Document:

ex4-2.htm

Exhibit 4.2

 

 

 

Ford Credit Floorplan Master Owner Trust __

Issuer

[Indenture Trustee]

Indenture Trustee

 

___________________________________

 

 

Series __

 

Indenture Supplement

 

Dated as of ______, 20__

___________________________________

 

Series __ Floating Rate Asset Backed Notes,

 

Class A and Class B

 

 

  

  

  

Table of Contents

Page

 

	
ARTICLE I

 

Creation of Series __ Notes

 

	
Section 1.01.
	
Designation.                                                                                                
	
2

	
ARTICLE II

 

Definitions

 

	
Section 2.01.
	
Definitions.                                                                                                
	
3

	
Section 2.02.
	
Other Definitional Provisions.                                                                                                
	
19

	
ARTICLE III

 

Servicing Fee

 

	
Section 3.01.
	
Servicing Compensation.                                                                                                
	
19

	
ARTICLE IV

 

Rights of Series __ Noteholders and Allocation and

Application of Collections

 

	
Section 4.01.
	
Collections and Allocations.                                                                                                
	
20

	
Section 4.02.
	
Determination of Monthly Interest.                                                                                                
	
22

	
Section 4.03.
	
Determination of Monthly Principal Amount.                                                                                                
	
23

	
Section 4.04.
	
Application of Available Funds on Deposit in Collection Account and Other Sources.
	
23

	
Section 4.05.
	
Investor Charge-Offs.                                                                                                
	
29

	
Section 4.06.
	
Reallocated Principal Collections.                                                                                                
	
29

	
Section 4.07.
	
Excess Interest Collections.                                                                                                
	
30

	
Section 4.08.
	
Shared Principal Collections.                                                                                                
	
30

	
Section 4.09.
	
Available Subordinated Amount.                                                                                                
	
31

	
Section 4.10.
	
Principal Funding Account.                                                                                                
	
31

	
Section 4.11.
	
[Reserve Fund].                                                                                                
	
33

	
Section 4.12.
	
Determination of LIBOR.                                                                                                
	
34

	
Section 4.13.
	
Accumulation Period Reserve Account.                                                                                                
	
35

	
Section 4.14.
	
Investment Instructions.                                                                                                
	
37

  

  

  

	
ARTICLE V

 

Delivery of Series __ Notes; Distributions; Reports to Series __ Noteholders

 

	
Section 5.01.
	
Delivery and Payment for Series __ Notes.                                                                                                
	
37

	
Section 5.02.
	
Distributions.                                                                                                
	
37

	
Section 5.03.
	
Reports and Statements to Series __ Noteholders.                                                                                                
	
38

	
ARTICLE VI

 

Series __ Amortization Events

 

	
Section 6.01.
	
Series __ Amortization Events.                                                                                                
	
39

	
ARTICLE VII

 

Redemption of Series __ Notes; Series Final Maturity; Final Distributions

 

	
Section 7.01.
	
Optional Redemption of Series __ Notes.                                                                                                
	
41

	
Section 7.02.
	
Series Final Maturity.                                                                                                
	
42

	
ARTICLE VIII

 

Miscellaneous Provisions

 

	
Section 8.01.
	
[Execution and Delivery of Interest Rate Swap.]                                                                                                
	
43

	
Section 8.02.
	
Ratification of Agreement.                                                                                                
	
43

	
Section 8.03.
	
Form of Delivery of Series __ Notes.                                                                                                
	
43

	
Section 8.04.
	
Counterparts.                                                                                                
	
43

	
Section 8.05.
	
Governing Law.                                                                                                
	
43

	
Section 8.06.
	
Effect of Headings and Table of Contents.                                                                                                
	
43

	
Exhibits

 

	
Exhibit A-1
	
Form of Class A Note
	
A-1-1

	
Exhibit A-2
	
Form of Class B Note
	
A-2-1

	
Exhibit B
	
Form of Distribution Date Statement
	
B-1

	
Exhibit C
	
Form of Monthly Allocation and Payment Instruction to Indenture Trustee
	
C-1

  

i

  

Series __ Indenture Supplement, dated as of ______, 20__, by and between Ford Credit Floorplan Master Owner Trust __, a Delaware statutory trust, as Issuer, and [Indenture
Trustee], a [State, entity type], as Indenture Trustee.

 

Recitals

 

A.           Section 2.12 of the Indenture provides, among other things, that the Issuer and the Indenture Trustee may at any time and from time to time enter into an Indenture Supplement to authorize the issuance by the
Issuer of Notes in one or more Series.

 

B.           The parties to this Indenture Supplement, by executing and delivering this Indenture Supplement, are providing for the creation of the Series __
Notes and specifying the Principal Terms thereof.

 

In consideration of the mutual covenants and agreements contained in this Indenture Supplement, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

Granting Clauses

 

In addition to the Grant of the Indenture, the Issuer hereby Grants to the Indenture Trustee, for the exclusive benefit of the Holders of the Series __ Notes [and of any Swap Counterparty (but only to the extent of its right to receive amounts owed thereto under the related Interest Rate Swap)], all of the Issuer's right, title and interest
(whether now owned or hereafter acquired) in, to and under the following (collectively, the "Series Collateral"):

 

(i)           all Collections on the Receivables allocated to the Holders of the Series __ Notes;

 

(ii)           all Collections on, if applicable, Interests in Other Floorplan Assets allocated to the Holders of the Series __ Notes;

 

(iii)           all Eligible Investments and all monies, instruments, securities, security entitlements, documents, certificates of deposit and other property from time to time on deposit in or credited to the Series Accounts (including any subaccount thereof) and in all interest,
proceeds, earnings, income, revenue, dividends and other distributions thereof (including any accrued discount realized on liquidation of any investment purchased at a discount);

 

[(iv)           all rights, remedies, powers, privileges and claims of the Issuer under or with respect to any Interest Rate Swap (whether arising pursuant to the terms of such agreement or otherwise available to the Issuer at law or in equity), including the rights of the Issuer
to enforce such Interest Rate Swap and to give or withhold any and all consents, requests, notices, directions, approvals, extensions or waivers under or with respect to such Interest Rate Swap;] and

 

  

  

  

(v)           all present and future claims, demands, causes of action and choses in action regarding any of the foregoing and all payments on any of the foregoing and all proceeds of any nature whatsoever regarding any of the foregoing, including all proceeds of the voluntary or
involuntary conversion thereof into cash or other liquid property and all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, condemnation awards, rights to payment of any kind and other forms of obligations and receivables, instruments and other property that at any time constitute any part of or are included in the proceeds of any of the foregoing.

 

The foregoing Grants are made in trust to secure (a) the Issuer's obligations under the Series __ Notes equally and ratably without prejudice, priority, or distinction between any Series __ Note and any other Series __ Notes, (b) [any Interest Rate Swap (but only to the extent of its right to receive amounts owed thereto under such Interest
Rate Swap)], (c) the payment of all other sums payable under the __ Notes, the Indenture and this Indenture Supplement and (d) the compliance with the terms and conditions of the Series __ Notes, the Indenture and this Indenture Supplement [and any Interest Rate Swap], all as provided herein or therein.

 

The Indenture Trustee acknowledges such Grant, accepts the trusts hereunder in accordance with the provisions hereof and agrees to perform the duties herein.

 

 

ARTICLE I

 

Creation of Series __ Notes

 

Section 1.01.                      Designation.

 

(a)                      There is hereby created a Series of Notes to be issued by the Issuer on the Closing Date pursuant to the Indenture and this Indenture Supplement
to be known as the "Series __ Floating Rate Asset Backed Notes" or the "Series __ Notes."  The Series __ Notes will be issued in two Classes, the first of which will be known as the "Series __ Floating Rate Asset Backed Notes, Class A" the second of which will be known as the "Series __ Floating Rate Asset Backed Notes, Class B." The Series __ Notes will be due and payable on the Series __ Final Maturity Date.

 

(b)                      Series __ will be in Excess Interest Sharing Group [One] and in Principal Sharing Group [One]. Series __ will [not] be a Shared Enhancement
Series or in an Interest Reallocation Group. Series __ will not be subordinated to any other Series.

 

(c)                      The Series __ Notes are "Notes" and this Indenture Supplement is an "Indenture Supplement" for all purposes under the Indenture. If any
provision of the Series __ Notes or this Indenture Supplement conflicts with or is inconsistent with any provision of the Indenture, the provisions of the Series __ Notes or this Indenture Supplement, as the case may be, control.

 

  

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(d)                      Each term defined in Section 2.01 of this Indenture Supplement relates only to Series __ and this Indenture Supplement and to no other
Series or Indenture Supplements.

 

 

ARTICLE II

 

Definitions

 

Section 2.01.                      Definitions.

 

Whenever used in this Indenture Supplement, the following words and phrases have the following meanings, and the definitions of such terms are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms.

 

"Accumulation Period Factor" means, with respect to any Collection Period, a fraction:

 

(a)           the numerator of which is equal to the sum of the initial invested amounts of all outstanding Series in Principal Sharing Group One (including Series __); and

 

(b)           the denominator of which is equal to the sum of (i) the Initial Invested Amount, plus (ii) the initial invested amounts of all outstanding Series in Principal Sharing Group One (other than Series __) that are not
expected to be in their revolving periods from such date to the Expected Final Payment Date;

 

provided, however, that this definition may be changed at any time upon receipt by the Indenture Trustee of an Officer's Certificate from the Transferor[s] that such change will not have an Adverse Effect.

 

"Accumulation Period Length" has the meaning specified in Section 4.04(f).

 

"Accumulation Period Reserve Account" has the meaning specified in Section 4.13(a).

 

"Accumulation Period Reserve Account Available Amount" means, with respect to each Distribution Date beginning on the Accumulation Period Reserve Account Funding Date and until termination of the Accumulation Period Reserve Account pursuant to Section 4.13(e),
the lesser of:

 

(a)           the amounts on deposit in the Accumulation Period Reserve Account on such Distribution Date (excluding any amounts relating to investment earnings and before giving effect to any (i) deposits made or to be made therein pursuant to Sections 4.04(a)(x) and (b)(i)
on such Distribution Date or (ii) any withdrawal made or to be made therefrom pursuant to Section 4.13(c) on such Distribution Date); and

 

  

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(b)                      the Accumulation Period Reserve Account Required Amount for such Distribution Date.

 

"Accumulation Period Reserve Account Cash Deposit Subaccount" has the meaning specified in Section 4.13(a).

 

"Accumulation Period Reserve Account Deposit Amount" means, with respect to each Distribution Date beginning on the Accumulation Period Reserve Account Funding Date and until termination of the Accumulation Period Reserve Account pursuant to Section 4.13(e), the
excess of (a) the Accumulation Period Reserve Account Required Amount for such Distribution Date, over (b) the Accumulation Period Reserve Account Available Amount for such Distribution Date.

 

"Accumulation Period Reserve Account Funding Date" means the Distribution Date occurring in the second Collection Period preceding the scheduled commencement of the Controlled Accumulation Period (or such earlier or later date as may be directed by the Servicer; provided that,
if the Accumulation Period Reserve Account Funding Date occurs on a later date, the Accumulation Period Reserve Account is expected to be fully funded by the commencement of the Controlled Accumulation Period).

 

"Accumulation Period Reserve Account Required Amount" means, with respect to each Distribution Date beginning on the Accumulation Period Reserve Account Funding Date and until the Accumulation Period Reserve Account is terminated pursuant to Section 4.13(e), an
amount equal to __% of the Initial Note Principal Balance.

 

"Accumulation Period Reserve Account Securities Subaccount" has the meaning specified in Section 4.13(a).

 

"Accumulation Period Reserve Draw Amount" means, with respect to any Distribution Date relating to the Controlled Accumulation Period or the first Distribution Date relating to the Early Amortization Period, the excess, if any, of (a) the Covered Amount determined
as of such Distribution Date, over (b) the portion of the Available Investor Interest Collections for such Distribution Date constituting net investment earnings from [the Reserve Fund,] the Principal Funding Account and the Accumulation Period Reserve Account.

 

"Additional Interest" means, with respect to any Distribution Date, the sum of (a) the Class A Additional Interest for such Distribution Date, plus (b) the Class B Additional Interest for such Distribution
Date.

 

"Adjusted Invested Amount" means, with respect to the Series __ Notes as of any date of determination, the excess of (a) the Invested Amount as of such date, over (b) the amounts on deposit in the Principal
Funding Account (excluding amounts relating to investment earnings) on such date; provided that, for the purpose of calculating the Transferor Amount during an Accumulation Period or Amortization Period for this Series, the Adjusted Invested Amount for

 

  

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this Series will be reduced by the amount of any Principal Collections on deposit in the Collection Account (excluding any net investment earnings on amounts on deposit therein) allocable to this Series.

 

"Adjusted Pool Balance" has the meaning specified in the Indenture.

 

"Adjustment Payments" has the meaning specified in the Transfer and Servicing Agreement[s].

 

"Available Investor Interest Collections" means, with respect to any Distribution Date, an amount equal to the sum of (a) the Investor Interest Collections with respect to such Distribution Date, plus (b)
all interest and investment earnings on Eligible Investments credited to [the Reserve Fund,] the Principal Funding Account and the Accumulation Period Reserve Account (net of losses and investment expenses) during the period commencing on and including the Distribution Date immediately preceding such Distribution Date and ending on but excluding such Distribution Date, plus (c) all withdrawals from the Accumulation Period Reserve Account pursuant to Section
4.13(c), plus (d) on the termination of the Accumulation Period Reserve Account pursuant to Section 4.13(e), all remaining amounts on deposit in the Accumulation Period Reserve Account (excluding amounts relating to investment earnings and after giving effect to Section 4.13(c)), plus (e) the Monthly Transferor Servicing Fee for such Distribution Date[, plus (f)
all amounts received from a Swap Counterparty under an Interest Rate Swap with respect to such Distribution Date].

 

"Available Investor Principal Collections" means, with respect to any Distribution Date, an amount equal to the excess of (a) the sum of (i) the Investor Principal Collections for such Distribution Date, plus (ii)
the Series __ Excess Funding Amount, plus (iii) any Shared Principal Collections with respect to other Series in Principal Sharing Group One (including any amounts on deposit in the Excess Funding Account that are allocated to Series __ pursuant to the Indenture for application as Shared Principal Collections)[, plus (iv) upon the termination of the Reserve Fund pursuant to Section 4.11(e), all remaining
amounts on deposit in the Reserve Fund (excluding amounts relating to investment earnings and after giving effect to Section 4.04(b)(iii)),] over (b) any Reallocated Principal Collections for such Distribution Date.

 

"Available Subordinated Amount" means (a) for the first Determination Date, an amount equal to the Required Subordinated Amount for such Determination Date and (b) for any subsequent Determination Date, an amount equal to the lesser of (i) the Required Subordinated
Amount for such Determination Date and (ii) an amount equal to:

 

(A)           the Available Subordinated Amount for the prior Determination Date; minus

 

(B)           the amount of any Available Transferor Collections used to cover certain shortfalls on the related Distribution Date as provided in Section 4.04(b)(ii); minus

 

  

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(C)           the amount of the Available Subordinated Amount reallocated to the Invested Amount on the related Distribution Date as provided in Sections 4.05 and 4.06 in order to avoid a reduction of the Invested
Amount; plus

 

(D)           the amount of any Available Investor Interest Collections available to be distributed as provided in Section 4.04(a)(xii) to the Transferor Interest Account for distribution to the holders of the Transferor
Interest in accordance with the Trust Agreement; minus

 

(E)           the Incremental Subordinated Amount for the prior Determination Date; plus

 

(F)           the Incremental Subordinated Amount for such Determination Date; minus

 

(G)           the Subordinated Percentage of the increase in the Series __ Excess Funding Amount since the prior Distribution Date to the succeeding Distribution Date; plus

 

(H)           the Subordinated Percentage of the decrease in the Series __ Excess Funding Amount since the prior Distribution Date to the succeeding Distribution Date; plus

 

(I)           any increases thereof pursuant to Section 4.09(c).

 

"Available Transferor Collections" has the meaning specified in Section 4.01(b).

 

"Available Transferor Interest Collections" has the meaning specified in Section 4.01(b)(iii).

 

"Available Transferor Principal Collections" has the meaning specified in Section 4.01(b)(iv).

 

"Back-up Servicing Fee Rate" means __% per annum or such lesser percentage as may be specified by the Back-up Servicer, if any, in an Officer's Certificate delivered to the Indenture Trustee.  If no Back-up Servicing Agreement is in effect on any date
of determination, all references to the Back-up Servicing Fee Rate in this Agreement will be deemed to be deleted from this Agreement and to have no further effect.

 

"Business Day" has the meaning specified in the Indenture.

 

"Class A Additional Interest" has the meaning specified in Section 4.02(a).

 

"Class A Interest Shortfall" has the meaning specified in Section 4.02(a).

 

"Class A Monthly Interest" has the meaning specified in Section 4.02(a).

 

  

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"Class A Note Initial Principal Balance" means $________.

 

"Class A Note Interest Rate" means, with respect to each Interest Period, a per annum rate __% in excess of LIBOR, as determined the related LIBOR Determination Date with respect to such Interest Period.

 

"Class A Note Principal Balance" means, as of any date of determination, the Class A Note Initial Principal Balance, minus the aggregate amount of any principal payments made to the Class A Noteholders before
such date.

 

"Class A Noteholder" means the Person in whose name a Class A Note is registered in the Note Register.

 

"Class A Notes" means any one of the Series __ Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A-1.

 

"Class B Additional Interest" has the meaning specified in Section 4.02(b).

 

"Class B Interest Shortfall" has the meaning specified in Section 4.02(b).

 

"Class B Invested Amount" means, as of any date of determination, an amount equal to (a) the Class B Note Initial Principal Balance, minus (b) the aggregate amount of any principal payments made to the Class
B Noteholders before such date, minus (c) the cumulative amount of unreimbursed Uncovered Reallocated Principal Collections immediately before such date, but limited to an amount that would reduce the Class B Invested Amount to zero, minus (d) the cumulative amount of unreimbursed Investor Charge-Offs immediately before such date, but limited to an amount that would reduce the Class B Invested Amount
to zero.

 

"Class B Monthly Interest" has the meaning specified in Section 4.02(b).

 

"Class B Note Initial Principal Balance" means $_________.

 

"Class B Note Interest Rate" means, with respect to each Interest Period, a per annum rate __% in excess of LIBOR, as determined the related LIBOR Determination Date with respect to such Interest Period.

 

"Class B Note Principal Balance" means, as of any date of determination, the Class B Note Initial Principal Balance, minus the aggregate amount of any principal payments made to the Class B Noteholders before
such date.

 

"Class B Noteholder" means the Person in whose name a Class B Note is registered in the Note Register.

 

"Class B Notes" means any one of the Series __ Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A-2.

 

  

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"Closing Date" means _______, 20__.

 

"Controlled Accumulation Amount" means, for any Distribution Date with respect to the Controlled Accumulation Period, $__________; provided, however, that if the Accumulation Period Length is determined to
be less than six months pursuant to Section 4.04(f), the Controlled Accumulation Amount for each Distribution Date with respect to the Controlled Accumulation Period will be equal to (a) the product of (i) the Initial Note Principal Balance, times (ii) the Accumulation Period Factor for such Collection Period, divided by (b) the Required Accumulation Factor Number.

 

"Controlled Accumulation Period" means, unless an Early Amortization Period has commenced prior thereto, the period beginning on the first day of the _______ 20__ Collection Period or such later date as is determined in accordance with Section 4.04(f) and ending
on the earlier to occur of (a) the close of business on the day immediately preceding the commencement of the Early Amortization Period and (b) the end of the Collection Period immediately preceding the Distribution Date on which the Note Principal Balance will be paid in full.

 

"Controlled Deposit Amount" means, for any Distribution Date with respect to the Controlled Accumulation Period, an amount equal to the sum of (a) the Controlled Accumulation Amount for such Distribution Date and (b) any Deficit Controlled Accumulation Amount for
the immediately preceding Distribution Date.

 

"Covered Amount" means, as of any Distribution Date on which the Servicer calculates the Accumulation Period Reserve Draw Amount pursuant to Section 4.13(c), an amount equal to one-twelfth of the product of (a) the amounts on deposit in the Principal Funding
Account as of the immediately preceding Distribution Date (excluding amounts relating to investment earnings and after giving effect to any deposit therein on such preceding Distribution Date), times (b) one-month LIBOR plus __% for the related Interest Period.

 

"Dealer Overconcentration" means, for any Determination Date, the excess, if any, of (a) the aggregate amount of the Issuer's Principal Receivables arising in connection with all the Accounts of a Dealer or a group of affiliated Dealers as of the last day of the
related Collection Period, over (b) __% (or __% in the case of Dealers affiliated with _________ (or its successors in interest)) of the Pool Balance as of the last day of such Collection Period (or, in either case, a higher percentage so long as the Rating Agency Condition has been satisfied).

 

"Defaulted Amount" means, for any Determination Date, an amount (never less than zero) equal to (a) the amount of all Principal Receivables that became Defaulted Receivables during the related Collection Period, plus (b)
if applicable, the principal portion of any Interests in Other Floorplan Assets that defaulted during the related Collection Period, minus (c) the amount of any such Defaulted Receivables or such Interests in Other Floorplan Assets that, in each case, are subject to reassignment to the Transferor[s] in accordance with the terms of the Transfer and Servicing Agreement[s] (except that if an Insolvency Event occurs with respect to a Transferor, the amount
of such Defaulted Receivables that are subject to reassignment to

 

  

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[the]/[such] Transferor will be zero), minus (d) the amount of any such Defaulted Receivables or such Interests in Other Floorplan Assets that, in each case, are subject to assignment to the Servicer in accordance with the terms of the Transfer and Servicing Agreement[s] (except
that if an Insolvency Event occurs with respect to the Servicer, the amount of such Defaulted Receivables that are subject to assignment to the Servicer will be zero).

 

"Deficit Controlled Accumulation Amount" means (a) for the first Distribution Date with respect to the Controlled Accumulation Period, the excess, if any, of the Controlled Accumulation Amount for such first Distribution Date, over the
amount deposited into the Principal Funding Account on such first Distribution Date and (b) for each subsequent Distribution Date with respect to the Controlled Accumulation Period, the excess, if any, of the Controlled Deposit Amount for such subsequent Distribution Date, over the amount deposited into the Principal Funding Account on such subsequent Distribution Date.

 

"Development Dealer Overconcentration" means, for any Determination Date, the excess, if any, of (a) the aggregate amount of the Issuer's Principal Receivables that are Development Dealer Receivables as of the last day of the related Collection Period, over (b)
__% of the Pool Balance as of the last day of such Collection Period (or, a higher percentage so long as the Rating Agency Condition has been satisfied).

 

"Development Dealer Receivables" has the meaning specified in the Transfer and Servicing Agreement[s].

 

"Distribution Date" means _______, 20__ and the 15th day of each calendar month thereafter, or if such 15th day is not a Business Day, the next succeeding Business Day.

 

"Distribution Date Statement" has the meaning specified in Section 5.03(a).

 

"Early Amortization Period" means the period beginning on the first day of the Collection Period in which an Amortization Event with respect to Series __ occurs (or, if the Servicer is required to make daily deposits of Collections into the Collection Account pursuant
to Section 8.04(b) of the Indenture, on the day on which such an Amortization Event occurs) and ending on the earlier to occur of (a) the end of the Collection Period immediately preceding the Distribution Date on which the Note Principal Balance will be paid in full and (b) the Series __ Final Maturity Date.

 

"Excess Interest Collections" has, with respect to Series __, the meaning specified in Section 4.07.

 

"Excess Transferor Percentage" means:

 

(a)           for allocating Interest Collections with respect to any Collection Period, the percentage (not less than 0%) equal to 100%, minus the sum of (i) the sum of the floating investor percentages for all outstanding
Series (including Series __) with respect to such Collection Period and (ii) the percentage equivalent of a fraction, the numerator

 

  

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                of which is the Trust Available Subordinated Amount as of the Determination Date occurring in the immediately preceding Collection Period, and the denominator of which is the Adjusted Pool Balance as of the close of

                business on the last day of the immediately preceding Collection Period; and

 

(b)           for allocating Principal Collections with respect to any Collection Period, the percentage (not less than 0%) equal to 100%, minus the sum of (i) the floating investor percentages for all outstanding Series (including
Series __) that are in their revolving periods with respect to such Collection Period and the fixed investor percentages for all outstanding Series (including Series __) that are not in their revolving periods with respect to such Collection Period and (ii) the percentage equivalent of a fraction, the numerator of which is the Trust Available Subordinated Amount as of the Determination Date occurring in the immediately preceding Collection Period, and the denominator of which is the Adjusted Pool Balance as of
the close of business on the last day of the immediately preceding Collection Period.

 

"Expected Final Payment Date" means the _______ 20__ Distribution Date.

 

"Fixed Investor Percentage" means, with respect to any Collection Period (or portion thereof occurring after the end of the Revolving Period), the percentage equivalent (not to exceed 100%) of a fraction (a) the numerator of which is the Invested Amount as of the
close of business on the last day of the Revolving Period and (b) the denominator of which is the greater of (i) the Adjusted Pool Balance as of the close of business on the last day of the immediately preceding Collection Period and (ii) the sum of the numerators used to calculate the applicable investor percentages for allocating Principal Collections to all outstanding Series (including Series __) with respect to such Collection Period.

 

"Fleet Overconcentration" means, for any Determination Date, the excess, if any, of (a) the aggregate amount of the Issuer's Principal Receivables that are Fleet Receivables as of the last day of the related Collection Period, over (b)
__% of the Pool Balance as of the last day of such Collection Period (or, a higher percentage so long as the Rating Agency Condition has been satisfied).

 

"Floating Investor Percentage" means, with respect to any Collection Period or, the percentage equivalent (not to exceed 100%) of a fraction (a) the numerator of which is the Adjusted Invested Amount as of the close of business on the last day of the immediately
preceding Collection Period (or with respect to the first Collection Period, the Initial Invested Amount) and (b) the denominator of which is the Adjusted Pool Balance as of the close of business on the last day of the immediately preceding Collection Period (or with respect to the first Collection Period, the Adjusted Pool Balance as of the Series Cut-Off Date).

 

"Incremental Subordinated Amount" means, for any Determination Date, the product of:

 

  

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(a)           a fraction, (i) the numerator of which is the greater of (A) zero and (B) an amount equal to (1) the Adjusted Invested Amount as of the related Distribution Date (after giving effect to any changes to be made in such amount on such Distribution Date), plus (2)
the product of the Initial Invested Amount multiplied by the excess of the Required Pool Percentage over 100%, plus (3) the Required Subordinated Amount on such Determination Date (without giving effect to the Incremental Subordinated Amount), minus (4) the Series __ Excess Funding Amount as of such Determination Date (after giving effect to any changes in such amount on such Determination Date) and
(ii) the denominator of which is the Pool Balance as of such Determination Date; times

 

(b)           the Non-Conforming Receivable Amount as of such Determination Date.

 

"Indenture" means the Indenture, dated as of _______, 20__, between the Issuer and the Indenture Trustee, as the same may be amended, supplemented or otherwise modified from time to time.

 

"Indenture Supplement" means this Series __ Indenture Supplement, as the same may be amended, supplemented or otherwise modified from time to time.

 

"Initial Invested Amount" means, with respect to the Series __ Notes, $________.

 

"Initial Note Principal Balance" means the sum of (a) the Class A Note Initial Principal Balance, plus (b) the Class B Note Initial Principal Balance.

 

"Interest Collections Shortfall" has, with respect to Series __, the meaning specified in Section 4.07.

 

"Interest Period" means, with respect to any Distribution Date, the period from and including the Distribution Date immediately preceding such Distribution Date (or, in the case of the first Distribution Date, from and including the Closing Date) to but excluding
such Distribution Date.

 

["Interest Rate Swap" means the ISDA Master Agreement, the Schedule to the Master Agreement and the Confirmation, each dated as of ________, 20__, between __________. and the Issuer, and each other interest rate swap agreement entered into by the Issuer with a
Swap Counterparty in connection with Series __.]

 

"Invested Amount" means, with respect to the Series __ Notes as of any date of determination, an amount equal to (a) the Initial Note Principal Balance, minus (b) the aggregate amount of any principal payments
made to the Class A Noteholders and the Class B Noteholders before such date, minus (c) the cumulative amount of unreimbursed Uncovered Reallocated Principal Collections immediately before such date, minus (d) the cumulative amount of unreimbursed Investor Charge-Offs immediately before such date.

 

"Investor Charge-Off" has the meaning specified in Section 4.05.

 

  

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"Investor Default Amount" means, with respect to any Distribution Date, an amount equal to the product of (a) the Floating Investor Percentage for the related Collection Period, times (b) the Defaulted Amount
for such Collection Period.

 

"Investor Interest Collections" means, with respect to any Distribution Date, an amount equal to the product of (a) the Floating Investor Percentage for the related Collection Period, times (b) the Interest
Collections for such Collection Period.

 

"Investor Percentage" means, with respect to any Collection Period (a) with respect to Interest Collections and Defaulted Amounts at any time and Principal Collections during the Revolving Period, the Floating Investor Percentage and (b) with respect to Principal
Collections during the Controlled Accumulation Period or the Early Amortization Period, the Fixed Investor Percentage.

 

"Investor Principal Collections" means, with respect to any Distribution Date, an amount equal to the sum of (a) the product of (i) the Investor Percentage applicable for the related Collection Period, times (ii)
Principal Collections for such Collection Period, plus (b) any Available Investor Interest Collections, [Reserve Fund Available Amounts,] Excess Interest Collections from other Series in Excess Interest Sharing Group One and Available Transferor Collections that, as provided in Sections 4.04(a) and (b), are to be treated as Investor Principal Collections with respect to such Distribution Date.

 

"LIBOR" means, with respect to any Interest Period, the London interbank offered rate for one-month United States dollar deposits determined by the Indenture Trustee for such Interest Period pursuant to Section 4.12.

 

"LIBOR Determination Date" means, with respect to any Interest Period, the date that is two London Banking Days prior to the commencement of such Interest Period.

 

"London Banking Day" means any day on which commercial banks are open for general business (including dealings in foreign exchange and foreign currency deposits) in London.

 

"Manufacturer Overconcentration" means, for any Determination Date, either:

 

(a)           the excess, if any, of (i) the aggregate amount of the Issuer's Principal Receivables that relate to a particular Manufacturer (other than Ford or one of its associated Manufacturers) with a long-term credit rating of at least "__" by Standard & Poor's and Fitch
(if rated by Fitch), and "__" by Moody's (if rated by Moody's) as of the last day of the related Collection Period, over (ii) __% of the Pool Balance as of the last day of such Collection Period (or a higher percentage so long as the Rating Agency Condition has been satisfied); or

 

(b)           the excess, if any, of (i) the aggregate amount of the Issuer's Principal Receivables that relate to a particular Manufacturer (other than Ford or one of its associated Manufacturers) with a long-term credit rating of "__" or lower by Standard & Poor's or unrated
by Standard & Poor's, or "__" or lower by Fitch (if rated by Fitch), or "__" or lower by Moody's (if rated by

 

  

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Moody's) as of the last day of the related Collection Period, over (ii) __% of the Pool Balance as of the last day of such Collection Period (or a higher percentage so long as the Rating Agency Condition has been satisfied).

 

"Medium & Heavy Truck Overconcentration" means, for any Determination Date, the excess, if any, of (a) the aggregate amount of the Issuer's Principal Receivables that are Medium & Heavy Truck Receivables as of the last day of the related Collection Period, over (b)
__% of the Pool Balance as of the last day of such Collection Period (or, a higher percentage so long as the Rating Agency Condition has been satisfied).

 

"Monthly Back-up Servicing Fee" means, with respect to any Distribution Date, an amount equal to the greater of (a) one-twelfth the product of (i) the Back-up Servicing Fee Rate, (ii) the percentage equivalent of a fraction, the numerator of which is the Floating
Investor Percentage for the related Collection Period and the denominator of which is the sum of the floating investor percentages for all outstanding Series (including Series __) with respect to such Collection Period and (iii) the total amount of Principal Receivables and, if applicable, the principal portion of any Interests in Other Floorplan Assets as of the close of business on the last day of the immediately preceding Collection Period, and (b) $____.  If no Back-up Servicing Agreement is in
effect on any date of determination, all references to the Monthly Back-up Servicing Fee in this Agreement will be deemed to be deleted from this Agreement and to have no further effect.

 

"Monthly Interest" means, with respect to any Distribution Date, the sum of (a) the Class A Monthly Interest for such Distribution Date, plus (b) the Class B Monthly Interest for such Distribution Date.

 

"Monthly Principal Amount" means the monthly principal distributable in respect of the Series __ Notes as determined pursuant to Section 4.03.

 

"Monthly Principal Payment Rate" means, with respect to any Collection Period, the percentage equivalent of a fraction (a) the numerator of which is the Principal Collections with respect to such Collection Period and (b) the denominator of which is the Pool Balance
as of the first day of such Collection Period.

 

"Monthly Servicing Fee" means, with respect to any Distribution Date, an amount equal to one-twelfth of the product of (a) the Servicing Fee Rate, (b) the  percentage equivalent of a fraction, the numerator of which is the Floating Investor Percentage
for the related Collection Period the denominator of which is the sum of the floating investor percentages for all outstanding Series (including Series __) with respect to such Collection Period and (c) the total amount of Principal Receivables and, if applicable, the principal portion of any Interests in Other Floorplan Assets as of the close of business on the last day of the immediately preceding Collection Period, or with respect to the first Collection Period, the total amount of Principal Receivables as
of the Series Cut-Off Date, in either case, excluding the principal portion of any Interests in Other Floorplan Assets owned by the Issuer that are not serviced by the Servicer.

 

  

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"Monthly Transferor Servicing Fee" means, with respect to any Distribution Date, an amount equal to one-twelfth of the product of (a) the product of (i) the sum of the Servicing Fee Rate and the Back-up Servicing Fee Rate, (ii) 100% minus the
sum of the floating investor percentages for all outstanding Series (including Series __) with respect to such Collection Period and (iii) the total amount of Principal Receivables and, if applicable, the principal portion of any Interests in Other Floorplan Assets as of the close of business on the last day of the immediately preceding Collection Period, and (b) the percentage equivalent of a fraction, the numerator of which is the Floating Investor Percentage for the related Collection Period and the denominator
of which is the sum of the floating investor percentages for all outstanding Series (including Series __) with respect to such Collection Period.

 

"Non-Conforming Receivable Amount" means, for any Determination Date, the excess, if any, of:

 

(a)           the sum of (i) Principal Receivables constituting Ineligible Receivables for such Determination Date, plus (ii) the aggregate amount of Dealer Overconcentrations, Development Dealer Overconcentrations, Fleet Overconcentrations,
Manufacturer Overconcentrations, Medium & Heavy Truck Overconcentrations and Used Vehicle Overconcentrations for such Determination Date; over

 

(b)           the sum of (i) Principal Receivables constituting Ineligible Receivables that became Defaulted Receivables during the period beginning on the immediately preceding Determination Date and ending on the day immediately preceding the current Determination Date, plus (ii)
the aggregate amount of Principal Receivables contributing to Dealer Overconcentrations, Development Dealer Overconcentrations, Fleet Overconcentrations, Manufacturer Overconcentrations, Medium & Heavy Truck Overconcentrations and Used Vehicle Overconcentrations that, in each case, became Defaulted Receivables during the period beginning on the immediately preceding Determination Date and ending on the day immediately preceding the current Determination Date.

 

"Note Principal Balance" means, as of any date of determination, the sum of (a) the Class A Note Principal Balance on such date, plus (b) the Class B Note Principal Balance on such date.

 

"Percentage Interest" means the portion of the Transferor Interest, expressed as a percentage, as stated on the face of each Certificate (as defined in the Trust Agreement), if certificated, and otherwise as indicated in the books and records of the Owner Trustee
in accordance with the Trust Agreement.

 

"Pool Balance" has the meaning specified in the Indenture.

 

"Principal Funding Account" has the meaning specified in Section 4.10(a).

 

  

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"Principal Funding Account Cash Deposit Subaccount" has the meaning specified in Section 4.10(a).

 

"Principal Funding Account Securities Subaccount" has the meaning specified in Section 4.10(a).

 

"Principal Sharing Group One" means Series __ and each other Series specified in the related Indenture Supplements to be included in Principal Sharing Group One.

 

"Principal Shortfall" has, with respect to Series __, the meaning specified in Section 4.08(a).

 

"Principal Terms" has the meaning specified in the Indenture.

 

"Rating Agency" means each of Standard & Poor's, Fitch and Moody's.

 

"Rating Agency Condition" means, for any action or request, that (a) [Rating Agency] has notified the Transferor[s], the Servicer and the Indenture Trustee that such action or request will not result in a reduction or withdrawal of its then current rating of any
of the Notes of this Series and (b) the Issuer has given at least ten Business Days' prior written notice to [Rating Agency] (such notice to be provided to the lead rating analyst), and [Rating Agency] has not notified the Transferor[s], the Servicer and the Indenture Trustee in writing that such action will result in such Rating Agency reducing or withdrawing its then current  rating on any of the Notes of this Series.

 

"Reallocated Principal Collections" means, with respect to any Distribution Date, the amount of Investor Principal Collections applied in accordance with Section 4.06 in an amount not to exceed:

 

(a)           with respect to the Class A notes, the sum of the Available Subordinated Amount plus the Class B Invested Amount for that Distribution Date (in each case after giving effect to any change in that amount on that
date); and

 

(b)           with respect to the Class B notes, the Available Subordinated Amount for that Distribution Date (after giving effect to any change in that amount on that date).

 

"Reassignment Amount" means, with respect to any Distribution Date, after giving effect to any deposits and distributions otherwise to be made on such Distribution Date, the sum of (a) the Note Principal Balance on such Distribution Date, plus (b)
the Monthly Interest for such Distribution Date, together with any Monthly Interest previously due but not paid to the Series __ Noteholders on prior Distribution Dates, plus (c) any Additional Interest for such Distribution Date[; plus (d) any amounts owing to any Swap Counterparty].

 

"Reference Banks" means four major banks in the London interbank market selected by the Servicer.

 

  

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"Required Accumulation Factor Number" means a fraction, rounded upwards to the nearest whole number, the numerator of which is one and the denominator of which is equal to the lowest Monthly Principal Payment Rate on the Accounts, expressed as a decimal, for the
twelve months preceding the date of such calculation; provided, however, that this definition may be changed at any time upon receipt by the Indenture Trustee of an Officer's Certificate from the Servicer that such change will not have an Adverse Effect.

 

"Required Pool Percentage" means, __%, except that the Transferor[s] may reduce this percentage so long as the Rating Agency Condition is satisfied.

 

"Required Subordinated Amount" means, as of any date of determination, the sum of:

 

(a)           the greater of (i) zero and (ii) the product of (A) the Subordinated Percentage, times (B) the excess of the Initial Invested Amount over the Series __ Excess Funding Amount on such date (after giving effect to
any changes in such amount on such date); plus

 

(b)           the Incremental Subordinated Amount for such date.

 

"Required Transferor Amount" has the meaning specified in the Indenture.

 

["Reserve Fund'' has the meaning specified in Section 4.11(a).]

 

["Reserve Fund Available Amount" means, with respect to any Distribution Date, the lesser of (a) the amount on deposit in the Reserve Fund on such date (excluding any net investment
earnings on amounts on deposit therein and before giving effect to any (i) deposit made or to be made therein pursuant to Section 4.04(a) on such date or (ii) any withdrawal made or to be made therefrom pursuant to Section 4.04(b)(iii) on such date) and (b) the Reserve Fund Required Amount for such Distribution Date.]

 

["Reserve Fund Cash Deposit Subaccount" has the meaning specified in Section 4.11(a).]

 

["Reserve Fund Deposit Amount" means, with respect to any Distribution Date, the excess, if any, of (a) the Reserve Fund Required Amount for such Distribution Date, over (b)
the Reserve Fund Available Amount for such Distribution Date.]

 

["Reserve Fund Initial Amount" means $_________.]

 

["Reserve Fund Required Amount" means, with respect to any Distribution Date, an amount equal to the product of __%, times the
Adjusted Invested Amount on such Distribution Date (after giving effect to any changes therein on such Distribution Date); provided, however, that the Reserve Fund Required Amount for the Closing Date is the Reserve Fund Initial Amount; and, provided, further, that
for any Distribution Date with respect to the Early

 

  

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Amortization Period, the Reserve Fund Required Amount for such Distribution Date will be the product of __%, times the Initial Note Principal Balance.]

 

["Reserve Fund Securities Subaccount" has the meaning specified in Section 4.11(a).]

 

"Reuters Screen LIBOR01 Page" means the display page currently so designated on the Reuters Capital Markets service (or such other page as may replace such page in that service for the purpose of displaying comparable rates or prices).

 

"Revolving Period" means the period beginning on the Closing Date and ending on the earlier of the close of business on the day immediately preceding the date on which the Controlled Accumulation Period or the Early Amortization Period commences.

 

"Securities Intermediary" has the meaning specified in the Indenture.

 

"Series __" means the Series of Notes, the Principal Terms of which are specified in this Indenture Supplement.

 

"Series __ Amortization Event" has the meaning specified in Section 6.01.

 

"Series __ Excess Funding Amount" means, as of any date of determination, the product of (a) the amount on deposit in the Excess Funding Account (excluding amounts relating to investment earnings) on such date, times (b)
a fraction (i) the numerator of which is the Adjusted Invested Amount as of such date and (ii) the denominator of which is the sum of the adjusted invested amounts of each outstanding Series (including Series __) being allocated a portion of the funds on deposit in the Excess Funding Account.

 

"Series __ Final Maturity Date" means the _______ 20__ Distribution Date.

 

"Series __ Note" means a Class A Note or a Class B Note.

 

"Series __ Noteholder" means a Class A Noteholder or a Class B Noteholder.

 

"Series __ Noteholders' Collateral" means the Noteholders' Collateral for Series __.

 

"Series Account Cash Deposit Subaccounts" means, with respect to Series __, the Principal Funding Account Cash Deposit Subaccount[, the Reserve Fund Cash Deposit Subaccount] and the Accumulation Period Reserve Account Cash Deposit Subaccount.

 

"Series Accounts" means, with respect to Series __, the Principal Funding Account[, the Reserve Fund] and the Accumulation Period Reserve Account.

 

"Series Account Securities Subaccounts" means, with respect to Series __, the Principal Funding Account Securities Subaccount[, the Reserve Fund Securities Subaccount] and the Accumulation Period Reserve Account Securities Subaccount.

 

  

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"Series Collateral" has the meaning specified in the Granting Clauses of this Indenture Supplement.

 

"Series Cut-Off Date" means the close of business on _______, 20__.

 

"Servicing Fee Rate" means __% per annum or such lesser percentage as may be specified by the Servicer in an Officer's Certificate delivered to the Indenture Trustee stating that, in the reasonable belief of the Servicer, such change in percentage will not result
in an Adverse Effect.

 

"Shared Principal Collections" has, with respect to Series __, the meaning specified in Section 4.08.

 

"Subordinated Percentage" means the percentage equivalent of a fraction (a) the numerator of which is the Subordination Factor and (b) the denominator of which is the excess of 100%, over the Subordination
Factor.

 

"Subordination Factor" means, for the Series __ Notes, __%.

 

["Swap Counterparty" means ____________, or its permitted successors and assigns, or any other swap counterparty under an Interest Rate Swap.]

 

"Transferor Amount" has the meaning specified in the Indenture.

 

"Transferor Interest Collections" means, with respect to any Collection Period, the product of (a) the applicable Transferor Percentage for such Collection Period, times (b) the Interest Collections for such
Collection Period.

 

"Transferor Percentage" has the meaning specified in the Indenture.

 

"Transferor Principal Collections" means, with respect to any Collection Period, the product of (a) the applicable Transferor Percentage for such Collection Period, times (b) the Principal Collections for
such Collection Period.

 

"Transition Costs" has the meaning specified in the Transfer and Servicing Agreement[s].

 

"Trust Available Subordinated Amount" means, as of any date of determination, the sum of the available subordinated amounts as of such date for all outstanding Series (including Series __).

 

"Uncovered Reallocated Principal Collections" has the meaning specified in Section 4.06.

 

"Used Vehicle Overconcentration" means, for any Determination Date, the excess, if any, of (a) the aggregate amount of the Issuer's Principal Receivables relating to Used Vehicles

 

  

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as of the last day of the related Collection Period, over (b)__% of the Pool Balance as of the last day of such Collection Period (or a higher percentage so long as the Rating Agency Condition has been satisfied).

 

Section 2.02.                      Other Definitional Provisions.

 

(a)                      All terms used herein and not otherwise defined herein have meanings ascribed to them in the Indenture, the Transfer and Servicing Agreement
or the Trust Agreement, as applicable.

 

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

 

(c)                      As used in this Indenture Supplement and in any certificate or other document made or delivered pursuant hereto or thereto, accounting
terms not defined in this Indenture Supplement or in any such certificate or other document, and accounting terms partly defined in this Indenture Supplement or in any such certificate or other document to the extent not defined, have the respective meanings given to them under generally accepted accounting principles or regulatory accounting principles, as applicable and as in effect on the date of this Indenture Supplement. To the extent that the definitions of accounting terms in this Indenture Supplement
or in any such certificate or other document are inconsistent with the meanings of such terms under generally accepted accounting principles or regulatory accounting principles in the United States, the definitions contained in this Indenture Supplement or in any such certificate or other document control.

 

(d)                      Unless otherwise specified, references to any dollar amount as of any particular date means such amount at the close of business on such
day.

 

(e)                      The words "hereof," "herein" and "hereunder" and words of similar import when used in this Indenture Supplement refer to this Indenture
Supplement as a whole and not to any particular provision of this Indenture Supplement. References to any subsection, Section, Schedule or Exhibit are references to subsections, Sections, Schedules and Exhibits in or to this Indenture Supplement, unless otherwise specified. The term "including" means "including without limitation."

 

 

ARTICLE III

 

Servicing Fee

 

Section 3.01.                      Servicing Compensation.

 

The share of the Servicing Fee allocable to the Series __ Noteholders with respect to any Distribution Date is equal to the Monthly Servicing Fee. The portion of the Servicing Fee that is not allocable to the Series __ Noteholders will be paid by the holders of the Transferor Interest or

 

  

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the Noteholders of other Series (as provided in the related Indenture Supplements) and in no event will the Issuer, the Indenture Trustee or the Series __ Noteholders be liable for the share of the Servicing Fee to be paid by the holders of the Transferor Interest or the Noteholders of any other Series.

 

 

ARTICLE IV

 

Rights of Series __ Noteholders

and Allocation and Application of Collections

 

Section 4.01.                      Collections and Allocations.

 

(a)                      Allocations.  As provided in Section 8.03(a) of the Indenture, Interest
Collections and Principal Collections, as well as Defaulted Receivables, will be allocated between Series __ and the Transferor Interest and then applied in respect thereof pursuant to this Article IV.

 

(b)                      Allocations to Transferor Interest.  The Servicer will on each Deposit
Date make the following allocations to the Transferor Interest:

 

(i)           an amount equal to the product of the Excess Transferor Percentage for the related Collection Period and the Interest Collections for such Collection Period will be deducted from the Transferor Interest
Collections for such Collection Period and distributed to the Transferor Interest Account for distribution to the holders of the Transferor Interest in accordance with the Trust Agreement; provided, that an amount equal to the Monthly Transferor Servicing Fee for each Series (including Series __) will be deducted from the amount to be distributed to the holders of the Transferor Interest and such amount will be deposited into the Collection Account;

 

(ii)           an amount equal to the product of the Excess Transferor Percentage for the related Collection Period and the Principal Collections for such Collection Period will be deducted from the Transferor Principal
Collections for such Collection Period and distributed to the Transferor Interest Account for distribution to the holders of the Transferor Interest in accordance with the Trust Agreement, but only to the extent that the Transferor Amount on such Deposit Date (determined after giving effect to any Principal Receivables or, if applicable, Interests in Other Floorplan Assets transferred to the Issuer) exceeds the Required Transferor Amount for the immediately preceding Determination Date; provided,
that an amount equal to the Monthly Transferor Servicing Fee for each Series (including Series __) not distributed pursuant to clause (i) above will be deducted from the amount to be distributed to the holders of the Transferor Interest and such amount will be deposited into the Collection Account;

 

(iii)           an amount equal to the excess of (A) the Transferor Interest Collections for the related Collection Period, over (B) the amount calculated pursuant
to clause (i)

 

  

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                 above will constitute "Available Transferor Interest Collections" for such Collection Period; and

 

(iv)           an amount equal to the excess of (A) the Transferor Principal Collections for the related Collection Period, over (B) the amount calculated pursuant
to clause (ii) above will constitute "Available Transferor Principal Collections" for such Collection Period.

 

Unless the Servicer is allocating pursuant to another method which satisfies the Rating Agency Condition for each outstanding Series, the sum of Available Transferor Interest Collections and Available Transferor Principal Collections for any Collection Period (such sum being "Available
Transferor Collections" for such Collection Period) will be deposited into the Collection Account for application as provided herein and in any other Indenture Supplements, but only to the extent that (i) (A) such funds are needed to cover (pursuant to Section 4.04(b)(ii)) shortfalls in distributions and deposits required to be made from Available Investor Interest Collections for the related Distribution Date and Excess Interest Collections for such Distribution Date available for the Series __ Notes
from other Series in Excess Interest Sharing Group One or (B) such funds are needed to cover similar shortfalls for other Series or (ii) during an Early Amortization Period, such funds (in an amount not to exceed the Available Subordinated Amount) are needed to cover amounts payable pursuant to Section 4.04(d)(iii) for the related Distribution Date. Any remaining Available Transferor Collections not required to be deposited into the Collection Account will be distributed to the Transferor Interest Account for
distribution to the holders of the Transferor Interest in accordance with the Trust Agreement, but only to the extent that the Transferor Amount on such Deposit Date (determined after giving effect to any Principal Receivables or, if applicable, Interests in Other Floorplan Assets transferred to the Issuer) exceeds the Required Transferor Amount for the immediately preceding Determination Date (after giving effect to the allocations, distributions, withdrawals and deposits to be made on the Distribution Date
immediately following such Determination Date).

 

The allocations made from Collections in respect of the Transferor Interest pursuant to this Section 4.01(b) do not apply to funds deposited into the Collection Account that do not represent Collections. Such funds that do not represent Collections include payment of the purchase price for the Noteholders' Collateral pursuant to Section
2.03(c) or 6.01 of the Transfer and Servicing Agreement[s] or Section 5.05 or 11.04 of the Indenture and payment of the purchase price for the Series __ Noteholders' Collateral pursuant to Section 7.01 of this Indenture Supplement.

 

Notwithstanding anything to the contrary herein or in the Indenture, all Interest Collections and Principal Collections relating to the time period from but excluding the Series Cut-Off Date to but excluding the Closing Date, will not be subject to allocation to Series __ pursuant to the Indenture or this Indenture Supplement. All such
Collections will be allocated solely to the Transferor Interest and will be distributed by the Servicer to the Owner Trustee for distribution to the holders of the Transferor Interest in accordance with the Trust Agreement.

 

  

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(c)           Allocations to Series __.  The Servicer will on each Deposit Date allocate to the Series __ Noteholders and deposit into the Collection
Account for application as provided herein the following amounts:

 

(i)           an amount equal to the sum of (A) the product of the Floating Investor Percentage for the related Collection Period and the Interest Collections for such Collection Period and (B) the Monthly Transferor
Servicing Fee, but only to the extent necessary to cause the amounts then on deposit in the Collection Account due to deposits therein pursuant to this clause (i) to equal the amounts to be distributed on the related Distribution Date pursuant to clauses (i) through (xv) of Section 4.04(a); and

 

(ii)           an amount equal to the product of the Investor Percentage applicable for the related Collection Period and the Principal Collections for such Collection Period, but only to the extent necessary to cause
the amounts then on deposit in the Collection Account due to deposits therein pursuant to this clause (ii) to equal the amounts to be distributed on the related Distribution Date pursuant to Section 4.04(b)(iv), (c) or (d), as applicable.

 

Section 4.02.                      Determination of Monthly Interest.

 

(a)                      The amount of monthly interest (the "Class A Monthly Interest")
distributable from the Collection Account with respect to the Class A Notes on any Distribution Date will be calculated by the Servicer and will be an amount equal to the product of (i) a fraction, the numerator of which is the actual number of days in the related Interest Period and the denominator of which is 360, times (ii) the Class A Note Interest Rate in effect with respect to the related Interest Period, times (iii)
the Class A Note Principal Balance as of the close of business on the last day of the related Collection Period.

 

On the Determination Date relating to each Distribution Date, the Servicer will determine the excess, if any (such excess, the "Class A Interest Shortfall"), of (1) the Class A Monthly Interest for such Distribution Date, over (2)
the aggregate amount of funds allocated and available to pay such Class A Monthly Interest on such Distribution Date. If the Class A Interest Shortfall with respect to any Distribution Date is greater than zero, on each subsequent Distribution Date until such Class A Interest Shortfall is fully paid, an additional amount (the "Class A Additional Interest") calculated by the Servicer and equal to the product of (i) a fraction, the numerator
of which is the actual number of days in the related Interest Period and the denominator of which is 360, times (ii) the Class A Note Interest Rate in effect with respect to the related Interest Period, times (iii) such Class A Interest Shortfall (including any unpaid Class A Interest Shortfalls for prior Distribution Dates) will be payable as provided herein with respect to the Class A Notes. Notwithstanding
anything to the contrary herein, the Class A Additional Interest will be payable or distributed to the Class A Noteholders only to the extent permitted by applicable law.

 

  

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(b)           The amount of monthly interest (the "Class B Monthly Interest") distributable from the Collection Account with respect to the
Class B Notes on any Distribution Date will be calculated by the Servicer and will be an amount equal to the product of (i) a fraction, the numerator of which is the actual number of days in the related Interest Period and the denominator of which is 360, times (ii) the Class B Note Interest Rate in effect with respect to the related Interest Period, times (iii) the Class B Note Principal Balance
as of the close of business on the last day of the related Collection Period.

 

On the Determination Date relating to each Distribution Date, the Servicer will determine the excess, if any (such excess, the "Class B Interest Shortfall"), of (1) the Class B Monthly Interest for such Distribution Date, over (2)
the aggregate amount of funds allocated and available to pay such Class B Monthly Interest on such Distribution Date. If the Class B Interest Shortfall with respect to any Distribution Date is greater than zero, on each subsequent Distribution Date until such Class B Interest Shortfall is fully paid, an additional amount (the "Class B Additional Interest") calculated by the Servicer and equal to the product of (i) a fraction, the numerator
of which is the actual number of days in the related Interest Period and the denominator of which is 360, times (ii) the Class B Note Interest Rate in effect with respect to the related Interest Period, times (iii) such Class B Interest Shortfall (including any unpaid Class B Interest Shortfalls for prior Distribution Dates) will be payable as provided herein with respect to the Class B Notes. Notwithstanding
anything to the contrary herein, the Class B Additional Interest will be payable or distributed to the Class B Noteholders only to the extent permitted by applicable law.

 

Section 4.03.                      Determination of Monthly Principal Amount.

 

The amount of monthly principal distributable from the Collection Account with respect to the Notes on each Distribution Date (the "Monthly Principal Amount"), beginning with the Distribution Date in the month following the month in which the Controlled Accumulation
Period or, if earlier, the Early Amortization Period, begins, will be equal to the least of (i) the Available Investor Principal Collections with respect to such Distribution Date, (ii) for each Distribution Date with respect to the Controlled Accumulation Period, the Controlled Deposit Amount for such Distribution Date and (iii) the Adjusted Invested Amount as of such Distribution Date (after taking into account any adjustments to be made on such Distribution Date pursuant to Sections 4.05 and 4.06).

 

Section 4.04.                      Application of Available Funds on Deposit in Collection Account
and Other Sources.

 

(a)                      On each Distribution Date, the Servicer will apply, or direct the Indenture Trustee to apply by written instruction to the Indenture Trustee,
Available Investor Interest Collections with respect to such Distribution Date on deposit in the Collection Account to make the following distributions or deposits in the following priority:

 

  

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                (i)            an amount equal to the Class A Monthly Interest for such Distribution Date, together with any Class A Monthly
Interest previously due but not paid to the Class A Noteholders on prior Distribution Dates

and any Class A Additional Interest for such Distribution Date, will be distributed to the Paying Agent for payment to the Class A Noteholders;

 

(ii)           an amount equal to the Class B Monthly Interest for such Distribution Date, together with any Class B Monthly Interest previously due but not paid to the Class B Noteholders on prior Distribution Dates
and any Class B Additional Interest for such Distribution Date, will be distributed to the Paying Agent for payment to the Class B Noteholders;

 

(iii)           [an amount equal to the payment owed by the Issuer to each Swap Counterparty under the related Interest Rate Swap for such Distribution Date, together with any amounts previously owed by the Issuer
but not distributed to such Swap Counterparty on prior Distribution Dates, will be distributed to such Swap Counterparty;]/[Reserved;]

 

(iv)           an amount equal to the fees, expenses and indemnities due to the Owner Trustee, the Delaware Trustee and the Indenture Trustee for the Series __ Notes, and any expenses incurred by the Issuer for the
Series __ Notes in accordance with the Transaction Documents, in each case, to the extent not paid by the Servicer or the Administrator, up to a maximum of $_______ per year, will be distributed to the Owner Trustee, the Delaware Trustee, the Indenture Trustee and the Issuer, as applicable;

 

(v)           pro rata (A) an amount equal to the Monthly Back-up Servicing Fee for such Distribution Date, if any, together with any Monthly Back-up Servicing
Fees previously due but not distributed to the Back-up Servicer on prior Distribution Dates, will be distributed to the Back-up Servicer, and (B) if Ford Credit or one of its Affiliates is no longer the Servicer, an amount equal to the Monthly Servicing Fee for such Distribution Date, together with any Monthly Servicing Fees previously due but not distributed to the Servicer on prior Distribution Dates, will be distributed to the Servicer (unless such amount has been netted against deposits into the Collection
Account in accordance with Section 8.04(c) of the Indenture);

 

(vi)           an amount equal to the Investor Default Amount for such Distribution Date will be treated as Investor Principal Collections for such Distribution Date;

 

(vii)           [an amount equal to the Reserve Fund Deposit Amount for such Distribution Date will be deposited into the Reserve Fund;]/[Reserved;]

 

(viii)           an amount equal to the sum of Investor Charge-Offs that have not been previously reimbursed will be treated as Investor Principal Collections for such Distribution Date;

 

  

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(ix)           an amount equal to the sum of Reallocated Principal Collections that have not been previously reimbursed will be treated as Investor Principal Collections for such Distribution Date;

 

(x)           beginning on the Accumulation Period Reserve Account Funding Date, an amount equal to the Accumulation Period Reserve Account Deposit Amount for such Distribution Date will be deposited into the Accumulation
Period Reserve Account;

 

(xi)           if Ford Credit or one of its Affiliates is the Servicer, an amount equal to the Monthly Servicing Fee for such Distribution Date, together with any Monthly Servicing Fees previously due but not distributed
to the Servicer on prior Distribution Dates, will be distributed to the Servicer (unless such amount has been netted against deposits into the Collection Account in accordance with Section 8.04(c) of the Indenture);

 

(xii)           an amount equal to the excess of the Required Subordinated Amount over the Available Subordinated Amount will be distributed to the Transferor Interest Account for distribution to the holders of the
Transferor Interest in accordance with the Trust Agreement to increase the Available Subordinated Amount by the amount so distributed (unless such amount has been netted against deposits into the Collection Account in accordance with Section 8.04(c) of the Indenture);

 

(xiii)           an amount equal to the fees, expenses and indemnities due to the Owner Trustee, the Delaware Trustee and the Indenture Trustee for the Series __ Notes, and any expenses incurred by the Issuer for the
Series __ Notes in accordance with the Transaction Documents, in each case, to the extent not paid by the Servicer or the Administrator or pursuant to clause (iii) above, will be distributed to the Owner Trustee, the Delaware Trustee, the Indenture Trustee and the Issuer, as applicable;

 

(xiv)           pro rata, (A) any amounts due to the Back-up Servicer under the Back-up Servicing Agreement and remaining unpaid will be distributed to the Back-up
Servicer and (B) any Transition Costs incurred by the Successor Servicer in excess of the amount on deposit in the Back-up Servicer Reserve Account will be distributed to the Successor Servicer;

 

(xv)           an amount equal to the Interest Collections Shortfalls for other outstanding Series in Excess Interest Sharing Group One will be treated as Excess Interest Collections available from Series __ and applied
to cover the Interest Collections Shortfalls for other outstanding Series in Excess Interest Sharing Group One; and

 

(xvi)           all remaining Available Investor Interest Collections for such Distribution Date will be distributed to the Transferor Interest Account for distribution to the holders of the Transferor Interest in
accordance with the Trust Agreement (unless such amount

 

  

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                has been netted against deposits into the Collection Account in accordance with Section 8.04(c) of the Indenture).

 

(b)                      If Available Investor Interest Collections with respect to any Distribution Date are insufficient to distribute or deposit the full amounts
required under certain of the clauses of Section 4.04(a), the Servicer will apply, or direct the Indenture Trustee to apply by written instructions to the Indenture Trustee, on such Distribution Date available funds from the following sources in the following order to make up any shortfalls:

 

(i)           from Excess Interest Collections available from other outstanding Series in Excess Interest Sharing Group One, but only to cover shortfalls in the distributions and deposits required under clauses (i)
through (xiv) of Section 4.04(a) in that order;

 

(ii)           from Available Transferor Collections available for deposit into the Collection Account, but only in an amount not exceeding the Available Subordinated Amount (before giving effect to Section 4.05) for
such Distribution Date and only to cover shortfalls in the distributions and deposits required under clauses (i) through (ix) of Section 4.04(a) in that order; provided that, if the amount of Available Transferor Collections is insufficient to cover such shortfalls for Series __, as well as any similar shortfalls for other Series, then Available Transferor Collections will be allocated to Series __ based on the ratio that the Available Subordinated Amount
for Series __ bears to the aggregate Available Subordinated Amount for all Series (including Series __) having such shortfalls; and, provided, further, that if the amount of Available Transferor Collections exceeds the aggregate amount of such shortfalls for all Series (including Series __), then the excess Available Transferor Collections will be applied to cover any unpaid Adjustment Payments;

 

(iii)           [from the Reserve Fund Available Amount, but only to cover shortfalls in the distributions and deposits required under clauses (i) through (vi) of Section 4.03(a) in that order;] and

 

(iv)           from the Reallocated Principal Collections for such Distribution Date, but only to cover shortfalls in the distribution required under clauses (i) and (ii) of Section 4.04(a).

 

(c)                      On each Distribution Date with respect to the Revolving Period, the Servicer will apply, or direct the Indenture Trustee to apply by written
instruction to the Indenture Trustee, Available Investor Principal Collections on deposit in the Collection Account with respect to such Distribution Date to make the following distributions or deposits in the following priority:

 

(i)           such Available Investor Principal Collections will be treated as Shared Principal Collections with respect to Principal Sharing Group One and applied in accordance with Section 4.08 hereof and Section
8.05(c) of the Indenture; and

 

  

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(ii)           the balance of such Available Investor Principal Collections not applied pursuant to clause (i) above will be distributed to the Transferor Interest Account for distribution to the holders of the Transferor
Interest in accordance with the Trust Agreement (unless such amount has been netted against deposits into the Collection Account in accordance with Section 8.04(c) of the Indenture), but only to the extent that such balance is not otherwise required to be deposited into the Excess Funding Account pursuant to Section 8.03(b) of the Indenture.

 

(d)                      On each Distribution Date with respect to the Controlled Accumulation Period or the Early Amortization Period, the Servicer will apply,
or direct the Indenture Trustee to apply by written instruction to the Indenture Trustee, Available Investor Principal Collections on deposit in the Collection Account with respect to such Distribution Date to make the following distributions or deposits in the following priority:

 

(i)           during the Controlled Accumulation Period and before the payment in full of the Class A Notes and the Class B Notes, (A) an amount equal to the excess, if any, of the Monthly Principal Amount for such
Distribution Date, over the Series __ Excess Funding Amount (up to the Controlled Deposit Amount for such Distribution Date) will be deposited into the Principal Funding Account and (B) the Series __ Excess Funding Amount (up to the Controlled Deposit Amount for such Distribution Date) will be withdrawn from the Excess Funding Account and deposited into the Principal Funding Account;

 

(ii)           so long as the Early Amortization Period has not commenced, on the Expected Final Payment Date, all Available Investor Principal Collections for such Distribution Date, together with all available amounts
then on deposit in the Principal Funding Account (including any Series __ Excess Funding Amount deposited therein during the related Collection Period), will be distributed to the Paying Agent for payment first to the Class A Noteholders until the Principal Balance of the Class A Notes is reduced to zero and then for payment to the Class B Noteholders until the Principal Balance of the Class B Notes is reduced to zero;

 

(iii)           during the Early Amortization Period, all Available Investor Principal Collections for such Distribution Date, together with all available amounts, if any, then on deposit in the Principal Funding Account
(including any Series __ Excess Funding Amount deposited therein during the related Collection Period or on such Distribution Date and Available Transferor Collections (in an amount not to exceed the Available Subordinated Amount)), will be distributed to the Paying Agent first for payment to the Class A Noteholders until the Principal Balance of the Class A Notes is reduced to zero and then for payment to the Class B Noteholders until the Principal Balance of the Class B Notes is reduced to zero; and

 

  

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(iv)           the balance of such Available Investor Principal Collections will be treated as Shared Principal Collections with respect to Principal Sharing Group One and applied in accordance with Section 4.08 hereof
and Section 8.05(c) of the Indenture.

 

(e)                      On each Distribution Date with respect to the Controlled Accumulation Period, the Indenture Trustee, acting in accordance with written
instructions from the Servicer, will withdraw from the Excess Funding Account and deposit into the Principal Funding Account the Series __ Excess Funding Amount (up to the Controlled Deposit Amount for such Distribution Date) pursuant to Section 4.04(d)(i). On the first Distribution Date with respect to the Early Amortization Period, the Indenture Trustee, acting in accordance with the written instructions from the Servicer, will withdraw from the Excess Funding Account and distribute to the Paying Agent for
payment to the Series __ Noteholders the Series __ Excess Funding Amount pursuant to Section 4.04(d)(iii).

 

(f)                      The Controlled Accumulation Period is scheduled to commence on the first day of the ________ 20__ Collection Period; provided,
however, that, if the Accumulation Period Length (determined as described below) is less than six Collection Periods, the date on which the Controlled Accumulation Period actually commences will be delayed to the first day of the Collection Period that is the number of whole Collection Periods before the Expected Final Payment Date at least equal to the Accumulation Period Length and, as a result, the number of Collection Periods in the Controlled Accumulation Period will at least equal the Accumulation
Period Length. On or before each Determination Date beginning with the Determination Date in the ________ 20__ Collection Period and ending when the Controlled Accumulation Period begins, the Servicer will determine the "Accumulation Period Length," which will equal the number of whole Collection Periods such that the sum of the Accumulation Period Factors for each Collection Period during such period will be equal to or greater than
the Required Accumulation Factor Number; provided, however, that the Accumulation Period Length will not be determined to be less than one Collection Period; and provided, further, that the determination of the Accumulation Period Length may be changed at any time upon receipt by the Indenture Trustee of an Officer's Certificate from the Servicer that such change will not have an Adverse Effect.

 

(g)                      The amount of all distributions and deposits that are required to be made by the Indenture Trustee pursuant to Sections 4.04, 4.06, 4.09,
4.10, 4.13 and 4.14 will be set forth in written instructions provided by the Servicer to the Indenture Trustee no later than the second (2nd) Business Day prior to the related Distribution Date or other date on which the related distribution or deposit is required to be made by the Indenture Trustee.

 

(h)                      All distributions that are made by the Indenture Trustee to the Transferor Interest Account for distribution to the holders of the Transferor
Interest pursuant to this Indenture Supplement will be made in accordance with such written remittance instructions as may be provided to the Indenture Trustee by the Owner Trustee from time to time.

 

  

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Section 4.05.                      Investor Charge-Offs.

 

On each Determination Date, the Servicer will calculate the Investor Default Amount, if any, for the related Distribution Date. If the Investor Default Amount for any Distribution Date exceeds the sum of:

 

(i)           the Available Investor Interest Collections for such Distribution Date applied to fund such Investor Default Amount pursuant to Section 4.04(a)(v);

 

(ii)           the Excess Interest Collections available from other outstanding Series in Excess Interest Sharing Group One for such Distribution Date applied to fund such Investor Default Amount pursuant to Section
4.04(a)(v) in accordance with Section 4.04(b)(i);

 

(iii)           the Available Transferor Collections retained in the Collection Account for such Distribution Date applied to fund such Investor Default Amount pursuant to Section 4.04(a)(v) in accordance with Section
4.04(b)(ii); and

 

(iv)           [the Reserve Fund Available Amount for such Distribution Date applied to fund such Investor Default Amount pursuant to Section 4.04(a)(v) in accordance with Section 4.04(b)(iii);]

 

then, if the Available Subordinated Amount is greater than zero (after giving effect to any reductions thereof pursuant to Section 4.04(b)(ii)), a portion of the Available Subordinated Amount for the related Determination Date, in an amount not to exceed the lesser of (1) the Available Subordinated Amount and (2) the amount of such unfunded
Investor Default Amount, will be reallocated to the Series __ Notes in order to avoid a reduction of the Invested Amount. Any excess of the amount of such unfunded Investor Default Amount over the amount of the Available Subordinated Amount reallocated pursuant to this Section will constitute an "Investor Charge-Off" for such Distribution Date and will reduce the Invested Amount. The amount of any Available Subordinated Amount reallocated
pursuant to this Section will reduce the Available Subordinated Amount by the amount so reallocated.

 

Section 4.06.                      Reallocated Principal Collections.

 

On each Distribution Date, the Servicer will apply, or direct the Indenture Trustee by written instruction to the Indenture Trustee to withdraw from the Collection Account and apply, Reallocated Principal Collections with respect to such Distribution Date and apply such amounts on such Distribution Date in accordance with Section 4.04(b)(iv).  If,
on any Distribution Date, Reallocated Principal Collections for such Distribution Date are so applied, then, if the Available Subordinated Amount is greater than zero (after giving effect to any reductions thereof pursuant to Sections 4.04(b)(ii) and 4.05), a portion of the Available Subordinated Amount, in an amount not to exceed the lesser of (1) the Available Subordinated Amount and (2) the amount of such Reallocated Principal Collections, will be reallocated to the Series __ Notes in order to avoid a

 

  

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reduction of the Invested Amount. Any excess of the amount of such Reallocated Principal Collections over the amount of the Available Subordinated Amount reallocated pursuant to this Section will constitute "Uncovered Reallocated Principal Collections" for such
Distribution Date and will reduce the Invested Amount. The amount of any Available Subordinated Amount reallocated pursuant to this Section will reduce the Available Subordinated Amount by the amount so reallocated.

 

Section 4.07.                      Excess Interest Collections.

 

Subject to Section 8.05(b) of the Indenture, Excess Interest Collections with respect to the Excess Interest Sharing Series in Excess Interest Sharing Group One for any Distribution Date will be allocated to Series __ in an amount equal to the product of (i) the aggregate amount of Excess Interest Collections with respect to all the Excess
Interest Sharing Series in Excess Interest Sharing Group One for such Distribution Date and (ii) a fraction, the numerator of which is the Interest Collections Shortfall for Series __ for such Distribution Date and the denominator of which is the aggregate amount of Interest Collections Shortfalls for all the Excess Interest Sharing Series in Excess Interest Sharing Group One for such Distribution Date. The "Interest Collections Shortfall"
for Series __ for any Distribution Date will equal the excess, if any, of (a) the full amount required to be paid, without duplication, pursuant to clauses (i) through (xiv) of Section 4.04(a) on such Distribution Date, over (b) the Available Investor Interest Collections for such Distribution Date. The "Excess Interest Collections" with respect to Series __ for any Distribution
Date will equal the excess, if any, of (a) the Available Investor Interest Collections for such Distribution Date, over (b) the full amount required to be distributed, without duplication, pursuant to clauses (i) through (xiv) of Section 4.04(a) on such Distribution Date.

 

Section 4.08.                      Shared Principal Collections.

 

Subject to Section 8.05(c) of the Indenture, the aggregate amount of Shared Principal Collections with respect to the Principal Sharing Series in Principal Sharing Group One for any Distribution Date will be allocated to Series __ in an amount equal to the product of (i) such aggregate amount, times (ii)
a fraction, the numerator of which is the Principal Shortfall for Series __ for such Distribution Date and the denominator of which is the aggregate amount of Principal Shortfalls for all the Principal Sharing Series in Principal Sharing Group One for such Distribution Date. The "Principal Shortfall" for Series __ for any Distribution Date will equal (a) for any Distribution Date with respect to the Revolving Period, zero, and (b) for
any Distribution Date with respect to the Controlled Accumulation Period or the Early Amortization Period, the excess, if any, of the Monthly Principal Amount with respect to such Distribution Date, over the amount of Available Investor Principal Collections for such Distribution Date (excluding any portion thereof attributable to Shared Principal Collections). The "Shared Principal Collections"
with respect to Series __ for any Distribution Date will equal the excess, if any, of (a) the Available Investor Principal Collections for such Distribution Date (without giving effect to clause (a)(ii) of the definition thereof), over (b) the full amount required to be deposited or distributed, without duplication, pursuant to Sections 4.04(c) and (d) on such Distribution Date.

 

  

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Section 4.09.                      Available Subordinated Amount.

 

(a)                      On each Distribution Date, the Servicer will apply, or cause the Indenture Trustee by written instruction to the Indenture Trustee to withdraw
the Available Transferor Collections on deposit in the Collection Account with respect to such Distribution Date and apply, such amounts to the extent necessary on such Distribution Date in accordance with Section 4.04(b)(ii). The amount of any such Available Transferor Collections so applied on any Distribution Date will reduce the Available Subordinated Amount by the amount so applied. The balance of Available Transferor Collections on deposit in the Collection Account on any Distribution Date, after giving
effect to any distributions or deposits thereof in accordance with Section 4.04(b)(ii), will be distributed by the Indenture Trustee, at the written direction of the Servicer, to the Transferor Interest Account for distribution to the holders of the Transferor Interest in accordance with the Trust Agreement, but only to the extent that the Transferor Amount (determined after giving effect to any Principal Receivables or, if applicable, Interests in Other Floorplan Assets transferred to the Issuer on such Distribution
Date) exceeds the Required Transferor Amount for the immediately preceding Determination Date. In addition, during an Early Amortization Period, Available Transferor Collections, to the extent of the Available Subordinated Amount, will be available for distribution in accordance with Section 4.04(d)(iii).  However, the amount of any such Available Transferor Collections so applied on any Distribution Date will not reduce the Available Subordinated Amount by the amount so applied.

 

(b)                      The Available Subordinated Amount may also be reallocated to the Invested Amount in order to avoid a reduction of the Invested Amount pursuant
to (i) unfunded Investor Default Amounts pursuant to Section 4.05 or (ii) Reallocated Principal Collections pursuant to Section 4.06. The amount of the Available Subordinated Amount so reallocated on any Distribution Date will reduce the Available Subordinated Amount by the amount so reallocated.

 

(c)                      Notwithstanding any other provision herein, the Transferor[s] may elect to increase the Available Subordinated Amount; provided that
the cumulative amount of such increases pursuant to this Section 4.09(c) does not exceed __% of the Initial Note Principal Balance.

 

Section 4.10.                      Principal Funding Account.

 

(a)                      The Indenture Trustee, for the benefit of the Series __ Noteholders, will establish and maintain with the Indenture Trustee in the name
of the Indenture Trustee, on behalf of the Issuer, a Qualified Account (including any subaccounts thereof) bearing a designation clearly indicating that the funds and other property credited thereto are held for the benefit of the Series __ Noteholders (the "Principal Funding Account"). The Principal Funding Account will consist of two segregated subaccounts: (i) the "Principal
Funding Account Securities Subaccount" to which financial assets (other than cash and money) credited to the Principal Funding Account will be credited and (ii) the "Principal Funding Account Cash Deposit Subaccount" to which cash and money deposited in the Principal Funding Account will be

 

  

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credited. The Indenture Trustee will possess all right, title and interest in all Eligible Investments and all monies, cash, instruments, securities, securities entitlements, documents, certificates of deposit and other property from time to time on deposit in or credited to the Principal Funding Account and in all interest, proceeds,
earnings, income, revenue, dividends and other distributions thereof (including any accrued discount realized on liquidation of any investment purchased at a discount) for the benefit of the Series __ Noteholders. Except as expressly provided in this Indenture Supplement and the Transfer and Servicing Agreement[s], the Servicer agrees that it has no right of setoff or banker's lien against, and no right to otherwise deduct from, any funds and other property held in the Principal Funding Account for any amount
owed to it by the Indenture Trustee, the Issuer or any Noteholder. If, at any time, (x) the Principal Funding Account ceases to be a Qualified Account or (y) the Indenture Trustee no longer maintains the Principal Funding Account, then within ten Business Days (or such longer period which satisfies the Rating Agency Condition), the Issuer (or the Servicer on its behalf) will establish a new Principal Funding Account meeting the conditions specified above, transfer any monies, instruments, securities, security
entitlements, documents, certificates of deposit and other property to such new Principal Funding Account and from the date such new Principal Funding Account is established, it will be the "Principal Funding Account." Any Eligible Institution at which the successor Principal Funding Account is established shall deliver a written acceptance of its appointment and shall agree to be bound by the provisions in the Indenture relating to the Securities Intermediary and the Bank as they relate to the Principal Funding
Account. The Indenture Trustee, at the written direction of the Servicer, will (i) make withdrawals from the Principal Funding Account from time to time, in the amounts and for the purposes set forth in this Indenture Supplement and (ii) on each Distribution Date (from and after the commencement of the Controlled Accumulation Period) before the earlier of payment in full of the Series __ Notes and the Series __ Final Maturity Date, make deposits into the Principal Funding Account in the amounts specified in,
and in accordance with, Section 4.04(d)(i).

 

(b)                      Funds on deposit in the Principal Funding Account will, at the written direction of the Servicer, be invested by the Indenture Trustee
(including the Securities Intermediary) in Eligible Investments selected by the Servicer. All such Eligible Investments will be held by the Indenture Trustee or its nominee for the benefit of the Noteholders. The Indenture Trustee will cause each Eligible Investment to be delivered to it (including a securities intermediary) and will be credited to the Principal Funding Account Securities Subaccount. Funds on deposit in the Principal Funding Account will be invested in Eligible Investments that will mature so
that such funds will be available no later than the following Distribution Date. On each Distribution Date, all interest and other investment earnings (net of losses and investment expenses) on funds on deposit in the Principal Funding Account will be treated as Available Investor Interest Collections with respect to the last day of the related Collection Period. The Indenture Trustee will bear no responsibility or liability for any losses resulting from investment or reinvestment of any funds in accordance with
this Section 4.10(b) nor for the selection of Eligible Investments in accordance with the provisions of this Indenture Supplement, the Indenture or the Transfer and Servicing Agreement[s].

 

  

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Section 4.11.                      [Reserve Fund].

 

(a)           [The Indenture Trustee, for the benefit of the Series __ Noteholders, will establish and maintain with the Indenture Trustee or its nominee in the name of the Indenture Trustee, on behalf of the Issuer,
a Qualified Account (including any subaccounts thereof) bearing a designation clearly indicating that the funds and other property credited thereto are held for the benefit of the Series __ Noteholders (the "Reserve Fund").  The Reserve Fund will consist of two segregated subaccounts: (i) the "Reserve Fund Securities Subaccount" to which financial assets
(other than cash and money) credited to the Reserve Fund will be credited and (ii) the "Reserve Fund Cash Deposit Subaccount" to which cash and money deposited in the Reserve Fund will be credited.  The Indenture Trustee will possess all right, title and interest in all Eligible Investments and all monies, cash, instruments, securities, securities entitlements, documents, certificates of deposit and other property from time
to time on deposit in or credited to the Reserve Fund and in all interest, proceeds, earnings, income, revenue, dividends and other distributions thereof (including any accrued discount realized on liquidation of any investment purchased at a discount) for the benefit of the Series __ Noteholders. Except as expressly provided in this Indenture Supplement and the Transfer and Servicing Agreement[s], the Servicer agrees that it has no right of setoff or banker's lien against, and no right to otherwise deduct from,
any funds and other property held in the Reserve Fund for any amount owed to it by the Indenture Trustee, the Issuer or any Noteholder.  If, at any time, (x) the Reserve Fund ceases to be a Qualified Account or (y) the Indenture Trustee no longer maintains the Reserve Fund, then within ten Business Days (or such longer period which satisfies the Rating Agency Condition), the Issuer (or the Servicer on its behalf) will establish a new Reserve Fund meeting the conditions specified above, transfer any
monies, instruments, securities, security entitlements, documents, certificates of deposit and other property to such new Reserve Fund and from the date such new Reserve Fund is established, it will be the "Reserve Fund."  Any Eligible Institution at which the successor Reserve Fund is established will deliver a written acceptance of its appointment and will agree to be bound by the provisions in the Indenture relating to the Securities Intermediary and the Bank as they relate to the Reserve Fund.  The
Indenture Trustee, at the written direction of the Servicer, will make deposits to and withdrawals from the Reserve Fund from time to time, in the amounts and for the purposes set forth in this Indenture Supplement.

 

(b)           Funds on deposit in the Reserve Fund will, at the written direction of the Servicer, be invested by the Indenture Trustee or its nominee (including the Securities Intermediary) in Eligible Investments
selected by the Servicer.  All such Eligible Investments will be held by the Indenture Trustee or its nominee for the benefit of the Series __ Noteholders.  The Indenture Trustee will cause each Eligible Investment to be delivered to it or its nominee (including a securities intermediary) and will be credited to the Reserve Fund Securities Subaccount.  Funds on deposit in the Reserve Fund will be invested in Eligible Investments that will mature so that such funds will be available
no later than the following Distribution Date.  On each Distribution Date, all interest and other investment earnings (net of losses and investment expenses) on funds on deposit in the Reserve Fund will be treated as Available Investor Interest Collections for such

 

  

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Distribution Date.  The Indenture Trustee will bear no responsibility or liability for any losses resulting from investment or reinvestment of any funds in accordance with this Section 4.11(b) nor for the selection of Eligible Investments in accordance with the provisions of this Indenture Supplement, the Indenture or the Transfer
and Servicing Agreement[s].

 

(c)           The Reserve Fund will be funded by the Transferor[s] on the Closing Date in the amount of the Reserve Fund Initial Amount, and will be increased and decreased thereafter as described herein.

 

(d)           If on any Distribution Date, after giving effect to all withdrawals from and deposits to the Reserve Fund, the amount on deposit in the Reserve Fund (excluding amounts relating to investment earnings)
exceeds the Reserve Fund Required Amount then in effect, the Indenture Trustee will, at the written direction of the Servicer, distribute such excess to the Transferor Interest Account for distribution to the holders of the Transferor Interest in accordance with the Trust Agreement.

 

(e)           Upon the earlier to occur of the date on which the Series __ Notes are paid in full and the Series Final Maturity Date, any funds remaining in the Reserve Fund, after giving effect to any deposits and
withdrawals made therefrom on such date, will be treated as Available Investor Principal Collections.  The Reserve Fund will thereafter be deemed to have terminated for purposes of this Indenture Supplement.]

 

Section 4.12.                      Determination of LIBOR.

 

(a)                      On each LIBOR Determination Date, the Indenture Trustee will determine LIBOR on the basis of the rate for deposits in United States dollars
for a one-month period which appears on Reuters Screen LIBOR01 Page as of 11:00 a.m., London time, on such date. If such rate does not appear on Reuters Screen LIBOR01 Page, the rate for that LIBOR Determination Date will be determined on the basis of the rates at which deposits in United States dollars are offered by the Reference Banks at approximately 11:00 a.m., London time, on that day to prime banks in the London interbank market for a one-month period. The Indenture Trustee will request the principal London
office of each of the Reference Banks to provide a quotation of its rate. If at least two such quotations are provided, the rate for that LIBOR Determination Date will be the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that LIBOR Determination Date will be the arithmetic mean of the rates quoted by major banks in New York City, selected by the Servicer, at approximately 11:00 a.m. (New York City time) on that day for loans in United States dollars to
leading European banks for a one-month period.

 

(b)                      On each LIBOR Determination Date, the Indenture Trustee will send to the Servicer, the Issuer and the Administrator by facsimile transmission,
notification of LIBOR for the following Interest Period.

 

  

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(c)                      The Servicer will provide on the Distribution Date Statement the Class A Note Interest Rate and the Class B Note Interest Rate applicable
to each Distribution Date.  On each Distribution Date, the Class A Note Interest Rate and the Class B Note Interest Rate applicable to the then current and the immediately preceding Interest Periods may be obtained by the Series __ Noteholders through the Indenture Trustee's internet website, which initially is located at http://www.___________.

 

(d)           Other than the determination of LIBOR as provided for herein, all other determinations and calculations provided for in this Indenture Supplement shall be made by the Servicer.

 

Section 4.13.                      Accumulation Period Reserve Account.

 

(a)                      The Indenture Trustee, for the benefit of the Series __ Noteholders, will establish and maintain with the Indenture Trustee or its nominee
in the name of the Indenture Trustee, on behalf of the Issuer, a Qualified Account (including any subaccounts thereof) bearing a designation clearly indicating that the funds and other property credited thereto are held for the benefit of the Series __ Noteholders (the "Accumulation Period Reserve Account"). The Accumulation Period Reserve Account will consist of two segregated subaccounts: (i) the "Accumulation
Period Reserve Account Securities Subaccount" to which financial assets (other than cash and money) credited to the Accumulation Period Reserve Account will be credited and (ii) the "Accumulation Period Reserve Account Cash Deposit Subaccount" to which cash and money deposited in the Accumulation Period Reserve Account will be credited. The Indenture Trustee will possess all right, title and interest in all Eligible Investments
and all monies, cash, instruments, securities, securities entitlements, documents, certificates of deposit and other property from time to time on deposit in or credited to the Accumulation Period Reserve Account and in all interest, proceeds, earnings, income, revenue, dividends and other distributions thereof (including any accrued discount realized on liquidation of any investment purchased at a discount) for the benefit of the Series __ Noteholders. Except as expressly provided in this Indenture Supplement
and the Transfer and Servicing Agreement[s], the Servicer agrees that it has no right of setoff or banker's lien against, and no right to otherwise deduct from, any funds and other property held in the Accumulation Period Reserve Account for any amount owed to it by the Indenture Trustee, the Issuer or any Noteholder. If, at any time, (x) the Accumulation Period Reserve Account ceases to be a Qualified Account or (y) the Indenture Trustee no longer maintains the Accumulation Period Reserve Account,
then within ten Business Days (or such longer period which satisfies the Rating Agency Condition), the Issuer (or the Servicer on its behalf) will establish a new Accumulation Period Reserve Account meeting the conditions specified above, transfer any monies, instruments, securities, security entitlements, documents, certificates of deposit and other property to such new Accumulation Period Reserve Account and from the date such new Accumulation Period Reserve Account is established, it will be the "Accumulation
Period Reserve Account." Any Eligible Institution at which the successor Accumulation Period Reserve Account is established shall deliver a written acceptance of its appointment and shall agree to be bound by the provisions in the Indenture

 

  

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relating to the Securities Intermediary and the Bank as they relate to the Accumulation Period Reserve Account. The Indenture Trustee, at the direction of the Servicer, will (i) make withdrawals from the Accumulation Period Reserve Account from time to time, in the amounts and for the purposes set forth in this Indenture Supplement, and
(ii) on each Distribution Date beginning on the Accumulation Period Reserve Account Funding Date and before the termination of the Accumulation Period Reserve Account as provided below, make deposits into the Accumulation Period Reserve Account in the amount of the Accumulation Period Reserve Account Deposit Amount for such Distribution Date from: (1) Available Investor Interest Collections for such Distribution Date as applied in accordance with Section 4.04(a)(ix) and (2) Excess Interest Collections available
from other outstanding Series in Excess Interest Sharing Group One for such Distribution Date as applied in accordance with Section 4.04(b)(i).

 

(b)                      Funds on deposit in the Accumulation Period Reserve Account will, at the written direction of the Servicer, be invested by the Indenture
Trustee (including the Securities Intermediary) in Eligible Investments selected by the Servicer. All such Eligible Investments will be held by the Indenture Trustee or its nominee for the benefit of the Noteholders. The Indenture Trustee will cause each Eligible Investment to be delivered to it (including a securities intermediary) and will be credited to the Accumulation Period Reserve Account Securities Subaccount. Funds on deposit in the Accumulation Period Reserve Account will be invested in Eligible Investments
that will mature so that such funds will be available no later than the following Distribution Date. On each Distribution Date, all interest and other investment earnings (net of losses and investment expenses) on funds on deposit in the Accumulation Period Reserve Account will be treated as Available Investor Interest Collections with respect to the last day of the related Collection Period. The Indenture Trustee will bear no responsibility or liability for any losses resulting from investment or reinvestment
of any funds in accordance with this Section 4.13(b) nor for the selection of Eligible Investments in accordance with the provisions of this Indenture Supplement, the Indenture or the Transfer and Servicing Agreement[s].

 

(c)                      On or before each Distribution Date with respect to the Controlled Accumulation Period and on or before the first Distribution Date with
respect to the Early Amortization Period beginning after the commencement of the Controlled Accumulation Period, the Servicer will calculate the Accumulation Period Reserve Draw Amount; provided, however, that such amount will be reduced to the extent that funds otherwise would be available for deposit into the Accumulation Period Reserve Account pursuant to Sections 4.04(a)(ix) and 4.04(b)(i) on such Distribution Date. If for any Distribution Date, the
Accumulation Period Reserve Draw Amount is greater than zero, the Accumulation Period Reserve Draw Amount, up to the Accumulation Period Reserve Account Available Amount, will be withdrawn from the Accumulation Period Reserve Account on such Distribution Date by the Indenture Trustee (acting in accordance with the written instructions of the Servicer) and deposited into the Collection Account for application as Available Investor Interest Collections.

 

(d)                      If on any Distribution Date, after giving effect to all withdrawals from and deposits to the Accumulation Period Reserve Account, the amount
on deposit in the

 

  

36

  

Accumulation Period Reserve Account exceeds the Accumulation Period Reserve Account Required Amount then in effect, the Indenture Trustee will, at the written direction of the Servicer, distribute such excess to the Transferor Interest Account for distribution to the holders of the Transferor Interest in accordance with the Trust Agreement.

 

(e)                      Upon the earliest to occur of (i) the payment in full of the Series __ Notes, (ii) the first Distribution Date relating to the Early Amortization
Period and (iii) the Series __ Final Maturity Date, any funds remaining in the Accumulation Period Reserve Account, after withdrawal of funds therefrom on such date in accordance with Section 4.13(c), will be treated as Available Investor Interest Collections. The Accumulation Period Reserve Account will thereafter be deemed to have terminated for purposes of this Indenture Supplement.

 

Section 4.14.                      Investment Instructions.

 

Any investment instructions required to be given to the Indenture Trustee pursuant to the terms hereof must be given to the Indenture Trustee by no later than 10:00 a.m. (New York City time) on the date such investment is to be made. Any such investment instructions may be in the form of standing instructions given to the Indenture Trustee
by the Servicer. If the Indenture Trustee receives such investment instructions later than such time, the Indenture Trustee may, but is not obligated to, make such investment. If the Indenture Trustee is unable to make an investment required in any investment instructions received by the Indenture Trustee after 10:00 a.m. (New York City time) on such day, such investment will be made by the Indenture Trustee on the next succeeding Business Day. In no event will the Indenture Trustee be liable for any investment
not made pursuant to investment instructions received after 10:00 a.m. (New York City time) on the day such investment is requested to be made.

 

 

ARTICLE V

 

Delivery of Series __ Notes;

Distributions; Reports to Series __ Noteholders

 

Section 5.01.                      Delivery and Payment for Series __ Notes.

 

The Indenture Trustee will authenticate the Series __ Notes in accordance with Section 2.03 of the Indenture. The Indenture Trustee will deliver the Series __ Notes to or upon the order of the Issuer when so authenticated.

 

Section 5.02.                      Distributions.

 

(a)                      On each Distribution Date, the Paying Agent will distribute to each Class A Noteholder of record on the related Record Date (other than
as provided in Section 11.02 of the Indenture) such Class A Noteholder's pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay interest on the Class A Notes

 

  

37

  

(based solely on the information contained in the Distribution Date Statement) pursuant to this Indenture Supplement.

 

(b)                      On each Distribution Date, the Paying Agent will distribute to each Class A Noteholder of record on the related Record Date (other than
as provided in Section 11.02 of the Indenture) such Class A Noteholder's pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay principal of the Class A Notes (based solely on the information contained in the Distribution Date Statement) pursuant to this Indenture Supplement.

 

(c)                      On each Distribution Date, the Paying Agent will distribute to each Class B Noteholder of record on the related Record Date (other than
as provided in Section 11.02 of the Indenture) such Class B Noteholder's pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay interest on the Class B Notes (based solely on the information contained in the Distribution Date Statement) pursuant to this Indenture Supplement.

 

(d)                      On each Distribution Date, the Paying Agent will distribute to each Class B Noteholder of record on the related Record Date (other than
as provided in Section 11.02 of the Indenture) such Class B Noteholder's pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay principal of the Class B Notes (based solely on the information contained in the Distribution Date Statement) pursuant to this Indenture Supplement.

 

(e)                      The distributions to be made pursuant to this Section are subject to the provisions of Sections 2.03(c) and 6.01 of the Transfer and Servicing
Agreement[s], Section 11.02 of the Indenture and Section 7.01 of this Indenture Supplement.

 

(f)                      Except as provided in Section 11.02 of the Indenture with respect to a final distribution, distributions to Series __ Noteholders hereunder
will be made by (i) check mailed to each Series __ Noteholder (at such Noteholder's address as it appears in the Note Register), except that with respect to any Series __ Notes registered in the name of the nominee of the Clearing Agency, such distribution will be made in immediately available funds and (ii) without presentation or surrender of any Series __ Note or the making of any notation thereon.

 

(g)                      The Indenture Trustee will have no duty to make any deposits or distributions or any other payments under this Indenture Supplement unless
and until it has sufficient cash to make such payments and it has received written instructions from the Servicer as to such deposits, distributions and payments.

 

Section 5.03.                      Reports and Statements to Series __ Noteholders.

 

(a)                      On each Distribution Date, the Paying Agent, on behalf of the Indenture Trustee, will mail or deliver to each Series __ Noteholder a statement
(a "Distribution Date

 

  

38

  

Statement") substantially in the form of Exhibit B prepared by the Servicer; provided, however, that, in lieu of the Paying Agent's mailing or delivering such statement, the Indenture Trustee may make such
statement available to the Series __ Noteholders through the Indenture Trustee's internet website, which initially is located at http://www.___________.

 

(b)                      No later than the second Business Day preceding each Distribution Date, the Servicer will mail or deliver to the Owner Trustee, the Indenture
Trustee, the Paying Agent and each Rating Agency (i) a statement substantially in the form of Exhibit B prepared by the Servicer and (ii) a certificate of an Authorized Officer of the Servicer substantially in the form of Exhibit C; provided that the Servicer may amend the form of Exhibit B and Exhibit C from time to time.

 

(c)                      A copy of each statement or certificate provided pursuant to Section 5.03(a) or (b) may be obtained by any Series __ Noteholder by a request
in writing to the Servicer.

 

(d)                      If required by law, on or before January 31 of each calendar year, beginning with calendar year 20__, the Paying Agent, on behalf of the
Indenture Trustee, will furnish or cause to be furnished to each Person who at any time during the preceding calendar year was a Series __ Noteholder, a statement prepared by the Servicer containing the information that is required to be contained in the statements to the Series __ Noteholders, as set forth in Section 5.03(a), aggregated for the preceding calendar year, together with other information as is required to be provided by an issuer of indebtedness under the Code; provided,
however, that, in lieu of the Paying Agent's mailing or delivering such statement, the Indenture Trustee may make such statement available to the Series __ Noteholders through the Indenture Trustee's internet website, which initially is located at http://www.__________.  Such obligation of the Servicer will be deemed to have been satisfied to the extent that substantially comparable information is provided by the Paying Agent pursuant to
any requirements of the Code as from time to time in effect.

 

 

ARTICLE VI

 

Series __ Amortization Events

 

Section 6.01.                      Series __ Amortization Events.

 

If any one of the following events occurs with respect to the Series __ Notes:

 

(i)           failure by [the]/[either] Transferor (a) to make any payment or deposit required by the terms of the related Transfer and Servicing Agreement, the Indenture or this Indenture Supplement on or before the
date occurring five Business Days after the date such payment or deposit is required to be made therein or herein or (b) to observe or perform in any material respect any other covenants or agreements of [the]/[such] Transferor set forth in the [related] Transfer and Servicing Agreement, the Indenture or

 

  

39

  

 

                this Indenture Supplement that has an Adverse Effect on the Series __ Noteholders and continues unremedied for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied,

                has been given to [the]/[such] Transferor by the Indenture Trustee, or to [the]/[such] Transferor and the Indenture Trustee by any Holder of the Series __ Notes, and, in either case, continues to affect materially and

                adversely the interests of the Series __ Noteholders for the designated period;

 

(ii)           any representation or warranty made by [the]/[either] Transferor in the [related] Transfer and Servicing Agreement, the Indenture or this Indenture Supplement, or any information contained in a computer
file or other list required to be delivered by [the]/[such] Transferor pursuant to the [related] Transfer and Servicing Agreement proves to have been incorrect in any material respect when made or when delivered, which continues to be incorrect in any material respect for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, has been given to [the]/[such] Transferor by the Indenture Trustee, or to [the]/[such] Transferor and the Indenture Trustee by any
Holder of the Series __ Notes and as a result of which the interests of the Series __ Noteholders are materially and adversely affected and continue to be affected materially and adversely for the designated period; provided, however, that a Series __ Amortization Event pursuant to this clause (ii) will not be deemed to have occurred hereunder if [the]/[such] Transferor has accepted reassignment of the related Receivable, or all of such Receivables, if
applicable, during such period in accordance with the provisions of the related Transfer and Servicing Agreement;

 

(iii)           any Servicer Default occurs that has an Adverse Effect on the Series __ Noteholders;

 

(iv)           the Note Principal Balance is not paid in full on the Expected Final Payment Date;

 

(v)           the average of the Monthly Principal Payment Rates for the three preceding Collection Periods is less than __%;

 

(vi)           on any Determination Date, the Available Subordinated Amount for the next succeeding Distribution Date is less than the Required Subordinated Amount after giving effect to any distributions to be made
on such Distribution Date, and continues unremedied for a period of five Business Days after such Distribution Date; [provided that, for the purpose of determining whether a Series __ Amortization Event has occurred pursuant to this clause (vi), any reduction of the Available Subordinated Amount resulting from reallocations of the Available Transferor Collections to pay interest on the Series __ Notes in the event LIBOR is equal to or greater than the prime
rate upon which interest on the receivables is calculated on the applicable LIBOR Determination Date will be considered a Series __ Amortization Event only if LIBOR remains equal to or greater

 

  

40

  

 

                than such prime rate for the next 30 consecutive days following such LIBOR Determination Date;]

 

(vii)           the amounts on deposit in the Excess Funding Account exceed __% of the sum of the adjusted invested amounts of all outstanding Series (including Series __) for three consecutive Collection Periods,
after giving effect to any distributions to be made on each related Distribution Date; or

 

(viii)           the occurrence of an Event of Default with respect to Series __ and an acceleration of the maturity of the Series __ Notes pursuant to Section 5.03 of the Indenture.

 

then, in the case of any event described in clauses (i) through (iii) above, after any applicable grace period, either the Indenture Trustee or the Holders of at least a majority of the Outstanding Amount of Series __ Notes by notice then given in writing to the Transferor[s] and the Servicer (and to the Indenture Trustee if given by the
Series __ Noteholders) may declare that an amortization event with respect to the Series __ Notes (a "Series __ Amortization Event") has occurred as of the date of such notice, and, in the case of any event described in clauses (iv) through (viii) above, a Series __ Amortization Event, will occur without any notice or other action on the part of the Indenture Trustee or the Series __ Noteholders immediately upon the occurrence of the
event.

 

 

ARTICLE VII

 

Redemption of Series __ Notes; Series Final Maturity; Final Distributions

 

Section 7.01.                      Optional Redemption of Series __ Notes.

 

(a)                      On any day occurring on or after the date on which the Note Principal Balance is reduced to __% or less of the Initial Note Principal Balance,
the Transferor[s] holding an aggregate Percentage Interest of at least __% will have the option to purchase the Series __ Noteholders' Collateral and thereby cause a redemption of the Series __ Notes, at a purchase price equal to (i) if such day is a Distribution Date, the Reassignment Amount for such Distribution Date or (ii) if such day is not a Distribution Date, the Reassignment Amount for the Distribution Date following such day.

 

(b)                      Upon any such election, the Transferor[s] will give the Servicer, the Indenture Trustee, the Issuer and, if applicable, other holders of
the Transferor Interest at least 30 days prior written notice of the date on which the Transferor[s] intend[s] to exercise such optional redemption as well as the Reassignment Amount and the Indenture Trustee shall provide notice to Holders of the Series __ Notes that it has received such notice from the Transferor[s].  No later than 11:00 a.m. (New York City time) on such day the Transferor[s] will deposit the Reassignment Amount into the Collection Account in immediately available funds. Such redemption
option is subject to payment in full of the Reassignment Amount. Following

 

  

41

  

such deposit into the Collection Amount in accordance with the foregoing, the Invested Amount of the Series __ Notes will be deemed reduced to zero and the Series __ Noteholders will be deemed to have no further interest in the Receivables or, if applicable, Interests in Other Floorplan Assets.  The Reassignment Amount will be
distributed as set forth in Section 7.02.

 

Section 7.02.                      Series Final Maturity.

 

(a)                      The amount to be paid by the Transferor[s] with respect to Series __ in connection with a reassignment of the Noteholders' Collateral pursuant
to Section 2.03(c) or 6.01 of the Transfer and Servicing Agreement[s] will be the Reassignment Amount for the first Distribution Date following the Collection Period in which the reassignment obligation arises under the Transfer and Servicing Agreement[s]. With respect to the Reassignment Amount deposited into the Collection Account pursuant to Section 2.03(c) or 6.01 of the Transfer and Servicing Agreement[s] or pursuant to Section 7.01 of this Indenture Supplement or the proceeds from any Foreclosure Remedy
pursuant to Section 5.05 of the Indenture, the Indenture Trustee will, in accordance with the written direction of the Servicer, no later than 11:00 a.m. (New York City time) on the related Distribution Date, make deposits or distributions of the following amounts (in the priority set forth below and, in each case after giving effect to any deposits and distributions otherwise to be made on such date) in immediately available funds:

 

(i)           (A) the Class A Note Principal Balance on such Distribution Date will be distributed to the Paying Agent for payment to the Class A Noteholders and (B) an amount equal to the sum of (1) the Class A Monthly
Interest for such Distribution Date, (2) any Class A Monthly Interest previously due but not paid to the Class A Noteholders on prior Distribution Dates and (3) any Class A Additional Interest for such Distribution Date, will be distributed to the Paying Agent for payment to the Class A Noteholders on such Distribution Date; and

 

(ii)           (A) the Class B Note Principal Balance on such Distribution Date will be distributed to the Paying Agent for payment to the Class B Noteholders and (B) an amount equal to the sum of (1) the Class B Monthly
Interest for such Distribution Date, (2) any Class B Monthly Interest previously due but not paid to the Class B Noteholders on prior Distribution Dates and (3) any Class B Additional Interest for such Distribution Date, will be distributed to the Paying Agent for payment to the Class B Noteholders on such Distribution Date.

 

(b)                      Notwithstanding anything to the contrary in this Indenture Supplement, the Indenture or the Transfer and Servicing Agreement[s], (i) all
amounts distributed to the Paying Agent pursuant to Section 7.02(a) for payment to the Series __ Noteholders will be deemed distributed in full to the Series __ Noteholders on the date on which such funds are distributed to the Paying Agent pursuant to this Section and will be deemed to be a final distribution pursuant to Section 11.02 of the Indenture and (ii) in the event that the amounts available for final distribution to the Series __ Noteholders and to the Noteholders of any other Series on any Distribution
Date are less than the full amount required to be so distributed, the

 

  

42

  

available amounts will be allocated to each Series based on the respective amounts required to be distributed to each such Series (including Series __) on such Distribution Date.

 

 

ARTICLE VIII

 

Miscellaneous Provisions

 

Section 8.01.                      [Execution and Delivery of Interest Rate Swap.]

 

[On the Closing Date, the Issuer will execute and deliver the Interest Rate Swap with [__________].  On the Closing Date, the Transferor[s] will contribute the amount of the Initial Exchange Amount (as defined in such Interest Rate Swap) to the Issuer by paying such amount to [__________] on behalf of the Issuer.  On
each Additional Exchange Date (as defined in such Interest Rate Swap), the Transferor[s] will contribute the amount of the applicable Additional Exchange Amount (as defined in such Interest Rate Swap) to the Issuer by paying such amount to [__________] on behalf of the Issuer.]

 

Section 8.02.                      Ratification of Agreement.

 

As supplemented by this Indenture Supplement, the Indenture is in all respects ratified and confirmed and the Indenture as so supplemented by this Indenture Supplement is to be read, taken and construed as one and the same instrument.

 

Section 8.03.                      Form of Delivery of Series __ Notes.

 

The Series __ Notes will be delivered as Registered Notes as provided in Section 2.01 of the Indenture.

 

Section 8.04.                      Counterparts.

 

This Indenture Supplement may be executed in two or more counterparts, and by different parties on separate counterparts, each of which will be an original, but all of which will constitute one and the same instrument.

 

Section 8.05.                      Governing Law.

 

This Indenture Supplement and each Series __ Note are to be construed in accordance with and governed by the laws of the State of New York without regard to its conflicts of laws principles.

 

Section 8.06.                      Effect of Headings and Table of Contents.

 

The Article and Section headings herein and the Table of Contents are for convenience only and are not intended to affect the construction hereof.

 

[Remainder of Page Intentionally Left Blank]

 

  

43

  

In Witness Whereof, the Issuer and the Indenture Trustee have caused this Indenture Supplement to be duly executed by their respective duly authorized officers, all as of the day and year first above written.

 

	 	
Ford Credit Floorplan Master Owner Trust __, as Issuer

 

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

 

	 	
By: 
	  
	 	  	
Name:

	 	  	
Title:

 

 

	 	
[Indenture Trustee], not in its individual capacity, but solely as Indenture Trustee, Securities Intermediary and Bank

 

	 	
By: 
	  
	 	  	
Name:

	 	  	
Title:

  

44

  

Exhibit A-1

 

Form of Class A Note

 

Unless this Note is presented by an authorized representative of the Depository Trust Company, a New York corporation ("DTC"), to the Issuer or its agent for registration of transfer, exchange or payment, and any Note issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative
of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC) any transfer, pledge or other use hereof for value or otherwise by or to any person is wrongful inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

The holder of this Class A Note, by its acceptance hereof, and the owner of a beneficial interest in this Class A Note, by its acceptance of such beneficial interest, covenant and agree that (a) they will not at any time institute against the Issuer or the Transferor[s], or join in instituting against the Issuer or the Transferor[s], any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture, the Indenture Supplement or any of the other related transaction documents and (b) if [the]/[any] Transferor becomes a debtor or debtor in possession in a case under any applicable United States federal or state bankruptcy, insolvency or other similar law now or hereafter
in effect or otherwise subject to any insolvency, reorganization, liquidation, rehabilitation or other similar proceedings, any claim that the holders of the Notes of any Series may have at any time against the Issuer's assets allocated in accordance with the Indenture to any Series unrelated to such Notes, and any claim that the holders of such Notes have at any time against the Transferor[s] that they may seek to enforce against such Issuer's assets allocated to any unrelated Series, will be subordinate to
the payment in full (including post-petition interest) of the claims of the holders of any Notes of such unrelated Series and of the holders of any other notes, bonds, contracts or other obligations relating to such unrelated Series.

 

The holder of this Class A Note, by acceptance of this Class A Note, and each holder of a beneficial interest therein, agree to treat the Class A Notes as indebtedness of the Issuer for applicable United States federal, state and local income and franchise tax purposes.

 

Any holder of this Class A Note, by its acceptance of this Class A Note, will be deemed to have represented that either (a) it is not, and is not acting on behalf of or investing the assets of, an employee benefit plan or retirement arrangement that is subject to the fiduciary responsibility provisions of the Employee Retirement Income
Security Act of 1974, as amended, or Section 4975 of the Internal Revenue Code of 1986, as

 

  

A-1-1

  

amended, or (b) its acquisition and continued holding of this Class A Note will be covered by a Department of Labor Prohibited Transaction Class Exemption.

 

 

  

A-1-2

  

 

	Registered  	
$______________1

	No. R-__	CUSIP No. ________ 
	 	ISIN No. ________ 
	 	Common Code ________

 

 

Ford Credit Floorplan Master Owner Trust __

 

Series __ Floating Rate Asset Backed Notes, Class A

 

Ford Credit Floorplan Master Owner Trust __ (herein referred to as the "Issuer"), a Delaware statutory trust governed by the Amended and Restated Trust Agreement, dated as of _______, 20__, for value received, hereby promises to pay to ___________________________,
or registered assigns, subject to the following provisions, the principal sum of ________________________________ ______________ Dollars, or such greater or lesser amount as determined in accordance with the Indenture and the Indenture Supplement (each referred to herein), on the ______ 20__ Distribution Date (the "Series __ Final Maturity Date"), except as otherwise provided
below or in the Indenture or the Indenture Supplement. Beginning on _______, 20__ and on each Distribution Date thereafter until the principal amount of this Class A Note is paid in full, the Issuer will pay interest on the unpaid principal amount of this Class A Note at an annual rate equal to the sum of LIBOR and __% (the "Class A Note Interest Rate"), as determined pursuant to the Indenture Supplement. Interest on this Class A Note
will begin accruing from _______, 20__ (the "Closing Date") and will be payable in arrears on each Distribution Date, computed on the basis of a 360-day year and the actual number of days elapsed. The principal of this Class A Note will be paid in the manner specified on the reverse hereof.

 

The principal of and interest on this Class A Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

Reference is made to the further provisions of this Class A Note set forth on the reverse hereof, which will have the same effect as though fully set forth on the face of this Class A Note.

 

Unless the certificate of authentication hereon has been executed by or on behalf of the Indenture Trustee, by manual signature, this Class A Note will not be entitled to any benefit under the Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any purpose.

 

 

	
1
	
Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

 

  

A-1-3

  

In Witness Whereof, the Issuer has caused this Class A Note to be duly executed.

 

	 	
Ford Credit Floorplan Master Owner Trust __, as Issuer

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

	 	
By: 
	  
	 	  	
Name:

	 	  	
Title:

Dated: ________, _____

 

 

Indenture Trustee's Certificate of Authentication

 

This is one of the Class A Notes described in the within-mentioned Indenture.

 

[Indenture Trustee], not in its individual capacity, but solely as Indenture Trustee

 

	 	
By:
	  
	 	  	
Authorized Officer

  

A-1-4

  

Ford Credit Floorplan Master Owner Trust __

 

Series __ Floating Rate Asset Backed Notes, Class A

 

Summary of Terms and Conditions

 

This Class A Note is one of a duly authorized issue of Notes of the Issuer, designated as the Series __ Floating Rate Asset Backed Notes (the "Notes"), issued under the Indenture, dated as of _______, 20__ (the "Indenture"),
between the Issuer and [Indenture Trustee], as indenture trustee (the "Indenture Trustee"), as supplemented by the Series __ Indenture Supplement, dated as of ______, 20__ (the "Indenture Supplement" and, together with the Indenture, the "Series Agreement"), and representing the right
to receive certain payments from the Issuer. The Notes are subject to all of the terms of the Series Agreement. All terms used in this Class A Note that are defined in the Series Agreement have the meanings assigned to them in or pursuant to the Series Agreement. In the event of any conflict or inconsistency between the Series Agreement and this Class A Note, the Series Agreement controls.

 

The Class B Notes, in an initial aggregate principal amount of $_________, will also be issued under the Series Agreement. The rights of the holders of the Class B Notes to receive payments on the Class B Notes are subordinate to the rights of the holders of the Class
A Notes to receive payments as specified in the Series Agreement.

 

The Noteholder, by its acceptance of this Class A Note, agrees that it will look solely to the property of the Issuer allocated to the payment of the Notes for payment hereunder and under the Series Agreement and that the Indenture Trustee is not liable to the Noteholders for any amount payable under the Notes or the Series Agreement or,
except as expressly provided in the Series Agreement, subject to any liability under the Series Agreement.

 

This Class A Note does not purport to summarize the Series Agreement and reference is made to the Series Agreement for the interests, rights and limitations of rights, benefits, obligations and duties evidenced thereby, and the rights, duties and immunities of the Indenture Trustee.

 

The Class A Note Initial Principal Balance is $_________.  The Class A Note Principal Balance on any date of determination will be an amount equal to (a) the Class A Note Initial Principal Balance, minus (b) the aggregate amount of principal payments made to the Class A
Noteholders on or before such date.

 

The Expected Final Payment Date is the _______ 20__ Distribution Date, but principal with respect to the Class A Notes may be paid earlier or later under certain circumstances described in the Series Agreement. If for one or more months during the Controlled Accumulation Period there are not sufficient funds to deposit the Controlled

 

  

A-1-5

  

Deposit Amount into the Principal Funding Account, then to the extent that excess funds are not available on subsequent Distribution Dates with respect to the Controlled Accumulation Period to make up for such shortfalls, the final payment of principal of the Notes will occur later than the Expected Final Payment Date. Payments of principal
of the Notes will be payable in accordance with the provisions of the Series Agreement.

 

Subject to the terms and conditions of the Series Agreement, the Transferor[s] may, from time to time, direct the Owner Trustee, on behalf of the Issuer, to issue one or more new Series of notes.

 

On each Distribution Date, the Paying Agent will distribute to each Class A Noteholder of record on the related Record Date (except for the final distribution in respect of this Class A Note) such Class A Noteholder's pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Distribution Date to pay interest and principal on the Class A Notes pursuant to the Indenture Supplement. Except as provided in the Series Agreement with respect to a final distribution, distributions to the Noteholders will be made by (a) check mailed to each Noteholder (at such Noteholder's address as it appears in the Note Register), except that with respect to any Notes registered in the name of the nominee of the Clearing Agency, such distribution will be made in immediately
available funds and (b) without presentation or surrender of any Note or the making of any notation thereon. Final payment of this Class A Note will be made only upon presentation and surrender of this Class A Note at the office or agency specified in the notice of final distribution delivered by the Indenture Trustee to the Noteholders in accordance with the Series Agreement.

 

On any day occurring on or after the date on which the outstanding principal balance of the Notes is reduced to __% or less of the initial outstanding principal balance of the Notes, the Issuer will have the option to redeem the Notes, at a purchase price equal to (a) if such day is a Distribution Date, the Reassignment Amount for such
Distribution Date or (b) if such day is not a Distribution Date, the Reassignment Amount for the Distribution Date following such day.

 

This Class A Note does not represent an obligation of, or an interest in, the Transferor[s], Ford Motor Credit Company LLC, Ford Motor Company or any Affiliate of any of them and is not insured or guaranteed by any governmental agency or instrumentality.

 

Each Noteholder, by accepting a Note, hereby covenants and agrees that it will not at any time institute against the Issuer or the Transferor[s], or join in instituting against the Issuer or the Transferor[s], any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States
federal or state bankruptcy or similar law.

 

  

A-1-6

  

Except as otherwise provided in the Indenture Supplement, the Class A Notes are issuable only in minimum denominations of $1,000 and integral multiples of $1,000. The transfer of this Class A Note will be registered in the Note Register upon surrender of this Class A Note for registration of transfer at any office or agency maintained
by the Transfer Agent and Registrar accompanied by a written instrument of transfer, in a form satisfactory to the Indenture Trustee or the Transfer Agent and Registrar, duly executed by the Class A Noteholder or such Class A Noteholder's attorney, and duly authorized in writing with such signature guaranteed, and thereupon one or more new Class A Notes in any authorized denominations of like aggregate principal amount will be issued to the designated transferee or transferees.

 

As provided in the Series Agreement and subject to certain limitations therein set forth, Class A Notes are exchangeable for new Class A Notes in any authorized denominations and of like aggregate principal amount, upon surrender of such Notes to be exchanged at the office or agency of the Transfer Agent and Registrar. No service charge
may be imposed for any such exchange but the Issuer or Transfer Agent and Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.

 

The Issuer, the Transferor[s], the Indenture Trustee and any agent of the Issuer, the Transferor[s] or the Indenture Trustee will treat the person in whose name this Class A Note is registered as the owner hereof for all purposes, and none of the Issuer, the Transferor[s], the Indenture Trustee or any agent of the Issuer, the Transferor[s]
or the Indenture Trustee will be affected by notice to the contrary.

 

This Class A Note is to be construed in accordance with the laws of the State of New York, without reference to its conflict of law provisions, and the obligations, rights and remedies of the parties hereunder are to be determined in accordance with such laws.

 

  

A-1-7

  

Assignment

 

Social Security or other identifying number of assignee________________________

 

For Value Received, the undersigned hereby sells, assigns and transfers unto

 

_____________________________________

_____________________________________

_____________________________________

_____________________________________

(name and address of assignee)

 

the within note and all rights thereunder, and hereby irrevocably constitutes and appoints _________________________________________________________, attorney, to transfer said note on the books kept for registration thereof, with full power of substitution in the premises.

 

	
Dated: ___________________
	
___________________________________1

	  	
Signature Guaranteed:

	  	  
	  	  	  

 
1  NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

  

A-1-8

  

Exhibit A-2

 

Form of Class B Note

 

Unless this Note is presented by an authorized representative of the Depository Trust Company, a New York corporation ("DTC"), to the Issuer or its agent for registration of transfer, exchange or payment, and any Note issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative
of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC) any transfer, pledge or other use hereof for value or otherwise by or to any person is wrongful inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

The holder of this Class B Note, by its acceptance hereof, and the owner of a beneficial interest in this Class B Note, by its acceptance of such beneficial interest, covenant and agree that (a) they will not at any time institute against the Issuer or the Transferor[s], or join in instituting against the Issuer or the Transferor[s], any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture, the Indenture Supplement or any of the other related transaction documents and (b) if [the]/[any] Transferor becomes a debtor or debtor in possession in a case under any applicable United States federal or state bankruptcy, insolvency or other similar law now or hereafter
in effect or otherwise subject to any insolvency, reorganization, liquidation, rehabilitation or other similar proceedings, any claim that the holders of the Notes of any Series may have at any time against the Issuer's assets allocated in accordance with the Indenture to any Series unrelated to such Notes, and any claim that the holders of such Notes have at any time against the Transferor[s] that they may seek to enforce against such Issuer's assets allocated to any unrelated Series, will be subordinate to
the payment in full (including post-petition interest) of the claims of the holders of any Notes of such unrelated Series and of the holders of any other notes, bonds, contracts or other obligations relating to such unrelated Series.

 

The holder of this Class B Note, by acceptance of this Class B Note, and each holder of a beneficial interest therein, agree to treat the Class B Notes as indebtedness of the Issuer for applicable United States federal, state and local income and franchise tax purposes.

 

The rights of the holders of the Class B Notes to receive payments on the Class B Notes are subordinate to the rights of the holders of the Class A Notes to receive payments as specified in the Indenture and the Indenture Supplement.

 

  

A-2-1

  

Any holder of this Class B Note, by its acceptance of this Class B Note, will be deemed to have represented that either (a) it is not, and is not acting on behalf of or investing the assets of, an employee benefit plan or retirement arrangement that is subject to the fiduciary responsibility provisions of the Employee Retirement Income
Security Act of 1974, as amended, or Section 4975 of the Internal Revenue Code of 1986, as amended, or (b) its acquisition and continued holding of this Class B Note will be covered by a Department of Labor Prohibited Transaction Class Exemption.

 

 

  

A-2-2

  

	
Registered
	
$______________1

	
No. R-__
	
CUSIP No. ________

	  	
ISIN No. ________

	  	
Common Code ________

 

Ford Credit Floorplan Master Owner Trust __

 

Series __ Floating Rate Asset Backed Notes, Class B

 

Ford Credit Floorplan Master Owner Trust __ (herein referred to as the "Issuer"), a Delaware statutory trust governed by the Amended and Restated Trust Agreement, dated as of _______, 20__, for value received, hereby promises to pay to ___________________________,
or registered assigns, subject to the following provisions, the principal sum of ________________________________ ______________ Dollars, or such greater or lesser amount as determined in accordance with the Indenture and the Indenture Supplement (each referred to herein), on the ______ 20__ Distribution Date (the "Series __ Final Maturity Date"), except as otherwise provided
below or in the Indenture or the Indenture Supplement. Beginning on _______, 20__ and on each Distribution Date thereafter until the principal amount of this Class B Note is paid in full, the Issuer will pay interest on the unpaid principal amount of this Class B Note at an annual rate equal to the sum of LIBOR and __% (the "Class B Note Interest Rate"), as determined pursuant to the Indenture Supplement. Interest on this Class B Note
will begin accruing from _______, 20__ (the "Closing Date") and will be payable in arrears on each Distribution Date, computed on the basis of a 360-day year and the actual number of days elapsed. The principal of this Class B Note will be paid in the manner specified on the reverse hereof.

 

The principal of and interest on this Class B Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

Reference is made to the further provisions of this Class B Note set forth on the reverse hereof, which have the same effect as though fully set forth on the face of this Class B Note.

 

Unless the certificate of authentication hereon has been executed by or on behalf of the Indenture Trustee, by manual signature, this Class B Note will not be entitled to any benefit under the Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any purpose.

 

 
1  Denominations of $1,000 and integral multiples of $1,000 in excess thereof.

  

A-2-3

  

In Witness Whereof, the Issuer has caused this Class B Note to be duly executed.

 

	 	
Ford Credit Floorplan Master Owner Trust __, as Issuer

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

	 	
By:
	  
	 	  	
Name:

	 	  	
Title:

Dated: ________, _____

 

 

Indenture Trustee's Certificate of Authentication

 

This is one of the Class B Notes described in the within-mentioned Indenture.

 

[Indenture Trustee], not in its individual capacity, but solely as Indenture Trustee

 

	 	
By:
	  
	 	  	
Authorized Officer

  

A-2-4

  

Ford Credit Floorplan Master Owner Trust __

 

Series __ Floating Rate Asset Backed Notes, Class B

 

Summary of Terms and Conditions

 

This Class B Note is one of a duly authorized issue of Notes of the Issuer, designated as the Series __ Floating Rate Asset Backed Notes (the "Notes"), issued under the Indenture, dated as of _______, 20__ (the "Indenture"),
between the Issuer and [Indenture Trustee], as indenture trustee (the "Indenture Trustee"), as supplemented by the Series __ Indenture Supplement, dated as of ______, 20__ (the "Indenture Supplement" and, together with the Indenture, the "Series Agreement"), and representing the right
to receive certain payments from the Issuer. The Notes are subject to all of the terms of the Series Agreement. All terms used in this Class B Note that are defined in the Series Agreement have the meanings assigned to them in or pursuant to the Series Agreement. In the event of any conflict or inconsistency between the Series Agreement and this Class B Note, the Series Agreement  controls.

 

The Class A Notes, in an initial aggregate principal amount of $___________, will also be issued under the Series Agreement.

 

The Noteholder, by its acceptance of this Class B Note, agrees that it will look solely to the property of the Issuer allocated to the payment of the Notes for payment hereunder and under the Series Agreement and that the Indenture Trustee is not liable to the Noteholders for any amount payable under the Notes or the Series Agreement or,
except as expressly provided in the Series Agreement, subject to any liability under the Series Agreement.

 

This Class B Note does not purport to summarize the Series Agreement and reference is made to the Series Agreement for the interests, rights and limitations of rights, benefits, obligations and duties evidenced thereby, and the rights, duties and immunities of the Indenture Trustee.

 

The Class B Note Initial Principal Balance is $___________. The Class B Note Principal Balance on any date of determination will be an amount equal to (a) the Class B Note Initial Principal Balance, minus (b) the aggregate amount of principal payments made to the Class B Noteholders
on or before such date.

 

The Expected Final Payment Date is the _______ 20__ Distribution Date, but principal with respect to the Class B Notes may be paid earlier or later under certain circumstances described in the Series Agreement. If for one or more months during the Controlled Accumulation Period there are not sufficient funds to deposit the Controlled Deposit
Amount into the Principal Funding Account, then to the extent that excess funds are not available on subsequent Distribution Dates with respect to the Controlled

 

  

A-2-5

  

Accumulation Period to make up for such shortfalls, the final payment of principal of the Notes will occur later than the Expected Final Payment Date. Payments of principal of the Notes will be payable in accordance with the provisions of the Series Agreement.

 

Subject to the terms and conditions of the Series Agreement, the Transferor[s] may, from time to time, direct the Owner Trustee, on behalf of the Issuer, to issue one or more new Series of notes.

 

On each Distribution Date, the Paying Agent will distribute to each Class B Noteholder of record on the related Record Date (except for the final distribution in respect of this Class B Note) such Class B Noteholder's pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Distribution Date to pay interest and principal on the Class B Notes pursuant to the Indenture Supplement. Except as provided in the Series Agreement with respect to a final distribution, distributions to the Noteholders will be made by (a) check mailed to each Noteholder (at such Noteholder's address as it appears in the Note Register), except that with respect to any Notes registered in the name of the nominee of the Clearing Agency, such distribution will be made in immediately
available funds and (b) without presentation or surrender of any Note or the making of any notation thereon. Final payment of this Class B Note will be made only upon presentation and surrender of this Class B Note at the office or agency specified in the notice of final distribution delivered by the Indenture Trustee to the Noteholders in accordance with the Series Agreement.

 

On any day occurring on or after the date on which the outstanding principal balance of the Notes is reduced to __% or less of the initial outstanding principal balance of the Notes, the Issuer will have the option to redeem the Notes, at a purchase price equal to (a) if such day is a Distribution Date, the Reassignment Amount for such
Distribution Date or (b) if such day is not a Distribution Date, the Reassignment Amount for the Distribution Date following such day.

 

This Class B Note does not represent an obligation of, or an interest in, the Transferor[s], Ford Motor Credit Company LLC, Ford Motor Company or any Affiliate of any of them and is not insured or guaranteed by any governmental agency or instrumentality.

 

Each Noteholder, by accepting a Note, hereby covenants and agrees that it will not at any time institute against the Issuer or the Transferor[s], or join in instituting against the Issuer or the Transferor[s], any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States
federal or state bankruptcy or similar law.

 

Except as otherwise provided in the Indenture Supplement, the Class B Notes are issuable only in minimum denominations of $1,000 and integral multiples of $1,000. The

 

  

A-2-6

  

transfer of this Class B Note will be registered in the Note Register upon surrender of this Class B Note for registration of transfer at any office or agency maintained by the Transfer Agent and Registrar accompanied by a written instrument of transfer, in a form satisfactory to the Indenture Trustee or the Transfer Agent and Registrar,
duly executed by the Class B Noteholder or such Class B Noteholder's attorney, and duly authorized in writing with such signature guaranteed, and thereupon one or more new Class B Notes in any authorized denominations of like aggregate principal amount will be issued to the designated transferee or transferees.

 

As provided in the Series Agreement and subject to certain limitations therein set forth, Class B Notes are exchangeable for new Class B Notes in any authorized denominations and of like aggregate principal amount, upon surrender of such Notes to be exchanged at the office or agency of the Transfer Agent and Registrar. No service charge
may be imposed for any such exchange but the Issuer or Transfer Agent and Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.

 

The Issuer, the Transferor[s], the Indenture Trustee and any agent of the Issuer, the Transferor[s] or the Indenture Trustee will treat the person in whose name this Class B Note is registered as the owner hereof for all purposes, and none of the Issuer, the Transferor[s], the Indenture Trustee or any agent of the Issuer, the Transferor[s]
or the Indenture Trustee with be affected by notice to the contrary.

 

This Class B Note is to be construed in accordance with the laws of the State of New York, without reference to its conflict of law provisions, and the obligations, rights and remedies of the parties hereunder are to be determined in accordance with such laws.

 

  

A-2-7

  

Assignment

 

Social Security or other identifying number of assignee________________________

 

For Value Received, the undersigned hereby sells, assigns and transfers unto

 

_____________________________________

_____________________________________

_____________________________________

_____________________________________

(name and address of assignee)

 

the within note and all rights thereunder, and hereby irrevocably constitutes and appoints _________________________________________________________, attorney, to transfer said note on the books kept for registration thereof, with full power of substitution in the premises.

 

	
Dated: ___________________
	
___________________________________1

	  	
Signature Guaranteed:

	  	  
	  	  	  

 
1  NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

  

A-2-8

  

Exhibit B

 

Form of Distribution Date Statement

 

______________________________

 

Ford Credit Floorplan Master Owner Trust __

 

Series __ Floating Rate Asset Backed Notes

 

______________________________

 

Pursuant to the Indenture, dated as of _______, 20__ (as amended and supplemented, the "Indenture"), between Ford Credit Floorplan Master Owner Trust __ (the "Issuer") and [Indenture Trustee],
as indenture trustee (the "Indenture Trustee"), as supplemented by the Series __ Indenture Supplement, dated as of ______, 20__ (as amended and supplemented, the "Indenture Supplement" and, together with the Indenture, the "Series Agreement"), Ford Motor Credit Company LLC ("Ford
Credit") as Servicer under the Transfer and Servicing Agreement[s] (as defined in the Series Agreement) is required to prepare certain information each month regarding current distributions to the Series __ Noteholders and the performance of the Issuer during the previous month.

 

Capitalized terms used in this Distribution Date Statement have their respective meanings set forth in the Series Agreement.

 

The information that is required to be prepared with respect to the Distribution Date of __________, and with respect to the performance of the Issuer during the month of __________ is set forth below.

 

In Witness Whereof, the undersigned has caused this Distribution Date Statement to be duly executed by the its duly authorized officer as of [______________], 20[__].

 

	 	
Ford Motor Credit Company LLC,

as Servicer

	 	
By:
	  
	 	  	
Name:

	 	  	
Title:

  

B-1

  

Exhibit C

 

Form of Monthly Allocation and Payment

 

Instructions to Indenture Trustee

 

______________________________

 

Ford Credit Floorplan Master Owner Trust __

 

Series __ Floating Rate Asset Backed Notes

 

______________________________

 

The undersigned, a duly authorized representative of Ford Motor Credit Company LLC ("Ford Credit"), as Servicer pursuant to [(i) the Transfer and Servicing Agreement, dated as of _______, 20__ (as amended and supplemented, the "FCF
Corp Transfer and Servicing Agreement"), among Ford Credit, Ford Credit Floorplan Master Owner Trust __ (the "Issuer") and Ford Credit Floorplan Corporation] [and] [(ii) the Transfer and Servicing Agreement, dated as of _______, 20__ (as amended and supplemented, the "FCF LLC Transfer and Servicing Agreement"), among Ford Credit, the Issuer and Ford Credit
Floorplan LLC,] does hereby certify as follows:

 

1.           Capitalized terms used in this Certificate have their respective meanings set forth in the [FCF Corp Transfer and Servicing Agreement] [and] [the FCF LLC Transfer and Servicing Agreement] [(collectively, the "Transfer
and Servicing Agreements")] or the Indenture, dated as of _______, 20__ (as amended and supplemented, the "Indenture"), between the Issuer and [Indenture Trustee], as indenture trustee (the "Indenture Trustee"), as supplemented by the Series __ Indenture Supplement, dated as of ______, 20__ (as amended and supplemented, the "Indenture
Supplement" and, together with the Indenture, the "Series Agreement"), as applicable.

 

2.           Ford Credit is the Servicer.

 

3.           The undersigned is an Authorized Officer of the Servicer.

 

4.           As of the date hereof, to the best knowledge of the undersigned, the Servicer has performed in all material respects all its obligations under the Transfer and Servicing Agreement[s] and the Series Agreement through the Collection Period preceding such Distribution Date
[or, if there has been a default in the performance of any such obligation, set forth in detail the (i) nature of such default, (ii) the action taken by the Servicer, if any, to remedy such default and (iii) the current status of each such default]; if applicable, insert "None".

 

5.           As of the date hereof, to the best knowledge of the undersigned, no Amortization Event occurred on or before such date.

 

  

C-1

  

6.           The Monthly Allocation and Payment Instructions are as follows:  [TO BE PROVIDED]

 

In Witness Whereof, the undersigned has caused this Certificate to be duly executed by the its duly authorized officer as of [______________], 20[__].

 

	 	
Ford Motor Credit Company LLC,

as Servicer

	 	
By: 
	  
	 	  	
Name:

	 	  	
Title:

  

C-2exhibit4_1.htm - Generated by SEC Publisher for SEC Filing

 

Century Aluminum Company

and

Computershare Trust Company, N.A.

Tax Benefit Preservation Plan

Dated as of September 29, 2009

	TAX BENEFIT PRESERVATION PLAN

          Tax Benefit Preservation Plan, dated as September 29, 2009 (“Plan”) between Century Aluminum Company, a Delaware corporation (the “Company”) and Computershare Trust Company, N.A., as rights agent (the “Rights Agent”).

	W I T N E S S E T H

          The Board of Directors of the Company has authorized and declared a dividend of one preferred share purchase right (a “Right”) for each Common Share (as hereinafter defined) of the Company outstanding on October 9, 2009 (the “Record Date”) and one hundred Rights (subject to adjustment as provided herein) for each share of Series A Convertible Preferred Stock (the “Series A Preferred Stock”) outstanding on the Record Date, each Right representing the right to purchase one one-hundredth of a Preferred Share (as hereinafter defined), upon the terms and subject to the conditions herein set forth, and has further authorized and directed the issuance of one Right with respect to each Common Share and one hundred Rights to each share of Series A Preferred Stock that shall become outstanding between the Record Date and the earliest of the Distribution Date, the Redemption Date, the Early Expiration Date and the Final Expiration Date (as such terms are hereinafter defined).

          Accordingly, in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows:

          Section 1.     Definitions. For purposes of this Plan, the following terms have the meanings indicated:

          (a)     “Acquiring Person” shall mean any Person (other than any Exempt Person) who or which, together with all Affiliates and Associates of such Person, shall be the Beneficial Owner of 4.9% or more of the Common Stock of the Company then outstanding, but shall not include the Company, any Subsidiary of the Company, any employee benefit plan of the Company or any Subsidiary of the Company, or any entity holding Common Stock for or pursuant to the terms of any such plan; provided, however, that, (i) any Person who or which would otherwise be an Acquiring Person as of the date of this Plan (such person, an “Existing Holder”) will not be deemed to be an Acquiring Person for any purpose of this Plan prior to or after the date of this Plan unless and until such time as (A) such Person or any Affiliate or Associate of such Person thereafter becomes, individually or in the aggregate, the Beneficial Owner of additional Common Stock representing one percent (1.0%) or more of the Common Stock then outstanding, not including Common Shares obtained (1) pursuant to any agreement or regular-way purchase order for Common Stock that is in effect on or prior to the date of this Plan and consummated in accordance with its terms after the date of this Plan, or (2) as a result of a stock dividend, rights dividend, stock split or similar transaction effected by the Company in which all holders of Common Stock are treated equally, or (B) any other Person who is the Beneficial Owner of Common Stock becomes an Affiliate or Associate of such Person after the date of this Plan; provided, however, that the foregoing exclusion in this clause (i) shall cease to apply with respect to any Person at such time as such Person, together with all Affiliates and Associates of such Person, Beneficially Owns less than 4.9% of the then-outstanding Common

2

Stock, and (ii) a Person will not be deemed to have become an Acquiring Person solely as a result of a reduction in the number of Common Stock outstanding unless and until such time as (A) such Person or any Affiliate or Associate of such Person thereafter becomes the Beneficial Owner of any additional Common Stock, other than as a result of a stock dividend, stock split or similar transaction effected by the Company in which all holders of Common Stock are treated equally, or (B) any other Person who is the Beneficial Owner of Common Stock becomes an Affiliate or Associate of such Person after the date of this Plan. Notwithstanding the foregoing, if (1) the Board of Directors of the Company determines that a Person who would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this paragraph (a), has become such inadvertently, and (2) such Person divests as promptly as practicable or agrees in writing with the Company to divest a sufficient number of Common Stock so that such Person would no longer be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this paragraph (a), then, if the Board of Directors of the Company so chooses, such Person shall not be deemed to be an “Acquiring Person” for any purposes of this Plan; provided, however, that the requirement in this clause (2) shall apply only if the actions specified therein are required by the Board of Directors of the Company.

          (b)     “Affiliate” shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in effect on the date of this Plan and, to the extent not included within the foregoing, will also include, with respect to any Person, any other Person (other than an Exempt Person) whose Common Stock would be deemed owned constructively or indirectly by such first Person pursuant to the provisions of Section 382; provided, however, that a Person will not be deemed to be the Affiliate or Associate of another Person solely because either or both Persons are or were Directors of the Company.

          (c)     “Associate” shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations under the Exchange Act as in effect on the date of this Plan.

          (d)     A Person shall be deemed the “Beneficial Owner” of and shall be deemed to “beneficially own” any securities:

     (i)      which such Person or any of such Person’s Affiliates or Associates beneficially owns, directly or indirectly;

     (ii)     which such Person or any of such Person’s Affiliates or Associates has (A) the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), or upon the exercise of conversion rights, exchange rights, rights (other than these Rights), warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange; or (B) the right to vote pursuant to any agreement, arrangement or understanding; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security if the agreement, arrangement or

3

understanding to vote such security (1) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations promulgated under the Exchange Act and (2) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report); or

     (iii)     which are beneficially owned, directly or indirectly, by any other Person with which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities) for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to Section 1(d)(ii)(B) hereof) or disposing of any securities of the Company.

          Notwithstanding anything in this Plan to the contrary, to the extent not within the foregoing provisions of this paragraph (d), a Person shall be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially own” or have “beneficial ownership” of, any securities which such Person would be deemed to own constructively or indirectly pursuant to Section 382.

          Notwithstanding anything in this definition of Beneficial Ownership to the contrary, the phrase “then outstanding,” when used with reference to a Person’s Beneficial Ownership of securities of the Company, shall mean the number of such securities then issued and outstanding together with the number of such securities not then actually issued and outstanding which such Person would be deemed to own beneficially hereunder.

          (e)     “Business Day” shall mean any day other than a Saturday, a Sunday, or a day on which banking institutions in the Commonwealth of Massachusetts are authorized or obligated by law or executive order to close.

          (f)     “Close of Business” on any given date shall mean 5:00 P.M., New York City time, on such date; provided , however, that, if such date is not a Business Day, it shall mean 5:00 P.M., New York City time, on the next succeeding Business Day.

          (g)     “Common Stock” when used with reference to the Company shall mean the shares of common stock, par value $0.01 per share, of the Company. “Common Stock” when used with reference to any Person other than the Company shall mean the capital stock (or equity interest) with the greatest voting power of such other Person or, if such other Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person.

          (h)     “Distribution Date” shall have the meaning set forth in Section 3(a) hereof. 

          (i)     “Early Expiration Date” shall have the meaning set forth in Section 7(a) hereof. 

          (j)     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

          (k)     “Exchange Ratio” shall have the meaning set forth in Section 24(a) hereof.

4

          (l)      “Exempt Person” shall mean a Person whose Beneficial Ownership (together with all Affiliates and Associates of such Person) of 4.9% or more of the then-outstanding Common Stock, as determined after the date hereof by the Company’s Board of Directors in its sole discretion, (i) will not jeopardize or endanger the availability to the Company of any income tax benefit or (ii) is otherwise in the best interests of the Company; provided, however, that such a Person will cease to be an Exempt Person if the Board makes a contrary determination with respect to the effect of such Person’s Beneficial Ownership (together with all Affiliates and Associates of such Person) regardless of the reason therefor.

          (m)    “Final Expiration Date” shall have the meaning set forth in Section 7(a) hereof.

          (n)     “NASDAQ” shall mean the National Association of Securities Dealers, Inc. Automated Quotation System.

          (o)     “Person” shall mean any individual, firm, corporation, partnership, limited liability company, limited liability partnership, trust, estate or other entity, or a group of Persons making a “coordinated acquisition” of shares or otherwise treated as an entity within the meaning of Section 1.382 -3(a)(1) of the Treasury Regulations, and shall include any successor (by merger or otherwise) of such individual or entity, but shall not include a Public Group (as such term is defined in Section 1.382 -2T(f)(13) of the Treasury Regulations).

          (p)     “Preferred Shares” shall mean shares of Series B Junior Participating Preferred Stock, par value $0.01 per share, of the Company having the rights and preferences set forth in the Form of Certificate of Designations attached to this Plan as Exhibit A.

          (q)     “Purchase Price” shall have the meaning set forth in Section 7 hereof.

          (r)      “Record Date” shall have the meaning set forth in the second paragraph hereof. 

          (s)      “Redemption Date” shall have the meaning set forth in Section 7(a) hereof. 

          (t)      “Redemption Price” shall have the meaning set forth in Section 23(a) hereof. 

          (u)      “Right” shall have the meaning set forth in the second paragraph hereof.

          (v)      “Right Certificate” shall have the meaning set forth in Section 3(a) hereof.

          (w)     “Section 382” shall mean Section 382 of the Internal Revenue Code of 1986, as amended, or any successor provision or replacement provision.

          (x)      “Series A Preferred Stock” shall mean shares of Series A Convertible Preferred Stock, par value $0.01 per share, of the Company.

          (y)      “Shares Acquisition Date” shall mean the first date of public announcement by

5

the Company or an Acquiring Person, prior to the earliest of the Redemption Date, the Early Expiration Date and the Final Expiration Date, that an Acquiring Person has become such.

         (z)      “Stockholder Approval” shall mean the approval of this Plan by the affirmative vote of the holders of a majority of the voting power of the outstanding Common Stock of the Company entitled to vote, and present, or represented by proxy, at the meeting of stockholders of the Company duly held in accordance with the Company’s Certificate of Incorporation (as amended) and applicable law.

         (aa)    “Subsidiary” of any Person shall mean any corporation or other entity of which a majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by such Person.

         (bb)    “Summary of Rights” shall have the meaning set forth in Section 3(b) hereof.

         (cc)    “Trading Day” shall have the meaning set forth in Section 11(d) hereof.

         (dd)    “Treasury Regulations” shall mean final, temporary and proposed income tax regulations promulgated under the Internal Revenue Code of 1986, as amended, including any amendments thereto.

         Section 2.     Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as agent for the Company in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such co-Rights Agents as it may deem necessary or desirable, upon ten (10) days’ prior written notice to the Rights Agent. The Rights Agent shall have no duty to supervise, and shall in no event be liable for, the acts or omissions of any such co-Rights Agent.         

         Section 3.     Issue of Right Certificates. (a) Until the Close of Business on the tenth day after the Shares Acquisition Date (including any such Shares Acquisition Date which is after the date of this Plan and prior to the issuance of the Rights) (the “Distribution Date”), (i) the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the certificates for Common Stock of the Company registered in the names of the holders thereof or by the certificates for the Series A Preferred Stock of the Company registered in the names of the holders thereof (such certificates for the Common Stock and the Series A Preferred Stock shall also be deemed to be Right Certificates) and not by separate Right Certificates, and (ii) the right to receive Right Certificates will be transferable only in connection with the transfer of Common Stock or the Series A Preferred Stock of the Company. As soon as practicable after the Distribution Date, the Company will prepare and execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested, send) by first-class, insured, postage-prepaid mail, (x) to each record holder of Common Stock of the Company as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the Company, a Right Certificate, in substantially the form of Exhibit B hereto (a “Right Certificate”), evidencing one Right for each Common Share so held (other than with respect to Rights that have become void pursuant to Section 11(a)(ii) hereof or that have

6

been exchanged pursuant to Section 24 hereof) and (y) to each record holder of Series A Preferred Stock of the Company as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the Company, a Right Certificate evidencing the number of Rights held with respect to each share of Series A Preferred Stock (other than with respect to Rights that have become void pursuant to Section 11(a)(ii) hereof or that have been exchanged pursuant to Section 24 hereof). Upon conversion or exchange of any share of Series A Preferred Stock into shares of Common Stock, the Rights associated with such share of Series A Preferred Stock will automatically be extinguished, and a Right will be issued in respect of each such share of Common Stock. As of the Distribution Date, the Rights will be evidenced solely by such Right Certificates.

         (b)     On the Record Date, or as soon as practicable thereafter, the Company will, at its option, either send (by first-class, postage-prepaid mail at the address shown on the records of the Company) or make otherwise available to each record holder of Common Stock and to each record holder of Series A Preferred Stock as of the Close of Business on the Record Date, a copy of a Summary of Rights to Purchase Preferred Shares, in substantially the form of Exhibit C hereto (the “Summary of Rights”). With respect to certificates for Common Stock of the Company outstanding as of the Record Date and certificates for Series A Preferred Stock outstanding as of the Record Date, until the Distribution Date, the Rights will be evidenced by such certificates registered in the names of the holders thereof together with a copy of the Summary of Rights attached thereto. Until the Distribution Date (or the earliest of the Redemption Date, the Early Expiration Date or the Final Expiration Date), the surrender for transfer of any certificate for Common Stock or Series A Preferred Stock of the Company outstanding on the Record Date, with or without a copy of the Summary of Rights attached thereto, shall also constitute the transfer of the Rights associated with the Common Stock of the Company represented thereby.

         (c)     Certificates for such Common Stock or Series A Preferred Stock which become outstanding after the Record Date but prior to the earliest of the Distribution Date, the Redemption Date, the Early Expiration Date or the Final Expiration Date shall have impressed on, printed on, written on or otherwise affixed to them a legend in substantially the following form:

This certificate also evidences and entitles the holder hereof to certain rights as set forth in an Plan between Century Aluminum Company and Computershare Trust Company, N.A., dated as of September 29, 2009, as it may be amended from time to time (the “Plan”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of Century Aluminum Company. Under certain circumstances, as set forth in the Plan, such Rights (as defined in the Plan) will be evidenced by separate certificates and will no longer be evidenced by this certificate. Century Aluminum Company will mail to the holder of this certificate a copy of the Plan without charge after receipt of a written request therefor. As set forth in the Plan, Rights beneficially owned by any Person (as defined in the Plan) who becomes an Acquiring Person (as defined in the Plan) become null and void.

With respect to such certificates containing the foregoing legend, until the Distribution Date, the

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Rights associated with the Common Stock or Series A Preferred Stock of the Company represented by such certificates shall be evidenced by such certificates alone, and the surrender for transfer of any such certificate (prior to the earliest of the Distribution Date, the Redemption Date, the Early Expiration Date or the Final Expiration Date) shall also constitute the transfer of the Rights associated with the Common Stock or Series A Preferred Stock of the Company represented thereby. In the event that the Company purchases or acquires any Common Stock or Series A Preferred Stock of the Company after the Record Date but prior to the Distribution Date, any Rights associated with such Common Stock or Series A Preferred Stock of the Company shall be deemed cancelled and retired so that the Company shall not be entitled to exercise any Rights associated with the Common Stock or Series A Preferred Stock of the Company which are no longer outstanding.

         Section 4.     Form of Right Certificates. (a) The Right Certificates (and the forms of election to purchase Preferred Shares and of assignment to be printed on the reverse thereof) shall be substantially the same as Exhibit B hereto, and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Plan, or as may be required to comply with any applicable law or with any applicable rule or regulation made pursuant thereto or with any applicable rule or regulation of any stock exchange or the Financial Industry Regulatory Authority, or to conform to usage. Subject to the provisions of Section 22 hereof, the Right Certificates shall entitle the holders thereof to purchase such number of one one-hundredths of a Preferred Share at the price per one one-hundredth of a Preferred Share set forth herein in Section 7(b), but the number of such one one-hundredths of a Preferred Share and the Purchase Price shall be subject to adjustment as provided herein.

         Section 5.     Countersignature and Registration. The Right Certificates shall be executed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its President, its Chief Financial Officers, its General Counsel, any of its Vice Presidents or its Treasurer (any of the foregoing, an “Authorized Officer”), either manually or by facsimile signature, shall have affixed thereto the Company’s seal or a facsimile thereof, and shall be attested by the Secretary or an Assistant Secretary of the Company, either manually or by facsimile signature. The Right Certificates shall be manually or by facsimile countersigned by the Rights Agent and shall not be valid for any purpose unless countersigned. In case any officer of the Company who shall have signed any of the Right Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Right Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the individual who signed such Right Certificates had not ceased to be such officer of the Company; and any Right Certificate may be signed on behalf of the Company by any individual who, at the actual date of the execution of such Right Certificate, shall be a proper officer of the Company to sign such Right Certificate, although at the date of the execution of this Plan any such individual was not such an officer.

         Following the Distribution Date, the Rights Agent will keep or cause to be kept, at its principal office, books for registration and transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Right

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Certificates, the number of Rights evidenced on its face by each of the Right Certificates and the date of each of the Right Certificates.

         Section 6.     Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates. Subject to the provisions of Section 14 hereof, at any time after the Close of Business on the Distribution Date, and at or prior to the Close of Business on the earliest of the Redemption Date, the Early Expiration Date or the Final Expiration Date, any Right Certificate or Right Certificates (other than Right Certificates representing Rights that have become void pursuant to Section 11(a)(ii) hereof or that have been exchanged pursuant to Section 24 hereof) may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates entitling the registered holder to purchase a like number of one one-hundredths of a Preferred Share as the Right Certificate or Right Certificates surrendered then entitled such holder to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Right Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Right Certificate or Right Certificates to be transferred, split up, combined or exchanged at the principal office of the Rights Agent. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Right Certificate until the registered holder shall have completed and signed the certificate contained in the form of assignment on the reverse side of such Right Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company shall reasonably request. Thereupon or as promptly as practicable thereafter, the Rights Agent shall countersign and deliver to the Person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested. The Company may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of Right Certificates.

         Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and, at the Company’s request, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Right Certificate if mutilated, the Company will make and deliver a new Right Certificate of like tenor to the Rights Agent for delivery to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated.

         Section 7.     Exercise of Rights; Purchase Price; Expiration Date of Rights. (a) The registered holder of any Right Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein), in whole or in part, at any time after the Distribution Date, upon surrender of the Right Certificate, with the form of election to purchase on the reverse side thereof duly executed, to the Rights Agent at the principal office of the Rights Agent, together with payment of the Purchase Price for each one one-hundredth of a Preferred Share as to which the Rights are exercised, at or prior to the earliest of (i) the Close of Business on August 1, 2011 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”), (iii) the time at which such Rights are exchanged as

9

provided in Section 24 hereof, (iv) the repeal of Section 382 or any successor statute, or any other change, if the Board, in its sole discretion, determines that this Plan is no longer necessary for the preservation of tax benefits, (v) September 29, 2010 if Stockholder Approval has not been obtained prior to such date, in which event the Company shall notify the Rights Agent promptly thereafter or (vi) a determination by the Board, prior to the time any Person becomes an Acquiring Person, that the Plan and the Rights are no longer in the best interests of the Company and its stockholders (the earliest of the dates set forth in clauses (iv), (v), and (vi), the “Early Expiration Date”).

         (b)     The Purchase Price for each one one-hundredth of a Preferred Share purchasable pursuant to the exercise of a Right shall initially be $80.00 (the “Purchase Price”), and shall be subject to adjustment from time to time as provided in Section 11 hereof, and shall be payable in lawful money of the United States of America in accordance with paragraph (c) below.

         (c)     Upon receipt of a Right Certificate representing exercisable Rights, with the form of election to purchase duly executed, accompanied by payment of the Purchase Price for the shares to be purchased and an amount equal to any applicable transfer tax required to be paid by the holder of such Right Certificate in accordance with Section 9 hereof by certified check, cashier’s check or money order payable to the order of the Company, the Rights Agent shall thereupon promptly (i) (A) requisition from any transfer agent of the Preferred Shares certificates for the number of Preferred Shares to be purchased and the Company hereby irrevocably authorizes any such transfer agent to comply with all such requests, or (B) requisition from the depositary agent depositary receipts representing such number of one one-hundredths of a Preferred Share as are to be purchased (in which case certificates for the Preferred Shares represented by such receipts shall be deposited by the transfer agent of the Preferred Shares with such depositary agent) and the Company hereby directs such depositary agent to comply with such request; (ii) when appropriate, requisition from the Company the amount of cash to be paid in lieu of issuance of fractional shares in accordance with Section 14 hereof; (iii) promptly after receipt of such certificates or depositary receipts, cause the same to be delivered to or upon the order of the registered holder of such Right Certificate, registered in such name or names as may be designated by such holder (If the Company is obligated to deliver Common Stock or other securities or assets pursuant to this Rights Plan, the Company will make all arrangements necessary so that such securities and assets are available for delivery by the Rights Agent, if and when appropriate.); and (iv) when appropriate, after receipt, promptly deliver such cash to or upon the order of the registered holder of such Right Certificate. The payment of the Purchase Price shall be made in cash or by certified bank check or bank draft payable to the order of the Company. In the event that the Company is obligated to issue other securities (including, without limitation, Common Shares) of the Company, pay cash and/or distribute other property pursuant to Section 11(a), the Company will make all arrangements necessary so that such other securities, cash and/or other property are available for distribution by the Rights Agent, if and when necessary to comply with the terms of this Agreement. The Company reserves the right to require prior to the occurrence of an event described in Section 11(a)(ii) that, upon any exercise of Rights, a number of Rights be exercised so that only whole Preferred Shares would be issued.

         (d)     In case the registered holder of any Right Certificate shall exercise less than all

10

the Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent to registered holder of such Right Certificate or to such holder’s duly authorized assigns, subject to the provisions of Section 14 hereof.

         (e)     Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company will be obligated to undertake any action with respect to any purported transfer, split up, combination or exchange of any Right Certificate pursuant to Section 6 or exercise of a Right Certificate as set forth in this Section 7 unless the registered holder of such Right Certificate has (i) completed and signed the certificate following the form of assignment or the form of election to purchase, as applicable, set forth on the reverse side of the Right Certificate surrendered for such transfer, split up, combination, exchange or exercise and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company may reasonably request.

         Section 8.     Cancellation and Destruction of Right Certificates. All Right Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent for cancellation or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Right Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Plan. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Right Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. Subject to applicable law and regulation, the Rights Agent shall maintain in a retrievable database electronic records of all cancelled or destroyed stock certificates which have been canceled or destroyed by the Rights Agent. The Rights Agent shall maintain such electronic records or physical records for the time period required by applicable law and regulation. Upon written request of the Company (and at the expense of the Company), the Rights Agent shall provide to the Company or its designee copies of such electronic records or physical records relating to rights certificates cancelled or destroyed by the Rights Agent.

         Section 9.     Availability of Preferred Shares. The Company covenants and agrees that it will cause to be reserved and kept available out of its authorized and unissued Preferred Shares or any Preferred Shares held in its treasury the number of Preferred Shares that will be sufficient to permit the exercise in full of all outstanding Rights in accordance with Section 7 hereof. The Company covenants and agrees that it will take all such action as may be necessary to ensure that all Preferred Shares delivered upon exercise of Rights shall, at the time of delivery of the certificates for such Preferred Shares (subject to payment of the Purchase Price), be duly and validly authorized and issued and fully paid and nonassessable shares.

         The Company further covenants and agrees that it will pay when due and payable any and all federal and state transfer taxes and charges which may be payable in respect of the issuance or delivery of the Right Certificates or of any Preferred Shares upon the exercise of Rights. The Company shall not, however, be required to pay any transfer tax which may be payable in respect of any transfer or delivery of Right Certificates to a Person other than, or the issuance or delivery of certificates or depositary receipts for the Preferred Shares in a name other than that of, the registered holder of the Right Certificate evidencing Rights surrendered for

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exercise or to issue or to deliver any certificates or depositary receipts for Preferred Shares upon the exercise of any Rights until any such tax shall have been paid (any such tax being payable by the holder of such Right Certificate at the time of surrender) or until it has been established to the Company’s reasonable satisfaction that no such tax is due.

         Section 10.     Preferred Shares Record Date. Each Person in whose name any certificate for Preferred Shares is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Preferred Shares represented thereby on, and such certificate shall be dated, the date upon which the Right Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and any applicable transfer taxes) was made; provided, however, that, if the date of such surrender and payment is a date upon which the Preferred Shares transfer books of the Company are closed, such Person shall be deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the Preferred Shares transfer books of the Company are open. Prior to the exercise of the Rights evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a holder of Preferred Shares for which the Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends or other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein.

         Section 11.     Adjustment of Purchase Price, Number of Shares or Number of Rights. The Purchase Price, the number of Preferred Shares covered by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11.

         (a)     (i)     In the event the Company shall at any time after the date of this Plan (A) declare a dividend on the Preferred Shares payable in Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine the outstanding Preferred Shares into a smaller number of Preferred Shares or (D) issue any shares of its capital stock in a reclassification of the Preferred Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided in this Section 11(a), the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification, and the number and kind of shares of capital stock issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of capital stock which, if such Right had been exercised immediately prior to such date and at a time when the Preferred Shares transfer books of the Company were open, such holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right.

         (ii)     Subject to Section 24 hereof, in the event any Person becomes an Acquiring Person, each holder of a Right (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person) shall thereafter have a right to receive, upon exercise thereof at a price equal to the then current Purchase Price multiplied by the number of one one-hundredths of a Preferred

12

Share for which a Right is then exercisable, in accordance with the terms of this Plan and in lieu of Preferred Shares, such number of Common Stock of the Company as shall equal the result obtained by (A) multiplying the then current Purchase Price by the number of one one-hundredths of a Preferred Share for which a Right is then exercisable and dividing that product by (B) 50% of the then current per share market price of the Common Stock of the Company (determined pursuant to Section 11(d) hereof) on the date of the occurrence of such event. In the event that any Person shall become an Acquiring Person and does not become an Exempt Person prior to the Distribution Date and the Rights shall then be outstanding, the Company shall not take any action which would eliminate or diminish the benefits intended to be afforded by the Rights.

         From and after the occurrence of such event, any Rights that are or were acquired or beneficially owned by any Acquiring Person (or any Associate or Affiliate of such Acquiring Person) shall be void, and any holder of such Rights shall thereafter have no right to exercise such Rights under any provision of this Plan. No Right Certificate shall be issued pursuant to Section 3 hereof that represents Rights beneficially owned by an Acquiring Person whose Rights would be void pursuant to the preceding sentence or any Associate or Affiliate thereof; no Right Certificate shall be issued at any time upon the transfer of any Rights to an Acquiring Person whose Rights would be void pursuant to the preceding sentence or any Associate or Affiliate thereof or to any nominee of such Acquiring Person, Associate or Affiliate; and any Right Certificate delivered to the Rights Agent for transfer to an Acquiring Person whose Rights would be void pursuant to the preceding sentence shall be cancelled.

         (iii)     In the event that there shall not be sufficient Common Stock issued but not outstanding or authorized but unissued to permit the exercise in full of the Rights in accordance with subparagraph (ii) above, the Company shall take all such action as may be necessary to authorize additional Common Stock for issuance upon exercise of the Rights. In the event the Company shall, after good faith effort, be unable to take all such action as may be necessary to authorize such additional Common Stock, the Company shall substitute, for each Common Share that would otherwise be issuable upon exercise of a Right, a number of Preferred Shares or fraction thereof such that the current per share market price of one Preferred Share multiplied by such number or fraction is equal to the current per share market price of one Common Share as of the date of issuance of such Preferred Shares or fraction thereof.

         (b)     In case the Company shall fix a record date for the issuance of rights, options or warrants to all holders of Preferred Shares entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Preferred Shares (or shares having the same rights, privileges and preferences as the Preferred Shares (“equivalent preferred shares ”)) or securities convertible into Preferred Shares or equivalent preferred shares at a price per Preferred Share or equivalent preferred share (or having a conversion price per share, if a security convertible into Preferred Shares or equivalent preferred shares) less than the then current per share market price of the Preferred Shares (as defined in Section 11(d)) on such record date, the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of Preferred Shares outstanding on such record date plus the number of Preferred Shares which the aggregate offering price of the total number of

13

Preferred Shares and/or equivalent preferred shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at such current market price and the denominator of which shall be the number of Preferred Shares outstanding on such record date plus the number of additional Preferred Shares and/or equivalent preferred shares to be offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and holders of the Rights. Preferred Shares owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed; and, in the event that such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed.

         (c) In case the Company shall fix a record date for the making of a distribution to all holders of the Preferred Shares (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend payable in Preferred Shares) or subscription rights or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the then-current per share market price of the Preferred Shares on such record date, less the fair market value (as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and holders of the Rights) of the portion of the assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to one Preferred Share and the denominator of which shall be such then-current per share market price of the Preferred Shares on such record date; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company to be issued upon exercise of one Right. Such adjustments shall be made successively whenever such a record date is fixed; and, in the event that such distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed.

         (d)     (i)     For the purpose of any computation hereunder, the “current per share market price” of any security (a “Security” for the purpose of this Section 11(d)(i)) on any date shall be deemed to be the average of the daily closing prices per share of such Security for the 30 consecutive Trading Days immediately prior to such date; provided, however, that, in the event that the current per share market price of the Security is determined during a period following the announcement by the issuer of such Security of (A) a dividend or distribution on such Security payable in shares of such Security or Securities convertible into such shares, or (B) any

14

subdivision, combination or reclassification of such Security and prior to the expiration of 30 Trading Days after the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case, the current per share market price shall be appropriately adjusted to reflect the current market price per share equivalent of such Security. The closing price for each day shall be the last sale price, regular way, reported at or prior to 4:00 P.M. Eastern time or, in case no such sale takes place on such day, the average of the bid and asked prices, regular way, reported as of 4:00 P.M. Eastern time, in either case, as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the NASDAQ or, if the Security is not listed or admitted to trading on the NASDAQ, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Security is listed or admitted to trading or, if the Security is not listed or admitted to trading on any national securities exchange, the last quoted price reported at or prior to 4:00 P.M. Eastern time or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported as of 4:00 P.M. Eastern time by NASDAQ or such other system then in use, or, if on any such date the Security is not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Security selected by the Board of Directors of the Company. The term “Trading Day” shall mean a day on which the principal national securities exchange on which the Security is listed or admitted to trading is open for the transaction of business, or, if the Security is not listed or admitted to trading on any national securities exchange, a Business Day.

         (ii)     For the purpose of any computation hereunder, the “current per share market price” of the Preferred Shares shall be determined in accordance with the method set forth in Section 11(d)(i). If the Preferred Shares are not publicly traded, the “current per share market price” of the Preferred Shares shall be conclusively deemed to be the current per share market price of the Common Stock as determined pursuant to Section 11(d)(i) hereof (appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof), multiplied by one hundred. If neither the Common Stock nor the Preferred Shares are publicly held or so listed or traded, “current per share market price” shall mean the fair value per share as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent.

         (e)     No adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least 1% in the Purchase Price; provided, however, that any adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest one one-millionth of a Preferred Share or one ten-thousandth of any other share or security as the case may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three years from the date of the transaction which requires such adjustment or (ii) the date of the expiration of the right to exercise any Rights.

         (f)     If, as a result of an adjustment made pursuant to Section 11(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than Preferred Shares, thereafter the number of such other shares so

15

receivable upon exercise of any Right shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained in Section 11(a) through (c) hereof, inclusive, and the provisions of Sections 7, 9 and 10 hereof with respect to the Preferred Shares shall apply on like terms to any such other shares.

         (g)     All Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the number of one one-hundredths of a Preferred Share purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein.

         (h)     Unless the Company shall have exercised its election as provided in Section 11(i) hereof, upon each adjustment of the Purchase Price as a result of the calculations made in Sections 11(b) and (c) hereof, each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one one-hundredths of a Preferred Share (calculated to the nearest one one-millionth of a Preferred Share) obtained by (A) multiplying (x) the number of one one-hundredths of a share covered by a Right immediately prior to this adjustment by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price and (B) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price.

         (i)     The Company may elect, on or after the date of any adjustment of the Purchase Price, to adjust the number of Rights in substitution for any adjustment in the number of one one-hundredths of a Preferred Share purchasable upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number of Rights shall be exercisable for the number of one one-hundredths of a Preferred Share for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one ten-thousandth) obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a public announcement of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the Right Certificates have been issued, shall be at least 10 days later than the date of the public announcement. If Right Certificates have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Right Certificates on such record date Right Certificates evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Right Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Right Certificates so to be distributed shall be issued, executed and countersigned in the manner provided for herein, and shall be registered in the names of the holders of record of Right Certificates on the record date specified in the public announcement.

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         (j)     Irrespective of any adjustment or change in the Purchase Price or in the number of one one-hundredths of a Preferred Share issuable upon the exercise of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number of one one-hundredths of a Preferred Share which were expressed in the initial Right Certificates issued hereunder.

         (k)     Before taking any action that would cause an adjustment reducing the Purchase Price below one one-hundredth of the then par value, if any, of the Preferred Shares issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully paid and nonassessable Preferred Shares at such adjusted Purchase Price.

         (l)     In any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date for a specified event, the Company may elect to defer until the occurrence of such event the issuing to the holder of any Right exercised after such record date of the Preferred Shares and other capital stock or securities of the Company, if any, issuable upon such exercise over and above the Preferred Shares and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional shares upon the occurrence of the event requiring such adjustment.

         (m)     Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that it, in its sole discretion, shall determine to be advisable in order that any consolidation or subdivision of the Preferred Shares, issuance wholly for cash of any Preferred Shares at less than the current market price, issuance wholly for cash of Preferred Shares or securities which by their terms are convertible into or exchangeable for Preferred Shares, dividends on Preferred Shares payable in Preferred Shares or issuance of rights, options or warrants referred to in Section 11(b) hereof, hereafter made by the Company to holders of the Preferred Shares shall not be taxable to such stockholders.

         (n)     In the event that, at any time after the date of this Plan and prior to the Distribution Date, the Company shall (i) declare or pay any dividend on the Common Stock payable in Common Stock, or (ii) effect a subdivision, combination or consolidation of the Common Stock (by reclassification or otherwise than by payment of dividends in Common Stock) into a greater or lesser number of Common Stock, then, in any such case, (A) the number of one one-hundredths of a Preferred Share purchasable after such event upon proper exercise of each Right shall be determined by multiplying the number of one one-hundredths of a Preferred Share so purchasable immediately prior to such event by a fraction, the numerator of which is the number of Common Stock outstanding immediately before such event and the denominator of which is the number of Common Stock outstanding immediately after such event, and (B) each Common Share and Series A Preferred Share outstanding immediately after such event shall have issued with respect to it that number of Rights which each Common Share or Series A Preferred Share, as applicable, outstanding immediately prior to such event had issued with

17

respect to it. The adjustments provided for in this Section 11(n) shall be made successively whenever such a dividend is declared or paid or such a subdivision, combination or consolidation is effected.

          Section 12.     Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Section 11 hereof, the Company shall promptly (a) prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Common Stock, Series A Preferred Stock or the Preferred Shares and the Securities and Exchange Commission a copy of such certificate and (c) if such adjustment occurs at any time after the Distribution Date, mail a brief summary thereof to each holder of a Right Certificate in accordance with Section 25 hereof.

          Section 13.     Reserved.

          Section 14.     Fractional Rights and Fractional Shares. (a) The Company shall not be required to issue fractions of Rights or to distribute Right Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the registered holders of the Right Certificates with regard to which such fractional Rights would otherwise be issuable, an amount in cash equal to the same fraction of the current market value of a whole Right. For the purposes of this Section 14(a), the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable. The closing price for any day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case, as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the NASDAQ or, if the Rights are not listed or admitted to trading on the NASDAQ, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Rights are listed or admitted to trading or, if the Rights are not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by NASDAQ or such other system then in use or, if on any such date the Rights are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights selected by the Board of Directors of the Company. If on any such date no such market maker is making a market in the Rights, the fair value of the Rights on such date as determined in good faith by the Board of Directors of the Company shall be used.

          (b)     The Company shall not be required to issue fractions of Preferred Shares (other than fractions which are integral multiples of one one-hundredth of a Preferred Share) upon exercise of the Rights or to distribute certificates which evidence fractional Preferred Shares (other than fractions which are integral multiples of one one-hundredth of a Preferred Share). Fractions of Preferred Shares in integral multiples of one one-hundredth of a Preferred Share may, at the election of the Company, be evidenced by depositary receipts, pursuant to an appropriate agreement between the Company and a depositary selected by it; provided that such agreement shall provide that the holders of such depositary receipts shall have all the rights,

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privileges and preferences to which they are entitled as beneficial owners of the Preferred Shares represented by such depositary receipts. In lieu of fractional Preferred Shares that are not integral multiples of one one-hundredth of a Preferred Share, the Company shall pay to the registered holders of Right Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one Preferred Share. For the purposes of this Section 14(b), the current market value of a Preferred Share shall be the closing price of a Preferred Share (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of such exercise.

          (c)    Following the occurrence of an event described in Section 11(a)(ii), the Company shall not be required to issue fractions of Common Stock upon exercise of the Rights or to distribute certificates which evidence fractional Common Shares. In lieu of fractional Common Shares, the Company shall pay to the registered holders of Rights Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one Common Share. For purposes of this Section 14(c), the current market value of one Common Share shall be the closing price of one Common Share (as determined pursuant to Section 11(d)(i)) for the Trading Day immediately prior to the date of such exercise.

          (d)    The holder of a Right, by the acceptance of the Right, expressly waives such holder’s right to receive any fractional Rights or any fractional shares upon exercise of a Right (except as provided above).

          (e)    Whenever a payment for fractional Rights or fractional shares is to be made by the Rights Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to such payment and the prices and/or formulas utilized in calculating such payments, and (ii) provide sufficient monies to the Rights Agent in the form of fully collected funds to make such payments.

          Section 15.    Rights of Action. All rights of action in respect of this Plan, excepting the rights of action given to the Rights Agent under Section 18 hereof, are vested in the respective registered holders of the Right Certificates (and, prior to the Distribution Date, the registered holders of the Common Stock or Series A Preferred Stock); and any registered holder of any Right Certificate (or, prior to the Distribution Date, of the Common Stock or Series A Preferred Stock), without the consent of the Rights Agent or of the holder of any other Right Certificate (or, prior to the Distribution Date, of the Common Stock or Series A Preferred Stock), may, in such holder’s own behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, such holder’s right to exercise the Rights evidenced by such Right Certificate in the manner provided in such Right Certificate and in this Plan. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Plan, and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened violations of the obligations of any Person subject to, this Plan.

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         Section 16.    Plan of Right Holders. Every holder of a Right, by accepting the same, consents and agrees with the Company and the Rights Agent and with every other holder of a Right that:

         (a)    prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of the Common Stock or Series A Preferred Stock;

         (b)    after the Distribution Date, the Right Certificates are transferable only on the registry books of the Rights Agent if surrendered at the principal office of the Rights Agent, duly endorsed or accompanied by a proper instrument of transfer; and

         (c)    the Company and the Rights Agent may deem and treat the person in whose name the Right Certificate (or, prior to the Distribution Date, the associated Common Stock certificate or the associated Series A Preferred Stock certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Right Certificate,the associated Common Stock certificate, or the associated Series A Preferred Stock certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary.

         (d)    notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any holder of a Right or other Person as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree, judgment or ruling issued by any court of competent jurisdiction or by any governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority, prohibiting or otherwise restraining performance of such obligation; provided , however , that the Company shall use commercially reasonable efforts to have any such order, decree, judgment or ruling lifted or otherwise overturned as soon as possible.

         Section 17.    Right Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Right Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the Preferred Shares or any other securities of the Company which may at any time be issuable on the exercise of the Rights represented thereby, nor shall anything contained herein or in any Right Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in Section 25 hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Right Certificate shall have been exercised in accordance with the provisions hereof.

         Section 18.    Concerning the Rights Agent. The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder, and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other

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disbursements incurred in the administration and execution of this Plan and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, or expense incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent in connection with the acceptance and administration of this Plan, including the costs and expenses of defending against any claim of liability in the premises.

         The Rights Agent shall be protected and shall incur no liability for, or in respect of any action taken, suffered or omitted by it in connection with, its administration of this Plan in reliance upon any Right Certificate or certificate for the Preferred Shares or Common Stock or Series A Preferred Stock or for other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper person or persons, or otherwise upon the advice of counsel as set forth in Section 20 hereof.

         Section 19.    Merger or Consolidation or Change of Name of Rights Agent. Any corporation into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any corporation resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any corporation succeeding to the stock transfer or corporate trust powers of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Plan without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided that such corporation would be eligible for appointment as a successor Rights Agent under the provisions of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Plan, any of the Right Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right Certificates so countersigned; and, in case at that time any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and, in all such cases, such Right Certificates shall have the full force provided in the Right Certificates and in this Plan.

         In case at any time the name of the Rights Agent shall be changed and at such time any of the Right Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned; and, in case at that time any of the Right Certificates shall not have been countersigned, the Rights Agent may countersign such Right Certificates either in its prior name or in its changed name; and, in all such cases, such Right Certificates shall have the full force provided in the Right Certificates and in this Plan.

         Section 20.    Duties of Rights Agent. The Rights Agent undertakes the duties and obligations imposed by this Plan upon the following terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, shall be bound:

         (a)    The Rights Agent may consult with legal counsel (who may be legal counsel

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for the Company), and the opinion of such counsel shall be full and complete authorization and protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion.

         (b)    Whenever in the performance of its duties under this Plan the Rights Agent shall deem it necessary or desirable that any fact or matter (including, without limitation, the identity of any Acquiring Person and the determination of “current market price”) be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by any Authorized Officer and delivered to the Rights Agent; and such certificate shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Plan in reliance upon such certificate.

         (c)    The Rights Agent shall be liable hereunder to the Company and any other Person only for its own gross negligence, bad faith or willful misconduct.

         (d)    The Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Plan or in the Right Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by the Company only.

         (e)    The Rights Agent shall not be under any responsibility in respect of the validity of this Plan or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Plan or in any Right Certificate; nor shall it be responsible for any change in the exercisability of the Rights (including the Rights becoming void pursuant to Section 11(a)(ii) hereof) or any adjustment in the terms of the Rights (including the manner, method or amount thereof) provided for in Section 3, 11, 23 or 24 hereof, or the ascertaining of the existence of facts that would require any such change or adjustment (except with respect to the exercise of Rights evidenced by Right Certificates after actual notice that such change or adjustment is required); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any Preferred Shares to be issued pursuant to this Plan or any Right Certificate or as to whether any Preferred Shares will, when issued, be validly authorized and issued, fully paid and nonassessable.

         (f)    The Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Plan.

         (g)    The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any Authorized Officer, and to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable for any action taken or suffered by it in good faith in accordance with instructions of any such

22

officer or for any delay in acting while waiting for those instructions.

         (h)    The Rights Agent and any stockholder, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Rights Agent under this Plan. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other legal entity.

         (i)    The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct, provided that reasonable care was exercised in the selection and continued employment thereof.

         (j)    No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of its rights if there shall be reasonable grounds for believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it.

         (k)    If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate attached to the form of assignment or form of election to purchase, as the case may be, has either not been completed or indicates an affirmative response to clause 1 and/or 2 thereof, the Rights Agent shall not take any further action with respect to such requested exercise or transfer without first consulting with the Company.

         (l)    At any time and from time to time after the Distribution Date, upon the request of the Company, the Rights Agent shall deliver to the Company a list, as of the most recent practicable date (or as of such earlier date as may be specified by the Company), of the holders of record of the Rights.

         Section 21.    Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this Plan upon 30 days’ notice in writing mailed to the Company and to each transfer agent of the Common Stock, Series A Preferred Stock or Preferred Shares by registered or certified mail, in the event that the transfer agent is a Person other than the Rights Agent or one of the Rights Agent’s affiliates. In the event the transfer agency relationship in effect between the Company and the Rights Agent terminates, the Rights Agent will be deemed to have resigned automatically and be discharged from its duties under this Plan as of the effective date of such termination, and the Company shall be responsible for sending any required notice; provided, however, that the Rights Agent will provide assistance as reasonably requested by the Company in connection with the Company’s transition to a replacement rights agent. The Company may remove the Rights Agent or any successor Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Common Stock, Series A

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Preferred Stock or Preferred Shares by registered or certified mail, and to the holders of the Right Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of 30 days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate (which holder shall, with such notice, submit such holder’s Right Certificate for inspection by the Company), then the registered holder of any Right Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be a corporation or other entity organized and doing business under the laws of the United States or of the State of New York (or of any other state of the United States so long as such corporation or other entity is authorized to do business as a banking institution in the State of New York), in good standing, which is authorized under such laws to exercise corporate trust or stock transfer powers and is subject to supervision or examination by federal or state authority and which has individually or combined with an Affiliate at the time of its appointment as Rights Agent a combined capital and surplus of at least $50 million. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Common Stock, Series A Preferred Stock or Preferred Shares, and mail a notice thereof in writing to the registered holders of the Right Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be.

         Section 22.    Issuance of New Right Certificates. Notwithstanding any of the provisions of this Plan or of the Rights to the contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such form as may be approved by the Board of Directors of the Company to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or property purchasable under the Right Certificates made in accordance with the provisions of this Plan.

         Section 23.    Redemption. (a) The Board of Directors of the Company may, at its option, at any time prior to such time as any Person becomes an Acquiring Person, redeem all but not less than all the then outstanding Rights at a redemption price of $.001 per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such redemption price being hereinafter referred to as the “Redemption Price”). The redemption of the Rights by the Board of Directors of the Company may be made effective at such time, on such basis and with such conditions as the Board of Directors of the Company, in its sole discretion, may establish. The Company may, at its option, pay the Redemption Price in cash, shares of Common Stock (based on the current per share market price of the Common Stock at the time of redemption as determined pursuant to Section 11(d)(i) hereof) or any other form of consideration deemed appropriate by the Board.

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         (b)    Immediately upon the action of the Board of Directors of the Company ordering the redemption of the Rights pursuant to paragraph (a) of this Section 23, evidence of which shall have been filed with the Rights Agent, and without any further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. The Company shall promptly give public notice of any such redemption; provided, however, that the failure to give, or any defect in, any such notice shall not affect the validity of such redemption. Within 10 days after such action of the Board of Directors of the Company ordering the redemption of the Rights, the Company shall mail a notice of redemption to the Rights Agent and all the holders of the then outstanding Rights at their last addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Stock or Series A Preferred Stock. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in any manner other than that specifically set forth in this Section 23 or in Section 24 hereof, and other than in connection with the purchase of Common Stock or Series A Preferred Stock prior to the Distribution Date.

         (c)    In the case of a redemption under Section 23(a) hereof, the Company may, at its option, discharge all of its obligations with respect to the Rights by (i) issuing a press release announcing the manner of redemption of the Rights and (ii) mailing payment of the Redemption Price to the registered holders of the Rights at their last addresses as they appear on the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent of the Common Stock or Series A Preferred Stock, and upon such action, all outstanding Right Certificates shall be void without any further action by the Company.

         Section 24.    Exchange. (a) The Board of Directors of the Company may, at its option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then outstanding and exercisable Rights (which shall not include Rights that have become void pursuant to the provisions of Section 11(a)(ii) hereof) for Common Stock at an exchange ratio of one Common Share per Right, appropriately adjusted to reflect any adjustment in the number of Rights pursuant to Section 11(i) (such exchange ratio being hereinafter referred to as the “Exchange Ratio”).

         (b)    Immediately upon the action of the Board of Directors of the Company ordering the exchange of any Rights pursuant to paragraph (a) of this Section 24 and without any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that number of Common Stock equal to the number of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice (with prompt notice thereof to the Rights Agent) of any such exchange; provided, however, that the failure to give, or any defect in, such notice shall not affect the validity of such exchange. The Company promptly shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the

25

registry books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the Common Stock for Rights will be effected, and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become void pursuant to the provisions of Section 11(a)(ii) hereof) held by each holder of Rights.

         (c)    In the event that there shall not be sufficient Common Stock issued but not outstanding or authorized but unissued to permit any exchange of Rights as contemplated in accordance with this Section 24, the Company shall take all such action as may be necessary to authorize additional Common Stock for issuance upon exchange of the Rights. In the event the Company shall, after good faith effort, be unable to take all such action as may be necessary to authorize such additional Common Stock, the Company shall substitute, for each Common Share that would otherwise be issuable upon exchange of a Right, a number of Preferred Shares or fraction thereof such that the current per share market price of one Preferred Share multiplied by such number or fraction is equal to the current per share market price of one Common Share as of the date of issuance of such Preferred Shares or fraction thereof.

         (d)    The Company shall not be required to issue fractions of Common Stock or to distribute certificates representing fractions of shares of Common Stock. In lieu of such fractional Common Stock, the Company shall pay to the registered holders of the Right Certificates with regard to which such fractional Common Stock would otherwise be issuable an amount in cash equal to the same fraction of the current market value of a whole Common Share. For the purposes of this paragraph (d), the current market value of a whole Common Share shall be the closing price of a Common Share (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of exchange pursuant to this Section 24.

         Section 25.    Notice of Certain Events. (a) In case the Company shall, at any time after the Distribution Date, propose (i) to pay any dividend payable in stock of any class to the holders of the Preferred Shares or to make any other distribution to the holders of the Preferred Shares (other than a regular quarterly cash dividend), (ii) to offer to the holders of the Preferred Shares rights or warrants to subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any other securities, rights or options, (iii) to effect any reclassification of the Preferred Shares (other than a reclassification involving only the subdivision of outstanding Preferred Shares), (iv) to effect any consolidation or merger into or with, or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one or more transactions, of 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to, any other Person, (v) to effect the liquidation, dissolution or winding up of the Company, or (vi) to declare or pay any dividend on the Common Stock payable in Common Stock or to effect a subdivision, combination or consolidation of the Common Stock (by reclassification or otherwise than by payment of dividends in Common Stock), then, in each such case, the Company shall give to each holder of a Right Certificate, in accordance with Section 26 hereof, a notice of such proposed action, which shall specify the record date for the purposes of such stock dividend, or distribution of

26

rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the date of participation therein by the holders of the Common Stock, Series A Preferred Stock and/or Preferred Shares, if any such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least 10 days prior to the record date for determining holders of the Preferred Shares for purposes of such action, and, in the case of any such other action, at least 10 days prior to the date of the taking of such proposed action or the date of participation therein by the holders of the Common Stock, Series A Preferred Stock and/or Preferred Shares, whichever shall be the earlier.

         (b)    In case the event set forth in Section 11(a)(ii) hereof shall occur, then the Company shall, as soon as practicable thereafter, give to each holder of a Right Certificate, in accordance with Section 26 hereof, a notice of the occurrence of such event, which notice shall describe such event and the consequences of such event to holders of Rights under Section 11(a)(ii) hereof.

         Section 26.    Notices. Notices or demands authorized by this Plan to be given or made by the Rights Agent or by the holder of any Right Certificate to or on the Company shall be sufficiently given or made if sent by overnight delivery service or first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows:

                          Century Aluminum Company

                          2511 Garden Road 

                          Building A, Suite 200 

                          Monterey, California 93940

                          Attention: General Counsel

Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Plan to be given or made by the Company or by the holder of any Right Certificate to or on the Rights Agent shall be sufficiently given or made if sent by overnight delivery service or first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows: 

                          Computershare Trust Company, N.A.

                          350 Indiana Street, Suite 750 

                          Golden, Colorado 80401 

                          Attention: Client Services

Notices or demands authorized by this Plan to be given or made by the Company or the Rights Agent to the holder of any Right Certificate shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company.

         Section 27.    Supplements and Amendments. The Company may from time to time supplement or amend this Plan without the approval of any holders of Right Certificates in order to cure any ambiguity, to correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, to shorten or lengthen any time period hereunder, or to amend or make any other provisions with respect to the Rights which the

27

Company may deem necessary or desirable, any such supplement or amendment to be evidenced by a writing signed by the Company and the Rights Agent; provided, however, that, from and after such time as any Person becomes an Acquiring Person and does not become an Exempt Person prior to the Distribution Date, this Plan shall not be amended in any manner which would adversely affect the interests of the holders of Rights (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person). Upon the delivery of a certificate from an appropriate officer of the Company which states that the supplement or amendment is in compliance with the terms of this Section 27, the Rights Agent shall promptly execute such supplement or amendment, provided that any supplement or amendment does not adversely affect the rights, duties or obligations of the Rights Agent under this Plan. The Rights Agent hereby acknowledges that in all matters arising under this Plan, including any amendment hereto pursuant to this Section 27, time is of the essence.

         Section 28.    Successors. All the covenants and provisions of this Plan by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder.

         Section 29.    Benefits of this Plan. Nothing in this Plan shall be construed to give to any Person other than the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Stock or Series A Preferred Stock) any legal or equitable right, remedy or claim under this Plan; but this Plan shall be for the sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Stock or Series A Preferred Stock).

         Section 30.    Severability. If any term, provision, covenant or restriction of this Plan is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Plan shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

         Section 31.    Governing Law. This Plan and each Right Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such state applicable to contracts to be made and performed entirely within such state.

         Section 32.    Counterparts. This Plan may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. A signature to this Plan transmitted electronically shall have the same authority, effect, and enforceability as an original signature.

         Section 33.    Descriptive Headings. Descriptive headings of the several Sections of this Plan are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.

         Section 34.    Determinations and Actions by the Board. For all purposes of this Plan, any calculation of the number of Common Stock outstanding at any particular time,

28

including for purposes of determining the particular percentage of such outstanding Common Stock of which any Person is the Beneficial Owner, will be made in accordance with, as the Board of Directors deems to be applicable, the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act or the provisions of Section 382. The Board of Directors of the Company will have the exclusive power and authority to administer this Plan and to exercise all rights and powers specifically granted to the Board of Directors of the Company or to the Company, or as may be necessary or advisable in the administration of this Plan, including without limitation the right and power to (i) interpret the provisions of this Plan (including without limitation Section 27, this Section 34 and other provisions hereof relating to its powers or authority hereunder) and (ii) make all determinations deemed necessary or advisable for the administration of this Plan (including without limitation any determination contemplated by Section 1(a) or any determination as to whether particular Rights shall have become void). All such actions, calculations, interpretations and determinations (including, for purposes of clause (y) below, any omission with respect to any of the foregoing) which are done or made by the Board of Directors of the Company in good faith will (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other parties and (y) not subject the Board of Directors of the Company to any liability to any Person, including without limitation the Rights Agent and the holders of the Rights.

         Section 35.    Process to Seek Exemption. Any Person who desires to effect any acquisition of Common Stock that would, if consummated, result in such Person (together with its Affiliates and Associates) beneficially owning 4.9% or more of the then-outstanding Common Stock (or, in the case of an Existing Holder, additional shares of Common Stock representing 1.0% or more of the then-outstanding Common Stock) (a “Requesting Person”) may, prior to the acquisition of the Common Stock and in accordance with this Section 35, request that the Board grant an exemption with respect to such acquisition under this Plan so that such acquisition would be deemed to be an “Exempt Transaction” for purposes of this Plan (an “Exemption Request"). An Exemption Request shall be in proper form and shall be delivered by registered mail, return receipt requested, to the Secretary of the Company at the principal executive office of the Company. To be in proper form, an Exemption Request shall set forth (i) the name and address of the Requesting Person, (ii) the number and percentage of shares of Common Stock then beneficially owned by the Requesting Person, together with all Affiliates and Associates of the Requesting Person, and (iii) a reasonably detailed description of the transaction or transactions by which the Requesting Person would propose to acquire Beneficial Ownership of Common Stock aggregating 4.9% or more of the then outstanding Common Stock (or, in the case of an Existing Holder, additional shares of Common Stock representing 1.0% or more of the then-outstanding Common Stock) and the maximum number and percentage of shares of Common Stock that the Requesting Person proposes to acquire. The Board shall make a determination whether to grant an exemption in response to an Exemption Request as promptly as practicable (and, in any event, within ten (10) Business Days) after receipt thereof; provided, that the failure of the Board to make a determination within such period shall be deemed to constitute the denial by the Board of the Exemption Request. Any exemption granted hereunder may be granted in whole or in part, and may be subject to limitations or conditions (including a requirement that the Requesting Person agree that it will not acquire Beneficial Ownership of shares of Common Stock in excess of the maximum number and percentage of shares approved by the Board), in each case as and to the extent the Board shall determine necessary or desirable.

29

Any Exemption Request may be submitted on a confidential basis and, except to the extent required by applicable law, the Company shall maintain the confidentiality of such Exemption Request and the Board's determination with respect thereto.

         Section 36.     Force Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be liable for any delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruption or malfunction of computer facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest.

 

 

 

 

 

 

 

 

 

 

30

     IN WITNESS WHEREOF, the parties hereto have caused this Plan to be duly executed and attested, all as of the day and year first above written.

		
	Attest: 	Century Aluminum Company 
	 
	 
	By  /s/ Virginia Mutoza                               	By  /s/ William J. Leatherberry             
	             Name: Virginia Mutoza

             Title: Senior Paralegal	             Name: William J. Leatherberry

             Title: Senior Vice President

	 
	 
	 
	Attest: 	Computershare Trust Company, N.A. 
	 
	By  /s/ John M. Wahl                             	By  /s/ Kellie Gwinn                              
	             Name: John M. Wahl

             Title: Corporate Trust Officer	             Name: Kellie Gwinn

             Title: Vice President

 

31

 

Exhibit A

FORM

of

CERTIFICATE OF DESIGNATIONS

of

SERIES B JUNIOR PARTICIPATING PREFERRED STOCK

of

Century Aluminum Company

(Pursuant to Section 151 of the

Delaware General Corporation Law)

         Century Aluminum Company, a corporation organized and existing under the General Corporation Law of the State of Delaware (hereinafter called the “Corporation”), hereby certifies that the following resolution was adopted by the Board of Directors of the Corporation as required by Section 151 of the General Corporation Law at a meeting duly called and held on September 29, 2009:

         RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors of this Corporation (hereinafter called the “Board of Directors” or the “Board”) in accordance with the provisions of the Certificate of Incorporation, the Board of Directors hereby creates a series of Preferred Stock, par value $0.01 per share, of the Corporation (the “Preferred Stock”), and hereby states the designation and number of shares, and fixes the relative rights, preferences, and limitations thereof as follows:

         Series B Junior Participating Preferred Stock:

         Section 1.    Designation and Amount. The shares of such series shall be designated as “Series B Junior Participating Preferred Stock” (the “Series B Preferred Stock”) and the number of shares constituting the Series B Preferred Stock shall be 2,200,000. Such number of shares may be increased or decreased by resolution of the Board of Directors; provided, that no decrease shall reduce the number of shares of Series B Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by the Corporation convertible into Series B Preferred Stock.

         Section 2.    Dividends and Distributions.

32

         (A)    Subject to the rights of the holders of any shares of any series of Preferred Stock (or any similar stock) ranking prior and superior to the Series B Preferred Stock with respect to dividends, the holders of shares of Series B Preferred Stock shall be entitled to receive, when, as and if declared by the Board of Directors out of funds legally available for the purpose, quarterly dividends payable in cash on the first day of March, June, September and December in each year (each such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series B Preferred Stock, in an amount per share (rounded to the nearest cent), subject to the provision for adjustment hereinafter set forth, equal to 100 times the aggregate per share amount of all cash dividends, and 100 times the aggregate per share amount (payable in kind) of all non-cash dividends or other distributions, declared on the Common Stock, par value $0.01 per share (the “Common Stock”), of the Corporation since the immediately preceding Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Series B Preferred Stock, other than, in each case, a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise). In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount to which holders of shares of Series B Preferred Stock were entitled immediately prior to such event under the preceding sentence shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

     (B)    The Corporation shall declare a dividend or distribution on the Series B Preferred Stock as provided in paragraph (A) of this Section immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock).

     (C)    Dividends, to the extent payable as provided in paragraphs (A) and (B) of this Section, shall begin to accrue and be cumulative on outstanding shares of Series B Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series B Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Series B Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series B Preferred Stock entitled to receive payment of a dividend or

33

distribution declared thereon, which record date shall be not more than 60 days prior to the date fixed for the payment thereof.

         Section 3. Voting Rights. The holders of shares of Series B Preferred Stock shall have the following voting rights:

         (A) Subject to the provision for adjustment hereinafter set forth, each share of Series B Preferred Stock shall entitle the holder thereof to 100 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the number of votes per share to which holders of shares of Series B Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

     (B) Except as otherwise provided herein, in any other Certificate of Designations creating a series of Preferred Stock or any similar stock, or by law, the holders of shares of Series B Preferred Stock and the holders of shares of Common Stock and the holders of Series A Preferred Stock and any other capital stock of the Corporation having general voting rights shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation.

     (C) Except as set forth herein, or as otherwise provided by law, holders of Series B Preferred Stock shall have no special voting rights and their consent shall not be required (except to the extent they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action.

         Section 4. Certain Restrictions.

    (A) Whenever quarterly dividends or other dividends or distributions payable on the Series B Preferred Stock as provided in Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series B Preferred Stock outstanding shall have been paid in full, the Corporation shall not:

     (i) declare or pay dividends, or make any other distributions, on any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series B Preferred Stock;

     (ii) declare or pay dividends, or make any other distributions, on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series B Preferred Stock, except dividends paid ratably on the Series B Preferred Stock and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are

34

then entitled;

     (iii)     redeem or purchase or otherwise acquire for consideration shares of any stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series B Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such junior stock in exchange for shares of any stock of the Corporation ranking junior (either as to dividends or upon dissolution, liquidation or winding up) to the Series B Preferred Stock; or

     (iv)     redeem or purchase or otherwise acquire for consideration any shares of Series B Preferred Stock, or any shares of stock ranking on a parity with the Series B Preferred Stock, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such terms as the Board of Directors, after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or classes.

     (B)     The Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any shares of stock of the Corporation unless the Corporation could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner.

         Section 5. Reacquired Shares. Any shares of Series B Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock subject to the conditions and restrictions on issuance set forth herein, in the Certificate of Incorporation, or in any other Certificate of Designations creating a series of Preferred Stock or any similar stock or as otherwise required by law.

         Section 6.     Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution or winding up of the Corporation, no distribution shall be made (1) to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series B Preferred Stock unless, prior thereto, the holders of shares of Series B Preferred Stock shall have received $100 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of such payment, provided that the holders of shares of Series B Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal to 100 times the aggregate amount to be distributed per share to holders of shares of Common Stock, or (2) to the holders of shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series B Preferred Stock, except distributions made ratably on the Series B Preferred Stock and all such parity stock in proportion to the total amounts to which the holders of all such shares are entitled upon such liquidation, dissolution or winding up. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of

35

the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the aggregate amount to which holders of shares of Series B Preferred Stock were entitled immediately prior to such event under the proviso in clause (1) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

         Section 7.    Consolidation, Merger, etc. In case the Corporation shall enter into any consolidation, merger, combination, conversion, share exchange or other transaction in which the shares of Common Stock are exchanged for or changed into other stock, a member’s interest, a partnership interest, a beneficial interest in a trust or other owner’s interest, or securities, cash and/or any other property, then in any such case each share of Series B Preferred Stock shall at the same time be similarly exchanged or changed into an amount per share, subject to the provision for adjustment hereinafter set forth, equal to 100 times the aggregate amount of stock, a member’s interest, a partnership interest, a beneficial interest in a trust or other owner’s interest, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series B Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

         Section 8.    No Redemption. The shares of Series B Preferred Stock shall not be redeemable.

         Section 9.    Rank. The Series B Preferred Stock shall rank, with respect to the payment of dividends and the distribution of assets, junior to all series of any other class of the Corporation’s Preferred Stock.

         Section 10.    Amendment. The Certificate of Incorporation of the Corporation shall not be amended in any manner which would materially alter or change the powers, preferences or special rights of the Series B Preferred Stock so as to affect them adversely without the affirmative vote of the holders of at least two-thirds of the outstanding shares of Series B Preferred Stock, voting together as a single class.

36

         IN WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the Corporation by a duly authorized officer and attested by its Secretary this 29th day of September, 2009.

	Attest: 	Century Aluminum Company 
	 
	 
	 	By 
	 	             Name: 
	 	             Title 

 

 

37

 

Exhibit B

		
	Form of Right Certificate 
	Certificate No. R- 	Rights 
	 
	 
	
NOT EXERCISABLE AFTER AUGUST 1, 2011 OR EARLIER

IF REDEMPTION OR EXCHANGE OCCURS OR AS OTHER-

WISE SPECIFICED IN THE AGREEMENT. THE RIGHTS ARE

SUBJECT TO REDEMPTION AT $.01 PER RIGHT AND TO EX-

CHANGE ON THE TERMS SET FORTH IN THE AGREEMENT.

Right Certificate

CENTURY ALUMINUM COMPANY

          This certifies that ___________, or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions and conditions of the Plan, dated as of September 29, 2009 (the “Plan”), between Century Aluminum Company, a Delaware corporation (the “Company”), and Computershare Trust Company, N.A. (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Plan) and prior to 5:00 P.M., New York City time, on August 1, 2011 (or earlier as specified in the Plan) at the principal office of the Rights Agent, or at the office of its successor as Rights Agent, one one-hundredth of a fully paid non-assessable share of Series B Junior Participating Preferred Stock, par value $0.01 per share, of the Company (the “Preferred Shares”), at a purchase price of $80.00 per one one-hundredth of a Preferred Share (the “Purchase Price”), upon presentation and surrender of this Right Certificate with the Form of Election to Purchase duly executed. The number of Rights evidenced by this Right Certificate (and the number of one one-hundredths of a Preferred Share which may be purchased upon exercise hereof) set forth above, and the Purchase Price set forth above, are the number and Purchase Price as of September 29, 2009, based on the Preferred Shares as constituted at such date. As provided in the Plan, the Purchase Price and the number of one one-hundredths of a Preferred Share which may be purchased upon the exercise of the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the happening of certain events.

          This Right Certificate is subject to all of the terms, provisions and conditions of the Plan, which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which Plan reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Right Certificates. Copies of the Plan are on file at the principal executive offices of the Company and the offices of the Rights Agent.

          This Right Certificate, with or without other Right Certificates, upon surrender at the principal office of the Rights Agent, may be exchanged for another Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like

38

aggregate number of Preferred Shares as the Rights evidenced by the Right Certificate or Right Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Right Certificate or Right Certificates for the number of whole Rights not exercised.

          Subject to the provisions of the Plan, the Rights evidenced by this Right Certificate (i) may be redeemed by the Company at a redemption price of $.001 per Right or (ii) may be exchanged in whole or in part for Preferred Shares or shares of the Company’s Common Stock, par value $0.01 per share.

          No fractional Preferred Shares will be issued upon the exercise of any Right or Rights evidenced hereby (other than fractions which are integral multiples of one one-hundredth of a Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts), but, in lieu thereof, a cash payment will be made, as provided in the Plan.

          No holder of this Right Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred Shares or of any other securities of the Company which may at any time be issuable on the exercise hereof, nor shall anything contained in the Plan or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the Plan), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided in the Plan.

          This Right Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned manually or by facsimile by the Rights Agent.

          WITNESS the facsimile signature of the proper officers of the Company and its corporate seal. Dated as of ____, ___.

	ATTEST: 	CENTURY ALUMINUM COMPANY 
	 
	_____________	By _____________
	Name: 	             Name: 
	Title: 	             Title: 
	Countersigned: 	 
	 
	 
	COMPUTERSHARE TRUST 	 
	COMPANY, N.A. 	 
	 
	By _____________ 	 
	       Name: 	 
	       Title: 	 

39

Form of Reverse Side of Right Certificate

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder desires to transfer the Right Certificate.)

     FOR VALUE RECEIVED                                    hereby sells, assigns and transfers unto

(Please print name and address of transferee)

this Right Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint                                    Attorney, to transfer the within Right Certificate on the books of the within-named Company, with full power of substitution.

Dated:                                      

Signature

Signature Medallion Guaranteed:

         All Guarantees must be made by a financial institution (such as a bank or broker) which is a participant in the Securities Transfer Agents Medallion Program (“STAMP”), the NASDAQ, Inc. Medallion Signature Program (“MSP”), or the Stock Exchanges Medallion Program (“SEMP”) and must not be dated. Guarantees by a notary public are not acceptable.

         The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as defined in the Plan).

Signature

Form of Reverse Side of Right Certificate – continued

 

 

40

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to exercise

Rights represented by the Right Certificate.)

To: CENTURY ALUMINUM COMPANY

                  The undersigned hereby irrevocably elects to exercise                                       Rights represented by this Right Certificate to purchase the Preferred Shares issuable upon the exercise of such Rights and requests that certificates for such Preferred Shares be issued in the name of:

Please insert social security

 or other identifying number

(Please print name and address)

If such number of Rights shall not be all the Rights evidenced by this Right Certificate, a new Right Certificate for the balance remaining of such Rights shall be registered in the name of and delivered to:

Please insert social security 

 or other identifying number

(Please print name and address)

Dated:                                      

Signature

Signature Medallion Guaranteed:

                  All Guarantees must be made by a financial institution (such as a bank or broker) which is a participant in the Securities Transfer Agents Medallion Program (“STAMP”), the NASDAQ, Inc. Medallion Signature Program (“MSP”), or the Stock Exchanges Medallion Program (“SEMP”) and must not be dated. Guarantees by a notary public are not acceptable.

                  The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as defined in the Plan).

 

                                                                                                                                       __________________________

                                                                                                                                       Signature

 

41

NOTICE

                  The signature in the Form of Assignment or Form of Election to Purchase, as the case may be, must conform to the name as written upon the face of this Right Certificate in every particular, without alteration or enlargement or any change whatsoever.

                  In the event the certification set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, the Company and the Rights Agent will deem the beneficial owner of the Rights evidenced by this Right Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as defined in the Plan) and such Assignment or Election to Purchase will not be honored.

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Exhibit C

SUMMARY OF RIGHTS TO PURCHASE

PREFERRED SHARES

Introduction

                  Our Company, Century Aluminum Company, a Delaware corporation, has entered into a Tax Benefit Preservation Plan with Computershare Trust Company, N.A., as Rights Agent, dated as of September 29, 2009 (the “Plan”). Our Board of Directors (the “Board”) approved the Plan in an effort to deter acquisitions of our common stock that would potentially limit our ability to use our built in losses and any resulting net loss carryforwards to reduce potential future federal income tax obligations.

                  Under the Plan, from and after the record date of October 9, 2009, each share of our common stock will carry with it one preferred share purchase right (a “Right”) and each share of Series A Preferred Stock will carry with it one hundred Rights, until the Distribution Date or earlier expiration of the Rights, as described below. In general terms, the Rights will work to impose a significant penalty upon any person or group which acquires 4.9% or more of our outstanding common stock after September 29, 2009, without the approval of our Board. Stockholders who own 4.9% or more of the outstanding common stock as of the close of business on September 29, 2009, will not trigger the Rights so long as they do not (i) acquire additional shares of common stock representing one percent (1.0%) or more of the shares of common stock then outstanding or (ii) fall under 4.9% ownership of common stock and then reacquire shares that in the aggregate equal 4.9% or more of the common stock. The Board may, in its sole discretion, exempt any person or group for purposes of the Plan if it determines the acquisition by such person or group will not jeopardize tax benefits or is otherwise in the Company’s best interests. The Plan is not expected to interfere with any merger or other business combination approved by our Board.

                  For those interested in the specific terms of the Plan, we provide the following summary description. Please note, however, that this description is only a summary, and is not complete, and should be read together with the entire Plan, which has been filed with the Securities and Exchange Commission as an exhibit to our Current Report on Form 8-K, dated September 29, 2009. A copy of the agreement is available free of charge from our Company.

The Rights. From the record date of October 9, 2009, until the Distribution Date or earlier expiration of the Rights, the Rights will trade with, and will be inseparable from, the common stock and the Series A Preferred Stock, as applicable. New Rights will also accompany any new shares of Common Stock or Series A Preferred Stock that we issue after September 29, 2009, until the Distribution Date or earlier expiration of the Rights.

Exercise Price. Each Right will allow its holder to purchase from our Company one one-hundredth of a share of Series B Junior Participating Preferred Stock (“Preferred Share”) for $80.00, subject to adjustment (the “Exercise Price”), once the Rights become exercisable. This portion of a Preferred Share will give the stockholder approximately the same dividend, voting,

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and liquidation rights as would one share of common stock. Prior to exercise, the Right does not give its holder any dividend, voting, or liquidation rights.

Exercisability. The Rights will not be exercisable until 10 days after the public announcement that a person or group has become an “Acquiring Person” by obtaining beneficial ownership, after September 29, 2009, of 4.9% or more of our outstanding common stock (or if already the beneficial owner of at least 4.9% of our outstanding common stock, by acquiring additional shares of our common stock representing one percent (1.0%) or more of the shares of common stock then outstanding), unless exempted by the Board.

                  We refer to the date when the Rights become exercisable as the “Distribution Date.” Until that date or earlier expiration of the Rights, the common stock certificates and Series A Preferred Stock certificates will also evidence the Rights, and any transfer of shares of common stock or Series A Preferred Stock will constitute a transfer of Rights. After that date, the Rights will separate from the common stock and be evidenced by book-entry credits or by Rights certificates that we will mail to all eligible holders of common stock. Any Rights held by an Acquiring Person are void and may not be exercised.

Consequences of a Person or Group Becoming an Acquiring Person. If a person or group becomes an Acquiring Person, all holders of Rights except the Acquiring Person may, for payment of the Exercise Price, purchase shares of our common stock with a market value of twice the Exercise Price, based on the market price of the common stock as of the acquisition that resulted in such person or group becoming an Acquiring Person.

Exchange. After a person or group becomes an Acquiring Person, our Board may extinguish the Rights by exchanging one share of common stock or an equivalent security for each Right, other than Rights held by the Acquiring Person.

Preferred Share Provisions. Each one one-hundredth of a Preferred Share, if issued:

    -    will not be redeemable.

    -    will entitle holders to dividends equal to the dividends, if any, paid on one share of common stock.

    -    will entitle holders upon liquidation either to receive $1 per share or an amount equal to the payment made on one share of common stock, whichever is greater.

    -    will have the same voting power as one share of common stock.

    -    will entitle holders to a per share payment equal to the payment made on one share of common stock, if shares of our common stock are exchanged via merger, consolidation, or a similar transaction.

The value of one one-hundredth interest in a Preferred Share is expected to approximate the value of one share of common stock.

Expiration. The Rights will expire on the earliest of (i) August 1, 2011, (ii) the time at which the Rights are redeemed, (iii) the time at which the Rights are exchanged, (iv) the repeal of Section 382 or any successor statute, or any other change, if the Board determines that this Plan is no longer necessary for the preservation of tax benefits, (v) the beginning of a taxable year of the

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Company to which the Board determines that no tax benefits may be carried forward, (vi) September 29, 2010 if approval of the Plan by a majority of our stockholders has not been obtained prior to such date, or (vii) a determination by the Board, prior to the time any person or group becomes an Acquiring Person, that the Plan and the Rights are no longer in the best interests of the Company and its stockholders.

Redemption. Our Board may redeem the Rights for $.001 per Right at any time before any person or group becomes an Acquiring Person. If our Board redeems any Rights, it must redeem all of the Rights. Once the Rights are redeemed, the only right of the holders of Rights will be to receive the redemption price of $.001 per Right. The redemption price will be adjusted if we have a stock split or stock dividends of our common stock.

Anti-Dilution Provisions. Our Board may adjust the Exercise Price, the number of Preferred Shares issuable and the number of outstanding Rights to prevent dilution that may occur from a stock dividend, a stock split, or a reclassification of the Preferred Shares or common stock.

Amendments. The terms of the Plan may be amended by our Board without the consent of the holders of the Rights. After a person or group becomes an Acquiring Person and does not become an exempt person prior to the Distribution Date, our Board may not amend the agreement in a way that adversely affects holders of the Rights (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person).

 

 

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