof.
“Related Fund” means, with respect to any Holder of any 2022 Bond, any fund or entity that (i) invests in securities or bank loans, and (ii) is advised or managed by such Holder, the same investment advisor as such Holder or by an Affiliate of such Holder or such investment advisor.
“Responsible Officer of the Company” means any Senior Financial Officer and any other officer of the Company with responsibility for the administration of the relevant portion of the matters set forth in the Indenture as supplemented and amended.
“Restrictive Legend” means the legend set forth on the form of the First Mortgage Bonds in Exhibit A hereto.
“Rule 144” means Rule 144 (or any successor rule) under the Securities Act.
“Sanctioned Jurisdiction” means, at any time, a country or territory which is itself subject to or the target of any comprehensive country-wide sanctions under U.S. Economic Sanctions (as opposed to individual, entity or other list-based Sanctions) (at the time of this Agreement, the Crimea Region of Ukraine, Cuba, Iran, North Korea, Sudan and Syria).
“SEC” means the Securities and Exchange Commission of the United States, or any successor thereto.
“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.
“Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or controller of the Company.
“Single Employer Plan” means any Plan which is covered by Title IV of ERISA, but which is not a Multiemployer Plan or Multiple Employer Plan.
“Special Record Date” is defined in Section 2.02 hereof.
“Specified Prior Supplements” means (i) the Sixth Supplemental Indenture dated as of June 27, 2014, (ii)  the Seventh Supplemental Indenture, dated as of February 10, 2016 and (iii) the 
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Eighth Supplemental Indenture, dated as of August 24, 2017; each among the Company and the Trustee and pursuant to the Original Indenture.
“Specified Securities” means, with respect to any Person, (a) all preferred Capital Stock issued by such Person and required by the terms thereof to be redeemed or for which mandatory sinking fund payments are due, (b) all securities issued by such Person that contain two distinct components, typically medium-term debt and a forward contract for the issuance of common stock prior to the debt maturity, including such securities commonly referred to by their tradenames as “FELINE PRIDES”, “PEPS”, “HITS”, “SPACES” and “DECS” and generally referred to as “equity units” and (c) all other securities issued by such Person that are similar to those described in the forgoing clauses (a) and (b).
“Subsidiary” and “Subsidiaries” means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such second Person, and any partnership or joint venture if more than a fifty percent (50%) interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries (unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries).  Any reference to a Subsidiary of the Company herein shall not include a Subsidiary that is inactive, has minimal or no assets and does not generate revenues.  Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company. 
“TBCC” is defined in Section 4.01 hereof.
“Total Assets” means all assets of the Company and its Subsidiaries as shown on its most recent quarterly consolidated balance sheet, as determined in accordance with GAAP.
“U.S. Economic Sanctions Laws” means those laws, executive orders, enabling legislation or regulations administered and enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions Program.
“Voting Stock” means the Capital Stock of a Person that is then outstanding and normally entitled to vote in the election of directors and other securities of such Person convertible into or exercisable for such Capital Stock (whether or not such securities are then currently convertible or exercisable).

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ARTICLE TWO
TITLE, FORM AND TERMS OF THE 2022 BONDS
Section 2.01    Title of the First Mortgage Bonds.  This Seventeenth Supplemental Indenture hereby creates a series of Securities designated as the “3.81% First Mortgage Bonds, due July 28, 2032, Series 2022C”.  The 2022 Bonds shall be executed, authenticated and delivered in accordance with the provisions of, and, except as hereinafter provided, shall in all respects be subject to all of the terms, conditions and covenants of, the Indenture as supplemented by this Seventeenth Supplemental Indenture.  For purposes of the Indenture, the 2022 Bonds shall constitute a single series of Securities and (subject to the limitations set forth in Article IV of the Original Indenture) shall be issued in an aggregate principal amount of $95,000,000.
Section 2.02    Form and Terms of the 2022 Bonds.  The form and terms of the 2022 Bonds pursuant to the authority granted by this Seventeenth Supplemental Indenture in accordance with Sections 2.01 and 3.01 of the Original Indenture are set forth herein.  The 2022 Bonds shall be issued in registered form without coupons in the denominations of $100,000 and integral multiples of $1,000 in excess thereof, appropriately numbered and substantially in the form set forth in Exhibit A hereto.  The terms of the 2022 Bonds contained in the form thereof set forth in Exhibit A hereto are hereby incorporated herein by reference and made a part hereof as if set forth in full herein.
The 2022 Bonds shall mature on July 28, 2032 and shall bear interest at the rate of 3.81% per annum (the “Coupon Rate”) from July 28, 2022 through Maturity, payable semi-annually on the 28th day of January and the 28th day of July in each year, commencing January 28, 2023, and on the Maturity Date (each such January 28, July 28 and Maturity Date, hereinafter called an “Interest Payment Date”) until the principal thereof is paid or made available for payment.
If any Interest Payment Date falls on a day that is not a Business Day, the Interest Payment Date will be the next succeeding Business Day (and no interest or other payment shall be payable in respect of any such delay, provided that any payment of principal of or Make-Whole Amount on any 2022 Bond (including principal due upon Maturity) that is due on a date that is not a Business Day shall be due and payable on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable at such next succeeding Business Day).  Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months.
The 2022 Bonds shall be payable as to principal, Make-Whole Amount, if any, and interest (including interest on overdue principal and on overdue installments of interest to the extent lawful) in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts, and shall be payable as provided for in the Indenture.  
To the extent lawful, the Company shall pay interest on overdue principal and Make-Whole Amount, if any, at the Default Rate (instead of the Coupon Rate), from the day any such payment was due until the amount is paid or made available for payment and it shall pay interest on overdue installments of interest at the Default Rate (instead of the Coupon Rate) from the applicable Interest Payment Date until such interest is paid or made available for payment.

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The interest so payable on any Interest Payment Date shall be paid to the Persons in whose names the 2022 Bonds are registered at the close of business on the regular record date for such Interest Payment Date, which shall be the fifteenth (15th) day of the month immediately preceding the month in which such Interest Payment Date occurs (hereinafter called a “Regular Record Date”); except that if the Company shall default in the payment of any interest due on such Interest Payment Date, the Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on a date (herein called a “Special Record Date”) established to determine the Holders of record who will receive such Defaulted Interest (which shall be fixed in accordance with Section 3.07 of the Original Indenture), which Special Record Date shall not be more than fifteen (15) days or less than ten (10) days prior to the date proposed by the Company for payment of such Defaulted Interest.
Anything in the Indenture or herein to the contrary notwithstanding, the Trustee shall have the right to accept and act upon any notice, instruction, or other communication, including any funds transfer instruction, (each, a “Notice") received pursuant to the Indenture or this Seventeenth Supplemental Indenture by electronic transmission (including by e-mail, facsimile transmission, web portal or other electronic methods) and shall not have any duty to confirm that the person sending such Notice is, in fact, a person authorized to do so.  Electronic signatures believed by the Trustee to comply with the ESIGN Act of 2000 or other applicable law (including electronic images of handwritten signatures and digital signatures provided by DocuSign, Orbit, Adobe Sign or any other digital signature provider identified by any other party hereto and acceptable to the Trustee) shall be deemed original signatures for all purposes.  Each other party to this Seventeenth Supplemental Indenture assumes all risks arising out of the use of electronic signatures and electronic methods to send Notices to the Trustee, including without limitation the risk of the Trustee acting on an unauthorized Notice and the risk of interception or misuse by third parties.  Notwithstanding the foregoing, the Trustee may in any instance and in its sole discretion require that a Notice in the form of an original document bearing a manual signature be delivered to the Trustee in lieu of, or in addition to, any such electronic Notice.
Section 2.03    Optional Prepayments with Make-Whole Amount.  The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the 2022 Bonds, in an amount not less than ten percent (10%) of the aggregate principal amount of the 2022 Bonds to be prepaid then outstanding in the case of a partial prepayment, at one-hundred percent (100%) of the principal amount so prepaid, together with accrued and unpaid interest thereon, and the Make-Whole Amount determined for the prepayment date with respect to such principal amount.  The Company will give each Holder of the 2022 Bonds written notice, with a copy to the Trustee, of each optional prepayment under this Section 2.03 not less than ten (10) days and not more than sixty (60) days prior to the date fixed for such prepayment unless the Company and the Holders of more than fifty percent (50%) of the principal amount of the 2022 Bonds then outstanding agree in writing to another time period.  Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the 2022 Bonds on such date, the principal amount of each 2022 Bond held by such Holder (determined in accordance with Section 2.03(a)), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount with respect to the 2022 Bonds to be prepaid due in  connection  with  such  prepayment (calculated as if the date of such notice were the date of the 
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prepayment), setting forth the details of such computation.  Two (2) Business Days prior to such prepayment, the Company shall deliver to each Holder of 2022 Bonds a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date.  
(a)    Allocation of Partial Prepayments.  In the case of each partial prepayment of the 2022 Bonds pursuant to Section 2.03, the principal amount of the 2022 Bonds to be prepaid shall be allocated among all of the 2022 Bonds at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment, after giving effect to minimum authorized denominations of $100,000.
(b)    Maturity; Surrender, Etc.  In the case of each optional prepayment of 2022 Bonds pursuant to this Section 2.03, the principal amount of each 2022 Bond to be prepaid shall mature and become due and payable on the date fixed for such prepayment, together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any.  From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue.  Any 2022 Bond paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no 2022 Bond shall be issued in lieu of any prepaid principal amount of any 2022 Bond.
Section 2.04    Purchase of Bonds.  The Company will not and will not permit any Subsidiary of the Company to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding 2022 Bonds except (a) upon the payment or prepayment of the 2022 Bonds in accordance with this Seventeenth Supplemental Indenture and the 2022 Bonds or (b) pursuant to an offer to purchase made by the Company or a Subsidiary of the Company pro rata to the Holders of all 2022 Bonds at the time outstanding upon the same terms and conditions.  Any such offer shall provide each Holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least ten (10) Business Days.  If the Holders of more than fifty percent (50%) of the principal amount of the 2022 Bonds then outstanding accept such offer, the Company shall promptly notify the remaining Holders of 2022 Bonds of such fact and the expiration date for the acceptance by Holders of 2022 Bonds of such offer shall be extended by the number of days necessary to give each such remaining Holder at least five (5) Business Days from its receipt of such notice to accept such offer.  The Company will promptly cancel all 2022 Bonds acquired by it or any Subsidiary of the Company pursuant to any payment, prepayment or purchase of 2022 Bonds pursuant to this Seventeenth Supplemental Indenture and no 2022 Bonds may be issued in substitution or exchange for any such 2022 Bonds.  
Section 2.05    Make-Whole Amount.
“Make-Whole Amount” means, with respect to any 2022 Bond, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such 2022 Bond over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero; provided further that the Make-Whole Amount shall equal zero if such prepayment occurs on or after April 28, 2032.  For the purposes of determining the Make-Whole Amount, the following terms have the following meanings:

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“Called Principal” means, with respect to any 2022 Bond, the principal of such 2022 Bond that is to be prepaid pursuant to Section 2.03 or Section 2.07 or is declared to be due and payable pursuant to Section 10.02 of the Original Indenture.
“Discounted Value” means, with respect to the Called Principal of any 2022 Bond, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the 2022 Bonds is payable) equal to the Reinvestment Yield with respect to such Called Principal.
“Reinvestment Yield” means, with respect to the Called Principal of any 2022 Bond, 0.50% over the yield to maturity implied by the yield(s) reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on-the-run U.S. Treasury securities (“Reported”) having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.  If there are no such U.S. Treasury securities Reported having a maturity equal to such Remaining Average Life, then such implied yield to maturity will be determined by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between the yields Reported for the applicable most recently issued actively traded on-the-run U.S. Treasury securities with the maturities (1) closest to and greater than such Remaining Average Life and (2) closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the 2022 Bond.  
If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of interpolation), then “Reinvestment Yield” means, with respect to the Called Principal of any 2022 Bond, 0.50% over the yield to maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity having a term equal to the Remaining Average Life of such Called Principal as of such Settlement Date.  If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average Life, such implied yield to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so reported with the term closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable 2022 Bond.
“Remaining Average Life” means, with respect to any Called Principal, the number of years obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years, computed on the basis of a 360-day year composed of twelve 30-day months and calculated to two decimal places, that will elapse between 
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the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.
“Remaining Scheduled Payments” means, with respect to the Called Principal of any 2022 Bond, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the 2022 Bonds, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 2.03 or Section 2.07 or is declared to be due and payable pursuant to Section 10.02 of the Original Indenture.
“Settlement Date” means, with respect to the Called Principal of any 2022 Bond, the date on which such Called Principal is to be prepaid pursuant to Section 2.03 or Section 2.07 or is declared to be due and payable pursuant to Section 10.02 of the Original Indenture.
Section 2.06    Change in Control. 
(a)    Notice of Change in Control.  The Company will, within thirty (30) Business Days after the occurrence of any Change in Control, give written notice (the “Change in Control Notice”) of such Change in Control to each Holder of 2022 Bonds, with a copy to the Trustee.  Such Change in Control Notice shall contain and constitute an offer to prepay the 2022 Bonds as described in Section 2.06(b) hereof and shall be accompanied by the certificate described in Section 2.06(e).  

(b)    Offer to Prepay Bonds.  The offer to prepay 2022 Bonds contemplated by Section  2.06(a) shall be an offer to prepay, in accordance with and subject to this Section  2.06, all, but not less than all, the 2022 Bonds held by each Holder (in this case only, “Holder” in respect of any 2022 Bond registered in the name of a nominee for a disclosed beneficial owner shall mean such beneficial owner) on a date (which shall be a Business Day) specified in such Change in Control Notice (the “Proposed Prepayment Date”).  Such date shall be not fewer than thirty (30) days and not more than sixty (60) days after the date of delivery of the Change in Control Notice.

(c)    Acceptance; Rejection.  Any Holder of 2022 Bonds may accept or reject the offer to prepay made pursuant to this Section 2.06 by causing a notice of such acceptance or rejection to be delivered to the Company not fewer than then ten (10) days prior to the Proposed Prepayment Date.  A failure by a Holder of 2022 Bonds to respond to an offer to prepay made pursuant to this Section 2.06 shall be deemed to constitute a rejection of such offer by such Holder.
(d)    Prepayment.  Prepayment of the 2022 Bonds to be prepaid pursuant to this Section 2.06 shall be at one-hundred percent (100%) of the principal amount of the 2022 Bonds together with accrued and unpaid interest thereon but without any Make-Whole Amount or other premium.  The prepayment shall be made on the Proposed Prepayment Date.
(e)    Company Certificate.  Each Change in Control Notice delivered pursuant to Section 2.06(a) shall be accompanied by a certificate, executed by a Senior Financial Officer and dated the date of delivery of the Change in Control Notice, stating:  (i) the Proposed Prepayment Date;  (ii)  that such offer is made pursuant to this Section  2.06;  (iii)  the principal amount of each 
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2022 Bond offered to be prepaid (which shall be one-hundred percent (100%) of the outstanding principal balance of each such 2022 Bond); (iv) the amount of accrued interest that would be due and payable on each 2022 Bond offered to be prepaid, accrued to the Proposed Prepayment Date; (v) that the conditions of this Section 2.06 required to be fulfilled prior to the giving of notice have been fulfilled; and (vi) in reasonable detail, a general description of the events that resulted in, and date of occurrence of, the Change in Control.
Section 2.07    Bond Repurchase Event.
On the Bond Repurchase Date, the Company shall repurchase (the “Bond Repurchase Requirement”) the 2022 Bonds for a purchase price equal to the aggregate principal amount of 2022 Bonds then Outstanding, all accrued and unpaid interest thereon, and the Make-Whole Amount determined for the Bond Repurchase Date with respect to such principal amount (the “Bond Repurchase Amount”).  On the Bond Repurchase Date, the Company will deposit with the Trustee immediately available funds in an amount equal to the Bond Repurchase Amount and the Trustee shall pay such amount as soon as practicable after receipt thereof to the Holders of 2022 Bonds.  Payment of a Bond Repurchase Amount shall be deemed to satisfy and discharge in full the principal of, and Make-Whole Amount, and accrued and unpaid interest on, the 2022 Bonds.
The Company’s obligation to satisfy a Bond Repurchase Requirement shall be mandatory upon the occurrence of a Bond Repurchase Event.  
Any 2022 Bonds surrendered to the Trustee in connection with a Bond Repurchase Requirement shall promptly be cancelled in accordance with Section 3.09 of the Original Indenture.
For the purposes of this Section 2.07, the following terms will have the meanings set forth below: 
“Bond Repurchase Date” means the date of the occurrence of a Bond Repurchase Event with respect to the 2022 Bonds while any of the 2022 Bonds are Outstanding.
A “Bond Repurchase Event” with respect to 2022 Bonds shall exist if any of the conditions or events described in any of paragraphs (1) through (7) below shall be continuing fifteen (15) days following the first to occur of (i) a Responsible Officer of the Company obtaining actual knowledge of such occurrence or (ii) the Company’s receipt of a written notice from any Holder of a 2022 Bond of such occurrence: 
(1)  Economic Sanctions, Etc.  The Company does, or permits any Controlled Entity to, (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving the proceeds of the 2022 Bonds) with any Person if such investment, dealing or transaction (i) would cause any holder or any affiliate of such holder to be in violation of any law or regulation applicable to such holder, or (ii) is prohibited by any U.S. Economic Sanctions Laws.
(2)  Sale or Lease of Assets.  The Company sells, leases, transfers or otherwise disposes of, any of its assets (including, without limitation, all or substantially all of its assets, whether in one transaction  or  a  series  of  related transactions) except (a) sales or other transfers of assets for fair 
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value, if the aggregate value of all such transactions in any calendar year does not exceed twenty-five percent (25%) of the book value of Total Assets of the Company, as calculated as of the end of the most recent Fiscal Quarter, and (b) sales, leases, transfers or other dispositions, at less than fair value, of any other assets of the Company and its Subsidiaries, provided that the aggregate book value of such assets shall not exceed $25,000,000 in any calendar year. 
(3)  Debt Capitalization.  The ratio of (i) Consolidated Indebtedness of the Company to (ii) Consolidated Capitalization of the Company is greater than 0.65 to 1.0 (a) as of the last day of any fiscal quarter of the Company or (b) at any time if any first mortgage bonds issued under Specified Prior Supplements remain outstanding.
(4)  Financial and Business Information.  The Company fails to deliver to each Holder of 2022 Bonds that is an Institutional Investor the documents set forth below in paragraphs (a) Quarterly Statements, (b) Annual Statements, (c) SEC and other Reports (if any), (d) Notice of Event of Default or Bond Repurchase Event (if any), and (e) ERISA Matters (if any) by either (i) within the time periods set forth in such paragraphs (a), (b), (c), (d) and (e) (x) delivering paper copies, to the address, if any, specifically designated therefore by such Holder, by hand-delivery or by overnight courier or (y) delivering electronic copies by email or (ii) with respect to the documents set forth in paragraphs (a), (b) and (c), giving written notice within fifteen (15) Business Days after the timely filing on EDGAR or posting on its home page or on its Parent’s home page on the internet or on Intralinks or on any similar website to which each Holder of the 2022 Bonds has free access, by the Company of a Form 10-K (or such annual financial statements satisfying the requirements of paragraph (b) below), Form 10-Q (or such quarterly financial statements satisfying the requirements of paragraph (a) below), Form 8-K or any proxy statement, as the case may be:
(a)    Quarterly Statements — within sixty (60) days (or such shorter period as is the earlier of (x) fifteen (15) days greater than the period applicable to the filing of the Company’s Quarterly Report on Form 10-Q (the “Form 10-Q”) with the SEC regardless of whether the Company is subject to the filing requirements thereof and (y) the date by which such financial statements are required to be delivered under any Material Credit Facility or the date on which such corresponding financial statements are delivered under any Material Credit Facility if such delivery occurs earlier than such required delivery date) after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of
(i)a consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and
(ii)consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter, 
setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and 
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their results of operations and cash flows, subject to changes resulting from year-end adjustments, provided  that delivery within the time period specified above of copies of the Company’s Form 10-Q prepared in compliance with the requirements therefor and filed with the SEC shall be deemed to satisfy the requirements of this paragraph (a) - Quarterly Statements; 
(b)    Annual Statements — within one hundred twenty (120) days (or such shorter period as is the earlier of (x) fifteen (15) days greater than the period applicable to the filing of the Company’s Annual Report on Form 10-K (the “Form 10-K”) with the SEC regardless of whether the Company is subject to the filing requirements thereof and (y) the date by which such financial statements are required to be delivered under any Material Credit Facility or the date on which such corresponding financial statements are delivered under any Material Credit Facility if such delivery occurs earlier than such required delivery date) after the end of each fiscal year of the Company, duplicate copies of:
(i)a consolidated balance sheet of the Company and its Subsidiaries as at the end of such year, and
(ii)consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon (without a “going concern” or similar qualification or exception and without any qualification or exception as to the scope of the audit on which such opinion is based) of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, provided that the delivery within the time period specified above of the Company’s Form 10-K for such fiscal year (together with the Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a-3 under the Securities Exchange Act of 1934) prepared in accordance with the requirements therefor and filed with the SEC, shall be deemed to satisfy the requirements of this paragraph (b)-Annual Statements;
(c)    SEC and Other Reports — promptly upon their becoming available, one copy of (i) each financial statement, report, notice or proxy statement sent by the Company or any Subsidiary of the Company to its principal lending banks as a whole (excluding information sent to such banks in the ordinary course of administration of a bank facility, such as information relating to pricing and borrowing availability) or to its public securities holders generally, and (ii) each regular or periodic report, each registration statement that shall have become effective (without exhibits except as expressly requested by such Holder), and each final prospectus and all amendments thereto filed by the Company or any Subsidiary of the Company with the SEC; 
(d)    Notice of Event of Default or Bond Repurchase Event — promptly, and in any event within five (5) Business Days after a Responsible Officer of the Company becomes aware  of  the  existence  of any Event of Default or any Bond Repurchase Event, a written notice 
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specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto; and
(e)    ERISA Matters — promptly, and in any event within ten (10) days after a Responsible Officer of the Company becoming aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect thereto:
(i)with respect to any Plan, any Reportable Event would reasonably be expected to result in a Material Adverse Effect; or
(ii)the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Single Employer Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan, which in either event would reasonably be expected to result in a Material Adverse Effect; or
(iii)any event, transaction or condition that could result in the incurrence of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, would reasonably be expected to have a Material Adverse Effect.
(5)  Officer’s Certificate.  The Company fails to deliver to each Holder of 2022 Bonds that is an Institutional Investor, in the manner and at the time periods set forth above in paragraph 4(a)-Quarterly Statements and paragraph 4(b)-Annual Statements, a certificate of a Senior Financial Officer certifying that such Senior Financial Officer has reviewed the relevant terms of this Seventeenth Supplemental Indenture and of the Indenture and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes an Event of Default or Bond Repurchase Event with respect to the 2022 Bonds or, if any such condition or event existed or exists, specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto.
(6)  Material Credit Facilities.  With respect to any Material Credit Facility (a) the Company or any Subsidiary of the Company defaults in the payment of any principal of or premium or make-whole amount or interest that is outstanding in an aggregate principal amount of at least $20,000,000 beyond any period of grace with respect thereto, or (b) the Company or any Subsidiary of the Company is in default in the performance of or compliance with any term of any Material Credit Facility in an aggregate outstanding principal amount of at least $20,000,000 or any other condition exists, and as a consequence of such default such Material Credit Facility has  become,  or  has  been  declared  (or one or more Persons are entitled to declare such Material 
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Credit Facility to be), due and payable before its stated maturity or before its regularly scheduled dates of payment, or (c) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder or lender of any Material Credit Facility to convert such indebtedness into equity interests), (i) the Company or any Subsidiary of the Company has become obligated to purchase or repay such indebtedness before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $20,000,000, or (ii) one or more Persons have the right to require the Company or any Subsidiary of the Company so to purchase or repay such indebtedness.
(7)  Material Misrepresentation.  Any representation or warranty made in writing by or on behalf of the Company in this Seventeenth Supplemental Indenture or in any writing furnished to the Holders of the 2022 Bonds in connection with such 2022 Bonds proves to have been false or incorrect in any material respect on the date made.
Section 2.08    Withholding.  By acceptance of any 2022 Bond, the Holder thereof agrees that such Holder will with reasonable promptness duly complete and deliver to the Company, or to such other Person as may be reasonably requested by the Company, from time to time (a) in the case of any such Holder that is a United States Person, such Holder’s United States tax identification number or other forms reasonably requested by the Company necessary to establish such Holder’s status as a United States Person under FATCA and as may otherwise be necessary for the Company to comply with its obligations under FATCA and (b) in the case of any such Holder that is not a United States Person, such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation as may be necessary for the Company to comply with its obligations under FATCA and to determine that such Holder has complied with such Holder’s obligations under FATCA or to determine the amount (if any) to deduct and withhold or cause to be deducted and withheld from any such payment made to such Holder (and the Company agrees that under current FATCA regulations in place as of the date of this Seventeenth Supplemental Indenture as originally executed, executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, as well as a U.S. Tax Compliance Certificate substantially in the form of Schedule 2.08 attached hereto, in both cases completed and executed, shall satisfy this requirement).  Nothing in this Section 2.08 shall require any Holder to provide information that is confidential or proprietary to such Holder unless the Company is required to obtain such information under FATCA and, in such event, the Company shall treat any such information it receives as confidential. 
Notwithstanding any other provision of this Seventeenth Supplemental Indenture, the Trustee or any Paying Agent shall be entitled to make a deduction or withholding from any payment which it makes under this Seventeenth Supplemental Indenture for or on account of any present or future taxes, duties or charges if and to the extent so required by any applicable law and any current or future regulations or agreements thereunder or official interpretations thereof or any law implementing an intergovernmental approach thereto or by virtue of the relevant Holder failing to satisfy any certification or other requirements in respect of the 2022 Bonds, in which event the Trustee or such Paying Agent shall make such payment after such withholding or deduction has been made and shall account to the relevant authorities for the amount so withheld or deducted and shall have no obligation to gross up any payment hereunder or pay any additional amount as a result of such withholding tax.

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Section 2.09    Payment on Bonds.
(a)Place of Payment, etc.  Subject to Section 2.09(b), payments of principal, Make-Whole Amount, if any, and interest due and payable on the 2022 Bonds shall be made in Phoenix, Arizona at the Corporate Trust Office of U.S. Bank Trust Company, National Association.  Registration of transfer and exchange of the 2022 Bonds shall be effected, in accordance with Section 3.05 of the Indenture, in Phoenix, Arizona at the Corporate Trust Office of U.S. Bank Trust Company, National Association.  Notice and demands to or upon the Company in respect of the 2022 Bonds and the Indenture, as supplemented and amended, may be served, in addition to the provisions of Section 1.08 of the Indenture, in Phoenix, Arizona at the Corporate Trust Office of U.S. Bank Trust Company, National Association.  The Company may at any time, by notice to each Holder of a 2022 Bond, change the place of payment of the 2022 Bonds, place where registration or exchange may be effected and where such notices and demands shall be served so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal corporate trust office of a bank or trust company in such city.  U.S. Bank Trust Company, National Association will be the Paying Agent and Security Registrar for the 2022 Bonds.
(b)Home Office Payment.  With respect to all Holders of the 2022 Bonds on the date hereof and any Institutional Investor that subsequently becomes a Holder of a 2022 Bond and complies with the provisions of this Section 2.09(b), all sums becoming due on the 2022 Bonds for principal, Make-Whole Amount, if any, interest and all other amounts due hereunder to each Holder of a 2022 Bond shall be paid to each such Holder by the method and at the address of such Holder in the Security Register, without the presentation or surrender of such 2022 Bond or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any 2022 Bond, such Holder shall surrender such 2022 Bond for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 2.09(a).  Prior to any sale, transfer or other disposition of any 2022 Bond held on the date hereof by a Holder or its nominee, such Holder will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such 2022 Bond to the Company in exchange for a new 2022 Bond or 2022 Bonds pursuant to Section 3.05 of the Original Indenture. 
Section 2.10    Consent in Contemplation of Transfer.  Any consent given pursuant to Section 14.02 of the Original Indenture by a Holder of a 2022 Bond that has transferred or has agreed to transfer its 2022 Bond to the Company, any Subsidiary of the Company or any Affiliate of the Company in connection with such consent shall be void and of no force or effect except solely as to such Holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other Holders of 2022 Bonds that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such Holder.
Section 2.11    Restrictions on Transfer.  The 2022 Bonds and any related documents may be amended or supplemented from time to time by the Company without the consent of any Holder to modify the restrictions on and procedures for resales and other transfers of the 2022 Bonds to reflect  any  change  in  applicable  law  or  regulation  (or  the interpretation thereof) or in practices 
-20-

relating to the resale or transfer of restricted securities generally.  Holders of the 2022 Bonds are deemed by the acceptance of such 2022 Bonds to have agreed to any such amendment or supplement.
The Company shall issue a 2022 Bond that does not bear the Restrictive Legend in replacement of a 2022 Bond bearing the Restrictive Legend at the request of any Holder following such request if (i) the Holder shall have obtained an opinion of counsel reasonably acceptable to the Company in form and substance reasonably satisfactory to the Company to the effect that the First Mortgage Bond may lawfully be disposed of without registration, qualification or legend pursuant to Rule 144, or (ii) the Holder sells or otherwise transfers the First Mortgage Bond pursuant to Rule 144 or an effective registration statement.
Section 2.12    Sinking Fund.  The 2022 Bonds are not subject to any sinking fund.
Section 2.13    Calculations, etc.  The Trustee may conclusively presume that no optional prepayment pursuant to Section 2.03, Change in Control or Bond Repurchase Event shall have occurred unless and until a Responsible Officer of the Trustee shall have received at the Corporate Trust Office of the Trustee a certificate executed by a Senior Financial Officer specifying the following:
1.  in the case of an optional prepayment pursuant to Section 2.03, the name of each Holder to which such payments will be made, the amount of each such payment (including the applicable Make-Whole Amount and accrued interest), and the date of such payment and;
2.  in the case of a Change in Control, the name of each Holder that accepts the related offer to prepay, the amount of each such payment (including accrued interest), and the date of such payment; and 
3.  in the case of a Bond Repurchase Event, the name of each Holder to which the Bond Repurchase Amount is to be paid, the amount of such Bond Repurchase Amount payment and the Bond Repurchase Date.
The Trustee shall be under no duty to inquire into, may conclusively presume the correctness of, shall be fully protected in relying upon the Company’s calculation of any optional prepayment amount, Change in Control repurchase payment or Bond Repurchase Amount, including interest and, if and to the extent applicable, any Make-Whole Amount, and shall have no responsibility for such calculation.
ARTICLE THREE
ISSUANCE OF THE 2022 BONDS
Section 3.01    Authentication.  The 2022 Bonds in the aggregate principal amount of $95,000,000 may forthwith be executed by the Company and delivered to the Trustee and shall be authenticated and delivered by the Trustee (either before or after the filing or recording hereof) pursuant to and in accordance with a Company Order delivered pursuant to, and upon compliance by the Company with the other applicable provisions and requirements of, Article IV of the Original Indenture.
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ARTICLE FOUR
MISCELLANEOUS PROVISIONS
Section 4.01    Utility and Transmitting Utility.  The Company is a utility as defined in Section 261.001(a) of the Texas Business and Commerce Code (the “TBCC”).  The Company intends to subject the Original Indenture, as heretofore supplemented and amended and as supplemented by this Seventeenth Supplemental Indenture, to the requirements and benefits of Chapter 261 of the TBCC.  The perfection of and notice provided by the Original Indenture, as heretofore supplemented and amended and as supplemented by this Seventeenth Supplemental Indenture, under Section 261.004 of the TBCC with respect to the interest in property granted as security thereunder shall be effective from its date of deposit for filing until and to the extent such interest in property is released by the filing of a termination statement or a release of such interest in property, in each case signed or authorized in writing by the Trustee, and no renewal, refiling or continuation statement shall be required to continue such effectiveness.  The Company is also a transmitting utility as defined in Section 9.102 of the TBCC.  The Original Indenture, as heretofore supplemented and amended and as supplemented by this Seventeenth Supplemental Indenture, shall remain effective as (a) a financing statement until a termination statement is filed, as provided in Section 9.515(f) of the TBCC, and (b) a financing statement filed as a fixture filing until the Original Indenture (as heretofore supplemented and amended and as supplemented by this Seventeenth Supplemental Indenture) is released in full or satisfied of record or its effectiveness otherwise terminates as to the real property covered thereby, as provided in Section 9.515(g) of the TBCC.
Section 4.02    Ratification.  The Indenture, as supplemented by this Seventeenth Supplemental Indenture, is in all respects ratified and confirmed, and this Seventeenth Supplemental Indenture shall be deemed part of the Indenture in the manner and to the extent herein and therein provided. 
Section 4.03    Trustee.  The Trustee hereby accepts the trust hereby declared and provided, and agrees to perform the same upon the terms and conditions set forth in the Indenture, as supplemented by this Seventeenth Supplemental Indenture.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Seventeenth Supplemental Indenture or of the 2022 Bonds or the due execution hereof or thereof by the Company or for or in respect of the recitals contained herein or therein (except the Trustee’s certificate of authentication) or the statements contained in Section 4.01, all of which recitals and statements are made by the Company solely.
Section 4.04    Governing Law.  This Seventeenth Supplemental Indenture and the 2022 Bonds shall be governed by and construed in accordance with the law of the State of New York (including without limitation Section 5-1401 of the New York General Obligations Law or any successor to such statute), except to the extent that the Trust Indenture Act would be applicable were this Seventeenth Supplemental Indenture qualified under the Trust Indenture Act and except to the extent that the law of any other jurisdiction shall mandatorily govern the creation, perfection, priority or enforcement of the Lien of the Indenture, as supplemented by this Seventeenth Supplemental Indenture or the exercise of remedies with respect to the Mortgaged Property.

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Section 4.05    Counterparts.  The Seventeenth Supplemental Indenture referred to herein is an indenture supplemental to the Indenture.  This Seventeenth Supplemental Indenture may be simultaneously executed in any number of counterparts, each of which when so executed shall be deemed to be an original; but such counterparts shall together constitute but one and the same instrument.
Section 4.06    USA PATRIOT Act.  The parties hereto acknowledge that in accordance with Section 326 of the USA PATRIOT Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee.  The parties to this Seventeenth Supplemental Indenture agree that they shall provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the USA PATRIOT Act.
Section 4.07    Notices to the Trustee.  Notice is hereby given that the address of the Trustee for purposes of Section 1.08 of the Indenture is:
If to the Trustee, to:
U.S. Bank Trust Company, National Association
101 North First Avenue, Suite 1600
Phoenix, Arizona 85003
Attention: Global Corporate Trust
Telecopy: 602-257-5433
or such other address as the Trustee may from time to time designate pursuant to said Section 1.08.
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IN WITNESS WHEREOF, said TEXAS-NEW MEXICO POWER COMPANY has caused this Seventeenth Supplemental Indenture to be executed on its behalf and said U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee as aforesaid, in evidence of its acceptance of the trust hereby created, has caused this Seventeenth Supplemental Indenture to be executed on its behalf, to be effective as of the date first written above.

									
		TEXAS-NEW MEXICO POWER COMPANY

		By:	/s/ Elisabeth A. Eden
			Name: Elisabeth A. Eden
			Title:   Senior Vice President, Chief Financial Officer and Treasurer

ACKNOWLEDGMENT

STATE OF NEW MEXICO        )
COUNTY OF BERNALILLO    )

This instrument was acknowledged before me on this 20th day of July, 2022, by Elisabeth A. Eden, Senior Vice President, Chief Financial Officer and Treasurer of TEXAS-NEW MEXICO POWER COMPANY, a Texas corporation, on behalf of said corporation.

/s/ Juli Marcinelli__________________
Notary Public in and for the State of New Mexico

[Signature Page to Seventeenth Supplemental Indenture to 
First Mortgage Indenture of Texas-New Mexico Power Company]

									
		U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee

		By:	/s/ Mary Ambriz-Reyes
			Name: Mary Ambriz-Reyes
			Title: Vice President

STATE OF ARIZONA    )
COUNTY OF MARICOPA    )
Before me, the undersigned notary, on this day personally appeared Mary Ambriz-Reyes, known to me (or proved to me through AZ driver’s license (description of identity card or other document)) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he/she executed the same, in his/her capacity as Vice President of U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, acting in its capacity as Trustee, for the purposes and consideration therein expressed.

Given under my hand and seal of office this 21st day of July, A.D., 2022.

						
	Signature: /s/ Erick Vanegas
	(seal)

[Signature Page to Seventeenth Supplemental Indenture to 
First Mortgage Indenture of Texas-New Mexico Power Company]

Schedule 2.08 to the Seventeenth Supplemental Indenture
[FORM OF] 
U.S. TAX COMPLIANCE CERTIFICATE

    Reference is hereby made to that certain First Mortgage Indenture dated as of March 23, 2009 (the “Original Indenture”), from Texas New-Mexico Power Company (the “Company”) to U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), as previously amended and supplemented by certain supplemental indentures including the Seventeenth Supplemental Indenture (the “Supplement”, and the Original Indenture as supplemented and amended by such other supplemental indentures and the Supplement, the “Indenture”).  Certain capitalized and other terms used in this Agreement are defined in the Indenture.  
    The undersigned hereby certifies that:
(i)it is the sole record and beneficial owner of the 2022 Bonds in respect of which it is providing this certificate;
(ii)it is not a bank within the meaning of Section 881(c)(3)(A) of the Code;
(iii)it is not a ten percent shareholder of the Company within the meaning of Section 871(h)(3)(B) of the Code; and 
(iv)it is not a controlled foreign corporation related to the Company as described in Section 881(c)(3)(C) of the Code.
    The undersigned has furnished the Company with a certificate of its non-U.S. Person status on IRS W-8BEN-E.  

						
	[Purchaser Name]
	By:	
		Name:
		Title:

Date: _____________ 

Exhibit A
 FORM OF 3.81% FIRST MORTGAGE BOND, DUE JULY 28, 2032, SERIES 2022C

THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OF THE UNITED STATES OF AMERICA AND MAY NOT BE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH ACT, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH EXEMPTION IS REQUIRED BY LAW.

TEXAS-NEW MEXICO POWER COMPANY

(Incorporated under the laws of the State of Texas)

3.81% First Mortgage Bond, due July 28, 2032, Series 2022C

No.                                         [Date]
$[________]                                PPN: 882884 E*6

TEXAS-NEW MEXICO POWER COMPANY, a corporation organized and existing under the laws of the State of Texas (hereinafter called the “Company”, which term shall include any Successor Corporation under the Indenture), for value received, hereby promises to pay to _____________________, or registered assigns, on July 28, 2032 (the “Maturity”), the principal sum of [___________ dollars ($________)]/[___________ dollars ($________)] (or so much thereof as shall not have been prepaid), in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts, and to pay interest on said principal sum in like coin or currency from the date hereof, or from the most recent January 28 or July 28 to which interest has been paid or duly provided for, at the rate of three and 81/100th percent (3.81%) per annum (the “Coupon Rate”), payable semi-annually, on the twenty-eighth (28th) of January and the twenty-eighth (28th) of July in each year, commencing January 28, 2023 until Maturity, and at Maturity (each an “Interest Payment Date”).  To the extent permitted by law, the Company shall pay interest on any overdue principal or Make-Whole Amount, if any, at the Default Rate (instead of the Coupon Rate), from the day such principal or Make-Whole Amount was due until paid or made available for payment and it shall pay interest on any overdue installments of interest at the Default Rate (instead of the Coupon Rate), from the applicable Interest Payment Date until such interest is paid or made available for payment.  For purposes of the Seventeenth Supplemental Indenture and this Security, the term “interest” shall be deemed to include  interest  provided  for  in  the  first  and  second  immediately preceding sentences.  If any 

Interest Payment Date falls on a day that is not a Business Day then payment of interest payable on such date will be made on the next succeeding Business Day (and no interest or other payment shall be payable in respect of any such delay, provided that any payment of principal of or Make-Whole Amount on this Security (including principal due upon Maturity) that is due on a date that is not a Business Day shall be due and payable on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable at such next succeeding Business Day).  Interest will be computed on the basis of a 360 day year consisting of twelve (12) thirty (30)-day months. 
The interest so payable on any Interest Payment Date will, subject to certain exceptions provided in such Indenture, be paid to the Person in whose name this Security is registered at the close of business on the Regular Record Date for such Interest Payment Date, which shall be the fifteenth (15th) day of the month immediately preceding the month in which such Interest Payment Date occurs; except that if the Company shall default in the payment of any interest due on such Interest Payment Date, such defaulted interest shall be paid to the Holder of this Security as of the close of business on a date selected by the Trustee (in accordance with Section 3.07 of the Indenture) (a “Special Record Date”), which Special Record Date shall not be more than fifteen (15) days or less than ten (10) days prior to the date proposed by the Company for payment of such defaulted interest.
Principal of, and Make-Whole Amount (if any) and interest on this Security are payable at the Corporate Trust Office of the Trustee, in Phoenix, Arizona, as Paying Agent for the Company; provided however, that the Company may at any time, by notice to the Holder of this Security, change the place of payment so long as the place of payment shall be either the principal office of the Company in such city or the principal Corporate Trust Office of a bank or trust company in such city and further provided that if the Holder of this Security shall have specified by written notice to the Company an address and reasonable method for such payment pursuant to and in compliance with Section 2.09(b) of the Seventeenth Supplemental Indenture, the Company shall make such payment at the address and by the reasonable method set forth in such written notice.
This Security is subject to (1) prepayment at the option of the Company in whole at any time, or in part from time to time, (2) prepayment in whole at the option of the Holder hereof in connection with a Change in Control and (3) mandatory repurchase in whole upon the occurrence of a Bond Repurchase Event, in each case at the times, in the amounts and upon the terms specified in Sections 2.03, 2.06 and 2.07, respectively, of the Seventeenth Supplemental Indenture.  This Security is not otherwise subject to optional redemption.
The provisions of this Security are continued on the reverse hereof, and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.
This Security shall not be entitled to any benefit under the Indenture or any indenture supplemental thereto, or be valid or obligatory for any purpose, unless U.S. Bank Trust Company, National Association, the Trustee under the Indenture, or a successor trustee thereto under the Indenture, shall have manually signed the certificate of authentication endorsed hereon.

IN WITNESS WHEREOF, TEXAS-NEW MEXICO POWER COMPANY has caused the signature of its duly authorized officer to be hereto affixed.

Dated: ____________
									
	

	

By:	TEXAS-NEW MEXICO POWER COMPANY
			Name:
			Title:
			

CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture, as supplemented and amended, including as supplemented by the Seventeenth Supplemental Indenture.

									
	

	

By:	U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee
			Authorized Officer

FORM OF REVERSE OF 
3.81% FIRST MORTGAGE BOND, DUE JULY 28, 2032, SERIES 2022C

This Security is one of a duly authorized issue of Securities of the Company (herein called the “First Mortgage Bonds”), unlimited in aggregate principal amount, of the series hereinafter specified, all issued and to be issued under and equally secured by an indenture, dated as of March 23, 2009, executed by the Company to U.S. Bank Trust Company, National Association (ultimate successor as trustee to The Bank of New York Mellon Trust Company, N.A.), as Trustee (herein called the “Trustee”) (said indenture being herein called the “Indenture”), to which Indenture and all indentures supplemental thereto (including the Seventeenth Supplemental Indenture hereinafter referred to) reference is hereby made for a description of the properties mortgaged and pledged, the nature and extent of the security, the rights of the registered owners of the First Mortgage Bonds and of the Trustee in respect thereto, and the terms and conditions upon which the First Mortgage Bonds are, and are to be, secured, and for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the First Mortgage Bonds and of the terms upon which the First Mortgage Bonds are, and are to be, authenticated and delivered.  To the extent permitted by, and as provided in, the Indenture, modifications or alterations of the Indenture, or of any indenture supplemental thereto, and of the rights and obligations of the Company and of the Holders of the First Mortgage Bonds may be made, in certain cases without the consent of the Holders of the First Mortgage Bonds, as set forth in Section 14.01 of the Indenture, and otherwise with the consent of the Company by an affirmative vote of not less than a majority in amount of the First Mortgage Bonds entitled to vote then outstanding, at a meeting of Holders of the First Mortgage Bonds called and held as provided in the Indenture, or by an affirmative vote of not less than a majority in amount of the First Mortgage Bonds of any series entitled to vote then outstanding and affected by such modifications or alterations, in case one or more but less than all of the series of First Mortgage Bonds then outstanding under the Indenture are so affected; provided, however, that no such modifications or alterations shall be made which will affect the terms of payment of the principal of, or interest on, this Security, which are unconditional.  The First Mortgage Bonds may be issued in series, for various principal sums, may mature at different times, may bear interest at different rates and may otherwise vary as provided in the Indenture.  This Security is one of a series designated as “3.81% First Mortgage Bonds, due July 28, 2032, Series 2022C” of the Company, issued under and secured by the Indenture and all indentures supplemental thereto and described in an indenture supplemental thereto (herein called the “Seventeenth Supplemental Indenture”), dated as of July 28, 2022, executed by the Company to the Trustee.
The Company, at its option, may redeem all, or from time to time, any part of the First Mortgage Bonds of this series on not less than ten (10) days’ nor more than sixty (60) days’ notice by first-class mail, postage prepaid as provided in the Indenture at a Redemption Price equal to the sum of the principal amount so prepaid plus the Make-Whole Amount as defined in the Seventeenth Supplemental Indenture and upon the other terms and conditions therein and in the Indenture provided. 
The Trustee shall be under no duty to inquire into, may conclusively presume the correctness of, shall be fully protected in relying upon the Company’s calculation of any optional 

prepayment amount, Change in Control repurchase payment or Bond Repurchase Amount, including interest and, if and to the extent applicable, any Make-Whole Amount, and shall have no responsibility for such calculation.
In the event of prepayment of the First Mortgage Bonds of this series in part only, a new Security of First Mortgage Bonds of this series and of like tenor for the non-prepaid portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 
The Indenture contains provisions for satisfaction and discharge of the entire indebtedness of the First Mortgage Bonds of this series.
In case an Event of Default shall occur, the principal of all the First Mortgage Bonds at any such time Outstanding under the Indenture may be declared or may become due and payable, upon the conditions and in the manner and with the effect provided in the Indenture.  The Indenture provides that such declaration may in certain events be waived by the Holders of a majority in principal amount of the First Mortgage Bonds outstanding.  In the event of any declaration of acceleration of the maturity of the First Mortgage Bonds, the amount due and payable on this Security (and for all outstanding First Mortgage Bonds of this series) shall consist of the unpaid principal and accrued and unpaid interest thereon plus the Make-Whole Amount (as defined in Section 2.05 of the Seventeenth Supplemental Indenture), which Make-Whole Amount shall be determined as of the date of such declaration. 
No recourse shall be had for the payment of the principal of, or Make-Whole Amount, if any, or the interest on, this Security, or for any claim based hereon or on the Indenture or any indenture supplemental thereto, against any incorporator, or against any stockholder, director or officer, past, present or future, of the Company, as such, or of any predecessor or successor corporation, either directly or through the Company or any such predecessor or successor corporation, whether for amounts unpaid on stock subscriptions or by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability, whether at common law, in equity, by any constitution, statute or otherwise, of incorporators, stockholders, directors or officers being released by every owner hereof by the acceptance of this First Mortgage Bond and as part of the consideration for the issue hereof, and being likewise released by the terms of the Indenture.
This Security is transferable by the registered owner hereof, in person or by duly authorized attorney, on the books of the Company to be kept for that purpose as provided for in the Indenture upon surrender and cancellation of this Security and on presentation of a duly executed written instrument of transfer, and thereupon a new Security of the same series of First Mortgage Bonds, of the same aggregate principal amount and in authorized denominations will be issued to the transferee or transferees in exchange therefor; and this Security, with or without others of like series, may in like manner be exchanged for one or more new First Mortgage Bonds of the same series of other authorized denominations but of the same aggregate principal amount; all upon payment of the charges and subject to the terms and conditions set forth in the Indenture.
This Security shall be subject to certain restrictions on transfer as set forth in the Indenture and the Seventeenth Supplemental Indenture.

This Security shall be governed by, and construed in accordance with, the laws of the State of New York (including without limitation Section 5-1401 of the New York General Obligations Law or any successor to such statute), except to the extent that the Trust Indenture Act would be applicable were the Seventeenth Supplemental Indenture qualified under the Trust Indenture Act and except to the extent that the law of any other jurisdiction shall mandatorily govern the creation, perfection, priority or enforcement of the Lien of the Indenture, as supplemented and amended by all indentures supplemental thereto (including the Seventeenth Supplemental Indenture), or the exercise of remedies with respect to the Mortgaged Property.
All capitalized terms used but not defined in this Security shall have the meanings assigned to them in the Indenture or the Seventeenth Supplemental Indenture, as applicable.

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