Document:

Exhibit 4.1

 

HUNTSMAN INTERNATIONAL LLC

 

INDENTURE

 

Dated as of

 

WILMINGTON TRUST, NATIONAL ASSOCIATION

 

Trustee

 

 

Reconciliation and tie between Trust Indenture Act of 1939 and certain sections of this Indenture

 

	
Trust Indenture
   Act Section
    	
 
    	
Indenture Section
    
	
§310
    	
 
    	
(a)
    	
 
    	
11.04(a), 16.02
    
	
 
    	
 
    	
(b)
    	
 
    	
11.01(f), 11.04(b), 11.05(1), 16.02
    
	
 
    	
 
    	
(b)(1)
    	
 
    	
11.04(b), 16.02
    
	
§311
    	
 
    	
 
    	
 
    	
11.01(f), 16.02
    
	
§312
    	
 
    	
 
    	
 
    	
14.02(d), 16.02
    
	
 
    	
 
    	
(b)
    	
 
    	
11.10, 16.02
    
	
 
    	
 
    	
(c)
    	
 
    	
11.10, 16.02
    
	
§313
    	
 
    	
(a)
    	
 
    	
10.01(a), 16.02
    
	
§314
    	
 
    	
 
    	
 
    	
16.02
    
	
§315
    	
 
    	
(e)
    	
 
    	
11.05, 16.02
    
	
§316
    	
 
    	
 
    	
 
    	
16.02
    
	
§317
    	
 
    	
 
    	
 
    	
16.02
    
	
§317
    	
 
    	
 
    	
 
    	
16.02
    

 

Note: This reconciliation and tie shall not, for any purpose, be deemed to be part of the Indenture.

 

 

Table of Contents*

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I DEFINITIONS
    	
1
    
	
Section 1.01
    	
DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II FORMS OF SECURITIES
    	
7
    
	
Section 2.01
    	
TERMS OF THE SECURITIES
    	
7
    
	
Section 2.02
    	
FORM OF TRUSTEE’S   CERTIFICATE OF AUTHENTICATION
    	
8
    
	
Section 2.03
    	
FORM OF TRUSTEE’S   CERTIFICATE OF AUTHENTICATION BY AN AUTHENTICATING AGENT
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE III THE DEBT SECURITIES
    	
9
    
	
Section 3.01
    	
AMOUNT UNLIMITED;   ISSUABLE IN SERIES
    	
9
    
	
Section 3.02
    	
DENOMINATIONS
    	
11
    
	
Section 3.03
    	
EXECUTION,   AUTHENTICATION, DELIVERY AND DATING
    	
11
    
	
Section 3.04
    	
TEMPORARY SECURITIES
    	
14
    
	
Section 3.05
    	
REGISTRAR AND PAYING   AGENT
    	
14
    
	
Section 3.06
    	
TRANSFER AND EXCHANGE
    	
15
    
	
Section 3.07
    	
MUTILATED, DESTROYED,   LOST AND STOLEN SECURITIES
    	
18
    
	
Section 3.08
    	
PAYMENT OF INTEREST;   INTEREST RIGHTS PRESERVED
    	
19
    
	
Section 3.09
    	
CANCELLATION
    	
20
    
	
Section 3.10
    	
COMPUTATION OF INTEREST
    	
20
    
	
Section 3.11
    	
CURRENCY OF PAYMENTS IN   RESPECT OF SECURITIES
    	
20
    
	
Section 3.12
    	
JUDGMENTS
    	
21
    
	
Section 3.13
    	
CUSIP NUMBERS
    	
21
    
	
 
    	
 
    	
 
    
	
ARTICLE IV REDEMPTION OF SECURITIES
    	
21
    
	
Section 4.01
    	
NOTICE TO TRUSTEE
    	
21
    
	
Section 4.02
    	
SELECTION OF SECURITIES   TO BE REDEEMED
    	
21
    
	
Section 4.03
    	
NOTICE OF REDEMPTION
    	
22
    
	
Section 4.04
    	
EFFECT OF NOTICE OF   REDEMPTION
    	
23
    
	
Section 4.05
    	
DEPOSIT OF REDEMPTION   PRICE
    	
23
    
	
Section 4.06
    	
SECURITIES REDEEMED IN   PART
    	
23
    
	
 
    	
 
    	
 
    
	
ARTICLE V SINKING FUNDS
    	
23
    
	
Section 5.01
    	
APPLICABILITY OF   SINKING FUND
    	
23
    
	
Section 5.02
    	
MANDATORY SINKING FUND   OBLIGATION
    	
23
    
	
Section 5.03
    	
OPTIONAL REDEMPTION AT   SINKING FUND REDEMPTION PRICE
    	
24
    
	
Section 5.04
    	
APPLICATION OF SINKING   FUND PAYMENT
    	
24
    
	
 
    	
 
    	
 
    
	
ARTICLE VI PARTICULAR COVENANTS OF THE   COMPANY
    	
25
    
	
Section 6.01
    	
PAYMENTS OF SECURITIES
    	
25
    
	
Section 6.02
    	
PAYING AGENT
    	
25
    
	
Section 6.03
    	
TO HOLD PAYMENT IN   TRUST
    	
25
    
	
Section 6.04
    	
MERGER, CONSOLIDATION   AND SALE OF ASSETS
    	
27
    
	
Section 6.05
    	
COMPLIANCE CERTIFICATE
    	
27
    
	
Section 6.06
    	
CONDITIONAL WAIVER BY   HOLDERS OF SECURITIES
    	
27
    
	
Section 6.07
    	
STATEMENT AS TO DEFAULT
    	
28
    

 

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ARTICLE VII REMEDIES OF TRUSTEE AND   SECURITYHOLDERS
    	
28
    
	
Section 7.01
    	
EVENTS OF DEFAULT
    	
28
    
	
Section 7.02
    	
ACCELERATION;   RESCISSION AND ANNULMENT
    	
29
    
	
Section 7.03
    	
OTHER REMEDIES
    	
30
    
	
Section 7.04
    	
TRUSTEE AS   ATTORNEY-IN-FACT
    	
31
    
	
Section 7.05
    	
PRIORITIES
    	
31
    
	
Section 7.06
    	
CONTROL BY   SECURITYHOLDERS; WAIVER OF PAST DEFAULTS
    	
32
    
	
Section 7.07
    	
LIMITATION ON SUITS
    	
32
    
	
Section 7.08
    	
UNDERTAKING FOR COSTS
    	
33
    
	
Section 7.09
    	
REMEDIES CUMULATIVE
    	
33
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII CONCERNING THE SECURITYHOLDERS
    	
34
    
	
Section 8.01
    	
EVIDENCE OF ACTION OF   SECURITYHOLDERS
    	
34
    
	
Section 8.02
    	
PROOF OF EXECUTION OR   HOLDING OF SECURITIES
    	
34
    
	
Section 8.03
    	
PERSONS DEEMED OWNERS
    	
34
    
	
Section 8.04
    	
EFFECT OF CONSENTS
    	
35
    
	
 
    	
 
    	
 
    
	
ARTICLE IX SECURITYHOLDERS’ MEETINGS
    	
35
    
	
Section 9.01
    	
PURPOSES OF MEETINGS
    	
35
    
	
Section 9.02
    	
CALL OF MEETINGS BY   TRUSTEE
    	
35
    
	
Section 9.03
    	
CALL OF MEETINGS BY   COMPANY OR SECURITYHOLDERS
    	
36
    
	
Section 9.04
    	
QUALIFICATIONS FOR   VOTING
    	
36
    
	
Section 9.05
    	
REGULATION OF MEETINGS
    	
36
    
	
Section 9.06
    	
VOTING
    	
36
    
	
Section 9.07
    	
NO DELAY OF RIGHTS BY   MEETING
    	
37
    
	
 
    	
 
    	
 
    
	
ARTICLE X REPORTS BY THE COMPANY AND THE TRUSTEE   AND SECURITYHOLDERS’ LISTS
    	
37
    
	
Section 10.01
    	
REPORTS BY TRUSTEE
    	
37
    
	
Section 10.02
    	
REPORTS BY THE COMPANY
    	
37
    
	
Section 10.03
    	
SECURITYHOLDERS’ LISTS
    	
38
    
	
 
    	
 
    	
 
    
	
ARTICLE XI CONCERNING THE TRUSTEE
    	
38
    
	
Section 11.01
    	
RIGHTS OF TRUSTEES;   COMPENSATION AND INDEMNITY
    	
38
    
	
Section 11.02
    	
DUTIES OF TRUSTEE
    	
41
    
	
Section 11.03
    	
NOTICE OF DEFAULTS
    	
42
    
	
Section 11.04
    	
ELIGIBILITY;   DISQUALIFICATION
    	
42
    
	
Section 11.05
    	
RESIGNATION AND NOTICE;   REMOVAL
    	
42
    
	
Section 11.06
    	
SUCCESSOR TRUSTEE BY   APPOINTMENT
    	
43
    
	
Section 11.07
    	
SUCCESSOR TRUSTEE BY   MERGER
    	
44
    
	
Section 11.08
    	
RIGHT TO RELY ON   OFFICER’S CERTIFICATE
    	
45
    
	
Section 11.09
    	
APPOINTMENT OF   AUTHENTICATING AGENT
    	
45
    
	
Section 11.10
    	
COMMUNICATIONS BY   SECURITYHOLDERS WITH OTHER SECURITYHOLDERS
    	
46
    
	
 
    	
 
    	
 
    
	
ARTICLE XII SATISFACTION AND DISCHARGE;   DEFEASANCE
    	
46
    
	
Section 12.01
    	
APPLICABILITY OF   ARTICLE
    	
46
    
	
Section 12.02
    	
SATISFACTION AND   DISCHARGE OF INDENTURE
    	
46
    
	
Section 12.03
    	
DEFEASANCE UPON DEPOSIT   OF MONEYS OR U.S. GOVERNMENT OBLIGATIONS
    	
47
    

 

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Section 12.04
    	
REPAYMENT TO COMPANY
    	
48
    
	
Section 12.05
    	
INDEMNITY FOR U.S.   GOVERNMENT OBLIGATIONS
    	
48
    
	
Section 12.06
    	
DEPOSITS TO BE HELD IN   ESCROW
    	
48
    
	
Section 12.07
    	
APPLICATION OF TRUST   MONEY
    	
49
    
	
Section 12.08
    	
DEPOSITS OF NON-US CURRENCIES
    	
49
    
	
 
    	
 
    	
 
    
	
ARTICLE XIII IMMUNITY OF CERTAIN PERSONS
    	
50
    
	
Section 13.01
    	
NO PERSONAL LIABILITY
    	
50
    
	
 
    	
 
    	
 
    
	
ARTICLE XIV SUPPLEMENTAL INDENTURES
    	
50
    
	
Section 14.01
    	
WITHOUT CONSENT OF   SECURITYHOLDERS
    	
50
    
	
Section 14.02
    	
WITH CONSENT OF   SECURITYHOLDERS; LIMITATIONS
    	
52
    
	
Section 14.03
    	
TRUSTEE PROTECTED
    	
53
    
	
Section 14.04
    	
EFFECT OF EXECUTION OF   SUPPLEMENTAL INDENTURE
    	
53
    
	
Section 14.05
    	
NOTATION ON OR EXCHANGE   OF SECURITIES
    	
53
    
	
Section 14.06
    	
CONFORMITY WITH TIA
    	
53
    
	
 
    	
 
    	
 
    
	
ARTICLE XV SUBORDINATION OF SECURITIES
    	
54
    
	
Section 15.01
    	
AGREEMENT TO   SUBORDINATE
    	
54
    
	
Section 15.02
    	
DISTRIBUTION ON   DISSOLUTION, LIQUIDATION AND REORGANIZATION; SUBROGATION OF SECURITIES
    	
54
    
	
Section 15.03
    	
NO PAYMENT ON   SECURITIES IN EVENT OF DEFAULT ON SENIOR INDEBTEDNESS
    	
55
    
	
Section 15.04
    	
PAYMENTS ON SECURITIES   PERMITTED
    	
56
    
	
Section 15.05
    	
AUTHORIZATION OF   SECURITYHOLDERS TO TRUSTEE TO EFFECT SUBORDINATION
    	
56
    
	
Section 15.06
    	
NOTICES TO TRUSTEE
    	
56
    
	
Section 15.07
    	
TRUSTEE AS HOLDER OF   SENIOR INDEBTEDNESS
    	
56
    
	
Section 15.08
    	
MODIFICATIONS OF TERMS OF   SENIOR INDEBTEDNESS
    	
57
    
	
Section 15.09
    	
RELIANCE ON JUDICIAL   ORDER OR CERTIFICATE OF LIQUIDATING AGENT
    	
57
    
	
Section 15.10
    	
SATISFACTION AND   DISCHARGE; DEFEASANCE AND COVENANT DEFEASANCE
    	
57
    
	
Section 15.11
    	
TRUSTEE NOT FIDUCIARY   FOR HOLDERS OF SENIOR INDEBTEDNESS
    	
57
    
	
 
    	
 
    	
 
    
	
ARTICLE XVI MISCELLANEOUS PROVISIONS
    	
57
    
	
Section 16.01
    	
CERTIFICATES AND   OPINIONS AS TO CONDITIONS PRECEDENT
    	
57
    
	
Section 16.02
    	
TRUST INDENTURE ACT   CONTROLS
    	
58
    
	
Section 16.03
    	
NOTICES TO THE COMPANY   AND TRUSTEE
    	
59
    
	
Section 16.04
    	
NOTICES TO   SECURITYHOLDERS; WAIVER
    	
59
    
	
Section 16.05
    	
LEGAL HOLIDAY
    	
59
    
	
Section 16.06
    	
EFFECTS OF HEADINGS AND   TABLE OF CONTENTS
    	
60
    
	
Section 16.07
    	
SUCCESSORS
    	
60
    
	
Section 16.08
    	
SEPARABILITY CLAUSE
    	
60
    
	
Section 16.09
    	
BENEFITS OF INDENTURE
    	
60
    
	
Section 16.10
    	
COUNTERPARTS ORIGINALS
    	
60
    
	
Section 16.11
    	
GOVERNING LAW
    	
60
    
	
Section 16.12
    	
FORCE MAJEURE
    	
60
    
	
Section 16.13
    	
USA PATRIOT ACT
    	
60
    

 

* The Table of Contents is not a part of the Indenture.

 

iii

 

INDENTURE dated as of                 ,        between Huntsman International LLC, a Delaware limited liability company, and Wilmington Trust, National Association, a national banking association, as trustee.

 

W I T N E S S E T H:

 

WHEREAS, the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of debentures, notes, bonds or other evidences of indebtedness (the “Securities”) in an unlimited aggregate principal amount to be issued from time to time in one or more series as provided in this Indenture; and

 

WHEREAS, all things necessary to make this Indenture a valid and legally binding agreement of the Company, in accordance with its terms, have been done.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

That, in consideration of the premises and the purchase of the Securities by the Holders thereof for the equal and proportionate benefit of all of the present and future Holders of the Securities, each party agrees and covenants as follows:

 

ARTICLE I
 DEFINITIONS

 

Section 1.01                            DEFINITIONS.

 

(a)                                 Unless otherwise defined in this Indenture or the context otherwise requires, all terms used herein shall have the meanings assigned to them in the Trust Indenture Act.

 

(b)                                 Unless the context otherwise requires, the terms defined in this Section 1.01(b) shall for all purposes of this Indenture have the meanings hereinafter set forth, the following definitions to be equally applicable to both the singular and the plural forms of any of the terms herein defined:

 

Affiliate:  The term “Affiliate,” with respect to any specified Person shall mean any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person.  For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

Authenticating Agent:  The term “Authenticating Agent” shall have the meaning assigned to it in Section 11.09.

 

Board of Directors:  The term “Board of Directors” shall mean either the board of managers of the Company or any other committee or subcommittee of that board duly authorized to act in respect hereof.

 

Board Resolution:  The term “Board Resolution” shall mean a copy of a resolution or resolutions certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors (or by a committee of the Board of Directors to the extent that any such other committee has been authorized by the Board of Directors to establish or approve the matters

 

 

contemplated) and to be in full force and effect on the date of such certification and delivered to the Trustee.

 

Business Day:  The term “Business Day,” when used with respect to any Place of Payment or any other particular location referred to in this Indenture or in the Securities, shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of Payment or other location are authorized or obligated by law or executive order to close.

 

Capital Stock:                 The term “Capital Stock” shall mean:

 

(i)                                     in the case of a corporation, corporate stock;

 

(ii)                                  in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock;

 

(iii)                               in the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and

 

(iv)                              any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any right of participation with Capital Stock.

 

Code:               The term “Code” shall mean the Internal Revenue Code of 1986 as in effect on the date hereof, as amended from time to time.

 

Company:  The term “Company” shall mean Huntsman International LLC, a Delaware limited liability company, and shall also include its successors.

 

Company Order:  The term “Company Order” shall mean a written order signed in the name of the Company by a Responsible Officer of the Company and delivered to the Trustee.

 

Corporate Trust Office:  The term “Corporate Trust Office,” or other similar term, shall mean the principal office of the Trustee at which at any particular time its corporate trust business shall be administered, which office at the date hereof is located at 50 South Sixth Street, Suite 1290, Minneapolis, MN 55402, Attention: Huntsman International Administrator, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal corporate trust officer of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Company).

 

Currency:  The term “Currency” shall mean U.S. Dollars or Foreign Currency.

 

Default:  The term “Default” shall have the meaning assigned to it in Section 11.03.

 

Defaulted Interest:  The term “Defaulted Interest” shall have the same meaning assigned to it in Section 3.08(b).

 

Depositary:  The term “Depositary” shall mean, with respect to the Securities of any series issuable in whole or in part in the form of one or more Global Securities, the Person designated as

 

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Depositary by the Company pursuant to Section 3.01 until a successor Depositary shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall mean or include each Person who is then a Depositary hereunder, and if at any time there is more than one such Person, “Depositary” as used with respect to the Securities of any such series shall mean the Depositary with respect to the Securities of that series.

 

Designated Currency:  The term “Designated Currency” shall have the same meaning assigned to it in Section 3.12.

 

Discharged:  The term “Discharged” shall have the meaning assigned to it in Section 12.03.

 

Event of Default:  The term “Event of Default” shall have the meaning specified in Section 7.01.

 

Exchange Act:  The term “Exchange Act” shall mean the United States Securities Exchange Act of 1934, and the rules and regulations promulgated by the SEC thereunder and any statute successor thereto, in each case as amended from time to time.

 

Floating Rate Security:  The term “Floating Rate Security” shall mean a Security that provides for the payment of interest at a variable rate determined periodically by reference to an interest rate index specified pursuant to Section 3.01.

 

Foreign Currency:  The term “Foreign Currency” shall mean a currency issued by the government of any country other than the United States or a composite currency, the value of which is determined by reference to the values of the currencies of any group of countries.

 

GAAP:  The term “GAAP,” with respect to any computations required or permitted hereunder, shall mean generally accepted accounting principles in effect in the United States, which are applicable at the date of such computation and which are consistently applied for all applicable periods.

 

Global Security:  The term “Global Security” shall mean any Security that evidences all or part of a series of Securities, issued in fully-registered certificated form to the Depositary for such series in accordance with Section 3.03 and bearing the legend prescribed in Section 3.03(f).

 

Holder; Holder of Securities:  The terms “Holder” and “Holder of Securities” are defined under “Securityholder; Holder of Securities; Holder.”

 

Indebtedness:  The term “Indebtedness” shall mean any and all obligations of a Person for money borrowed which, in accordance with GAAP, would be reflected on the balance sheet of such Person as a liability on the date as of which Indebtedness is to be determined.

 

Indenture:  The term “Indenture” or “this Indenture” shall mean this instrument and all indentures supplemental thereto.

 

Individual Securities:  The term “Individual Securities” shall have the meaning specified in Section 3.01(p).

 

Interest:  The term “interest” shall mean, unless the context otherwise requires, interest payable on any Securities, and with respect to an Original Issue Discount Security that by its terms bears interest only after Maturity, interest payable after Maturity.

 

3

 

Interest Payment Date:  The term “Interest Payment Date” shall mean, with respect to any Security, the Stated Maturity of an installment of interest on such Security.

 

Mandatory Sinking Fund Payment:  The term “Mandatory Sinking Fund Payment” shall have the meaning assigned to it in Section 5.01(b).

 

Maturity:  The term “Maturity,” with respect to any Security, shall mean the date on which the principal of such Security shall become due and payable as therein and herein provided, whether by declaration, call for redemption or otherwise.

 

Members:  The term “Members” shall have the meaning assigned to it in Section 3.03(h).

 

Officer’s Certificate:  The term “Officer’s Certificate” shall mean a certificate signed by any of the Responsible Officers of the Company and delivered to the Trustee.  Each such certificate shall include the statements provided for in Section 16.01 if and to the extent required by the provisions of such Section.  The Officer giving an Officer’s Certificate pursuant to Section 6.07 shall be the principal executive officer, principal financial officer or principal accounting officer of the Company.

 

Opinion of Counsel:  The term “Opinion of Counsel” shall mean an opinion in writing signed by legal counsel, who may be an employee of or of counsel to the Company, or may be other counsel who is reasonably satisfactory to the Trustee, that meets the requirements provided for in Section 16.01.

 

Optional Sinking Fund Payment:  The term “Optional Sinking Fund Payment” shall have the meaning assigned to it in Section 5.01(b).

 

Original Issue Discount Security:  The term “Original Issue Discount Security” shall mean any Security that is issued with “original issue discount” within the meaning of Section 1273(a) of the Code and the regulations thereunder and any other Security designated by the Company as issued with original issue discount for United States federal income tax purposes.

 

Outstanding:  The term “Outstanding,” when used with respect to Securities means, as of the date of determination, all Securities theretofore authenticated and delivered under this Indenture, except:

 

(i)                                     Securities theretofore canceled by the Trustee or delivered to the Trustee for cancellation;

 

(ii)                                  Securities or portions thereof for which payment or redemption money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such Securities or Securities as to which the Company’s obligations have been Discharged; provided, however, that if such Securities or portions thereof are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; and

 

(iii)                               Securities that have been paid pursuant to Section 3.07(b) or in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to a Responsible Officer of the Trustee proof satisfactory to it that such Securities are held by a protected purchaser in whose hands such Securities are valid obligations of the Company;

 

4

 

provided, however, that in determining whether the Holders of the requisite principal amount of Securities of a series Outstanding have performed any action hereunder, Securities owned by the Company or any other obligor upon the Securities of such series or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such action, only Securities of such series that a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded.  Securities so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon such Securities or any Affiliate of the Company or of such other obligor.  In determining whether the Holders of the requisite principal amount of Outstanding Securities of a series have performed any action hereunder, the principal amount of an Original Issue Discount Security that shall be deemed to be Outstanding for such purpose shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 7.02 and the principal amount of a Security denominated in a Foreign Currency that shall be deemed to be Outstanding for such purpose shall be the amount calculated pursuant to Section 3.11(b).

 

Paying Agent:  The term “Paying Agent” shall have the meaning assigned to it in Section 6.02(a).

 

Person:  The term “Person” shall mean an individual, a corporation, a limited liability company, a partnership, an association, a joint stock company, a trust, an unincorporated organization or a government or an agency or political subdivision thereof.

 

Place of Payment:  The term “Place of Payment” shall mean, when used with respect to the Securities of any series, the place or places where the principal of and premium, if any, and interest on the Securities of that series are payable as specified pursuant to Section 3.01.

 

Predecessor Security:  The term “Predecessor Security” shall mean, with respect to any Security, every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security, and, for the purposes of this definition, any Security authenticated and delivered under Section 3.07 in lieu of a lost, destroyed or stolen Security shall be deemed to evidence the same debt as the lost, destroyed or stolen Security.

 

Record Date:  The term “Record Date” shall mean, with respect to any interest payable on any Security on any Interest Payment Date, the close of business on any date specified in such Security for the payment of interest pursuant to Section 3.01.

 

Redemption Date:  The term “Redemption Date” shall mean, when used with respect to any Security to be redeemed, in whole or in part, the date fixed for such redemption by or pursuant to this Indenture and the terms of such Security, which, in the case of a Floating Rate Security, unless otherwise specified pursuant to Section 3.01, shall be an Interest Payment Date only.

 

Redemption Price:  The term “Redemption Price,” when used with respect to any Security to be redeemed, in whole or in part, shall mean the price at which it is to be redeemed pursuant to the terms of the Security and this Indenture.

 

Register:  The term “Register” shall have the meaning assigned to it in Section 3.05(a).

 

Registrar:  The term “Registrar” shall have the meaning assigned to it in Section 3.05(a).

 

5

 

Responsible Officers:  The term “Responsible Officers” of the Trustee hereunder shall mean any officer in the corporate trust department of the Trustee with direct responsibility for the administration of this Indenture, and also means, with respect to a particular corporate trust matter relating to this Indenture, any other officer of the Trustee to whom such matter is referred because of such person’s knowledge of and familiarity with the particular subject.  The term “Responsible Officers” of the Company shall mean the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Vice-President of the Company and any other person designated by the Chief Executive Officer or any Vice President of the Company as a “Responsible Officer” for the purposes of this Indenture by the Board of Directors of the Company.

 

SEC:  The term “SEC” shall mean the United States Securities and Exchange Commission, as constituted from time to time.

 

Securities Act:  The term “Securities Act” shall mean the United States Securities Act of 1933 and the rules and regulations promulgated by the SEC thereunder and any statute successor thereto, in each case as amended from time to time.

 

Security:  The term “Security” or “Securities” shall have the meaning stated in the recitals and shall more particularly mean one or more of the Securities duly authenticated by the Trustee and delivered pursuant to the provisions of this Indenture.

 

Security Custodian:  The term “Security Custodian” shall mean the custodian with respect to any Global Security appointed by the Depositary for safekeeping of such Global Security, or any successor Person thereto, and shall initially be the Paying Agent.

 

Securityholder; Holder of Securities; Holder:  The term “Securityholder” or “Holder of Securities” or “Holder,” shall mean the Person in whose name Securities shall be registered in the Register kept for that purpose hereunder.

 

Senior Indebtedness:  The term “Senior Indebtedness” means all of the indebtedness of, or guaranteed by, the Company for borrowed money (including the principal of, premium, if any, or interest on any such borrowed money and any commitment fees for unborrowed amounts which, if borrowed, would constitute Senior Indebtedness), whether currently outstanding or hereafter incurred, unless, under the instrument evidencing the same or under which the same is outstanding, it is expressly provided that such indebtedness is subordinate to other indebtedness and obligations of the Company.

 

Special Record Date:  The term “Special Record Date” shall have the meaning assigned to it in Section 3.08(b)(i).

 

Stated Maturity:  The term “Stated Maturity” when used with respect to any Security or any installment of interest thereon, shall mean the date specified in such Security as the fixed date on which the principal (or any portion thereof) of or premium, if any, on such Security or such installment of interest is due and payable.

 

Subsidiary:  The term “Subsidiary,” when used with respect to any Person, shall mean:

 

(i)                                     any corporation, limited liability company, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power)

 

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to vote in the election of directors, managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and

 

(ii)                                  any partnership (i) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person or (ii) the only general partners of which are that Person or one or more Subsidiaries of that Person (or any combination thereof).

 

Successor Company:  The term “Successor Company” shall have the meaning assigned to it in Section 3.06(i).

 

Trust Indenture Act; TIA:  The term “Trust Indenture Act” or “TIA” shall mean the Trust Indenture Act of 1939, as amended, and the rules and regulations thereunder as in effect on the date of this Indenture, except as provided in Section 14.06 and except to the extent any amendment to the Trust Indenture Act expressly provides for application of the Trust Indenture Act as in effect on another date.

 

Trustee:  The term “Trustee” shall mean Wilmington Trust, National Association, for the time being, and any permitted successor trustee, and if at any time there is more than one such trustee, “Trustee” as used with respect to the Securities of any series shall mean the trustee with respect to Securities of that series.

 

U.S. Dollars:  The term “U.S. Dollars” shall mean such currency of the United States as at the time of payment shall be legal tender for the payment of public and private debts.

 

U.S. Government Obligations:  The term “U.S. Government Obligations” shall have the meaning assigned to it in Section 12.03.

 

United States:  The term “United States” shall mean the United States of America (including the States and the District of Columbia), its territories and its possessions and other areas subject to its jurisdiction.

 

ARTICLE II
 FORMS OF SECURITIES

 

Section 2.01                            TERMS OF THE SECURITIES.

 

(a)                                 The Securities of each series shall be substantially in the form set forth in a Company Order, an Officer’s Certificate or in one or more indentures supplemental hereto, and shall have such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification or designation and such legends or endorsements placed thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange on which any series of the Securities may be listed or of any automated quotation system on which any such series may be quoted, or to conform to usage, all as determined by the officers executing such Securities as conclusively evidenced by their execution of such Securities.

 

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(b)                                 The terms and provisions of the Securities shall constitute, and are hereby expressly made, a part of this Indenture, and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture expressly agree to such terms and provisions and to be bound thereby.

 

Section 2.02                            FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION.

 

(a)                                 Only such of the Securities as shall bear thereon a certificate substantially in the form of the Trustee’s certificate of authentication hereinafter recited, executed by the Trustee by manual signature, shall be valid or become obligatory for any purpose or entitle the Holder thereof to any right or benefit under this Indenture, and the certificate of authentication by the Trustee upon any such Security executed on behalf of the Company as aforesaid shall be conclusive evidence that the Security so authenticated has been duly authenticated and delivered hereunder and that the holder thereof is entitled to the benefits of this Indenture.

 

(b)                                 Each Security shall be dated the date of its authentication, except that any Global Security shall be dated as of the date specified as contemplated in Section 3.01.

 

(c)                                  The form of the Trustee’s certificate of authentication to be borne by the Securities shall be substantially as follows:

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

	
 
    	
Date of Authentication:
    
	
 
    	
Wilmington Trust,   National Association, as Trustee
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    

 

Section 2.03                            FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION BY AN AUTHENTICATING AGENT.  If at any time there shall be an Authenticating Agent appointed with respect to any series of Securities, then the Trustee’s Certificate of Authentication by such Authenticating Agent to be borne by Securities of each such series shall be substantially as follows:

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

	
 
    	
Date of Authentication:
    
	
 
    	
[                  ],   as Authenticating Agent
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    

 

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ARTICLE III
 THE DEBT SECURITIES

 

Section 3.01                            AMOUNT UNLIMITED; ISSUABLE IN SERIES.  The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited.  The Securities may be issued in one or more series.  There shall be set forth in a Company Order, an Officer’s Certificate or in one or more indentures supplemental hereto, prior to the issuance of Securities of any series:

 

(a)                                 the title of the Securities of the series (which shall distinguish the Securities of such series from the Securities of all other series, except to the extent that additional Securities of an existing series are being issued);

 

(b)                                 any limit upon the aggregate principal amount of the Securities of the series that may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon transfer of, or in exchange for, or in lieu of, other Securities of such series pursuant to Section 3.04, 3.06, 3.07, 4.06, or 14.05);

 

(c)                                  the dates on which or periods during which the Securities of the series may be issued, and the dates on, or the range of dates within, which the principal of and premium, if any, on the Securities of such series are or may be payable or the method by which such date or dates shall be determined or extended;

 

(d)                                 the rate or rates at which the Securities of the series shall bear interest, if any, or the method by which such rate or rates shall be determined, whether such interest shall be payable in cash or additional Securities of the same series or shall accrue and increase the aggregate principal amount outstanding of such series (including if such Securities were originally issued at a discount), the date or dates from which such interest shall accrue, or the method by which such date or dates shall be determined, the Interest Payment Dates on which any such interest shall be payable, and the Record Dates for the determination of Holders to whom interest is payable on such Interest Payment Dates or the method by which such date or dates shall be determined, the right, if any, to extend or defer interest payments and the duration of such extension or deferral;

 

(e)                                  if other than U.S. Dollars, the Foreign Currency in which Securities of the series shall be denominated or in which payment of the principal of, premium, if any, or interest on the Securities of the series shall be payable and any other terms concerning such payment;

 

(f)                                   if the amount of payment of principal of, premium, if any, or interest on the Securities of the series may be determined with reference to an index, formula or other method including, but not limited to, an index based on a Currency or Currencies other than that in which the Securities are stated to be payable, the manner in which such amounts shall be determined;

 

(g)                                  if the principal of, premium, if any, or interest on Securities of the series are to be payable, at the election of the Company or a Holder thereof, in a Currency other than that in which the Securities are denominated or stated to be payable without such election, the period or periods within which, and the terms and conditions upon which, such election may be made and the time and the manner of determining the exchange rate between the Currency in which the Securities are denominated or payable without such election and the Currency in which the Securities are to be paid if such election is made;

 

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(h)                                 the place or places, if any, in addition to or instead of the Corporate Trust Office of the Trustee where the principal of, premium, if any, and interest on Securities of the series shall be payable, and where Securities of any series may be presented for registration of transfer, exchange or conversion, and the place or places where notices and demands to or upon the Company in respect of the Securities of such series may be made;

 

(i)                                     the price or prices at which, the period or periods within which or the date or dates on which, and the terms and conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Company, if the Company is to have that option;

 

(j)                                    the obligation or right, if any, of the Company to redeem, purchase or repay Securities of the series pursuant to any sinking fund, amortization or analogous provisions or at the option of a Holder thereof and the price or prices at which, the period or periods within which or the date or dates on which, the Currency or Currencies in which and the terms and conditions upon which Securities of the series shall be redeemed, purchased or repaid, in whole or in part, pursuant to such obligation;

 

(k)                                 if other than minimum denominations of $1,000 or any integral multiple in excess thereof, the denominations in which Securities of the series shall be issuable;

 

(l)                                     if other than the principal amount thereof, the portion of the principal amount of the Securities of the series which shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 7.02;

 

(m)                             the guarantors, if any, of the Securities of the series, and the extent of the guarantees (including provisions relating to seniority, subordination, and the release of the guarantors), if any, and any additions or changes to permit or facilitate guarantees of such Securities;

 

(n)                                 whether the Securities of the series are to be issued as Original Issue Discount Securities and the amount of discount with which such Securities may be issued;

 

(o)                                 provisions, if any, for the defeasance of Securities of the series in whole or in part and any addition or change in the provisions related to satisfaction and discharge;

 

(p)                                 whether the Securities of the series are to be issued in whole or in part in the form of one or more Global Securities and, in such case, the Depositary for such Global Security or Global Securities, and the terms and conditions, if any, upon which interests in such Global Security or Global Securities may be exchanged in whole or in part for the Individual Securities represented thereby in definitive form registered in the name or names of Persons other than such Depositary or a nominee or nominees thereof (“Individual Securities”);

 

(q)                                 the date as of which any Global Security of the series shall be dated if other than the original issuance of the first Security of the series to be issued;

 

(r)                                    the form of the Securities of the series;

 

(s)                                   if the Securities of the series are to be convertible into or exchangeable for any securities or property of any Person (including the Company), the terms and conditions upon which such Securities will be so convertible or exchangeable, and any additions or changes, if any, to permit or facilitate such conversion or exchange;

 

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(t)                                    whether the Securities of such series are subject to subordination and the terms of such subordination;

 

(u)                                 any restriction or condition on the transferability of the Securities of such series;

 

(v)                                 any addition or change in the provisions related to compensation and reimbursement of the Trustee which applies to Securities of such series;

 

(w)                               any addition or change in the provisions related to supplemental indentures set forth in Sections 14.01 and 14.02 which applies to Securities of such series;

 

(x)                                 provisions, if any, granting special rights to Holders upon the occurrence of specified events;

 

(y)                                 any addition to or change in the Events of Default which applies to any Securities of the series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 7.02 and any addition or change in the provisions set forth in Article VII which applies to Securities of the series;

 

(z)                                  any addition to or change in the covenants set forth in Article VI which applies to Securities of the series; and

 

(aa)                          any other terms of the Securities of such series (which terms shall not be inconsistent with the provisions of the TIA, but may modify, amend, supplement or delete any of the terms of this Indenture with respect to such series).

 

All Securities of any one series shall be substantially identical, except as to denomination and except as may otherwise be provided herein or set forth in a Company Order or in one or more indentures supplemental hereto.

 

Section 3.02                            DENOMINATIONS.  In the absence of any specification pursuant to Section 3.01 with respect to Securities of any series, the Securities of such series shall be issuable only as Securities in minimum denominations of any integral multiple of $1,000 in excess thereof, and shall be payable only in U.S. Dollars.

 

Section 3.03                            EXECUTION, AUTHENTICATION, DELIVERY AND DATING.

 

(a)                                 The Securities shall be executed in the name and on behalf of the Company by the manual or facsimile signature of one of its Responsible Officers.  If the Person whose signature is on a Security no longer holds that office at the time the Security is authenticated and delivered, the Security shall nevertheless be valid.

 

(b)                                 At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities and, as required pursuant to Section 3.01, a supplemental indenture, Officer’s Certificate or Company Order setting forth the terms of the Securities of a series.  The Trustee shall thereupon authenticate and deliver such Securities without any further action by the Company.  The Company Order shall specify the amount of Securities to be authenticated and the date on which the original issue of Securities is to be authenticated.

 

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(c)                                  In authenticating the first Securities of any series and accepting the additional responsibilities under this Indenture in relation to such Securities the Trustee shall receive, and (subject to Section 11.02) shall be fully protected in relying upon

 

(i)                                     an Officer’s Certificate prepared in accordance with Section 16.01 stating that the conditions precedent, if any, provided for in the Indenture have been complied with; and

 

(ii)                                  an Opinion of Counsel prepared in accordance with Section 16.01, which shall state:

 

(A)                               that such Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Company, enforceable in accordance with their terms, and will be entitled to the benefits of this Indenture;

 

(B)                               that the Company has the corporate power to issue the Securities, and has duly taken all necessary action with respect to such issuance;

 

(C)                               that all requirements of the Indenture applicable to the Company in respect of the execution and delivery by the Company of the Securities and of such supplemental indenture, if any, have been complied with and, that assuming (a) all requisite corporate authorization on the part of the Trustee, (b) continued compliance by the Trustee with the terms of the Indenture specifically applicable to the Trustee, and (c) due authentication and delivery of the Securities by the Trustee, the execution and delivery of such supplemental indenture, if any, will not violate the terms of this Indenture.

 

(d)                                 The Trustee shall have the right to decline to authenticate and deliver the Securities under this Section 3.03 if the issue of the Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.

 

(e)                                  Each Security shall be dated the date of its authentication, except as otherwise provided pursuant to Section 3.01 with respect to the Securities of such series.

 

(f)                                   Notwithstanding the provisions of Section 3.01 and of this Section 3.03, if all of the Securities of any series are not to be originally issued at the same time, then the documents required to be delivered pursuant to Section 3.03(c) must be delivered only once prior to the authentication and delivery of the first Security of such series; provided, however, that any subsequent request by the Company to the Trustee to authenticate Securities of such series upon original issuance shall constitute a representation and warranty by the Company that, as of the date of such request, the statements made in any Officer’s Certificate delivered pursuant to this Section 3.03 shall be true and correct as if made on such date, and the Company Order or Supplemental Indenture shall explicitly certify to the same.  If the Company shall establish pursuant to Section 3.01 that the Securities of a series are to be issued in whole or in part in the form of one or more Global Securities, then the Company shall execute and the Trustee shall authenticate and deliver one or more Global Securities that (i) shall represent an aggregate amount equal to the aggregate principal amount of the Outstanding Securities of such series to be represented by such Global Securities, (ii) shall be registered, if in registered form, in the name of the Depositary for

 

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such Global Securities or the nominee of such Depositary, (iii) shall be delivered by the Trustee to such Depositary or pursuant to such Depositary’s instruction and (iv) shall bear a legend substantially to the following effect:

 

“THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF [THE DEPOSITARY] TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF [THE NOMINEE OF THE DEPOSITARY] OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF [THE DEPOSITARY] (AND ANY PAYMENT HEREON IS MADE TO [THE NOMINEE OF THE DEPOSITARY] OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF [THE DEPOSITARY]), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, [THE NOMINEE OF THE DEPOSITARY], HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.”

 

The aggregate principal amount of each Global Security may from time to time be increased or decreased by adjustments made on the records of the Security Custodian, as provided in this Indenture.

 

(g)                                  Each Depositary designated pursuant to Section 3.01 for a Global Security in registered form must, at the time of its designation and at all times while it serves as such Depositary, be a clearing agency registered under the Exchange Act and any other applicable statute or regulation.

 

(h)                                 Members of, or participants in, the Depositary (“Members”) shall have no rights under this Indenture with respect to any Global Security held on their behalf by the Depositary or by the Security Custodian under such Global Security, and the Depositary may be treated by the Company, the Trustee, the Paying Agent and the Registrar and any of their agents as the absolute owner of such Global Security for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee, the Paying Agent or the Registrar or any of their agents from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and its Members, the operation of customary practices of the Depositary governing the exercise of the rights of an owner of a beneficial interest in any Global Security.  The Holder of a Global Security may grant proxies and otherwise authorize any Person, including Members and Persons that may hold interests through Members, to take any action that a Holder is entitled to take under this Indenture or the Securities.

 

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(i)                                     No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication substantially in one of the forms provided for herein duly executed by the Trustee or by an Authenticating Agent by manual signature of one of its Responsible Officers, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder and is entitled to the benefits of this Indenture.

 

Section 3.04                            TEMPORARY SECURITIES.

 

(a)                                 Pending the preparation of definitive Securities of any series, the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Securities that are printed, lithographed, typewritten, mimeographed or otherwise reproduced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued, in registered form and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as conclusively evidenced by their execution of such Securities.  Any such temporary Security may be in the form of one or more Global Securities, representing all or a portion of the Outstanding Securities of such series.  Every such temporary Security shall be executed by the Company and shall be authenticated and delivered by the Trustee upon the same conditions and in substantially the same manner, and with the same effect, as the definitive Security or Securities in lieu of which it is issued.

 

(b)                                 If temporary Securities of any series are issued, the Company will cause definitive Securities of such series to be prepared without unreasonable delay.  After the preparation of definitive Securities of such series, the temporary Securities of such series shall be exchangeable for definitive Securities of such series upon surrender of such temporary Securities at the office or agency of the Company in a Place of Payment for such series, without charge to the Holder.  Upon surrender for cancellation of any one or more temporary Securities of any series, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Securities of the same series of authorized denominations and of like tenor.  Until so exchanged, the temporary Securities of any series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of such series.

 

(c)                                  Upon any exchange of a portion of a temporary Global Security for a definitive Global Security or for the Individual Securities represented thereby pursuant to this Section 3.04 or Section 3.06, the temporary Global Security shall be endorsed by the Trustee to reflect the reduction of the principal amount evidenced thereby, whereupon the principal amount of such temporary Global Security shall be reduced for all purposes by the amount so exchanged and endorsed.

 

Section 3.05                            REGISTRAR AND PAYING AGENT.

 

(a)                                 The Company will keep, at an office or agency to be maintained by it in a Place of Payment where Securities may be presented for registration or presented and surrendered for registration of transfer or of exchange, and where Securities of any series that are convertible or exchangeable may be surrendered for conversion or exchange, as applicable (the “Registrar”), a security register for the registration and the registration of transfer or of exchange of the Securities (the registers maintained in such office and in any other office or agency of the Company in a Place of Payment being herein sometimes collectively referred to as the “Register”), as in this Indenture provided, which Register shall at all reasonable times be open for inspection by the Trustee.  Such Register shall be in written form or in any other form capable of being converted into written form within a reasonable time.  The Company may have one or more co-Registrars; the term “Registrar” includes any co-registrar.

 

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(b)                                 The Company shall enter into an appropriate agency agreement with any Registrar or co-Registrar not a party to this Indenture.  The agreement shall implement the provisions of this Indenture that relate to such agent.  The Company shall notify the Trustee in writing of the name and address of each such agent.  If the Company fails to maintain a Registrar for any series, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 11.01.  The Company or any Affiliate thereof may act as Registrar, co-Registrar or transfer agent.

 

(c)                                  The Company hereby appoints the Trustee at its Corporate Trust Office as Registrar in connection with the Securities and this Indenture, until such time as another Person is appointed as such.

 

Section 3.06                            TRANSFER AND EXCHANGE.

 

(a)                                 Transfer.

 

(i)                                     Upon surrender for registration of transfer of any Security of any series at the Registrar the Company shall execute, and the Trustee or any Authenticating Agent shall authenticate and deliver, in the name of the designated transferee, one or more new Securities of the same series for like aggregate principal amount of any authorized denomination or denominations.  The transfer of any Security shall not be valid as against the Company or the Trustee unless registered at the Registrar at the request of the Holder, or at the request of his, her or its attorney duly authorized in writing.

 

(ii)                                  Notwithstanding any other provision of this Section, unless and until it is exchanged in whole or in part for the Individual Securities represented thereby, a Global Security representing all or a portion of the Securities of a series may not be transferred except as a whole by the Depositary for such series to a nominee of such Depositary or by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by such Depositary or any such nominee to a successor Depositary for such series or a nominee of such successor Depositary.

 

(b)                                 Exchange.

 

(i)                                     At the option of the Holder, Securities of any series (other than a Global Security, except as set forth below) may be exchanged for other Securities of the same series for like aggregate principal amount of any authorized denomination or denominations, upon surrender of the Securities to be exchanged at the Registrar.

 

(ii)                                  Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities that the Holder making the exchange is entitled to receive.

 

(c)                                  Exchange of Global Securities for Individual Securities.  Except as provided below, owners of beneficial interests in Global Securities will not be entitled to receive Individual Securities.

 

(i)                                     Individual Securities shall be issued to all owners of beneficial interests in a Global Security in exchange for such interests if:  (A) at any time the Depositary for the Securities of a series notifies the Company that it is unwilling or unable to continue as Depositary for the Securities of such series or if at any time the Depositary for the

 

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Securities of such series shall no longer be eligible under Section 3.03(g) and, in each case, a successor Depositary is not appointed by the Company within 90 days of such notice, or (B) the Company executes and delivers to the Trustee and the Registrar an Officer’s Certificate stating that such Global Security shall be so exchangeable.

 

In connection with the exchange of an entire Global Security for Individual Securities pursuant to this subsection (c), such Global Security shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of Individual Securities of such series, will authenticate and deliver to each beneficial owner identified by the Depositary in exchange for its beneficial interest in such Global Security, an equal aggregate principal amount of Individual Securities of authorized denominations.

 

(ii)                                  The owner of a beneficial interest in a Global Security will be entitled to receive an Individual Security in exchange for such interest if an Event of Default has occurred and is continuing.  Upon receipt by the Security Custodian and Registrar of instructions from the Holder of a Global Security directing the Security Custodian and Registrar to (x) issue one or more Individual Securities in the amounts specified to the owner of a beneficial interest in such Global Security and (y) debit or cause to be debited an equivalent amount of beneficial interest in such Global Security, subject to the rules and regulations of the Depositary:

 

(A)                               the Security Custodian and Registrar shall notify the Company and the Trustee of such instructions, identifying the owner and amount of such beneficial interest in such Global Security;

 

(B)                               the Company shall promptly execute and the Trustee, upon receipt of a Company Order for the authentication and delivery of Individual Securities of such series, shall authenticate and deliver to such beneficial owner Individual Securities in an equivalent amount to such beneficial interest in such Global Security; and

 

(C)                               the Security Custodian and Registrar shall decrease such Global Security by such amount in accordance with the foregoing.  In the event that the Individual Securities are not issued to each such beneficial owner promptly after the Registrar has received a request from the Holder of a Global Security to issue such Individual Securities, the Company expressly acknowledges, with respect to the right of any Holder to pursue a remedy pursuant to Section 7.07 hereof, the right of any beneficial Holder of Securities to pursue such remedy with respect to the portion of the Global Security that represents such beneficial Holder’s Securities as if such Individual Securities had been issued.

 

(iii)                               If specified by the Company pursuant to Section 3.01 with respect to a series of Securities, the Depositary for such series of Securities may surrender a Global Security for such series of Securities in exchange in whole or in part for Individual Securities of such series on such terms as are acceptable to the Company and such Depositary.  Thereupon, the Company shall execute, and the Trustee shall authenticate and deliver, without service charge,

 

(A)                               to each Person specified by such Depositary a new Individual Security or new Individual Securities of the same series, of any authorized

 

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denomination as requested by such Person in aggregate principal amount equal to and in exchange for such Person’s beneficial interest in the Global Security; and

 

(B)                               to such Depositary a new Global Security in a denomination equal to the difference, if any, between the principal amount of the surrendered Global Security and the aggregate principal amount of Individual Securities delivered to Holders thereof.

 

(iv)                              In any exchange provided for in clauses (i) through (iii), the Company will execute and the Trustee will authenticate and deliver Individual Securities in registered form in authorized denominations.

 

(v)                                 Upon the exchange in full of a Global Security for Individual Securities, such Global Security shall be canceled by the Trustee.  Individual Securities issued in exchange for a Global Security pursuant to this Section shall be registered in such names and in such authorized denominations as the Depositary for such Global Security, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee.  The Trustee shall deliver such Securities to the Persons in whose names such Securities are so registered.

 

(d)                                 All Securities issued upon any registration of transfer or exchange of Securities shall be valid obligations of the Company evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered for such registration of transfer or exchange.

 

(e)                                  Every Security presented or surrendered for registration of transfer, or for exchange or payment shall (if so required by the Company, the Trustee or the Registrar) be duly endorsed, or be accompanied by a written instrument or instruments of transfer in form satisfactory to the Company, the Trustee and the Registrar, duly executed by the Holder thereof or by his, her or its attorney duly authorized in writing.

 

(f)                                   No service charge will be made for any registration of transfer or exchange of Securities.  The Company or the Trustee may require payment of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Securities, other than those expressly provided in this Indenture to be made at the Company’s own expense or without expense or charge to the Holders.

 

(g)                                  The Company shall not be required to (i) register, transfer or exchange Securities of any series during a period beginning at the opening of business 15 days before the day of the transmission of a notice of redemption of Securities of such series selected for redemption under Section 4.03 and ending at the close of business on the day of such transmission, or (ii) register, transfer or exchange any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part.

 

(h)                                 Prior to the due presentation for registration of transfer or exchange of any Security, the Company, the Trustee, the Paying Agent, the Registrar, any co-Registrar or any of their agents may deem and treat the Person in whose name a Security is registered as the absolute owner of such Security (whether or not such Security shall be overdue and notwithstanding any notation of ownership or other writing thereon) for all purposes whatsoever, and none of the Company, the Trustee, the Paying Agent, the Registrar, any co-Registrar or any of their agents shall be affected by any notice to the contrary.

 

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(i)                                     In case a successor Company (“Successor Company”) has executed an indenture supplemental hereto with the Trustee pursuant to Article XIV, any of the Securities authenticated or delivered pursuant to such transaction may, from time to time, at the request of the Successor Company, be exchanged for other Securities executed in the name of the Successor Company with such changes in phraseology and form as may be appropriate as determined by the Successor Company, but otherwise identical to the Securities surrendered for such exchange and of like principal amount; and the Trustee, upon Company Order of the Successor Company, shall authenticate and deliver Securities as specified in such order for the purpose of such exchange.  If Securities shall at any time be authenticated and delivered in any new name of a Successor Company pursuant to this Section 3.06 in exchange or substitution for or upon registration of transfer of any Securities, such Successor Company, at the option of the Holders but without expense to them, shall provide for the exchange of all Securities at the time Outstanding for Securities authenticated and delivered in such new name.

 

(j)                                    Each Holder of a Security agrees to indemnify the Company and the Trustee against any liability that may result from the transfer, exchange or assignment of such Holder’s Security in violation of any provision of this Indenture and/or applicable United States federal or state securities laws.

 

(k)                                 The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Security other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

 

(l)                                     Neither the Trustee nor any agent of the Trustee shall have any responsibility for any actions taken or not taken by the Depositary.

 

Section 3.07                            MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.

 

(a)                                 If (i) any mutilated Security is surrendered to the Trustee at its Corporate Trust Office or (ii) the Company and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Security, and there is delivered to the Company and the Trustee security or indemnity satisfactory to the Trustee for itself and satisfactory to the Company to save each of them and any Paying Agent harmless, and neither the Company nor the Trustee receives notice that such Security has been acquired by a protected purchaser, then the Company shall execute and upon Company Order the Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Security, a new Security of the same series and of like tenor, form, terms and principal amount, bearing a number not contemporaneously outstanding, that neither gain nor loss in interest shall result from such exchange or substitution.

 

(b)                                 In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay the amount due on such Security in accordance with its terms.

 

(c)                                  Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in respect thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

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(d)                                 Every new Security of any series issued pursuant to this Section shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that series duly issued hereunder.

 

(e)                                  The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

 

Section 3.08                            PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.

 

(a)                                 Interest on any Security that is payable and is punctually paid or duly provided for on any Interest Payment Date shall be paid to the Person in whose name such Security (or one or more Predecessor Securities) is registered at the close of business on the Record Date for such interest notwithstanding the cancellation of such Security upon any transfer or exchange subsequent to the Record Date.  Payment of interest on Securities shall be made at the Corporate Trust Office (except as otherwise specified pursuant to Section 3.01) or, at the option of the Company, by check mailed to the address of the Person entitled thereto as such address shall appear in the Register or, in accordance with arrangements satisfactory to the Trustee and the Paying Agent, by wire transfer to an account designated by the Holder.

 

(b)                                 Any interest on any Security that is payable but is not punctually paid or duly provided for on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder on the relevant Record Date by virtue of his, her or its having been such a Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in clause (i) or (ii) below:

 

(i)                                     The Company may elect to make payment of any Defaulted Interest to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered at the close of business on a special record date for the payment of such Defaulted Interest (a “Special Record Date”), which shall be fixed in the following manner.  The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided.  Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 calendar days and not less than 10 calendar days prior to the date of the proposed payment and not less than 10 calendar days after the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to the Holders of such Securities at their addresses as they appear in the Register, not less than 10 calendar days prior to such Special Record Date.  Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (ii).

 

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(ii)                                  The Company may make payment of any Defaulted Interest on Securities in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

 

(c)                                  Subject to the provisions set forth herein relating to Record Dates, each Security delivered pursuant to any provision of this Indenture in exchange or substitution for, or upon registration of transfer of, any other Security shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security.

 

Section 3.09                            CANCELLATION.  Unless otherwise specified pursuant to Section 3.01 for Securities of any series, all Securities surrendered for payment, redemption, registration of transfer or exchange or credit against any sinking fund or otherwise shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee for cancellation and shall be promptly canceled by it and, if surrendered to the Trustee, shall be promptly canceled by it.  The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder that the Company may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly canceled by the Trustee upon receipt of a Company Order.  No Securities shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this Section, except as expressly permitted by this Indenture.  The Trustee shall dispose of all canceled Securities held by it in accordance with its then customary procedures and deliver a certificate of such disposal to the Company upon written request by the Company.  The acquisition of any Securities by the Company shall not operate as a redemption or satisfaction of the Indebtedness represented thereby unless and until such Securities are surrendered to the Trustee for cancellation.

 

Section 3.10                            COMPUTATION OF INTEREST.  Except as otherwise specified pursuant to Section 3.01 for Securities of any series, interest on the Securities of each series shall be computed on the basis of a 360-day year of twelve 30-day months.

 

Section 3.11                            CURRENCY OF PAYMENTS IN RESPECT OF SECURITIES.

 

(a)                                 Except as otherwise specified pursuant to Section 3.01 for Securities of any series, payment of the principal of and premium, if any, and interest on Securities of such series will be made in U.S. Dollars.

 

(b)                                 For purposes of any provision of the Indenture where the Holders of Outstanding Securities may perform an action that requires that a specified percentage of the Outstanding Securities of all series perform such action and for purposes of any decision or determination by the Trustee of amounts due and unpaid for the principal of and premium, if any, and interest on the Securities of all series in respect of which moneys are to be disbursed ratably, the principal of and premium, if any, and interest on the Outstanding Securities denominated in a Foreign Currency will be the amount in U.S. Dollars based upon exchange rates, determined as specified pursuant to Section 3.01 for Securities of such series, as of the date for determining whether the Holders entitled to perform such action have performed it or as of the date of such decision or determination by the Trustee, as the case may be.

 

(c)                                  Any decision or determination to be made regarding exchange rates shall be made by an agent appointed by the Company; provided, that such agent shall accept such appointment in writing and the terms of such appointment shall, in the opinion of the Company at the time of such

 

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appointment, require such agent to make such determination by a method consistent with the method provided pursuant to Section 3.01 for the making of such decision or determination.  All decisions and determinations of such agent regarding exchange rates shall, in the absence of manifest error, be conclusive for all purposes and irrevocably binding upon the Company, the Trustee and all Holders of the Securities.

 

Section 3.12                            JUDGMENTS.  The Company may provide pursuant to Section 3.01 for Securities of any series that (a) the obligation, if any, of the Company to pay the principal of, premium, if any, and interest on the Securities of any series in a Foreign Currency or U.S. Dollars (the “Designated Currency”) as may be specified pursuant to Section 3.01 is of the essence and agrees that, to the fullest extent possible under applicable law, judgments in respect of such Securities shall be given in the Designated Currency; (b) the obligation of the Company to make payments in the Designated Currency of the principal of and premium, if any, and interest on such Securities shall, notwithstanding any payment in any other Currency (whether pursuant to a judgment or otherwise), be discharged only to the extent of the amount in the Designated Currency that the Holder receiving such payment may, in accordance with normal banking procedures, purchase with the sum paid in such other Currency (after any premium and cost of exchange) on the business day in the country of issue of the Designated Currency or in the international banking community (in the case of a composite currency) immediately following the day on which such Holder receives such payment; (c) if the amount in the Designated Currency that may be so purchased for any reason falls short of the amount originally due, the Company shall pay such additional amounts as may be necessary to compensate for such shortfall; and (d) any obligation of the Company not discharged by such payment shall be due as a separate and independent obligation and, until discharged as provided herein, shall continue in full force and effect.

 

Section 3.13                            CUSIP NUMBERS.  The Company in issuing any Securities may use CUSIP, ISIN or other similar numbers, if then generally in use, and thereafter with respect to such series, the Trustee may use such numbers in any notice of redemption or exchange with respect to such series provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers.  The Company will promptly notify the Trustee in writing of any change in the CUSIP, ISIN or other similar numbers.

 

ARTICLE IV
 REDEMPTION OF SECURITIES

 

Section 4.01                            NOTICE TO TRUSTEE.  The Company may, with respect to any series of Securities, reserve the right to redeem and pay the series of Securities or may covenant to redeem and pay the series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities. If a series of Securities is redeemable and the Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the series of Securities pursuant to the terms of such Securities, it shall notify the Trustee in writing of the redemption date and the principal amount of series of Securities to be redeemed. The Company shall give the notice at least 15 days before the redemption date.

 

Section 4.02                            SELECTION OF SECURITIES TO BE REDEEMED.  Unless otherwise indicated for a particular series by a Company Order, an Officer’s Certificate or a supplemental indenture hereto, if less than all the Securities of a series are to be redeemed, the Securities of the series to be redeemed will be selected as follows: (a) if the Securities are in the form of Global Securities, in accordance with the procedures of the Depositary, (b) if the Securities are listed on any national securities exchange, in compliance with the requirements of the principal national securities exchange, if any, on

 

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which the Securities are listed, or (c) if not otherwise provided for under clause (a) or (b) in the manner that the Trustee deems fair and appropriate, including by lot or other method, unless otherwise required by law or applicable stock exchange requirements, subject, in the case of Global Securities, to the applicable rules and procedures of the Depositary. The Securities to be redeemed shall be selected from Securities of the series outstanding not previously called for redemption. Portions of the principal of Securities of the series that have denominations larger than $1,000 may be selected for redemption. Securities of the series and portions of them selected for redemption shall be in amounts of $1,000 or whole multiples of $1,000 in excess thereof or, with respect to Securities of any series issuable in other denominations pursuant to Section 3.01(k), the minimum principal denomination for each series and the authorized integral multiples thereof. Provisions of this Indenture that apply to Securities of a series called for redemption also apply to portions of Securities of that series called for redemption.

 

Section 4.03                            NOTICE OF REDEMPTION.  Unless otherwise indicated for a particular series by a Company Order, an Officer’s Certificate or a supplemental indenture hereto, at least 15 days but not more than 60 days before a redemption date, the Company shall send or cause to be sent by first-class mail or electronically, in accordance with the procedures of the Depositary, a notice of redemption to each Holder whose Securities are to be redeemed.

 

The notice shall identify the Securities of the series to be redeemed and shall state:

 

(a)                                 the redemption date;

 

(b)                                 the redemption price;

 

(c)                                  the name and address of the Paying Agent;

 

(d)                                 if any Securities are being redeemed in part, the portion of the principal amount of such Securities to be redeemed and that, after the redemption date and upon surrender of such Security, a new Security or Securities in principal amount equal to the unredeemed portion of the original Security shall be issued in the name of the Holder thereof upon cancellation of the original Security;

 

(e)                                  that Securities of the series called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 

(f)                                   that interest on Securities of the series called for redemption ceases to accrue on and after the redemption date unless the Company defaults in the deposit of the redemption price;

 

(g)                                  the CUSIP number, if any;

 

(h)                                 whether the redemption is conditioned on any events and what such conditions are; and

 

(i)                                     any other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed.

 

Any notice of redemption may be given prior to the completion of any event or transaction related to such redemption, and any such redemption or notice may be subject to one or more conditions precedent. In addition, if such redemption or notice is subject to satisfaction of one or more conditions precedent, such notice will state that, in the discretion of the Company, the redemption date may be delayed until such time as any or all of such conditions have been satisfied, or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions have not been satisfied

 

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by the redemption date, or by the redemption date so delayed. If one or more conditions specified with respect to a redemption are not satisfied or waived, the redemption date shall be deemed not to have occurred for all purposes of this Indenture and the Company shall give notice of such non-occurrence to the Holders of the applicable Securities and to the Trustee at least one Business Day prior to the redemption date.

 

At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at its expense, provided, however, that the Company has delivered to the Trustee, at least 10 days (unless a shorter time shall be acceptable to the Trustee) prior to the notice date, an Officer’s Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice.

 

Section 4.04                            EFFECT OF NOTICE OF REDEMPTION.  Once notice of redemption is sent as provided in Section 4.03, Securities of a series called for redemption become due and payable on the redemption date and at the redemption price. Except as otherwise provided in the supplemental indenture, Board Resolution or Officer’s Certificate for a series, a notice of redemption may not be conditional. Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus accrued interest to, but not including, the redemption date.

 

Section 4.05                            DEPOSIT OF REDEMPTION PRICE.  On or before 11:00 a.m., New York City time, on the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be redeemed on that date.

 

Section 4.06                            SECURITIES REDEEMED IN PART.  Upon surrender of a Security that is redeemed in part, the Trustee shall upon receipt of a Company Order authenticate for the Holder a new Security of the same series and the same maturity equal in principal amount to the unredeemed portion of the Security surrendered.

 

ARTICLE V
 SINKING FUNDS

 

Section 5.01                            APPLICABILITY OF SINKING FUND.

 

(a)                                 Redemption of Securities permitted or required pursuant to a sinking fund for the retirement of Securities of a series by the terms of such series of Securities shall be made in accordance with such terms of such series of Securities and this Article, except as otherwise specified pursuant to Section 3.01 for Securities of such series, provided, however, that if any such terms of a series of Securities shall conflict with any provision of this Article, the terms of such series shall govern.

 

(b)                                 The minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a “Mandatory Sinking Fund Payment,” and any payment in excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an “Optional Sinking Fund Payment.” If provided for by the terms of Securities of any series, the cash amount of any Mandatory Sinking Fund Payment may be subject to reduction as provided in Section 5.02.

 

Section 5.02                            MANDATORY SINKING FUND OBLIGATION.  The Company may, at its option, satisfy any Mandatory Sinking Fund Payment obligation, in whole or in part, with respect to a particular series of Securities by (a) delivering to the Trustee Securities of such series in transferable form theretofore purchased or otherwise acquired by the Company or redeemed at the election of the Company pursuant to Section 4.03 or (b) receiving credit for Securities of such series (not previously so credited) acquired by the Company and theretofore delivered to the Trustee.  The Trustee shall credit such

 

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Mandatory Sinking Fund Payment obligation with an amount equal to the Redemption Price specified in such Securities for redemption through operation of the sinking fund and the amount of such Mandatory Sinking Fund Payment shall be reduced accordingly.  If the Company shall elect to so satisfy any Mandatory Sinking Fund Payment obligation, it shall deliver to the Trustee not less than 45 days prior to the relevant sinking fund payment date a Company Order, which shall designate the Securities (and portions thereof, if any) so delivered or credited and which shall be accompanied by such Securities (to the extent not theretofore delivered) in transferable form.  In case of the failure of the Company, at or before the time so required, to give such notice and deliver such Securities the Mandatory Sinking Fund Payment obligation shall be paid entirely in moneys.

 

Section 5.03                            OPTIONAL REDEMPTION AT SINKING FUND REDEMPTION PRICE.  In addition to the sinking fund requirements of Section 5.02, to the extent, if any, provided for by the terms of a particular series of Securities, the Company may, at its option, make an Optional Sinking Fund Payment with respect to such Securities.  Unless otherwise provided by such terms, (a) to the extent that the right of the Company to make such Optional Sinking Fund Payment shall not be exercised in any year, it shall not be cumulative or carried forward to any subsequent year, and (b) such optional payment shall operate to reduce the amount of any Mandatory Sinking Fund Payment obligation as to Securities of the same series.  If the Company intends to exercise its right to make such optional payment in any year it shall deliver to the Trustee not less than 45 days prior to the relevant sinking fund payment date a Company Order stating that the Company will exercise such optional right, and specifying the amount which the Company will pay on or before the next succeeding sinking fund payment date.  Such Company Order shall also state that no Event of Default has occurred and is continuing.

 

Section 5.04                            APPLICATION OF SINKING FUND PAYMENT.

 

(a)                                 If the sinking fund payment or payments made in funds pursuant to either Section 5.02 or 5.03 with respect to a particular series of Securities plus any unused balance of any preceding sinking fund payments made in funds with respect to such series shall exceed $50,000 (or a lesser sum if the Company shall so request, or such equivalent sum for Securities denominated other than in U.S. Dollars), it shall be applied by the Trustee on the sinking fund payment date next following the date of such payment, unless the date of such payment shall be a sinking fund payment date, in which case such payment shall be applied on such sinking fund payment date, to the redemption of Securities of such series at the redemption price specified pursuant to Section 4.03.  The Trustee shall select, in the manner provided in Section 4.02, for redemption on such sinking fund payment date, a sufficient principal amount of Securities of such series to absorb said funds, as nearly as may be, and shall, at the expense and in the name of the Company, thereupon cause notice of redemption of the Securities to be given in substantially the manner provided in Section 4.03 for the redemption of Securities in part at the option of the Company, except that the notice of redemption shall also state that the Securities are being redeemed for the sinking fund.  Any sinking fund moneys not so applied by the Trustee to the redemption of Securities of such series shall be added to the next sinking fund payment received in funds by the Trustee and, together with such payment, shall be applied in accordance with the provisions of this Section 5.04.  Any and all sinking fund moneys held by the Trustee on the last sinking fund payment date with respect to Securities of such series, and not held for the payment or redemption of particular Securities of such series, shall be applied by the Trustee to the payment of the principal of the Securities of such series at Maturity.

 

(b)                                 On or prior to each sinking fund payment date, the Company shall pay to the Trustee a sum equal to all interest accrued to but not including the date fixed for redemption on Securities to be redeemed on such sinking fund payment date pursuant to this Section 5.04.

 

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(c)                                  The Trustee shall not redeem any Securities of a series with sinking fund moneys or mail any notice of redemption of Securities of such series by operation of the sinking fund during the continuance of a Default in payment of interest on any Securities of such series or of any Event of Default (other than an Event of Default occurring as a consequence of this paragraph) of which a Responsible Officer of the Trustee has actual knowledge, except that if the notice of redemption of any Securities of such series shall theretofore have been mailed in accordance with the provisions hereof, the Trustee shall redeem such Securities if funds sufficient for that purpose shall be deposited with the Trustee in accordance with the terms of this Article.  Except as aforesaid, any moneys in the sinking fund at the time any such Default or Event of Default shall occur and any moneys thereafter paid into the sinking fund shall, during the continuance of such Default or Event of Default, be held as security for the payment of all the Securities of such series; provided, however, that in case such Default or Event of Default shall have been cured or waived as provided herein, such moneys shall thereafter be applied on the next sinking fund payment date on which such moneys are required to be applied pursuant to the provisions of this Section 5.04.

 

ARTICLE VI
 PARTICULAR COVENANTS OF THE COMPANY

 

The Company hereby covenants and agrees as follows:

 

Section 6.01                            PAYMENTS OF SECURITIES.  The Company will duly and punctually pay the principal of and premium, if any, on each series of Securities, and the interest which shall have accrued thereon, at the dates and place and in the manner provided in the applicable Securities and in this Indenture.

 

Section 6.02                            PAYING AGENT.

 

(a)                                 The Company will maintain in each Place of Payment for any series of Securities, if any, an office or agency where Securities may be presented or surrendered for payment, where Securities of such series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served (the “Paying Agent”).  The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency.  If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as Paying Agent to receive all presentations, surrenders, notices and demands.

 

(b)                                 The Company may also from time to time designate different or additional offices or agencies where the Securities of any series may be presented or surrendered for any or all such purposes (in or outside of such Place of Payment), and may from time to time rescind any such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations described in the preceding paragraph.  The Company will give prompt written notice to the Trustee of any such additional designation or rescission of designation and of any change in the location of any such different or additional office or agency.  The Company shall enter into an appropriate agency agreement with any Paying Agent not a party to this Indenture.  The agreement shall implement the provisions of this Indenture that relate to such agent.  The Company shall notify the Trustee of the name and address of each such agent.  The Company or any Affiliate thereof may act as Paying Agent.

 

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Section 6.03                            TO HOLD PAYMENT IN TRUST.

 

(a)                                 If the Company or an Affiliate thereof shall at any time act as Paying Agent with respect to any series of Securities, then, on or before the date on which the principal of and premium, if any, or interest on any of the Securities of that series by their terms or as a result of the calling thereof for redemption shall become payable, the Company or such Affiliate will segregate and hold in trust for the benefit of the Holders of such Securities or the Trustee a sum sufficient to pay such principal and premium, if any, or interest which shall have so become payable until such sums shall be paid to such Holders or otherwise disposed of as herein provided, and will notify the Trustee of its action or failure to act in that regard.  Upon any proceeding under any federal bankruptcy laws with respect to the Company or any Affiliate thereof, if the Company or such Affiliate is then acting as Paying Agent, the Trustee shall automatically become the Paying Agent.

 

(b)                                 If the Company shall appoint, and at the time have, a Paying Agent for the payment of the principal of and premium, if any, or interest on any series of Securities, then prior to 11:00 a.m., New York City time, on the date on which the principal of and premium, if any, or interest on any of the Securities of that series shall become payable as aforesaid, whether by their terms or as a result of the calling thereof for redemption, the Company will deposit with such Paying Agent a sum sufficient to pay such principal and premium, if any, or interest, such sum to be held in trust for the benefit of the Holders of such Securities or the Trustee, and (unless such Paying Agent is the Trustee), the Company or any other obligor of such Securities will promptly notify the Trustee of its payment or failure to make such payment.

 

(c)                                  If the Paying Agent shall be other than the Trustee, the Company will cause such Paying Agent to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section 6.03, that such Paying Agent shall:

 

(i)                                     hold all moneys held by it for the payment of the principal of and premium, if any, or interest on the Securities of that series in trust for the benefit of the Holders of such Securities until such sums shall be paid to such Holders or otherwise disposed of as herein provided;

 

(ii)                                  give to the Trustee notice of any Default by the Company or any other obligor upon the Securities of that series in the making of any payment of the principal of and premium, if any, or interest on the Securities of that series; and

 

(iii)                               at any time during the continuance of any such Default, upon the written request of the Trustee, pay to the Trustee all sums so held in trust by such Paying Agent.

 

(d)                                 Anything in this Section 6.03 to the contrary notwithstanding, the Company may at any time, for the purpose of obtaining a release, satisfaction or discharge of this Indenture or for any other reason, pay or cause to be paid to the Trustee all sums held in trust by the Company or by any Paying Agent other than the Trustee as required by this Section 6.03, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent.

 

(e)                                  Subject to applicable unclaimed property laws, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of and premium, if any, or interest on any Security of any series and remaining unclaimed for two years after such principal and premium, if any, or interest has become due and payable shall be paid to the Company upon Company Order along with any interest that has accumulated thereon as a result of such money being invested at the direction of the Company, or (if then held by the Company) shall be discharged from such trust, and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to

 

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the Company for payment of such amounts without interest thereon, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease.

 

Section 6.04                            MERGER, CONSOLIDATION AND SALE OF ASSETS.  Except as otherwise contemplated by Section 3.01 with respect to any series of Securities:

 

(a)                                 The Company will not consolidate with any other entity or accept a merger of any other entity into the Company or permit the Company to be merged into any other entity, or sell other than for cash or lease all or substantially all its assets to another entity, or purchase all or substantially all the assets of another entity, unless (i) either the Company shall be the continuing entity, or the successor, transferee or lessee entity (if other than the Company) shall expressly assume, by indenture supplemental hereto executed and delivered by such entity prior to or simultaneously with such consolidation, merger, sale or lease, the due and punctual payment of the principal of and interest and premium, if any, on all the Securities, according to their tenor, and the due and punctual performance and observance of all other obligations to the Holders and the Trustee under this Indenture or under the Securities to be performed or observed by the Company; and (ii) immediately after such consolidation, merger, sale, lease or purchase the Company or the successor, transferee or lessee entity (if other than the Company) would not be in Default in the performance of any covenant or condition of this Indenture.  A purchase by a Subsidiary of all or substantially all of the assets of another entity shall not be deemed to be a purchase of such assets by the Company.  The Trustee shall have no obligation to verify that any such consolidation, merger, sale, lease, or purchase complies with this Section 6.04.

 

(b)                                 Upon any consolidation with or merger into any other entity, or any sale other than for cash, or any conveyance or lease of all or substantially all of the assets of the Company in accordance with this Section 6.04, the successor entity formed by such consolidation or into or with which the Company is merged or to which the Company is sold or to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor entity had been named as the Company herein, and thereafter, except in the case of a lease, the predecessor Company shall be relieved of all obligations and covenants under this Indenture and the Securities, and from time to time such entity may exercise each and every right and power of the Company under this Indenture, in the name of the Company, or in its own name; and any act or proceeding by any provision of this Indenture required or permitted to be done by the Board of Directors or any officer of the Company may be done with like force and effect by the like board or officer of any entity that shall at the time be the successor of the Company hereunder.  In the event of any such sale or conveyance, but not any such lease, the Company (or any successor entity which shall theretofore have become such in the manner described in this Section 6.04) shall be discharged from all obligations and covenants under this Indenture and the Securities and may thereupon be dissolved and liquidated.

 

Section 6.05                            COMPLIANCE CERTIFICATE.  So long as Securities are Outstanding, the Company shall furnish to the Trustee annually, within 120 days after the end of each fiscal year, a brief certificate from the principal executive officer, principal financial officer, principal accounting officer, any vice president or treasurer as to his or her knowledge of the Company’s compliance with all conditions and covenants under this Indenture (which compliance shall be determined without regard to any period of grace or requirement of notice provided under this Indenture) and, in the event of any Default, specifying each such Default and the nature and status thereof of which such person may have knowledge.  Such certificates need not comply with Section 16.01 of this Indenture.

 

Section 6.06                            CONDITIONAL WAIVER BY HOLDERS OF SECURITIES.  Anything in this Indenture to the contrary notwithstanding, the Company may fail or omit in any particular instance to

 

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comply with a covenant or condition set forth herein with respect to any series of Securities if the Company shall have obtained and filed with the Trustee, prior to the time of such failure or omission, evidence (as provided in Article VIII) of the consent of the Holders of a majority in aggregate principal amount of the Securities of such series at the time Outstanding, either waiving such compliance in such instance or generally waiving compliance with such covenant or condition, but no such waiver shall extend to or affect such covenant or condition except to the extent so expressly waived, or impair any right consequent thereon and, until such waiver shall have become effective, the obligations of the Company and the duties of the Trustee in respect of any such covenant or condition shall remain in full force and effect.

 

Section 6.07                            STATEMENT AS TO DEFAULT.  The Company shall deliver to the Trustee as soon as possible and in any event within 30 days after the Company becomes aware of the occurrence of any Event of Default, Default or an event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default, an Officer’s Certificate setting forth the details of such Event of Default or Default and the action which the Company proposes to take with respect thereto.

 

ARTICLE VII
 REMEDIES OF TRUSTEE AND SECURITYHOLDERS

 

Section 7.01                            EVENTS OF DEFAULT.  Except where otherwise indicated by the context or where the term is otherwise defined for a specific purpose, the term “Event of Default” as used in this Indenture with respect to Securities of any series shall mean one of the following described events unless it is either inapplicable to a particular series or it is specifically deleted or modified in the manner contemplated in Section 3.01:

 

(a)                                 the failure of the Company to pay any installment of interest on any Security of such series when and as the same shall become payable, which failure shall have continued unremedied for a period of 30 days;

 

(b)                                 the failure of the Company to pay the principal and premium, if any, of any Security of such series, when and as the same shall become payable, whether at Maturity as therein expressed, by call for redemption (otherwise than pursuant to a sinking fund), by declaration as authorized by this Indenture or otherwise;

 

(c)                                  the failure of the Company to pay a sinking fund installment, if any, when and as the same shall become payable by the terms of a Security of such series, which failure shall have continued unremedied for a period of 30 days;

 

(d)                                 the failure of the Company, subject to the provisions of Section 6.06, to perform any covenants or agreements contained in this Indenture (including any indenture supplemental hereto pursuant to which the Securities of such series were issued as contemplated by Section 3.01) (other than a covenant or agreement which has been expressly included in this Indenture solely for the benefit of a series of Securities other than that series and other than a covenant or agreement a default in the performance of which is elsewhere in this Section 7.01 specifically addressed), which failure shall not have been remedied, or without provision deemed to be adequate for the remedying thereof having been made, for a period of 90 days after written notice shall have been given to the Company by the Trustee or shall have been given to the Company and the Trustee by Holders of 25% or more in aggregate principal amount of the Securities of such series then Outstanding, specifying such failure, requiring the Company to remedy the same and stating that such notice is a “Notice of Default” hereunder;

 

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(e)                                  the entry by a court having jurisdiction in the premises of a decree or order for relief in respect of the Company in an involuntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee or sequestrator (or similar official) of the Company or of substantially all the property of the Company or ordering the winding-up or liquidation of its affairs and such decree or order shall remain unstayed and in effect for a period of 90 consecutive days;

 

(f)                                   the commencement by the Company of a voluntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by the Company to the entry of an order for relief in an involuntary case under any such law, or the consent by the Company to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian or sequestrator (or similar official) of the Company or of substantially all the property of the Company or the making by it of an assignment for the benefit of creditors or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company in furtherance of any action; or

 

(g)                                  the occurrence of any other Event of Default with respect to Securities of such series as contemplated by Section 3.01;

 

provided, however, that no event described in clause (d) (other than with respect to a payment default) or (g) above shall constitute an Event of Default hereunder until the Trustee or the Holders of 25% in principal amount of Securities Outstanding notify the Company of the default and the Company does not cure such default within any applicable time periods specified in clause (d) or (g), as applicable, after receipt of such notice.  A court of competent jurisdiction shall have the power to stay any cure period under this Indenture in the event of litigation regarding whether a Default or Event of Default has occurred.

 

Section 7.02                            ACCELERATION; RESCISSION AND ANNULMENT.

 

(a)                                 Except as otherwise provided as contemplated by Section 3.01 with respect to any series of Securities, if any one or more of the above-described Events of Default (other than an Event of Default specified in Section 7.01(e) or 7.01(f)) shall happen with respect to Securities of any series at the time Outstanding, then, and in each and every such case, during the continuance of any such Event of Default, the Trustee or the Holders of 25% or more in principal amount of the Securities of such series then Outstanding may declare the principal (or, if the Securities of that series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of that series) of and all accrued but unpaid interest on all the Securities of such series then Outstanding to be due and payable immediately by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) shall become immediately due and payable.  If an Event of Default specified in Section 7.01(e) or 7.01(f) occurs and is continuing, then in every such case, the principal amount of all of the Securities of that series then Outstanding shall automatically, and without any declaration or any other action on the part of the Trustee or any Holder, become due and payable immediately.  Upon payment of such amounts in the Currency in which such Securities are denominated (subject to Section 7.01 and except as otherwise provided pursuant to Section 3.01), all obligations of the Company in respect of the payment of principal of and interest on the Securities of such series shall terminate.

 

(b)                                 The provisions of Section 7.02(a), however, are subject to the condition that, at any time after the principal of all the Securities of such series, to which any one or more of the above-

 

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described Events of Default is applicable, shall have been so declared to be due and payable, and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter provided in this Article, the Event of Default giving rise to such declaration of acceleration shall, without further act, be deemed to have been waived, and such declaration and its consequences shall, without further act, be deemed to have been rescinded and annulled, if:

 

(i)                                     the Company has paid or deposited with the Trustee or Paying Agent a sum in the Currency in which such Securities are denominated (subject to Section 7.01 and except as otherwise provided pursuant to Section 3.01) sufficient to pay

 

(A)                               all amounts owing the Trustee and any predecessor trustee hereunder under Section 11.01(a) (provided, however, that all sums payable under this clause (A) shall be paid in U.S. Dollars);

 

(B)                               all arrears of interest, if any, upon all the Securities of such series (with interest, to the extent that interest thereon shall be legally enforceable, on any overdue installment of interest at the rate borne by such Securities at the rate or rates prescribed therefor in such Securities); and

 

(C)                               the principal of and premium, if any, on any Securities of such series that have become due otherwise than by such declaration of acceleration and interest thereon;

 

(D)                               all other sums payable under this Indenture (except the principal of the Securities of such series which would not be due and payable were it not for such declaration); and

 

(ii)                                  every other Default and Event of Default with respect to Securities of that series, other than the non-payment of the principal of Securities of that series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 7.06.

 

(c)                                  No such rescission shall affect any subsequent default or impair any right consequent thereon.

 

(d)                                 Any declaration by the Trustee pursuant to this Section 7.02 shall be by written notice to the Company, and any declaration or waiver by the Holders of Securities of any series pursuant to this Section 7.02 shall be by written notice to the Company and the Trustee.

 

(e)                                  For all purposes under this Indenture, if a portion of the principal of any Original Issue Discount Securities shall have been accelerated and declared due and payable pursuant to the provisions hereof, then, from and after such declaration, unless such declaration has been rescinded and annulled, the principal amount of such Original Issue Discount Securities shall be deemed, for all purposes hereunder, to be such portion of the principal thereof as shall be due and payable as a result of such acceleration, and payment of such portion of the principal thereof as shall be due and payable as a result of such acceleration, together with interest, if any, thereon and all other amounts owing thereunder, shall constitute payment in full of such Original Issue Discount Securities.

 

Section 7.03                            OTHER REMEDIES.  If the Company shall fail for a period of 30 days to pay any installment of interest on the Securities of any series or shall fail to pay the principal of and premium, if any, on any of the Securities of such series when and as the same shall become due and payable,

 

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whether at Maturity, or by call for redemption (other than pursuant to the sinking fund), by declaration as authorized by this Indenture, or otherwise, or shall fail for a period of 30 days to make any required sinking fund payment as to a series of Securities, then, upon demand of the Trustee, the Company will pay to the Paying Agent for the benefit of the Holders of Securities of such series then Outstanding the whole amount which then shall have become due and payable on all the Securities of such series, with interest on the overdue principal and premium, if any, and (so far as the same may be legally enforceable) on the overdue installments of interest at the rate borne by the Securities of such series, and all amounts owing the Trustee and any predecessor trustee hereunder under Section 11.01(a).

 

In case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceeding at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company or any other obligor upon the Securities of such series, and collect the moneys adjudged or decreed to be payable out of the property of the Company or any other obligor upon the Securities of such series, wherever situated, in the manner provided by law.  Every recovery of judgment in any such action or other proceeding, subject to the payment to the Trustee of all amounts owing the Trustee and any predecessor trustee hereunder under Section 11.01(a), shall be for the ratable benefit of the Holders of such series of Securities which shall be the subject of such action or proceeding.  All rights of action upon or under any of the Securities or this Indenture may be enforced by the Trustee without the possession of any of the Securities and without the production of any thereof at any trial or any proceeding relative thereto.

 

Section 7.04                            TRUSTEE AS ATTORNEY-IN-FACT.  The Trustee is hereby appointed, and each and every Holder of the Securities, by receiving and holding the same, shall be conclusively deemed to have appointed the Trustee, the true and lawful attorney-in-fact of such Holder, with authority to make or file (whether or not the Company shall be in Default in respect of the payment of the principal of, or interest on, any of the Securities), in its own name and as trustee of an express trust or otherwise as it shall deem advisable, in any receivership, insolvency, liquidation, bankruptcy, reorganization or other judicial proceeding relative to the Company or any other obligor upon the Securities or to their respective creditors or property, any and all claims, proofs of claim, proofs of debt, petitions, consents, other papers and documents and amendments of any thereof, as may be necessary or advisable in order to have the claims of the Trustee and any predecessor trustee hereunder and of the Holders of the Securities allowed in any such proceeding and to collect and receive any moneys or other property payable or deliverable on any such claim, and to execute and deliver any and all other papers and documents and to do and perform any and all other acts and things, as it may deem necessary or advisable in order to enforce in any such proceeding any of the claims of the Trustee and any predecessor trustee hereunder and of any of such Holders in respect of any of the Securities; and any receiver, assignee, trustee, custodian or debtor in any such proceeding is hereby authorized, and each and every taker or Holder of the Securities, by receiving and holding the same, shall be conclusively deemed to have authorized any such receiver, assignee, trustee, custodian or debtor, to make any such payment or delivery only to or on the order of the Trustee, and to pay to the Trustee any amount due it and any predecessor trustee hereunder under Section 11.01(a); provided, however, that nothing herein contained shall be deemed to authorize or empower the Trustee to consent to or accept or adopt, on behalf of any Holder of Securities, any plan of reorganization or readjustment affecting the Securities or the rights of any Holder thereof, or to authorize or empower the Trustee to vote in respect of the claim of any Holder of any Securities in any such proceeding.

 

Section 7.05                            PRIORITIES.  Any moneys or properties collected by the Trustee with respect to a series of Securities under this Article VII shall be applied in the order following, at the date or dates fixed by the Trustee for the distribution of such moneys or properties and, in the case of the distribution of such moneys or properties on account of the Securities of any series, upon presentation of the Securities

 

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of such series, and stamping thereon the payment, if only partially paid, and upon surrender thereof, if fully paid:

 

First:  To the payment of all amounts due to the Trustee and any predecessor trustee hereunder under Section 11.01(a).

 

Second:  In case the principal of the Outstanding Securities of such series shall not have become due and be unpaid, to the payment of interest on the Securities of such series, in the chronological order of the Maturity of the installments of such interest, with interest (to the extent that such interest has been collected by the Trustee) upon the overdue installments of interest at the rate borne by such Securities, such payments to be made ratably to the Persons entitled thereto.

 

Third:  In case the principal of the Outstanding Securities of such series shall have become due, by declaration or otherwise, to the payment of the whole amount then owing and unpaid upon the Securities of such series for principal and premium, if any, and interest, with interest on the overdue principal and premium, if any, and (to the extent that such interest has been collected by the Trustee) upon overdue installments of interest at the rate borne by the Securities of such series, and in case such moneys shall be insufficient to pay in full the whole amounts so due and unpaid upon the Securities of such series, then to the payment of such principal and premium, if any, and interest without preference or priority of principal and premium, if any, over interest, or of interest over principal and premium, if any, or of any installment of interest over any other installment of interest, or of any Security of such series over any other Security of such series, ratably to the aggregate of such principal and premium, if any, and accrued and unpaid interest.

 

Any surplus then remaining shall be paid to the Company or as directed by a court of competent jurisdiction.

 

Section 7.06                            CONTROL BY SECURITYHOLDERS; WAIVER OF PAST DEFAULTS.  The Holders of a majority in principal amount of the Securities of any series at the time Outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee hereunder, or of exercising any trust or power hereby conferred upon the Trustee with respect to the Securities of such series, provided, however, that, subject to the provisions of Sections 11.01 and 11.02, the Trustee shall have the right to decline to follow any such direction if the Trustee being advised by counsel determines that the action so directed may not lawfully be taken or would be unduly prejudicial to Holders not joining in such direction or would involve the Trustee in personal liability.  Prior to any declaration accelerating the Maturity of the Securities of any series, the Holders of a majority in aggregate principal amount of such series of Securities at the time Outstanding may on behalf of the Holders of all of the Securities of such series waive any past Default or Event of Default hereunder and its consequences except a Default in the payment of interest or any premium on or the principal of the Securities of such series.  Upon any such waiver the Company, the Trustee and the Holders of the Securities of such series shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon.  Whenever any Default or Event of Default hereunder shall have been waived as permitted by this Section 7.06, said Default or Event of Default shall for all purposes of the Securities of such series and this Indenture be deemed to have been cured and to be not continuing.

 

Section 7.07                            LIMITATION ON SUITS.  No Holder of any Security of any series shall have any right to institute any action, suit or proceeding at law or in equity for the execution of any trust hereunder or for the appointment of a receiver or for any other remedy hereunder, in each case with respect to an Event of Default with respect to such series of Securities, unless such Holder previously shall have given to the Trustee written notice of one or more of the Events of Default herein specified

 

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with respect to such series of Securities, and unless also the Holders of 25% in principal amount of the Securities of such series then Outstanding shall have requested the Trustee in writing to take action in respect of the matter complained of, and unless also there shall have been offered to the Trustee security and indemnity satisfactory to it against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee, for 60 days after receipt of such notification, request and offer of indemnity, shall have neglected or refused to institute any such action, suit or proceeding; and such notification, request and offer of indemnity are hereby declared in every such case to be conditions precedent to any such action, suit or proceeding by any Holder of any Security of such series; it being understood and intended that no one or more of the Holders of Securities of such series shall have any right in any manner whatsoever by his, her, its or their action to enforce any right hereunder, except in the manner herein provided, and that every action, suit or proceeding at law or in equity shall be instituted, had and maintained in the manner herein provided and for the equal benefit of all Holders of the Outstanding Securities of such series; provided, however, that nothing in this Indenture or in the Securities of such series shall affect or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on the Securities of such series to the respective Holders of such Securities at the respective due dates in such Securities stated, or affect or impair the right, which is also absolute and unconditional, of such Holders to institute suit to enforce the payment thereof.

 

Section 7.08                            UNDERTAKING FOR COSTS.  All parties to this Indenture and each Holder of any Security, by such Holder’s acceptance thereof, shall be deemed to have agreed that any court may in its discretion require, in any action, suit or proceeding for the enforcement of any right or remedy under this Indenture, or in any action, suit or proceeding against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such action, suit or proceeding of an undertaking to pay the costs of such action, suit or proceeding, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such action, suit or proceeding, having due regard to the merits and good faith of the claims or defenses made by such party litigant; provided, however, that the provisions of this Section 7.08 shall not apply to any action, suit or proceeding instituted by the Trustee, to any action, suit or proceeding instituted by any one or more Holders of Securities holding in the aggregate more than 10% in principal amount of the Securities of any series Outstanding, or to any action, suit or proceeding instituted by any Holder of Securities of any series for the enforcement of the payment of the principal of or premium, if any, or the interest on, any of the Securities of such series, on or after the respective due dates expressed in such Securities.

 

Section 7.09                            REMEDIES CUMULATIVE.  No remedy herein conferred upon or reserved to the Trustee or to the Holders of Securities of any series is intended to be exclusive of any other remedy or remedies, and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute.  No delay or omission of the Trustee or of any Holder of the Securities of any series to exercise any right or power accruing upon any Default or Event of Default shall impair any such right or power or shall be construed to be a waiver of any such Default or Event of Default or an acquiescence therein; and every power and remedy given by this Article VII to the Trustee and to the Holders of Securities of any series, respectively, may be exercised from time to time and as often as may be deemed expedient by the Trustee or by the Holders of Securities of such series, as the case may be.  In case the Trustee or any Holder of Securities of any series shall have proceeded to enforce any right under this Indenture and the proceedings for the enforcement thereof shall have been discontinued or abandoned because of waiver or for any other reason or shall have been adjudicated adversely to the Trustee or to such Holder of Securities, then and in every such case the Company, the Trustee and the Holders of the Securities of such series shall severally and respectively be restored to their former positions and rights hereunder, and thereafter all rights, remedies and powers of the Trustee and the Holders of the Securities of such series shall continue as though no such proceedings had been taken, except as to any matters so waived or adjudicated.

 

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ARTICLE VIII
 CONCERNING THE SECURITYHOLDERS

 

Section 8.01                            EVIDENCE OF ACTION OF SECURITYHOLDERS.  Whenever in this Indenture it is provided that the Holders of a specified percentage or a majority in aggregate principal amount of the Securities or of any series of Securities may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action), the fact that at the time of taking any such action the Holders of such specified percentage or majority have joined therein may be evidenced by (a) any instrument or any number of instruments of similar tenor executed by Securityholders in person, by an agent or by a proxy appointed in writing, including through an electronic system for tabulating consents operated by the Depositary for such series or otherwise (such action becoming effective, except as herein otherwise expressly provided, when such instruments or evidence of electronic consents are delivered to the Trustee and, where it is hereby expressly required, to the Company), or (b) by the record of the Holders of Securities voting in favor thereof at any meeting of Securityholders duly called and held in accordance with the provisions of Article IX, or (c) by a combination of such instrument or instruments and any such record of such a meeting of Securityholders.

 

Section 8.02                            PROOF OF EXECUTION OR HOLDING OF SECURITIES.  Proof of the execution of any instrument by a Securityholder or his, her or its agent or proxy and proof of the holding by any Person of any of the Securities shall be sufficient if made in the following manner:

 

(a)                                 The fact and date of the execution by any Person of any such instrument may be proved (i) by the certificate of any notary public or other officer in any jurisdiction who, by the laws thereof, has power to take acknowledgments or proof of deeds to be recorded within such jurisdiction, that the Person who signed such instrument did acknowledge before such notary public or other officer the execution thereof, or (ii) by the affidavit of a witness of such execution sworn to before any such notary or other officer.  Where such execution is by a Person acting in other than his or her individual capacity, such certificate or affidavit shall also constitute sufficient proof of his or her authority.

 

(b)                                 The ownership of Securities of any series shall be proved by the Register of such Securities or by a certificate of the Registrar for such series.

 

(c)                                  The record of any Holders’ meeting shall be proved in the manner provided in Section 9.06.

 

(d)                                 The Trustee may require such additional proof of any matter referred to in this Section 8.02 as it shall deem appropriate or necessary.

 

(e)                                  If the Company shall solicit from the Holders of Securities of any series any action, the Company may, at its option fix in advance a record date for the determination of Holders of Securities entitled to take such action, but the Company shall have no obligation to do so.  Any such record date shall be fixed at the Company’s discretion.  If such a record date is fixed, such action may be sought or given before or after the record date, but only the Holders of Securities of record at the close of business on such record date shall be deemed to be Holders of Securities for the purpose of determining whether Holders of the requisite proportion of Outstanding Securities of such series have authorized or agreed or consented to such action, and for that purpose the Outstanding Securities of such series shall be computed as of such record date.

 

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Section 8.03                            PERSONS DEEMED OWNERS.

 

(a)                                 The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name any Security is registered as the owner of such Security for the purpose of receiving payment of principal of and premium, if any, and (subject to Section 3.08) interest, if any, on, such Security and for all other purposes whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary.  All payments made to any Holder, or upon his, her or its order, shall be valid, and, to the extent of the sum or sums paid, effectual to satisfy and discharge the liability for moneys payable upon such Security.

 

(b)                                 None of the Company, the Trustee, any Paying Agent or the Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests in a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

 

Section 8.04                            EFFECT OF CONSENTS.  After an amendment, supplement, waiver or other action becomes effective as to any series of Securities, a consent to it by a Holder of such series of Securities is a continuing consent conclusive and binding upon such Holder and every subsequent Holder of the same Securities or portion thereof, and of any Security issued upon the transfer thereof or in exchange therefor or in place thereof, even if notation of the consent is not made on any such Security.  An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter binds every Holder.

 

ARTICLE IX
 SECURITYHOLDERS’ MEETINGS

 

Section 9.01                            PURPOSES OF MEETINGS.  A meeting of Securityholders of any or all series may be called at any time and from time to time pursuant to the provisions of this Article IX for any of the following purposes:

 

(a)                                 to give any notice to the Company or to the Trustee, or to give any directions to the Trustee, or to consent to the waiving of any Default or Event of Default hereunder and its consequences, or to take any other action authorized to be taken by Securityholders pursuant to any of the provisions of Article VIII;

 

(b)                                 to remove the Trustee and nominate a successor trustee pursuant to the provisions of Article XI;

 

(c)                                  to consent to the execution of an Indenture or of indentures supplemental hereto pursuant to the provisions of Section 14.02; or

 

(d)                                 to take any other action authorized to be taken by or on behalf of the Holders of any specified aggregate principal amount of the Securities of any one or more or all series, as the case may be, under any other provision of this Indenture or under applicable law.

 

Section 9.02                            CALL OF MEETINGS BY TRUSTEE.  The Trustee may at any time call a meeting of all Securityholders of all series that may be affected by the action proposed to be taken, to take any action specified in Section 9.01, to be held at such time and at such place as the Trustee shall determine.  Notice of every meeting of the Securityholders of a series, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be mailed to Holders of Securities of such series at their addresses as they shall appear on the Register of the

 

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Company.  Such notice shall be mailed not less than 20 nor more than 90 days prior to the date fixed for the meeting.

 

Section 9.03                            CALL OF MEETINGS BY COMPANY OR SECURITYHOLDERS.  In case at any time the Company or the Holders of at least 10% in aggregate principal amount of the Securities of a series (or of all series, as the case may be) then Outstanding that may be affected by the action proposed to be taken, shall have requested the Trustee to call a meeting of Securityholders of such series (or of all series), by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed the notice of such meeting within 20 days after receipt of such request, then the Company or such Securityholders may determine the time and the place for such meeting and may call such meeting to take any action authorized in Section 9.01, by mailing notice thereof as provided in Section 9.02.

 

Section 9.04                            QUALIFICATIONS FOR VOTING.  To be entitled to vote at any meeting of Securityholders, a Person shall (a) be a Holder of one or more Securities affected by the action proposed to be taken at the meeting or (b) be a Person appointed by an instrument in writing as proxy by a Holder of one or more such Securities.  The only Persons who shall be entitled to be present or to speak at any meeting of Securityholders shall be the Persons entitled to vote at such meeting and their counsel and any representatives of the Trustee and its counsel and any representatives of the Company and its counsel.

 

Section 9.05                            REGULATION OF MEETINGS.

 

(a)                                 Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable rules as it may deem advisable for any meeting of Securityholders, in regard to proof of the holding of Securities and of the appointment of proxies, and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem fit.

 

(b)                                 The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Securityholders as provided in Section 9.03, in which case the Company or the Securityholders calling the meeting, as the case may be, shall in like manner appoint a temporary chair.  A permanent chairman and a permanent secretary of the meeting shall be elected by majority vote of the meeting.

 

(c)                                  At any meeting of Securityholders of a series, each Securityholder of such series of such Securityholder’s proxy shall be entitled to one vote for each $1,000 principal amount of Securities of such series Outstanding held or represented by him; provided, however, that no vote shall be cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled by the chairman of the meeting to be not Outstanding.  The chairman of the meeting shall have no right to vote other than by virtue of Securities of such series held by him or her or instruments in writing as aforesaid duly designating him or her as the Person to vote on behalf of other Securityholders.  At any meeting of the Securityholders duly called pursuant to the provisions of Section 9.02 or 9.03 the presence of Persons holding or representing Securities in an aggregate principal amount sufficient to take action upon the business for the transaction of which such meeting was called shall be necessary to constitute a quorum, and any such meeting may be adjourned from time to time by a majority of those present, whether or not constituting a quorum, and the meeting may be held as so adjourned without further notice.

 

Section 9.06                            VOTING.  The vote upon any resolution submitted to any meeting of Securityholders of a series shall be by written ballots on which shall be subscribed the signatures of the Holders of Securities of such series or of their representatives by proxy and the principal amounts of the Securities of such series held or represented by them.  The permanent chairman of the meeting shall

 

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appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting.  A record in duplicate of the proceedings of each meeting of Securityholders shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was mailed as provided in Section 9.02.  The record shall show the principal amounts of the Securities voting in favor of or against any resolution.  The record shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one of the duplicates shall be delivered to the Company and the other to the Trustee to be preserved by the Trustee.

 

Any record so signed and verified shall be conclusive evidence of the matters therein stated.

 

Section 9.07                            NO DELAY OF RIGHTS BY MEETING.  Nothing contained in this Article IX shall be deemed or construed to authorize or permit, by reason of any call of a meeting of Securityholders of any series or any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the exercise of any right or rights conferred upon or reserved to the Trustee or to the Securityholders of such series under any of the provisions of this Indenture or of the Securities of such series.

 

ARTICLE X
 REPORTS BY THE COMPANY AND THE TRUSTEE AND 
 SECURITYHOLDERS’ LISTS

 

Section 10.01                     REPORTS BY TRUSTEE.

 

(a)                                 So long as any Securities are outstanding, the Trustee shall transmit to Holders such reports concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the manner provided therein.  If required by Section 313(a) of the Trust Indenture Act, the Trustee shall, within 60 days after each anniversary following the date of the issuance of any Securities, deliver to Holders a brief report which complies with the provisions of such Section 313(a).

 

(b)                                 The Trustee shall, at the time of the transmission to the Holders of Securities of any report pursuant to the provisions of this Section 10.01, file a copy of such report with each stock exchange upon which the Securities are listed, if any, and also with the SEC in respect of a Security listed and registered on a national securities exchange, if any.  The Company agrees to notify the Trustee when, as and if the Securities become listed on any stock exchange.

 

The Company will reimburse the Trustee for all expenses incurred in the preparation and transmission of any report pursuant to the provisions of this Section 10.01 and of Section 10.02.

 

Section 10.02                     REPORTS BY THE COMPANY.

 

(a)                                 The Company shall deliver to the Trustee and file with the SEC, and transmit to Holders, such information, documents and other reports, and such summaries thereof, as may be required pursuant to the Trust Indenture Act at the times and in the manner provided in the Trust Indenture Act; provided that, unless available on EDGAR, any such information, documents or reports required to be filed with the SEC pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee within 30 days after the same is filed with the SEC.  The Trustee shall have no responsibility to determine whether any information is available on EDGAR.  The Company shall be deemed to have complied with

 

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the requirements of this Section 10.02(a) by filing any information, documents or reports required to be delivered hereunder with the SEC.

 

(b)                                 The Company shall deliver to the Trustee and file with the SEC, in the manner and to the extent provided in Section 314(a) of the Trust Indenture Act, such additional information, documents and reports with respect to compliance by the Company with the conditions and covenants provided for in this Indenture.

 

(c)                                  Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates).

 

Section 10.03                     SECURITYHOLDERS’ LISTS.  The Company covenants and agrees that it will furnish or cause to be furnished to the Trustee:

 

(a)                                 semi-annually, within 15 days after each Record Date, but in any event not less frequently than semi-annually, a list in such form as the Trustee may reasonably require of the names and addresses of the Holders of Securities to which such Record Date applies, as of such Record Date, and

 

(b)                                 at such other times as the Trustee may request in writing, within 30 days after receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished;

 

provided, however, that so long as the Trustee shall be the Registrar, such lists shall not be required to be furnished.

 

ARTICLE XI
 CONCERNING THE TRUSTEE

 

Section 11.01                     RIGHTS OF TRUSTEES; COMPENSATION AND INDEMNITY.  The Trustee accepts the trusts created by this Indenture upon the terms and conditions hereof, including the following, to all of which the parties hereto and the Holders from time to time of the Securities agree:

 

(a)                                 The Trustee shall be entitled to such compensation as the Company and the Trustee shall from time to time agree to in writing for all services rendered by it hereunder (including in any agent capacity in which it acts).  The compensation of the Trustee shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust.  The Company shall reimburse the Trustee promptly upon its request for all reasonable out-of-pocket expenses, disbursements and advances incurred or made by the Trustee (including the reasonable expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or willful misconduct, as determined by a final non-appealable order of a court of competent jurisdiction.

 

The Company also agrees to indemnify each of the Trustee and any predecessor Trustee hereunder for, and to hold it harmless against, any and all loss, liability, damage, claim, or expense incurred without its own negligence or willful misconduct, as determined by a final non-appealable order of a court of competent jurisdiction, arising out of or in connection with the acceptance or administration of the trust or trusts hereunder and the performance of its duties (including in any agent capacity in which it acts), as well as the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder.  The Trustee shall notify the Company

 

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promptly of any third party claim for which it may seek indemnity.  The Company shall defend any claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel of its selection and the Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld.

 

As security for the performance of the obligations of the Company under this Section 11.01(a), the Trustee shall have a lien upon all property and funds held or collected by the Trustee as such, except funds held in trust by the Trustee to pay principal of and interest on any particular Securities.  Notwithstanding any provisions of this Indenture to the contrary, the obligations of the Company to compensate and indemnify the Trustee under this Section 11.01(a) shall survive the resignation or removal of the Trustee and any satisfaction and discharge under Article XII.  When the Trustee incurs expenses or renders services after an Event of Default specified in clause (e) or (f) of Section 7.01 occurs, the expenses and compensation for the services are intended to constitute expenses of administration under any applicable federal or state bankruptcy, insolvency or similar laws.

 

(b)                                 The Trustee may execute any of the trusts or powers hereof and perform any duty hereunder either directly or by its agents and attorneys and shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder.

 

(c)                                  The Trustee shall not be responsible in any manner whatsoever for the correctness of the recitals herein or in the Securities (except its certificates of authentication thereon) contained, all of which are made solely by the Company; and the Trustee shall not be responsible or accountable in any manner whatsoever for or with respect to the validity or execution or sufficiency of this Indenture or of the Securities (except its certificates of authentication thereon), and the Trustee makes no representation with respect thereto, except that the Trustee represents that it is duly authorized to execute and deliver this Indenture, authenticate the Securities and perform its obligations hereunder and that the statements made by it in a Statement of Eligibility on Form T-1 supplied to the Company are true and accurate, subject to the qualifications set forth therein.  The Trustee shall not be accountable for the use or application by the Company of any Securities, or the proceeds of any Securities, authenticated and delivered by the Trustee in conformity with the provisions of this Indenture.

 

(d)                                 The Trustee may consult with counsel of its selection, and the advice or opinion of counsel relating to this Indenture or the Securities shall be full and complete authorization and protection from liability in respect of any action taken, omitted or suffered by it hereunder or under the Securities in good faith and in accordance with the advice or opinion of such counsel.

 

(e)                                  The Trustee, to the extent permitted by Section 11.02, may rely upon the certificate of the Secretary or one of the Assistant Secretaries of the Company as to the adoption of any Board Resolution or resolution of the stockholders of the Company, and any request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by, and whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, offering or omitting any action hereunder, the Trustee may rely upon, an Officer’s Certificate of the Company (unless other evidence in respect thereof be herein specifically prescribed).

 

(f)                                   Subject to Section 11.04, the Trustee or any agent of the Trustee, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject to Sections 310(b) and 311 of the Trust Indenture Act, may otherwise deal with the Company with the same rights it would have had if it were not the Trustee or such agent.

 

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(g)                                  Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law.  The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed with the Company.

 

(h)                                 Any action taken by the Trustee pursuant to any provision hereof at the request or with the consent of any Person who at the time is the Holder of any Security shall be conclusive and binding in respect of such Security upon all future Holders thereof or of any Security or Securities which may be issued for or in lieu thereof in whole or in part, whether or not such Security shall have noted thereon the fact that such request or consent had been made or given.

 

(i)                                     The Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, debenture or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties.

 

(j)                                    The Trustee shall not be under any obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Holders of the Securities, pursuant to any provision of this Indenture, unless one or more of the Holders of the Securities shall have offered to the Trustee security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities which may be incurred by it therein or thereby.

 

(k)                                 The Trustee shall not be liable for any action taken or omitted by it in good faith and believed by it to be authorized or within its discretion or within the rights or powers conferred upon it by this Indenture.

 

(l)                                     The Trustee shall not be deemed to have knowledge or notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless the Holders of not less than 25% of the Outstanding Securities notify the Trustee in writing thereof.

 

(m)                             Subject to the provisions of the first paragraph of Section 11.02, the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of Indebtedness or other paper or document, but the Trustee, may, but shall not be required to, make further inquiry or investigation into such facts or matters as it may see fit.

 

(n)                                 The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder.

 

(o)                                 The Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder.

 

(p)                                 The Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture (i.e., an incumbency certificate).

 

(q)                                 The Trustee will not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within the rights or powers conferred upon it by this Indenture.

 

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(r)                                    In no event shall the Trustee be liable to any Person for special, punitive, indirect, consequential or incidental loss or damage of any kind whatsoever (including, but not limited to, lost profits), even if the Trustee has been advised of the likelihood of such loss or damage.

 

Section 11.02                     DUTIES OF TRUSTEE.

 

(a)                                 If one or more of the Events of Default specified in Section 7.01 with respect to the Securities of any series shall have happened, then, during the continuance thereof, the Trustee shall, with respect to such Securities, exercise such of the rights and powers vested in it by this Indenture, and shall use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

 

(b)                                 None of the provisions of this Indenture shall be construed as relieving the Trustee from liability for its own negligent action, negligent failure to act, or its own willful misconduct, except that, anything in this Indenture contained to the contrary notwithstanding,

 

(i)                                     unless and until an Event of Default specified in Section 7.01 with respect to the Securities of any series shall have happened which at the time is continuing,

 

(A)                               the Trustee undertakes to perform such duties and only such duties with respect to the Securities of that series as are specifically set out in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee, whose duties and obligations shall be determined solely by the express provisions of this Indenture; and

 

(B)                               the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, in the absence of bad faith on the part of the Trustee, upon certificates and opinions furnished to it pursuant to the express provisions of this Indenture; but in the case of any such certificates or opinions which, by the provisions of this Indenture, are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the form requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein);

 

(ii)                                  the Trustee shall not be liable to any Holder of Securities or to any other Person for any error of judgment made in good faith by a Responsible Officer or Officers of the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; and

 

(iii)                               the Trustee shall not be liable to any Holder of Securities or to any other Person with respect to any action taken or omitted to be taken by it in good faith, in accordance with the direction of Securityholders given as provided in Section 7.06, relating to the time, method and place of conducting any proceeding for any remedy available to it or exercising any trust or power conferred upon it by this Indenture.

 

(c)                                  None of the provisions of this Indenture shall require the Trustee to expend or risk its own funds or otherwise to incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for

 

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believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

 

(d)                                 Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section 11.02.

 

Section 11.03                     NOTICE OF DEFAULTS.  Within 90 days after the occurrence thereof (or promptly after the Trustee obtains actual knowledge thereof if later), and if actually known to the Trustee, the Trustee shall give to the Holders of the Securities of a series notice of each Default or Event of Default with respect to the Securities of such series known to the Trustee, by transmitting such notice to Holders at their addresses as the same shall then appear on the Register of the Company, unless such Default shall have been cured or waived before the giving of such notice (the term “Default” being hereby defined to be the events specified in Section 7.01, which are, or after notice or lapse of time or both would become, Events of Default as defined in said Section).  Except in the case of a Default or Event of Default in payment of the principal of, premium, if any, or interest on any of the Securities of such series when and as the same shall become payable, or to make any sinking fund payment as to Securities of the same series, the Trustee shall be protected in withholding such notice, if and so long as a Responsible Officer or Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interests of the Holders of the Securities of such series.

 

Section 11.04                     ELIGIBILITY; DISQUALIFICATION.

 

(a)                                 The Trustee shall at all times satisfy the requirements of TIA Section 310(a).  The Trustee shall have a combined capital and surplus of at least $50 million as set forth in its most recent published annual report of condition, and shall have a Corporate Trust Office.  If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 11.04, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.

 

(b)                                 The Trustee shall comply with TIA Section 310(b); provided, however, that there shall be excluded from the operation of TIA Section 310(b)(i) any indenture or indentures under which other securities or certificates of interest or participation in other securities of the Company are outstanding if the requirements for such exclusion set forth in TIA Section 310(b)(i) are met.  If the Trustee has or shall acquire a conflicting interest within the meaning of Section 310(b) of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.  If Section 310(b) of the Trust Indenture Act is amended any time after the date of this Indenture to change the circumstances under which a Trustee shall be deemed to have a conflicting interest with respect to the Securities of any series or to change any of the definitions in connection therewith, this Section 11.04 shall be automatically amended to incorporate such changes.

 

Section 11.05                     RESIGNATION AND NOTICE; REMOVAL.  The Trustee, or any successor to it hereafter appointed, may at any time resign and be discharged of the trusts hereby created with respect to any one or more or all series of Securities by giving to the Company notice in writing and by mailing notice thereof to the holders of Securities of such series at their addresses as the same shall then appear in the Register of the Company.  Such resignation shall take effect upon the appointment of a successor Trustee and the acceptance of such appointment by such successor Trustee.  Any Trustee hereunder may be removed with respect to any series of Securities at any time by the filing with such Trustee and the delivery to the Company of an instrument or instruments in writing signed by the Holders of a majority in principal amount of the Securities of such series then Outstanding, specifying such removal and the date when it shall become effective.

 

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If at any time:

 

(a)                                 the Trustee shall fail to comply with the provisions of TIA Section 310(b) after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months (or, if it is a shorter period, the period since the initial issuance of the Securities of such series), or

 

(b)                                 the Trustee shall cease to be eligible under Section 11.04 and shall fail to resign after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months (or, if it is a shorter period, the period since the initial issuance of the Securities of such series), or

 

(c)                                  the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then, in any such case, (i) the Company by written notice to the Trustee may remove the Trustee and appoint a successor Trustee with respect to all Securities, or (ii) subject to TIA Section 315(e), any Securityholder who has been a bona fide Holder of a Security for at least six months (or, if it is a shorter period, the period since the initial issuance of the Securities of such series) may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee with respect to all Securities and the appointment of a successor Trustee or Trustees.

 

Upon its resignation or removal, any Trustee shall be entitled to the payment of reasonable compensation for the services rendered hereunder by such Trustee and to the payment of all reasonable expenses incurred hereunder and all moneys then due to it hereunder.  The Trustee’s rights to indemnification provided in Section 11.01(a) shall survive its resignation or removal.

 

Section 11.06                     SUCCESSOR TRUSTEE BY APPOINTMENT.

 

(a)                                 In case at any time the Trustee shall resign, or shall be removed (unless the Trustee shall be removed as provided in Section 11.04(b), in which event the vacancy shall be filled as provided in said subdivision), or shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or if a receiver of the Trustee or of its property shall be appointed, or if any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation with respect to the Securities of one or more series, a successor Trustee with respect to the Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect to the Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the Securities of any series) may be appointed by the Holders of a majority in principal amount of the Securities of that or those series then Outstanding, by an instrument or instruments in writing signed in duplicate by such Holders and filed, one original thereof with the Company and the other with the successor Trustee; but, until a successor Trustee shall have been so appointed by the Holders of Securities of that or those series as herein authorized, the Company, or, in case all or substantially all the assets of the Company shall be in the possession of one or more custodians or receivers lawfully appointed, or of trustees in bankruptcy or reorganization proceedings (including a trustee or trustees appointed under the provisions of the federal bankruptcy laws, as now or hereafter constituted), or of assignees for the benefit of creditors, such receivers, custodians, trustees or assignees, as the case may be, by an instrument in writing, shall appoint a successor Trustee with respect to the Securities of such series.  Subject to the provisions of Sections 11.04 and 11.05, upon the appointment as aforesaid of a successor Trustee with respect to the Securities of any series, the Trustee with respect to the Securities of such series shall cease to be Trustee hereunder.  After any such appointment other than by the Holders of Securities of that or those series, the Person making such appointment shall forthwith

 

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cause notice thereof to be mailed to the Holders of Securities of such series at their addresses as the same shall then appear on the Register of the Company but any successor Trustee with respect to the Securities of such series so appointed shall, immediately and without further act, be superseded by a successor Trustee appointed by the Holders of Securities of such series in the manner above prescribed, if such appointment be made prior to the expiration of one year from the date of the mailing of such notice by the Company, or by such receivers, trustees or assignees.

 

(b)                                 If any Trustee with respect to the Securities of one or more series shall resign because of conflicting interest as provided in Section 11.04(b) and a successor Trustee shall not have been appointed by the Company or by the Holders of the Securities of such series or, if any successor Trustee so appointed shall not have accepted its appointment within 30 days after such appointment shall have been made, the resigning Trustee at the expense of the Company may apply to any court of competent jurisdiction for the appointment of a successor Trustee.  If in any other case a successor Trustee shall not be appointed pursuant to the foregoing provisions of this Section 11.06 within three months after such appointment might have been made hereunder, the holder of any Security of the applicable series or any retiring Trustee at the expense of the Company may apply to any court of competent jurisdiction to appoint a successor Trustee.  Such court may thereupon, in any such case, after such notice, if any, as such court may deem proper and prescribe, appoint a successor Trustee.

 

(c)                                  Any successor Trustee appointed hereunder with respect to the Securities of one or more series shall execute, acknowledge and deliver to its predecessor Trustee and to the Company, or to the receivers, trustees, assignees or court appointing it, as the case may be, an instrument accepting such appointment hereunder, and thereupon such successor Trustee, without any further act, deed or conveyance, shall become vested with all the authority, rights, powers, trusts, immunities, duties and obligations with respect to such series of such predecessor Trustee with like effect as if originally named as Trustee hereunder, and such predecessor Trustee, upon payment of its charges and disbursements then unpaid, shall thereupon become obligated to pay over, and such successor Trustee shall be entitled to receive, all moneys and properties held by such predecessor Trustee as Trustee hereunder, subject nevertheless to its lien provided for in Section 11.01(a).  Nevertheless, on the written request of the Company or of the successor Trustee or of the Holders of at least 10% in principal amount of the Securities of such series then Outstanding, such predecessor Trustee, upon payment of its said charges and disbursements, shall execute and deliver an instrument transferring to such successor Trustee upon the trusts herein expressed all the rights, powers and trusts of such predecessor Trustee and shall assign, transfer and deliver to the successor Trustee all moneys and properties held by such predecessor Trustee, subject nevertheless to its lien provided for in Section 11.01(a); and, upon request of any such successor Trustee and the Company shall make, execute, acknowledge and deliver any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Trustee all such authority, rights, powers, trusts, immunities, duties and obligations.

 

Section 11.07                     SUCCESSOR TRUSTEE BY MERGER.  Any Person into which the Trustee or any successor to it in the trusts created by this Indenture shall be merged or converted, or any Person with which it or any successor to it shall be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Trustee or any such successor to it shall be a party, or any Person to which the Trustee or any successor to it shall sell or otherwise transfer all or substantially all of the corporate trust business of the Trustee, shall be the successor Trustee under this Indenture without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided that such Person shall be otherwise qualified and eligible under this Article.  In case at the time such successor to the Trustee shall succeed to the trusts created by this Indenture with respect to one or more series of Securities, any of such Securities shall have been authenticated but not delivered by the Trustee then in office, any successor to such Trustee may adopt the certificate of authentication of any predecessor Trustee, and deliver such Securities so authenticated; and in case at that time any of the Securities shall

 

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not have been authenticated, any successor to the Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Securities or in this Indenture provided that the certificate of the Trustee shall have; provided, however, that the right to adopt the certificate of authentication of any predecessor Trustee or authenticate Securities in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation.

 

Section 11.08                     RIGHT TO RELY ON OFFICER’S CERTIFICATE.  Subject to Section 11.02, and subject to the provisions of Section 16.01 with respect to the certificates required thereby, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of bad faith or willful misconduct on its part, be deemed to be conclusively proved and established by an Officer’s Certificate with respect thereto delivered to the Trustee, and such Officer’s Certificate, in the absence of bad faith and willful misconduct, shall be full warrant to the Trustee for any action taken, suffered or omitted by it under the provisions of this Indenture upon the faith thereof.

 

Section 11.09                     APPOINTMENT OF AUTHENTICATING AGENT.  The Trustee may appoint an agent (the “Authenticating Agent”) reasonably acceptable to the Company to authenticate the Securities, and the Trustee shall give written notice of such appointment to all Holders of Securities of the series with respect to which such Authenticating Agent will serve.  Unless limited by the terms of such appointment, any such Authenticating Agent may authenticate Securities whenever the Trustee may do so.  Each reference in this Indenture to authentication by the Trustee includes authentication by the Authenticating Agent.  Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder.

 

Each Authenticating Agent shall at all times be a corporation organized and doing business and in good standing under the laws of the United States, any State thereof or the District of Columbia, authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and subject to supervision or examination by Federal or State authority.  If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Article XI, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Article XI, it shall resign immediately in the manner and with the effect specified in this Article XI.

 

Any corporation into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent, provided such corporation shall be otherwise eligible under this Article XI, without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent.

 

An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee and to the Company.  The Trustee may at any time terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company.  Upon receiving such a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section 11.09, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall give written notice of such appointment to all Holders of Securities of the series with respect to which such Authenticating

 

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Agent will serve.  Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent.  No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section 11.09.

 

The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section 11.09.

 

Section 11.10                     COMMUNICATIONS BY SECURITYHOLDERS WITH OTHER SECURITYHOLDERS.  Holders of Securities may communicate pursuant to Section 312(b) of the Trust Indenture Act with other Holders with respect to their rights under this Indenture or the Securities.  The Company, the Trustee, the Registrar and anyone else shall have the protection of Section 312(c) of the Trust Indenture Act with respect to such communications.

 

ARTICLE XII
 SATISFACTION AND DISCHARGE; DEFEASANCE

 

Section 12.01                     APPLICABILITY OF ARTICLE.  If, pursuant to Section 3.01, provision is made for the defeasance of Securities of a series and if the Securities of such series are denominated and payable only in U.S. Dollars (except as provided pursuant to Section 3.01), then the provisions of this Article shall be applicable except as otherwise specified pursuant to Section 3.01 for Securities of such series.  Defeasance provisions, if any, for Securities denominated in a Foreign Currency may be specified pursuant to Section 3.01.

 

Section 12.02                     SATISFACTION AND DISCHARGE OF INDENTURE.  This Indenture, with respect to the Securities of any series (if all series issued under this Indenture are not to be affected), shall, upon Company Order, cease to be of further effect (except as to any surviving rights of registration of transfer or exchange of such Securities herein expressly provided for and rights to receive payments of principal of and premium, if any, and interest on such Securities) and the Trustee, at the expense of the Company, shall execute such instruments reasonably requested by the Company acknowledging satisfaction and discharge of this Indenture, when,

 

(a)                                 either:

 

(i)                                     all Securities of such series theretofore authenticated and delivered (other than (A) Securities that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 3.07 and (B) Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 6.03) have been delivered to the Trustee for cancellation; or

 

(ii)                                  all Securities of such series not theretofore delivered to the Trustee for cancellation,

 

(A)                               have become due and payable, or

 

(B)                               will become due and payable at their Stated Maturity within one year, or

 

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(C)                               are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice by the Trustee in the name, and at the expense, of the Company, and in the case of (A), (B) or (C) above, the Company has deposited or caused to be deposited with the Trustee or Paying Agent as trust funds in trust for the purpose an amount in the Currency in which such Securities are denominated (except as otherwise provided pursuant to Section 3.01) sufficient to pay and discharge the entire Indebtedness on such Securities for principal and premium, if any, and interest to the date of such deposit (in the case of Securities that have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be; provided, however, in the event a petition for relief under federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law, is filed with respect to the Company within 91 days after the deposit and the Trustee is required to return the moneys then on deposit with the Trustee to the Company, the obligations of the Company under this Indenture with respect to such Securities shall not be deemed terminated or discharged; provided, further however, in the case of any discharge relating to any redemption that requires the payment of a premium based on the U.S. treasury rate or other floating rate, the amount deposited shall be sufficient for purposes of this Indenture to the extent that an amount is deposited with the Trustee equal to the premium calculated as of the date of the notice of redemption; provided that any deficit as of the Redemption Date will be required to be deposited with the Trustee on or prior or the Redemption Date. The Company, but not the Trustee, shall be responsible for monitoring any such call or redemption provision;

 

(b)                                 the Company has paid or caused to be paid all other sums payable hereunder by the Company; and

 

(c)                                  the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture with respect to such series have been complied with.  Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 11.01 and, if money shall have been deposited with the Trustee pursuant to subclause (B) of clause (a)(i) of this Section, the obligations of the Trustee under Section 12.07 and the last paragraph of Section 6.03(e) shall survive.

 

Section 12.03                     DEFEASANCE UPON DEPOSIT OF MONEYS OR U.S. GOVERNMENT OBLIGATIONS.  At the Company’s option, either (a) the Company shall be deemed to have been Discharged (as defined below) from its obligations with respect to Securities of any series on the first day after the applicable conditions set forth below have been satisfied or (b) the Company shall cease to be under any obligation to comply with any term, provision or condition set forth in Section 6.04 and Section 10.02 with respect to Securities of any series (and, if so specified pursuant to Section 3.01, any other restrictive covenant added for the benefit of such series pursuant to Section 3.01) at any time after the applicable conditions set forth below have been satisfied:

 

(a)                                 The Company shall have deposited or caused to be deposited irrevocably with the Trustee as trust funds in trust, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of the Securities of such series (i) money in an amount, or (ii) U.S. Government Obligations (as defined below) that through the payment of interest and principal in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment, money in an amount or (iii) a combination of (i) and (ii), sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay and discharge each installment of principal (including any mandatory sinking fund payments) of and premium, if any, and interest on, the Outstanding Securities of such series on the dates such installments of interest or principal and premium are due;

 

(b)                                 No Default with respect to the Securities of such series shall have occurred and be continuing on the date of such deposit (other than a Default resulting from the borrowing of funds and the grant of any related liens to be applied to such deposit); and

 

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(c)                                  The Company shall have delivered to the Trustee an Opinion of Counsel stating that Holders of the Securities of such series will not recognize income, gain or loss for U.S. federal income tax purposes as a result of the Company’s exercise of its option under this Section and will be subject to federal income tax on the same amounts and in the same manner and at the same times as would have been the case if such action had not been exercised and, in the case of the Securities of such series being Discharged accompanied by a ruling to that effect received from or published by the Internal Revenue Service.

 

“Discharged” means that the Company shall be deemed to have paid and discharged the entire Indebtedness represented by, and obligations under, the Securities of such series and to have satisfied all the obligations under this Indenture relating to the Securities of such series (and the Trustee, at the expense of the Company, shall execute such instruments reasonably requested by the Company acknowledging the same), except (A) the rights of Holders of Securities of such series to receive, from the trust fund described in clause (a) above, payment of the principal of and premium, if any, and interest on such Securities when such payments are due, (B) the Company’s obligations with respect to Securities of such series under Sections 3.04, 3.06, 3.07, 6.02, 12.06 and 12.07 and (C) the rights, powers, trusts, duties and immunities of the Trustee hereunder.

 

“U.S. Government Obligations” means securities that are (i) direct obligations of the United States for the payment of which its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States the timely of payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States, that, in either case under clauses (i) or (ii) are not callable or redeemable at the action of the issuer thereof, and shall also include a depositary receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder of a depositary receipt; provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the specific payment of interest on or principal of the U.S. Government Obligation evidenced by such depositary receipt.

 

Section 12.04                     REPAYMENT TO COMPANY.  The Trustee and any Paying Agent shall promptly pay to the Company (or to its designee) upon Company Order any excess moneys or U.S. Government Obligations held by them at any time, including any such moneys or obligations held by the Trustee under any escrow trust agreement entered into pursuant to Section 12.06.  The provisions of the last paragraph of Section 6.03 shall apply to any money held by the Trustee or any Paying Agent under this Article that remains unclaimed for two years after the Maturity of any series of Securities for which money or U.S. Government Obligations have been deposited pursuant to Section 12.03.

 

Section 12.05                     INDEMNITY FOR U.S. GOVERNMENT OBLIGATIONS.  The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the deposited U.S. Government Obligations or the principal or interest received on such U.S. Government Obligations.

 

Section 12.06                     DEPOSITS TO BE HELD IN ESCROW.  Any deposits with the Trustee referred to in Section 12.03 above shall be irrevocable (except to the extent provided in Sections 12.04 and 12.07) and shall be held in trust with the Trustee and applied by it in accordance with the provisions of the Securities and this Indenture, to the payment either directly or through any Paying Agent, to the Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment such money has been deposited with the Trustee; but such money need not be segregated from other funds except to the extent required by law.  If any Outstanding Securities of a series are to be redeemed prior to

 

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their Stated Maturity, whether pursuant to any optional redemption provisions or in accordance with any mandatory or optional sinking fund requirement, the Company shall make such arrangements as are satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company.  Upon satisfaction of any mandatory sinking fund payment requirements, whether by deposit of moneys, application of proceeds of deposited U.S. Government Obligations or, if permitted, by delivery of Securities, the Trustee shall pay or deliver over to the Company as excess moneys pursuant to Section 12.04 all funds or obligations then held and allocable to the sinking fund payment requirements so satisfied.

 

If Securities of a series with respect to which such deposits are made may be subject to later redemption at the option of the Company, the Company shall deposit with the Trustee on or before the date notice of redemption is given funds sufficient to pay the Redemption Price of the Securities to be redeemed together with all unpaid interest thereon to the Redemption Date.  Upon such deposit of funds, the Trustee shall pay or deliver over to the Company as excess funds pursuant to Section 12.04 all funds or obligations then held and allocable to the Securities to be redeemed.  In the case of exercise of optional sinking fund payment rights by the Company, at the option of the Company, upon deposit by the Company with the Trustee of funds pursuant to such exercise the Trustee shall pay or deliver over to the Company as excess funds pursuant to Section 12.04 all funds or obligations then held for such series and allocable to the Securities to be redeemed.

 

Section 12.07                     APPLICATION OF TRUST MONEY.

 

(a)                                 Neither the Trustee nor any other Paying Agent shall be required to pay interest on any moneys deposited pursuant to the provisions of this Indenture, except such as it shall agree with the Company to pay thereon.  Subject to applicable abandoned property laws, any moneys so deposited for the payment of the principal of, or premium, if any, or interest on the Securities of any series and remaining unclaimed for two years after the date of the maturity of the Securities of such series or the date fixed for the redemption of all the Securities of such series at the time outstanding, as the case may be, shall be repaid by the Trustee or such other Paying Agent to the Company upon its written request and thereafter, anything in this Indenture to the contrary notwithstanding, any rights of the Holders of Securities of such series in respect of which such moneys shall have been deposited shall be enforceable only against the Company, and all liability of the Trustee or such other Paying Agent with respect to such moneys shall thereafter cease.

 

(b)                                 Subject to the provisions of the foregoing paragraph, any moneys which at any time shall be deposited by the Company or on its behalf with the Trustee or any other Paying Agent for the purpose of paying the principal of, premium, if any, and interest on any of the Securities shall be and are hereby assigned, transferred and set over to the Trustee or such other Paying Agent in trust for the respective Holders of the Securities for the purpose for which such moneys shall have been deposited; but such moneys need not be segregated from other funds except to the extent required by law.

 

Section 12.08                     DEPOSITS OF NON-US CURRENCIES.  Notwithstanding the foregoing provisions of this Article, if the Securities of any series are payable in a Currency other than U.S. Dollars, the Currency or the nature of the government obligations to be deposited with the Trustee (or its agents) under the foregoing provisions of this Article shall be as set forth in the Officer’s Certificate or established in the supplemental indenture under which the Securities of such series are issued.

 

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ARTICLE XIII
 IMMUNITY OF CERTAIN PERSONS

 

Section 13.01                     NO PERSONAL LIABILITY.  No recourse shall be had for the payment of the principal of, or the premium, if any, or interest on, any Security or for any claim based thereon or otherwise in respect thereof or of the Indebtedness represented thereby, or upon any obligation, covenant or agreement of this Indenture, against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitutional provision, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and understood that this Indenture and the Securities are solely corporate obligations, and that no personal liability whatsoever shall attach to, or be incurred by, any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, because of the incurring of the Indebtedness hereby authorized or under or by reason of any of the obligations, covenants, promises or agreements contained in this Indenture or in any of the Securities, or to be implied herefrom or therefrom, and that all liability, if any, of that character against every such incorporator, stockholder, officer and director is, by the acceptance of the Securities and as a condition of, and as part of the consideration for, the execution of this Indenture and the issue of the Securities expressly waived and released.

 

ARTICLE XIV
 SUPPLEMENTAL INDENTURES

 

Section 14.01                     WITHOUT CONSENT OF SECURITYHOLDERS.  Except as otherwise provided as contemplated by Section 3.01 with respect to any series of Securities, the Company and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto for any one or more of or all the following purposes:

 

(a)                                 to add to the covenants and agreements of the Company, to be observed thereafter and during the period, if any, in such supplemental indenture or indentures expressed, and to add Events of Default, in each case for the protection or benefit of the Holders of all or any series of the Securities (and if such covenants, agreements and Events of Default are to be for the benefit of fewer than all series of Securities, stating that such covenants, agreements and Events of Default are expressly being included for the benefit of such series as shall be identified therein), or to surrender any right or power herein conferred upon the Company;

 

(b)                                 to delete or modify any Events of Default with respect to all or any series of the Securities, the form and terms of which are being established pursuant to such supplemental indenture as permitted in Section 3.01 (and, if any such Event of Default is applicable to fewer than all such series of the Securities, specifying the series to which such Event of Default is applicable), and to specify the rights and remedies of the Trustee and the Holders of such Securities in connection therewith;

 

(c)                                  to add to or change any of the provisions of this Indenture to provide, change or eliminate any restrictions on the payment of principal of or premium, if any, on Securities; provided that any such action shall not adversely affect the interests of the Holders of Securities of any series in any material respect;

 

(d)                                 to change or eliminate any of the provisions of this Indenture; provided that any such change or elimination shall become effective only when there is no Outstanding Security of any

 

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series created prior to the execution of such supplemental indenture that is entitled to the benefit of such provision and as to which such supplemental indenture would apply;

 

(e)                                  to evidence the succession of another entity to the Company, or successive successions, and the assumption by such successor of the covenants and obligations of the Company contained in the Securities of one or more series and in this Indenture or any supplemental indenture;

 

(f)                                   to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to one or more series of Securities and to add to or change any of the provisions of this Indenture as shall be necessary for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 11.06(c);

 

(g)                                  to secure any series of Securities;

 

(h)                                 to evidence any changes to this Indenture pursuant to Sections 11.05, 11.06 or 11.07 hereof as permitted by the terms thereof;

 

(i)                                     to cure any ambiguity or to correct or supplement any provision contained herein or in any indenture supplemental hereto which may be defective or inconsistent with any other provision contained herein or in any supplemental indenture or to conform the terms hereof or in any supplemental indenture, as amended and supplemented, that are applicable to the Securities of any series to the description of the terms of such Securities in the offering memorandum, prospectus supplement or other offering document applicable to such Securities at the time of initial sale thereof;

 

(j)                                    to add to or change or eliminate any provision of this Indenture as shall be necessary or desirable in accordance with any amendments to the Trust Indenture Act;

 

(k)                                 to add guarantors or co-obligors with respect to any series of Securities or to release guarantors from their guarantees of Securities in accordance with the terms of the applicable series of Securities;

 

(l)                                     to make any change in any series of Securities that does not adversely affect in any material respect the interests of the Holders of such Securities;

 

(m)                             to permit or facilitate the issue of Securities of any series in uncertificated form;

 

(n)                                 to supplement any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of any series of Securities; provided that any such action shall not adversely affect the interests of the Holders of Securities of any series in any material respect;

 

(o)                                 to prohibit the authentication and delivery of additional series of Securities; or

 

(p)                                 to establish the form and terms of Securities of any series as permitted in Section 3.01, or to authorize the issuance of additional Securities of a series previously authorized or to add to the conditions, limitations or restrictions on the authorized amount, terms or purposes of issue, authentication or delivery of the Securities of any series, as herein set forth, or other conditions, limitations or restrictions thereafter to be observed.

 

Subject to the provisions of Section 14.03, the Trustee is authorized to join with the Company in the execution of any such supplemental indenture, to make the further agreements and stipulations which

 

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may be therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any property or assets thereunder.

 

Any supplemental indenture authorized by the provisions of this Section 14.01 may be executed by the Company and the Trustee without the consent of the Holders of any of the Securities at the time Outstanding.

 

Section 14.02                     WITH CONSENT OF SECURITYHOLDERS; LIMITATIONS.

 

(a)                                 With the consent of the Holders (evidenced as provided in Article VIII) of a majority in aggregate principal amount of the Outstanding Securities of each series affected by such supplemental indenture voting separately, the Company and the Trustee may, from time to time and at any time, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any provisions of this Indenture or of modifying in any manner the rights of the Holders of the Securities of such series to be affected; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security of each such series affected thereby,

 

(i)                                     extend the Stated Maturity of the principal of, or any installment of interest on, any Security, or reduce the principal amount thereof or the interest thereon or any premium payable upon redemption thereof, or extend the Stated Maturity of, or change the Currency in which the principal of and premium, if any, or interest on such Security is denominated or payable, or reduce the amount of the principal of an Original Issue Discount Security that would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 7.02, or impair the right to institute suit for the enforcement of any payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date), or materially adversely affect the economic terms of any right to convert or exchange any Security as may be provided pursuant to Section 3.01; or

 

(ii)                                  reduce the percentage in principal amount of the Outstanding Securities of any series, the consent of whose Holders is required for any supplemental indenture, or the consent of whose Holders is required for any waiver of compliance with certain provisions of this Indenture or certain Defaults hereunder and their consequences provided for in this Indenture; or

 

(iii)                               modify any of the provisions of this Section, Section 7.06 or Section 6.06, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby; provided, however, that this clause shall not be deemed to require the consent of any Holder with respect to changes in the references to “the Trustee” and concomitant changes in this Section and Section 6.06, or the deletion of this proviso, in accordance with the requirements of Sections 11.06 and 14.01(f); or

 

(iv)                              modify, without the written consent of the Trustee, the rights, duties or immunities of the Trustee.

 

(b)                                 A supplemental indenture that changes or eliminates any provision of this Indenture which has expressly been included solely for the benefit of one or more particular series of Securities or which modifies the rights of the Holders of Securities of such series with respect to such

 

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covenant or other provision, shall be deemed not to affect the rights under this Indenture of the Holders of Securities of any other series.

 

(c)                                  It shall not be necessary for the consent of the Securityholders under this Section 14.02 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof.

 

(d)                                 The Company may set a record date for purposes of determining the identity of the Holders of each series of Securities entitled to give a written consent or waive compliance by the Company as authorized or permitted by this Section.  Such record date shall not be more than 30 days prior to the first solicitation of such consent or waiver or the date of the most recent list of Holders furnished to the Trustee prior to such solicitation pursuant to Section 312 of the Trust Indenture Act.

 

(e)                                  Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of this Section 14.02, the Company shall mail a notice, setting forth in general terms the substance of such supplemental indenture, to the Holders of Securities at their addresses as the same shall then appear in the Register of the Company.  Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

 

Section 14.03                     TRUSTEE PROTECTED.  Upon the request of the Company, accompanied by the Officer’s Certificate and Opinion of Counsel required by Section 16.01, the Trustee shall join with the Company in the execution of said supplemental indenture unless said supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into said supplemental indenture.  In executing a supplemental indenture the Trustee shall be entitled to rely on an Opinion of Counsel that the supplemental indenture is authorized or permitted by this Indenture.

 

Section 14.04                     EFFECT OF EXECUTION OF SUPPLEMENTAL INDENTURE.  Upon the execution of any supplemental indenture pursuant to the provisions of this Article XIV, this Indenture shall be deemed to be modified and amended in accordance therewith and, except as herein otherwise expressly provided, the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and the Holders of all of the Securities or of the Securities of any series affected, as the case may be, shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

 

Section 14.05                     NOTATION ON OR EXCHANGE OF SECURITIES.  Securities of any series authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this Article may bear a notation as to any matter provided for in such supplemental indenture.  If the Company or the Trustee shall so determine, new Securities so modified as to conform, in the opinion of the Trustee and the Board of Directors of the Company, to any modification of this Indenture contained in any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for the Securities then Outstanding in equal aggregate principal amounts, and such exchange shall be made without cost to the Holders of the Securities.

 

Section 14.06                     CONFORMITY WITH TIA.  Every supplemental indenture executed pursuant to the provisions of this Article shall conform to the requirements of the Trust Indenture Act as then in effect.

 

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ARTICLE XV
 SUBORDINATION OF SECURITIES

 

Section 15.01                     AGREEMENT TO SUBORDINATE.  In the event a series of Securities is designated as subordinated pursuant to Section 3.01, and except as otherwise provided in a Company Order or in one or more indentures supplemental hereto, the Company, for itself, its successors and assigns, covenants and agrees, and each Holder of Securities of such series by his, her or its acceptance thereof, likewise covenants and agrees, that the payment of the principal of (and premium, if any) and interest, if any, on each and all of the Securities of such series is hereby expressly subordinated, to the extent and in the manner hereinafter set forth, in right of payment to the prior payment in full of all Senior Indebtedness.  In the event a series of Securities is not designated as subordinated pursuant to Section 3.01(s), this Article XV shall have no effect upon the Securities.

 

Section 15.02                     DISTRIBUTION ON DISSOLUTION, LIQUIDATION AND REORGANIZATION; SUBROGATION OF SECURITIES.  Subject to Section 15.01, upon any distribution of assets of the Company upon any dissolution, winding up, liquidation or reorganization of the Company, whether in bankruptcy, insolvency, reorganization or receivership proceedings or upon an assignment for the benefit of creditors or any other marshalling of the assets and liabilities of the Company or otherwise (subject to the power of a court of competent jurisdiction to make other equitable provision reflecting the rights conferred in this Indenture upon the Senior Indebtedness and the holders thereof with respect to the Securities and the holders thereof by a lawful plan of reorganization under applicable bankruptcy law):

 

(a)                                 the holders of all Senior Indebtedness shall be entitled to receive payment in full of the principal thereof (and premium, if any) and interest due thereon (including any interest accruing after the filing of a bankruptcy petition) before the Holders of the Securities are entitled to receive any payment upon the principal (or premium, if any) or interest, if any, on Indebtedness evidenced by the Securities; and

 

(b)                                 any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the Holders of the Securities or the Trustee would be entitled except for the provisions of this Article XV shall be paid by the liquidation trustee or agent or other Person making such payment or distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee or otherwise, directly to the holders of Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any of such Senior Indebtedness may have been issued, ratably according to the aggregate amounts remaining unpaid on account of the principal of (and premium, if any) and interest on the Senior Indebtedness held or represented by each, to the extent necessary to make payment in full of all Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness; and

 

(c)                                  in the event that, notwithstanding the foregoing, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities prohibited by the foregoing, shall be received by the Trustee or the Holders of the Securities before all Senior Indebtedness is paid in full, such payment or distribution shall be paid over, upon written notice to a Responsible Officer of the Trustee, to the holder of such Senior Indebtedness or his, her or its representative or representatives or to the trustee or trustees under any indenture under which any instrument evidencing any of such Senior Indebtedness may have been issued, ratably as aforesaid, as calculated by the Company, for application to payment of all Senior Indebtedness remaining unpaid until all such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness.

 

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(d)                                 Subject to the payment in full of all Senior Indebtedness, the Holders of the Securities shall be subrogated to the rights of the holders of Senior Indebtedness (to the extent that distributions otherwise payable to such holder have been applied to the payment of Senior Indebtedness) to receive payments or distributions of cash, property or securities of the Company applicable to Senior Indebtedness until the principal of (and premium, if any) and interest, if any, on the Securities shall be paid in full and no such payments or distributions to the Holders of the Securities of cash, property or securities otherwise distributable to the holders of Senior Indebtedness shall, as between the Company, its creditors other than the holders of Senior Indebtedness, and the Holders of the Securities be deemed to be a payment by the Company to or on account of the Securities.  It is understood that the provisions of this Article XV are and are intended solely for the purpose of defining the relative rights of the Holders of the Securities, on the one hand, and the holders of the Senior Indebtedness, on the other hand.  Nothing contained in this Article XV or elsewhere in this Indenture or in the Securities is intended to or shall impair, as between the Company, its creditors other than the holders of Senior Indebtedness, and the Holders of the Securities, the obligation of the Company, which is unconditional and absolute, to pay to the Holders of the Securities the principal of (and premium, if any) and interest, if any, on the Securities as and when the same shall become due and payable in accordance with their terms, or to affect the relative rights of the Holders of the Securities and creditors of the Company other than the holders of Senior Indebtedness, nor shall anything herein or in the Securities prevent the Trustee or the Holder of any Security from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article XV of the holders of Senior Indebtedness in respect of cash, property or securities of the Company received upon the exercise of any such remedy.  Upon any payment or distribution of assets of the Company referred to in this Article XV, the Trustee, subject to the provisions of Section 15.05, shall be entitled to conclusively rely upon a certificate of the liquidating trustee or agent or other person making any distribution to the Trustee for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereof and all other facts pertinent thereto or to this Article XV.  Nothing in this Section is intended to apply to amounts due to the Trustee under Sections 7.05 or 11.01.

 

Section 15.03                     NO PAYMENT ON SECURITIES IN EVENT OF DEFAULT ON SENIOR INDEBTEDNESS.

 

(a)                                 Subject to Section 15.01, no payment by the Company on account of principal (or premium, if any), sinking funds or interest, if any, on the Securities shall be made at anytime if:  (i) a default on Senior Indebtedness exists that permits the holders of such Senior Indebtedness to accelerate its maturity and (ii) the default is the subject of judicial proceedings or the Company has received notice of such default.  The Company may resume payments on the Securities when full payment of amounts then due for principal (premium, if any), sinking funds and interest on Senior Indebtedness has been made or duly provided for in money or money’s worth.

 

(b)                                 In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee when such payment is prohibited by Section 15.03(a), such payment shall be held in trust for the benefit of, and shall be paid over or delivered to, the holders of such Senior Indebtedness or their respective representatives, or to the trustee or trustees under any indenture pursuant to which any of such Senior Indebtedness may have been issued, as their respective interests may appear, as calculated by the Company, but only to the extent that the holders of such Senior Indebtedness (or their representative or representatives or a trustee) notify the Trustee in writing 90 days prior to such payment of the amounts then due and owing on such Senior Indebtedness and only the amounts specified in such notice to the Trustee shall be paid to the holders of such Senior Indebtedness.

 

55

 

Section 15.04                     PAYMENTS ON SECURITIES PERMITTED.  Subject to Section 15.01, nothing contained in this Indenture or in any of the Securities shall (a) affect the obligation of the Company to make, or prevent the Company from making, at any time except as provided in Sections 15.02 and 15.03, payments of principal of (or premium, if any) or interest, if any, on the Securities or (b) prevent the application by the Trustee of any moneys or assets deposited with it hereunder to the payment of or on account of the principal of (or premium, if any) or interest, if any, on the Securities, unless a Responsible Officer of the Trustee shall have received at its Corporate Trust Office written notice of any fact prohibiting the making of such payment from the Company or from the holder of any Senior Indebtedness or from the trustee for any such holder, together with proof satisfactory to the Trustee of such holding of Senior Indebtedness or of the authority of such trustee more than two Business Days prior to the date fixed for such payment.

 

Section 15.05                     AUTHORIZATION OF SECURITYHOLDERS TO TRUSTEE TO EFFECT SUBORDINATION.  Subject to Section 15.01, each Holder of Securities by his acceptance thereof authorizes and directs the Trustee on his, her or its behalf to take such action as may be necessary or appropriate to effectuate the subordination as provided in this Article XV and appoints the Trustee his attorney-in-fact for any and all such purposes.

 

Section 15.06                     NOTICES TO TRUSTEE.  Subject to Section 15.01, notwithstanding the provisions of this Article XV or any other provisions of this Indenture, neither the Trustee nor any Paying Agent (other than the Company) shall be charged with knowledge of the existence of any Senior Indebtedness or of any fact which would prohibit the making of any payment of moneys or assets to or by the Trustee or such Paying Agent, unless and until a Responsible Officer of the Trustee or such Paying Agent shall have received (in the case of a Responsible Officer of the Trustee, at the Corporate Trust Office of the Trustee) written notice thereof from the Company or from the holder of any Senior Indebtedness or from the trustee for any such holder, together with proof satisfactory to the Trustee of such holding of Senior Indebtedness or of the authority of such trustee and, prior to the receipt of any such written notice, the Trustee shall be entitled in all respects conclusively to presume that no such facts exist; provided, however, that if at least two Business Days prior to the date upon which by the terms hereof any such moneys or assets may become payable for any purpose (including, without limitation, the payment of either the principal (or premium, if any) or interest, if any, on any Security) a Responsible Officer of the Trustee shall not have received with respect to such moneys or assets the notice provided for in this Section 15.06, then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such moneys or assets and to apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary which may be received by it within two Business Days prior to such date.  The Trustee shall be entitled to rely on the delivery to it of a written notice by a Person representing himself to be a holder of Senior Indebtedness (or a trustee on behalf of such holder) to establish that such a notice has been given by a holder of Senior Indebtedness or a trustee on behalf of any such holder.  In the event that the Trustee determines in good faith that further evidence is required with respect to the right of any Person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Article XV, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such Person under this Article XV and, if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment.

 

Section 15.07                     TRUSTEE AS HOLDER OF SENIOR INDEBTEDNESS.  Subject to Section 15.01, the Trustee in its individual capacity shall be entitled to all the rights set forth in this Article XV in respect of any Senior Indebtedness at any time held by it to the same extent as any other holder of Senior Indebtedness and nothing in this Indenture shall be construed to deprive the Trustee of

 

56

 

any of its rights as such holder.  Nothing in this Article XV shall apply to claims of, or payments to, the Trustee under or pursuant to Sections 7.05 or 11.01.

 

Section 15.08                     MODIFICATIONS OF TERMS OF SENIOR INDEBTEDNESS.  Subject to Section 15.01, any renewal or extension of the time of payment of any Senior Indebtedness or the exercise by the holders of Senior Indebtedness of any of their rights under any instrument creating or evidencing Senior Indebtedness, including, without limitation, the waiver of default thereunder, may be made or done all without notice to or assent from the Holders of the Securities or the Trustee.  No compromise, alteration, amendment, modification, extension, renewal or other change of, or waiver, consent or other action in respect of, any liability or obligation under or in respect of, or of any of the terms, covenants or conditions of any indenture or other instrument under which any Senior Indebtedness is outstanding or of such Senior Indebtedness, whether or not such release is in accordance with the provisions of any applicable document, shall in any way alter or affect any of the provisions of this Article XV or of the Securities relating to the subordination thereof.

 

Section 15.09                     RELIANCE ON JUDICIAL ORDER OR CERTIFICATE OF LIQUIDATING AGENT.  Subject to Section 15.01, upon any payment or distribution of assets of the Company referred to in this Article XV, the Trustee and the Holders of the Securities shall be entitled to rely upon any order or decree entered by any court of competent jurisdiction in which such insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution, winding up or similar case or proceeding is pending, or a certificate of the trustee in bankruptcy, liquidating trustee, custodian, receiver, assignee for the benefit of creditors, agent or other person making such payment or distribution, delivered to the Trustee or to the Holders of Securities, for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of Senior Indebtedness and other Indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article XV.

 

Section 15.10                     SATISFACTION AND DISCHARGE; DEFEASANCE AND COVENANT DEFEASANCE.  Subject to Section 15.01, amounts and U.S. Government Obligations deposited in trust with the Trustee pursuant to and in accordance with Article XII and not, at the time of such deposit, prohibited to be deposited under Sections 15.02 or 15.03 shall not be subject to this Article XV.

 

Section 15.11                     TRUSTEE NOT FIDUCIARY FOR HOLDERS OF SENIOR INDEBTEDNESS.  With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or observe only such of its covenants and obligations as are specifically set forth in this Article XV, and no implied covenants or obligations with respect to the holders of Senior Indebtedness shall be read into this Indenture against the Trustee.  The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness.  The Trustee shall not be liable to any such holder if it shall pay over or distribute to or on behalf of Holders of Securities or the Company, or any other Person, moneys or assets to which any holder of Senior Indebtedness shall be entitled by virtue of this Article XV or otherwise.

 

ARTICLE XVI
 MISCELLANEOUS PROVISIONS

 

Section 16.01                     CERTIFICATES AND OPINIONS AS TO CONDITIONS PRECEDENT.

 

(a)                                 Upon any request or application by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such

 

57

 

counsel all such conditions precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such document is specifically required by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished.

 

(b)                                 Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture (other than the certificates provided pursuant to Section 6.05 of this Indenture) shall include (i) a statement that the Person giving such certificate or opinion has read such covenant or condition; (ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; (iii) a statement that, in the view or opinion of such Person, he or she has made such examination or investigation as is necessary to enable such Person to express an informed view or opinion as to whether or not such covenant or condition has been complied with; and (iv) a statement as to whether or not, in the view or opinion of such Person, such condition or covenant has been complied with.

 

(c)                                  Any certificate, statement or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which his or her certificate, statement or opinion is based are erroneous.  Any certificate, statement or opinion of counsel may be based, insofar as it relates to factual matters, upon a certificate, statement or opinion of, or representations by, an officer or officers of the Company stating that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate, statement or opinion or representations with respect to such matters are erroneous.

 

(d)                                 Any certificate, statement or opinion of an officer of the Company or of counsel to the Company may be based, insofar as it relates to accounting matters, upon a certificate or opinion of, or representations by, an accountant or firm of accountants, unless such officer or counsel, as the case may be, knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the accounting matters upon which his or her certificate, statement or opinion may be based are erroneous.  Any certificate or opinion of any firm of independent registered public accountants filed with the Trustee shall contain a statement that such firm is independent.

 

(e)                                  In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.

 

(f)                                   Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument.

 

Section 16.02                     TRUST INDENTURE ACT CONTROLS.  If and to the extent that any provision of this Indenture limits, qualifies or conflicts with the duties imposed by, or another provision included in this Indenture which is required to be included in this Indenture by any of the provisions of Sections 310 to 318, inclusive, of the Trust Indenture Act, such imposed duties or incorporated provision shall control.

 

58

 

Section 16.03                     NOTICES TO THE COMPANY AND TRUSTEE.  Any notice or demand authorized by this Indenture to be made upon, given or furnished to, or filed with, the Company or the Trustee shall be sufficiently made, given, furnished or filed for all purposes if it shall be mailed, delivered or telefaxed to:

 

(a)                                 the Company, at 10003 Woodloch Forest Drive, The Woodlands, Texas 77380, Attention: [Corporate Secretary], Facsimile: [•], or at such other address or facsimile number as may have been furnished in writing to the Trustee by the Company.

 

(b)                                 the Trustee, at the Corporate Trust Office of the Trustee, Attention: [Huntsman International Administrator, Facsimile: (612) 217-5651].

 

Any such notice, demand or other document shall be in the English language.

 

Section 16.04                     NOTICES TO SECURITYHOLDERS; WAIVER.  Any notice required or permitted to be given to Securityholders shall be sufficiently given (unless otherwise herein expressly provided),

 

(a)                                 if to Holders, if given in writing by first class mail, postage prepaid, to such Holders at their addresses as the same shall appear on the Register of the Company.

 

(b)                                 In the event of suspension of regular mail service or by reason of any other cause it shall be impracticable to give notice by mail, then such notification as shall be given with the approval of the Trustee shall constitute sufficient notice for every purpose hereunder.

 

(c)                                  Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance on such waiver.  In any case where notice to Holders is given by mail;

 

neither the failure to mail such notice nor any defect in any notice so mailed to any particular Holder shall affect the sufficiency of such notice with respect to other Holders, and any notice that is mailed in the manner herein provided shall be conclusively presumed to have been duly given.  In any case where notice to Holders is given by publication, any defect in any notice so published as to any particular Holder shall not affect the sufficiency of such notice with respect to other Holders, and any notice that is published in the manner herein provided shall be conclusively presumed to have been duly given.

 

(d)                                 Notwithstanding any other provision of this Indenture, where this Indenture provides for notice of any event (including any notice of redemption or purchase) to a Holder of a Global Security (whether by mail or otherwise), such notice shall be sufficiently given if given to the Depositary (or its designee) pursuant to the standing instructions from the Depositary or its designee.

 

Section 16.05                     LEGAL HOLIDAY.  Unless otherwise specified pursuant to Section 3.01, in any case where any Interest Payment Date, Redemption Date or Maturity of any Security of any series shall not be a Business Day at any Place of Payment for the Securities of that series, then payment of principal and premium, if any, or interest need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on such Interest Payment Date, Redemption Date or Maturity and no interest shall accrue on such payment for the period from and after such Interest Payment Date, Redemption Date or

 

59

 

Maturity, as the case may be, to such Business Day if such payment is made or duly provided for on such Business Day.

 

Section 16.06                     EFFECTS OF HEADINGS AND TABLE OF CONTENTS.  The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.

 

Section 16.07                     SUCCESSORS.  All covenants and agreements in this Indenture by the parties hereto shall bind their respective successors and inure to the benefit of their permitted successors, whether so expressed or not.

 

Section 16.08                     SEPARABILITY CLAUSE.  In case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 16.09                     BENEFITS OF INDENTURE.  Nothing in this Indenture expressed and nothing that may be implied from any of the provisions hereof is intended, or shall be construed, to confer upon, or to give to, any Person or corporation other than the parties hereto and their successors and the Holders of the Securities any benefit or any right, remedy or claim under or by reason of this Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all covenants, conditions, stipulations, promises and agreements in this Indenture contained shall be for the sole and exclusive benefit of the parties hereto and their successors and of the Holders of the Securities.

 

Section 16.10                     COUNTERPARTS ORIGINALS.  This Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.  The exchange of copies of this Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

 

Section 16.11                     GOVERNING LAW.  This Indenture and the Securities shall be deemed to be contracts made under the law of the State of New York, and for all purposes shall be governed by and construed in accordance with the law of said State.

 

60

 

Section 16.12                     FORCE MAJEURE.  In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts that are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

Section 16.13                     USA PATRIOT ACT.  The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. PATRIOT Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee.  The parties to this Indenture agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the U.S.A. PATRIOT Act.

 

61

 

IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date first written above.

 

	
 
    	
HUNTSMAN INTERNATIONAL   LLC
    
	
 
    	
as Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
WILMINGTON TRUST,   NATIONAL ASSOCIATION,
    
	
 
    	
as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:Exhibit 4.1

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    INDENTURE

     

    between

     

    BMW VEHICLE OWNER TRUST 20[__]-[__],

        as Issuer,

     

    and

     

    [____________________],

        as Indenture Trustee

     

    Dated as of [__________], 20[__]

     

      

     

      

     

      

     

      

     

      

     

    
      
        

    

    
    TABLE OF CONTENTS

    Page

    	
            ARTICLE I.

          	
            DEFINITIONS AND INCORPORATION BY REFERENCE

          	
            2

          
	
            SECTION 1.01.

          	
            Definitions

          	
            2

          
	
            SECTION 1.02.

          	
            Other Definitional Provisions

          	
            11

          
	
            SECTION 1.03.

          	
            Incorporation by Reference of Trust Indenture Act

          	
            12

          
	
            ARTICLE II.

          	
            THE NOTES

          	
            12

          
	
            SECTION 2.01.

          	
            Form

          	
            12

          
	
            SECTION 2.02.

          	
            Execution, Authentication and Delivery

          	
            13

          
	
            SECTION 2.03.

          	
            Temporary Notes

          	
            13

          
	
            SECTION 2.04.

          	
            Registration; Registration of Transfer and Exchange

          	
            14

          
	
            SECTION 2.05.

          	
            [Reserved]

          	
            17

          
	
            SECTION 2.06.

          	
            Mutilated, Destroyed, Lost or Stolen Notes

          	
            17

          
	
            SECTION 2.07.

          	
            Persons Deemed Owners

          	
            18

          
	
            SECTION 2.08.

          	
            Payment of Principal and Interest; Defaulted Interest

          	
            18

          
	
            SECTION 2.09.

          	
            Cancellation

          	
            19

          
	
            SECTION 2.10.

          	
            Book-Entry Notes

          	
            19

          
	
            SECTION 2.11.

          	
            Notices to Clearing Agency

          	
            20

          
	
            SECTION 2.12.

          	
            Definitive Notes

          	
            20

          
	
            SECTION 2.13.

          	
            Authenticating Agents

          	
            20

          
	
            SECTION 2.14.

          	
            Tax Treatment

          	
            21

          
	
            ARTICLE III.

          	
            COVENANTS

          	
            21

          
	
            SECTION 3.01.

          	
            Payment of Principal and Interest

          	
            21

          
	
            SECTION 3.01.A.

          	
            [Interest Rate Cap Collateral Account]

          	
            21

          
	
            SECTION 3.02.

          	
            Maintenance of Office or Agency

          	
            21

          
	
            SECTION 3.03.

          	
            Money for Payments To Be Held in Trust

          	
            22

          
	
            SECTION 3.04.

          	
            Existence

          	
            23

          
	
            SECTION 3.05.

          	
            Protection of Trust Estate

          	
            23

          
	
            SECTION 3.06.

          	
            Opinions as to Trust Estate

          	
            24

          
	
            SECTION 3.07.

          	
            Performance of Obligations; Servicing of Receivables

          	
            24

          
	
            SECTION 3.08.

          	
            Negative Covenants

          	
            26

          
	
            SECTION 3.09.

          	
            Annual Statement and Assessment as to Compliance

          	
            27

          
	
            SECTION 3.10.

          	
            Issuer May Consolidate, etc., Only on Certain Terms

          	
            28

          

    

    

    
      ii

      
        

    

    	
            SECTION 3.11.

          	
            Successor or Transferee

          	
            30

          
	
            SECTION 3.12.

          	
            No Other Business

          	
            30

          
	
            SECTION 3.13.

          	
            No Borrowing

          	
            30

          
	
            SECTION 3.14.

          	
            Servicer’s Obligations

          	
            30

          
	
            SECTION 3.15.

          	
            Guarantees, Loans, Advances and Other Liabilities

          	
            30

          
	
            SECTION 3.16.

          	
            Capital Expenditures

          	
            30

          
	
            SECTION 3.17.

          	
            Removal of Administrator

          	
            30

          
	
            SECTION 3.18.

          	
            Restricted Payments

          	
            31

          
	
            SECTION 3.19.

          	
            Notice of Events of Default

          	
            31

          
	
            SECTION 3.20.

          	
            Further Instruments and Acts

          	
            31

          
	
            SECTION 3.21.

          	
            Perfection Representations

          	
            31

          
	
            ARTICLE IV.

          	
            SATISFACTION AND DISCHARGE

          	
            31

          
	
            SECTION 4.01.

          	
            Satisfaction and Discharge of Indenture

          	
            31

          
	
            SECTION 4.02.

          	
            Application of Trust Money

          	
            33

          
	
            SECTION 4.03.

          	
            Repayment of Moneys Held by Paying Agent

          	
            33

          
	
            SECTION 4.04.

          	
            Release of Collateral

          	
            33

          
	
            ARTICLE V.

          	
            REMEDIES

          	
            34

          
	
            SECTION 5.01.

          	
            Events of Default

          	
            33

          
	
            SECTION 5.02.

          	
            Acceleration of Maturity; Rescission and Annulment

          	
            35

          
	
            SECTION 5.03.

          	
            Collection of Indebtedness and Suits for Enforcement by Indenture Trustee

          	
            36

          
	
            SECTION 5.04.

          	
            Remedies; Priorities

          	
            38

          
	
            SECTION 5.05.

          	
            Optional Preservation of the Receivables

          	
            41

          
	
            SECTION 5.06.

          	
            Limitation of Suits

          	
            41

          
	
            SECTION 5.07.

          	
            Unconditional Rights of Noteholders To Receive Principal and Interest

          	
            42

          
	
            SECTION 5.08.

          	
            Restoration of Rights and Remedies

          	
            42

          
	
            SECTION 5.09.

          	
            Rights and Remedies Cumulative

          	
            42

          
	
            SECTION 5.10.

          	
            Delay or Omission Not a Waiver

          	
            43

          
	
            SECTION 5.11.

          	
            Control by Noteholders

          	
            43

          
	
            SECTION 5.12.

          	
            Waiver of Past Defaults

          	
            43

          
	
            SECTION 5.13.

          	
            Undertaking for Costs

          	
            44

          
	
            SECTION 5.14.

          	
            Waiver of Stay or Extension Laws

          	
            44

          

    

    

    
      iii

      
        

    

    	
            SECTION 5.15.

          	
            Action on Notes

          	
            44

          
	
            SECTION 5.16.

          	
            Performance and Enforcement of Certain Obligations

          	
            44

          
	
            ARTICLE VI.

          	
            THE INDENTURE TRUSTEE

          	
            45

          
	
            SECTION 6.01.

          	
            Duties of Indenture Trustee

          	
            45

          
	
            SECTION 6.02.

          	
            Rights of Indenture Trustee

          	
            47

          
	
            SECTION 6.03.

          	
            Individual Rights of Indenture Trustee

          	
            49

          
	
            SECTION 6.04.

          	
            Indenture Trustee’s Disclaimer

          	
            49

          
	
            SECTION 6.05.

          	
            Notice of Defaults

          	
            50

          
	
            SECTION 6.06.

          	
            Reports by Indenture Trustee to Holders

          	
            50

          
	
            SECTION 6.07.

          	
            Compensation and Indemnity

          	
            50

          
	
            SECTION 6.08.

          	
            Replacement of Indenture Trustee

          	
            51

          
	
            SECTION 6.09.

          	
            Successor Indenture Trustee by Merger

          	
            52

          
	
            SECTION 6.10.

          	
            Appointment of Co-Indenture Trustee or Separate Indenture Trustee

          	
            52

          
	
            SECTION 6.11.

          	
            Eligibility; Disqualification

          	
            53

          
	
            SECTION 6.12.

          	
            Preferential Collection of Claims Against Issuer

          	
            53

          
	
            SECTION 6.13.

          	
            Waiver of Setoffs

          	
            54

          
	
            SECTION 6.14.

          	
            Licenses

          	
            54

          
	
            SECTION 6.15.

          	
            Additional Duties

          	
            54

          
	
            ARTICLE VII.

          	
            NOTEHOLDERS’ LISTS AND REPORTS

          	
            54

          
	
            SECTION 7.01.

          	
            Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders

          	
            54

          
	
            SECTION 7.02.

          	
            Preservation of Information; Communications to Noteholders

          	
            54

          
	
            SECTION 7.03.

          	
            Reports by Issuer

          	
            55

          
	
            SECTION 7.04.

          	
            Reports by Indenture Trustee

          	
            56

          
	
            ARTICLE VIII.

          	
            ACCOUNTS, DISBURSEMENTS AND RELEASES

          	
            56

          
	
            SECTION 8.01.

          	
            Collection of Money

          	
            56

          
	
            SECTION 8.02.

          	
            Trust Accounts

          	
            56

          
	
            SECTION 8.03.

          	
            General Provisions Regarding Accounts

          	
            58

          
	
            SECTION 8.04.

          	
            Release of Trust Estate

          	
            59

          
	
            SECTION 8.05.

          	
            Opinion of Counsel

          	
            59

          
	
            ARTICLE IX.

          	
            SUPPLEMENTAL INDENTURES

          	
            60

          

    

    

    
      iv

      
        

    

    	
            SECTION 9.01.

          	
            Supplemental Indentures Without Consent of Noteholders

          	
            60

          
	
            SECTION 9.02.

          	
            Supplemental Indentures with Consent of Noteholders

          	
            61

          
	
            SECTION 9.03.

          	
            Execution of Supplemental Indentures

          	
            62

          
	
            SECTION 9.04.

          	
            Effect of Supplemental Indenture

          	
            63

          
	
            SECTION 9.05.

          	
            Reference in Notes to Supplemental Indentures

          	
            63

          
	
            SECTION 9.06.

          	
            Conformity with Trust Indenture Act

          	
            63

          
	
            ARTICLE X.

          	
            REDEMPTION OF NOTES

          	
            63

          
	
            SECTION 10.01.

          	
            Redemption

          	
            63

          
	
            SECTION 10.02.

          	
            Form of Redemption Notice

          	
            64

          
	
            SECTION 10.03.

          	
            Notes Payable on Redemption Date

          	
            64

          
	
            ARTICLE XI.

          	
            MISCELLANEOUS

          	
            64

          
	
            SECTION 11.01.

          	
            Compliance Certificates and Opinions, etc

          	
            64

          
	
            SECTION 11.02.

          	
            Form of Documents Delivered to Indenture Trustee

          	
            66

          
	
            SECTION 11.03.

          	
            Acts of Noteholders

          	
            67

          
	
            SECTION 11.04.

          	
            Notices, etc., to Indenture Trustee, Issuer and Rating Agencies

          	
            67

          
	
            SECTION 11.05.

          	
            Notices to Noteholders; Waiver

          	
            68

          
	
            SECTION 11.06.

          	
            Effect of Headings and Table of Contents

          	
            68

          
	
            SECTION 11.07.

          	
            Successors and Assigns

          	
            68

          
	
            SECTION 11.08.

          	
            Separability

          	
            69

          
	
            SECTION 11.09.

          	
            Benefits of Indenture

          	
            69

          
	
            SECTION 11.10.

          	
            Legal Holidays

          	
            69

          
	
            SECTION 11.11.

          	
            Governing Law

          	
            69

          
	
            SECTION 11.12.

          	
            Counterparts

          	
            69

          
	
            SECTION 11.13.

          	
            Recording of Indenture

          	
            69

          
	
            SECTION 11.14.

          	
            Trust Obligation

          	
            69

          
	
            SECTION 11.15.

          	
            No Petition

          	
            70

          
	
            SECTION 11.16.

          	
            Inspection

          	
            70

          
	
            SECTION 11.17.

          	
            Conflict with Trust Indenture Act

          	
            70

          
	
            SECTION 11.18.

          	
            Limitation of Liability

          	
            71

          
	
            SECTION 11.19.

          	
            Intent of the Parties; Reasonableness

          	
            71

          
	
            SECTION 11.20.

          	
            Communications with Rating Agencies

          	
            71

          

    

    

    
      v

      
        

    

    	
            ARTICLE XII.

          	
            COMPLIANCE WITH THE FDIC RULE

          	
            72

          
	
            SECTION 12.01.

          	
            Purpose

          	
            72

          
	
            SECTION 12.02.

          	
            Requirements of the FDIC Rule

          	
            73

          
	
            SECTION 12.03.

          	
            Performance

          	
            75

          
	
            SECTION 12.04.

          	
            Effect of Section 941 Rules

          	
            75

          
	
            SECTION 12.05.

          	
            Actions Upon Repudiation

          	
            75

          
	
            SECTION 12.06.

          	
            Notice

          	
            77

          
	
            SECTION 12.07.

          	
            Reservation of Rights

          	
            77

          
	
            ARTICLE XIII.

          	
            ASSET REPRESENTATIONS REVIEW

          	
            77

          
	
            SECTION 13.01.

          	
            Noteholder and Note Owner Requests for Vote on Asset Representations Review

          	
            77

          
	
            SECTION 13.02.

          	
            Noteholder and Note Owner Vote on Asset Representations Review

          	
            78

          
	
            SECTION 13.03.

          	
            Evaluation of Review Report

          	
            78

          
	
            SECTION 13.04.

          	
            Dispute Resolution

          	
            79

          

    

    

    SCHEDULES AND EXHIBITS

    

      	
              SCHEDULE A

            	
              Schedule of Receivables

            
	
              SCHEDULE B

            	
              Perfection Representations, Warranties and Covenants

            
	
              EXHIBIT A-1

            	
              Form of Class A-1 Note

            
	
              EXHIBIT A-2

            	
              Form of Class A-2a Note

            
	
              EXHIBIT A-3

            	
              Form of Class A-2b Note

            
	
              EXHIBIT A-4

            	
              Form of Class A-3 Note

            
	
              EXHIBIT A-5

            	
              Form of Class A-4 Note

            
	
              EXHIBIT A-6

            	
              Form of Class B Note

            
	
              EXHIBIT B

            	
              Servicing Criteria to be Addressed in Assessment of Compliance

            

    

     

      

    

    

    

    

    

     

  

  

  
    
      

  

  
  THIS INDENTURE, dated as of [__________], 20[__], is between BMW VEHICLE OWNER TRUST 20[__]-[__], a Delaware statutory trust (the “Issuer”),
    and [____________________], a [____________________], as trustee and not in its individual capacity (the “Indenture Trustee”).

   

  Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the
      Issuer’s [___]% Asset Backed Notes, Class A-1 (the “Class A-1 Notes”), [___]% Asset Backed Notes, Class A-2a (the “Class A-2a Notes”), LIBOR plus [___]% Asset Backed Notes, Class A-2b (the “Class A-2b Notes”), [___]% Asset Backed Notes, Class A-3
      (the “Class A-3 Notes”), [___]% Asset Backed Notes, Class A-4 (the “Class A-4 Notes”) and [___]% Asset Backed Notes, Class B (the “B Notes” and, collectively with the Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3 Notes
      and the Class A-4 Notes, the “Notes”):

   

  GRANTING CLAUSE

   

  The Issuer hereby Grants to the Indenture Trustee at the Closing Date, as Indenture Trustee for the benefit of the Holders of
      the Notes, all of the Issuer’s right, title and interest in and to the following assets and property, whether now owned or existing or hereafter acquired or arising: (a) the Receivables and all moneys received thereon after the close of business on
      [__________], 20[__]; (b) the security interests in the Financed Vehicles and any accessions thereto granted by Obligors pursuant to the Receivables and any other interest of the Issuer in such Financed Vehicles; (c) any Liquidation Proceeds and
      Recoveries, and any other proceeds with respect to the Receivables from claims on any theft, physical damage, credit life or disability insurance policies covering Financed Vehicles or Obligors, including any vendor’s single interest or other
      collateral protection insurance policy; (d) all proceeds from any Receivables repurchased by a Dealer pursuant to a Dealer Agreement; (e) any property that shall have secured a Receivable and that shall have been acquired by or on behalf of a Seller,
      the Depositor, the Servicer, or the Issuer; (f) all documents and other items contained in the Receivable Files; (g) the Trust Accounts and all funds on deposit from time to time in the Trust Accounts and in all investments therein and proceeds
      thereof (including all Investment Earnings thereon); (h) the Issuer’s rights and benefits, but none of its obligations, under the Sale and Servicing Agreement (including the Issuer’s right to cause the Sellers or the Servicer, as the case may be, to
      repurchase Receivables from the Issuer under the circumstances described therein); (i) the Depositor’s and the Issuer’s rights and benefits under the Receivables Purchase Agreements, including the representations and warranties and the cure and
      repurchase obligations of the Sellers thereunder, and the Sale and Servicing Agreement; and (j) all present and future claims, demands, causes of action and choses in action in respect of any or all of the foregoing and all payments on or under and
      all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including all proceeds of the conversion thereof, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts
      receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, condemnation awards, rights to payment of any and every kind and other forms of obligations and receivables, instruments and other property that at
      any time constitute all or part of or are included in the proceeds of any of the foregoing (collectively, the “Collateral”).

   

  
    1

    
      

  

  

  

   

  The foregoing Grant is made in trust to secure the payment of principal of and interest on, and any other amounts owing in
      respect of, the Notes, equally and ratably without prejudice, priority or distinction, [to secure amounts owing to each Swap Counterparty under the related Swap Agreement] and to secure compliance with the provisions of this Indenture, all as
      provided in this Indenture.

   

  The Indenture Trustee, on behalf of the Holders of the Notes [and each Swap Counterparty], acknowledges such Grant, accepts the
      trusts under this Indenture in accordance with the provisions of this Indenture and agrees to perform its duties required in this Indenture in accordance with the terms set forth herein.

   

  ARTICLE I.

      

      DEFINITIONS AND INCORPORATION BY REFERENCE

   

  SECTION 1.01.        Definitions.

   

  (a) Definitions.  Except as otherwise specified herein or as the context may otherwise require, the following terms have the respective meanings
      set forth below for all purposes of this Indenture.

   

  “Act” has the meaning specified in Section 11.03(a).

   

  “Administration Agreement” means the Owner Trust Administration Agreement, dated as of [__________], 20[__], among the BMW FS,
      as owner trust administrator, the Issuer and the Indenture Trustee.

   

  “Administrator” means BMW FS, or any successor owner trust administrator under the Administration Agreement.

   

  “Affiliate” means, with respect to any specified Person, any other Person controlling or controlled by or under common control
      with such specified Person.  For the purposes of this definition, “control” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting
      securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

   

  “Asset Representations Review Agreement” means the Asset Representations Review Agreement, dated as of [___], 20[_], among the
      Asset Representations Reviewer, the Issuer and the Servicer.

   

  “Asset Representations Reviewer” means [__________], or any successor Asset Representations Reviewer under the Asset
      Representations Review Agreement.

   

  “Authenticating Agents” has the meaning specified in Section 2.13.

   

  “Authorized Officer” means, with respect to the Issuer, any officer of the Owner Trustee who is authorized to act for the Owner
      Trustee in matters relating to the Issuer and, so

   

  
    2

    
      

  

  

  

  long as the Administration Agreement is in effect, any Vice President or more senior officer of the Administrator who is authorized to act for the
      Administrator in matters relating to the Issuer and to be acted upon by the Administrator pursuant to the Administration Agreement and who is identified on the list of Authorized Officers delivered by the Administrator to the Indenture Trustee on the
      Closing Date (as such list may be modified or supplemented from time to time thereafter).

   

  “BMW Bank” means BMW Bank of North America and its successors and assigns.

   

  “BMW FS” means BMW Financial Services NA, LLC, a Delaware limited liability company, and its successors and assigns.

   

  “Book-Entry Notes” means a beneficial interest in the Notes, ownership and transfers of which shall be made through book
      entries by a Clearing Agency as described in Section 2.10.

   

  “Business Day” shall have the meaning assigned thereto in the Sale and Servicing Agreement.

   

  “Class A-1 Notes” means the [___]% Asset Backed Notes, Class A-1, substantially in the form of Exhibit A-1.

   

  “Class A-1 Rate” means [___]% per annum (computed on the basis of the actual number of days elapsed in the related Interest
      Period and a 360-day year).

   

  “Class A-2a Notes” means the [___]% Asset Backed Notes, Class A-2a, substantially in the form of Exhibit A-2.

   

  “Class A-2a Rate” means [___]% per annum (computed on the basis of a 360-day year of twelve 30-day months).

   

  “Class A-2b Notes” means the LIBOR plus [___]% Asset Backed Notes, Class A-2b, substantially in the form of Exhibit A-3.

   

  “Class A-2b Rate” means, with respect to any Interest Period, LIBOR plus [___]% per annum (computed on the basis of the actual
      number of days elapsed in the related Interest Period and a 360-day year); provided that, if the sum of LIBOR plus [_]% is less than 0.00% for any Interest Period, then the Class A-2b Rate for such Interest Period shall be deemed to be 0.00%.

   

  “Class A-3 Notes” means the [___]% Asset Backed Notes, Class A-3, substantially in the form of Exhibit A-4.

   

  “Class A-3 Rate” means [___]% per annum (computed on the basis of a 360-day year of twelve 30-day months).

   

  
    3

    
      

  

  

  

  “Class A-4 Notes” means the [___]% Asset Backed Notes, Class A-4, substantially in the form of Exhibit A-5.

   

  “Class A-4 Rate” means [___]% per annum (computed on the basis of a 360-day year of twelve 30-day months).

   

  “Class B Notes” means the [__]% Asset Backed Notes, Class B, substantially in the form of Exhibit A-6.

   

  “Class B Rate” means [__]% per annum (computed on the basis of a 360-day year of twelve 30-day months).

   

  “Clearing Agency” means an organization registered as a “clearing agency” pursuant to Section 17A of the Exchange Act.

   

  “Clearing Agency Participant” means a broker, dealer, bank, other financial institution or other Person for whom from time to
      time a Clearing Agency effects book-entry transfers and pledges of securities deposited with the Clearing Agency.

   

  “Closing Date” means [__________], 20[__].

   

  “Code” means the Internal Revenue Code of 1986, as amended from time to time, and Treasury Regulations promulgated thereunder.

   

  “Collateral” has the meaning specified in the Granting Clause of this Indenture.

   

  “Corporate Trust Office” means the office of the Indenture Trustee at which at any particular time the Indenture is
      administered, which office at the date of execution of this Indenture is located at (i) solely for the purposes of the transfer, surrender or exchange of Notes, [____________________], Attn: [____________________], and (ii) for all other purposes,
      [____________________], Attn: [____________________], or at such other address as the Indenture Trustee may designate from time to time by notice to the Noteholders and the Issuer, or the principal corporate trust office of any successor Indenture
      Trustee at the address designated by such successor Indenture Trustee by notice to the Noteholders and the Issuer.

   

  “Debt Opinion” means one or more written tax opinions to the effect that the Notes “will be debt” for U.S. federal income tax
      purposes from counsel which counsel shall be reasonably satisfactory to the Issuer, the Owner Trustee and the Indenture Trustee.

   

  “Default” means any occurrence that is, or with notice or the lapse of time or both would become, an Event of Default.

   

  “Definitive Notes” has the meaning specified in Section 2.10.

   

  “Deposit Date” means the Business Day prior to each Payment Date.

   

  “Depositor” means BMW FS Securities LLC and its successors and assigns.

   

  
    4

    
      

  

  

  

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

   

  “Event of Default” has the meaning specified in Section 5.01.

   

  “Exchange Act” means the Securities Exchange Act of 1934, as amended.

   

  “Executive Officer” means, with respect to any corporation, the Chief Executive Officer, Chief Operating Officer, Chief
      Financial Officer, President, any Executive Vice President, any Senior Vice President, any Vice President, the Secretary, the Controller or the Treasurer of such corporation; and with respect to any partnership, any general partner thereof.

   

  “FATCA Information” means any information sufficient to eliminate the imposition of, or determine the amount of, FATCA
      Withholding Tax.

   

  “FATCA Withholding Tax” means any withholding or deduction pursuant to an agreement described in Section 1471(b) of the Code or
      otherwise imposed pursuant to Sections 1471 through 1474 of the Code and any regulations or agreements thereunder or official interpretations thereof.

   

  “FDIC” means the Federal Deposit Insurance Corporation.

   

  “FDIC Principal Amount” means, with respect to the applicable distribution date pursuant to Section 12.05, an amount equal to
      the sum of the First Priority Principal Distribution Amount and the Regular Principal Distribution Amount, if any; provided, that, if such distribution date occurs on a day that is not also a Payment Date, then for purposes of calculating the First
      Priority Principal Distribution Amount, the Second Priority Principal Distribution Amount and the Regular Principal Distribution Amount (and the related Target Overcollateralization Amount, Adjusted Pool Balance, Pool Balance and Yield Supplement
      Overcollateralization Amount referenced in those defined terms), the “Payment Date” as of which such amounts are calculated will be the applicable distribution date under Section 12.05.

   

  “FDIC Rule” means the FDIC’s rule regarding the treatment by the FDIC, as receiver or conservator of an insured depository
      institution, of financial assets transferred by the institution in connection with a securitization or participation (12 C.F.R. § 360.6).

   

  “FDIC Rule Parties” means, collectively, BMW Financial Services NA, LLC, BMW FS Securities LLC, BMW Vehicle Owner Trust
      20[__]-[__] and BMW Bank of North America.

   

  “Final Scheduled Payment Date” means the Class A-1 Final Scheduled Payment Date, the Class A-2a Final Scheduled Payment Date,
      the Class A-2b Final Scheduled Payment Date, the Class A-3 Final Scheduled Payment Date, the Class A-4 Final Scheduled Payment Date or the Class B Final Scheduled Payment Date, as applicable, as those terms are defined in the Sale and Servicing
      Agreement.

   

  “Force Majeure” means any delay or failure in performance caused by acts beyond the applicable party’s reasonable control,
      including acts of God, war, vandalism,

   

  
    5

    
      

  

  

  

  sabotage, accidents, fires, floods, strikes, labor disputes, mechanical breakdown, shortages or delays in obtaining suitable parts or equipment,
      material, labor, or transportation, acts of subcontractors, interruption of utility services, acts of any unit of government or governmental agency, or any similar or dissimilar cause.

   

  “Grant” means mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey, assign, transfer, create, and grant
      a lien upon and a security interest in and a right of set-off against, deposit, set over and confirm pursuant to this Indenture.  A Grant of the Collateral or of any other agreement or instrument shall include all rights, powers and options (but none
      of the obligations) of the granting party thereunder, including the immediate and continuing right to claim for, collect, receive and give receipt for principal and interest payments in respect of the Collateral and all other moneys payable
      thereunder, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the name of the granting party or otherwise, and generally to do and receive anything
      that the granting party is or may be entitled to do or receive thereunder or with respect thereto.

   

  “Hague Securities Convention” means The Convention on the Law Applicable to Certain Rights in Respect of Securities Held with
      an Intermediary (Concluded 5 July 2006), which became effective in the United States of America on April 1, 2017.

   

  “Holder” or “Noteholder” means a Person in whose name a Note is registered on the Note Register.

   

  “Indenture Trustee” means [____________________], [____________________], not in its individual capacity, but as Indenture
      Trustee under this Indenture, or any successor Indenture Trustee under this Indenture.

   

  “Indenture Trustee Fee” means an annual fee equal to $[__], payable on the Payment Date occurring in [__] of each year,
      commencing in [__] 20[__].

   

  “Independent” means, when used with respect to any specified Person, that such Person (a) is in fact independent of the Issuer,
      any other obligor on the Notes, the Sellers and any Affiliate of any of the foregoing Persons, (b) does not have any direct financial interest or any material indirect financial interest in the Issuer, any such other obligor, the Sellers or any
      Affiliate of any of the foregoing Persons and (c) is not connected with the Issuer, any such other obligor, the Sellers or any Affiliate of any of the foregoing Persons as an officer, employee, promoter, underwriter, trustee, partner, director or
      person performing similar functions.

   

  “Independent Certificate” means a certificate or opinion to be delivered to the Indenture Trustee under the circumstances
      described in, and otherwise complying with, the applicable requirements of Section 11.01, made by an Independent appraiser or other expert appointed by an Issuer Order, and such opinion or certificate shall state that the signer has read the
      definition of “Independent” in this Indenture and that the signer is Independent within the meaning thereof.

   

  “Interest Rate” means the Class A-1 Rate, the Class A-2a Rate, the Class A-2b Rate, the Class A-3 Rate, the Class A-4 Rate or
      the Class B Rate, as the context may require.

   

  
    6

    
      

  

  

  

  “Issuer” means BMW Vehicle Owner Trust 20[__]-[__] until a successor replaces it and, thereafter, means the successor and, for
      purposes of any provision contained herein and required by the TIA, each other obligor on the Notes.

   

  “Issuer Order” or “Issuer Request” means a written order or request signed in the name of the Issuer by any one of its
      Authorized Officers and delivered to the Indenture Trustee.

   

  “Later Sold Note” has the meaning specified in Section 2.04.

   

  “Note” means a Class A-1 Note, Class A-2a Note, Class A-2b Note, Class A-3 Note, Class A-4 Note or Class B Note, as the context
      may require.

   

  “Note Depository Agreement” means the letter of representations relating to the Notes, dated [__________], 20[__], executed by
      the Issuer and delivered to The Depository Trust Company, as the initial Clearing Agency.

   

  “Note Owner” means, with respect to a Book-Entry Note, the Person who is the beneficial owner of such Book-Entry Note, as
      reflected on the books of the Clearing Agency or on the books of a Person maintaining an account with such Clearing Agency (directly as a Clearing Agency Participant or as an indirect participant, in each case in accordance with the rules of such
      Clearing Agency).

   

  “Note Register” and “Note Registrar” have the respective meanings specified in Section 2.04.

   

  “Noteholder Tax Identification Information” means properly completed and signed tax certifications (generally with respect to
      U.S. Federal Income Tax, IRS Form W-9 (or applicable successor form) in the case of a person that is a “United States Person” within the meaning of Section 7701(a)(30) of the Code or the appropriate IRS Form W-8 (or applicable successor form) in the
      case of a person that is not a “United States Person” within the meaning of Section 7701(a)(30) of the Code).

   

  “Officer’s Certificate” means a certificate signed by any Authorized Officer of the Issuer, under the circumstances described
      in, and otherwise complying with, the applicable requirements of Section 11.01, and delivered to the Indenture Trustee.  Unless otherwise specified, any reference in this Indenture to an Officer’s Certificate shall be to an Officer’s Certificate of
      any Authorized Officer of the Issuer.

   

  “Opinion of Counsel” means one or more written opinions of counsel who may, except as otherwise expressly provided in this
      Indenture, be an employee of or counsel to the Issuer or the Administrator and who shall be satisfactory to the Indenture Trustee, and which opinion or opinions shall be addressed to the Indenture Trustee, shall comply with any applicable
      requirements of Section 11.01 and shall be in form and substance satisfactory to the Indenture Trustee.

   

  “Outstanding” means, as of any date of determination, all Notes theretofore authenticated and delivered under this Indenture
      except:

   

  
    7

    
      

  

  

  

  (i)              Notes theretofore cancelled by the Note Registrar or  delivered to the Note Registrar for cancellation;

   

  (ii)             Notes or portions thereof the payment for which money  in the necessary amount has been theretofore deposited with the  Indenture Trustee or any Paying Agent in trust for the Holders of  such Notes (provided, however, that if such
      Notes are to be redeemed, notice of such redemption has been duly given pursuant to this  Indenture or provision for such notice has been made, satisfactory to the Indenture Trustee); and

   

  (iii)            Notes in exchange for or in lieu of which other  Notes have been authenticated and delivered pursuant to this  Indenture unless proof satisfactory to the Indenture Trustee is  presented that any such Notes are held by a bona fide
      purchaser; provided, however, that in determining whether the Holders of the requisite Outstanding Amount of the Notes have given any request, demand, authorization,
      direction, notice, consent or waiver hereunder or under any Basic Document, Notes owned by the Issuer, the Depositor, the Sponsor, the Servicer (so long as BMW FS or one of its affiliates is the Servicer), the Sellers or any Affiliate of any of the
      foregoing Persons shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Indenture Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only
      Notes that a Responsible Officer of the Indenture Trustee actually knows to be so owned shall be so disregarded.  Notes so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the
      Indenture Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not the Issuer, the Depositor, the Servicer, the Sellers or any Affiliate of any of the foregoing Persons. 

   

  “Outstanding Amount” means, as of any date of determination and as to any Notes, the aggregate principal amount of such Notes
      Outstanding as of such date of determination.

   

  “Owner Trustee” means [___________], not in its individual capacity but solely as Owner Trustee under the Trust Agreement, or
      any successor Owner Trustee under the Trust Agreement.

   

  “Paying Agent” means the Indenture Trustee or any other Person that meets the eligibility standards for the Indenture Trustee
      specified in Section 6.11 and is authorized by the Issuer to make payments to and distributions from the Collection Account, the Note Distribution Account and the Reserve Account, including payments of principal of or interest on the Notes on behalf
      of the Issuer.

   

  “Payment Date” means the [__] day of each month, or if any such date is not a Business Day, the next succeeding Business Day,
      commencing in [__] 20[__].

   

  “Person” means any individual, corporation, estate, partnership, limited liability company, joint venture, association, joint
      stock company, trust or statutory trust (including any

   

  
    8

    
      

  

  

  

  beneficiary thereof), unincorporated organization or government or any agency or political subdivision thereof.

   

  “Predecessor Note” means, with respect to any particular Note, every previous Note evidencing all or a portion of the same debt
      as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 2.06 in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the
      mutilated, lost, destroyed or stolen Note.

   

  “Proceeding” means any suit in equity, action at law or other judicial or administrative proceeding.

   

  “Receivables” means any contract listed on Schedule A (which Schedule may be in the form of microfiche).

   

  “Receivables Purchase Agreement” means each of (i) the Receivables Purchase Agreement, dated as of [__________], 20[__],
      between BMW FS, as Seller, and the Depositor and (ii) the Receivables Purchase Agreement, dated as of [__________], 20[__], between BMW Bank, as Seller, and the Depositor.

   

  “Record Date” means, as to any Payment Date or the Redemption Date (i) if the Notes are issued in book-entry form, the close of
      business on the Business Day immediately preceding such Payment Date or the Redemption Date and (ii) if the Notes are issued in definitive form, the last Business Day of the month preceding such Payment Date or the Redemption Date.

   

  “Redemption Date” means, as the context requires, in the case of a redemption of the Notes pursuant to Section 10.01, the
      Payment Date specified by the Servicer or the Issuer pursuant to Section 10.01.

   

  “Redemption Price” means in the case of a redemption of the Notes pursuant to Section 10.01, an amount equal to the unpaid
      principal amount of the Notes redeemed plus accrued and unpaid interest thereon at the Interest Rate for each Note being so redeemed on such Redemption Date.

   

  “Registered Holder” means the Person in whose name a Note is registered on the Note Register on the applicable Record Date.

   

  “Regulation AB” means Subpart
        229.1100 – Asset Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1125, as such may be amended from time to time, and subject to such clarification and interpretation as have been provided by the Commission in the adopting releases (Asset-Backed

      Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005) and Asset-Backed Securities Disclosure and Registration, Securities Act Release No. 33-9638, 79 Fed. Reg. 57,184 (Sept. 24, 2014)) or by the staff of the
      Commission, or as may be provided by the Commission or its staff from time to time.

  

  

  “Regulation RR” means Regulation RR under the Exchange Act (17 C.F.R. §246.1, et seq.).

  

  

  

  

   

  
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  [“Replacement Transaction” means
        [a replacement swap agreement entered into by the Issuer upon the termination of the Swap Agreement, which agreement will include terms similar to those of the terminated Swap Agreement].]

  

  

  “Responsible Officer” means, with respect to the Indenture Trustee or Owner Trustee, as applicable, any officer within the
      Corporate Trust Office or successor group of the Indenture Trustee or the Owner Trustee, respectively, including any Vice President, Assistant Vice President, Assistant Treasurer, Assistant Secretary or any other officer of the Indenture Trustee or
      the Owner Trustee, respectively, customarily performing functions similar to those performed by any of the above designated officers and also, with respect to a particular matter, any other officer to whom such matter is referred because of such
      officer’s knowledge of and familiarity with the particular subject, in each case having direct responsibility for the administration of the Basic Documents.

   

  “Retained Notes” means the portion of the Notes retained by the Issuer or its affiliates on the Closing Date.

   

  “Sale and Servicing Agreement” means the Sale and Servicing Agreement, dated as of [__________], 20[__], among the Issuer, the
      Depositor, BMW FS, as Sponsor, Servicer, Custodian and Administrator, and the Indenture Trustee.

   

  “Schedule of Receivables” means the list of Receivables set forth in Schedule A (which Schedule may be in the form of
      microfiche).

   

  “Securities Act” means the Securities Act of 1933, as amended.

   

  “Seller” means each of (i) BMW FS and (ii) BMW Bank, each in its capacity as Seller under the applicable Receivables Purchase
      Agreement, and their respective successors in interest.

   

  “Servicer” means BMW FS, in its capacity as servicer under the Sale and Servicing Agreement, and any Successor Servicer
      thereunder.

   

  “Servicing Criteria” means the “servicing criteria” set forth in Item 1122(d) of Regulation AB, as such may be amended from
      time to time.

   

  “Sponsor” means BMW FS, in its capacity as sponsor under the Sale and Servicing Agreement, and any successor Sponsor
      thereunder.

   

  “State” means any one of the 50 states of the United States of America, or the District of Columbia.

   

  “Successor Servicer” has the meaning specified in Section 3.07(f).

   

  [“Swap Agreement” means [__________].]

   

  [“Swap Counterparty” means [__________].]

   

  
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  [“Swap Termination Event” means [__________].]

  

  

  “Trust Agreement” means the Amended and Restated Trust Agreement, dated as of [__________], 20[__], between the Depositor and
      [__________], as Owner Trustee.

   

  “Trust Estate” means all money, instruments, rights and other property that are subject or intended to be subject to the lien
      and security interest of this Indenture for the benefit of the Noteholders (including, without limitation, all property and interests Granted to the Indenture Trustee), including all proceeds thereof.

   

  “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as amended and as in force on the date hereof, unless
      otherwise specifically provided.

   

  “UCC” means, unless the context otherwise requires, the Uniform Commercial Code as in effect in the relevant jurisdiction, as
      amended from time to time.

   

  “Underwriter” means each of [__________], [__________], [__________] and [__________].

   

  “Verified Note Owner” has the meaning specified in Section 13.01.

   

  (b) Except as otherwise specified herein or as the context may otherwise require, capitalized terms used herein but not otherwise defined shall
      have the meanings ascribed thereto in the Sale and Servicing Agreement.

   

  SECTION 1.02.        Other
      Definitional Provisions.

   

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

   

  (b) As used in this Indenture and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined
      in this Indenture or in any such certificate or other document, and accounting terms partly defined in this Indenture or in any such certificate or other document to the extent not defined, shall have the respective meanings given to them under
      generally accepted accounting principles.  To the extent that the definitions of accounting terms in this Indenture or in any such certificate or other document are inconsistent with the meanings of such terms under generally accepted accounting
      principles, the definitions contained in this Indenture or in any such certificate or other document shall control.

   

  (c) The words “hereof,” “herein,” “hereunder” and words of similar import when used in this Indenture shall refer to this Indenture as a whole and
      not to any particular provision of this Indenture; Article, Section, Schedule and Exhibit references contained in this Indenture are references to Articles, Sections, Schedules and Exhibits in or to this Indenture unless otherwise specified; and the
      term “including” shall mean “including without limitation”.

   

  
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  (d) The definitions contained in this Indenture 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.

   

  (e) Any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means
      such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; references to a Person
      are also to its permitted successors and assigns.

   

  SECTION 1.03.        Incorporation

      by Reference of Trust Indenture Act.  Whenever this Indenture refers to a provision of the TIA, such provision is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this Indenture have the following
      meanings:

   

  “Commission” means the Securities and Exchange Commission.

   

  “indenture securities” means the Notes.

   

  “indenture security holder” means a Noteholder.

   

  “indenture to be qualified” means this Indenture.

   

  “indenture trustee” or “institutional trustee” means the Indenture Trustee.

   

  “obligor” on the indenture securities means the Issuer and any other obligor on the indenture securities.

   

  All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined
      by Commission rule have the meaning assigned to them by such definitions.

   

  ARTICLE II.

      

      THE NOTES

   

  SECTION 2.01.        Form. 

      The Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3 Notes, the Class A-4 Notes and the Class B Notes, in each case together with the Indenture Trustee’s certificate of authentication, shall be in substantially the form set
      forth in Exhibit A-1, Exhibit A-2, Exhibit A-3, Exhibit A-4, Exhibit A-5 and Exhibit A-6, respectively, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such
      letters, numbers or other marks of identification and such legends or endorsements placed thereon as may, consistent herewith, be determined by the officers executing the Notes, as evidenced by their execution of the Notes.  Any portion of the text
      of any Note may be set forth on the reverse thereof, with an appropriate reference thereto on the face of such Note.

   

  
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  The Definitive Notes shall be typewritten, printed, lithographed or engraved or produced by any combination of these methods
      (with or without steel engraved borders), all as determined by the Authorized Officer executing such Notes, as evidenced by their execution of such Notes.

   

  Each Note shall be dated the date of its authentication.  The terms of the Notes set forth in Exhibit A-1, Exhibit A-2, Exhibit
      A-3, Exhibit A-4, Exhibit A-5 and Exhibit A-6 are part of the terms of this Indenture.

   

  SECTION 2.02.        Execution,

      Authentication and Delivery.  The Notes shall be executed on behalf of the Issuer by any of its Authorized Officers.  The signature of any such Authorized Officer on the Notes may be manual or facsimile.

   

  Notes bearing the manual or facsimile signature of individuals who were at any time Authorized Officers of the Issuer shall
      bind the Issuer, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Notes or did not hold such offices at the date of such Notes.

   

  The Indenture Trustee shall upon Issuer Order authenticate and deliver Class A-1 Notes for original issue in an aggregate
      principal amount of $[_________], Class A-2a Notes for original issue in an aggregate principal amount of $[_________], Class A-2b Notes for original issue in an aggregate principal amount of $[_________], Class A-3 Notes for original issue in an
      aggregate principal amount of $[_________], Class A-4 Notes for original issue in an aggregate principal amount of $[_________] and Class B Notes for original issue in an aggregate principal amount of $[_________].  The aggregate principal amount of
      Class A-1 Notes, Class A-2a Notes, Class A-2b Notes, Class A-3 Notes, Class A-4 Notes and Class B Notes outstanding at any time may not exceed such respective amounts except as provided in Section 2.06.

   

  The Notes shall be issuable as registered Notes in minimum denominations of $1,000 and in integral multiples of $1,000 in
      excess thereof (except for one Note of each class which may be issued in a denomination other than an integral multiple of $1,000).

   

  No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there appears
      on such Note a certificate of authentication substantially in the form provided for herein executed by the Indenture Trustee by the manual signature of one of its authorized signatories, and such certificate upon any Note shall be conclusive
      evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder.

   

  SECTION 2.03.        Temporary

      Notes.  Pending the preparation of Definitive Notes, the Issuer may execute, and upon receipt of an Issuer Order the Indenture Trustee shall authenticate and deliver, temporary Notes that are printed, lithographed, typewritten, mimeographed or
      otherwise produced, of the tenor of the Definitive Notes in lieu of which they are issued and with such variations not inconsistent with the terms of this Indenture as the officers executing such Notes may determine, as evidenced by their execution
      of such Notes.

   

  If temporary Notes are issued, the Issuer shall cause Definitive Notes to be prepared without unreasonable delay.  After the
      preparation of Definitive Notes, the temporary

   

  
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  Notes shall be exchangeable for Definitive Notes upon surrender of the temporary Notes at the office or agency of the Issuer to be maintained as
      provided in Section 3.02, without charge to the Holder.  Upon surrender for cancellation of any one or more temporary Notes, the Issuer shall execute, and the Indenture Trustee shall authenticate and deliver in exchange therefor, a like principal
      amount of Definitive Notes of authorized denominations.  Until so exchanged, the temporary Notes shall in all respects be entitled to the same benefits under this Indenture as Definitive Notes.

   

  SECTION 2.04.        Registration;

      Registration of Transfer and Exchange.  The Issuer shall cause to be kept a register (the “Note Register”) in which, subject to such reasonable regulations as it may prescribe, the Note Registrar shall provide for the registration of Notes and the
      registration of all transfers of Notes.  The Indenture Trustee initially shall be the “Note Registrar” for the purpose of registering Notes and transfers of Notes as herein provided.  Upon any resignation of any Note Registrar, the Issuer shall
      promptly appoint a successor or, if it elects not to make such an appointment, assume the duties of Note Registrar.

   

  If a Person other than the Indenture Trustee is appointed by the Issuer as Note Registrar, the Issuer will give the Indenture
      Trustee prompt written notice of the appointment of such Note Registrar and of the location, and any change in the location, of the Note Register, and the Indenture Trustee shall have the right to inspect the Note Register at all reasonable times and
      to obtain copies thereof, and the Indenture Trustee shall have the right to conclusively rely upon a certificate executed on behalf of the Note Registrar by an Executive Officer thereof as to the names and addresses of the Holders of the Notes and
      the principal amounts and number of such Notes.

   

  Upon surrender for registration of transfer of any Note at the office or agency of the Issuer to be maintained as provided in
      Section 3.02, if the requirements of Section 8-401(a) of the UCC are met, the Issuer shall execute, and the Indenture Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, in the name of the designated transferee or
      transferees, one or more new Notes of the same Class in any authorized denominations, of a like aggregate principal amount.

   

  At the option of the Holder, Notes may be exchanged for other Notes of the same Class in any authorized denominations, of a
      like aggregate principal amount, upon surrender of the Notes to be exchanged at the office or agency of the Issuer maintained as provided in Section 3.02.  Whenever any Notes are so surrendered for exchange, if the requirements of Section 8-401(a) of
      the UCC are met, the Issuer shall execute, and the Indenture Trustee, without having to verify that the requirements of 8-401(a) have been met, shall authenticate and the Noteholder shall obtain from the Indenture Trustee, the Notes that the
      Noteholder making the exchange is entitled to receive.

   

  All Notes issued upon any registration of transfer or exchange of Notes shall be the valid obligations of the Issuer,
      evidencing the same debt, and entitled to the same benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange.

   

  Every Note presented or surrendered for registration of transfer or exchange shall be duly endorsed by, or be accompanied by a
      written instrument of transfer in form satisfactory

   

  
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  to the Indenture Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed
      by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program”
      as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Exchange Act.

   

  No service charge shall be made to a Holder for any registration of transfer or exchange of Notes, but the Issuer may require
      payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes, other than exchanges pursuant to Section 2.03 or 9.05 not involving any transfer.

   

  Each Noteholder or holder of an interest in a Note, by acceptance of such Note or such interest therein, agrees to provide to
      the Indenture Trustee, any Note Paying Agent or the Issuer, upon its request, the Noteholder Tax Identification Information and, to the extent FATCA Withholding Tax is applicable, the FATCA Information.  In addition, each Noteholder or holder of an
      interest in a Note, by acceptance of such Note or such interest therein, agrees that the Indenture Trustee has the right to withhold any amounts of interest (properly withholdable under law and without any corresponding gross-up) payable to a
      Noteholder or holder of an interest in a Note that fails to comply with the requirements of the preceding sentence.

   

  The preceding provisions of this Section notwithstanding, the Issuer shall not be required to make and the Note Registrar need
      not register transfers or exchanges of Notes selected for redemption or of any Note for a period of fifteen (15) days preceding the due date for any payment with respect to the Note.

   

  No Note, or any interest therein, may be transferred to an “employee benefit plan” within the meaning of Section 3(3) of ERISA,
      a “plan” described in Section 4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by reason of an employee benefit plan’s or other plan’s investment in such entity, unless such transferee represents,
      warrants and covenants that its purchase and holding of such note will not result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code because it will satisfy the requirements of an applicable prohibited
      transaction exemption and will not cause a non-exempt violation of any applicable law that is substantially similar to ERISA or Section 4975 of the Code.  By its acquisition of a Note in book-entry form or any interest therein, each transferee will
      be deemed to have represented, warranted and covenanted that it satisfies the foregoing requirements and the Indenture Trustee may rely conclusively on the same for purposes hereof.

   

  With respect to any Retained Notes that are sold or otherwise transferred after the Closing Date (a “Later-Sold Note”), such
      sale or transfer shall not be effective unless (A) the Issuer, the Owner Trustee and the Indenture Trustee receive a Debt Opinion with respect to such sale or transfer of such Later-Sold Note (which such opinion shall include the Class, principal
      amount and CUSIP number of such Later-Sold Note) and (B) either (i) such Later-Sold Note has a CUSIP number that is different than that of any other outstanding Note immediately prior to such sale or can otherwise be separately tracked for reporting
      of original issue discount or (ii) for

   

  
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  U.S. federal income tax purposes, such Later-Sold Note has the same issue price and issue date as any outstanding Notes that have the same CUSIP
      number as such Later-Sold Note.

   

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

   

  SECTION 2.05.        [Reserved].

   

  SECTION 2.06.        Mutilated,

      Destroyed, Lost or Stolen Notes.  If (i) any mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the
      Indenture Trustee such security or indemnity as may be required by it to hold the Issuer and the Indenture Trustee harmless, then, in the absence of notice to the Issuer, the Note Registrar or a Responsible Officer of the Indenture Trustee that such
      Note has been acquired by a bona fide purchaser, and provided that the requirements of Section 8-405 of the UCC are met, the Issuer shall execute, and upon an Issuer Order the Indenture Trustee shall authenticate and deliver, in exchange for or in
      lieu of any such mutilated, destroyed, lost or stolen Note, a replacement Note of the same Class; provided, however, that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall have become or within fifteen (15) days shall be due
      and payable, or shall have been called for redemption, instead of issuing a replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so due or payable or upon the Redemption Date without surrender thereof.  If, after the delivery
      of such replacement Note or payment of a destroyed, lost or stolen Note, a bona fide purchaser of the original Note in lieu of which such replacement Note was issued presents for payment such original Note, the Issuer and the Indenture Trustee shall
      be entitled to recover such replacement Note (or such payment) from the Person to whom it was delivered or any Person taking such replacement Note from such Person to whom such replacement Note was delivered or any assignee of such Person, except a
      bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the Issuer or the Indenture Trustee in connection therewith.

   

  Upon the issuance of any replacement Note under this Section, the Issuer or the Indenture Trustee may require the payment by
      the Holder of such Note of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses (including the fees and expenses of the Indenture Trustee or the Note Registrar)
      connected therewith.

   

  Every replacement Note issued pursuant to this Section in replacement of any mutilated, destroyed, lost or stolen Note shall
      constitute an original additional contractual obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
      proportionately with any and all other Notes duly issued hereunder.

   

  The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with
      respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes.

   

  
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  SECTION 2.07.        Persons

      Deemed Owners.  Prior to due presentment for registration of transfer of any Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name any Note is registered (as of the day of
      determination) as the owner of such Note for the purpose of receiving payments of principal of and interest, if any, on such Note and for all other purposes whatsoever, whether or not such Note be overdue, and none of the Issuer, the Indenture
      Trustee or any agent of the Issuer or the Indenture Trustee shall be affected by notice to the contrary.

   

  SECTION 2.08.        Payment

      of Principal and Interest; Defaulted Interest.

   

  (a) The Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3 Notes, the Class A-4 Notes and the Class B Notes shall accrue
      interest at the Class A-1 Rate, the Class A-2a Rate, the Class A-2b Rate, the Class A-3 Rate, the Class A-4 Rate and the Class B Rate, respectively, as set forth in Exhibit A-1, Exhibit A-2, Exhibit A-3, Exhibit A-4, Exhibit A-5 and Exhibit A-6,
      respectively, and such interest shall be payable on each Payment Date as specified therein, subject to Section 3.01.  Any installment of interest or principal payable on a Note that is punctually paid or duly provided for by the Issuer on the
      applicable Payment Date shall be paid to the Person in whose name such Note (or one or more Predecessor Notes) is registered on the Record Date by wire transfer as directed by such Holder provided such Holder has provided written wiring instructions
      to the Indenture Trustee and otherwise by check mailed first-class postage prepaid to such Person’s address as it appears on the Note Register on such Record Date, except that, unless Definitive Notes have been issued pursuant to Section 2.12, with
      respect to Notes registered on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.), payment shall be made by wire transfer in immediately available funds to the account designated by such
      nominee; provided, however, that the final installment of principal payable with respect to such Note on a Payment Date or on the related Final Scheduled Payment Date (including the Redemption Price for any Note called for redemption pursuant to
      Section 10.01) shall be payable as provided in paragraph (b) below.  The funds represented by any such checks returned undelivered shall be held in accordance with Section 3.03.

   

  (b) The principal of each Note shall be payable in installments on each Payment Date as provided in Section 3.01 and on any applicable distribution
      date pursuant to Section 12.05 and the forms of the Notes set forth in Exhibit A-1, Exhibit A-2, Exhibit A-3, Exhibit A-4, Exhibit A-5 and Exhibit A-6.  Notwithstanding the foregoing, the entire unpaid principal amount of the Notes may be declared
      immediately due and payable, if not previously paid, in the manner provided in Section 5.02 on any date on which an Event of Default shall have occurred and be continuing by the Indenture Trustee or the Indenture Trustee acting at the direction of
      the Holders of Notes representing not less than a majority of the Outstanding Amount of the Notes.  All principal payments on each Class of Notes shall be made pro rata to the Noteholders of the related Class entitled thereto.  Upon written notice
      thereof, the Indenture Trustee shall notify the Person in whose name a Note is registered at the close of business on the Record Date preceding the Payment Date on which the Issuer expects the final installment of principal of and interest on such
      Note to be paid; provided, that such notice shall be not less than fifteen (15) days and not more than thirty (30) days prior to such date.  Such notice shall specify that such final installment will be payable only upon presentation and surrender of
      such Note and shall specify the place where such Note may be presented and surrendered for payment of such

   

  
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  installment.  Notices in connection with redemptions of Notes shall be mailed to Noteholders as provided in Section 10.02.

   

  (c) If the Issuer defaults in a payment of interest on the Notes, the Issuer shall pay defaulted interest (plus interest on such defaulted interest
      to the extent lawful) at the applicable Interest Rate in any lawful manner on the next Payment Date.

   

  SECTION 2.09.        Cancellation. 

      All Notes surrendered for payment, registration of transfer, exchange or redemption shall, if surrendered to any Person other than the Indenture Trustee, be delivered to the Indenture Trustee and shall be promptly cancelled by the Indenture Trustee. 
      The Issuer may at any time deliver to the Indenture Trustee for cancellation any Notes previously authenticated and delivered hereunder that the Issuer may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly cancelled
      by the Indenture Trustee.  No Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this Section, except as expressly permitted by this Indenture.  All cancelled Notes may be held or disposed of by the
      Indenture Trustee in accordance with its standard retention or disposal policy as in effect at the time unless the Issuer shall direct by an Issuer Order that they be destroyed or returned to it; provided, that such Issuer Order is timely and the
      Notes have not been previously disposed of by the Indenture Trustee.

   

  SECTION 2.10.        Book-Entry

      Notes.  The Notes, upon original issuance, will be issued in the form of typewritten Notes representing the Book-Entry Notes, to be delivered to the Indenture Trustee, as custodian for The Depository Trust Company, the initial Clearing Agency, by, or
      on behalf of, the Issuer.  The Book-Entry Notes shall be registered initially on the Note Register in the name of Cede & Co., the nominee of the initial Clearing Agency, and no Note Owner thereof will receive a Definitive Note representing such
      Note Owner’s interest in such Note, except as provided in Section 2.12.  Unless and until definitive, fully registered Notes (the “Definitive Notes”) have been issued to such Note Owners pursuant to Section 2.12:

   

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

   

  (ii)               the Note Registrar and the Indenture Trustee shall be entitled to deal with the Clearing Agency for all purposes of this Indenture (including the payment of principal of and interest on the Notes and the giving of instructions or
      directions hereunder) as the sole Holder of the Notes, and shall have no obligation to the Note Owners;

   

  (iii)              to the extent that the provisions of this Section conflict with any other provisions of this Indenture, the provisions of this Section shall control;

   

  (iv)              the rights of Note Owners shall be exercised only through the Clearing Agency and shall be limited to those established by law and agreements between such Note Owners and the Clearing Agency or the Clearing Agency Participants pursuant
      to the Note Depository Agreement.  Unless and until Definitive Notes are issued pursuant to Section 2.12, the initial Clearing Agency will make book-entry transfers among the Clearing Agency Participants and

   

  
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  receive and transmit payments of principal of and interest on the Notes to such Clearing Agency Participants; and

   

  (v) whenever this Indenture requires or permits actions to be taken based upon instructions or directions of Holders of Notes evidencing a
      specified percentage of the Outstanding Amount of the Notes, the Clearing Agency shall be deemed to represent such percentage only to the extent that it has received instructions to such effect from Note Owners or Clearing Agency Participants owning
      or representing, respectively, such required percentage of the beneficial interest in the Notes and has delivered such instructions to the Indenture Trustee.

   

  SECTION 2.11.        Notices

      to Clearing Agency.  Whenever a notice or other communication to the Noteholders is required under this Indenture, unless and until Definitive Notes shall have been issued to such Note Owners pursuant to Section 2.12, the Indenture Trustee shall give
      all such notices and communications specified herein to be given to Holders of the Notes to the Clearing Agency, and shall have no obligation to such Note Owners.

   

  SECTION 2.12.        Definitive

      Notes.  If (i) the Administrator advises the Indenture Trustee in writing that the Clearing Agency is no longer willing or able to properly discharge its responsibilities with respect to the Book-Entry Notes and the Administrator is unable to locate
      a qualified successor, (ii) the Depositor or the Administrator, at its option, with the consent of the Clearing Agency participants, advises the Indenture Trustee in writing that it elects to terminate the book-entry system, or (iii) after the
      occurrence of an Event of Default, Note Owners of the Book-Entry Notes representing beneficial interests aggregating at least a majority of the Outstanding Amount of such Notes, acting together as a single class, advise the Indenture Trustee through
      the Clearing Agency in writing that the continuation of a book-entry system through the Clearing Agency is no longer in the best interests of such Note Owners, then the Clearing Agency shall notify all Note Owners, the Administrator and the Indenture
      Trustee of the occurrence of any such event and of the availability of Definitive Notes to Note Owners requesting the same.  Upon surrender to the Indenture Trustee of the typewritten Notes representing the Book-Entry Notes by the Clearing Agency,
      accompanied by registration instructions, the Issuer shall execute and the Indenture Trustee upon an Issuer Order shall authenticate the Definitive Notes in accordance with the written instructions of the Clearing Agency.  None of the Issuer, the
      Note Registrar, the Administrator or the Indenture Trustee shall be liable for any delay in delivery of such instructions and may conclusively rely on, and shall be protected in relying on, such instructions.  Upon the issuance of Definitive Notes,
      the Indenture Trustee shall recognize the Holders of the Definitive Notes as Noteholders.

   

  The Indenture Trustee shall not be liable if a qualified successor Clearing Agency cannot be located.  The Definitive Notes
      shall be typewritten, printed, lithographed or engraved or produced by any combination of such methods (with or without steel engraved borders), all as determined by the officers executing the Notes, as evidenced by their execution of the Notes.

   

  SECTION 2.13.        Authenticating

      Agents.  Upon the request of the Issuer, the Indenture Trustee shall, and if the Indenture Trustee so chooses the Indenture Trustee may, appoint one or more authenticating agents (“Authenticating Agents”) with power to act on its behalf and subject
      to its direction in the authentication of Notes in connection with issuance,

   

  
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  transfers and exchanges under Sections 2.02, 2.04, 2.06 and 9.05, as fully to all intents and purposes as though each such Authenticating Agent
      had been expressly authorized by such Sections to authenticate such Notes.  For all purposes of this Indenture, the authentication of Notes by an Authenticating Agent pursuant to this Section shall be deemed to be the authentication of Notes by the
      Indenture Trustee.

   

  Any corporation into which any Authenticating Agent may be merged or converted or with which it may be consolidated, or any
      corporation resulting from any merger, consolidation or conversion to which any Authenticating Agent shall be a party, or any corporation succeeding to the corporate trust business of any Authenticating Agent, shall be the successor of such
      Authenticating Agent hereunder, without the execution or filing of any further act on the part of the parties hereto or such Authenticating Agent or such successor corporation.

   

  Any Authenticating Agent may at any time resign by giving written notice of resignation to the Indenture Trustee and the
      Issuer.  The Indenture Trustee may at any time terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and the Issuer.  Upon receiving such notice of resignation or upon such termination,
      the Indenture Trustee shall promptly appoint a successor Authenticating Agent and shall give written notice of such appointment to the Issuer.

   

  The Issuer agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services and
      reimbursement for its reasonable expenses relating thereto.  The provisions of Sections 2.09 and 6.04 shall be applicable to any Authenticating Agent.

   

  SECTION 2.14.        Tax
      Treatment.  The Issuer has entered into this Indenture, and the Notes will be issued, with the intention that, for purposes of federal and state income tax, franchise tax and any other tax measured in whole or in part by income, the Notes held by
      parties unrelated to the holders of the Certificates will qualify as indebtedness secured by the Trust Estate.  The Issuer, by entering into this Indenture, and each Noteholder, by its acceptance of a Note (and each Note Owner by its acceptance of a
      beneficial interest in the applicable Book-Entry Note), agree to treat the Notes for such purposes as indebtedness.

   

  ARTICLE III.

      

      COVENANTS

   

  SECTION 3.01.        Payment

      of Principal and Interest.  The Issuer will duly and punctually pay the principal of and interest, if any, on the Notes in accordance with the terms of the Notes and this Indenture [and shall duly and punctually pay amounts, if any, owing to each
      Swap Counterparty in accordance with the terms of this Indenture and the related Swap Agreement]. Without limiting the foregoing, on each Payment Date and on any applicable distribution date pursuant to Section 12.05, the Issuer will cause to be
      distributed all amounts deposited pursuant to the Sale and Servicing Agreement or this Indenture, as applicable, into the Note Distribution Account in accordance with the priorities and amounts set forth herein and in the Sale and Servicing Agreement
      (i) for the benefit of the Class A-1 Notes, to the Class A-1 Noteholders, (ii) for the benefit of the Class A-2a Notes, to the Class A-2a Noteholders, (iii) for the benefit of the Class A-2b Notes, to the Class A-2b Noteholders, (iv) for the benefit
      of the

   

  
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  Class A-3 Notes, to the Class A-3 Noteholders, (v) for the benefit of the Class A-4 Notes, to the Class A-4 Noteholders, (vi) for the benefit of
      the Class B Notes, to the Class B Noteholders [and (vii) for the benefit of each Swap Counterparty]. Amounts properly withheld under the Code by any Person from a payment to any Noteholder of interest or principal shall be considered as having been
      paid by the Issuer to such Noteholder for all purposes of this Indenture.

   

  SECTION 3.01.A.        [Interest Rate Cap Collateral Account.  In the event that pursuant to the terms of the interest rate cap
      agreement, the cap counterparty is required to deposit cash or securities as collateral to secure its obligations (“Interest Rate Cap Collateral”), the Indenture Trustee at the written direction of the cap counterparty shall establish and maintain an
      Eligible Account in the name of the Indenture Trustee for the benefit of the Issuer and the cap counterparty (an “Interest Rate Cap Agreement Collateral Account”).  All sums on deposit and securities held in any Interest Rate Cap Agreement Collateral
      Account shall be used only for the purposes set forth in the related credit support agreement to be entered into between the Trust and the cap counterparty (the “Interest Rate Cap Credit Support Agreement”); provided, however, that the Indenture
      Trustee is not a party to the Interest Rate Cap Credit Support Agreement and shall have no obligations or responsibilities under the Interest Rate Cap Credit Support Agreement, nor any obligation to monitor the Issuer’s or the cap counterparty’s
      compliance with the terms of the Interest Rate Cap Credit Support Agreement.  Amounts on deposit in any Interest Rate Cap Agreement Collateral Account may be invested in Eligible Investments at the written direction of the cap counterparty and on
      each Payment Date, all Investment Earnings actually received by the Indenture Trustee on amounts on deposit in the Interest Rate Cap Agreement Collateral Account or on securities held by the Indenture Trustee as Interest Rate Cap Collateral shall be
      paid directly to the cap counterparty and not become part of Available Amounts in accordance with the terms of the Interest Rate Cap Credit Support Agreement.  The Indenture Trustee shall not be liable for any losses on investments made in accordance
      with the cap counterparty’s direction.  All amounts deposited in the Interest Rate Cap Agreement Collateral Account shall be paid to the Issuer (and become part of Available Amounts on the related Payment Date) or returned to the cap counterparty (in
      either case, upon receipt by the Indenture Trustee of written instructions from the Administrator to release the amounts on deposit) in accordance with the provisions set forth in the Interest Rate Cap Credit Support Agreement.]

   

  SECTION 3.02.        Maintenance

      of Office or Agency.  The Note Registrar, on behalf of the Issuer, shall maintain at the Corporate Trust Office or such other location in Minnesota or Illinois chosen by the Note Registrar, acting for the Issuer, an office or agency where Notes may
      be surrendered for registration of transfer or exchange, and where notices to and demands upon the Issuer in respect of the Notes and this Indenture may be served.  The Issuer hereby initially appoints the Indenture Trustee as its agent to receive
      all such surrenders, notices and demands.  The Issuer shall give prompt written notice to the Indenture Trustee of the location, and of any change in the location, of any such office or agency.  If at any time the Issuer shall fail to maintain any
      such office or agency or shall fail to furnish the Indenture Trustee with the address thereof, such surrenders, notices and demands may be made or served at the Corporate Trust Office, and the Issuer hereby appoints the Indenture Trustee as its agent
      to receive all such surrenders, notices and demands.

   

  
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  SECTION 3.03.        Money
      for Payments To Be Held in Trust.  All payments of amounts due and payable with respect to any Notes that are to be made from amounts withdrawn from the Collection Account, the Note Distribution Account and the Reserve Account shall be made on behalf
      of the Issuer by the Indenture Trustee or by another Paying Agent, and no amounts so withdrawn from the Collection Account, the Note Distribution Account or the Reserve Account for payments of Notes [or any Swap Counterparty] shall be paid to the
      Issuer except as provided in this Section.

   

  On or before each Payment Date and Redemption Date, the Issuer shall deposit or cause to be deposited in the Note Distribution
      Account an aggregate sum sufficient to pay the amounts then becoming due under the Notes [or each Swap Agreement], such sum to be held in trust for the benefit of the Persons entitled thereto, and (unless the Paying Agent is the Indenture Trustee)
      shall promptly notify the Indenture Trustee of its action or failure so to act.

   

  The Issuer will cause each Paying Agent other than the Indenture Trustee to execute and deliver to the Indenture Trustee an
      instrument in which such Paying Agent shall agree with the Indenture Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby so agrees), subject to the provisions of this Section, that such Paying Agent will:

   

  (i)               hold all sums held by it for the payment of amounts due with respect to the Notes [or any Swap Agreement] in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of
      as herein provided and pay such sums to such Persons as herein provided;

   

  (ii)              give the Indenture Trustee notice of any default by the Issuer (or any other obligor on the Notes) of which it has actual knowledge in the making of any payment required to be made with respect to the Notes [or any Swap Agreement];

   

  (iii)             at any time during the continuance of any such default, upon the written request of the Indenture Trustee, forthwith pay to the Indenture Trustee all sums so held in trust by such Paying Agent;

   

  (iv)             immediately resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums held by it in trust for the payment of Notes [or any Swap Agreement] if at any time it ceases to meet the standards required to be met by a Paying
      Agent at the time of its appointment; and

   

  (v)              comply with all requirements of the Code with respect to the withholding from any payments made by it on any Notes of any applicable withholding taxes imposed thereon and with respect to any applicable reporting requirements in
      connection therewith.

   

  The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other
      purpose, by Issuer Order direct any Paying Agent to pay to the Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by the Indenture Trustee upon the same trusts as those upon which the sums were held by such

   

  
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  Paying Agent; and upon such payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be released from all further liability
      with respect to such money.

   

  Subject to applicable laws with respect to escheat of funds, any money held by the Indenture Trustee or any Paying Agent in
      trust for the payment of any amount due with respect to any Note and remaining unclaimed for two years after such amount has become due and payable shall be discharged from such trust and be paid upon Issuer Request to the Issuer; and the Holder of
      such Note shall thereafter, as an unsecured general creditor, look only to the Issuer for payment thereof (but only to the extent of the amounts so paid to the Issuer), and all liability of the Indenture Trustee or such Paying Agent with respect to
      such trust money shall thereupon cease; provided, however, that the Indenture Trustee or such Paying Agent, before being required to make any such repayment, shall at the expense and direction of the Issuer cause to be published once, in an
      Authorized Newspaper, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than thirty (30) days from the date of such publication, any unclaimed balance of such money then remaining will be
      repaid to the Issuer.  The Indenture Trustee shall also adopt and employ, at the expense and direction of the Issuer, any other reasonable means of notification of such repayment (including, but not limited to, mailing notice of such repayment to
      Holders whose Notes have been called but have not been surrendered for redemption or whose right to or interest in moneys due and payable but not claimed is determinable from the records of the Indenture Trustee or of any Paying Agent, at the last
      address of record for each such Holder).

   

  SECTION 3.04.        Existence. 

      Except as otherwise permitted by the provisions of Section 3.10, the Issuer will keep in full effect its existence, rights and franchises as a statutory trust under the laws of the State of Delaware (unless it becomes, or any successor Issuer
      hereunder is or becomes, organized under the laws of any other State or of the United States of America, in which case the Issuer will keep in full effect its existence, rights and franchises under the laws of such other jurisdiction) and will obtain
      and preserve its qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Indenture, the Notes, the Collateral and each other instrument or agreement
      included in the Trust Estate.

   

  SECTION 3.05.        Protection

      of Trust Estate.  The Issuer will from time to time execute and deliver all such supplements and amendments hereto and all such financing statements, continuation statements, instruments of further assurance and other instruments, all as prepared by
      the Administrator and delivered to the Issuer, and shall take such other action necessary or advisable to:

   

  (i)               Grant more effectively all or any portion of the Trust Estate;

   

  (ii)              maintain or preserve the lien and security interest (and the priority thereof) of this Indenture or carry out more effectively the purposes hereof;

   

  (iii)             perfect, publish notice of or protect the validity of any Grant made or to be made by this Indenture;

   

  (iv)             enforce any of the Collateral;

   

  
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  (v)              preserve and defend title to the Trust Estate and the rights of the Indenture Trustee and the Noteholders [and each Swap Counterparty] in such Trust Estate against the claims of all Persons and parties; or

   

  (vi)             pay all taxes or assessments levied or assessed upon the Trust Estate when due.

   

  The Issuer hereby designates the Indenture Trustee, as its agent and attorney-in-fact, to execute upon an Issuer Order any financing statement,
      continuation statement or other instrument required to be executed pursuant to this Section 3.05.

   

  SECTION 3.06.        Opinions

      as to Trust Estate.

   

  (a) On the Closing Date, the Issuer shall cause to be furnished to the Indenture Trustee an Opinion of Counsel either stating that, in the opinion
      of such counsel, such action has been taken with respect to the recording and filing of this Indenture, any indentures supplemental hereto, and any other requisite documents, and with respect to the execution and filing of any financing statements
      and continuation statements, as are necessary to perfect and make effective the lien and security interest of this Indenture and reciting the details of such action, or stating that, in the opinion of such counsel, no such action is necessary to make
      such lien and security interest effective.

   

  (b) On or before April 30, in each calendar year, beginning in 20[__], the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel
      either stating that, in the opinion of such counsel, such action has been taken with respect to the recording, filing, re-recording and refiling of this Indenture, any indentures supplemental hereto and any other requisite documents and with respect
      to the execution and filing of any financing statements and continuation statements as is necessary to maintain the lien and security interest created by this Indenture and reciting the details of such action, or stating that in the opinion of such
      counsel no such action is necessary to maintain such lien and security interest.  Such Opinion of Counsel shall also describe the recording, filing, re-recording and refiling of this Indenture, any indentures supplemental hereto and any other
      requisite documents and the execution and filing of any financing statements and continuation statements that will, in the opinion of such counsel, be required to maintain the lien and security interest of this Indenture until April 30 of the
      following calendar year.

   

  SECTION 3.07.        Performance

      of Obligations; Servicing of Receivables.

   

  (a) The Issuer will not take any action and will use its reasonable best efforts not to permit any action to be taken by others that would release
      any Person from any of such Person’s material covenants or obligations under any instrument or agreement included in the Trust Estate or that would result in the amendment, hypothecation, subordination, termination or discharge of, or impair the
      validity or effectiveness of, any such instrument or agreement, except as expressly provided in this Indenture, the Sale and Servicing Agreement or such other instrument or agreement.

   

  (b) The Issuer may contract with other Persons with notification to the Rating Agencies to assist it in performing its duties under this Indenture,
      and any performance of such

   

  
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  duties by a Person identified to the Indenture Trustee in an Officer’s Certificate of the Issuer shall be deemed to be action taken by the
      Issuer.  Initially, the Issuer has contracted with the Servicer and the Administrator to assist the Issuer in performing its duties under this Indenture.

   

  (c) The Issuer will punctually perform and observe all of its obligations and agreements contained in this Indenture, the Basic Documents and in
      the instruments and agreements included in the Trust Estate, including but not limited to filing or causing to be filed all UCC financing statements and continuation statements required to be filed by the terms of this Indenture and the Sale and
      Servicing Agreement in accordance with and within the time periods provided for herein and therein.  Except as otherwise expressly provided therein, the Issuer shall not waive, amend, modify, supplement or terminate any Basic Document or any
      provision thereof without the written consent of either the Indenture Trustee or the Holders of at least a majority of the Outstanding Amount of the Notes: [provided, for the avoidance of doubt, that a transfer or assignment by a Swap Counterparty of
      any of its interests or obligations in accordance with the requirements of the related Swap Agreement (including the requirement, if applicable, that the Rating Agency Condition be satisfied) shall not constitute a waiver, amendment, modification,
      supplement or termination of the related Swap Agreement or any provisions thereof and shall not require].

   

  (d) If the Issuer shall have knowledge of the occurrence of a Servicer Termination Event under the Sale and Servicing Agreement, the Issuer shall
      promptly notify the Indenture Trustee and the Rating Agencies thereof, and shall specify in such notice the action, if any, the Issuer is taking with respect to such default.

   

    

  (e)              [Reserved.]

    

    

  

  (f) Upon any termination of the Servicer’s rights and powers pursuant to the Sale and Servicing Agreement, the Issuer shall promptly notify the
      Indenture Trustee thereof.  As soon as a successor servicer (a “Successor Servicer”) is appointed, the Issuer shall notify the Indenture Trustee in writing of such appointment, specifying in such notice the name and address of such Successor
      Servicer.  To the extent the Indenture Trustee is appointed as Successor Servicer under Section 8.02 of the Sale and Servicing Agreement, none of the responsibilities, duties and liabilities of the Servicer will transfer to the Indenture Trustee as
      Successor Servicer until the Indenture Trustee has received all documentation and data necessary to effect the transfer of the Servicer’s obligations to the Indenture Trustee.

   

  (g) Without limitation of the absolute nature of the assignment granted to the Indenture Trustee under this Indenture or the rights of the
      Indenture Trustee hereunder, the Issuer agrees (i) except to the extent otherwise provided in any Basic Document, that it will not, without the prior written consent of the Indenture Trustee acting at the direction of the Holders of at least a
      majority in Outstanding Amount of the Notes, amend, modify, waive, supplement, terminate or surrender, or agree to any amendment, modification, supplement, termination, waiver or surrender of, the terms of any Collateral (except to the extent
      otherwise provided in the Sale and Servicing Agreement) or the Basic Documents, or waive timely performance or observance by the Servicer under the Sale and Servicing Agreement or a Seller under the related Receivables Purchase Agreement; and (ii)
      that any such amendment shall not (A) increase or reduce in any manner the amount of, or accelerate or delay the timing of, distributions that are

   

  
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  required to be made for the benefit of the Noteholders or (B) reduce the aforesaid percentage of the Notes that is required to consent to any such
      amendment, without the consent of the Holders of all Outstanding Notes; provided, however, that the Indenture Trustee shall be entitled to an Opinion of Counsel that any such amendment, modification, supplement or waiver is authorized or permitted
      hereby and all conditions precedent thereto have been satisfied, and that the Indenture Trustee shall not be obligated to take any such action that affects the Indenture Trustee’s own rights, duties liabilities or immunities.  If the Indenture
      Trustee acting at the direction of such Holders agrees to any such amendment, modification, supplement or waiver, the Indenture Trustee agrees, promptly following a request by the Issuer to do so, to execute and deliver, at the Issuer’s own expense,
      such agreements, instruments, consents and other documents prepared by the Issuer as the Issuer may deem necessary or appropriate in the circumstances.

   

  (h) [As promptly as possible upon the occurrence of a Swap Termination Event or an Event of Default under the Swap Agreement, the Issuer shall hire or appoint a broker in order to
      obtain a Replacement Transaction according to the terms of the related Swap Agreement, and such broker shall accept its appointment by a written assumption in a form acceptable to the Issuer. In connection with any such appointment, the Issuer may
      make such arrangements for the compensation of such broker as it and such broker shall agree, and the Issuer shall be entitled to reimbursement for such expenses from any Swap Termination Payments received upon the occurrence of any Swap Termination
      Event or Event of Default under the related Swap Agreement; provided, that any such Swap Termination Payments shall be applied, first, in payment of any upfront payment required to enter into any Replacement Transaction and, second, to the extent of
      remaining funds available therefore, to the Issuer for any such reimbursement.]

   

  SECTION 3.08.        Negative

      Covenants.  So long as any Notes are Outstanding, the Issuer shall not:

   

  (i)                except as expressly permitted by this Indenture, the Receivables Purchase Agreements or the Sale and Servicing Agreement, sell, transfer, exchange or otherwise dispose of any of the properties or assets of the Issuer, including those
      included in the Trust Estate;

   

  (ii)               claim any credit on, or make any deduction from the principal or interest payable in respect of, the Notes (other than amounts properly withheld from such payments under the Code or applicable state law) or assert any claim against any
      present or former Noteholder by reason of the payment of the taxes levied or assessed upon any part of the  Trust Estate;

   

  (iii)              (A) permit the validity or effectiveness of this Indenture to be impaired, or permit the lien of this Indenture to be amended, hypothecated, subordinated, terminated or discharged, or permit any Person to be released from any covenants
      or obligations with respect to the Notes under this Indenture except as may be expressly permitted hereby, (B) permit any lien, charge, excise, claim, security interest, mortgage or other encumbrance (other than the lien of this Indenture) to be
      created on or extend to or otherwise arise upon or burden the

   

  
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  Trust Estate or any part thereof or any interest therein or the proceeds thereof (other than tax liens, mechanics’ liens and
      other liens that arise by operation of law, in each case on any of the Financed Vehicles and arising solely as a result of an action or omission of the related Obligor and the lien of this Indenture) or (C) permit the lien of this Indenture not to
      constitute a valid first priority (other than with respect to any such tax, mechanics’ or other lien) security interest in the Trust Estate;

   

  (iv)               assume

      or incur any indebtedness other than indebtedness incurred in accordance with the Basic Documents;

   

  (v)                except

      as otherwise permitted by the Basic Documents, dissolve or liquidate in whole or in part; or

   

  [(vi)              [enter

      into any amendment, modification or supplement to this Indenture or any other Basic Document without the consent of each Swap Counterparty that would materially adversely affect (i) any Swap Counterparty’s ability to enforce or protect its rights or
      remedies under the related Swap Agreement (including any security interest granted to such Swap Counterparty pursuant to this Indenture), (ii) the ability of the Issuer to timely and fully perform its obligations under each Swap Agreement or (iii)
      any of the Issuer’s obligations under each Swap Agreement or any Basic Document (including priority of payments under the Trust Agreement or this Indenture); or] [unless an Event of Default under this Indenture shall have occurred and be continuing,
      designate an “Early Termination Date” (as such term is defined in the related Swap Agreement”) under the related Swap Agreement without the consent of the Administrator;]

   

  SECTION 3.09.        Annual

      Statement and Assessment as to Compliance.

   

  (a) The Issuer will deliver to the Indenture Trustee, within ninety (90) days after the end of each fiscal year of the Issuer (commencing with fiscal year 20[__]), an Officer’s
      Certificate stating, as to the Authorized Officer signing such Officer’s Certificate, that:

   

  (i)               a review of the activities of the Issuer during such year and of its performance under this Indenture has been made under such Authorized Officer’s supervision; and

   

  (ii)              to the best of such Authorized Officer’s knowledge, based on such review, the Issuer has complied with all conditions and covenants under this Indenture throughout such year or, if there has been a default in its compliance with any
      such condition or covenant, specifying each such default known to such Authorized Officer and the nature and status thereof.

   

  (b) The Issuer shall supply to the Indenture Trustee such summaries of any information, documents and reports required to be filed by the Issuer
      pursuant to clauses (i) and (ii) of Section 3.09(a) as may be required pursuant to rules and regulations prescribed from time to time by the Commission.

   

  
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  (c) So long as the Issuer is required to file reports with the Commission pursuant to the Exchange Act, on or before [March 15th ] of each calendar year, commencing in 20[__], the Indenture Trustee shall:

   

  (i) deliver to the Issuer and the Administrator a report (in form and substance reasonably satisfactory to the Administrator, acting on behalf of
      the Issuer) regarding the Indenture Trustee’s assessment of compliance with the Servicing Criteria during the immediately preceding calendar year, as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB.  Such
      report shall be signed by an authorized officer of the Indenture Trustee, and shall address each of the Servicing Criteria specified on Exhibit B hereto; and

   

  (ii) deliver to the Issuer and the Administrator a report of a registered public accounting firm that attests to, and reports on, the assessment of
      compliance made by the Indenture Trustee and delivered pursuant to the preceding paragraph.  Such attestation shall be in accordance with Rules 13a-18 and 15d-18 of the Securities Act and the Exchange Act and Item 1122 of Regulation AB.

   

  SECTION 3.10.        Issuer

      May Consolidate, etc., Only on Certain Terms.

   

  (a) The Issuer shall not consolidate or merge with or into any other Person, unless:

   

  (i) the Person (if other than the Issuer) formed by or surviving such consolidation or merger shall be a Person organized and existing under the
      laws of the United States of America or any State and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Indenture Trustee, in form satisfactory to the Indenture Trustee, the duty to make due and punctual
      payment of the principal of and interest on all Notes and the performance or observance of every agreement and covenant of this Indenture on the part of the Issuer to be performed or observed, all as provided  herein;

   

  (ii) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing;

   

  (iii)             each Rating Agency shall not have notified the Indenture Trustee, the Administrator or the Owner Trustee, within ten (10) days after receiving notice of a consolidation or merger, that such consolidation or merger will result in a
      reduction or withdrawal of its then current rating on any Class of Notes;

   

  (iv)             the Issuer shall have received an Opinion of Counsel (and shall have delivered copies thereof to the Indenture Trustee) to the effect that such transaction will not have any material adverse federal income tax consequences to the
      Issuer, any Noteholder or any Certificateholder;

   

  (v) any action that is necessary to maintain the lien and  security interest created by this Indenture shall have been taken; and

   

  
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  (vi)            the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that such consolidation or merger and such supplemental indenture comply with this Article III and that all conditions
      precedent herein provided for relating to such transaction have been complied with (including any filing required by the Exchange Act) in all material respects.

   

  (b) The Issuer shall not convey or transfer any of its properties or assets, including those included in the Trust Estate, to any Person other than
      pursuant to the terms of the Basic Documents, unless:

   

  (i) the Person that acquires by conveyance or transfer the properties and assets of the Issuer the conveyance or transfer of which is hereby
      restricted (A) shall be a United States citizen or a Person organized and existing under the laws of the United States of America or any State, (B) expressly assumes, by an indenture supplemental hereto, executed and delivered to the Indenture
      Trustee, in form satisfactory to the Indenture Trustee, the due and punctual payment of the principal of and interest on all Notes and the performance or observance of every agreement and covenant of this Indenture on the part of the Issuer to be
      performed or observed, all as provided herein, (C) expressly agrees by means of such supplemental indenture that all right, title and interest so conveyed or transferred shall be subject and subordinate to the rights of Holders of the Notes [and each
      Swap Counterparty], (D) unless otherwise provided in such supplemental indenture, expressly agrees to indemnify, defend and hold harmless the Issuer and the Indenture Trustee against and from any loss, liability or expense arising under or related to
      this Indenture and the Notes and (E) expressly agrees by means of such supplemental indenture that such Person (or, if a group of Persons, one specified Person) shall make all filings with the Commission (and any other appropriate Person) required by
      the Exchange Act in connection with the Notes;

   

  (ii) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing;

   

  (iii)              the Rating Agency Condition shall have been satisfied with respect to such transaction and each Rating Agency;

   

  (iv)              the Issuer shall have received an Opinion of Counsel (and shall have delivered copies thereof to the Indenture Trustee) to the effect that such transaction will not have any material adverse federal income tax consequences to the
      Issuer, any Noteholder or any Certificateholder;

   

  (v) any action that is necessary to maintain the lien and security interest created by this Indenture shall have been taken; and

   

  (vi)              the Issuer shall have delivered to the Indenture  Trustee an Officer’s Certificate and an Opinion of Counsel each stating that such conveyance or transfer and such supplemental indenture comply with this Article III and that

   

  
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  all conditions precedent herein provided for relating to such transaction have been complied with (including any filing
      required by the Exchange Act) in all material respects.

   

  SECTION 3.11.        Successor

      or Transferee.

   

  (a) Upon any consolidation or merger of the Issuer in accordance with Section 3.10(a), the Person formed by or surviving such consolidation or
      merger (if other than the Issuer) shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer under this Indenture with the same effect as if such Person had been named as the Issuer herein.

   

  (b) Upon a conveyance or transfer of all the assets and properties of the Issuer pursuant to Section 3.10(b), BMW Vehicle Owner Trust 20[__]-[__]
      will be released from every covenant and agreement of this Indenture to be observed by or performed on the part of the Issuer with respect to the Notes immediately upon the delivery of documents and Opinions of Counsel set forth in Section 3.10 and a
      written notice to the Indenture Trustee stating that BMW Vehicle Owner Trust 20[__]-[__] is to be so released.

   

  SECTION 3.12.        No
      Other Business.  The Issuer shall not engage in any business other than financing, purchasing, owning, selling and managing the Receivables in the manner contemplated by this Indenture and the Basic Documents and any activities incidental thereto.

   

  SECTION 3.13.        No
      Borrowing.  The Issuer shall not issue, incur, assume, guarantee or otherwise become liable, directly or indirectly, for any indebtedness except for the Notes.

   

  SECTION 3.14.        Servicer’s

      Obligations.  The Issuer shall cause the Servicer to comply with the Sale and Servicing Agreement, including Sections 4.09, 4.10 and 4.11 and Article VII thereof.

   

  SECTION 3.15.        Guarantees,

      Loans, Advances and Other Liabilities.  Except as contemplated by the Trust Agreement, the Sale and Servicing Agreement or this Indenture, the Issuer shall not make any loan or advance or credit to, or guarantee (directly or indirectly or by an
      instrument having the effect of assuring another’s payment or performance on any obligation or capability of so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection with the obligations, stocks
      or dividends of, or own, purchase, repurchase or acquire (or agree contingently to do so) any stock, obligations, assets or securities of, or any other interest in, or make any capital contribution to, any Person.

   

  SECTION 3.16.        Capital

      Expenditures.  The Issuer shall not make any expenditure (by long-term or operating lease or otherwise) for capital assets (either realty or personality).

   

  SECTION 3.17.        Removal

      of Administrator.  So long as any Notes are Outstanding, the Issuer shall not remove the Administrator unless the Rating Agency Condition shall have been satisfied with respect to each Rating Agency in connection with such removal and the Indenture
      Trustee receives written notice of the foregoing and consents thereto.

   

  
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  SECTION 3.18.        Restricted

      Payments.  Except with respect to the proceeds from issuance of the Notes, the Issuer shall not, directly or indirectly, (i) pay any dividend or make any distribution (by reduction of capital or otherwise), whether in cash, property, securities or a
      combination thereof, to the Owner Trustee or any owner of a beneficial interest in the Issuer or otherwise with respect to any ownership or equity interest or security in or of the Issuer or to the Servicer, (ii) redeem, purchase, retire or otherwise
      acquire for value any such ownership or equity interest or security or (iii) set aside or otherwise segregate any amounts for any such purpose; provided, however, that the Issuer may make, or cause to be made, distributions as contemplated by, and to
      the extent funds are available for such purpose under, the Sale and Servicing Agreement, this Indenture or the Trust Agreement.  The Issuer will not, directly or indirectly, make payments to or distributions from the Note Distribution Account, the
      Collection Account or the Reserve Account except in accordance with this Indenture and the other Basic Documents.

   

  SECTION 3.19.        Notice

      of Events of Default.  The Issuer shall give the Indenture Trustee and the Rating Agencies prompt written notice of each Event of Default hereunder, and of each default on the part of (i) the Servicer of its obligations under the Sale and Servicing
      Agreement and (ii) the Sellers under the Receivables Purchase Agreements.

   

  SECTION 3.20.        Further

      Instruments and Acts.  Upon request of the Indenture Trustee, the Issuer will execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture.

   

  SECTION 3.21.        Perfection

      Representations.

   

  (a) The representations, warranties and covenants set forth in Schedule B hereto shall be a part of this Indenture for all purposes.

   

  

  (b) Notwithstanding any other provision of this Indenture or any other Basic Document, the perfection representations contained in Schedule B hereto shall be continuing, and remain in
      full force and effect until such time as all obligations under this Indenture have been finally and fully paid and performed.

  

  

  (c) The parties to this Indenture: (i) shall not waive any of the perfection representations contained in Schedule B hereto; (ii) shall provide the Administrator with prompt written
      notice of any breach of the perfection representations contained in Schedule B hereto; and (iii) shall not waive a breach of any of the perfection representations contained in Schedule B hereto.

  

  

  ARTICLE IV.

      

      SATISFACTION AND DISCHARGE

   

  SECTION 4.01.        Satisfaction

      and Discharge of Indenture.  This Indenture shall cease to be of further effect with respect to the Notes except as to (i) rights of registration of transfer and exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights
      of

   

  
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  Noteholders to receive payments of principal thereof and interest thereon [and the rights of each Swap Counterparty to receive amounts due to it
      under the related Swap Agreement] , (iv) Sections 3.03, 3.04, 3.05, 3.08, 3.10, 3.11, 3.12, 3.13, 3.14, 3.15, 3.16 and 3.18, (v) the rights, obligations and immunities of the Indenture Trustee hereunder (including the rights of the Indenture Trustee
      under Section 6.07 and the obligations of the Indenture Trustee under Section 4.02) and (vi) the rights of Noteholders[and each Swap Counterparty] as beneficiaries hereof with respect to the property so deposited with the Indenture Trustee payable to
      all or any of them, and the Indenture Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture with respect to the Notes, when [all amounts due and payable to
      each Swap Counterparty under the related Swap Agreement have been paid and]

   

  (A)          either:

   

  (1)               all
      Notes theretofore authenticated and delivered (other than (i) Notes that have been mutilated, destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.06 and (ii) Notes for the payment of which money has theretofore been
      deposited in trust or segregated and held in trust by the Issuer and thereafter paid to the Persons entitled thereto or discharged from such trust, as provided in Section 3.03) have been delivered to the Indenture Trustee for cancellation; or

   

  (2)              all
      Notes not theretofore delivered to the Indenture Trustee for cancellation:

   

  a.  have become due and payable,

   

  b.  will become due and payable at the Class A-4 Final Scheduled Payment Date within one year, or

   

  c.  are to be called for redemption within one year under arrangements satisfactory to the Indenture
      Trustee for the giving of notice of redemption by the Indenture Trustee in the name, and at the expense, of the Issuer;

   

  and the Issuer, in the case of a, b, or c above, has irrevocably deposited or caused to be irrevocably deposited with the
      Indenture Trustee cash or direct obligations of or obligations guaranteed by the United States of America (that will mature prior to the date such amounts are payable), in trust for such purpose, in an amount sufficient to pay and discharge the
      entire indebtedness on such Notes (including interest and any fees due and payable to the Servicer, the Owner Trustee, the Indenture Trustee or the Asset Representations Reviewer) not theretofore delivered to the Indenture Trustee for cancellation
      when due to the applicable Final Scheduled Payment Date or Redemption Date (if Notes shall have been called for redemption pursuant to Section 10.01), as the case may be;

   

  
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            	(B)	
              the Issuer has paid or caused to be paid all other sums payable hereunder by the Issuer including, but not limited to, fees and expenses due to the Indenture
                  Trustee; and

            

    

  

   

  
    
      	

            	(C)	
              the Issuer has delivered to the Indenture Trustee an Officer’s Certificate, an Opinion of Counsel and (if required by the TIA or the Indenture Trustee) an
                  Independent Certificate from a firm of certified public accountants, each meeting the applicable requirements of Section 11.01(a) and, subject to Section 11.02, each stating that all conditions precedent herein provided for relating to
                  the satisfaction and discharge of this  Indenture have been complied with (and, in the case of an Officer’s Certificate, stating that the Rating Agency Condition has been satisfied with respect to each Rating Agency).

            

    

  

   

  SECTION 4.02.        Application

      of Trust Money.  All moneys deposited with the Indenture Trustee pursuant to Section 4.01 shall be held in trust and applied by it in accordance with the provisions of the Notes and this Indenture to the payment, either directly or through any Paying
      Agent, as the Indenture Trustee may determine, to the Holders of the particular Notes[or any Swap Counterparty pursuant to the related Swap Agreement, as applicable,] for the payment or redemption of which such moneys have been deposited with the
      Indenture Trustee, of all sums due and to become due thereon for principal and interest.

   

  SECTION 4.03.        Repayment

      of Moneys Held by Paying Agent.  In connection with the satisfaction and discharge of this Indenture with respect to the Notes, all moneys then held by any Paying Agent other than the Indenture Trustee under the provisions of this Indenture with
      respect to such Notes shall, upon written demand of the Issuer, be paid to the Indenture Trustee to be held and applied according to Section 3.03; and thereupon, such Paying Agent shall be released from all further liability with respect to such
      moneys.

   

  SECTION 4.04.        Release

      of Collateral.  Subject to Section 11.01 and the terms of the Basic Documents, the Indenture Trustee shall release property from the lien of this Indenture only upon receipt by it of an Issuer Request accompanied by an Officer’s Certificate, an
      Opinion of Counsel and Independent Certificates in accordance with TIA § 314(c) and 314(d)(1) or an Opinion of Counsel in lieu of such Independent Certificates to the effect that the TIA does not require any such Independent Certificates.

   

  ARTICLE V.

      

      REMEDIES

   

  SECTION 5.01.        Events

      of Default.  “Event of Default”, wherever used herein, means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any
      judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

   

  
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  (i)               default in the payment of any interest on any Note when the same becomes due and payable, and such default shall continue for a period of five (5) days; provided that, for the avoidance of doubt, failure to pay interest on the Class B
      Notes due to insufficient Available Amounts shall not be an Event of Default so long as the Class A Notes are then Outstanding;

   

  (ii)              default in the payment of the principal of any Note on the related Final Scheduled Payment Date or Redemption Date;

   

  (iii)             default in the observance or performance of any representation, warranty, covenant or agreement of the Issuer made in this Indenture (other than (x) a covenant or agreement, a default in the observance or performance of which is
      elsewhere in this Section specifically dealt with or (y) a covenant or agreement set forth in Section 12.02) or in any certificate or other writing delivered pursuant hereto or in connection herewith proving to have been incorrect in any material
      respect as of the time when the same shall have been made, and such default shall continue or not be cured, or the circumstance or condition in respect of which such misrepresentation or warranty was incorrect shall not have been eliminated or
      otherwise cured, for a period of thirty (30) days after there shall have been given, by registered or certified mail, to the Issuer by the Indenture Trustee or to the Issuer and the Indenture Trustee by the Holders of at least 25% of the Outstanding
      Amount of the Notes, a written notice specifying such default or incorrect representation or warranty and requiring it to be remedied and stating that such notice is a notice of Default hereunder;

   

  (iv)             the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of the Issuer or any substantial part of the Trust Estate in an involuntary case under any applicable federal or state bankruptcy,
      insolvency or other similar law now or hereafter in effect, or the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer or for any substantial part of the Trust Estate, or the ordering of
      the winding-up or liquidation of the  Issuer’s affairs, and such decree or order shall remain unstayed and  in effect for a period of sixty (60) consecutive days; or

   

  (v)              the commencement by the Issuer of a voluntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by the Issuer  to the entry of an order for relief in an
      involuntary case under any such law, or the consent by the Issuer to the appointment of or taking of possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer or for any substantial part of the
      Trust Estate, or the making by the Issuer of any general assignment for the benefit of creditors, or the failure  by the Issuer generally to pay its debts as such debts become due, or  the taking of any action by the Issuer in furtherance of any of
      the  foregoing.

   

  
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  Notwithstanding the foregoing, a delay in or failure of performance referred to under clause (i) for a period of forty-five (45) days or less,
      under clause (ii) for a period of sixty (60) days or less or under clause (iii) for a period of one hundred twenty (120) days or less, will not constitute an Event of Default if that failure or delay was caused by Force Majeure or other similar
      occurrence.

  

  

  The Issuer shall promptly deliver to the Indenture Trustee written notice in the form of an Officer’s Certificate of any event
      that with the giving of notice and the lapse of time would become an Event of Default, its status and what action the Issuer is taking or proposes to take with respect thereto.

   

  Subject to the provisions herein relating to the duties of the Indenture Trustee, if an Event of Default occurs and is
      continuing, the Indenture Trustee shall be under no obligation to exercise any of the rights or powers under this Indenture at the request or direction of any Noteholders or Verified Note Owners, other than requests, demands or directions required to
      be honored by the Indenture Trustee by Sections 13.01, 13.02 or 13.03(a) of this Indenture, Section 11.01 of the Sale and Servicing Agreement or Section 23 of the Administration Agreement, if the Indenture Trustee reasonably believes that it will not
      be adequately indemnified against the costs, expenses and liabilities that might be incurred by it in complying with such request.  Subject to such provisions for indemnification and certain limitations contained herein, Noteholders holding not less
      than a majority of the Outstanding Amount shall have the right to direct the time, method and place of conducting any proceeding or any remedy available to the Indenture Trustee or exercising any trust power conferred on the Indenture Trustee, and
      Noteholders holding not less than a majority of the Outstanding Amount may, in certain cases, waive any default with respect thereto, except a default in the payment of principal or interest or a default in respect of a covenant or provision of the
      Indenture that cannot be modified without the waiver or consent of all of the Holders of the Outstanding Notes.

   

  SECTION 5.02.        Acceleration

      of Maturity; Rescission and Annulment.

   

  (a) If an Event of Default shall occur and be continuing, then and in every such case the Indenture Trustee may, or the Indenture Trustee as
      directed in writing by the Holders of Notes representing not less than a majority of the Outstanding Amount of the Notes shall, declare all the Notes to be then immediately due and payable, by a notice in writing to the Issuer, and upon any such
      declaration the Outstanding Amount of such Notes, together with accrued and unpaid interest thereon through the date of acceleration, shall become immediately due and payable as provided in the Notes.  Notwithstanding anything to the contrary in this
      paragraph (a), if an Event of Default specified in clauses (iv) or (v) of Section 5.01 shall have occurred and be continuing the Notes shall become immediately due and payable at par, together with accrued interest thereon.

   

    

  (b)              [Reserved.]

    

   

  (c) At any time after such declaration of acceleration of maturity has been made and before a judgment or decree for payment of the money due has
      been obtained by the Indenture Trustee as hereinafter provided in this Article V, the Holders of Notes representing at

   

  
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  least a majority of the Outstanding Amount of the Notes, by written notice to the Issuer and the Indenture Trustee, may rescind and annul such
      declaration and its consequences if:

   

  (i)          the Issuer has paid or deposited with the Indenture Trustee a sum sufficient to pay:

   

  A.  all payments of principal of and interest on the Notes and all other amounts that would then be due hereunder or upon such
      Notes if the Event of Default giving rise to such acceleration had not occurred; and

   

  B.  all sums paid by the Indenture Trustee hereunder and the reasonable compensation, expenses and disbursements of the
      Indenture Trustee and its agents and counsel and the reasonable compensation, expenses and disbursements of the Owner Trustee and its agents and counsel; and

   

  (ii)         all Events of Default, other than the nonpayment of  the principal of the Notes that has become due solely by such acceleration, have been cured or waived as provided in Section 5.12.

   

  No such rescission shall affect any subsequent default or impair any right consequent thereto.

   

  SECTION 5.03.        Collection

      of Indebtedness and Suits for Enforcement by Indenture Trustee.

   

  (a) The Issuer covenants that if (i) a default is made in the payment of any interest on any Note when the same becomes due and payable, and such
      default continues for a period of five (5) days, or (ii) a default is made in the payment of the principal of or any installment of the principal of any Note when the same becomes due and payable, the Issuer will, upon demand of the Indenture
      Trustee, pay to it, for the benefit of the Holders of the Notes, the entire amount then due and payable on such Notes in respect of principal and interest, with interest on the overdue principal and, to the extent payment at such rate of interest
      shall be legally enforceable, on overdue installments of interest at the related Interest Rate and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation,
      expenses and disbursements of the Indenture Trustee and its agents and counsel.

   

  (b) In case the Issuer shall fail forthwith to pay such amounts upon such demand, the Indenture Trustee, in its own name and as trustee of an
      express trust, may institute a Proceeding for the collection of the sums so due and unpaid, and may prosecute such Proceeding to judgment or final decree, and may enforce the same against the Issuer or other obligor on such Notes and collect in the
      manner provided by law out of the Trust Estate or the property of any other obligor on such Notes, wherever situated, the moneys adjudged or decreed to be payable.

   

  (c) If an Event of Default occurs, the Indenture Trustee may, or shall at the direction of the Holders of at least a majority of the Outstanding
      Amount of the Notes, proceed to protect and enforce its rights and the rights of the Noteholders [and each Swap Counterparty],

   

  
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  by such appropriate Proceedings as the Indenture Trustee or the Indenture Trustee at the direction of the Holders of at least a majority of the
      Outstanding Amount of the Notes shall reasonably deem most effective to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or
      to enforce any other proper remedy or legal or equitable right vested in the Indenture Trustee by this Indenture or by law.

   

  (d) In case there shall be pending, relative to the Issuer or any other obligor on the Notes or any Person having or claiming an ownership interest
      in the Trust Estate, Proceedings under Title 11 of the United States Bankruptcy Code or any other applicable federal or state bankruptcy, insolvency or other similar law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, or
      liquidator, sequestrator or similar official shall have been appointed for or taken possession of the Issuer or its property or such other obligor or Person, or in case of any other comparable Proceedings relative to the Issuer or other obligor on
      the Notes, or to the creditors or property of the Issuer or such other obligor, the Indenture Trustee, irrespective of whether the principal of any Notes shall then be due and payable as therein expressed or by declaration or otherwise and
      irrespective of whether the Indenture Trustee shall have made any demand pursuant to the provisions of this Section, shall be entitled and empowered, by intervention in such Proceedings or otherwise:

   

  (i)               to file and prove a claim or claims for the entire amount of principal and interest owing and unpaid in respect of the Notes and to file such other papers or documents as may be necessary or advisable in order to have the claims of the
      Indenture Trustee (including any claim for reasonable compensation to the Indenture Trustee and each predecessor Indenture Trustee, and their respective agents, attorneys and counsel, and for reimbursement of reasonable out-of-pocket expenses and
      liabilities incurred, by the Indenture Trustee and each predecessor Indenture Trustee, except as a result of negligence or bad faith) and of the Noteholders allowed in such Proceedings;

   

  (ii)              unless prohibited by applicable law or regulation, to vote on behalf of the Holders of Notes [and, if applicable, each Swap Counterparty] in any election of a trustee, a standby trustee or a Person performing similar functions in any
      such Proceedings;

   

  (iii)             to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute all amounts received with respect to the claims of the Noteholders [, each Swap Counterparty] and of the Indenture Trustee
      on their behalf; and

   

  (iv)             to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Indenture Trustee [, each Swap Counterparty] or the Holders of Notes allowed in any Proceedings relative to
      the Issuer, its creditors or its property;

   

  and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding is hereby authorized by each of such Noteholders
      [and each of such Swap Counterparties] to make

   

  
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  payments to the Indenture Trustee and, in the event that the Indenture Trustee shall consent to the making of payments directly to such
      Noteholders [and each such Swap Counterparty], to pay to the Indenture Trustee such amounts as shall be sufficient to cover reasonable compensation to the Indenture Trustee, each predecessor Indenture Trustee and their respective agents, attorneys
      and counsel, and all other expenses and liabilities incurred by the Indenture Trustee and each predecessor Indenture Trustee except as a result of negligence or bad faith, and any other amounts due the Indenture Trustee under Section 6.07.

   

  (e) Nothing herein contained shall be deemed to authorize the Indenture Trustee to authorize or consent to or vote for or accept or adopt on behalf
      of any Noteholder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof or to authorize the Indenture Trustee to vote in respect of the claim of any Noteholder in any such
      proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar Person.

   

  (f) All rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the Indenture Trustee without
      the possession of any of the Notes or the production thereof in any Proceedings relative thereto, and any such Proceedings instituted by the Indenture Trustee shall be brought in its own name as trustee of an express trust, and any recovery of
      judgment, subject to the payment of the expenses, disbursements and compensation of the Indenture Trustee, each predecessor Indenture Trustee and their respective agents and attorneys, shall be for the ratable benefit of the Holders of the Notes [and
      each Swap Counterparty].

   

  (g) In any Proceedings brought by the Indenture Trustee (and also any Proceedings involving the interpretation of any provision of this Indenture
      to which the Indenture Trustee shall be a party), the Indenture Trustee shall be held to represent all the Holders of the Notes [and each Swap Counterparty], and it shall not be necessary to make any Noteholder [nor any Swap Counterparty] a party to
      any such Proceedings.

   

  SECTION 5.04.        Remedies; Priorities.

   

  (a) If an Event of Default shall have occurred and be continuing, the Indenture Trustee may do one or more of the following (subject to Section
      5.05):

   

  (i)                institute Proceedings in its own name and as trustee of an express trust for the collection of all amounts then payable on the Notes or under this Indenture with respect thereto, whether by declaration or otherwise, enforce any
      judgment obtained and collect from the Issuer and any other obligor on such Notes moneys adjudged due;

   

  (ii)               institute Proceedings from time to time for the complete or partial foreclosure of this Indenture with respect to the Trust Estate;

   

  (iii)              exercise any remedies of a secured party under the UCC and take any other appropriate action to protect and enforce the rights and remedies of the Indenture Trustee [, each Swap Counterparty] and the Holders of the Notes; and

   

  
    38

    
      

  

  

  

  (iv)             after an acceleration of the maturity of the Notes pursuant to Section 5.02, sell the Trust Estate or any portion thereof or rights or interest therein, at one or more public or private sales called and conducted in any manner
      permitted by law;

   

  provided that the Indenture Trustee may not sell or otherwise liquidate the Trust Estate following an Event of Default pursuant to clause (iv)
      above unless:

   

  
    
      	

            	(A)	
              with respect to any Event of Default is of the type described in Section 5.01(i) or (ii);

            

    

  

   

  
    
      	

            	(i)	
              the proceeds of such sale or liquidation distributable to the Class B Noteholders plus the proceeds of the sale or liquidation of the Trust Estate distributable
                  to the Class B Noteholders are sufficient to pay to the Class B Noteholders the Outstanding Amount of the Class B Notes plus accrued and unpaid interest thereon; or

            

    

  

   

  
    
      	

            	(ii)	
              if the proceeds of such sale or liquidation distributable to the Class B Noteholders plus the proceeds of the sale or liquidation of the Trust Estate
                  distributable to the Class B Noteholders would not be sufficient to pay to the Class B Noteholders the Outstanding Amount plus accrued and unpaid interest thereon, the Class B Noteholders of at least a majority of the Outstanding Amount
                  of the Class B Notes consent thereto; or

            

    

  

   

  
    
      	

            	(B)	
              with respect to an Event of Default described in Section 5.01(iii):

            

    

  

   

  (i)           the
      Noteholders of all Outstanding Notes consent thereto; or

   

  (ii)          the
      proceeds of such sale or liquidation are sufficient to pay in full the principal of and accrued interest on the Outstanding Notes at the date of sale; or

   

  
    
      	

            	(C)	
              with respect to any Event of Default described in Section 5.01(iv) and (v):

            

    

  

   

  (i)           the Noteholders of all
      Outstanding Notes consent thereto; or

   

  (ii)         the proceeds of such sale or
      liquidation are sufficient to pay in full the principal of and the accrued interest on the Outstanding Notes; or

   

  (iii)        the
      Indenture Trustee:

   

  (x)  determines (but shall have no obligation to make such determination) that the Trust Estate will not
      continue to provide sufficient funds for the payment of principal of and interest on the Notes as they would have become due if the Notes had not been declared due  and payable; and

  

  

  
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  (y)  the Indenture Trustee obtains the consent of Noteholders of Notes evidencing not less than 66 2/3% of
      the Outstanding Amount of the Notes.

  

  

  In determining such sufficiency or insufficiency with respect to clause (A)(i) or (A)(ii), (B)(ii) and (C)(ii) or (C)(iii)(x), Indenture Trustee
      may, but need not, obtain at the Issuer’s expense, and rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the sufficiency of the Trust Estate for
      such purpose.

   

  (b) (i) Notwithstanding the provisions of Section 8.02, following the occurrence and during the continuation of an Event of Default specified in Section 5.01 that has resulted in an acceleration of
      the Notes, if Indenture Trustee collects any money or property, it shall pay out such money or property (and other amounts including amounts held on deposit in the Reserve Account) held as Collateral for the benefit of the Noteholders, in the
      following order: [EACH INDENTURE WILL SPECIFY THAT TRUST’S PARTICULAR EVENT OF DEFAULT CASH FLOW PRIORITIES]

   

  FIRST: to the Indenture Trustee, the Owner Trustee and the Asset Representations Reviewer, pro rata, based on amounts due to each such party, for payment of any Trustee and Reviewer Fees and other amounts required to be paid to such party pursuant to the terms of
      the Indenture, the Trust Agreement or the Asset Representations Review Agreement, respectively (including, without limitation, expenses and indemnification amounts);

   

  SECOND: to the Servicer for due and unpaid Servicing Fees and unreimbursed Advances;

   

  THIRD: to the Class A Noteholders for amounts due and unpaid on the Class A Notes in respect of interest, ratably, without
      preference or priority of any kind, according to the amounts due and payable on the Notes in respect of interest;

   

  FOURTH: to Holders of the Class A-1 Notes for amounts due  and unpaid on the Class A-1 Notes in respect of principal, ratably,
      without preference or priority of any kind, according to the amounts due and payable on the Class A-1 Notes in respect of principal, until the Outstanding Amount of the Class A-1 Notes is reduced to zero;

   

  FIFTH: to Holders of the Class A-2a Notes, Class A-2b Notes, Class A-3 Notes and Class A-4 Notes for amounts due and unpaid on
      the Class A-2a Notes, Class A-2b Notes, Class A-3 Notes and Class A-4 Notes in respect of principal, ratably, without preference or priority of any kind, according to the amounts due and payable on the Class A-2a Notes, Class A-2b Notes, Class A-3
      Notes and Class A-4 Notes in respect of principal, until the Outstanding Amounts of the  Class A-2a Notes, Class A-2b Notes, Class A-3 Notes and Class A-4 Notes are reduced to zero;

   

  
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  SIXTH: to the Class B Noteholders for amounts due and unpaid on the Class B Notes in respect of interest, ratably, without
      preference or priority of any kind, according to the amounts due and payable on the Notes in respect of interest;

   

  SEVENTH: to Holders of the Class B Notes for amounts due and unpaid on the Class B  Notes in respect of principal, ratably,
      without preference or priority of any kind, according to the amounts due and payable on the Class B Notes in respect of principal, until the Outstanding Amount of the Class B Notes is reduce to zero; and

   

  EIGHTH: to the Certificate Distribution Account, for distribution to the Certificateholders.

   

  The Indenture Trustee may fix a Record Date and Payment Date for any payment to Noteholders pursuant to this Section.  At least fifteen (15) days
      before such Record Date, the Issuer shall mail to each Noteholder and the Indenture Trustee a notice that states the Record Date, the Payment Date and the amount to be paid.

   

  (ii) Except as provided in Section 5.04(b)(i), the Indenture Trustee shall make all payments and distributions of the Trust Estate in accordance with Section 8.02.

   

  SECTION 5.05.        Optional

      Preservation of the Receivables.  If the Notes have been declared to be due and payable under Section 5.02 following an Event of Default, and such declaration and its consequences have not been rescinded and annulled, the Indenture Trustee may, but
      need not, elect to maintain possession of the Trust Estate and continue to apply collections as provided herein.  It is the desire of the parties hereto and the Noteholders that there be at all times sufficient funds for the payment of principal of
      and interest on the Notes, and the Indenture Trustee shall take such desire into account when determining whether or not to maintain possession of the Trust Estate.  In determining whether or not to maintain possession of the Trust Estate, the
      Indenture Trustee may, at the expense of the Issuer and paid in the priority set forth in Section 5.06(b) of the Sale and Servicing Agreement, but need not, obtain and conclusively rely upon an opinion of an Independent investment banking or
      accounting firm of national reputation as to the feasibility of such proposed action and as to the sufficiency of the Trust Estate for such purpose.

   

  SECTION 5.06.        Limitation

      of Suits.  No Holder of any Note shall have any right to institute any Proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

   

  (i) such Holder has previously given written notice to the Indenture Trustee of a continuing Event of Default;

   

  (ii) the Holders of not less than 25% of the Outstanding Amount of the Notes have made written request to the Indenture Trustee to institute
      such Proceeding in respect of such Event of Default in its own name as Indenture Trustee hereunder;

   

  
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  (iii)             such Holder or Holders have offered to the Indenture Trustee indemnity reasonably satisfactory to it against the costs, expenses and liabilities that may be incurred in complying with such request;

   

  (iv)             the Indenture Trustee for sixty (60) days after its receipt of such notice, request and offer of indemnity has failed to institute such Proceedings; and

   

  (v)              no direction inconsistent with such written request has been given to the Indenture Trustee during such sixty (60) day period by the Holders of a majority of the Outstanding Amount of the Notes.

   

  It is understood and intended that no one or more Holders of Notes shall have any right in any manner whatsoever by virtue of, or by availing of,
      any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Notes or to obtain or to seek to obtain priority or preference over any other Holders or to enforce any right under this Indenture, except in the
      manner herein provided.

   

  In the event the Indenture Trustee shall receive conflicting or inconsistent requests and indemnity from two or more groups of
      Holders of Notes pursuant to this Section, each representing less than a majority of the Outstanding Amount of the Notes, the Indenture Trustee shall act at the direction of the group representing the greater percentage of the Outstanding Amount of
      Notes and if there is no such group then in its sole discretion may determine what action, if any, shall be taken, notwithstanding any other provisions of this Indenture.

   

  SECTION 5.07.        Unconditional

      Rights of Noteholders To Receive Principal and Interest.  Notwithstanding any other provisions in this Indenture, the Holder of any Note shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest,
      if any, on such Note on or after the respective due dates thereof expressed in such Note or in this Indenture (or, in the case of redemption, on or after the Redemption Date) and to institute suit for the enforcement of any such payment, and such
      right shall not be impaired without the consent of such Holder.

   

  SECTION 5.08.        Restoration

      of Rights and Remedies.  If the Indenture Trustee or any Noteholder has instituted any Proceeding to enforce any right or remedy under this Indenture and such Proceeding has been discontinued or abandoned for any reason or has been determined
      adversely to the Indenture Trustee or to such Noteholder, then and in every such case the Issuer, the Indenture Trustee and the Noteholders shall, subject to any determination in such Proceeding, be restored severally and respectively to their former
      positions hereunder, and thereafter all rights and remedies of the Indenture Trustee and the Noteholders shall continue as though no such Proceeding had been instituted.

   

  SECTION 5.09.        Rights

      and Remedies Cumulative.  No right or remedy herein conferred upon or reserved to the Indenture Trustee [, each Swap Counterparty] or to the Noteholders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to
      the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The

   

  
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  assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
      appropriate right or remedy.

   

  SECTION 5.10.        Delay
      or Omission Not a Waiver.  No delay or omission of the Indenture Trustee, [any Swap Counterparty] or any Holder of any Note to exercise any right or remedy accruing upon any Default or Event of Default shall impair any such right or remedy or
      constitute a waiver of any such Default or Event of Default or an acquiescence therein.  Every right and remedy given by this Article V or by operation of law to the Indenture Trustee [, each Swap Counterparty] or to the Noteholders may be exercised
      from time to time, and as often as may be deemed expedient, by the Indenture Trustee [, each Swap Counterparty] or the Noteholders, as the case may be.

   

  SECTION 5.11.        Control

      by Noteholders.  Subject to the provisions of Sections 5.06, 6.02(f) and 6.02(g), Noteholders holding not less than a majority of the Outstanding Amount of the Notes shall have the right to direct the time, method and place of conducting any
      Proceeding for any remedy available to the Indenture Trustee with respect to the Notes or exercising any trust or power conferred on the Indenture Trustee; provided that:

   

  (i)               such direction shall not be in conflict with any rule of law or with this Indenture;

   

  (ii)              subject to the express terms of Section 5.04, any direction to the Indenture Trustee to sell or liquidate the Trust Estate shall be by Holders of Notes representing not less than 100% of the Outstanding Amount of the Notes;

   

  (iii)             if the conditions set forth in Section 5.05 have been satisfied and the Indenture Trustee elects to retain the Trust Estate pursuant to such Section, then any written direction to the Indenture Trustee by Holders of Notes representing
      less than 100% of the Outstanding Amount of the Notes to sell or liquidate the Trust Estate shall be of no force and effect; and

   

  (iv)             the Indenture Trustee may take any other action deemed proper by the Indenture Trustee that is not inconsistent with such direction.

   

  Notwithstanding the rights of Noteholders set forth in this Section, subject to Section 6.01, the Indenture Trustee need not
      take any action that it determines might involve it in liability or might materially adversely affect the rights of any Noteholders not consenting to such action, or is contrary to law.

   

  SECTION 5.12.        Waiver

      of Past Defaults.  Prior to the declaration of the acceleration of the maturity of the Notes as provided in Section 5.02, the Holders of Notes of not less than a majority of the Outstanding Amount of the Notes may waive any past Default or Event of
      Default and its consequences except a Default (a) in the deposit of collections or other required amounts, or any required payment from amounts held in any trust account in respect of amounts due on the Notes, (b) in payment of principal of, or
      interest or amounts due on any of the Notes or (c) in respect of a covenant or provision hereof that cannot be modified or amended without the consent of the Holder of each Note.  In the case of any such waiver, the Issuer, the Indenture Trustee and
      the Holders of the Notes shall be restored to their former positions and

   

  
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  rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereto.

   

  Upon any such waiver, such Default shall cease to exist and be deemed to have been cured and not to have occurred, and any
      Event of Default arising therefrom shall be deemed to have been cured and not to have occurred, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent
      thereto.

   

  SECTION 5.13.        Undertaking

      for Costs.  All parties to this Indenture agree, and each Holder of a Note by such Holder’s acceptance of a Note shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy
      under this Indenture, or in any suit against the Indenture Trustee for any action taken, suffered or omitted by it as Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such
      court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the
      provisions of this Section shall not apply to (a) any suit instituted by the Indenture Trustee, (b) any suit instituted by any Noteholder, or group of Noteholders, in each case holding in the aggregate more than 10% of the Outstanding Amount of the
      Notes or (c) any suit instituted by any Noteholder for the enforcement of the payment of principal of or interest on any Note on or after the respective due dates expressed in such Note and in this Indenture (or, in the case of redemption, on or
      after the Redemption Date).

   

  SECTION 5.14.        Waiver

      of Stay or Extension Laws.  The Issuer covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever
      enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and
      covenants that it will not hinder, delay or impede the execution of any power herein granted to the Indenture Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.

   

  SECTION 5.15.        Action

      on Notes.  The Indenture Trustee’s right to seek and recover judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this Indenture.  Neither the lien
      of this Indenture nor any rights or remedies of the Indenture Trustee or the Noteholders shall be impaired by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any execution under such judgment upon any
      portion of the Trust Estate or upon any of the assets of the Issuer.  Any money or property collected by the Indenture Trustee as a recovery of any judgment on the Notes or under this Indenture shall be applied in accordance with Section 5.04(b) as
      provided therein, and otherwise in accordance with Section 8.02.

   

  SECTION 5.16.        Performance

      and Enforcement of Certain Obligations.

   

  (a) Promptly following a request from the Indenture Trustee to do so and at the Administrator’s expense, the Issuer shall take all such lawful
      action as the Indenture Trustee

   

  
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  may request to compel or secure the performance and observance by a Seller, the Servicer or the Asset Representations Reviewer, as applicable, of
      each of their obligations under or in connection with the Sale and Servicing Agreement, the Receivables Purchase Agreements and the Asset Representations Review Agreement, as applicable, and to exercise any and all rights, remedies, powers and
      privileges lawfully available to the Issuer under or in connection with the Sale and Servicing Agreement, the Receivables Purchase Agreements and the Asset Representations Review Agreement to the extent and in the manner directed by the Indenture
      Trustee, including the transmission of notices of default on the part of any of the Sellers, the Servicer or the Asset Representations Reviewer thereunder and the institution of legal or administrative actions or proceedings to compel or secure
      performance by a Seller, the Servicer or the Asset Representations Reviewer, as applicable, of each of their obligations under the Sale and Servicing Agreement, the Receivables Purchase Agreements and the Asset Representations Review Agreement;
      provided, however, nothing herein shall in any way impose on the Indenture Trustee the duty to monitor the performance of the Sellers, the Servicer or the Asset Representations Reviewer of any of their liabilities, duties or obligations under any
      Basic Document.

   

  (b) If an Event of Default has occurred, the Indenture Trustee may, and at the direction (which direction shall be in writing) of the Holders of
      not less than a majority of the Outstanding Amount of the Notes shall, exercise all rights, remedies, powers, privileges and claims of the Issuer against the Sellers, the Servicer and the Asset Representations Reviewer under or in connection with the
      Sale and Servicing Agreement, the Receivables Purchase Agreements and the Asset Representations Reviewer, including the right or power to take any action to compel or secure performance or observance by a Seller, the Servicer or the Asset
      Representations Reviewer, as the case may be, of each of their obligations thereunder and to give any consent, request, notice, direction, approval, extension or waiver under the Sale and Servicing Agreement, the Receivables Purchase Agreements and
      the Asset Representations Review Agreement, as the case may be, and any right of the Issuer to take such action shall be suspended.

   

  ARTICLE VI.

      

      THE INDENTURE TRUSTEE

   

  SECTION 6.01.        Duties

      of Indenture Trustee.

   

  (a) If a Responsible Officer of the Indenture Trustee has actual knowledge that an Event of Default has occurred and is continuing, the Indenture
      Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

   

  
    
      	

            	(b)	
              Except during the continuance of an Event of Default:

            

    

  

   

  (i) the Indenture Trustee undertakes to perform such  duties and only such duties as are specifically set forth in this Indenture and no implied
      covenants or obligations shall be read into this Indenture against the Indenture Trustee; and

   

  
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  (ii) in the absence of bad faith or negligence on its part, the Indenture Trustee may conclusively rely, as to the truth of  the statements
      and the correctness of the opinions expressed therein, upon the face value of the certificates, reports, resolutions, documents, orders, opinions or other instruments furnished to the Indenture Trustee and conforming to the requirements of this
      Indenture; provided, however, that the Indenture Trustee shall not be responsible for the accuracy or content of any such resolution, certificate, statement, opinion, report, document, order or other instrument; provided, further, however, the
      Indenture Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture.  If any such instrument is found not to conform in any material respect to the  requirements of this
      Indenture, the Indenture Trustee shall notify the Noteholders of such instrument in the event that the Indenture Trustee, after so requesting, does not receive a satisfactorily corrected instrument.

   

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

   

  (i)               this paragraph does not limit the effect of paragraph (b) of this Section;

   

  (ii)              the Indenture Trustee shall not be liable for any error of judgment made in good faith by the Indenture Trustee unless it is proved that the Indenture Trustee was negligent in ascertaining the pertinent facts; and

   

  (iii)             the Indenture Trustee shall not be liable with  respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to the terms of this Indenture or any other Basic Documents.

   

  (d) Notwithstanding anything to the contrary contained herein, in no event shall the Indenture Trustee be liable for special, punitive, indirect or
      consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Indenture Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

   

  (e) The Indenture Trustee shall not be liable for indebtedness evidenced by or arising under any of the Basic Documents, including principal of or
      interest on the Notes, or interest on any money received by it except as the Indenture Trustee may agree in writing with the Issuer.

   

  
    
      	

            	(f)	
              [Reserved.]

            

    

  

   

  (g) No provision of this Indenture shall require the Indenture Trustee to advance, expend or risk its own funds or otherwise incur financial
      liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds to believe that repayment of such funds or adequate indemnity against such risk or liability is not
      reasonably assured to it.

   

  
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  (h) Every provision of this Indenture that in any way relates to the conduct or affecting the liability of or affording protection to the Indenture
      Trustee shall be subject to the provisions of this Section and to the provisions of the TIA.

   

  (i) Except as otherwise specifically set forth in the Sale and Servicing Agreement, in no event shall the Indenture Trustee be required to perform,
      or be responsible for the manner of performance of, any of the obligations of the Servicer or any other party under the Sale and Servicing Agreement.

   

  (j) The Indenture Trustee shall have no duty (A) to see to any recording, filing, or depositing of this Indenture or any agreement referred to
      herein or any financing statement or continuation statement evidencing a security interest, or to see to the maintenance of any such recording or filing or depositing or to any rerecording, refiling or redepositing of any thereof, (B) to see to any
      insurance, or (C) to see to the payment or discharge of any tax, assessment, or other governmental charge or any lien or encumbrance of any kind owing with respect to, assessed or levied against, any part of the Trust Estate.

   

  (k) The Indenture Trustee shall determine LIBOR as of each LIBOR Determination Date for so long as the Class A-2b Notes are Outstanding.  All
      determinations of LIBOR by the Indenture Trustee, in absence of manifest error, shall be conclusive for all purposes and binding on the Noteholders.

   

  (l) The Indenture Trustee shall not be deemed to have knowledge of any Event of Default, Default, Servicer Termination Event, breach of
      representation or warranty or other event unless a Responsible Officer has actual knowledge thereof or has received written notice thereof in accordance with the provisions of this Indenture or the other Basic Documents.  For the avoidance of doubt,
      receipt by the Indenture Trustee of a Review Report under the Asset Representations Review Agreement shall not constitute knowledge of any such breach.

   

  SECTION 6.02.        Rights

      of Indenture Trustee.

   

  (a) The Indenture Trustee may conclusively rely and shall be protected in acting upon or refraining from acting upon any resolution, certificate,
      statement, instrument, opinion, report, notice, request, consent, order, note, direction, demand, election or other paper or document reasonably believed by it to be genuine and to have been signed or presented by the proper person.  The Indenture
      Trustee need not investigate any fact or matter stated in the document.

   

  (b) Before the Indenture Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel from the
      appropriate party.  The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on an Officer’s Certificate or Opinion of Counsel from the appropriate party.  The right of the Indenture Trustee to
      perform any discretionary act enumerated in this Indenture or in any Basic Document shall not be construed as a duty of the Indenture Trustee and the Indenture Trustee shall not be answerable for other than its negligence, bad faith or willful
      misconduct in the performance of such discretionary act.

   

  
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  (c) The Indenture Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents
      or attorneys or a custodian or nominee and the Indenture Trustee shall not be responsible for any misconduct or negligence on the part of, or for the supervision of, the Administrator, any co-trustee or separate trustee appointed in accordance with
      the provisions of Section 6.10 or any other such agent, attorney, custodian or nominee appointed with due care by it hereunder.

   

  (d) The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within
      its rights or powers; provided, that the Indenture Trustee’s conduct does not constitute willful misconduct, negligence or bad faith.

   

  (e) The Indenture Trustee may consult with counsel, at the Issuer’s expense and paid in the priority set forth in Section 5.06(b) of the Sale and
      Servicing Agreement, and the written advice or opinion of counsel with respect to legal matters relating to this Indenture and the Notes shall be full and complete authorization and protection from liability in respect to any action taken, omitted or
      suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel.

   

  (f) The Indenture Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture or to institute,
      conduct or defend any litigation under this Indenture or in relation to this Indenture or to honor the requests, demands or direction of any Noteholders or Verified Note Owners pursuant to this Indenture, other than requests, demands or directions
      explicitly required to be honored by the Indenture Trustee pursuant to Sections 13.01, 13.02, 13.03(a) or 13.04 of this Indenture, Section 11.01 of the Sale and Servicing Agreement or Section 23 of the Administration Agreement, unless such
      Noteholders or Verified Note Owners, as applicable, shall have offered to the Indenture Trustee security or indemnity satisfactory to it against the reasonable costs, expenses, disbursements, advances and liabilities that might be incurred by it, its
      agents and its counsel in compliance with such request, demand or direction.

   

  (g) The Indenture Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
      instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document, unless requested in writing to do so by Noteholders evidencing not less than 50% of the Outstanding Amount; provided, however, that if the
      payment within a reasonable time to the Indenture Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Indenture Trustee, not reasonably assured to the Indenture
      Trustee by the security afforded to it by the terms of this Indenture, the Indenture Trustee may require indemnity satisfactory to it against such cost, expense or liability as a condition to so proceeding.  The reasonable expense of each such
      investigation shall be paid by the Person making such request, or, if paid by the Indenture Trustee, shall be reimbursed by the Person making such request upon demand.

   

  (h) Any request or direction of the Issuer mentioned herein shall be sufficiently evidenced by an Issuer Request.

   

  
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  (i) In the event that the Indenture Trustee is also acting as Paying Agent, Note Registrar, Certificate Registrar, authenticating agent (under the
      Trust Agreement), Paying Agent (under the Trust Agreement) or collateral agent, the rights and protections afforded to the Indenture Trustee pursuant to this Article VI shall be afforded to it in such capacities.

   

  (j) The right of the Indenture Trustee to perform any discretionary act enumerated in this Indenture shall not be construed as a duty, and the
      Indenture Trustee shall not be answerable for other than its negligence or willful misconduct in the performance of such act.

   

  (k) The Indenture Trustee shall not be required to give any bond or surety in respect of the powers granted hereunder.

   

  (l)   The Indenture Trustee will not be responsible or liable for a failure or delay in the performance of its obligations under this Indenture
      from or caused by, directly or indirectly, forces beyond its control, including strikes, work stoppages, acts of war, terrorism, civil or military disturbances, nuclear catastrophes, fires, floods, earthquakes, storms, hurricanes or other natural
      catastrophes and interruptions, unforeseeable loss or failures of mechanical, electronic or communication systems.  The Indenture Trustee will use reasonable efforts consistent with accepted practices in the banking industry to resume performance as
      soon as practicable under the circumstances.

   

  (m)              For the avoidance of
      doubt, the Indenture Trustee shall not have any duty or obligation to monitor or enforce the Sponsor’s compliance with any applicable risk retention rules or regulations. The Indenture Trustee shall not be charged with knowledge of any such rules or
      regulations, and it shall not be liable to any Noteholder or any other Person for any violation of any such rules or regulations.

   

  (n) In no event shall the Indenture Trustee be liable for failure to perform its duties under this Indenture if (i) such failure is a direct or proximate result of another party’s
      failure to perform its obligations under this Indenture, (ii) such other party’s failure was not a direct or proximate result of the Indenture Trustee’s willful misconduct, bad faith or negligence and (iii) such failure by the Indenture Trustee does
      not constitute willful misconduct, negligence or bad faith.

   

  SECTION 6.03.        Individual

      Rights of Indenture Trustee.  The Indenture Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer or its Affiliates with the same rights it would have if it were not Indenture
      Trustee.  Any Paying Agent, Note Registrar, co-registrar or co-paying agent may do the same with like rights.  However, the Indenture Trustee must comply with Sections 6.11 and 6.13.

   

  SECTION 6.04.        Indenture

      Trustee’s Disclaimer.  The Indenture Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture, the Trust Estate or the Notes, it shall not be accountable for the Issuer’s use of the proceeds
      from the Notes, and it shall not be responsible for any statement of the Issuer in the Indenture, any Basic Document, any document issued in connection with the sale of the Notes or the Notes other than the Indenture Trustee’s certificate of
      authentication.

   

  
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  SECTION 6.05.        Notice

      of Defaults.  If a Default occurs and is continuing and a Responsible Officer of the Indenture Trustee has actual knowledge thereof, the Indenture Trustee shall mail to each Noteholder [and each Swap Counterparty] notice of the Default within thirty
      (30) days after it occurs.  Except in the case of a Default in payment of principal of or interest on any Note (including payments pursuant to the mandatory redemption provisions of such Note), the Indenture Trustee may withhold the notice to
      Noteholders if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the best interests of Noteholders [and each Swap Counterparty].

   

  SECTION 6.06.        Reports

      by Indenture Trustee to Holders.  The Indenture Trustee, upon written request, shall deliver to each Noteholder such information as may be required to enable such holder to prepare its federal and state income tax returns.

   

  SECTION 6.07.        Compensation

      and Indemnity.  The Indenture Trustee shall be entitled to the Indenture Trustee Fee as compensation for its services hereunder.  The Issuer shall pay the Indenture Trustee Fee and reimburse the Indenture Trustee for all reasonable out-of-pocket
      expenses incurred or made by it, including costs of collection, in addition to the compensation for its services.  Such expenses shall include the reasonable out-of-pocket compensation and expenses, (including extraordinary expenses) disbursements
      and advances of the Indenture Trustee’s agents, counsel, accountants and experts.  The Issuer shall indemnify the Indenture Trustee and any of its directors, officers, employees and agents (each, an “Indemnified Party”) for, and hold it harmless
      against, any and all loss, liability or expense (including extraordinary expenses) (including reasonable attorneys’ fees and expenses, including those fees and expenses incurred by an Indemnified Party in defending against any claim relating to the
      actions or inactions of the Indemnified Party or in connection with the enforcement of any indemnification or other obligation of the Issuer, as well as fees and expenses of experts and agents and extraordinary out-of-pocket expenses) incurred by it
      in connection with the administration of this trust and the performance of the Indenture Trustee’s duties hereunder or under the Sale and Servicing Agreement or under any other Basic Document.  The fees, expenses and indemnities described in this
      Section 6.07 shall be paid and/or reimbursed by the Issuer pursuant to the terms of Section 5.06(b) of the Sale and Servicing Agreement and Section 5.04(b) of this Indenture, as applicable.  The Indenture Trustee shall notify the Issuer and the
      Administrator promptly of any claim for which it may seek indemnity.  Failure by the Indenture Trustee to so notify the Issuer and the Administrator shall not relieve the Issuer of its obligations hereunder if no prejudice to the Issuer shall have
      resulted from such failure.  The Issuer shall, or shall cause the Administrator to, defend any such claim, and the Indenture Trustee may have separate counsel and the Issuer shall pay the fees and expenses of such counsel.  The Issuer need not
      reimburse any expense or indemnify against any loss, liability or expense incurred by the Indenture Trustee through the Indenture Trustee’s own willful misconduct, negligence or bad faith, except that the Indenture Trustee shall not be liable (i) for
      any error of judgment made by it in good faith unless it is proved that the Indenture Trustee was negligent in ascertaining the pertinent facts, (ii) with respect to any action it takes or omits to take in good faith in accordance with a direction
      received by it from the Noteholders in accordance with the terms of this Indenture and (iii) for interest on any money received by it except as the Indenture Trustee and the Issuer may agree in writing.  The Indenture Trustee shall not be deemed to
      have knowledge of any event unless a Responsible Officer of the Indenture Trustee has actual knowledge thereof or has received written notice thereof.

   

  
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  The Issuer’s payment obligations and indemnities to the Indenture Trustee pursuant to this Section shall survive the discharge
      of this Indenture or the earlier resignation or removal of the Indenture Trustee.  When the Indenture Trustee incurs expenses after the occurrence of a Default specified in Section 5.01(iv) or (v) with respect to the Issuer, the expenses are intended
      to constitute expenses of administration under Title 11 of the United States Bankruptcy Code or any other applicable federal or State bankruptcy, insolvency or similar law.

   

  SECTION 6.08.        Replacement

      of Indenture Trustee.  No resignation or removal of the Indenture Trustee and no appointment of a successor Indenture Trustee shall become effective until the acceptance of appointment by the successor Indenture Trustee pursuant to this Section.  The
      Indenture Trustee may resign with thirty (30) days’ prior written notice to the Issuer, the Servicer and the Administrator (and the Administrator shall make such notice available to each Rating Agency).  The Holders of a majority of the Outstanding
      Amount of the Notes may remove the Indenture Trustee, with thirty (30) days’ prior written notice, if:

   

  (i)                the Indenture Trustee fails to comply with Section 6.11;

   

  (ii)               the Indenture Trustee is adjudged a bankrupt or insolvent;

   

  (iii)              a receiver or other public officer takes charge of the Indenture Trustee or its property; or

   

  (iv)              the Indenture Trustee otherwise becomes incapable of acting.

   

  If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of Indenture Trustee for any reason (the Indenture Trustee in
      such event being referred to herein as the retiring Indenture Trustee), the Issuer shall promptly appoint a successor Indenture Trustee.

   

  A successor Indenture Trustee shall deliver a written acceptance of its appointment to the retiring Indenture Trustee and to
      the Issuer.  Thereupon the resignation or removal of the retiring Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the rights, powers and duties of the Indenture Trustee under this Indenture.  The retiring
      Indenture Trustee shall be paid all amounts owed to it upon its resignation or removal.

   

  The successor Indenture Trustee shall mail a notice of its succession to Noteholders.  The retiring Indenture Trustee shall
      promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee.  The retiring Indenture Trustee shall not be liable for the acts or omissions of any successor Indenture Trustee.

   

  If a successor Indenture Trustee does not take office within sixty (60) days after the retiring Indenture Trustee resigns or is
      removed, the retiring Indenture Trustee, the Issuer or the Holders of a majority of the  Outstanding Amount of the Notes may petition any court of competent jurisdiction for the appointment of a successor Indenture Trustee.

   

  If the Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition any court of competent jurisdiction for
      the removal of the Indenture Trustee and the appointment of a successor Indenture Trustee.

   

  
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  Notwithstanding the replacement of the Indenture Trustee pursuant to this Section, the Issuer’s and the Administrator’s
      obligations under Section 6.07 shall continue for the benefit of the retiring Indenture Trustee. Any costs associated with the resignation or removal of the Indenture Trustee shall be paid by the Administrator.

   

  SECTION 6.09.        Successor

      Indenture Trustee by Merger.  If the Indenture Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another corporation or banking association, the resulting, surviving
      or transferee corporation without any further act shall be the successor Indenture Trustee; provided, that such corporation or banking association shall be qualified and eligible under Section 6.11.  The Indenture Trustee shall provide the
      Administrator notice of any such transaction.

   

  If at the time such successor or successors by merger, conversion or consolidation to the Indenture Trustee shall succeed to
      the trusts created by this Indenture any of the Notes shall have been authenticated but not delivered, any such successor to the Indenture Trustee may adopt the certificate of authentication of any predecessor trustee and deliver such Notes so
      authenticated; and if at that time any of the Notes shall not have been authenticated, any successor to the Indenture Trustee may authenticate such Notes either in the name of any predecessor hereunder or in the name of the successor to the Indenture
      Trustee; and in all such cases such certificates authenticated by the successor Indenture Trustee shall have the full force and effect for purposes of this Indenture and the Notes as any certificate of authentication executed and delivered by the
      predecessor Indenture Trustee.

   

  SECTION 6.10.        Appointment

      of Co-Indenture Trustee or Separate Indenture Trustee.

   

  (a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of meeting any legal requirement of any jurisdiction in
      which any part of the Trust Estate may at the time be located, the Indenture Trustee shall have the power and may execute and deliver all instruments to appoint one or more Persons to act as a co-trustee or co-trustees, or separate trustee or
      separate trustees, of all or any part of the Trust, and to vest in such Person or Persons, in such capacity and for the benefit of the Noteholders, such title to the Trust Estate, or any part thereof, and, subject to the other provisions of this
      Section, such powers, duties, obligations, rights and trusts as the Indenture Trustee may consider necessary or desirable.  No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under
      Section 6.11 and no notice to Noteholders of the appointment of any co-trustee or separate trustee shall be required under Section 6.08.

   

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

   

  (i) all rights, powers, duties and obligations conferred or imposed upon the Indenture Trustee shall be conferred or imposed upon and exercised or
      performed by the Indenture Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Indenture Trustee joining in such act), except to the
      extent

   

  
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  that under any law of any jurisdiction in which any particular act or acts are to be performed the Indenture Trustee shall be
      incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the Trust Estate or any portion thereof in any  such jurisdiction) shall be exercised and performed
      singly by such separate trustee or co-trustee, but solely at the direction of the Indenture Trustee;

   

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

   

  (iii)                the Indenture Trustee may at any time accept the resignation of or remove any separate trustee or co-trustee.

   

  (c) Any notice, request or other writing given to the Indenture Trustee shall be deemed to have been given to each of the then separate trustees
      and co-trustees, as effectively as if given to each of them.  Every instrument appointing any separate trustee or co-trustee shall refer to this Indenture and the conditions of this Article VI.  Each separate trustee and co-trustee, upon its
      acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Indenture Trustee or separately, as may be provided therein, subject to all the provisions of this
      Indenture, specifically including every provision of this Indenture relating to the conduct of, affecting the liability of, or affording protection to, the Indenture Trustee.  Every such instrument shall be filed with the Indenture Trustee.

   

  (d) Any separate trustee or co-trustee may at any time constitute the Indenture Trustee, its agent or attorney-in-fact with full power and
      authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Indenture on its behalf and in its name.  If any separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its
      estates, properties, rights, remedies and trusts shall vest in and be exercised by the Indenture Trustee, to the extent permitted by law, without the appointment of a new or successor trustee.

   

  SECTION 6.11.        Eligibility;

      Disqualification.  The Indenture Trustee shall at all times satisfy the requirements of TIA § 310(a) and shall in addition have a combined capital and surplus of at least $50,000,000 (as set forth in its most recent published annual report of
      condition) and a long-term debt rating of “A” or better by, or be otherwise acceptable to, each Rating Agency.  The Indenture Trustee shall comply with TIA § 310(b), including the optional provision permitted by the second sentence of TIA §
      310(b)(9); provided, however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other securities of the Issuer are outstanding if the requirements for such exclusion set forth in TIA §
      310(b)(1) are met.

   

  SECTION 6.12.        Preferential

      Collection of Claims Against Issuer.  The Indenture Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b).        An Indenture Trustee who has resigned or been removed shall be subject to TIA § 311(a) to
      the extent indicated.

   

  
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  SECTION 6.13.        Waiver

      of Setoffs.  The Indenture Trustee hereby expressly waives any and all rights of setoff that the Indenture Trustee may otherwise at any time have under applicable law with respect to any Trust Account and agrees that amounts in the Trust Accounts
      shall at all times be held and applied solely in accordance with the provisions hereof and of the other Basic Documents.

   

  SECTION 6.14.        Licenses. 

      The Issuer shall take such action as, in its reasonable judgment, shall be necessary to maintain the effectiveness of all sales finance company licenses required under the Maryland Code Financial Institutions, Title 11, Subtitle 4 and all licenses
      required under the Pennsylvania Motor Vehicle Sales Finance Act, in connection with this Indenture and the transactions contemplated hereby until the lien and security interest of this Indenture shall no longer be in effect in accordance with the
      terms hereof.

   

  SECTION 6.15.        Additional

      Duties.  [____________________] agrees to perform the duties of Certificate Registrar, authenticating agent and Paying Agent as set forth under and pursuant to the Trust Agreement including, without limitation, those specified in Sections 3.07, 3.08,
      3.09, and 5.01 of the Trust Agreement, and shall be entitled to all of the rights and indemnities of the Indenture Trustee in the performance of such duties.

   

  ARTICLE VII.

      

      NOTEHOLDERS’ LISTS AND REPORTS

   

  SECTION 7.01.        Issuer

      To Furnish Indenture Trustee Names and Addresses of Noteholders.  The Issuer will furnish or cause to be furnished to the Indenture Trustee (a) not more than five (5) days after the earlier of (i) each Record Date and (ii) three months after the last
      Record Date, a list, in such form as the Indenture Trustee may reasonably require, of the names and addresses of the Holders of Notes as of such Record Date, and (b) at such other times as the Indenture Trustee may request in writing, within thirty
      (30) days after receipt by the Issuer of any such request, a list of similar form and content as of a date not more than ten (10) days prior to the time such list is furnished; provided, however, that so long as the Indenture Trustee is the Note
      Registrar, no such list shall be required to be furnished.

   

  SECTION 7.02.        Preservation

      of Information; Communications to Noteholders.

   

  (a) The Indenture Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of the Holders of Notes
      contained in the most recent list furnished to the Indenture Trustee as provided in Section 7.01 and the names and addresses of Holders of Notes received by the Indenture Trustee in its capacity as Note Registrar.  The Indenture Trustee may destroy
      any list furnished to it as provided in such Section 7.01 upon receipt of a new list so furnished.  The Indenture Trustee shall make such list available to the Owner Trustee on written request, and to the Noteholders upon written request of three or
      more Noteholders or one or more Noteholders evidencing not less than 25% of the Outstanding Amount of the Notes.  Upon receipt by the Indenture Trustee of any request by a Noteholder to receive a copy of the current list of Noteholders, the Indenture
      Trustee shall promptly notify the

   

  
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  Administrator thereof by providing to the Administrator a copy of such request and a copy of the list of Noteholders in response thereto.

   

  (b) Noteholders may communicate pursuant to TIA § 312(b) with other Noteholders with respect to their rights under this Indenture or under the
      Notes.

   

  (c) The Issuer, the Indenture Trustee and the Note Registrar shall have the protection of TIA § 312(c).

   

  (d) Not later than the fifth business day of each calendar month (or, if such day is not a Business Day, the immediately following Business Day),
      beginning in [__________] 20[__], the Indenture Trustee shall provide to BMW FS and the Depositor a notice with respect to any written requests received by a Responsible Officer of the Indenture Trustee from a Noteholder during the immediately
      preceding calendar month (or, in the case of the initial notice, since the Closing Date) that any Receivable or Financed Vehicle be repurchased.  Such notices shall be provided (i) to BMW FS at: BMW Financial Services NA, LLC at 300 Chestnut Ridge
      Road, Woodcliff Lake, NJ 07677, Attention: General Counsel, E-mail: ABS.Operations@bmwfs.com, or at such other address or by such other means of communication as may be specified by BMW FS to the Indenture Trustee from time to time; and (ii) to the
      Depositor at: BMW FS Securities LLC, 300 Chestnut Ridge Road, Woodcliff Lake, NJ 07677, Attention: General Counsel, E-mail: ABS.Operations@bmwfs.com, or at such other address or by such other means of communication as may be specified by the
      Depositor to the Indenture Trustee from time to time.  The Indenture Trustee and the Issuer acknowledge and agree that the purpose of this subsection is to facilitate compliance by BMW FS and the Depositor with Rule 15Ga-1 under the Exchange Act. The
      Indenture Trustee agrees to comply with reasonable requests made by BMW FS and the Depositor in good faith for delivery of information under these provisions on the basis of evolving interpretations of such rule. The Indenture Trustee shall cooperate
      fully with all reasonable requests of BMW FS and the Depositor to deliver any and all records and any other information, in each case in its possession, necessary to permit BMW FS and the Depositor to comply with the provisions of such rule.

   

  SECTION 7.03.        Reports by Issuer.

   

  
    
      	

            	(a)	
              The Issuer shall:

            

    

  

   

  (i) make available to the Indenture Trustee, within fifteen (15) days after the Issuer is required (if at all) to file the same with the
      Commission, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the  foregoing as the Commission may from time to time by rules and regulations prescribe) that the Issuer may be
      required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act;

   

  (ii) make available to the Indenture Trustee and the Commission in accordance with rules and regulations prescribed from time to time by the
      Commission such additional information, documents and reports with respect to compliance by the Issuer with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and

   

  
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  (iii) supply to the Indenture Trustee (and the Indenture Trustee shall transmit by mail to all Noteholders described in TIA § 313(c)) such
      summaries of any information, documents and reports  required to be filed by the Issuer pursuant to clauses (i) and (ii) of this Section 7.03(a) and by rules and regulations prescribed from time to time by the Commission.

   

  (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer shall end on December 31 of each year.

   

  SECTION 7.04.        Reports

      by Indenture Trustee.  If required by TIA § 313(a), within sixty (60) days after each [_____] beginning with [_____], 20[__]], the Indenture Trustee shall mail to each Noteholder as required by TIA § 313(c) a brief report dated as of such date that
      complies with TIA § 313(a).  The Indenture Trustee also shall comply with TIA § 313(b).

   

  A copy of each report at the time of its mailing to Noteholders shall be filed by the Indenture Trustee with the Commission and
      each stock exchange, if any, on which the Notes are listed.  The Issuer shall notify the Indenture Trustee if and when the Notes are listed on any stock exchange.

   

  ARTICLE VIII.

      

      ACCOUNTS, DISBURSEMENTS AND RELEASES

   

  SECTION 8.01.        Collection

      of Money.  Except as otherwise expressly provided herein, the Indenture Trustee may demand payment or delivery of, and shall receive and collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all money and
      other property payable to or receivable by the Indenture Trustee pursuant to this Indenture.  The Indenture Trustee shall apply all such money received by it as provided in this Indenture.  Except as otherwise expressly provided in this Indenture, if
      any default occurs in the making of any payment or performance under any agreement or instrument that is part of the Trust Estate, the Indenture Trustee may take such action as may be appropriate to enforce such payment or performance, including the
      institution and prosecution of appropriate Proceedings.  Any such action shall be without prejudice to any right to claim a Default or Event of Default under this Indenture and any right to proceed thereafter as provided in Article V.

   

  SECTION 8.02.        Trust Accounts.

   

  (a) On or prior to the Closing Date, the Issuer shall cause the Indenture Trustee to establish and maintain, in the name of the Indenture Trustee,
      for the benefit of the Noteholders and, in the case of the Collection Account and the Reserve Account, the Certificateholders [and each Swap Counterparty], the Trust Accounts as provided in Section 5.01 of the Sale and Servicing Agreement.

   

  (b) On or before each Deposit Date, the Issuer shall cause the Servicer to deposit all Available Amounts with respect to the Collection Period
      preceding such Payment Date in the Collection Account as provided in Section 5.01(e), 5.02, 5.04 and 5.11 of the Sale and Servicing Agreement.  On or before each Deposit Date, all amounts required to be withdrawn from the Reserve Account and
      deposited in the Collection Account pursuant to

   

  
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  Section 5.07 of the Sale and Servicing Agreement shall be withdrawn by the Indenture Trustee from the Reserve Account and deposited to the
      Collection Account as provided therein, as to which Issuer shall cause Servicer to timely provide the related instructions.

   

  (c) On each Payment Date, the Indenture Trustee (based on the information contained in the Servicer’s Certificate delivered on or before the
      related Determination Date pursuant to Section 4.09 of the Sale and Servicing Agreement) shall make the withdrawals from the Collection Account and make deposits, distributions and payments, to the extent of funds on deposit in the Collection Account
      with respect to the Collection Period preceding such Payment Date (including funds, if any, deposited therein from the Reserve Account), in accordance with the provisions of Section 5.06(b) of the Sale and Servicing Agreement or Section 5.04(b), as
      applicable.

   

  (d) On each Payment Date, the Indenture Trustee (based on the information contained in the Servicer’s Certificate delivered on or before the
      related Determination Date pursuant to Section 4.09 of the Sale and Servicing Agreement) shall withdraw the funds on deposit in the Interest Distribution Account with respect to the Collection Period preceding such Payment Date and make distributions
      and payments to the Noteholders, in an amount equal to the accrued and unpaid interest on the Notes; provided that if there are not sufficient funds available to pay the entire amount of the accrued and unpaid interest on the Notes, the amounts
      available shall be applied to the payment of such interest on the Notes on a pro rata basis based upon the amount of interest due on each Class of Notes.

   

  (e) On each Payment Date, the Indenture Trustee (based on the information contained in the Servicer’s Certificate delivered on or before the
      related Determination Date pursuant to Section 4.09 of the Sale and Servicing Agreement) shall withdraw the funds on deposit in the Principal Distribution Account with respect to the Collection Period preceding such Payment Date (including, if
      applicable, any amount deposited by the Indenture Trustee in respect of damages received from the FDIC pursuant to Section 12.05(e)) and, so long as the maturity of the Notes has not been accelerated pursuant to Section 5.02, make distributions and
      payments in the following order of priority:

   

  (i) first, to the Noteholders of the Class A-1 Notes in reduction of principal until the Outstanding Amount of the Class A-1 Notes has been paid in
      full; provided that if there are not sufficient funds available to pay the Outstanding Amount of the Class A-1 Notes in full, the amounts available shall be applied to the payment of principal on the Class A-1 Notes on a pro rata basis;

   

  (ii) second, to the Noteholders of the Class A-2a Notes and Class A-2b Notes, pro rata, based on their respective Outstanding Amounts, in
      reduction of principal until the Outstanding Amounts of the Class A-2a Notes and Class A-2b Notes have been paid in full; provided that if there are not sufficient funds available to pay the Outstanding Amounts of the Class A-2a Notes and Class A-2b
      Notes in full, the amounts available shall be applied to the payment of principal on the Class A-2a Notes and Class A-2b Notes on a pro rata basis;

   

  
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  (iii)             third, to the Noteholders of the Class A-3 Notes in reduction of principal until the Outstanding Amount of the Class A-3 Notes has been paid in full; provided that if there are not sufficient funds available to pay the  Outstanding
      Amount of the Class A-3 Notes in full, the amounts available shall be applied to the payment of principal on the Class A-3 Notes on a pro rata basis;

   

  (iv)             fourth, to the Noteholders of the Class A-4 Notes in reduction of principal until the Outstanding Amount of the Class A-4 Notes has been paid in full; provided that if there are not sufficient funds available to pay the  Outstanding
      Amount of the Class A-4 Notes in full, the amounts available shall be applied to the payment of principal on the Class A-4 Notes on a pro rata basis;

   

  (v)              fifth, to the Noteholders of the Class B Notes in reduction of principal until the Outstanding Amount of the Class B Notes has been paid in full; provided that if there are not sufficient funds available to pay the Outstanding Amount
      of the Class B Notes in full, the amounts available shall be applied to the payment of principal on the Class B Notes on a pro rata basis; and

   

  (vi)             sixth, any remaining amounts, to the Certificate Distribution Account, for distribution to the Certificateholders;

   

  provided, however, that following the acceleration of the Notes pursuant to Section 5.02, distributions shall be made as provided in clauses
      THIRD, FOURTH and FIFTH of Section 5.04(b)(i).

   

  SECTION 8.03.        General

      Provisions Regarding Accounts.  The Indenture Trustee shall not in any way be held liable by reason of any insufficiency in any of the Trust Accounts resulting from any loss on any Eligible Investment included therein except for losses attributable
      to the Indenture Trustee’s failure to make payments on such Eligible Investments issued by the Indenture Trustee, in its commercial capacity as principal obligor and not as trustee, in accordance with their terms. If (i) the Servicer shall have
      failed to give investment directions for any funds on deposit in the Reserve Account to the Indenture Trustee by 11:00 a.m., New York City time (or such other time as may be agreed by the Administrator and Indenture Trustee), on any Business Day or
      (ii) a Default or Event of Default of which a Responsible Officer of the Indenture Trustee shall have actual knowledge shall have occurred and be continuing with respect to the Notes but the Notes shall not have been declared due and payable pursuant
      to Section 5.02 or (iii) if the Notes shall have been declared due and payable following an Event of Default and amounts collected or receivable from the Trust Estate are being applied in accordance with Section 5.05 as if there had not been such a
      declaration, then the Indenture Trustee shall, to the fullest extent practicable, invest and reinvest funds in investments that are Eligible Investments in accordance with standing instructions most recently given in writing by the Servicer. Any
      Eligible Investments evidenced by an instrument or a certificated security shall be held by the Indenture Trustee in the State of New York or the State of Minnesota.

   

  Except as otherwise provided hereunder or agreed in writing among the parties hereto, the Servicer shall retain the authority
      to institute, participate and join in any plan of

   

  
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  reorganization, readjustment, merger or consolidation with respect to the issuer of any securities held hereunder in the Trust Accounts, and, in
      general, to exercise each and every other power or right with respect to each such asset or investment as individuals generally have and enjoy with respect to their own assets and investment, including power to vote on any securities.

   

  The Indenture Trustee is authorized to deposit uninvested funds in non-interest bearing, unsecured demand deposit accounts at
      affiliated banks, purchase and sell investment securities through or from affiliated banks and broker-dealers, invest funds in registered investment companies that receive investment management and custodial services from the Indenture Trustee or its
      affiliates, subject to the limitations set forth herein.

   

  The Issuer acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity
      grant the Issuer the right or option to receive individual confirmations of security transactions at no additional cost, as they occur, the Issuer specifically waives the option to receive such confirmation to the extent permitted by law.  The
      Indenture Trustee will furnish the Issuer periodic cash transaction statements that include detail for all investment transactions made by the Indenture Trustee hereunder.

   

  SECTION 8.04.        Release

      of Trust Estate.

   

  (a) Subject to the payment of its fees and expenses pursuant to Section 6.07, the Indenture Trustee may, and when required by the provisions of
      this Indenture shall, execute instruments to release property from the lien of this Indenture, or convey the Indenture Trustee’s interest in the same, in a manner and under circumstances that are not inconsistent with the provisions of this
      Indenture.  No party relying upon an instrument executed by the Indenture Trustee as provided in this Article VIII shall be bound to ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the
      application of any moneys.

   

  (b) The Indenture Trustee shall, at such time as there are no Notes Outstanding and all sums due the Indenture Trustee pursuant to Section 6.07
      have been paid in full, release any remaining portion of the Trust Estate that secured the Notes from the lien of this Indenture and release to the Issuer or any other Person entitled thereto any funds then on deposit in the Trust Accounts.  The
      Indenture Trustee shall release property from the lien of this Indenture pursuant to this Section 8.04(b) only upon receipt by it of an Issuer Request accompanied by an Officer’s Certificate, an Opinion of Counsel and (if required by the TIA)
      Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(1) meeting the applicable requirements of Section 11.01.

   

  (c) The Issuer agrees, upon request by the Servicer and representation by the Servicer that it has complied with the procedure in Section 9.01 of
      the Sale and Servicing Agreement, to render the Issuer Request to the Indenture Trustee in accordance with Section 4.04, and take such other actions as are required in that Section.

   

  SECTION 8.05.        Opinion

      of Counsel.  The Indenture Trustee shall receive at least seven (7) days’ prior written notice when requested by the Issuer to take any action pursuant to Section 8.04(b), accompanied by copies of any instruments involved, and the

   

  
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  Indenture Trustee shall also require, as a condition to such action, an Opinion of Counsel, in form and substance satisfactory to the Indenture
      Trustee, stating the legal effect of any such action, outlining the steps required to complete the same, and concluding that all conditions precedent to the taking of such action have been complied with and such action will not materially and
      adversely impair the security for the Notes or the rights of the Noteholders in contravention of the provisions of this Indenture; provided, however, that such Opinion of Counsel shall not be required to express an opinion as to the fair value of the
      Trust Estate.  Counsel rendering any such opinion may rely, without independent investigation, on the accuracy and validity of any certificate or other instrument delivered to the Indenture Trustee in connection with any such action.

   

  ARTICLE IX.

      

      SUPPLEMENTAL INDENTURES

   

  SECTION 9.01.        Supplemental

      Indentures Without Consent of Noteholders.

   

  (a) Without the consent of the Holders of any Notes, but with prior written notice made available to the Rating Agencies by the Administrator (with
      copy to the Indenture Trustee), the Issuer and the Indenture Trustee, when authorized by an Issuer Order, at any time and from time to time, may enter into one or more supplemental indentures hereto (which shall conform to the provisions of the Trust
      Indenture Act as in force at the date of the execution thereof), in form satisfactory to the Indenture Trustee, for any of the following purposes:

   

  (i)               to correct or amplify the description of any property at any time subject to the lien of this Indenture, or better to assure, convey and confirm unto the Indenture Trustee any property subject or required to be subjected to the lien of
      this Indenture, or to subject to the lien of this Indenture additional property;

   

  (ii)              to evidence the succession, in compliance with the applicable provisions hereof, of another person to the Issuer, and the assumption by any such successor of the covenants of the Issuer contained herein and in the Notes;

   

  (iii)             to add to the covenants of the Issuer, for the benefit of the Holders of the Notes, or to surrender any right or power herein conferred upon the Issuer;

   

  (iv)             to convey, transfer, assign, mortgage or pledge any property to or with the Indenture Trustee;

   

  (v) to cure any ambiguity, to correct or supplement any provision herein or in any supplemental indenture that may be inconsistent with any other
      provision herein or in any supplemental indenture or to add any other provisions with respect to matters or questions arising under this Indenture or in any supplemental indenture; provided, that such action shall not adversely affect the interests
      of the Holders of the Notes, as evidenced by an Officer’s Certificate of the Issuer;

   

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

   

  (vii)             to modify, eliminate or add to the provisions of this Indenture to such extent as shall be necessary to effect the qualification of this Indenture under the TIA or under any similar federal statute hereafter enacted and to add to this
      Indenture such other provisions as may be expressly required by the TIA.

   

  The Indenture Trustee is hereby authorized to join in the execution of any such supplemental indenture and to make any further appropriate
      agreements and stipulations that may be therein contained.

   

  (b) The Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, also without the consent of any of the Holders of the Notes but
      with prior notice made available to the Rating Agencies by the Administrator, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of,
      this Indenture or of modifying in any manner the rights of the Holders of the Notes under this Indenture; provided, however, that such action shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of
      any Noteholder; provided, further, that such action shall be deemed not to adversely affect in any material respect the interests of any Noteholder and no Opinion of Counsel to that effect shall be required if the Rating Agency Condition is satisfied
      with respect to each Rating Agency.

   

  SECTION 9.02.        Supplemental

      Indentures with Consent of Noteholders.  The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may, with prior notice made available to the Rating Agencies by the Administrator and with the consent of the Holders of not less
      than a majority of the Outstanding Amount of the Notes, by Act of such Holders delivered to the Issuer and the Indenture Trustee, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to, or changing in
      any manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the rights of the Holders of the Notes under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the
      Holder of each Outstanding Note affected thereby:

   

  (i) change the date of payment of any installment of principal of or interest on any Note, or reduce the principal amount thereof, the interest
      rate thereon or the Redemption Price with respect thereto, change the provisions of this Indenture relating to the application of collections on, or the proceeds of the sale of, the Trust Estate to payment of principal of or interest on the Notes, or
      change any place of payment where, or the coin or currency in which, any Note or the interest thereon is payable, or impair the right to institute suit for the enforcement of the provisions of this Indenture requiring the application of funds
      available therefor, as provided in Article V, to the payment of any such amount due on the Notes on or after the respective due dates thereof (or, in the case of redemption, on or after the Redemption Date);

   

  
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  (ii)              reduce the percentage of the Outstanding Amount of the Notes, the consent of the Holders of which is required for any such supplemental indenture, or the consent of the Holders of which is required for any waiver of compliance with
      certain provisions of this Indenture or certain defaults hereunder and their consequences provided for in this Indenture;

   

  (iii)             modify or alter the provisions of the proviso to the definition of “Outstanding”;

   

  (iv)             reduce the percentage of the Outstanding Amount of the Notes, required to direct the Indenture Trustee to direct the Issuer to sell or liquidate the Trust Estate pursuant to Section 5.04;

   

  (v)              modify any provision of this Section except to increase any percentage specified herein or to provide that certain additional provisions of this Indenture or the Basic Documents cannot be modified or waived without the consent of the
      Holder of each Outstanding Note affected thereby;

   

  (vi)             modify any of the provisions of this Indenture in such manner as to affect the calculation of the amount of any payment of interest or principal due on any Note on any Payment Date (including the calculation of any of the individual
      components of such calculation) or to affect the rights of the Holders of Notes to the benefit of any provisions for the mandatory redemption of the Notes contained herein; or

   

  (vii)            permit the creation of any lien ranking prior to or on a parity with the lien of this Indenture with respect to any part of the Trust Estate or, except as otherwise permitted or contemplated herein, terminate the lien of this Indenture
      on any property at any time subject hereto or deprive the Holder of any Note of the security provided by the lien of this Indenture.

   

  It shall not be necessary for any Act of Noteholders under this Section to approve the particular form of any proposed
      supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof.

   

  Promptly after the execution by the Issuer and the Indenture Trustee of any supplemental indenture pursuant to this Section,
      the Indenture Trustee shall mail to the Holders of the Notes to which such amendment or supplemental indenture relates a notice setting forth in general terms the substance of such supplemental indenture.  Any failure of the Indenture Trustee to mail
      such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

   

  SECTION 9.03.        Execution

      of Supplemental Indentures.  In executing, or permitting the additional trusts created by, any supplemental indenture permitted by this Article IX or the modification thereby of the trusts created by this Indenture, the Indenture Trustee shall be
      entitled to receive, and subject to Sections 6.01 and 6.02, shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture, and that all
      conditions precedent thereto have been

   

  
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  met.  The Indenture Trustee and the Owner Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the
      Indenture Trustee’s or the Owner Trustee’s own rights, duties, liabilities or immunities under this Indenture or otherwise.  Any supplemental indenture affecting the rights, duties, immunities or liabilities of the Owner Trustee shall require the
      Owner Trustee’s written consent.  The Administrator shall provide a fully executed copy of any supplemental indentures to this Indenture to each Rating Agency.

   

  SECTION 9.04.        Effect

      of Supplemental Indenture.  Upon the execution of any supplemental indenture pursuant to the provisions hereof, this Indenture shall be and shall be deemed to be modified and amended in accordance therewith with respect to the Notes affected thereby,
      and the respective rights, limitations of rights, obligations, duties, liabilities and immunities under this Indenture of the Indenture Trustee, the Issuer and the Holders of the Notes shall thereafter be determined, exercised and enforced hereunder
      subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and shall be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

   

  SECTION 9.05.        Reference

      in Notes to Supplemental Indentures.  Notes authenticated and delivered after the execution of any supplemental indenture pursuant to this Article IX may, and if requested by the Issuer shall, bear a notation in form approved by the Indenture Trustee
      as to any matter provided for in such supplemental indenture.  If the Issuer shall so determine, new Notes so modified as to conform, in the opinion of the Issuer, to any such supplemental indenture may be prepared and executed by the Issuer and
      authenticated and delivered by the Indenture Trustee in exchange for Outstanding Notes.

   

  SECTION 9.06.        Conformity

      with Trust Indenture Act.  Every amendment of this Indenture and every supplemental indenture executed pursuant to this Article IX shall conform to the requirements of the Trust Indenture Act as then in effect so long as this Indenture shall then be
      qualified under the Trust Indenture Act.

   

  ARTICLE X.

      

      REDEMPTION OF NOTES

   

  SECTION 10.01.        Redemption. 

      The Notes are subject to redemption in whole, but not in part, at the direction of the Servicer pursuant to Section 9.01 of the Sale and Servicing Agreement, on any Payment Date on which the Servicer exercises its option to purchase the Trust Estate
      pursuant to said Section 9.01, for a purchase price equal to the Redemption Price; provided, that the Issuer has available funds sufficient to pay the Redemption Price.  The Servicer or the Issuer shall furnish the Rating Agencies and the Indenture
      Trustee notice of such redemption.  If the Notes are to be redeemed pursuant to this Section 10.01, the Servicer shall furnish notice of such election to the Indenture Trustee not later than twenty (20) days prior to the Redemption Date and shall
      deposit on the Business Day prior to the Redemption Date with the Indenture Trustee in the Note Distribution Account the Redemption Price of the Notes to be redeemed, whereupon all such Notes shall be due and payable on the Redemption Date upon the
      furnishing of a notice complying with Section 10.02 to each Holder

   

  
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  of the Notes.  For the avoidance of doubt, the Trust Accounts need not be closed until thirty (30) days after the receipt of such notice.

   

  SECTION 10.02.        Form
      of Redemption Notice.  Notice of redemption under Section 10.01 shall be given by the Indenture Trustee by first-class mail, postage prepaid, or by facsimile mailed or transmitted not later than ten (10) days prior to the applicable Redemption Date
      to each Noteholder of record, as of the close of business on the Business Day immediately preceding the date of such notice at such Holder’s address or facsimile number appearing in the Note Register.

   

  All notices of redemption shall state:

   

  (i)               the Redemption Date;

   

  (ii)              the Redemption Price;

   

  (iii)             the place where such Notes are to be surrendered for payment of the Redemption Price (which shall be the office or agency of the Issuer to be maintained as provided in Section 3.02); and

   

  (iv)             that interest on the Notes shall cease to accrue on the Redemption Date.

   

  Notice of redemption of the Notes shall be given by the Indenture Trustee in the name and at the expense of the Issuer.  Failure to give notice of
      redemption, or any defect therein, to any Holder of any Note shall not impair or affect the validity of the redemption of any other Note.

   

  SECTION 10.03.        Notes

      Payable on Redemption Date.  The Notes or portions thereof to be redeemed shall, following notice of redemption as required by Section 10.02 (in the case of redemption pursuant to Section 10.01), on the Redemption Date become due and payable at the
      Redemption Price and (unless the Issuer shall default in the payment of the Redemption Price) no interest shall accrue on the Redemption Price for any period after the date to which accrued interest is calculated for purposes of calculating the
      Redemption Price.

   

  ARTICLE XI.

      

      MISCELLANEOUS

   

  SECTION 11.01.        Compliance

      Certificates and Opinions, etc.

   

  (a) Upon any application or request by the Issuer to the Indenture Trustee to take any action under any provision of this Indenture, the Issuer
      shall furnish to the Indenture Trustee (i) an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with and (ii) an Opinion of Counsel stating that in
      the opinion of such counsel all such conditions precedent, if any, have been complied with and (iii) (if required by the TIA) an Independent Certificate from a firm of certified public accountants meeting the applicable requirements of this Section,
      except that, in the case of any such application or request as to which the furnishing of such documents is

   

  
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  specifically required by any provision of this Indenture, no additional certificate or opinion need be furnished.

   

  Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall
      include:

   

  (i)                a statement that each signatory of such certificate or opinion has read or has caused to be read such covenant or condition and the definitions herein relating thereto;

   

  (ii)               a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

   

  (iii)              a statement that, in the opinion of each such signatory, such signatory has made such examination or investigation as is necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition
      has been complied with; and

   

  (iv)              a statement as to whether, in the opinion of each such signatory, such condition or covenant has been complied with.

   

  (b)          (i)          
          Prior to the deposit of any Collateral or other property or securities with the Indenture Trustee that is to be made the basis for the release of any property or securities subject to the lien of this Indenture, the Issuer shall, in addition to
      any obligation imposed in Section 11.01(a) or elsewhere in this Indenture, furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of each person signing such certificate as to the fair value (within ninety (90)
      days of such deposit) to the Issuer of the Collateral or other property or securities to be so deposited.

   

  (ii)              Whenever the Issuer is required to furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of any signatory thereof as to the matters described in clause (i) above, the Issuer shall also deliver to
      the Indenture Trustee an Independent Certificate as to the same matters, if the fair value to the Issuer of the securities to be so deposited and of all other such securities made the basis of any such withdrawal or  release since the commencement of
      the then-current fiscal year of the Issuer, as set forth in the certificates delivered pursuant to clause (i) above and this clause (ii), is 10% or more of the Outstanding Amount of the Notes, but such a certificate need not be furnished with respect
      to any securities so deposited, if the fair value thereof to the Issuer as set forth in the related Officer’s Certificate is less than $25,000 or less than one percent of the Outstanding Amount of the Notes.

   

  (iii)             Whenever any property or securities are to be released from the lien of this Indenture, the Issuer shall also furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of each person signing such
      certificate as to the fair value (within ninety (90) days of such release) of the property or securities proposed to be released and stating that in the opinion of

   

  
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  such person the proposed release will not impair the security under this Indenture in contravention of the provisions hereof.

   

  (iv)              Other than with respect to the release of any Purchased Receivable, the Issuer is required to furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of any signer thereof as to the matters described
      in clause (iii) above and the Issuer shall also furnish to the Indenture Trustee an Independent Certificate as to the same matters if the fair value of the property or securities and of all other property, other than property as contemplated by
      clause (v) below, or securities released from the lien of this Indenture since the commencement of the then-current calendar year, as set forth in the certificates required by clause (iii) above and this clause (iv), equals 10% or more of the
      Outstanding Amount of the Notes, but such certificate need not be furnished in the case of any release of property or securities if the fair value thereof as set forth in the related Officer’s Certificate is less than $25,000 or less than one percent
      of the then Outstanding Amount of the Notes.

   

  (v)               Notwithstanding Section 4.04 or any other provision of this Section, the Issuer may, without compliance with the requirements of the other provisions of this Section, (A) collect, liquidate, sell or otherwise dispose of Receivables and
      Financed Vehicles as and to the extent permitted or required by the Basic Documents and (B) make cash payments out of the Trust Accounts as and to the extent permitted or required by the Basic Documents.

   

  SECTION 11.02.        Form
      of Documents Delivered to Indenture Trustee.  In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion
      of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may
      certify or give an opinion as to such matters in one or several documents.

   

  Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as it relates to legal matters, upon a
      certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which such officer’s
      certificate or opinion is based are erroneous.  Any such certificate of an Authorized Officer or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or
      officers of the Servicer, a Seller, the Issuer or the Administrator, stating that the information with respect to such factual matters is in the possession of the Servicer, a Seller, the Issuer or the Administrator, unless such counsel knows, or in
      the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous.

   

  Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements,
      opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument.

   

  
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  Whenever in this Indenture, in connection with any application or certificate or report to the Indenture Trustee, it is
      provided that the Issuer shall deliver any document as a condition of the granting of such application, or as evidence of the Issuer’s compliance with any term hereof, it is intended that the truth and accuracy, at the time of the granting of such
      application or at the effective date of such certificate or report (as the case may be), of the facts and opinions stated in such document shall in such case be conditions precedent to the right of the Issuer to have such application granted or to
      the sufficiency of such certificate or report.  The foregoing shall not, however, be construed to affect the Indenture Trustee’s right to rely upon the truth and accuracy of any statement or opinion contained in any such document as provided in
      Article VI.

   

  SECTION 11.03.        Acts of Noteholders.

   

  (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by
      Noteholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Noteholders in person or by agents duly appointed in writing; and except as herein otherwise expressly provided such action shall
      become effective when such instrument or instruments are delivered to the Indenture Trustee and, where it is hereby expressly required, to the Issuer.  Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein
      sometimes referred to as the “Act” of the Noteholders signing such instrument or instruments.  Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to
      Section 6.01) conclusive in favor of the Indenture Trustee and the Issuer, if made in the manner provided in this Section.

   

  (b) The fact and date of the execution by any person of any such instrument or writing may be proved in any manner that the Indenture Trustee deems
      sufficient.

   

  (c) The ownership of Notes shall be proved by the Note Register.

   

  (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Notes shall bind the Holder of
      every Note issued upon the registration thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be done by the Indenture Trustee or the Issuer in reliance thereon, whether or not notation of such action
      is made upon such Note.

   

  SECTION 11.04.        Notices,

      etc., to Indenture Trustee, Issuer and Rating Agencies.  Any request, demand, authorization, direction, notice, consent, waiver or Act of Noteholders or other documents provided or permitted by this Indenture shall be in writing and, if such request,
      demand, authorization, direction, notice, consent, waiver or Act of Noteholders is to be made upon, given or furnished to or filed with:

   

  (i) the Indenture Trustee by any Noteholder or by the Issuer, shall be sufficient for every purpose hereunder if made, given, furnished or filed in
      writing to or with the Indenture Trustee at its Corporate Trust Office; or

   

  (ii) the Issuer by the Indenture Trustee or by any Noteholder, shall be sufficient for every purpose hereunder if in writing and mailed
      first-class, postage

   

  
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  prepaid to the Issuer, addressed to: BMW Vehicle Owner Trust 20[__]-[__], in care of [__________], as Owner Trustee,
      [___________________________], or at any other address previously furnished in writing to the Indenture Trustee by the Issuer or the Administrator.  The Issuer shall promptly transmit any notice received by it from the Noteholders to the Indenture
      Trustee.

   

  Notices required to be given to the Rating Agencies shall be in writing, personally delivered or mailed by certified mail,
      return receipt requested, to (i) in the case of [__________], at the following address: [___________________________], Attention: [__________]; (ii) in the case of [__________], at the following address: [___________________________], Attention:
      [__________]; or as to each of the foregoing, at such other address as shall be designated by written notice to the other parties.

   

  SECTION 11.05.        Notices

      to Noteholders; Waiver.  Where this Indenture provides for notice to Noteholders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class, postage prepaid to each
      Noteholder affected by such event, at such Holder’s address as it appears on the Note Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice.  In any case where notice to Noteholders
      is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any particular Noteholder shall affect the sufficiency of such notice with respect to other Noteholders, and any notice that is mailed in the manner
      herein provided shall conclusively be presumed to have been duly given.

   

  Where this Indenture provides for notice in any manner, such notice may be waived in writing by any Person entitled to receive
      such notice, either before or after the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Noteholders shall be filed with the Indenture Trustee but such filing shall not be a condition precedent to the validity of
      any action taken in reliance upon such a waiver.

   

  In case, by reason of the suspension of regular mail service as a result of a strike, work stoppage or similar activity, it
      shall be impractical to mail notice of any event to Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Indenture Trustee shall be
      deemed to be a sufficient giving of such notice.

   

  Where this Indenture provides for notice to the Rating Agencies, failure to give such notice shall not affect any other rights
      or obligations created hereunder, and shall not under any circumstance constitute a Default or Event of Default.

   

  SECTION 11.06.        Effect

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

   

  SECTION 11.07.        Successors

      and Assigns.  All covenants and agreements in this Indenture and the Notes by the Issuer shall bind its successors and assigns, whether so expressed or not.  All agreements of the Indenture Trustee in this Indenture shall bind its successors,
      co-trustees and agents.

   

  
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  SECTION 11.08.        Separability. 

      In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

   

  SECTION 11.09.        Benefits

      of Indenture.  Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, and the Noteholders, the Owner Trustee, any other party secured hereunder, and any
      other Person with an ownership interest in any part of the Trust Estate, any benefit or any legal or equitable right, remedy or claim under this Indenture.

   

  SECTION 11.10.        Legal

      Holidays.  In any case where the date on which any payment is due shall not be a Business Day, then (notwithstanding any other provision of the Notes or this Indenture) payment need not be made on such date, but may be made on the next succeeding
      Business Day with the same force and effect as if made on the date on which nominally due, and no interest shall accrue for the period from and after any such nominal date, except in the case of the Class A-1 Notes and the Class A-2b Notes.

   

  SECTION 11.11.        Governing

      Law.  THIS INDENTURE SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE
      OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. REGARDLESS OF ANY PROVISION IN ANY OTHER AGREEMENT, FOR PURPOSES OF THE UCC, NEW YORK SHALL BE DEEMED TO BE THE SECURITIES INTERMEDIARY’S
      JURISDICTION, AND THE LAW OF THE STATE OF NEW YORK SHALL GOVERN ALL ISSUES SPECIFIED IN ARTICLE 2(1) OF THE HAGUE SECURITIES CONVENTION.

   

  SECTION 11.12.        Counterparts. 

      This Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

   

  SECTION 11.13.        Recording

      of Indenture.  If this Indenture is subject to recording in any appropriate public recording offices, such recording is to be effected by the Issuer and at the expense of the Servicer accompanied by an Opinion of Counsel (which may be counsel to the
      Indenture Trustee or any other counsel reasonably acceptable to the Indenture Trustee) to the effect that such recording is necessary either for the protection of the Noteholders or any other Person secured hereunder or for the enforcement of any
      right or remedy granted to the Indenture Trustee under this Indenture.

   

  SECTION 11.14.        Trust

      Obligation.  No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under this Indenture or any certificate or other writing delivered in connection
      herewith or therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of
      the Indenture Trustee or the Owner

   

  
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  Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any
      successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their
      individual capacity) except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call
      owing to such entity.  For all purposes of this Indenture, in the performance of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Article VI, VII
      and VIII of the Trust Agreement.

   

  SECTION 11.15.        No
      Petition.  The Indenture Trustee, by entering into this Indenture, each Noteholder, by accepting a Note, and each Note Owner, by accepting a beneficial interest in a Note, hereby covenant and agree that they will not, at any time, petition or
      otherwise invoke or cause the Issuer or the Depositor to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Issuer or the Depositor under any federal or state bankruptcy, insolvency
      or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or the Depositor or any substantial part of its property, or ordering the winding up or liquidation of the
      affairs of the Issuer or the Depositor.

   

  SECTION 11.16.        Inspection. 

      The Issuer agrees that, on reasonable prior notice, it will permit any representative of the Indenture Trustee, during the Issuer’s normal business hours, to examine all the books of account, records, reports and other papers of the Issuer, to make
      copies and extracts therefrom, to cause such books to be audited by Independent certified public accountants, and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s officers, employees and Independent certified public
      accountants, all at such reasonable times and as often as may be reasonably requested; provided, however, that the Indenture Trustee may only cause the books of the Issuer to be audited on an annual basis, unless there occurs an Event of Default
      hereunder.  The Indenture Trustee shall, and shall cause its representatives to, hold in confidence all such information except to the extent such information is publicly available or such disclosure may be required by law (and all reasonable
      applications for confidential treatment are unavailing) and except to the extent that the Indenture Trustee may reasonably determine with the advice of counsel and after consultation with the Issuer that such disclosure is consistent with its
      obligations hereunder.

   

  SECTION 11.17.        Conflict

      with Trust Indenture Act.  If any provision hereof limits, qualifies or conflicts with another provision hereof that is required to be included in this Indenture by any of the provisions of the Trust Indenture Act, such required provision shall
      control.

   

  The provisions of TIA §§ 310 through 317 that impose duties on any person (including the provisions automatically deemed
      included herein unless expressly excluded by this Indenture) are a part of and govern this Indenture, whether or not physically contained herein.

   

  
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  SECTION 11.18.        Limitation

      of Liability.  It is expressly understood and agreed by the parties hereto that (a) this Indenture is executed and delivered by [__________], not individually or personally but solely as Owner Trustee of BMW Vehicle Owner Trust 20[__]-[__], in the
      exercise of the powers and authority conferred and vested in it, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by
      [__________] but is made and intended for the purpose for binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on [__________], individually or personally, to perform any covenant either expressed or
      implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto and (d) under no circumstances shall [__________] be personally liable for the
      payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Indenture or any other related documents.  [__________]
      has made no independent investigations as to the accuracy or completeness of any of the representations or warranties hereunder.

   

      

  SECTION 11.19.        Intent

      of the Parties; Reasonableness. 

   

  The Indenture Trustee and Issuer acknowledge and agree that the purpose of Section 3.09 and this Section 11.19 is to facilitate
      compliance by the Issuer and the Depositor with the provisions of Regulation AB and related rules and regulations of the Commission.

  

  

  Neither the Issuer nor the Administrator (acting on behalf of the Issuer) shall exercise its right to request delivery of
      information or other performance under these provisions other than in good faith, or for purposes other than compliance with the Securities Act, the Exchange Act and the rules and regulations of the Commission thereunder (or the provision in a
      private offering of disclosure comparable to that required under the Securities Act).  Each of the parties agrees that (a) the obligations of the parties hereunder shall be interpreted in such a manner as to accomplish compliance with Regulation AB
      and (b) the parties’ obligations hereunder will be supplemented and modified as necessary to be consistent with any such amendments, interpretive guidance provided by the Commission or its staff, or consensus among participants in the asset-backed
      securities markets, in respect of the requirements of Regulation AB, and the parties shall comply with reasonable requests made by the Issuer, the Administrator or the Indenture Trustee in good faith for delivery of additional or different
      information to the extent such information is freely available and deliverable (provided that, in the good faith determination of the Issuer, the Administrator or the Indenture Trustee, such additional or different information is required to comply
      with the provisions of Regulation AB).

  

  

  The Issuer (or the Administrator, acting on behalf of the Issuer) shall cooperate with the Indenture Trustee by
      providing timely notice of requests for information under these provisions and by reasonably limiting such requests to information required, in the reasonable judgment or the Issuer to comply with Regulation AB.

   

  SECTION 11.20.        Communications

      with Rating Agencies. If the Indenture Trustee shall receive any written or oral communication from any Rating Agency (or any of their respective officers, directors or employees) with respect to the transactions contemplated hereby

   

  
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  or under the Basic Documents or in any way relating to the Notes, the Indenture Trustee agrees to refrain from communicating with such Rating
      Agency and to promptly (and, in any event, within one (1) Business Day) notify the Administrator of such communication.  The Indenture Trustee agrees to act at the direction of the Administrator with respect to any communication to a Rating Agency
      and further agrees that in no event shall the Indenture Trustee engage in any oral communication with respect to the transactions contemplated hereby or under the Basic Documents or in any way relating to the Notes with any Rating Agency (or any of
      their respective officers, directors or employees) without the participation of the Administrator.

   

  ARTICLE XII.

      

      COMPLIANCE WITH THE FDIC RULE

   

  SECTION 12.01.        Purpose.

   

  (a) Each of the Noteholders, by its acceptance of the Notes or a beneficial interest therein, each of the Certificateholders, by its acceptance of
      the Certificates, the FDIC Rule Parties and the Indenture Trustee acknowledges and agrees that the purpose of this Article XII is to facilitate compliance by the FDIC Rule Parties with the provisions of the FDIC Rule.  Each of the Noteholders, the
      Certificateholders, the FDIC Rule Parties and the Indenture Trustee acknowledges that the interpretations of the requirements of the FDIC Rule may change over time, whether due to interpretive guidance provided by the FDIC or its staff, consensus
      among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees that the provisions set forth in this Article XII shall have the effect and meanings that are appropriate under the FDIC Rule as such effect and
      meanings change over time on the basis of evolving interpretations of the FDIC Rule.

   

  (b) If any provision of the FDIC Rule is amended, or any interpretive guidance regarding the FDIC Rule is provided by the FDIC or its staff, as a
      result of which the Issuer determines that an amendment to this Article XII is necessary or desirable, then the Issuer and the Indenture Trustee shall be authorized and entitled to amend this Article XII in accordance with such FDIC Rule amendment or
      guidance notwithstanding the requirements set forth in Sections 9.01 and 9.02, provided that the Issuer delivers to the Indenture Trustee an Opinion of Counsel to the effect that such amendment is required in order to remain in compliance with the
      FDIC Rule.  Nothing in this Section 12.01(b) shall limit the rights of the Indenture Trustee or the Owner Trustee pursuant to Section 9.03, and the Indenture Trustee and the Owner Trustee shall have no duty to monitor or enforce the ongoing
      compliance by the FDIC Rule Parties with the FDIC Rule or this Article XII.

   

  (c) As used in this Article XII, but subject to the rules of interpretation specified in Section 12.01(a) and Section 12.01(b), references to (i)
      the “sponsor” shall mean BMW Bank, (ii) the “issuing entity” shall mean, collectively, the Depositor, BMW FS and the Issuer (except in Section 12.02(e), where such term shall have the meaning assigned thereto in the FDIC Rule), (iii) the “servicer”
      shall mean the Servicer or the Administrator, as applicable, (iv) “obligations” or “securitization obligations” shall be deemed to refer to the Notes, but only to the extent secured by the Receivables sold by BMW Bank to the Depositor under the
      related Receivables Purchase Agreement, and (v) “financial assets” shall mean the Receivables

   

  
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  transferred to the Depositor by BMW Bank (except in Section 12.02(e), where such term shall have the meaning assigned thereto in the FDIC Rule). 
      As a practical matter, and subject to certain limited exceptions, the transactions contemplated by the Basic Documents do not distinguish between Receivables sold by BMW Bank to the Depositor and Receivables sold by BMW FS to the Depositor, and the
      provisions of Section 12.02(a) and Section 12.02(b) are true for all of the Receivables and all of the Notes for so long as any Receivables sold by BMW Bank to the Depositor are owned by the Issuer.

   

  (d)   Each of the FDIC Rule Parties believes that the transactions and actions contemplated by the Basic Documents and the related prospectus
      comply with the requirements of Section 12.02.

   

  SECTION 12.02.        Requirements

      of the FDIC Rule.  As required by the FDIC Rule:

   

  (a) Payment of principal and interest on the securitization obligations must be primarily based on the performance of financial assets that are
      transferred to the Issuer and, except for interest rate or currency mismatches between the financial assets and the obligations, shall not be contingent on market or credit events that are independent of such financial assets.

   

  (b)   The sponsor, issuing entity, and/or servicer, as appropriate, shall make available to investors, information describing the financial assets,
      obligations, capital structure, compensation of relevant parties, and relevant historical performance data set forth below:

   

  (i) On or prior to issuance of obligations and at the time of delivery of any periodic distribution report and, in any event, at least once per
      calendar quarter, while obligations are outstanding, information about the obligations and the financial assets shall be disclosed to all potential investors at the financial asset or pool level, as appropriate for the financial assets, and
      security-level to enable evaluation and analysis of the credit risk and performance of the obligations and financial assets. Such information and its disclosure, at a minimum, shall comply with the requirements of Regulation AB or any successor
      disclosure requirements for public issuances, even if the obligations are issued in a private placement or are not otherwise required to be registered; provided that information that is unknown or not available to the sponsor or the issuing entity
      after reasonable investigation may be omitted if the issuing entity includes a statement in the offering documents disclosing that the specific information is otherwise unavailable;

   

  (ii) On or prior to issuance of obligations, the structure of the securitization and the credit and payment performance of the obligations
      shall be disclosed, including the capital or tranche structure, the priority of payments and specific subordination features; representations and warranties made with respect to the financial assets, the remedies for and the time permitted for cure
      of any breach of representations and warranties, including the repurchase of financial assets, if applicable; liquidity facilities and any credit enhancements permitted by the FDIC Rule, any waterfall triggers or priority of payment reversal
      features; and

   

  
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  policies governing delinquencies, servicer advances, loss mitigation, and write-offs of financial assets;

   

  (iii)                 While obligations are outstanding, the issuing entity shall provide to investors information with respect to the credit performance of the obligations and the financial assets, including periodic and cumulative financial asset
      performance data, delinquency and modification data for the financial assets, substitutions and removal of financial assets, servicer advances, as well as losses that were allocated to such tranche and the remaining balance of financial assets
      supporting such tranche, if applicable, and the percentage of each tranche in relation to the securitization as a whole; and

   

  (iv)                  In connection with the issuance of the obligations, the nature and amount of compensation paid to the originator, sponsor, rating agency or third-party advisor, any mortgage or other broker, and the servicer(s), and the extent to which
      any risk of loss on the underlying assets is retained by any of them for such securitization shall be disclosed. The issuing entity shall provide to investors while any obligations are outstanding any changes to such information and the amount and
      nature of payments of any deferred compensation or similar arrangements to any of the parties.

   

  (c)   [Reserved].

   

  (d)   The obligations shall not be predominantly sold to an affiliate (other than a wholly-owned subsidiary consolidated for accounting and capital
      purposes with the sponsor) or an affiliated broker-dealer who purchases such obligations with a view to promptly reselling such obligations to persons or entities that are neither affiliates (other than wholly-owned subsidiaries of the sponsor
      consolidated for accounting and capital purposes with the sponsor) nor insiders of the sponsor in the ordinary course of such broker-dealer’s business pursuant to an underwriting or similar agreement entered into in the ordinary course of business; provided that (i) at the time the obligations are sold to the affiliated broker-dealer, such broker-dealer sells not less than 51% of the principal
      amount of the obligations to persons and entities that are not affiliates (other than wholly-owned subsidiaries of the sponsor consolidated for accounting and capital purposes with the sponsor) or insiders of the sponsor; (ii) at all times after such
      obligations are sold to the affiliated broker-dealer, such broker-dealer holds the unsold portion of the obligations with the intent to sell such unsold portion to persons or entities that are not affiliates (other than wholly-owned subsidiaries of
      the sponsor consolidated for accounting and capital purposes with the sponsor) or insiders of the sponsor and (iii) the other requirements of the FDIC Rule, including, without limitation, the requirements of Sections 360.6(c)(3) and (4) of the FDIC
      Rule, are satisfied.

   

  (e)   The sponsor shall separately identify in its financial asset databases the financial assets transferred into any securitization and shall
      maintain an electronic or paper copy of the closing documents for such securitization in a readily accessible form, and a current list of all of its outstanding securitizations and issuers, and the most recent Form 10-K, if applicable, or other
      periodic financial report for each securitization and issuer. The sponsor shall make these records readily available for review by the FDIC promptly upon written request.

   

  
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  (f) To the extent serving as servicer, custodian or paying agent for the securitization, the sponsor shall not commingle amounts received with
      respect to the financial assets with its own assets except for the time, not to exceed two (2) Business Days, necessary to clear any payments received.

   

  SECTION 12.03.        Performance. 

      The Issuer agrees to perform the obligations set forth in Section 12.02, except to the extent any such obligation is specifically imposed exclusively upon the servicer or the sponsor, and to the extent the performance of such obligations is necessary
      to facilitate compliance with this Article XII by all FDIC Rule Parties.

   

  SECTION 12.04.        Effect

      of Section 941 Rules.  Section 12.02(c) hereof shall not be construed to require the sponsor to retain any greater economic interest in the credit risk of the financial assets than is required to comply with the FDIC Rule and other applicable law.
      Accordingly, upon the effective date of regulations promulgated under Section 15G of the Securities Exchange Act, 15 U.S.C. 78a et seq., added
      by Section 941(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (such regulations, the “Section 941 Rules” and such date, the “Section 941 Effective Date”) and thereafter, the sponsor shall have the option to adjust the amount of
      credit risk that it retains for purposes of the FDIC Rule, or the terms under which such credit risk is retained for purposes of the FDIC Rule, the method by which such credit risk is retained or the restrictions applicable to the credit risk
      retained for purposes of the FDIC Rule, to the greatest extent elected by the sponsor, so long as the sponsor’s retention shall be in compliance with the Section 941 Rules.  Within a reasonable time after the sponsor has so adjusted the amount or
      terms of the credit risk it retains, the sponsor shall give notice thereof to the Noteholders and the Certificateholders, and each of the Indenture Trustee and the FDIC Rule Parties is authorized and entitled to amend Section 12.02(c), in accordance
      with and to the extent the Issuer determines necessary or appropriate, to reflect the requirements of the Section 941 Rules.

   

  SECTION 12.05.        Actions

      Upon Repudiation.

   

  (a) In the event that the sponsor becomes the subject of an insolvency proceeding and the FDIC, as receiver or conservator for the sponsor,
      exercises its right of repudiation as contemplated by paragraph (d)(4)(ii) of the FDIC Rule, the Servicer shall ascertain whether the FDIC in such capacity will pay damages as provided in such paragraph (d)(4)(ii). Upon making such determination, the
      Servicer shall promptly, and in any event no more than one (1) Business Day thereafter (or, if the Servicer fails to act, the Noteholders representing not less than a majority of the Outstanding Amount of the Notes or the Certificateholders
      representing a majority of the Certificate Percentage Interests may), notify the Indenture Trustee and the Owner Trustee.

   

  (b) Upon receipt of the notice specified in Section 12.05(a) indicating that a payment will be made, the Indenture Trustee shall determine the date
      (the “applicable distribution date”) for making a distribution to Noteholders and, if applicable, Certificateholders of such damages, which date shall be the earlier of (i) the next Payment Date on which such damages could be distributed and (ii) the
      earliest practicable date by which the Indenture Trustee could declare a special distribution date, in each case subject to all applicable provisions of this Indenture, applicable law and the procedures of any applicable Clearing Agency.

   

  
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  (c)   When the applicable distribution date is determined, the Indenture Trustee shall cause the Servicer to promptly compute the amount of
      interest to be paid on each Class of Notes on the applicable distribution date, which interest shall be the amount accruing up to the applicable distribution date and which (unless such applicable distribution date is a Payment Date) shall be
      computed by pro rating the amount that would otherwise be payable on the next succeeding Payment Date following the applicable distribution date on the basis of (x) the number (in the case of Notes other than the Class A-1 Notes, not to exceed 30) of
      days elapsed from and including the preceding Payment Date to such applicable distribution date divided by (y) 30.

   

  (d)   If the applicable distribution date is a special distribution date, the Indenture Trustee shall (i) declare such special distribution date
      (the record date for which shall be the close of business on the day immediately preceding such special distribution date), (ii) declare a special distribution to Noteholders and (iii) deliver notice to the Noteholders and the Owner Trustee of such
      special distribution date and the amount to be distributed on such date.

   

  (e)   Following payment by the FDIC of damages as provided in paragraph (d)(4)(ii) of the FDIC Rule, the Indenture Trustee shall cause the amount
      of such damages to be deposited in the Note Distribution Account.  If, as of the applicable distribution date, (x) the maturity of the Notes has been accelerated pursuant to Section 5.02, such damages shall be distributed on such distribution date in
      the order and priority set forth in clauses THIRD, FOURTH and FIFTH of Section 5.04(b)(i) or (y) the maturity of the Notes has not been accelerated pursuant to Section 5.02, such damages shall be distributed on such distribution date in accordance
      with the following order of priority:

   

  (i)                first, to the Holders of the Notes, ratably, interest on the Notes in the amount computed by the Servicer pursuant to Section
      12.05(c); provided that if there are not sufficient funds available to pay the entire amount of the accrued and unpaid interest on the Notes, the amounts available shall be applied to the payment of such interest on the Notes on a pro rata basis
      based upon the amount of interest due on each Class of Notes;

   

  (ii)              second, to the Holders of the applicable Notes in the order and priority set forth in Section 8.02(e)(i)-(iv), in an amount equal
      to the FDIC Principal Amount for such distribution date;

   

  (iii)             third, to the Reserve Account, the amount, if any, necessary to cause the amount on deposit in the Reserve Account to equal the
      Reserve Account Required Amount (calculated as if such distribution date is a Payment Date); and

   

  (iv)             fourth, any remaining amounts, to the Certificate Distribution Account, for distribution to the Certificateholders.

   

  (f) Notwithstanding anything in this Indenture or the other Basic Documents to the contrary, if any applicable distribution date is not a Payment
      Date, for purposes of calculating (i) the First Priority Principal Distribution Amount and the Regular Principal

   

  
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  Distribution Amount for the Payment Date immediately following the applicable distribution date, the phrase “preceding Payment Date” shall be
      deemed to refer to such applicable distribution date, (ii) the Servicing Fee for the Payment Date immediately following the applicable distribution date, such fee shall be adjusted, as applicable, for any period of time in the related Collection
      Period in respect of which the Servicer was not servicing any related Receivables on behalf of the Issuer, and (iii) interest payable on the Notes pursuant to Section 5.06(b) of the Sale and Servicing Agreement for the Payment Date immediately
      following the applicable distribution date, the phrase “preceding Payment Date” shall be deemed to refer to such applicable distribution date and the phrase “prior Payment Dates” shall be deemed to include such applicable distribution date.

   

  SECTION 12.06.        Notice.

   

  (a) In the event that BMW Bank becomes the subject of an insolvency proceeding and the FDIC, as receiver or conservator, provides a written notice
      of repudiation as contemplated by paragraph (d)(4)(ii) of the FDIC Rule, the party receiving such notice shall promptly deliver such notice to each of the FDIC Rule Parties, the Indenture Trustee and the Owner Trustee.

   

  (b)   If the FDIC (i) is appointed as a conservator or receiver of BMW Bank and (ii) is in default due to its failure to pay principal or interest
      when due following the expiration of any cure period hereunder or under the other Basic Documents, the Indenture Trustee at the direction of the Noteholders representing not less than a majority of the Outstanding Amount of the Notes, the Servicer or
      the Certificateholders representing not less than a majority of the Certificate Percentage Interests shall be entitled to deliver written notice to the FDIC requesting the exercise of contractual rights hereunder and under the other Basic Documents.
      Upon delivery of such notice, the Indenture Trustee may exercise any contractual rights it may have in accordance with the Basic Documents and the FDIC Rule. The Indenture Trustee shall, at the written direction of the Noteholders representing not
      less than a majority of the Outstanding Amount of the Notes, or the Owner Trustee shall, at the written direction of the Certificateholders representing not less than a majority of the Certificate Percentage Interests, exercise such contractual
      rights.

   

  SECTION 12.07.        Reservation

      of Rights.  Neither the inclusion of this Article XII in this Indenture nor the compliance by any Person with, or the acknowledgment by any Person of, this Article’s provisions constitutes an agreement or acknowledgment by any Person that, in the
      case of an insolvency proceeding with respect to BMW Bank, a receiver or conservator will have any rights with respect to the Trust Estate.

   

  ARTICLE XIII.

      

      ASSET REPRESENTATIONS REVIEW

   

  SECTION 13.01.        Noteholder

      and Note Owner Requests for Vote on Asset Representations Review.  If the Indenture Trustee receives a notice from the Servicer pursuant to Section 11.01 of the Sale and Servicing Agreement regarding the occurrence of a Delinquency Trigger, then the
      Indenture Trustee shall promptly provide directions to the Administrator

   

  
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  regarding the method by which Noteholders and Note Owners may contact the Indenture Trustee in order to request a vote whether to cause the ARR
      Receivables to be reviewed by the Asset Representations Reviewer pursuant to the terms of the Asset Representations Review Agreement.  The Indenture Trustee shall promptly notify the Servicer and the Administrator upon the receipt of any request by
      Noteholders and Note Owners regarding a vote on whether to cause the ARR Receivables to be reviewed by the Asset Representations Reviewer pursuant to the terms of the Asset Representations Review Agreement.  Noteholders and Note Owners may request a
      vote not later than ninety (90) days after the date on which the Form 10-D describing the occurrence of such Delinquency Trigger shall have been filed by the Administrator pursuant to the terms of Section 1.1(AA) of the Administration Agreement;
      provided that, if the requesting party is a Note Owner and not a Noteholder, the Note Owner must include with its request a written certification that the requesting party is a Note Owner, together with one of the following additional forms of
      documentation of the requesting party’s status as a Note Owner: (A) a trade confirmation; (B) an account statement; (C) a letter from a broker-dealer that is acceptable to the Indenture Trustee or Administrator, as applicable; or (D) any other form
      of documentation that is acceptable to the Indenture Trustee or Administrator, as applicable (any such Note Owner who provides the required certification and documentation, a “Verified Note Owner”).  The Indenture Trustee shall promptly notify the
      Servicer and the Administrator if Noteholders and Verified Note Owners representing at least 5% of the outstanding aggregate principal amount of all Outstanding Notes (such requesting Noteholders and Verified Note Owners, collectively, the
      “Requesting Noteholders”) properly and timely request a vote to cause the ARR Receivables to be reviewed by the Asset Representations Reviewer pursuant to the terms of the Asset Representations Review Agreement.

   

  SECTION 13.02.        Noteholder

      and Note Owner Vote on Asset Representations Review.  Beginning promptly after receipt from the Administrator of a copy of a notice sent to Noteholders and Note Owners pursuant to Section 23 of the Administration Agreement, the Indenture Trustee
      shall cause the initiation of a review of ARR Receivables to be submitted to a yes or no vote of the Noteholders (with respect to Book-Entry Notes, as directed by the related Note Owners via the applicable Clearing Agency pursuant to its procedures
      for such votes) of record as of the most recent Record Date.  If, by no earlier than the deadline specified by the Administrator pursuant to Section 23 of the Administration Agreement, (i) votes have been cast by Noteholders holding at least 5% of
      the aggregate outstanding principal amount of all Outstanding Notes) and (ii) affirmative votes in favor of an Asset Representations Review have been cast by Noteholders representing at least a majority of the aggregate outstanding principal amount
      of all Outstanding Notes held by voting Noteholders, the Indenture Trustee will promptly notify the Servicer, the Seller[s], the Administrator and the Asset Representations Reviewer to the notice addresses set forth in Section 9.02 of the Asset
      Representations Review Agreement that the requisite Noteholders have directed the Asset Representations Reviewer to perform a review of the ARR Receivables for the purpose of determining whether such ARR Receivables were in compliance with the
      representations and warranties made by the Seller[s] pursuant to Section 3.02(b) of the applicable Receivables Purchase Agreement.

   

  SECTION 13.03.        Evaluation

      of Review Report.

   

  (a) If a Noteholder or a Verified Note Owner notifies the Indenture Trustee in writing that it considers any non-compliance of any representation
      with respect to any ARR

   

  
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  Receivable to be a breach of the applicable Basic Document, or requests in writing that any Receivable (including any ARR Receivable) be
      repurchased (including, for the avoidance of doubt, as described in Section 11.02 of the Sale and Servicing Agreement), the Indenture Trustee will promptly forward that written notice to the related Seller, as applicable.

   

  (b) The Indenture Trustee shall have no obligation to pursue or otherwise be involved in resolving any repurchase request, including any such
      request that is the subject of a dispute resolution proceeding, unless it is directed to do so by Noteholders representing not less than a majority of the Outstanding Amount and such Noteholders shall have offered to the Indenture Trustee security or
      indemnity satisfactory to it against the reasonable costs, expenses, disbursements, advances and liabilities that might be incurred by it, its agents and its counsel in compliance with such direction. For the avoidance of doubt, if the Indenture
      Trustee does not agree to pursue or otherwise be involved in resolving any reallocation request, the related Noteholders may independently pursue dispute resolution in respect of such reallocation request in accordance with Section 11.02 of the Sale
      and Servicing Agreement.

   

  (c) The related Seller will have the sole ability to determine if there was non-compliance with any representation or warranty made by it in
      Section 3.02(b) of the applicable Receivables Purchase Agreement, respectively, that constitutes a breach that materially and adversely affects the interests of the Issuer, the Indenture Trustee, the Owner Trustee, the Certificateholders or the
      Noteholders in any Receivable, and whether to repurchase the related ARR Receivable from the Issuer in accordance with the terms of Section 6.02 of the related Receivables Purchase Agreement.

   

  SECTION 13.04.        Dispute

      Resolution.  Any Noteholder or Note Owner may pursue dispute resolution procedures as set forth in Section 11.02 of the Sale and Servicing Agreement.  With respect to any dispute resolution, if so directed by the Servicer, the Indenture Trustee will
      notify the Requesting Party of the date when the 180-day period related to such dispute resolution proceeding ends without resolution by the appropriate party and that the Requesting Party has thirty (30) days to notify the related Seller and the
      Servicer if it wishes to pursue dispute resolution.  For the avoidance of doubt, the Indenture Trustee shall be under no obligation to monitor repurchase activity or to independently determine whether a repurchase request remains unresolved at the
      end of the related 180-day period.

   

  

  

   

  * * * * *

   

  

  

   

  

  

   

  

  

   

  

  

   

  

  

   

  
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  IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Indenture to be duly executed by their respective
      officers, thereunto duly authorized and duly attested, all as of the day and year first above written.

   

  	 	
          BMW VEHICLE OWNER TRUST 20[__]-[__]

        
	 	 
	 	
          By:

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

        
	 	 	 
	 	 	 
	 	
          By:

        	
                                                                               

        
	 	 	
          Name:

        
	 	 	
          Title:

        
	 	 	 
	 	 	 
	 	
          [____________________],

        
	 	
          not in its individual capacity but solely as Indenture Trustee

        
	 	 
	 	 
	 	
          By:

        	
                                                                                

        
	 	 	
          Name:

        
	 	 	
          Title:

        

  

  

   

   

  

  
    
      

  

  	
          STATE OF DELAWARE

        	
          }

        	 
	 	
          }

        	
          ss.:

        
	
          COUNTY OF NEW CASTLE

        	
          }

        	 

  

  

  BEFORE ME, the undersigned authority, a Notary Public in and for said county and state, on this day personally appeared
      ________________, a _____________ of [___________________________], not in its individual capacity but solely as Owner Trustee of BMW Vehicle Owner Trust 20[__]-[__], a Delaware statutory trust (the “Trust”) known to me to be the person and officer
      whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said Trust, and that s/he executed the same as the act of said Trust for the purpose and consideration therein expressed, and in the
      capacities therein stated.

   

  GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ___ day of [__________], 20[__].

   

  _____________________________________

      Notary Public in and for the State of Delaware

   

  My commission expires:

  

  

  

  

  
    
      

  

  	
          STATE OF ______________

        	
          }

        	 
	 	
          }

        	
          ss.:

        
	
          COUNTY OF ______________

        	
          }

        	 

  

  

  BEFORE ME, the undersigned authority, a Notary Public in and for said county and state, on this day personally appeared
      _____________, known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of [____________________], [____________________], and that s/he executed the same as the
      act of said corporation for the purpose and consideration therein stated.

   

  GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ___ day of [__________], 20[__].

   

  _______________________________________

      Notary Public in and for the State of ______________

   

  My commission expires:

  

  

  
    
      

  

  
  SCHEDULE A

      

      Schedule of Receivables

      

      [Delivered to the Owner Trustee on the Closing Date.]

   

    

  

    

    

    

    

    

      

      

      

      

        

        

        

        

          

          

        

        

      

      

    

    

    

   

  
    Sch. A-1

    
      

  

  
  SCHEDULE B

   

  PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS

   

  In addition to the representations, warranties and covenants contained in the Indenture, the Issuer hereby represents, warrants
      and covenants to the Indenture Trustee as follows on the Closing Date:

   

  1.        The Indenture creates a valid
      and continuing security interest (as defined in the applicable UCC) in the Receivables and the other Collateral in favor of the Indenture Trustee, which security interest is prior to all other Liens, and is enforceable as such against creditors of
      and purchasers from the Issuer.

   

  2.         The Receivables constitute
      “chattel paper” (including “tangible chattel paper” and “electronic chattel paper”) within the meaning of the applicable UCC.

   

  3.         Each Trust Account constitutes
      either a “deposit account” or a “securities account” within the meaning of the UCC.

   

  4.         The Issuer owns and has good and marketable title to each Receivable free and clear of all Liens and rights of
      others (other than pursuant to the Basic Documents).

   

  5.         The Issuer has caused or will have caused, within ten (10) days after the Closing Date, the filing of all
      appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Receivables granted to the Indenture Trustee hereunder.  All financing statements
      referred to in this paragraph 5 contain a statement that: “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Secured Party.”

   

  6.        With respect to Receivables that constitute tangible chattel paper, such tangible chattel paper is in the possession
      of the Servicer, and the Servicer (in its capacity as custodian) is holding such tangible chattel paper solely on behalf and for the benefit of the Issuer and the Indenture Trustee, as pledgee of the Issuer.  With respect to Receivables that
      constitute electronic chattel paper, the Servicer has “control” of such electronic chattel paper within the meaning of Section 9-105 of the applicable UCC and

      the Servicer (in its capacity as custodian) is maintaining control of such electronic chattel paper solely on behalf and for the benefit of the Issuer and the Indenture Trustee, as pledgee of the Issuer.  No person other than the Servicer has
      “control” of any Receivable that is evidenced by electronic chattel paper.

   

  7.        The Servicer, in its capacity as custodian, has in its possession (i) the original copy of each Receivable that
      constitutes tangible chattel paper, (ii) the “authoritative copy” of each Receivable that constitutes electronic chattel paper and (iii) all financing statements referred to in paragraph 5.  With respect to any Receivable constituting electronic
      chattel paper, there is only one “authoritative copy” of the Receivable and with respect to any Receivable constituting tangible chattel paper, there is no more than one original executed copy of such Receivable.

   

  
    Sch. B-1

    
      

  

  

  

  8.        Neither the Issuer nor a custodian or vaulting agent thereof holding any Receivable that is electronic chattel paper
      has communicated an “authoritative copy” (as such term is used in Section 9-105 of the UCC) of any loan agreement that constitutes or evidences such Receivable to any Person other than the Servicer.

   

  9.        With respect to the Trust Accounts that constitute deposit accounts, either:

   

  (i) the Issuer has delivered to the Indenture Trustee a fully executed agreement pursuant to which the bank maintaining the deposit accounts has
      agreed to comply with all instructions originated by the Indenture Trustee directing disposition of the funds in such Trust Accounts without further consent by the Issuer; or

   

  (ii) the Issuer has taken all steps necessary to cause the Indenture Trustee to become the account holder of such Trust Accounts.

   

  10.        With respect to the Trust Accounts that constitute securities accounts or securities entitlements, either:

   

  (i) the Issuer has delivered to the Indenture Trustee a fully executed agreement (1) that provides that the agreement is governed solely by the law
      of New York and that the law of the State of New York shall govern all issues specified in Article 2(1) of the Hague Securities Convention, (2) pursuant to which the securities intermediary has agreed to comply with all instructions originated by the
      Indenture Trustee relating to such Trust Accounts without further consent by the Issuer, and (3) with a securities intermediary that has and has had at all relevant times one or more offices (within the meaning of the Hague Securities Convention) in
      the United States of America which satisfies the criteria provided in Article 4(1)(a) or (b) of the Hague Securities Convention; or

   

  (ii) the Issuer has taken all steps necessary to cause the securities intermediary to identify in its records the Indenture Trustee as the Person
      having a security entitlement against the securities intermediary in each of such Trust Accounts so long as (1) the agreement governing the securities account satisfies the requirements of sub-clause (1) of the preceding clause (i), and (2) the
      securities intermediary satisfies the requirements of sub-clause (3) of the preceding clause (i).

   

  11.        Other than the security interest granted to the Indenture Trustee under the Indenture, the Issuer has not pledged,
      assigned, sold or granted a security interest in, or otherwise conveyed any of the Receivables.

   

  12.        The Issuer has not authorized the filing of, and is not aware of any financing statements against the Issuer that
      include a description of collateral covering the Receivables other than any financing statement (i) relating to the conveyance of the Receivables by the Sellers to the Depositor under the Receivables Purchase Agreements, (ii) relating to the
      conveyance of the Receivables by the Depositor to the Issuer under the Sale and Servicing Agreement, (iii) relating to the security interest granted to the Indenture Trustee under the

   

  
    Sch. B-2

    
      

  

  

  

  Indenture or (iv) that has been terminated.  The Issuer is not aware of any material judgment, ERISA or tax lien filings against the Issuer.

   

  13.        The tangible chattel paper or electronic chattel paper that constitute or evidence the Receivables do not have any
      marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Depositor, the Issuer or the Indenture Trustee.

   

  14.        No Trust Account that constitutes a securities account or securities entitlement is in the name of any Person other
      than the Issuer or the Indenture Trustee. The Issuer has not consented to the securities intermediary of any such Trust Account to comply with entitlement orders of any Person other than the Indenture Trustee.

   

  15.        No Trust Account that constitutes a deposit account is in the name of any Person other than the Issuer or the
      Indenture Trustee. The Issuer has not consented to the bank maintaining such Trust Account to comply with instructions of any Person other than the Indenture Trustee.

   

  16.        Notwithstanding any other provision of the Indenture or any other Basic Document, the perfection representations,
      warranties and covenants contained in this Schedule B shall be continuing, and remain in full force and effect until such time as all obligations under the
      Indenture have been finally and fully paid and performed.

   

  17.        The parties to this Indenture shall provide the Administrator with prompt written notice of any material breach of
      the perfection representations, warranties and covenants contained in this Schedule B, and shall not, without satisfying the Rating Agency Condition, waive a
      breach of any of such perfection representations, warranties or covenants.

   

  18.        The Issuer covenants that, in order to evidence the interests of the Indenture Trustee under this Indenture, the
      Issuer shall take such action, or execute and deliver such instruments as may be necessary or advisable to maintain and perfect, as a first priority interest, the Indenture Trustee’s security interest in the Receivables. The Issuer shall, from time
      to time and within the time limits established by law, prepare and file, all financing statements, amendments, continuations, initial financing statements in lieu of a continuation statement, terminations, partial terminations, releases or partial
      releases, or any other filings necessary or advisable to continue, maintain and perfect the Indenture Trustee’s security interest in the Receivables as a first-priority interest.

   

  

  

   

  

  

   

  
    Sch. B-3

    
      

  

  
  EXHIBIT A-1

   

  [FORM OF CLASS A-1 NOTE]

   

  UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
      NEW YORK, NEW YORK, 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 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 PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF
      THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

   

  BY ACCEPTING THIS NOTE, EACH NOTEHOLDER AGREES TO PROVIDE THE ISSUER, THE INDENTURE TRUSTEE AND THE NOTE PAYING AGENT, UPON ITS
      REQUEST, WITH THE APPLICABLE FEDERAL INCOME TAX CERTIFICATIONS (GENERALLY, AN INTERNAL REVENUE SERVICE FORM W-9 (OR SUCCESSOR APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS A “UNITED STATES PERSON” WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE
      INTERNAL REVENUE CODE, OR AN APPROPRIATE INTERNAL REVENUE SERVICE FORM W-8 (OR SUCCESSOR APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS NOT A “UNITED STATES PERSON” WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE INTERNAL REVENUE CODE).  THE
      FAILURE TO PROVIDE THE ISSUER, THE INDENTURE TRUSTEE AND THE NOTE PAYING AGENT WITH THE APPLICABLE FEDERAL INCOME TAX CERTIFICATIONS MAY RESULT IN THE IMPOSITION OF FEDERAL WITHHOLDING UPON PAYMENTS TO THE HOLDER IN RESPECT OF THIS NOTE.

   

  

  

   

  
    A-1-1

    
      

  

  

  

  	
          REGISTERED

        	
          $[_________] (1)

        	
          CUSIP NO. [_________]

        

  No.  R-1

  BMW VEHICLE OWNER TRUST 20[__]-[__]

   

  [___]% ASSET BACKED NOTE, CLASS A-1

   

  BMW VEHICLE OWNER TRUST 20[__]-[__], a statutory trust organized and existing under the laws of the State of Delaware (herein
      referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of [_________], payable on each Payment Date in an amount equal to the aggregate amount, if any, payable from the
      Note Distribution Account in respect of principal on the Class A-1 Notes pursuant to Section 3.01 of the Indenture dated as of [__________], 20[__] (the “Indenture”), between the Issuer and [____________________], [____________________], as Indenture
      Trustee (the “Indenture Trustee”); provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the earlier of [_________] (the “Class A-1 Final Scheduled Payment Date”) and the Redemption Date, if any, pursuant
      to Section 10.01 of the Indenture. Capitalized terms used but not defined herein are defined in or pursuant to the Indenture, which also contains rules as to construction that shall be applicable herein.

   

  The Issuer will pay interest on this Note at the rate per annum set forth above, on each Payment Date until the principal of
      this Note is paid or made available for payment, on the principal amount of this Note outstanding on the preceding Payment Date after giving effect to all payments of principal made on the preceding Payment Date, (or on the initial principal balance
      of this Note from and including the Closing Date in the case of the first Payment Date), subject to certain limitations contained in the last sentence of Section 3.01 of the Indenture.  Interest on this Note will accrue for each Payment Date from and
      including the prior Payment Date (or, in the case of the first Payment Date, from the Closing Date) to but excluding such Payment Date.  Interest will be computed on the basis of the actual number of days elapsed in the related Interest Period and a
      360-day year.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

   

  The principal of and interest on this 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.  All payments made by the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this
      Note.

   

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

   

  Unless the certificate of authentication hereon has been executed by the Indenture Trustee whose name appears below by manual
      signature, this Note shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose.

   

  ________________

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

  
    A-1-2

    
      

  

  IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer, as
      of the date set forth below.

   

  Date: BMW VEHICLE OWNER TRUST 20[__]-[__]

  

  

  	 	
          By:

        	
          [__________], not in its individual capacity but solely as Owner Trustee under the Trust Agreement

        
	 	 	 	 
	 	 	
          By:

        	
          _____________________________

        
	 	 	 	
          Authorized Signatory

        

  

  

  TRUSTEE’S CERTIFICATE OF AUTHENTICATION

   

  This is one of the Notes designated above and referred to in the within-mentioned Indenture.

   

  	
          Date:

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

        
	 	 	 
	 	
          By:

        	
          _______________________________

        
	 	 	
          Authorized Officer

        

  

  

  

  

   

  
    A-1-3

    
      

  

  REVERSE OF CLASS A-1 NOTE

   

  This Note is one of a duly authorized issue of Notes of the Issuer, designated as its [___]% Asset Backed Notes, Class A-1
      (herein called the “Class A-1 Notes”), all issued under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the
      Indenture Trustee and the Holders of the Notes.  The Class A-1 Notes are subject to all terms of the Indenture.

   

  The Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3 Notes, the Class A-4 Notes and the Class B Notes
      (collectively, the “Notes”) are and will be secured by the collateral pledged as security therefor as provided in the Indenture.

   

  Principal of the Class A-1 Notes will be payable on each Payment Date in an amount described on the face hereof.  “Payment
      Date” means the [__]th day of each month, or, if any such date is not a Business Day, the next succeeding Business Day, commencing in [_________] 20[__].

   

  As described above, the entire unpaid principal amount of this Note shall be due and payable on the earlier of the Class A-1
      Final Scheduled Payment Date and the Redemption Date, if any, pursuant to Section 10.01 of the Indenture.  Notwithstanding the foregoing, if an Event of Default occurs, the Indenture Trustee may, or at the direction of Holders of Notes representing
      not less than a majority of the Outstanding Amount of the Notes shall, declare the Notes to be immediately due and payable in the manner provided in Section 5.02 of the Indenture.  All principal payments on the Class A-1 Notes shall be made pro rata
      to the Class A-1 Noteholders entitled thereto.

   

  Payments of interest on this Note due and payable on each Payment Date, together with the installment of principal, if any, to
      the extent not in full payment of this Note, shall be made by wire transfer as directed by such Holder provided such Holder has provided written wiring instructions to the Indenture Trustee and otherwise by check mailed to the Person whose name
      appears as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of the
      Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee.  Such checks shall be mailed to the Person entitled thereto at the
      address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Note be submitted for notation of payment.  Any reduction in the principal amount of this Note (or any one or more Predecessor
      Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon.  If
      funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
      the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed or transmitted by facsimile prior to such Payment Date, and the amount then due and payable shall be payable only upon presentation and

   

  
    A-1-4

    
      

  

  

  

  surrender of this Note at the applicable Corporate Trust Office of the Indenture Trustee or such other address as is selected by the Indenture
      Trustee pursuant to the terms of the Indenture.

   

  The Issuer shall pay interest on overdue installments of interest at the Class A-1 Rate to the extent lawful.

   

  As provided in the Indenture, the Notes may be redeemed in whole, but not in part, at the option of the Servicer, on any
      Payment Date, following the last day of the Collection Period as of which the Pool Balance is equal to or less than [__]% of the Initial Pool Balance.

   

  As provided in the Indenture and subject to the limitations set forth therein and on the face hereof, the transfer of this Note
      may be registered on the Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
      satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar,
      which requirements include membership or participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for,
      STAMP, all in accordance with the Securities Exchange Act of 1934, as amended, and thereupon one or more new Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No
      service charge will be charged for any registration of transfer or exchange of this Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such
      registration of transfer or exchange subject to certain exceptions set forth in the Indenture.

   

  Each Noteholder or Note Owner, by acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note,
      covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
      connection therewith, against (i) the Sellers, the Servicer, the Indenture Trustee or the Owner Trustee in their respective individual capacities, (ii) any owner of a beneficial interest in the Issuer, including the Sellers, or (iii) any partner,
      owner, beneficiary, agent, officer, director or employee of the Sellers, the Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the Sellers, the Servicer, the Owner
      Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall
      be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

   

  Each Noteholder or Note Owner, by acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note,
      covenants and agrees by accepting the benefits of the Indenture that such Noteholder or Note Owner will not, at any time, petition or otherwise invoke or cause the Issuer or the Depositor to invoke the process of any court or government authority for
      the purpose of commencing or sustaining a case against the Issuer or the Depositor

   

  
    A-1-5

    
      

  

  

  

  under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator
      or other similar official of the Issuer or the Depositor or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Issuer or the Depositor.

   

  The Issuer has entered into the Indenture and this Note is issued with the intention that, for purposes of federal and state
      income tax, franchise tax and any other tax measured in whole or in part by income, the Notes held by parties unrelated to the holders of the Certificates will qualify as indebtedness secured by the Trust Estate.  Each Noteholder, by acceptance of
      this Note (and each Note Owner by acceptance of a beneficial interest in this Note), agrees to treat this Note for such purposes as indebtedness.

   

  This Note, or any interest herein, may not be transferred to an “employee benefit plan” within the meaning of Section 3(3) of
      ERISA, a “plan” described in Section 4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by reason of an employee benefit plan’s or other plan’s investment in such entity, unless such transferee represents,
      warrants and covenants that its purchase and holding of such note will not result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code because it will satisfy the requirements of an applicable prohibited
      transaction exemption and will not cause a non-exempt violation of any applicable law that is substantially similar to ERISA or Section 4975 of the Code.  By its acquisition of a Note in book-entry form or any interest therein, each transferee will
      be deemed to have represented, warranted and covenanted that it satisfies the foregoing requirements and the Indenture Trustee may relay conclusively on the same for purposes hereof.

   

  Prior to the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee and any agent of the
      Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note
      be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by notice to the contrary.

   

  The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights
      and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes representing at least a majority of the Outstanding Amount of all Notes at the time
      Outstanding.  The Indenture also contains provisions permitting Holders of Notes representing specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain
      provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder and upon
      all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note.  The Indenture also permits the
      Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder.

   

  
    A-1-6

    
      

  

  

  

  The term “Issuer” as used in this Note includes any successor to the Issuer under the Indenture.

   

  This Note is issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

   

  This Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, without
      reference to its conflict of law provisions other than Sections 5-1401 and 5-1402 of the New York General Obligations Law, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such
      laws.

   

  No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of
      the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency herein prescribed.

   

  Each Noteholder, by acceptance of this Note or a beneficial interest herein, acknowledges and agrees that the purpose of
      Article XII of the Indenture is to facilitate compliance by the FDIC Rule Parties with the provisions of the FDIC Rule and that the interpretations of the requirements of the FDIC Rule may change over time, whether due to interpretive guidance
      provided by the FDIC or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees that the provisions set forth in Article XII of the Indenture shall have the effect and meanings that
      are appropriate under the FDIC Rule as such effect and meanings change over time on the basis of evolving interpretations of the FDIC Rule.

   

  Anything herein to the contrary notwithstanding, except as expressly provided in the Basic Documents, none of [__________], in
      its individual capacity, [____________________], in its individual capacity, any owner of a beneficial interest in the Issuer, the Sellers, the Servicer, or any of their respective partners, beneficiaries, agents, officers, directors, employees or
      successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on this Note or performance of, or omission to perform, any of the covenants, obligations or indemnifications
      contained in the Indenture.  The Holder of this Note by its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of the
      foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings
      contained in the Indenture or in this Note.

   

  
    A-1-7

    
      

  

  ASSIGNMENT

   

  Social Security or taxpayer I.D.  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: */

   

  Signature Guaranteed:

   

  */

   

  _________________

  
    
      	*/	
              NOTICE: 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.  Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in
                  STAMP or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

            

    

  

  
    A-1-8

    
      

  

  
  EXHIBIT A-2

   

  [FORM OF CLASS A-2a NOTE]

   

  UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
      NEW YORK, NEW YORK, 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 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 PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF
      THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

   

  BY ACCEPTING THIS NOTE, EACH NOTEHOLDER AGREES TO PROVIDE THE ISSUER, THE INDENTURE TRUSTEE AND THE NOTE PAYING AGENT, UPON ITS
      REQUEST, WITH THE APPLICABLE FEDERAL INCOME TAX CERTIFICATIONS (GENERALLY, AN INTERNAL REVENUE SERVICE FORM W-9 (OR SUCCESSOR APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS A “UNITED STATES PERSON” WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE
      INTERNAL REVENUE CODE, OR AN APPROPRIATE INTERNAL REVENUE SERVICE FORM W-8 (OR SUCCESSOR APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS NOT A “UNITED STATES PERSON” WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE INTERNAL REVENUE CODE).  THE
      FAILURE TO PROVIDE THE ISSUER, THE INDENTURE TRUSTEE AND THE NOTE PAYING AGENT WITH THE APPLICABLE FEDERAL INCOME TAX CERTIFICATIONS MAY RESULT IN THE IMPOSITION OF FEDERAL WITHHOLDING UPON PAYMENTS TO THE HOLDER IN RESPECT OF THIS NOTE.

   

  

  

   

  
    A-2-1

    
      

  

  

  

  	
          REGISTERED

        	
          $[_________] (1)

        	
          CUSIP NO. [_________]

        

  No.  R-1

  BMW VEHICLE OWNER TRUST 20[__]-[__]

   

  [___]% ASSET BACKED NOTE, CLASS A-2a

   

  BMW VEHICLE OWNER TRUST 20[__]-[__], a statutory trust organized and existing under the laws of the State of Delaware (herein
      referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of [_____________________], payable on each Payment Date in an amount equal to the aggregate amount, if any, payable
      from the Note Distribution Account in respect of principal on the Class A-2a Notes pursuant to Section 3.01 of the Indenture dated as of [__________], 20[__] (the “Indenture”), between the Issuer and [____________________], [____________________], as
      Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the earlier of [_________] (the “Class A-2a Final Scheduled Payment Date”) and the Redemption Date, if
      any, pursuant to Section 10.01 of the Indenture. Except as otherwise provided in the Indenture, no payments of principal of the Class A-2a Notes shall be made until the Class A-1 Notes have been paid in full.  Capitalized terms used but not defined
      herein are defined in or pursuant to the Indenture, which also contains rules as to construction that shall be applicable herein.

   

  The Issuer will pay interest on this Note at the rate per annum set forth above, on each Payment Date until the principal of
      this Note is paid or made available for payment, on the principal amount of this Note outstanding on the preceding Payment Date after giving effect to all payments of principal made on the preceding Payment Date (or, on the initial principal balance
      of this Note from and including the Closing Date in the case of the first Payment Date), subject to certain limitations contained in the last sentence of Section 3.01 of the Indenture.  Interest on this Note will accrue for each Payment Date from and
      including the [__]th day of the calendar month preceding the month of such Payment Date (or, in the case of the first Payment Date, from the Closing Date) to but excluding the [__]th day of the calendar month of such Payment Date.  Interest will be
      computed on the basis of a 360-day year of twelve 30-day months.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

   

  The principal of and interest on this 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.  All payments made by the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this
      Note.

   

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

   

  _______________

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

  
    A-2-2

    
      

  

  Unless the certificate of authentication hereon has been executed by the Indenture Trustee whose name appears below by manual
      signature, this Note shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose.

   

   

  

   

  

   

  

  

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

  

  
    A-2-3

    
      

  

  IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer, as
      of the date set forth below.

   

  	
          Date:

        	
          BMW VEHICLE OWNER TRUST 20[__]-[__]

        
	 	 	 	 
	 	
          By:

        	
          [__________], not in its individual capacity but solely as Owner Trustee under the Trust Agreement

        
	 	 	 	 
	 	 	 	 
	 	 	
          By:

        	
          _____________________________

        
	 	 	 	
          Authorized Signatory

        

  

  

  TRUSTEE’S CERTIFICATE OF AUTHENTICATION

   

  This is one of the Notes designated above and referred to in the within-mentioned Indenture.

   

  	
          Date:

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

        
	 	 	 
	 	 	 
	 	
          By:

        	
          _______________________________

        
	 	 	
          Authorized Officer

        

  

  

  

  

   

  
    A-2-4

    
      

  

  REVERSE OF CLASS A-2a NOTE

   

  This Note is one of a duly authorized issue of Notes of the Issuer, designated as its [___]% Asset Backed Notes, Class A-2a
      (herein called the “Class A-2a Notes”), all issued under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the
      Indenture Trustee and the Holders of the Notes.  The Class A-2a Notes are subject to all terms of the Indenture.

   

  The Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3 Notes, the Class A-4 Notes and the Class B Notes
      (collectively, the “Notes”) are and will be secured by the collateral pledged as security therefor as provided in the Indenture.

   

  Principal of the Class A-2a Notes will be payable on each Payment Date in an amount described on the face hereof only after the
      Class A-1 Notes are paid in full and have no Outstanding Amount.  “Payment Date” means the [__]th day of each month, or, if any such date is not a Business Day, the next succeeding Business Day, commencing in [_________] 20[__].

   

  As described above, the entire unpaid principal amount of this Note shall be due and payable on the earlier of the Class A-2a
      Final Scheduled Payment Date and the Redemption Date, if any, pursuant to Section 10.01 of the Indenture.  Notwithstanding the foregoing, if an Event of Default occurs, the Indenture Trustee may, or at the direction of the Holders of Notes
      representing not less than a majority of the Outstanding Amount of the Notes shall, declare the Notes to be immediately due and payable in the manner provided in Section 5.02 of the Indenture.  All principal payments on the Class A-2a Notes shall be
      made pro rata to the Class A-2a Noteholders entitled thereto.

   

  Payments of interest on this Note due and payable on each Payment Date, together with the installment of principal, if any, to
      the extent not in full payment of this Note, shall be made by wire transfer as directed by such Holder provided such Holder has provided written wiring instructions to the Indenture Trustee and otherwise by check mailed to the Person whose name
      appears as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of the
      Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee.  Such checks shall be mailed to the Person entitled thereto at the
      address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Note be submitted for notation of payment.  Any reduction in the principal amount of this Note (or any one or more Predecessor
      Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon.  If
      funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
      the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed or transmitted by facsimile prior to such Payment Date, and the amount then due and payable shall be payable only upon presentation and

   

  
    A-2-5

    
      

  

  

  

  surrender of this Note at the applicable Corporate Trust Office of the Indenture Trustee or such other address as is selected by the Indenture
      Trustee pursuant to the terms of the Indenture.

   

  The Issuer shall pay interest on overdue installments of interest at the Class A-2a Rate to the extent lawful.

   

  As provided in the Indenture, the Notes may be redeemed in whole, but not in part, at the option of the Servicer on any Payment
      Date following the last day of the Collection Period as of which the Pool Balance is equal to or less than [__]% of the Initial Pool Balance.

   

  As provided in the Indenture and subject to the limitations set forth therein and on the face hereof, the transfer of this Note
      may be registered on the Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
      satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar,
      which requirements include membership or participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for,
      STAMP, all in accordance with the Securities Exchange Act of 1934, as amended, and thereupon one or more new Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No
      service charge will be charged for any registration of transfer or exchange of this Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such
      registration of transfer or exchange subject to certain exceptions set forth in the Indenture.

   

  Each Noteholder or Note Owner, by acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note,
      covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
      connection therewith, against (i) the Sellers, the Servicer, the Indenture Trustee or the Owner Trustee in their respective individual capacities, (ii) any owner of a beneficial interest in the Issuer, including the Sellers, or (iii) any partner,
      owner, beneficiary, agent, officer, director or employee of the Sellers, the Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the Sellers, the Servicer, the Owner
      Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall
      be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

   

  Each Noteholder or Note Owner, by acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note,
      covenants and agrees by accepting the benefits of the Indenture that such Noteholder or Note Owner will not, at any time, petition or otherwise invoke or cause the Issuer or the Depositor to invoke the process of any court or government authority for
      the purpose of commencing or sustaining a case against the Issuer or the Depositor

   

  
    A-2-6

    
      

  

  

  

  under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator
      or other similar official of the Issuer or the Depositor or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Issuer or the Depositor.

   

  The Issuer has entered into the Indenture and this Note is issued with the intention that, for purposes of federal and state
      income tax, franchise tax and any other tax measured in whole or in part by income, the Notes held by parties unrelated to the holders of the Certificates will qualify as indebtedness secured by the Trust Estate.  Each Noteholder, by acceptance of
      this Note (and each Note Owner by acceptance of a beneficial interest in this Note), agrees to treat this Note for such purposes as indebtedness.

   

  This Note, or any interest herein, may not be transferred to an “employee benefit plan” within the meaning of Section 3(3) of
      ERISA, a “plan” described in Section 4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by reason of an employee benefit plan’s or other plan’s investment in such entity, unless such transferee represents,
      warrants and covenants that its purchase and holding of such note will not result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code because it will satisfy the requirements of an applicable prohibited
      transaction exemption and will not cause a non-exempt violation of any applicable law that is substantially similar to ERISA or Section 4975 of the Code.  By its acquisition of a Note in book-entry form or any interest therein, each transferee will
      be deemed to have represented, warranted and covenanted that it satisfies the foregoing requirements and the Indenture Trustee may relay conclusively on the same for purposes hereof.

   

  Prior to the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee and any agent of the
      Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note
      be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by notice to the contrary.

   

  The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights
      and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes representing at least a majority of the Outstanding Amount of all Notes at the time
      Outstanding.  The Indenture also contains provisions permitting Holders of Notes representing specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain
      provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder and upon
      all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note.  The Indenture also permits the
      Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder.

   

  
    A-2-7

    
      

  

  

  

  The term “Issuer” as used in this Note includes any successor to the Issuer under the Indenture.

   

  This Note is issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

   

  This Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, without
      reference to its conflict of law provisions other than Sections 5-1401 and 5-1402 of the New York General Obligations Law, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such
      laws.

   

  No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of
      the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency herein prescribed.

   

  Each Noteholder, by acceptance of this Note or a beneficial interest herein, acknowledges and agrees that the purpose of
      Article XII of the Indenture is to facilitate compliance by the FDIC Rule Parties with the provisions of the FDIC Rule and that the interpretations of the requirements of the FDIC Rule may change over time, whether due to interpretive guidance
      provided by the FDIC or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees that the provisions set forth in Article XII of the Indenture shall have the effect and meanings that
      are appropriate under the FDIC Rule as such effect and meanings change over time on the basis of evolving interpretations of the FDIC Rule.

   

  Anything herein to the contrary notwithstanding, except as expressly provided in the Basic Documents, none of [__________], in
      its individual capacity, [____________________], in its individual capacity, any owner of a beneficial interest in the Issuer, the Sellers, the Servicer, or any of their respective partners, beneficiaries, agents, officers, directors, employees or
      successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on this Note or performance of, or omission to perform, any of the covenants, obligations or indemnifications
      contained in the Indenture.  The Holder of this Note by its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of the
      foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings
      contained in the Indenture or in this Note.

   

  

  

   

  
    A-2-8

    
      

  

  ASSIGNMENT

   

  Social Security or taxpayer I.D.  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: */

   

  Signature Guaranteed:

   

  */

   

  _________________

  
    
      	*/	
              NOTICE: 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.  Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which  requirements include membership or participation in
                  STAMP or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

            

    

  

  
    A-2-9

    
      

  

  
  EXHIBIT A-3

   

  [FORM OF CLASS A-2b NOTE]

   

  UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
      NEW YORK, NEW YORK, 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 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 PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF
      THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

   

  BY ACCEPTING THIS NOTE, EACH NOTEHOLDER AGREES TO PROVIDE THE ISSUER, THE INDENTURE TRUSTEE AND THE NOTE PAYING AGENT, UPON ITS
      REQUEST, WITH THE APPLICABLE FEDERAL INCOME TAX CERTIFICATIONS (GENERALLY, AN INTERNAL REVENUE SERVICE FORM W-9 (OR SUCCESSOR APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS A “UNITED STATES PERSON” WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE
      INTERNAL REVENUE CODE, OR AN APPROPRIATE INTERNAL REVENUE SERVICE FORM W-8 (OR SUCCESSOR APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS NOT A “UNITED STATES PERSON” WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE INTERNAL REVENUE CODE).  THE
      FAILURE TO PROVIDE THE ISSUER, THE INDENTURE TRUSTEE AND THE NOTE PAYING AGENT WITH THE APPLICABLE FEDERAL INCOME TAX CERTIFICATIONS MAY RESULT IN THE IMPOSITION OF FEDERAL WITHHOLDING UPON PAYMENTS TO THE HOLDER IN RESPECT OF THIS NOTE.

   

  

  

   

  
    A-3-1

    
      

  

  

  

  	
          REGISTERED

        	
          $[_________] (1)

        	
          CUSIP NO. [_________]

        

  No.  R-1

  BMW VEHICLE OWNER TRUST 20[__]-[__]

   

  LIBOR plus [___]% ASSET BACKED NOTE, CLASS A-2b

   

  BMW VEHICLE OWNER TRUST 20[__]-[__], a statutory trust organized and existing under the laws of the State of Delaware (herein
      referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of [____________________], payable on each Payment Date in an amount equal to the aggregate amount, if any, payable
      from the Note Distribution Account in respect of principal on the Class A-2b Notes pursuant to Section 3.01 of the Indenture dated as of [__________], 20[__] (the “Indenture”), between the Issuer and [____________________], [____________________], as
      Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the earlier of [_________], 20[__] (the “Class A-2b Final Scheduled Payment Date”) and the Redemption
      Date, if any, pursuant to Section 10.01 of the Indenture. Except as otherwise provided in the Indenture, no payments of principal of the Class A-2b Notes shall be made until the Class A-1 Notes have been paid in full.  Capitalized terms used but not
      defined herein are defined in or pursuant to the Indenture, which also contains rules as to construction that shall be applicable herein.

   

  The Issuer will pay interest on this Note at the rate per annum set forth above, on each Payment Date until the principal of
      this Note is paid or made available for payment, on the principal amount of this Note outstanding on the preceding Payment Date after giving effect to all payments of principal made on the preceding Payment Date, (or on the initial principal balance
      of this Note from and including the Closing Date in the case of the first Payment Date), subject to certain limitations contained in the last sentence of Section 3.01 of the Indenture, and provided that, if the sum of LIBOR plus [___]% is less than
      0.00% for any Interest Period, then the per annum rate at which interest will accrue on this Note for such Interest Period will be 0.00%.  Interest on this Note will accrue for each Payment Date from and including the prior Payment Date (or, in the
      case of the first Payment Date, from the Closing Date) to but excluding such Payment Date.  Interest will be computed on the basis of the actual number of days elapsed in the related Interest Period and a 360-day year.  Such principal of and interest
      on this Note shall be paid in the manner specified on the reverse hereof.

   

  The principal of and interest on this 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.  All payments made by the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this
      Note.

   

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

   

  _______________

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

  
    A-3-2

    
      

  

  Unless the certificate of authentication hereon has been executed by the Indenture Trustee whose name appears below by manual
      signature, this Note shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose.

   

   

  

  

    

    

    

    

    

      

      

      

      

      

        

        

        

      

      

    

    

  

  
    A-3-3

    
      

  

  IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer, as
      of the date set forth below.

   

  	
          Date:

        	
          BMW VEHICLE OWNER TRUST 20[__]-[__]

        
	 	 	 	 
	 	
          By:

        	
          [__________], not in its individual capacity but solely as Owner Trustee under the Trust Agreement

        
	 	 	 	 
	 	 	 	 
	 	 	
          By:

        	
          _____________________________

        
	 	 	 	
          Authorized Signatory

        

  

  

  TRUSTEE’S CERTIFICATE OF AUTHENTICATION

   

  This is one of the Notes designated above and referred to in the within-mentioned Indenture.

   

  	
          Date:

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

        
	 	 	 
	 	 	 
	 	
          By:

        	
          _______________________________

        
	 	 	
          Authorized Officer

        

  

  

  

  

   

  
    A-3-4

    
      

  

  REVERSE OF CLASS A-2b NOTE

   

  This Note is one of a duly authorized issue of Notes of the Issuer, designated as its LIBOR plus [___]% Asset Backed Notes,
      Class A-2b (herein called the “Class A-2b Notes”), all issued under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer,
      the Indenture Trustee and the Holders of the Notes.  The Class A-2b Notes are subject to all terms of the Indenture.

   

  The Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3 Notes and the Class A-4 Notes (collectively, the
      “Notes”) are and will be secured by the collateral pledged as security therefor as provided in the Indenture.

   

  Principal of the Class A-2b Notes will be payable on each Payment Date in an amount described on the face hereof only after the
      Class A-1 Notes are paid in full and have no Outstanding Amount.  “Payment Date” means the [__]th day of each month, or, if any such date is not a Business Day, the next succeeding Business Day, commencing in [__________] 20[__].

   

  As described above, the entire unpaid principal amount of this Note shall be due and payable on the earlier of the Class A-2b
      Final Scheduled Payment Date and the Redemption Date, if any, pursuant to Section 10.01 of the Indenture.  Notwithstanding the foregoing, if an Event of Default occurs, the Indenture Trustee may, or at the direction of the Holders of Notes
      representing not less than a majority of the Outstanding Amount of the Notes shall, declare the Notes to be immediately due and payable in the manner provided in Section 5.02 of the Indenture.  All principal payments on the Class A-2b Notes shall be
      made pro rata to the Class A-2b Noteholders entitled thereto.

   

  Payments of interest on this Note due and payable on each Payment Date, together with the installment of principal, if any, to
      the extent not in full payment of this Note, shall be made by wire transfer as directed by such Holder provided such Holder has provided written wiring instructions to the Indenture Trustee and otherwise by check mailed to the Person whose name
      appears as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of the
      Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee.  Such checks shall be mailed to the Person entitled thereto at the
      address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Note be submitted for notation of payment.  Any reduction in the principal amount of this Note (or any one or more Predecessor
      Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon.  If
      funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
      the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed or transmitted by facsimile prior to such Payment Date, and the amount then due and payable shall be payable only upon presentation and

   

  
    A-3-5

    
      

  

  

  

  surrender of this Note at the applicable Corporate Trust Office of the Indenture Trustee or such other address as is selected by the Indenture
      Trustee pursuant to the terms of the Indenture.

   

  The Issuer shall pay interest on overdue installments of interest at the Class A-2b Rate to the extent lawful.

   

  As provided in the Indenture, the Notes may be redeemed in whole, but not in part, at the option of the Servicer on any Payment
      Date following the last day of the Collection Period as of which the Pool Balance is equal to or less than [__]% of the Initial Pool Balance.

   

  As provided in the Indenture and subject to the limitations set forth therein and on the face hereof, the transfer of this Note
      may be registered on the Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
      satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar,
      which requirements include membership or participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for,
      STAMP, all in accordance with the Securities Exchange Act of 1934, as amended, and thereupon one or more new Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No
      service charge will be charged for any registration of transfer or exchange of this Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such
      registration of transfer or exchange subject to certain exceptions set forth in the Indenture.

   

  Each Noteholder or Note Owner, by acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note,
      covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
      connection therewith, against (i) the Sellers, the Servicer, the Indenture Trustee or the Owner Trustee in their respective individual capacities, (ii) any owner of a beneficial interest in the Issuer, including the Sellers, or (iii) any partner,
      owner, beneficiary, agent, officer, director or employee of the Sellers, the Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the Sellers, the Servicer, the Owner
      Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall
      be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

   

  Each Noteholder or Note Owner, by acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note,
      covenants and agrees by accepting the benefits of the Indenture that such Noteholder or Note Owner will not, at any time, petition or otherwise invoke or cause the Issuer or the Depositor to invoke the process of any court or government authority for
      the purpose of commencing or sustaining a case against the Issuer or the Depositor

   

  
    A-3-6

    
      

  

  

  

  under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator
      or other similar official of the Issuer or the Depositor or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Issuer or the Depositor.

   

  The Issuer has entered into the Indenture and this Note is issued with the intention that, for purposes of federal and state
      income tax, franchise tax and any other tax measured in whole or in part by income, the Notes held by parties unrelated to the holders of the Certificates will qualify as indebtedness secured by the Trust Estate.  Each Noteholder, by acceptance of
      this Note (and each Note Owner by acceptance of a beneficial interest in this Note), agrees to treat this Note for such purposes as indebtedness.

   

  This Note, or any interest herein, may not be transferred to an “employee benefit plan” within the meaning of Section 3(3) of
      ERISA, a “plan” described in Section 4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by reason of an employee benefit plan’s or other plan’s investment in such entity, unless such transferee represents,
      warrants and covenants that its purchase and holding of such note will not result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code because it will satisfy the requirements of an applicable prohibited
      transaction exemption and will not cause a non-exempt violation of any applicable law that is substantially similar to ERISA or Section 4975 of the Code.  By its acquisition of a Note in book-entry form or any interest therein, each transferee will
      be deemed to have represented, warranted and covenanted that it satisfies the foregoing requirements and the Indenture Trustee may relay conclusively on the same for purposes hereof.

   

  Prior to the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee and any agent of the
      Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note
      be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by notice to the contrary.

   

  The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights
      and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes representing at least a majority of the Outstanding Amount of all Notes at the time
      Outstanding.  The Indenture also contains provisions permitting Holders of Notes representing specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain
      provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder and upon
      all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note.  The Indenture also permits the
      Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder.

   

  
    A-3-7

    
      

  

  

  

  The term “Issuer” as used in this Note includes any successor to the Issuer under the Indenture.

   

  This Note is issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

   

  This Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, without
      reference to its conflict of law provisions other than Sections 5-1401 and 5-1402 of the New York General Obligations Law, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such
      laws.

   

  No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of
      the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency herein prescribed.

   

  Each Noteholder, by acceptance of this Note or a beneficial interest herein, acknowledges and agrees that the purpose of
      Article XII of the Indenture is to facilitate compliance by the FDIC Rule Parties with the provisions of the FDIC Rule and that the interpretations of the requirements of the FDIC Rule may change over time, whether due to interpretive guidance
      provided by the FDIC or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees that the provisions set forth in Article XII of the Indenture shall have the effect and meanings that
      are appropriate under the FDIC Rule as such effect and meanings change over time on the basis of evolving interpretations of the FDIC Rule.

   

  Anything herein to the contrary notwithstanding, except as expressly provided in the Basic Documents, none of [__________], in
      its individual capacity, [____________________], in its individual capacity, any owner of a beneficial interest in the Issuer, the Sellers, the Servicer, or any of their respective partners, beneficiaries, agents, officers, directors, employees or
      successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on this Note or performance of, or omission to perform, any of the covenants, obligations or indemnifications
      contained in the Indenture.  The Holder of this Note by its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of the
      foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings
      contained in the Indenture or in this Note.

   

  

  

   

  
    A-3-8

    
      

  

  ASSIGNMENT

   

  Social Security or taxpayer I.D.  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: */

   

  Signature Guaranteed:

   

  */

   

  _________________

  
    
      	*/	
              NOTICE: 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.  Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which  requirements include membership or participation in
                  STAMP or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

            

    

  

  

  

  
    A-3-9

    
      

  

  
  EXHIBIT A-4

   

  [FORM OF CLASS A-3 NOTE]

   

  UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
      NEW YORK, NEW YORK, 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 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 PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF
      THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

   

  BY ACCEPTING THIS NOTE, EACH NOTEHOLDER AGREES TO PROVIDE THE ISSUER, THE INDENTURE TRUSTEE AND THE NOTE PAYING AGENT, UPON ITS
      REQUEST, WITH THE APPLICABLE FEDERAL INCOME TAX CERTIFICATIONS (GENERALLY, AN INTERNAL REVENUE SERVICE FORM W-9 (OR SUCCESSOR APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS A “UNITED STATES PERSON” WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE
      INTERNAL REVENUE CODE, OR AN APPROPRIATE INTERNAL REVENUE SERVICE FORM W-8 (OR SUCCESSOR APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS NOT A “UNITED STATES PERSON” WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE INTERNAL REVENUE CODE).  THE
      FAILURE TO PROVIDE THE ISSUER, THE INDENTURE TRUSTEE AND THE NOTE PAYING AGENT WITH THE APPLICABLE FEDERAL INCOME TAX CERTIFICATIONS MAY RESULT IN THE IMPOSITION OF FEDERAL WITHHOLDING UPON PAYMENTS TO THE HOLDER IN RESPECT OF THIS NOTE.

   

  

  

   

  
    A-4-1

    
      

  

  

  

  	
          REGISTERED

        	
          $[__________] (1)

        	
          CUSIP NO. [__________]

        

  No.  R-1

  BMW VEHICLE OWNER TRUST 20[__]-[__]

   

  [___]% ASSET BACKED NOTE, CLASS A-3

   

  BMW VEHICLE OWNER TRUST 20[__]-[__], a statutory trust organized and existing under the laws of the State of Delaware (herein
      referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of [__________________], payable on each Payment Date in an amount equal to the aggregate amount, if any, payable
      from the Note Distribution Account in respect of principal on the Class A-3 Notes pursuant to Section 3.01 of the Indenture dated as of [__________], 20[__] (the “Indenture”), between the Issuer and [____________________], [____________________], as
      Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the earlier of [__________] (the
      “Class A-3 Final Scheduled Payment Date”) and the Redemption Date, if any pursuant to Section 10.01 of the Indenture. Except as otherwise provided in the Indenture, no payments of principal of the Class A-3 Notes shall be made until the Class A-1
      Notes, the Class A-2a Notes and the Class A-2b Notes have been paid in full. Capitalized terms used but not defined herein are defined in or pursuant to the Indenture, which also contains rules as to construction that shall be applicable herein.

   

  The Issuer will pay interest on this Note at the rate per annum set forth above, on each Payment Date until the principal of
      this Note is paid or made available for payment, on the principal amount of this Note outstanding on the preceding Payment Date after giving effect to all payments of principal made on the preceding Payment Date (or, on the initial principal balance
      of this Note from and including the Closing Date in the case of the first Payment Date), subject to certain limitations contained in the last sentence of Section 3.01 of the Indenture.  Interest on this Note will accrue for each Payment Date from and
      including the [__]th day of the calendar month preceding the month of such Payment Date (or, in the case of the first Payment Date, from the Closing Date) to but excluding the [__]th day of the calendar month of such Payment Date.  Interest will be
      computed on the basis of a 360-day year of twelve 30-day months.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

   

  The principal of and interest on this 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.  All payments made by the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this
      Note.

   

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

   

  ______________________

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

  
    A-4-2

    
      

  

  Unless the certificate of authentication hereon has been executed by the Indenture Trustee whose name appears below by manual
      signature, this Note shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose.

   

   

  

  

    

    

    

    

      

      

      

        

        

        

        

          

        

        

      

      

    

    

  

  
    A-4-3

    
      

  

  IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer, as
      of the date set forth below.

   

  	
          Date:

        	
          BMW VEHICLE OWNER TRUST 20[__]-[__]

        
	 	 	 	 
	 	
          By:

        	
          [__________], not in its individual capacity but solely as Owner Trustee under the Trust Agreement

        
	 	 	 	 
	 	 	 	 
	 	 	
          By:

        	
          _____________________________

        
	 	 	 	
          Authorized Signatory

        

  

  

  TRUSTEE’S CERTIFICATE OF AUTHENTICATION

   

  This is one of the Notes designated above and referred to in the within-mentioned Indenture.

   

  	
          Date:

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

        
	 	 	 
	 	 	 
	 	
          By:

        	
          _______________________________

        
	 	 	
          Authorized Officer

        

  

  

  

  

   

  
    A-4-4

    
      

  

  REVERSE OF CLASS A-3 NOTE

   

  This Note is one of a duly authorized issue of Notes of the Issuer, designated as its [___]% Asset Backed Notes, Class A-3
      (herein called the “Class A-3 Notes”), all issued under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the
      Indenture Trustee and the Holders of the Notes.  The Class A-3 Notes are subject to all terms of the Indenture.

   

  The Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3 Notes, the Class A-4 Notes and the Class B Notes
      (collectively, the “Notes”) are and will be secured by the collateral pledged as security therefor as provided in the Indenture.

   

  Principal of the Class A-3 Notes will be payable on each Payment Date in an amount described on the face hereof only after the
      Class A-1 Notes, the Class A-2a Notes and the Class A-2b Notes are paid in full and have no Outstanding Amount.  “Payment Date” means the 25th day of each month, or, if any such date is not a Business Day, the next succeeding Business Day, commencing
      in [__________] 20[__].

   

  As described above, the entire unpaid principal amount of this Note shall be due and payable on the earlier of the Class A-3
      Final Scheduled Payment Date and the Redemption Date, if any, pursuant to Section 10.01 of the Indenture.  Notwithstanding the foregoing, if an Event of Default occurs, the Indenture Trustee may, or at the direction of the Holders of Notes
      representing not less than a majority of the Outstanding Amount of the Notes shall, declare the Notes to be immediately due and payable in the manner provided in Section 5.02 of the Indenture.  All principal payments on the Class A-3 Notes shall be
      made pro rata to the Class A-3 Noteholders entitled thereto.

   

  Payments of interest on this Note due and payable on each Payment Date, together with the installment of principal, if any, to
      the extent not in full payment of this Note, shall be made by wire transfer as directed by such Holder provided such Holder has provided written wiring instructions to the Indenture Trustee and otherwise by check mailed to the Person whose name
      appears as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of the
      Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee.  Such checks shall be mailed to the Person entitled thereto at the
      address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Note be submitted for notation of payment.  Any reduction in the principal amount of this Note (or any one or more Predecessor
      Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon.  If
      funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
      the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed or transmitted by facsimile prior to such Payment

   

  
    A-4-5

    
      

  

  

  

  Date, and the amount then due and payable shall be payable only upon presentation and surrender of this Note at the applicable Corporate Trust
      Office of the Indenture Trustee or such other address as is selected by the Indenture Trustee pursuant to the terms of the Indenture.

   

  The Issuer shall pay interest on overdue installments of interest at the Class A-3 Rate to the extent lawful.

   

  As provided in the Indenture, the Notes may be redeemed in whole, but not in part, at the option of the Servicer on any Payment
      Date following the last day of the Collection Period as of which the Pool Balance is equal to or less than [__]% of the Initial Pool Balance.

   

  As provided in the Indenture and subject to the limitations set forth therein and on the face hereof, the transfer of this Note
      may be registered on the Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
      satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar,
      which requirements include membership or participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for,
      STAMP, all in accordance with the Securities Exchange Act of 1934, as amended, and thereupon one or more new Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No
      service charge will be charged for any registration of transfer or exchange of this Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such
      registration of transfer or exchange subject to certain exceptions set forth in the Indenture.

   

  Each Noteholder or Note Owner, by acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note,
      covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
      connection therewith, against (i) the Sellers, the Servicer, the Indenture Trustee or the Owner Trustee in their respective individual capacities, (ii) any owner of a beneficial interest in the Issuer, including the Sellers, or (iii) any partner,
      owner, beneficiary, agent, officer, director or employee of the Sellers, the Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the Sellers, the Servicer, the Owner
      Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall
      be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

   

  Each Noteholder or Note Owner, by acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note,
      covenants and agrees by accepting the benefits of the Indenture that such Noteholder or Note Owner will not, at any time, petition or otherwise invoke or cause the Issuer or the Depositor to invoke the process of any court or government

   

  
    A-4-6

    
      

  

  

  

  authority for the purpose of commencing or sustaining a case against the Issuer or the Depositor under any federal or state bankruptcy, insolvency
      or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or the Depositor or any substantial part of its property, or ordering the winding up or liquidation of the
      affairs of the Issuer or the Depositor.

   

  The Issuer has entered into the Indenture and this Note is issued with the intention that, for purposes of federal and state
      income tax, franchise tax and any other tax measured in whole or in part by income, the Notes held by parties unrelated to the holders of the Certificates will qualify as indebtedness secured by the Trust Estate.  Each Noteholder, by acceptance of
      this Note (and each Note Owner by acceptance of a beneficial interest in this Note), agrees to treat this Note for such purposes as indebtedness.

   

  This Note, or any interest herein, may not be transferred to an “employee benefit plan” within the meaning of Section 3(3) of
      ERISA, a “plan” described in Section 4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by reason of an employee benefit plan’s or other plan’s investment in such entity, unless such transferee represents,
      warrants and covenants that its purchase and holding of such note will not result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code because it will satisfy the requirements of an applicable prohibited
      transaction exemption and will not cause a non-exempt violation of any applicable law that is substantially similar to ERISA or Section 4975 of the Code.  By its acquisition of a Note in book-entry form or any interest therein, each transferee will
      be deemed to have represented, warranted and covenanted that it satisfies the foregoing requirements and the Indenture Trustee may relay conclusively on the same for purposes hereof.

   

  Prior to the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee and any agent of the
      Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note
      be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by notice to the contrary.

   

  The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights
      and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes representing at least a majority of the Outstanding Amount of all Notes at the time
      Outstanding.  The Indenture also contains provisions permitting Holders of Notes representing specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain
      provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder and upon
      all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note.  The Indenture also permits the
      Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder.

   

  
    A-4-7

    
      

  

  

  

  The term “Issuer” as used in this Note includes any successor to the Issuer under the Indenture.

   

  This Note is issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

   

  This Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, without
      reference to its conflict of law provisions other than Sections 5-1401 and 5-1402 of the New York General Obligations Law, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such
      laws.

   

  No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of
      the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency herein prescribed.

   

  Each Noteholder, by acceptance of this Note or a beneficial interest herein, acknowledges and agrees that the purpose of
      Article XII of the Indenture is to facilitate compliance by the FDIC Rule Parties with the provisions of the FDIC Rule and that the interpretations of the requirements of the FDIC Rule may change over time, whether due to interpretive guidance
      provided by the FDIC or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees that the provisions set forth in Article XII of the Indenture shall have the effect and meanings that
      are appropriate under the FDIC Rule as such effect and meanings change over time on the basis of evolving interpretations of the FDIC Rule.

   

  Anything herein to the contrary notwithstanding, except as expressly provided in the Basic Documents, none of [__________], in
      its individual capacity, [____________________], in its individual capacity, any owner of a beneficial interest in the Issuer, the Sellers, the Servicer, or any of their respective partners, beneficiaries, agents, officers, directors, employees or
      successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on this Note or performance of, or omission to perform, any of the covenants, obligations or indemnifications
      contained in the Indenture.  The Holder of this Note by its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of the
      foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings
      contained in the Indenture or in this Note.

   

  
    A-4-8

    
      

  

  ASSIGNMENT

   

  Social Security or taxpayer I.D.  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: */

   

  Signature Guaranteed:

   

  */

   

  _________________

  
    
      	*/	
              NOTICE: 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.  Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which  requirements include membership or participation in
                  STAMP or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

            

    

  

  
    A-4-9

    
      

  

  
  EXHIBIT A-5

   

  [FORM OF CLASS A-4 NOTE]

   

  UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
      NEW YORK, NEW YORK, 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 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 PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF
      THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

   

  BY ACCEPTING THIS NOTE, EACH NOTEHOLDER AGREES TO PROVIDE THE ISSUER, THE INDENTURE TRUSTEE AND THE NOTE PAYING AGENT, UPON ITS
      REQUEST, WITH THE APPLICABLE FEDERAL INCOME TAX CERTIFICATIONS (GENERALLY, AN INTERNAL REVENUE SERVICE FORM W-9 (OR SUCCESSOR APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS A “UNITED STATES PERSON” WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE
      INTERNAL REVENUE CODE, OR AN APPROPRIATE INTERNAL REVENUE SERVICE FORM W-8 (OR SUCCESSOR APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS NOT A “UNITED STATES PERSON” WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE INTERNAL REVENUE CODE).  THE
      FAILURE TO PROVIDE THE ISSUER, THE INDENTURE TRUSTEE AND THE NOTE PAYING AGENT WITH THE APPLICABLE FEDERAL INCOME TAX CERTIFICATIONS MAY RESULT IN THE IMPOSITION OF FEDERAL WITHHOLDING UPON PAYMENTS TO THE HOLDER IN RESPECT OF THIS NOTE.

   

  

  

  
    A-5-1

    
      

  

  

  

  	
          REGISTERED

        	
          $[__________] (1)

        	
          CUSIP NO. [__________]

        

  No.  R-1

  BMW VEHICLE OWNER TRUST 20[__]-[__]

   

  [___]% ASSET BACKED NOTE, CLASS A-4

   

  BMW VEHICLE OWNER TRUST 20[__]-[__], a statutory trust organized and existing under the laws of the State of Delaware (herein
      referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of [___________________], payable on each Payment Date in an amount equal to the aggregate amount, if any, payable
      from the Note Distribution Account in respect of principal on the Class A-4 Notes pursuant to Section 3.01 of the Indenture dated as of [__________], 20[__] (the “Indenture”), between the Issuer and [____________________], [____________________], as
      Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the earlier of [__________] (the
      “Class A-4 Final Scheduled Payment Date”) and the Redemption Date, if any, pursuant to Section 10.01 of the Indenture.  Except as otherwise provided in the Indenture, no payments of principal of the Class A-4 Notes shall be made until the Class A-1
      Notes, the Class A-2a Notes, the Class A-2b Notes and the Class A-3 Notes have been paid in full.  Capitalized terms used but not defined herein are defined in the Indenture, which also contains rules as to construction that shall be applicable
      herein.

   

  The Issuer will pay interest on this Note at the rate per annum set forth above, on each Payment Date until the principal of
      this Note is paid or made available for payment, on the principal amount of this Note outstanding on the preceding Payment Date after giving effect to all payments of principal made on the preceding Payment Date (or on the initial principal balance
      of this Note from and including the Closing Date in the case of the first Payment Date), subject to certain limitations contained in the last sentence of Section 3.01 of the Indenture.  Interest on this Note will accrue for each Payment Date from and
      including the [__]th day of the calendar month preceding the month of such Payment Date (or, in the case of the first Payment Date, from the Closing Date) to but excluding the [__]th day of the calendar month of such Payment Date.  Interest will be
      computed on the basis of a 360-day year of twelve 30-day months.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

   

  The principal of and interest on this 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.  All payments made by the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this
      Note.

   

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

   

  ___________________

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

  
    A-5-2

    
      

  

  Unless the certificate of authentication hereon has been executed by the Indenture Trustee whose name appears below by manual
      signature, this Note shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose.

   

   

  

  

    

    

    

      

      

      

      

      

        

          

        

        

      

      

    

    

  

  
    A-5-3

    
      

  

  IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer, as
      of the date set forth below.

   

  	
          Date:

        	
          BMW VEHICLE OWNER TRUST 20[__]-[__]

        
	 	 	 	 
	 	
          By:

        	
          [__________], not in its individual capacity but solely as Owner Trustee under the Trust Agreement

        
	 	 	 	 
	 	 	 	 
	 	 	
          By:

        	
          _____________________________

        
	 	 	 	
          Authorized Signatory

        

  

  

  TRUSTEE’S CERTIFICATE OF AUTHENTICATION

   

  This is one of the Notes designated above and referred to in the within-mentioned Indenture.

   

  	
          Date:

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

        
	 	 	 
	 	 	 
	 	
          By:

        	
          _______________________________

        
	 	 	
          Authorized Officer

        

  

  

  

  

   

  
    A-5-4

    
      

  

  REVERSE OF CLASS A-4 NOTE

   

  This Note is one of a duly authorized issue of Notes of the Issuer, designated as its [___]% Asset Backed Notes, Class A-4
      (herein called the “Class A-4 Notes”), all issued under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the
      Indenture Trustee and the Holders of the Notes.  The Class A-4 Notes are subject to all terms of the Indenture.

   

  The Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3 Notes, the Class A-4 Notes and the Class B Notes
      (collectively, the “Notes”) are and will be secured by the collateral pledged as security therefor as provided in the Indenture.

   

  Principal of the Class A-4 Notes will be payable on each Payment Date in an amount described on the face hereof only after the
      Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes and the Class A-3 Notes are paid in full and have no Outstanding Amount.  “Payment Date” means the [__]th day of each month, or, if any such date is not a Business Day, the next succeeding
      Business Day, commencing in [__________].

   

  As described above, the entire unpaid principal amount of this Note shall be due and payable on the earlier of the Class A-4
      Final Scheduled Payment Date and the Redemption Date, if any, pursuant to Section 10.01 of the Indenture.  Notwithstanding the foregoing, if an Event of Default occurs, the Indenture Trustee may, or at the direction of the Holders of Notes
      representing not less than a majority of the Outstanding Amount of the Notes shall, declare the Notes to be immediately due and payable in the manner provided in Section 5.02 of the Indenture.  All principal payments on the Class A-4 Notes shall be
      made pro rata to the Class A-4 Noteholders entitled thereto.

   

  Payments of interest on this Note due and payable on each Payment Date, together with the installment of principal, if any, to
      the extent not in full payment of this Note, shall be made by wire transfer as directed by such Holder provided such Holder has provided written wiring instructions to the Indenture Trustee and otherwise by check mailed to the Person whose name
      appears as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of the
      Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee.  Such checks shall be mailed to the Person entitled thereto at the
      address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Note be submitted for notation of payment.  Any reduction in the principal amount of this Note (or any one or more Predecessor
      Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon.  If
      funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
      the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed or transmitted by facsimile prior to such Payment

   

  
    A-5-5

    
      

  

  

  

  Date, and the amount then due and payable shall be payable only upon presentation and surrender of this Note at the applicable Corporate Trust
      Office of the Indenture Trustee or such other address as is selected by the Indenture Trustee pursuant to the terms of the Indenture.

   

  The Issuer shall pay interest on overdue installments of interest at the Class A-4 Rate to the extent lawful.

   

  As provided in the Indenture, the Notes may be redeemed in whole, but not in part, at the option of the Servicer on any Payment
      Date following the last day of the Collection Period as of which the Pool Balance is equal to or less than [__]% of the Initial Pool Balance.

   

  As provided in the Indenture and subject to the limitations set forth therein and on the face hereof, the transfer of this Note
      may be registered on the Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
      satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar,
      which requirements include membership or participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for,
      STAMP, all in accordance with the Securities Exchange Act of 1934, as amended, and thereupon one or more new Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No
      service charge will be charged for any registration of transfer or exchange of this Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such
      registration of transfer or exchange subject to certain exceptions set forth in the Indenture.

   

  Each Noteholder or Note Owner, by acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note,
      covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
      connection therewith, against (i) the Sellers, the Servicer, the Indenture Trustee or the Owner Trustee in their respective individual capacities, (ii) any owner of a beneficial interest in the Issuer, including the Sellers, or (iii) any partner,
      owner, beneficiary, agent, officer, director or employee of the Sellers, the Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the Sellers, the Servicer, the Owner
      Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall
      be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

   

  Each Noteholder or Note Owner, by acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note,
      covenants and agrees by accepting the benefits of the Indenture that such Noteholder or Note Owner will not, at any time, petition or otherwise invoke or cause the Issuer or the Depositor to invoke the process of any court or government

   

  
    A-5-6

    
      

  

  

  

  authority for the purpose of commencing or sustaining a case against the Issuer or the Depositor under any federal or state bankruptcy, insolvency
      or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or the Depositor or any substantial part of its property, or ordering the winding up or liquidation of the
      affairs of the Issuer or the Depositor.

   

  The Issuer has entered into the Indenture and this Note is issued with the intention that, for purposes of federal and state
      income tax, franchise tax and any other tax measured in whole or in part by income, the Notes held by parties unrelated to the holders of the Certificates will qualify as indebtedness secured by the Trust Estate.  Each Noteholder, by acceptance of
      this Note (and each Note Owner by acceptance of a beneficial interest in this Note), agrees to treat this Note for such purposes as indebtedness.

   

  This Note, or any interest herein, may not be transferred to an “employee benefit plan” within the meaning of Section 3(3) of
      ERISA, a “plan” described in Section 4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by reason of an employee benefit plan’s or other plan’s investment in such entity, unless such transferee represents,
      warrants and covenants that its purchase and holding of such note will not result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code because it will satisfy the requirements of an applicable prohibited
      transaction exemption and will not cause a non-exempt violation of any applicable law that is substantially similar to ERISA or Section 4975 of the Code.  By its acquisition of a Note in book-entry form or any interest therein, each transferee will
      be deemed to have represented, warranted and covenanted that it satisfies the foregoing requirements and the Indenture Trustee may relay conclusively on the same for purposes hereof.

   

  Prior to the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee and any agent of the
      Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note
      be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by notice to the contrary.

   

  The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights
      and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes representing at least a majority of the Outstanding Amount of all Notes at the time
      Outstanding.  The Indenture also contains provisions permitting Holders of Notes representing specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain
      provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder and upon
      all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note.  The Indenture also permits the
      Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder.

   

  
    A-5-7

    
      

  

  

  

  The term “Issuer” as used in this Note includes any successor to the Issuer under the Indenture.

   

  This Note is issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

   

  This Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, without
      reference to its conflict of law provisions other than Sections 5-1401 and 5-1402 of the New York General Obligations Law, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such
      laws.

   

  No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of
      the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency herein prescribed.

   

  Each Noteholder, by acceptance of this Note or a beneficial interest herein, acknowledges and agrees that the purpose of
      Article XII of the Indenture is to facilitate compliance by the FDIC Rule Parties with the provisions of the FDIC Rule and that the interpretations of the requirements of the FDIC Rule may change over time, whether due to interpretive guidance
      provided by the FDIC or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees that the provisions set forth in Article XII of the Indenture shall have the effect and meanings that
      are appropriate under the FDIC Rule as such effect and meanings change over time on the basis of evolving interpretations of the FDIC Rule.

   

  Anything herein to the contrary notwithstanding, except as expressly provided in the Basic Documents, none of [__________], in
      its individual capacity, [____________________], in its individual capacity, any owner of a beneficial interest in the Issuer, the Sellers, the Servicer, or any of their respective partners, beneficiaries, agents, officers, directors, employees or
      successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on this Note or performance of, or omission to perform, any of the covenants, obligations or indemnifications
      contained in the Indenture.  The Holder of this Note by its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of the
      foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings
      contained in the Indenture or in this Note.

   

  
    A-5-8

    
      

  

  ASSIGNMENT

   

  Social Security or taxpayer I.D.  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: */

   

  Signature Guaranteed:

   

  */

   

  _________________

  
    
      	*/	
              NOTICE: 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.  Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in
                  STAMP or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with  the Securities Exchange Act of 1934, as amended.

            

    

  

  

  

   

  

  

   

  
    A-5-9

    
      

  

  
  EXHIBIT A-6

   

  [FORM OF CLASS B NOTE]

   

  UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
      NEW YORK, NEW YORK, 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 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 PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF
      THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

   

  BY ACCEPTING THIS NOTE, EACH NOTEHOLDER AGREES TO PROVIDE THE ISSUER, THE INDENTURE TRUSTEE AND THE NOTE PAYING AGENT, UPON ITS
      REQUEST, WITH THE APPLICABLE FEDERAL INCOME TAX CERTIFICATIONS (GENERALLY, AN INTERNAL REVENUE SERVICE FORM W-9 (OR SUCCESSOR APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS A “UNITED STATES PERSON” WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE
      INTERNAL REVENUE CODE, OR AN APPROPRIATE INTERNAL REVENUE SERVICE FORM W-8 (OR SUCCESSOR APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS NOT A “UNITED STATES PERSON” WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE INTERNAL REVENUE CODE).  THE
      FAILURE TO PROVIDE THE ISSUER, THE INDENTURE TRUSTEE AND THE NOTE PAYING AGENT WITH THE APPLICABLE FEDERAL INCOME TAX CERTIFICATIONS MAY RESULT IN THE IMPOSITION OF FEDERAL WITHHOLDING UPON PAYMENTS TO THE HOLDER IN RESPECT OF THIS NOTE.

   

  

  

  
    A-6-1

    
      

  

  

  

  	
          REGISTERED

        	
          $[__________] (1)

        	
          CUSIP NO. [__________]

        

  No.  R-1

  BMW VEHICLE OWNER TRUST 20[__]-[__]

   

  [___]% ASSET BACKED NOTE, CLASS B

   

  BMW VEHICLE OWNER TRUST 20[__]-[__], a statutory trust organized and existing under the laws of the State of Delaware (herein
      referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of [___________________], payable on each Payment Date in an amount equal to the aggregate amount, if any, payable
      from the Note Distribution Account in respect of principal on the Class A-4 Notes pursuant to Section 3.01 of the Indenture dated as of [__________], 20[__] (the “Indenture”), between the Issuer and [____________________], [____________________], as
      Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the earlier of [__________] (the
      “Class A-4 Final Scheduled Payment Date”) and the Redemption Date, if any, pursuant to Section 10.01 of the Indenture.  Except as otherwise provided in the Indenture, no payments of principal of the Class B Notes shall be made until the Class A-1
      Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3 Notes and the Class A-4 Notes have been paid in full.  Capitalized terms used but not defined herein are defined in the Indenture, which also contains rules as to construction that
      shall be applicable herein.

   

  The Issuer will pay interest on this Note at the rate per annum set forth above, on each Payment Date until the principal of
      this Note is paid or made available for payment, on the principal amount of this Note outstanding on the preceding Payment Date after giving effect to all payments of principal made on the preceding Payment Date (or on the initial principal balance
      of this Note from and including the Closing Date in the case of the first Payment Date), subject to certain limitations contained in the last sentence of Section 3.01 of the Indenture.  Interest on this Note will accrue for each Payment Date from and
      including the [__]th day of the calendar month preceding the month of such Payment Date (or, in the case of the first Payment Date, from the Closing Date) to but excluding the [__]th day of the calendar month of such Payment Date.  Interest will be
      computed on the basis of a 360-day year of twelve 30-day months.  Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

   

  The principal of and interest on this 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.  All payments made by the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this
      Note.

   

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

   

  ___________________

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

  
    A-6-2

    
      

  

  Unless the certificate of authentication hereon has been executed by the Indenture Trustee whose name appears below by manual
      signature, this Note shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose.

   

   

  

  

    

    

    

    

      

      

      

      

      

      

      

    

    

  

  
    A-6-3

    
      

  

  IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its Authorized Officer, as
      of the date set forth below.

   

  	
          Date:

        	
          BMW VEHICLE OWNER TRUST 20[__]-[__]

        
	 	 	 	 
	 	
          By:

        	
          [__________], not in its individual capacity but solely as Owner Trustee under the Trust Agreement

        
	 	 	 	 
	 	 	 	 
	 	 	
          By:

        	
          _____________________________

        
	 	 	 	
          Authorized Signatory

        

  

  

  TRUSTEE’S CERTIFICATE OF AUTHENTICATION

   

  This is one of the Notes designated above and referred to in the within-mentioned Indenture.

   

  	
          Date:

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

        
	 	 	 
	 	 	 
	 	
          By:

        	
          _______________________________

        
	 	 	
          Authorized Officer

        

  

  

  

  

   

  
    A-6-4

    
      

  

  REVERSE OF CLASS B NOTE

   

  This Note is one of a duly authorized issue of Notes of the Issuer, designated as its [___]% Asset Backed Notes, Class B
      (herein called the “Class B Notes”), all issued under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture
      Trustee and the Holders of the Notes.  The Class B Notes are subject to all terms of the Indenture.

   

  The Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3 Notes, the Class A-4 Notes and the Class B Notes
      (collectively, the “Notes”) are and will be secured by the collateral pledged as security therefor as provided in the Indenture.

   

  Principal of the Class B Notes will be payable on each Payment Date in an amount described on the face hereof only after the
      Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3 Notes and the Class A-4 Notes are paid in full and have no Outstanding Amount.  “Payment Date” means the [__]th day of each month, or, if any such date is not a Business Day,
      the next succeeding Business Day, commencing in [__________].

   

  As described above, the entire unpaid principal amount of this Note shall be due and payable on the earlier of the Class B
      Final Scheduled Payment Date and the Redemption Date, if any, pursuant to Section 10.01 of the Indenture.  Notwithstanding the foregoing, if an Event of Default occurs, the Indenture Trustee may, or at the direction of the Holders of Notes
      representing not less than a majority of the Outstanding Amount of the Notes shall, declare the Notes to be immediately due and payable in the manner provided in Section 5.02 of the Indenture.  All principal payments on the Class B Notes shall be
      made pro rata to the Class B Noteholders entitled thereto.

   

  Payments of interest on this Note due and payable on each Payment Date, together with the installment of principal, if any, to
      the extent not in full payment of this Note, shall be made by wire transfer as directed by such Holder provided such Holder has provided written wiring instructions to the Indenture Trustee and otherwise by check mailed to the Person whose name
      appears as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of the
      Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee.  Such checks shall be mailed to the Person entitled thereto at the
      address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Note be submitted for notation of payment.  Any reduction in the principal amount of this Note (or any one or more Predecessor
      Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon.  If
      funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
      the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed or transmitted by facsimile prior to such Payment

   

  
    A-6-5

    
      

  

  

  

  Date, and the amount then due and payable shall be payable only upon presentation and surrender of this Note at the applicable Corporate Trust
      Office of the Indenture Trustee or such other address as is selected by the Indenture Trustee pursuant to the terms of the Indenture.

   

  The Issuer shall pay interest on overdue installments of interest at the Class B Rate to the extent lawful.

   

  As provided in the Indenture, the Notes may be redeemed in whole, but not in part, at the option of the Servicer on any Payment
      Date following the last day of the Collection Period as of which the Pool Balance is equal to or less than [__]% of the Initial Pool Balance.

   

  As provided in the Indenture and subject to the limitations set forth therein and on the face hereof, the transfer of this Note
      may be registered on the Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
      satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar,
      which requirements include membership or participation in the Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for,
      STAMP, all in accordance with the Securities Exchange Act of 1934, as amended, and thereupon one or more new Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No
      service charge will be charged for any registration of transfer or exchange of this Note, but the transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such
      registration of transfer or exchange subject to certain exceptions set forth in the Indenture.

   

  Each Noteholder or Note Owner, by acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note,
      covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
      connection therewith, against (i) the Sellers, the Servicer, the Indenture Trustee or the Owner Trustee in their respective individual capacities, (ii) any owner of a beneficial interest in the Issuer, including the Sellers, or (iii) any partner,
      owner, beneficiary, agent, officer, director or employee of the Sellers, the Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the Sellers, the Servicer, the Owner
      Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall
      be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.

   

  Each Noteholder or Note Owner, by acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note,
      covenants and agrees by accepting the benefits of the Indenture that such Noteholder or Note Owner will not, at any time, petition or otherwise invoke or cause the Issuer or the Depositor to invoke the process of any court or government

   

  
    A-6-6

    
      

  

  

  

  authority for the purpose of commencing or sustaining a case against the Issuer or the Depositor under any federal or state bankruptcy, insolvency
      or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or the Depositor or any substantial part of its property, or ordering the winding up or liquidation of the
      affairs of the Issuer or the Depositor.

   

  The Issuer has entered into the Indenture and this Note is issued with the intention that, for purposes of federal and state
      income tax, franchise tax and any other tax measured in whole or in part by income, the Notes held by parties unrelated to the holders of the Certificates will qualify as indebtedness secured by the Trust Estate.  Each Noteholder, by acceptance of
      this Note (and each Note Owner by acceptance of a beneficial interest in this Note), agrees to treat this Note for such purposes as indebtedness.

   

  This Note, or any interest herein, may not be transferred to an “employee benefit plan” within the meaning of Section 3(3) of
      ERISA, a “plan” described in Section 4975(e)(1) of the Code, any entity that is deemed to hold “plan assets” of any of the foregoing by reason of an employee benefit plan’s or other plan’s investment in such entity, unless such transferee represents,
      warrants and covenants that its purchase and holding of such note will not result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code because it will satisfy the requirements of an applicable prohibited
      transaction exemption and will not cause a non-exempt violation of any applicable law that is substantially similar to ERISA or Section 4975 of the Code.  By its acquisition of a Note in book-entry form or any interest therein, each transferee will
      be deemed to have represented, warranted and covenanted that it satisfies the foregoing requirements and the Indenture Trustee may relay conclusively on the same for purposes hereof.

   

  Prior to the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee and any agent of the
      Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note
      be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by notice to the contrary.

   

  The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights
      and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes representing at least a majority of the Outstanding Amount of all Notes at the time
      Outstanding.  The Indenture also contains provisions permitting Holders of Notes representing specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain
      provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder and upon
      all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note.  The Indenture also permits the
      Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder.

   

  
    A-6-7

    
      

  

  

  

  The term “Issuer” as used in this Note includes any successor to the Issuer under the Indenture.

   

  This Note is issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations
      therein set forth.

   

  This Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, without
      reference to its conflict of law provisions other than Sections 5-1401 and 5-1402 of the New York General Obligations Law, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such
      laws.

   

  No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of
      the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency herein prescribed.

   

  Each Noteholder, by acceptance of this Note or a beneficial interest herein, acknowledges and agrees that the purpose of
      Article XII of the Indenture is to facilitate compliance by the FDIC Rule Parties with the provisions of the FDIC Rule and that the interpretations of the requirements of the FDIC Rule may change over time, whether due to interpretive guidance
      provided by the FDIC or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees that the provisions set forth in Article XII of the Indenture shall have the effect and meanings that
      are appropriate under the FDIC Rule as such effect and meanings change over time on the basis of evolving interpretations of the FDIC Rule.

   

  Anything herein to the contrary notwithstanding, except as expressly provided in the Basic Documents, none of [__________], in
      its individual capacity, [____________________], in its individual capacity, any owner of a beneficial interest in the Issuer, the Sellers, the Servicer, or any of their respective partners, beneficiaries, agents, officers, directors, employees or
      successors or assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment of principal of or interest on this Note or performance of, or omission to perform, any of the covenants, obligations or indemnifications
      contained in the Indenture.  The Holder of this Note by its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of the
      foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings
      contained in the Indenture or in this Note.

   

  
    A-6-8

    
      

  

  ASSIGNMENT

   

  Social Security or taxpayer I.D.  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: */

   

  Signature Guaranteed:

   

  */

   

  _________________

  
    
      	*/	
              NOTICE: 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.  Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in
                  STAMP or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

            

    

  

  

  

   

  

  

   

  
    A-6-9

    
      

  

  
  EXHIBIT B

   

  SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

  

  

  The assessment of compliance to be delivered by the Indenture Trustee, shall address, at a minimum, the criteria identified as
      below as “Applicable Servicing Criteria”:

  

  

  	
          Reference

        	
          Criteria

        	 
	
           

        	
           

          General Servicing Considerations

           

        	 
	
          1122(d)(1)(i)

        	
          Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the
              transaction agreements.

        	 
	
          1122(d)(1)(ii)

        	
          If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s
              performance and compliance with such servicing activities.

        	 
	
          1122(d)(1)(iii)

        	
          Any requirements in the transaction agreements to maintain a back-up servicer for the receivables are maintained.

        	 
	
          1122(d)(1)(iv)

        	
          A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting
              period in the amount of coverage required by and otherwise in accordance with the terms of the transaction agreements.

        	 
	
          1122(d)(1)(v)

        	
          Aggregation of information, as applicable, is mathematically accurate and the information conveyed accurately reflects the information.

        	 
	
           

        	
           

          Cash Collection and Administration

           

        	 
	
          1122(d)(2)(i)

        	
          Payments on receivables are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two
              business days following receipt, or such other number of days specified in the transaction agreements.

        	 
	
          1122(d)(2)(ii)

        	
          Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.

        	
          x

        
	
          1122(d)(2)(iii)

        	
          Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such
              advances, are made, reviewed and approved as specified in the transaction agreements.

        	 
	
          1122(d)(2)(iv)

        	
          The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are
              separately maintained (e.g., with respect to commingling of cash) as set forth in the transaction agreements.

        	 
	
          1122(d)(2)(v)

        	
          Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For
              purposes of this criterion, “federally insured depository institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.

        	 
	
          1122(d)(2)(vi)

        	
          Unissued checks are safeguarded so as to prevent unauthorized access.

        	 
	
          1122(d)(2)(vii)

        	
           Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and
              related bank clearing accounts. These reconciliations are (A) mathematically accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C)
              reviewed and approved by someone other than the person who prepared the reconciliation; and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such
              other number of days specified in the transaction agreements.

        	 

  
    B-1

    
      

  

  

  

  	
          Reference

        	
          Criteria

        	 
	
           

        	
           

          Investor Remittances and Reporting

           

        	 
	
          1122(d)(3)(i)

        	
          Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and
              applicable Commission requirements. Specifically, such reports (A) are prepared in accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified
              in the transaction agreements; (C) are filed with the Commission as required by its rules and regulations; and (D) agree with investors’ or the trustee’s records as to the total unpaid principal balance and number of receivables serviced by
              the Servicer.

        	 
	
          1122(d)(3)(ii)

        	
          Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the
              transaction agreements.

        	
          x

        
	
          1122(d)(3)(iii)

        	
          Disbursements made to an investor are posted within two business days to the Servicer’s investor records, or such other number of days
              specified in the transaction agreements.

        	
          x

        
	
          1122(d)(3)(iv)

        	
          Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank
              statements.

        	
          x

        
	
           

        	
           

          Pool Asset Administration

           

        	 
	
          1122(d)(4)(i)

        	
          Collateral or security on receivables is maintained as required by the transaction agreements or related receivables documents.

        	 
	
          1122(d)(4)(ii)

        	
          Receivables and related documents are safeguarded as required by the transaction agreements

        	 
	
          1122(d)(4)(iii)

        	
          Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or
              requirements in the transaction agreements.

        	 
	
          1122(d)(4)(iv)

        	
          Payments on receivables, including any payoffs, made in accordance with the related receivables documents are posted to the Servicer’s
              obligor records maintained no more than two business days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related
              receivables documents.

        	 
	
          1122(d)(4)(v)

        	
          The Servicer’s records regarding the receivables agree with the Servicer’s records with respect to an obligor’s unpaid principal balance.

        	 
	
          1122(d)(4)(vi)

        	
          Changes with respect to the terms or status of an obligor’s receivables (e.g., loan modifications or re-agings) are made, reviewed and
              approved by authorized personnel in accordance with usual customary procedures.

        	 
	
          1122(d)(4)(vii)

        	
          Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and
              repossessions, as applicable) are initiated, conducted and concluded in accordance with usual customary procedures.

        	 
	
          1122(d)(4)(viii)

        	
          Records documenting collection efforts are maintained during the period a receivable is delinquent in accordance with the transaction
              agreements. Such records are maintained on at least a monthly basis, or such other period specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent receivables including, for example, phone calls,
              letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g., illness or unemployment).

        	 
	
          1122(d)(4)(ix)

        	
          Adjustments to interest rates or rates of return for receivables with variable rates are computed based on the related receivables
              documents.

        	 

  
    B-2

    
      

  

  

  

  	
          Reference

        	
          Criteria

        	 
	
          1122(d)(4)(x)

        	
          Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s
              receivables documents, on at least an annual basis, or such other period specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable receivables documents and state laws;
              and (C) such funds are returned to the obligor within 30 calendar days of full repayment of the related receivables, or such other number of days specified in the transaction agreements.

        	 
	
          1122(d)(4)(xi)

        	
          Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates,
              as indicated on the appropriate bills or notices for such payments, provided that such support has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction
              agreements.

        	 
	
          1122(d)(4)(xii)

        	
          Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the servicer’s funds and not
              charged to the obligor, unless the late payment was due to the obligor’s error or omission.

        	 
	
          1122(d)(4)(xiii)

        	
          Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the servicer, or
              such other number of days specified in the transaction agreements.

        	 
	
          1122(d)(4)(xiv)

        	
           Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.

        	 
	
          1122(d)(4)(xv)

        	
          Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set
              forth in the transaction agreements.

        	 

  

  

  

  

  By:  _______________________________

  Name:

  Title:

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  B-3

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