Document:

EXHIBIT 10.6

 

 

ASSET REPRESENTATIONS REVIEW AGREEMENT

 

among

 

FORD CREDIT AUTO OWNER TRUST 20      -     ,
 as Issuer

 

FORD MOTOR CREDIT COMPANY LLC,
 as Servicer

 

and

 

                                      ,
 as Asset Representations Reviewer

 

Dated as of           , 20    

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE I   USAGE AND DEFINITIONS
    	
1
    
	
Section 1.1.
    	
Usage and Definitions
    	
1
    
	
Section 1.2.
    	
Additional Definitions
    	
1
    
	
Section 1.3.
    	
Review Materials and   Test Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II   ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER
    	
2
    
	
Section 2.1.
    	
Engagement; Acceptance
    	
2
    
	
Section 2.2.
    	
Confirmation of Status
    	
2
    
	
 
    	
 
    	
 
    
	
ARTICLE III   ASSET REPRESENTATIONS REVIEW PROCESS
    	
2
    
	
Section 3.1.
    	
Review Notices
    	
2
    
	
Section 3.2.
    	
Identification of   Review Receivables
    	
2
    
	
Section 3.3.
    	
Review Materials
    	
3
    
	
Section 3.4.
    	
Performance of Reviews
    	
3
    
	
Section 3.5.
    	
Review Reports
    	
4
    
	
Section 3.6.
    	
Review Representatives
    	
4
    
	
Section 3.7.
    	
Dispute Resolution
    	
5
    
	
Section 3.8.
    	
Limitations on Review   Obligations
    	
5
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   ASSET REPRESENTATIONS REVIEWER
    	
6
    
	
Section 4.1.
    	
Representations and   Warranties
    	
6
    
	
Section 4.2.
    	
Covenants
    	
7
    
	
Section 4.3.
    	
Fees and Expenses
    	
7
    
	
Section 4.4.
    	
Limitation on Liability
    	
8
    
	
Section 4.5.
    	
Indemnification by   Asset Representations Reviewer
    	
8
    
	
Section 4.6.
    	
Indemnification of   Asset Representations Reviewer
    	
8
    
	
Section 4.7.
    	
Inspections of Asset   Representations Reviewer
    	
9
    
	
Section 4.8.
    	
Delegation of   Obligations
    	
9
    
	
Section 4.9.
    	
Confidential   Information
    	
10
    
	
Section 4.10.
    	
Personally Identifiable   Information
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE V   RESIGNATION AND REMOVAL; SUCCESSOR ASSET REPRSENTATIONS REVIWER
    	
13
    
	
Section 5.1.
    	
Eligibility   Requirements for Asset Representations Reviewer
    	
13
    
	
Section 5.2.
    	
Resignation and Removal   of Asset Representations Reviewer
    	
13
    
	
Section 5.3.
    	
Successor Asset   Representations Reviewer
    	
14
    
	
Section 5.4.
    	
Merger, Consolidation   or Succession
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE VI   OTHER AGREEMENTS
    	
14
    
	
Section 6.1.
    	
Independence of Asset   Representations Reviewer
    	
14
    
	
Section 6.2.
    	
No Petition
    	
15
    
	
Section 6.3.
    	
Limitation of Liability   of Owner Trustee
    	
15
    
	
Section 6.4.
    	
Termination of   Agreement
    	
15
    
	
 
    	
 
    	
 
    
	
ARTICLE VII   MISCELLANEOUS PROVISIONS
    	
15
    
	
Section 7.1.
    	
Amendments
    	
15
    
	
Section 7.2.
    	
Assignment; Benefit of   Agreement; Third Party Beneficiaries
    	
16
    
	
Section 7.3.
    	
Notices
    	
16
    
	
Section 7.4.
    	
GOVERNING LAW
    	
16
    
	
Section 7.5.
    	
Submission to   Jurisdiction
    	
16
    
	
Section 7.6.
    	
WAIVER OF JURY TRIAL
    	
16
    
	
Section 7.7.
    	
No Waiver; Remedies
    	
17
    

 

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Section 7.8.
    	
Severability
    	
17
    
	
Section 7.9.
    	
Headings
    	
17
    
	
Section 7.10.
    	
Counterparts
    	
17
    
	
 
    	
 
    	
 
    
	
Schedule   A — Review Materials
    	
 
    
	
Schedule   B — Representations and Warranties and Tests
    	
 
    

 

 

ASSET REPRESENTATIONS REVIEW AGREEMENT, dated as of       , 20   (this “Agreement”), among FORD CREDIT AUTO OWNER TRUST 20  -  , a Delaware statutory trust, as Issuer, FORD MOTOR CREDIT COMPANY LLC, a Delaware limited liability company, as Servicer, and                    , a                    , as Asset Representations Reviewer.

 

BACKGROUND

 

In the normal course of its business, Ford Credit purchases retail installment sale contracts secured by new and used cars, light trucks and utility vehicles from motor vehicle dealers.

 

In connection with a securitization transaction sponsored by Ford Credit, Ford Credit sold a pool of Receivables consisting of retail installment sale contracts to the Depositor, who sold them to the Issuer.

 

The Issuer has granted a security interest in the pool of Receivables to the Indenture Trustee, for the benefit of the Secured Parties, as security for the Notes issued by the Issuer under the Indenture.

 

The Issuer has determined to engage the Asset Representations Reviewer to perform reviews of certain Receivables for compliance with the representations and warranties made by Ford Credit and the Depositor about the Receivables in the pool.

 

The parties agree as follows.

 

ARTICLE I
 USAGE AND DEFINITIONS

 

Section 1.1.                                 Usage and Definitions.  Capitalized terms used but not defined in this Agreement are defined in Appendix A to the Sale and Servicing Agreement, dated as of      , 20  , among Ford Credit Auto Owner Trust 20  -  , as Issuer, Ford Credit Auto Receivables Two LLC, as Depositor, and Ford Motor Credit Company LLC, as Servicer.  Appendix A also contains usage rules that apply to this Agreement.  Appendix A is incorporated by reference into this Agreement.

 

Section 1.2.                                 Additional Definitions.  The following terms have the meanings given below:

 

“Confidential Information” has the meaning stated in Section 4.9(b).

 

“Contract” has the meaning stated in Schedule A.

 

“Information Recipients” has the meaning stated in Section 4.9(a).

 

“Indemnified Parties” has the meaning stated in Section 4.6(a).

 

“Issuer PII” has the meaning stated in Section 4.10(a).

 

“Personally Identifiable Information” or “PII” has the meaning stated in Section 4.10(a).

 

 

“Review” means the performance by the Asset Representations Reviewer of the testing procedures for each Test and each Review Receivable according to Section 3.4.

 

“Review Fee” has the meaning stated in Section 4.3(b).

 

“Review Materials” means, for a Review and a Review Receivable, the documents and other materials listed in Schedule A, as applicable.

 

“Review Report” means, for a Review, the report of the Asset Representations Reviewer as described in Section 3.5.

 

“Test” has the meaning stated in Section 3.4(a).

 

“Test Complete” has the meaning stated in Section 3.4(c).

 

“Test Fail” has the meaning stated in Section 3.4(a).

 

“Test Pass” has the meaning stated in Section 3.4(a).

 

Section 1.3                                    Review Materials and Test Definitions.  Capitalized terms or terms or phrases in quotation marks used in the Tests, if not defined in Appendix A to the Sale and Servicing Agreement or in this Agreement, including Schedule A to this Agreement, refer to sections, titles or terms in the Contract or other Review Materials.

 

ARTICLE II
 ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER

 

Section 2.1.                                 Engagement; Acceptance.  The Issuer engages            to act as the Asset Representations Reviewer for the Issuer.             accepts the engagement and agrees to perform the obligations of the Asset Representations Reviewer on the terms in this Agreement.

 

Section 2.2.                                 Confirmation of Status.  The parties confirm that the Asset Representations Reviewer is not responsible for (a) reviewing the Receivables for compliance with the representations and warranties under the Transaction Documents, except as described in this Agreement, or (b) determining whether noncompliance with the representations or warranties constitutes a breach of the Transaction Documents.

 

ARTICLE III
 ASSET REPRESENTATIONS REVIEW PROCESS

 

Section 3.1.                                 Review Notices.  On receipt of a Review Notice from the Indenture Trustee according to Section 7.2 of the Indenture, the Asset Representations Reviewer will start a Review.  The Asset Representation Reviewer will not be obligated to start a Review until a Review Notice is received.

 

Section 3.2.                                 Identification of Review Receivables.  Within ten Business Days after receipt of a Review Notice, the Servicer will deliver to the Asset Representations Reviewer and the Indenture Trustee a list of the Review Receivables.

 

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Section 3.3.                                 Review Materials.

 

(a)                                 Access to Review Materials.  The Servicer will give the Asset Representations Reviewer access to the Review Materials for all of the Review Receivables within 60 days after receipt of the Review Notice in one or more of the following ways: (i) by providing access to the Servicer’s receivables systems, either remotely or at an office of the Servicer, (ii) by electronic posting to a password-protected website to which the Asset Representations Reviewer has access, (iii) by providing originals or photocopies at an office of the Servicer where the Receivable Files are located or (iv) in another manner agreed by the Servicer and the Asset Representations Reviewer.  The Servicer may redact or remove Personally Identifiable Information from the Review Materials without changing the meaning or usefulness of the Review Materials for the Review.

 

(b)                                 Missing or Insufficient Review Materials.  The Asset Representation Reviewer will review the Review Materials to determine if any Review Materials are missing or insufficient for the Asset Representations Reviewer to perform any Test.  If the Asset Representation Reviewer determines any missing or insufficient Review Materials, the Asset Representations Reviewer will notify the Servicer promptly, and in any event no less than 20 days before completing the Review.  The Servicer will have 15 days to give the Asset Representations Reviewer access to the missing Review Materials or other documents or information to correct the insufficiency.  If the missing Review Materials or other documents have not been provided by the Servicer within 15 days, the related Review Receivable will have a Test Fail for the Test or Tests that require use of the missing or insufficient Review Materials.  If the Contract for any Review Receivable is not provided or is illegible, the Asset Representations Reviewer will be unable to perform any Tests and the related Review Receivable will have an overall Test Fail for all Tests.  In either of these cases,  the Test or Tests will be considered completed and the Review Report will report a Test Fail for the related Review Receivable or applicable representation or warranty and the reason for the Test Fail.

 

Section 3.4.                                 Performance of Reviews.

 

(a)                                 Test Procedures.  For a Review, the Asset Representations Reviewer will perform for each Review Receivable the procedures listed under “Tests” in Schedule B for each representation and warranty (each, a “Test”), using the Review Materials necessary to perform the procedures as stated in the Test.  For each Test and Review Receivable, the Asset Representations Reviewer will determine if the Test has been satisfied (a “Test Pass”) or if the Test has not been satisfied (a “Test Fail”).

 

(b)                                 Review Period.  The Asset Representations Reviewer will complete the Review of all of the Review Receivables within 60 days after receiving access to the Review Materials under Section 3.3(a).  However, if missing or additional Review Materials are provided to the Asset Representations Reviewer under Section 3.3(b), the Review period will be extended for an additional 30 days.

 

(c)                                  Completion of Review for Certain Review Receivables.  Following the delivery of the list of the Review Receivables and before the delivery of the Review Report by the Asset

 

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Representations Reviewer, the Servicer may notify the Asset Representations Reviewer if a Review Receivable is paid in full by the Obligor or purchased from the Issuer by the Sponsor, the Depositor or the Servicer according to the Transaction Documents.  On receipt of notice, the Asset Representations Reviewer will immediately terminate all Tests of such Receivables and the Review of such Receivables will be considered complete (a “Test Complete”).  In this case, the Review Report will indicate a Test Complete for the Receivables and the related reason.

 

(d)                                 Previously Reviewed Receivable; Duplicative Tests.  If any Review Receivable was included in a prior Review, the Asset Representations Reviewer will not perform any Tests on it, but will include the results of the previous Tests in the Review Report for the current Review.  If the same Test is required for more than one representation or warranty listed on Schedule B, the Asset Representations Reviewer will only perform the Test once for each Review Receivable but will report the results of the Test for each applicable representation or warranty on the Review Report.

 

(e)                                  Termination of Review.  If a Review is in process and the Notes will be paid in full on the next Payment Date, the Servicer will notify the Asset Representations Reviewer and the Indenture Trustee no less than ten days before that Payment Date.  On receipt of notice, the Asset Representations Reviewer will terminate the Review immediately and will not be obligated to deliver a Review Report.

 

Section 3.5.                                 Review Reports.  Within five days after the end of the Review period under Section 3.4(b), the Asset Representations Reviewer will deliver to the Issuer, the Servicer and the Indenture Trustee a Review Report indicating for each Review Receivable whether there was a Test Pass or a Test Fail for each Test, or whether the Review Receivable was an overall Test Fail (for missing or illegible Contract) or a Test Complete.  For each Test Fail, overall Test Fail or Test Complete, the Review Report will indicate the related reason.  The Review Report will contain a summary of the Review results to be included in the Issuer’s Form 10-D report for the Collection Period in which the Review Report is received.  The Asset Representations Reviewer will ensure that the Review Report does not contain any Issuer PII.  On reasonable request of the Servicer, the Asset Representations Reviewer will provide additional detail on the Test results.

 

Section 3.6.                                 Review Representatives.

 

(a)                                 Servicer Representative.  The Servicer will designate one or more representatives who will be available to assist the Asset Representations Reviewer in performing the Review, including responding to requests and answering questions from the Asset Representations Reviewer about access to Review Materials on the Servicer’s originations, receivables or other systems, obtaining missing or insufficient Review Materials and/or providing clarification of any Review Materials or Tests.

 

(b)                                 Asset Representations Reviewer Representative.  The Asset Representations Reviewer will designate one or more representatives who will be available to the Issuer and the Servicer during the performance of a Review.

 

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(c)                                  Questions About Review.  The Asset Representations Reviewer will make appropriate personnel available to respond in writing to written questions or requests for clarification of any Review Report from the Indenture Trustee or the Servicer until the earlier of (i) the payment in full of the Notes and (ii) one year after the delivery of the Review Report.  The Asset Representations Reviewer will not be obligated to respond to questions or requests for clarification from Noteholders or any other Person and will direct such Persons to submit written questions or requests to the Indenture Trustee.

 

Section 3.7.                                 Dispute Resolution.  If a Receivable that was Reviewed by the Asset Representations Reviewer is the subject of a dispute resolution proceeding under Section 2.6 of the Sale and Servicing Agreement, the Asset Representations Reviewer will participate in the dispute resolution proceeding on request of a party to the proceeding.  The reasonable expenses of the Asset Representations Reviewer for its participation in any dispute resolution proceeding will be considered expenses of the requesting party for the dispute resolution and will be paid by a party to the dispute resolution as determined by the mediator or arbitrator for the dispute resolution according to Section 2.6 of the Sale and Servicing Agreement.  If not paid by a party to the dispute resolution, the expenses will be reimbursed by the Issuer according to Section 4.3(d).

 

Section 3.8.                                 Limitations on Review Obligations.

 

(a)                                 Review Process Limitations.  The Asset Representations Reviewer is not obligated to:

 

(i)                       determine whether a Delinquency Trigger has occurred or whether the required percentage of Noteholders has voted to direct a Review under the Indenture, and may rely on the information in any Review Notice delivered by the Indenture Trustee;

 

(ii)                    determine which Receivables are subject to a Review, and may rely on the lists of Review Receivables provided by the Servicer;

 

(iii)                 obtain or confirm the validity of the Review Materials and no liability for any errors in the Review Materials and may rely on the accuracy and completeness of the Review Materials;

 

(iv)                obtain missing or insufficient Review Materials from any party or any other source; or

 

(v)                   take any action or cause any other party to take any action under any of the Transaction Documents or otherwise to enforce any remedies against any Person for breaches of representations or warranties about the Review Receivables.

 

(b)                                 Testing Procedure Limitations.  The Asset Representations Reviewer will only be required to perform the testing procedures listed under “Tests” in Schedule A, and will not be obligated to perform additional procedures on any Review Receivable or to provide any information other than a Review Report indicating for each Review Receivable whether there was a Test Pass or a Test Fail for each Test, or whether the Review Receivable was a Test Complete and the related reason.  However, the Asset Representations Reviewer may provide

 

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additional information about any Review Receivable that it determines in good faith to be material to the Review.

 

ARTICLE IV
 ASSET REPRESENTATIONS REVIEWER

 

Section 4.1.                                 Representations and Warranties .  The Asset Representations Reviewer represents and warrants to the Issuer as of the Closing Date:

 

(a)                                 Organization and Qualification.  The Asset Representations Reviewer is duly organized and validly existing as a              in good standing under the laws of             .  The Asset Representations Reviewer is qualified as a foreign             in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of its properties or the conduct of its activities requires the qualification, license or approval, unless the failure to obtain the qualifications, licenses or approvals would not reasonably be expected to have a material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under this Agreement.

 

(b)                                 Power, Authority and Enforceability.  The Asset Representations Reviewer has the power and authority to execute, deliver and perform its obligations under this Agreement.  The Asset Representations Reviewer has authorized the execution, delivery and performance of this Agreement.  This Agreement is the legal, valid and binding obligation of the Asset Representations Reviewer enforceable against the Asset Representations Reviewer, except as may be limited by insolvency, bankruptcy, reorganization or other laws relating to the enforcement of creditors’ rights or by general equitable principles.

 

(c)                                  No Conflicts and No Violation.  The completion of the transactions  contemplated by this Agreement and the performance of the Asset Representations Reviewer’s obligations under this Agreement will not (i) conflict with, or be a breach or default under, any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document under which the Asset Representations Reviewer is a debtor or guarantor, (ii) result in the creation or imposition of a Lien on the properties or assets of the Asset Representations Reviewer under the terms of any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document, (iii) violate the organizational documents of the Asset Representations Reviewer or (iv) violate a law or, to the Asset Representations Reviewer’s knowledge, an order, rule or regulation of a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Asset Representations Reviewer or its properties that applies to the Asset Representations Reviewer, which, in each case, would reasonably be expected to have a material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under this Agreement.

 

(d)                                 No Proceedings.  To the Asset Representations Reviewer’s knowledge, there are no proceedings or investigations pending or threatened in writing before a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Asset Representations Reviewer or its properties (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the completion of the transactions contemplated by this Agreement or (iii) seeking any determination or ruling that would reasonably be expected to

 

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have a material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under, or the validity or enforceability of, this Agreement.

 

(e)                                  Eligibility.  The Asset Representations Reviewer meets the eligibility requirements in Section 5.1.

 

Section 4.2.                                 Covenants.  The Asset Representations Reviewer covenants and agrees that:

 

(a)                                 Eligibility.  It will notify the Issuer and the Servicer promptly if it no longer meets the eligibility requirements in Section 5.1.

 

(b)                                 Review Systems; Personnel.  It will maintain business process management and/or other systems necessary to ensure that it can perform each Test and, on execution of this Agreement, will load each Test into these systems. The Asset Representations Reviewer will ensure that these systems allow for each Review Receivable and the related Review Materials to be individually tracked and stored as contemplated by this Agreement.  The Asset Representations Reviewer will maintain adequate staff that is properly trained to conduct Reviews as required by this Agreement.

 

(c)                                  Maintenance of Review Materials.  It will maintain copies of any Review Materials, Review Reports and other documents relating to a Review, including internal correspondence and work papers, for a period of two years after the termination of this Agreement.

 

Section 4.3.                                 Fees and Expenses.

 

(a)                                 Annual Fee.  The Issuer will, or will cause the Administrator to, pay the Asset Representations Reviewer, as compensation for agreeing to act as the Asset Representations Reviewer under this Agreement, an annual fee separately agreed to by the Issuer and the Asset Representations Reviewer.  The annual fee will be paid as agreed by the Issuer and the Asset Representations Reviewer until this Agreement is terminated.

 

(b)                                 Review Fee.  Following the completion of a Review and the delivery to the Indenture Trustee of the Review Report, or the termination of a Review according to Section 3.4(e), and the delivery to the Servicer of a detailed invoice, the Asset Representations Reviewer will be entitled to a fee of $      for each Review Receivable for which the Review was started (the “Review Fee”).  However, no Review Fee will be charged for any Review Receivable which was included in a prior Review or for which no Tests were completed prior to the Asset Representations Reviewer being notified of a termination of the Review according to Section 3.4(e) or due to missing or insufficient Review Materials under Section 3.3(b).  If the detailed invoice is submitted on or before the first day of a month, the Review Fee will be paid by the Issuer according to the priority of payments in Section 8.2 of the Indenture starting on or before the Payment Date in that month.  However, if a Review is terminated according to Section 3.4(e), the Asset Representations Reviewer must submit its invoice for the Review Fee for the terminated Review no later than five Business Days before the final Payment Date to be reimbursed no later than the final Payment Date.

 

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(c)                                  Reimbursement of Travel Expenses.  If the Servicer provides access to the Review Materials at one of its properties, the Issuer will reimburse the Asset Representations Reviewer for its reasonable travel expenses incurred in connection with the Review upon receipt of a detailed invoice.

 

(d)                                 Dispute Resolution Expenses.  If the Asset Representations Reviewer participates in a dispute resolution proceeding under Section 3.7 and its reasonable expenses for participating in the proceeding are not paid by a party to the dispute resolution within [90] days after the end of the proceeding, the Issuer will reimburse the Asset Representations Reviewer for such expenses upon receipt of a detailed invoice.

 

Section 4.4.                                 Limitation on Liability.  The Asset Representations Reviewer will not be liable to any Person for any action taken, or not taken, in good faith under this Agreement or for errors in judgment.  However, the Asset Representations Reviewer will be liable for its willful misconduct, bad faith or negligence in performing its obligations under this Agreement.  In no event will the Asset Representations Reviewer be liable for special, indirect or consequential losses or damages (including lost profit), even if the Asset Representations Reviewer has been advised of the likelihood of the loss or damage and regardless of the form of action.

 

Section 4.5.                                 Indemnification by Asset Representations Reviewer .  The Asset Representations Reviewer will indemnify each of the Issuer, the Depositor, the Servicer, the Owner Trustee and the Indenture Trustee and their respective directors, officers, employees and agents for all fees, expenses, losses, damages and liabilities resulting from (a) the willful misconduct, bad faith or negligence of the Asset Representations Reviewer in performing its obligations under this Agreement or (b) the Asset Representations Reviewer’s breach of any of its representations or warranties in this Agreement.  The Asset Representations Reviewer’s obligations under this Section 4.5 will survive the termination of this Agreement, the termination of the Issuer and the resignation or removal of the Asset Representations Reviewer.

 

Section 4.6.                                 Indemnification of Asset Representations Reviewer.

 

(a)                                 Indemnification.  The Issuer will, or will cause the Administrator to, indemnify the Asset Representations Reviewer and its officers, directors, employees and agents (each, an “Indemnified Person”), for all fees, expenses, losses, damages and liabilities resulting from the performance of its obligations under this Agreement (including the fees and expenses of defending itself against any loss, damage or liability), but excluding any fee, expense, loss, damage or liability resulting from (i) the Asset Representations Reviewer’s willful misconduct, bad faith or negligence or (ii) the Asset Representations Reviewer’s breach of any of its representations or warranties in this Agreement.

 

(b)                                 Proceedings.  Promptly on receipt by an Indemnified Person of notice of a Proceeding against it, the Indemnified Person will, if a claim is to be made under Section 4.6(a), notify the Issuer and the Administrator of the Proceeding.  The Issuer or the Administrator may participate in and assume the defense and settlement of a Proceeding at its expense.  If the Issuer or the Administrator notifies the Indemnified Person of its intention to assume the defense of the Proceeding with counsel reasonably satisfactory to the Indemnified Person, and so long as the Issuer or the Administrator assumes the defense of the Proceeding in a manner reasonably

 

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satisfactory to the Indemnified Person, the Issuer and the Administrator will not be liable for fees and expenses of counsel to the Indemnified Person unless there is a conflict between the interests of the Issuer or the Administrator, as applicable, and an Indemnified Person.  If there is a conflict, the Issuer or the Administrator will pay for the reasonable fees and expenses of separate counsel to the Indemnified Person.  No settlement of a Proceeding may be made without the approval of the Issuer and the Administrator and the Indemnified Person, which approval will not be unreasonably withheld.

 

(c)                                  Survival of Obligations.  The Issuer’s and the Administrator’s obligations under this Section 4.6 will survive the resignation or removal of the Asset Representations Reviewer and the termination of this Agreement.

 

(d)                                 Repayment.  If the Issuer or the Administrator makes any payment under this Section 4.6 and the Indemnified Person later collects any of the amounts for which the payments were made to it from others, the Indemnified Person will promptly repay the amounts to the Issuer or the Administrator, as applicable.

 

Section 4.7.                                 Inspections of Asset Representations Reviewer.  The Asset Representations Reviewer agrees that, with reasonable prior notice not more than once during any year, it will permit authorized representatives of the Issuer, the Servicer or the Administrator, during the Asset Representations Reviewer’s normal business hours, to examine and review the books of account, records, reports and other documents and materials of the Asset Representations Reviewer relating to (a) the performance of the Asset Representations Reviewer’s obligations under this Agreement, (b) payments of fees and expenses of the Asset Representations Reviewer for its performance and (c) a claim made by the Asset Representations Reviewer under this Agreement.  In addition, the Asset Representations Reviewer will permit the Issuer’s, the Servicer’s or the Administrator’s representatives to make copies and extracts of any of those documents and to discuss them with the Asset Representations Reviewer’s officers and employees.  Each of the Issuer, the Servicer and the Administrator will, and will cause its authorized representatives to, hold in confidence the information except if disclosure may be required by law or if the Issuer, the Servicer or the Administrator reasonably determines that it is required to make the disclosure under this Agreement or the other Transaction Documents.  The Asset Representations Reviewer will maintain all relevant books, records, reports and other documents and materials for a period of at least two years after the termination of its obligations under this Agreement.

 

Section 4.8.                                 Delegation of Obligations.  The Asset Representations Reviewer may not delegate or subcontract its obligations under this Agreement to any Person without the consent of the Issuer and the Servicer.

 

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Section 4.9.                                 Confidential Information.

 

(a)                                 Treatment.  The Asset Representations Reviewer agrees to hold and treat Confidential Information given to it under this Agreement in confidence and under the terms and conditions of this Section 4.9, and will implement and maintain safeguards to further assure the confidentiality of the Confidential Information.  The Confidential Information will not, without the prior consent of the Issuer and the Servicer, be disclosed or used by the Asset Representations Reviewer, or its officers, directors, employees, agents, representatives or affiliates, including legal counsel (collectively, the “Information Recipients”) other than for the purposes of performing Reviews of Review Receivables or performing its obligations under this Agreement.  The Asset Representations Reviewer agrees that it will not, and will cause its Affiliates to not (i) purchase or sell securities issued by Ford Credit or its Affiliates or special purpose entities on the basis of Confidential Information or (ii) use the Confidential Information for the preparation of research reports, newsletters or other publications or similar communications.

 

(b)                                 Definition.  “Confidential Information” means oral, written and electronic materials (irrespective of its source or form of communication) furnished before, on or after the date of this Agreement to the Asset Representations Reviewer for the purposes contemplated by this Agreement, including:

 

(i)                       lists of Review Receivables and any related Review Materials;

 

(ii)                    origination and servicing guidelines, policies and procedures, and form contracts; and

 

(iii)                 notes, analyses, compilations, studies or other documents or records prepared by the Servicer, which contain information supplied by or on behalf of the Servicer or its representatives.

 

However, Confidential Information will not include information that (A) is or becomes generally available to the public other than as a result of disclosure by the Information Recipients, (B) was available to, or becomes available to, the Information Recipients on a non-confidential basis from a Person or entity other than the Issuer or the Servicer before its disclosure to the Information Recipients who, to the knowledge of the Information Recipient is not bound by a confidentiality agreement with the Issuer or the Servicer and is not prohibited from transmitting the information to the Information Recipients, (C) is independently developed by the Information Recipients without the use of the Confidential Information, as shown by the Information Recipients’ files and records or other evidence in the Information Recipients’ possession or (D) the Issuer or the Servicer provides permission to the applicable Information Recipients to release.

 

(c)                                  Protection.  The Asset Representations Reviewer will take reasonable measures to protect the secrecy of and avoid disclosure and unauthorized use of Confidential Information, including those measures that it takes to protect its own confidential information and not less than a reasonable standard of care.  The Asset Representations Reviewer acknowledges that Personally Identifiable Information is also subject to the additional requirements in Section 4.10.

 

(d)                                 Disclosure.  If the Asset Representations Reviewer is required by applicable law, regulation, rule or order issued by an administrative, governmental, regulatory or judicial authority to disclose part of the Confidential Information, it may disclose the Confidential Information.  However, before a required disclosure, the Asset Representations Reviewer, if permitted by law, regulation, rule or order, will use its reasonable efforts to provide the Issuer and the Servicer with notice of the requirement and will cooperate, at the Servicer’s expense, in the Issuer’s and the Servicer’s pursuit of a proper protective order or other relief for the disclosure

 

10

 

of the Confidential Information.  If the Issuer or the Servicer is unable to obtain a protective order or other proper remedy by the date that the information is required to be disclosed, the Asset Representations Reviewer will disclose only that part of the Confidential Information that it is advised by its legal counsel it is legally required to disclose.

 

(e)                                  Responsibility for Information Recipients.  The Asset Representations Reviewer will be responsible for a breach of this Section 4.9 by its Information Recipients.

 

(f)                                   Violation.  The Asset Representations Reviewer agrees that a violation of this Agreement may cause irreparable injury to the Issuer and the Servicer and the Issuer and the Servicer may seek injunctive relief in addition to legal remedies.  If an action is initiated by the Issuer or the Servicer to enforce this Section 4.9, the prevailing party will be reimbursed for its fees and expenses, including reasonable attorney’s fees, incurred for the enforcement.

 

Section 4.10.                          Personally Identifiable Information.

 

(a)                                 Definitions.  “Personally Identifiable Information” or “PII” means information in any format about an identifiable individual, including, name, address, phone number, e-mail address, account number(s), identification number(s), any other actual or assigned attribute associated with or identifiable to an individual and any information that when used separately or in combination with other information could identify an individual.  “Issuer PII” means PII furnished by the Issuer, the Servicer or their Affiliates to the Asset Representations Reviewer and PII developed or otherwise collected or acquired by the Asset Representations Reviewer in performing its obligations under this Agreement.

 

(b)                                 Use of Issuer PII.  The Issuer does not grant the Asset Representations Reviewer any rights to Issuer PII except as provided in this Agreement.  The Asset Representations Reviewer will use Issuer PII only to perform its obligations under this Agreement or as specifically directed in writing by the Issuer and will only reproduce Issuer PII to the extent necessary for these purposes.  The Asset Representations Reviewer must comply with all laws applicable to PII, Issuer PII and the Asset Representations Reviewer’s business, including any legally required codes of conduct, including those relating to privacy, security and data protection.  The Asset Representations Reviewer will protect and secure Issuer PII.  The Asset Representations Reviewer will implement privacy or data protection policies and procedures that comply with applicable law and this Agreement.  The Asset Representations Reviewer will implement and maintain reasonable and appropriate practices, procedures and systems, including administrative, technical and physical safeguards to (i) protect the security, confidentiality and integrity of Issuer PII, (ii) ensure against anticipated threats or hazards to the security or integrity of Issuer PII, (iii) protect against unauthorized access to or use of Issuer PII and (iv) otherwise comply with its obligations under this Agreement.  These safeguards include a written data security plan, employee training, information access controls, restricted disclosures, systems protections (e.g., intrusion protection, data storage protection and data transmission protection) and physical security measures.

 

(c)                                  Additional Limitations.  In addition to the use and protection requirements described in Section 4.10(b), the Asset Representations Reviewer’s disclosure of Issuer PII is also subject to the following requirements:

 

11

 

(i)                       The Asset Representations Reviewer will not disclose Issuer PII to its personnel or allow its personnel access to Issuer PII except (A) for the Asset Representations Reviewer personnel who require Issuer PII to perform a Review, (B) with the prior consent of the Issuer or (C) as required by applicable law.  When permitted, the disclosure of or access to Issuer PII will be limited to the specific information necessary for the individual to complete the assigned task.  The Asset Representations Reviewer will inform personnel with access to Issuer PII of the confidentiality requirements in this Agreement and train its personnel with access to Issuer PII on the proper use and protection of Issuer PII.

 

(ii)                    The Asset Representations Reviewer will not sell, disclose, provide or exchange Issuer PII with or to any third party without the prior consent of the Issuer.

 

(d)                                 Notice of Breach.  The Asset Representations Reviewer will notify the Issuer promptly in the event of an actual or reasonably suspected security breach, unauthorized access, misappropriation or other compromise of the security, confidentiality or integrity of Issuer PII and, where applicable, immediately take action to prevent any further breach.

 

(e)                                  Return or Disposal of Issuer PII.  Except where return or disposal is prohibited by applicable law, promptly on the earlier of the completion of the Review or the request of the Issuer, all Issuer PII in any medium in the Asset Representations Reviewer’s possession or under its control will be (i) destroyed in a manner that prevents its recovery or restoration or (ii) if so directed by the Issuer, returned to the Issuer without the Asset Representations Reviewer retaining any actual or recoverable copies, in both cases, without charge to the Issuer.  Where the Asset Representations Reviewer retains Issuer PII, the Asset Representations Reviewer will limit the Asset Representations Reviewer’s further use or disclosure of Issuer PII to that required by applicable law.

 

(f)                                   Compliance; Modification.  The Asset Representations Reviewer will cooperate with and provide information to the Issuer regarding the Asset Representations Reviewer’s compliance with this Section 4.10.  The Asset Representations Reviewer and the Issuer agree to modify this Section 4.10 as necessary for either party to comply with applicable law.

 

(g)                                  Audit of Asset Representations Reviewer.  The Asset Representations Reviewer will permit the Issuer and its authorized representatives to audit the Asset Representations Reviewer’s compliance with this Section 4.10 during the Asset Representations Reviewer’s normal business hours on reasonable advance notice to the Asset Representations Reviewer, and not more than once during any year unless circumstances necessitate additional audits.  The Issuer agrees to make reasonable efforts to schedule any audit described in this Section 4.10 with the inspections described in Section 4.7.  The Asset Representations Reviewer will also permit the Issuer during normal business hours on reasonable advance written notice to audit any service providers used by the Asset Representations Reviewer to fulfill the Asset Representations Reviewer’s obligations under this Agreement.

 

(h)                                 Affiliates and Third Parties.  If the Asset Representations Reviewer processes the PII of the Issuer’s Affiliates or a third party when performing a Review, and if such Affiliate or third party is identified to the Asset Representations Reviewer, such Affiliate or third party is an

 

12

 

intended third-party beneficiary of this Section 4.10, and this Agreement is intended to benefit the Affiliate or third party.  The Affiliate or third party may enforce the PII related terms of this Section 4.10 against the Asset Representations Reviewer as if each were a signatory to this Agreement.

 

ARTICLE V
 RESIGNATION AND REMOVAL;
 SUCCESSOR ASSET REPRSENTATIONS REVIWER

 

Section 5.1.                                 Eligibility Requirements for Asset Representations Reviewer.  The Asset Representations Reviewer must be a Person who (a) is not Affiliated with the Sponsor, the Depositor, the Servicer, the Indenture Trustee, the Owner Trustee or any of their Affiliates and (b) was not, and is not Affiliated with a Person that was, engaged by the Sponsor or any Underwriter to perform any due diligence on the Receivables prior to the Closing Date.

 

Section 5.2.                                 Resignation and Removal of Asset Representations Reviewer.

 

(a)                                 No Resignation.  The Asset Representations Reviewer will not resign as Asset Representations Reviewer unless it determines it is legally unable to perform its obligations under this Agreement and there is no reasonable action that it could take to make the performance of its obligations under this Agreement permitted under applicable law.  The Asset Representations Reviewer will deliver a notice of its resignation to the Issuer and the Servicer, together with an Opinion of Counsel supporting its determination.

 

(b)                                 Removal.  If any of the following events occur, the Issuer, by notice to the Asset Representations Reviewer, may remove the Asset Representations Reviewer and terminate its rights and obligations under this Agreement:

 

(i)                       the Asset Representations Reviewer no longer meets the eligibility requirements in Section 5.1;

 

(ii)                    the Asset Representations Reviewer breaches of any of its representations, warranties, covenants or obligations in this Agreement; or

 

(iii)                 an Insolvency Event of the Asset Representations Reviewer occurs.

 

(c)                                  Notice of Resignation or Removal.  The Issuer will notify the Servicer, the Owner Trustee and the Indenture Trustee of any resignation or removal of the Asset Representations Reviewer.

 

(d)                                 Continue to Perform After Resignation or Removal.  No resignation or removal of the Asset Representations Reviewer will be effective, and the Asset Representations Reviewer will continue to perform its obligations under this Agreement, until a successor Asset Representations Reviewer has accepted its engagement according to Section 5.3(b).

 

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Section 5.3.                                 Successor Asset Representations Reviewer .

 

(a)                                 Engagement of Successor Asset Representations Reviewer.  Following the resignation or removal of the Asset Representations Reviewer, the Issuer will engage a successor Asset Representations Reviewer who meets the eligibility requirements of Section 5.1.

 

(b)                                 Effectiveness of Resignation or Removal.  No resignation or removal of the Asset Representations Reviewer will be effective until the successor Asset Representations Reviewer has executed and delivered to the Issuer and the Servicer an agreement accepting its engagement and agreeing to perform the obligations of the Asset Representations Reviewer under this Agreement or entering into a new agreement with the Issuer on substantially the same terms as this Agreement.

 

(c)                                  Transition and Expenses.  If the Asset Representations Reviewer resigns or is removed, the Asset Representations Reviewer will cooperate with the Issuer and take all actions reasonably requested to assist the Issuer in making an orderly transition of the Asset Representations Reviewer’s rights and obligations under this Agreement to the successor Asset Representations Reviewer.  The Asset Representations Reviewer will pay the reasonable expenses of transitioning the Asset Representations Reviewer’s obligations under this Agreement and preparing the successor Asset Representations Reviewer to take on the obligations on receipt of an invoice with reasonable detail of the expenses from the Issuer or the successor Asset Representations Reviewer.

 

Section 5.4.                                 Merger, Consolidation or Succession.  Any Person (a) into which the Asset Representations Reviewer is merged or consolidated, (b) resulting from any merger or consolidation to which the Asset Representations Reviewer is a party or (c) succeeding to the business of the Asset Representations Reviewer, if that Person meets the eligibility requirements in Section 5.1, will be the successor to the Asset Representations Reviewer under this Agreement.  Such Person will execute and deliver to the Issuer and the Servicer an agreement to assume the Asset Representations Reviewer’s obligations under this Agreement (unless the assumption happens by operation of law).

 

ARTICLE VI
 OTHER AGREEMENTS

 

Section 6.1.                                 Independence of Asset Representations Reviewer.  The Asset Representations Reviewer will be an independent contractor and will not be subject to the supervision of the Issuer or the Owner Trustee for the manner in which it accomplishes the performance of its obligations under this Agreement.  Unless authorized by the Issuer or the Owner Trustee, respectively, the Asset Representations Reviewer will have no authority to act for or represent the Issuer or the Owner Trustee and will not be considered an agent of the Issuer or the Owner Trustee.  Nothing in this Agreement will make the Asset Representations Reviewer and either of the Issuer or the Owner Trustee members of any partnership, joint venture or other separate entity or impose any liability as such on any of them.

 

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Section 6.2.                                 No Petition.  Each of the parties agrees that, before the date that is one year and one day (or, if longer, any applicable preference period) after payment in full of (a) all securities issued by the Depositor or by a trust for which the Depositor was a depositor or (b) the Notes, it will not start or pursue against, or join any other Person in starting or pursuing against (i) the Depositor or (ii) the Issuer, respectively, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law.  This Section 6.2 will survive the termination of this Agreement.

 

Section 6.3.                                 Limitation of Liability of Owner Trustee .  This Agreement has been signed on behalf of the Issuer by                                 not in its individual capacity but solely in its capacity as Owner Trustee of the Issuer.  In no event will                               in its individual capacity or a beneficial owner of the Issuer be liable for the Issuer’s obligations under this Agreement.  For all purposes under this Agreement, the Owner Trustee will be subject to, and entitled to the benefits of, the Trust Agreement.

 

Section 6.4.                                 Termination of Agreement.  This Agreement will terminate, except for the obligations under Section 4.6, on the earlier of (a) the payment in full of all outstanding Notes and the satisfaction and discharge of the Indenture and (b) the date the Issuer is terminated under the Trust Agreement.

 

ARTICLE VII
 MISCELLANEOUS PROVISIONS

 

Section 7.1.                                 Amendments.

 

(a)                                 The parties may amend this Agreement:

 

(i)                       to clarify an ambiguity, correct an error or correct or supplement any term of this Agreement that may be defective or inconsistent with the other terms of this Agreement or to provide for, or facilitate the acceptance of this Agreement by, a successor Asset Representations Reviewer, in each case without the consent of the Noteholders or any other Person;

 

(ii)                    to add, change or eliminate terms of this Agreement, in each case without the consent of the Noteholders or any other Person, if the Administrator delivers an Officer’s Certificate to the Issuer, the Owner Trustee and the Indenture Trustee stating that the amendment will not have a material adverse effect on the Noteholders; or

 

(iii)                 to add, change or eliminate terms of this Agreement for which an Officer’s Certificate is not or cannot be delivered under Section 7.1(a)(ii), with the consent of the Noteholders of a majority of the Note Balance of each Class of Notes Outstanding (with each affected Class voting separately, except that all Noteholders of Class A Notes will vote together as a single class).

 

(b)                                 Notice of Amendments.  The Administrator will notify the Rating Agencies in advance of any amendment.  Promptly after the execution of an amendment, the Administrator will deliver a copy of the amendment to the Rating Agencies.

 

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Section 7.2.                                 Assignment; Benefit of Agreement; Third Party Beneficiaries.

 

(a)                                 Assignment.  Except as stated in Section 5.4, this Agreement may not be assigned by the Asset Representations Reviewer without the consent of the Issuer and the Servicer.

 

(b)                                 Benefit of Agreement; Third-Party Beneficiaries.  This Agreement is for the benefit of and will be binding on the parties and their permitted successors and assigns.  The Owner Trustee and the Indenture Trustee, for the benefit of the Noteholders, will be third-party beneficiaries of this Agreement and may enforce this Agreement against the Asset Representations Reviewer and the Servicer.  No other Person will have any right or obligation under this Agreement.

 

Section 7.3.                                 Notices.

 

(a)                                 Notices to Parties.  All notices, requests, demands, consents, waivers or other communications to or from the parties must be in writing and will be considered given:

 

(i)                       for overnight mail, on delivery or, for registered first class mail, postage prepaid, three days after deposit in the mail;

 

(ii)                    for a fax, when receipt is confirmed by telephone, reply email or reply fax from the recipient;

 

(iii)                 for an email, when receipt is confirmed by telephone or reply email from the recipient; and

 

(iv)                for an electronic posting to a password-protected website to which the recipient has access, on delivery of an email (without the requirement of confirmation of receipt) stating that the electronic posting has occurred.

 

(b)                                 Notice Addresses.  Any notice, request, demand, consent, waiver or other communication will be addressed as stated in Schedule B to the Sale and Servicing Agreement or to another address as a party may give by notice to the other parties.

 

Section 7.4.                                 GOVERNING LAW.  THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF NEW YORK.

 

Section 7.5.                                 Submission to Jurisdiction.  Each party submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for legal proceedings relating to this Agreement.  Each party irrevocably waives, to the fullest extent permitted by law, any objection that it may now or in the future have to the venue of a proceeding brought in such a court and any claim that the proceeding has been brought in an inconvenient forum.

 

Section 7.6.                                 WAIVER OF JURY TRIAL.  EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN LEGAL PROCEEDING RELATING TO THIS AGREEMENT.

 

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Section 7.7.                                 No Waiver; Remedies.  No party’s failure or delay in exercising a power, right or remedy under this Agreement will operate as a waiver.  No single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power, right or remedy or the exercise of any other power, right or remedy.  The powers, rights and remedies under this Agreement are in addition to any powers, rights and remedies under law.

 

Section 7.8.                                 Severability.  If a part of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining Agreement and will not affect the validity, legality or enforceability of the remaining Agreement.

 

Section 7.9.                                 Headings.  The headings in this Agreement are included for convenience and will not affect the meaning or interpretation of this Agreement.

 

Section 7.10.                          Counterparts.  This Agreement may be executed in multiple counterparts. Each counterpart will be an original and all counterparts will together be one document.

 

[Remainder of Page Left Blank]

 

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EXECUTED BY:

 

	
 
    	
FORD   CREDIT AUTO OWNER TRUST 20    -    ,
    
	
 
    	
 
    	
as   Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
                                      , not in its individual capacity, but   solely as Owner Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
FORD   MOTOR CREDIT COMPANY LLC,
    
	
 
    	
 
    	
as   Servicer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
                                         ,
    
	
 
    	
 
    	
as   Asset Representations Reviewer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Asset Representations Review Agreement]

 

 

Schedule A

 

Review Materials

 

1.                                      A copy of the Receivable File that includes the following documents, if applicable:

 

(a)                                 The retail installment sale contract or similar document that evidences the Receivable (the “Contract”)

(b)                                 The following documents related to the Contract (collectively, the “Amendments”):

 

(i)                                     Any correction notices to the Contract

(ii)                                  Any modification agreements completed by the parties to the Contract

 

(c)                                  The certificate of title, motor vehicle lien statement, application for title, application for registration for motor vehicle, certificate of origin or manufacturer statement of origin for a vehicle, or other evidence (including eAtlas reporting for electronic titling states) showing the security interest in the Financed Vehicle (collectively, the “Title Documents”)

(d)                                 Any ancillary documents for credit insurance, service contracts or other products and services (collectively, the “Ancillary Documents”)

(e)                                  Military orders

(f)                                   The credit application

(g)                                  State specific documents related to the Contract

 

2.                                      Copies of applicable Ford Credit procedures, as of the date of the Contract, including:

 

(a)                                 Ford Credit’s procedure listing approved contract forms as of the date of the Contract (the “List of Approved Contract Forms”)

(b)                                 Ford Credit’s procedure listing acceptable name variations of Ford Credit and Lincoln Automotive Financial Services (the “List of Acceptable Name Variations”)

(c)                                  Ford Credit’s procedure listing approved providers and form numbers for service contracts and other products (the “List of Approved Products”)

 

3.                                      A copy of the Agreement to Terms of Assignment (the “Dealer Assignment”)

4.                                      Applicable screen prints from Ford Credit’s receivables systems

 

SA-1

 

Schedule B

 

Representations and Warranties and Tests

 

	
Representation and Warranty
   (Section references are to the
   Receivables Purchase Agreement)
    	
 
    	
Tests
    
	
Section 3.3(a) - Origination.   The Receivable was originated by a Dealer in the United States under United   States law for the retail sale of a Financed Vehicle in the ordinary course   of the Dealer’s business. The Receivable was signed by the Dealer and the Obligor.   The Receivable was purchased by the Sponsor from the Dealer and validly   assigned by the Dealer to the Sponsor.
    	
 
    	
Test 3.3(a) — 1: Originated in United States

 

Observe the address of the Dealer on the Contract   and confirm the address is in the United States. If confirmed, it will be a   Test Pass.

 

Test 3.3(a) — 2: Contract Signed

 

Observe the Contract and confirm signatures are   present for the Dealer and the Obligor. If confirmed, it will be a Test Pass.

 

Test 3.3(a) — 3: Contract Form

 

Observe if the Contract was completed   electronically. If so, it will be a Test Pass.

 

If the Contract was completed on paper, observe the   form number and revision date on the Contract and confirm they are on the   List of Approved Contract Forms. If confirmed, it will be a Test Pass.

 

Test 3.3(a) — 4: Valid Assignment

 

Observe the Dealer name on the Dealer Assignment and   confirm it matches the Dealer name on the Contract. If confirmed, it will be   a Test Pass.

 

Confirm the Dealer’s signature is present as   assignor either on the Contract or on a separate form. If confirmed, it will   be a Test Pass.
    
	
Section 3.3(b) - Simple Interest.   The Receivable provides for level monthly payments in United States dollars   that fully amortize the Amount Financed by its stated maturity and yield   interest at the Annual Percentage Rate. The Receivable applies a simple   interest method of allocating a fixed payment to principal and interest.
    	
 
    	
Test 3.3(b) — 1: Level Monthly Payments

 

Observe the Contract, taking into account any   Amendments, and confirm it reflects a level monthly payment except that the   final payment may be different by up to the amount of the prior level   payments. If confirmed, it will be a Test Pass.

 

Test 3.3(b) — 2: U.S. Dollars

 

Observe the Contract and confirm it is payable in U.S.   dollars. If confirmed, it will be a Test Pass.

 

Test 3.3(b) — 3: Amortizes Amount Financing by   Maturity at APR

 

Observe the information in the “Federal   Truth-In-Lending Disclosures” box of the Contract, taking into account any   Amendments. Calculate the sum of the “Finance Charge” and the “Amount   Financed.” Using the “Number of Payments” and the “Amount of Payments” from   the payment schedule section of the “Federal Truth-In-Lending Disclosures”   box, multiply the “Number of Payments” by the “Amount of Payments.” Confirm   the product matches the sum calculated above. If confirmed, it will be a Test   Pass.

 

Test 3.3(b) — 4: Simple Interest

 

Observe the Contract and confirm it is a simple   finance charge contract. If confirmed, it will be a Test Pass.
    
	
Section 3.3(c) - Prepayment.   The Receivable allows for prepayment without penalty.
    	
 
    	
Test 3.3(c) — 1: Prepayment without Penalty

 

Observe the Contract and confirm it provides a   prepayment disclosure that does not require a penalty. If confirmed, it will   be a Test Pass.
    

 

SB-1

 

	
Representation and Warranty
   (Section references are to the
   Receivables Purchase Agreement)
    	
 
    	
Tests
    
	
Section 3.3(d) - No Government Obligors.   The Receivable is not an obligation of the United States or a State or local   government or of an agency, department, instrumentality or political   subdivision of the United States or a State or local government.
    	
 
    	
Test 3.3(d) — 1: Personal Use

 

Observe the Contract, taking into account any   Amendments, and confirm the Financed Vehicle was purchased for personal use.   If confirmed, it will be a Test Pass.

 

Test 3.3(d) — 2: No Government Obligor

 

If the Financed Vehicle was not purchased for   personal use, confirm the Obligor is not a government Obligor. For purposes   of this test, if the name of the Obligor contains a word indicating it may be   a government Obligor, use online sources to confirm the Obligor is a   commercial business and not a government Obligor. If confirmed, it will be a   Test Pass.
    
	
Section 3.3(e) - Insurance.   The Receivable requires the Obligor to have physical damage Insurance   covering the Financed Vehicle.
    	
 
    	
Test 3.3(e) — 1: Insurance

 

Observe the Contract and confirm there is an   agreement from the Obligor to insure against loss of or risk to the Financed   Vehicle. If confirmed, it will be a Test Pass.
    
	
Section 3.3(f) - Compliance with   Underwriting Procedures. The Receivable was underwritten   according to the underwriting procedures in all material respects.
    	
 
    	
Test 3.3(f) — 1: Contract Form

 

Observe if the Contract was completed   electronically. If so, it will be a Test Pass.

 

If the Contract was completed on paper, observe the   form number and revision date on the Contract and confirm they are on the   List of Approved Contract Forms. If confirmed, it will be a Test Pass.

 

Test 3.3(f) — 2: Financed Vehicle Description

 

Observe the Contract, taking into account any   Amendments, and confirm the description of the Financed Vehicle, including   the vehicle identification number, year, make and model, if the Financed   Vehicle is new, used or demo and the use of the Financed Vehicle match the   vehicle information in Ford Credit’s receivables systems. If confirmed, it   will be a Test Pass.

 

Observe the Ancillary Documents and confirm any   information describing the Financed Vehicle matches the corresponding   information in the Contract, taking into account any Amendments. If   confirmed, it will be a Test Pass.

 

Test 3.3(f) — 3: Net Trade Information

 

Observe the Contract, taking into account any   Amendments, and determine if there was a trade-in vehicle. If there was no   trade-in vehicle, it will be a Test Pass.

 

If there was a trade-in vehicle, confirm the net   trade-in amount on the Contract equals the difference between the value of   the trade-in vehicle and the amount the Obligor owes for the trade-in. If   confirmed, it will be a Test Pass.

 

Test 3.3(f) — 4: Fees and Service Contracts or   Other Products

 

Observe the fees included in the “Itemization of   Amount Financed” section of the Contract, taking into account any Amendments,   and confirm the fees do not exceed the limits stated in the applicable Ford   Credit procedure. If confirmed, it will be a Test Pass.

 

Observe the amount for each additional product   financed in the “Itemization of Amount Financed” section of the Contract,   taking into account any Amendments. Confirm each amount does not exceed the   advance cap amount stated in the applicable Ford Credit procedure. If   confirmed, it will be a Test Pass.
    

 

SB-2

 

	
Representation and Warranty
   (Section references are to the
   Receivables Purchase Agreement)
    	
 
    	
Tests
    
	
 
    	
 
    	
Test 3.3(f) — 5: Contract Signed

 

Observe the Contract and confirm signatures are present   for the Dealer and Obligor. If confirmed, it will be a Test Pass.

 

Test 3.3(f) — 6: Insurance Signatures

 

Observe the insurance section of the Contract. If   there were no insurance products purchased, it will be a Test Pass.

 

If insurance products were purchased, confirm   signatures are present for the Obligor in the insurance section of the   Contract. If confirmed, it will be a Test Pass.

 

Test 3.3(f) — 7: Dealer Assignment

 

Observe if the Contract was completed   electronically. If so, it will be a Test Pass.

 

If the Contract was completed on paper, observe the   Dealer name on the Dealer Assignment and confirm it matches the Dealer name   on the Contract. If confirmed, it will be a Test Pass.

 

Test 3.3(f) — 8: Non-Financial Requirements   Documentation

 

Observe the non-financial requirements in Ford   Credit’s receivables systems and confirm if additional document requirements   were identified. If additional document requirements were identified, confirm   all required documents are in the Receivable File. If confirmed, it will be a   Test Pass.

 

Test 3.3(f) — 9: Notice to Co-Signer

 

Observe the Contract for a co-buyer. If no co-buyer   is present, it will be a Test Pass.

 

If a co-buyer is present, confirm a “Notice to   Cosigner” document is required using the applicable Ford Credit procedure. If   a “Notice to Cosigner” document is not required, it will be a Test Pass.

 

If a “Notice to Cosigner” document is required,   confirm a signed and dated “Notice to Cosigner” document is in the Receivable   File. If confirmed, it will be a Test Pass.

 

Test 3.3(f) — 10: Correction   Notice/Modification Agreement

 

Observe Ford Credit’s receivables systems and   confirm if instructions indicated to send a correction notice and/or complete   a modification agreement. If there are no instructions indicated, it will be   a Test Pass.

 

If the instructions indicated to send a correction   notice and/or a modification agreement, confirm they are present in the   Receivable File and are accurate and complete as indicated in the applicable   Ford Credit procedure. If confirmed, it will be a Test Pass.

 

Test 3.3(f) — 11: Rate Cap Confirmation

 

Observe the APR on the Contract, taking into account   any Amendments, and confirm it does not exceed the rate indicated in Ford   Credit’s receivables systems by more than the rate cap indicated in the   applicable Ford Credit procedure. If confirmed, it will be a Test Pass.
    

 

SB-3

 

	
Representation and Warranty
   (Section references are to the
   Receivables Purchase Agreement)
    	
 
    	
Tests
    
	
Section 3.3(g) - Valid Assignment.   The Receivable was originated in, and is subject to the laws of, a   jurisdiction which permits the sale and assignment of the Receivable. The   terms of the Receivable do not limit the right of the owner of the Receivable   to sell the Receivable.
    	
 
    	
Test 3.3(g) — 1: Contract Form

 

Observe if the Contract was completed   electronically. If so, it will be a Test Pass.

 

If the Contract was completed on paper, observe the   form number and revision date on the Contract and confirm they are on the   List of Approved Contract Forms. If confirmed, it will be a Test Pass.
    
	
Section 3.3(h) - Compliance with Law.   At the time it was originated, the Receivable complied in all material   respects with all requirements of law in effect at the time.
    	
 
    	
Test 3.3(h) — 1: Contract Form

 

Observe if the Contract was completed   electronically. If so, it will be a Test Pass.

 

If the Contract was completed on paper, observe the   form number and revision date on the Contract and confirm they are on the   List of Approved Contract Forms. If confirmed, it will be a Test Pass.

 

Test 3.3(h) — 2: Annual Percentage Rate

 

Observe the APR disclosed on the Contract, taking   into account any Amendments. Compute the APR, using the “Amount Financed,”   “Number of Payments,” date of the Contract, first payment due date, and   “Amount of Payments” from the Contract, taking into account any Amendments.   Compare the computed APR to the APR disclosed and confirm the difference   between them is within the legal tolerance of 0.125 percent. If confirmed, it   will be a Test Pass.

 

Test 3.3(h) — 3: Legibility of Contract Form

 

Observe the “Federal Truth-In-Lending Disclosures”   box of the Contract, taking into account any Amendments, and confirm all   printed sections are legible and aligned on the correct line. If confirmed,   it will be a Test Pass.

 

Test   3.3(h) — 4: Credit Insurance, Service Contracts or Other Products   Providers and Form Accuracy

 

Observe the provider name, form number and revision   date on any Ancillary Documents and confirm they are on the List of Approved   Products. If confirmed, it will be a Test Pass.

 

Test 3.3(h) — 5: Amount Financed

 

Observe the “Itemization of Amount Financed” section   of the Contract, taking into account any Amendments’ and confirm each line   with a “$”, is completed. If confirmed, it will be a Test Pass. Observe the   “Amount Financed” in the “Federal Truth-in-Lending Disclosures” box of the   Contract, taking into account any Amendments. Compute the “Amount Financed”   using the values in the “Itemization of Amount Financed” section. Compare the   computed amount to the “Amount Financed” disclosed and confirm they match. If   confirmed, it will be a Test Pass.

 

Test 3.3(h) — 6: Total of Payments

 

Observe the “Total of Payments” in the “Federal   Truth-in-Lending Disclosures” box of the Contract, taking into account any   Amendments. Compute the sum of the “Amount Financed” and the “Finance Charge”   in the “Federal Truth-in- Lending Disclosures” box of the Contract, taking   into account any Amendments. Compare the computed amount to the “Total of   Payments” disclosed on the Contract, taking into account any Amendments, and   confirm they match. If confirmed, it will be a Test Pass.
    

 

SB-4

 

	
Representation and Warranty
   (Section references are to the
   Receivables Purchase Agreement)
    	
 
    	
Tests
    
	
 
    	
 
    	
Test 3.3(h) — 7: Payment Schedule

 

Observe the first scheduled due date in the payment   schedule section of the “Federal Truth-In-Lending Disclosure” box of the   Contract, taking into account any Amendments and confirm it does not create a   discrepancy under the applicable Ford Credit procedure. If confirmed, it will   be a Test Pass. Observe the “Total of Payments” in the “Federal   Truth-in-Lending Disclosures” box of the Contract, taking into account any   Amendments. Compute the “Total of Payments” using the “Number of Payments”   and the “Amount of Payments” in the payment schedule section of the “Federal   Truth-In-Lending Disclosures” box. Compare the computed amount to the amount   in the “Total of Payments” section and confirm they match. If confirmed, it   will be a Test Pass.

 

Test 3.3(h) — 8: Total Sale Price

 

Observe the “Total Sale Price” section in the   “Federal Truth-In-Lending Disclosures” box of the Contract taking into   account any Amendments. Compute the “Total Sale Price” using the “Total of   Payments” and the amount of any down payment. Compare the computed amount to   the amount in the “Total Sale Price” section and confirm they match. If   confirmed, it will be a Test Pass.

 

Test 3.3(h) — 9: Non-financial requirements and   decision comments

 

Observe the non-financial requirements for the   Receivable in Ford Credit’s receivables systems and confirm any comments do   not conflict with the prohibited practices described in the applicable Ford   Credit procedure. If confirmed, it will be a Test Pass.

 

Test 3.3(h) — 10: State Disclosures; Contract   Form

 

Observe if the Contract was completed   electronically. If so, it will be a Test Pass.

 

If the Contract was completed on paper, observe form   number and revision date on the Contract and confirm they are on the List of   Approved Contract Forms. If confirmed, it will be a Test Pass.

 

Test 3.3(h) — 11: State Disclosures; Contract   Complete

 

If the Contract was completed on paper, observe the   Contract, taking into account any Amendments, and confirm all lines on the   contract are completed or properly left blank. If confirmed, it will be a   Test Pass.

 

Test 3.3(h) — 12: State Specific Underwriting   Requirements

 

Observe the state in the address of the Dealer on   the Contract. If the state is listed below, perform the tests for the   specific state.

 

California

 

Observe if the Contract identifies the Financed   Vehicle as “used.” If so, observe if Ford Credit’s receivables systems   indicate the Financed Vehicle is “new.” If so, confirm a completed and signed   “California Used Vehicle Exception” form is in the Receivable File. If   confirmed, it will be a test pass.

 

Observe if the Contract identifies the Financed   Vehicle is “used” with a cash price of less than $40,000 and was purchased   for personal use. If so, confirm a completed and signed contract cancellation   option agreement is in the Receivable File. If confirmed, it will be a Test   Pass.
    

 

SB-5

 

	
Representation and Warranty
   (Section references are to the
   Receivables Purchase Agreement)
    	
 
    	
Tests
    
	
 
    	
 
    	
Observe if a receipt of translation form or the   translated Contract is in the Receivable File. If so, confirm that the   receipt of translation form is signed or the translated Contract is   completed. If confirmed, it will be a Test Pass.

 

Illinois

 

Observe if a translation acknowledgment form is in   the Receivable File. If so, confirm it is completed and signed. If confirmed,   it will be a Test Pass.

 

Kansas

 

Observe if the Contract indicates that credit   insurance was purchased. If so, confirm the “Credit Insurance Premium Refund   Notice” is in the Receivable File and the date of the form is within ten days   of the Contract purchase date. If confirmed, it will be a Test Pass.

 

Louisiana

 

Observe if the Contract indicates that a GAP product   was purchased. If so, confirm a completed and signed “GAP Coverage Disclosure   Form” is in the Receivable File. If confirmed, it will be a Test Pass.

 

Massachusetts

 

Observe if the Contract indicates that a GAP product   was purchased. If so, confirm the APR on the Contract, taking into account   any Amendments, does not exceed 15%. If confirmed, it will be a Test Pass.

 

If the APR on the Contract exceeds 15%, confirm a   “Massachusetts GAP Cancellation Worksheet” is in the Receivable File and   confirm the recalculated percentage on the form does not exceed 21%. If   confirmed, it will be a Test Pass.

 

Minnesota

 

Confirm a completed “Purchase/Buyer’s Order” is in   the Receivable File. If confirmed, it will be a Test Pass.

 

New York

 

Observe if a translation acknowledgment form is in   the Receivable File. If so, confirm the form is completed and signed. If   confirmed, it will be a Test Pass.

 

Ohio

 

Observe if the Contract indicates that credit   insurance was purchased. If so, confirm a completed and signed “Notice of   Optional Credit Insurance” form is in the Receivable File. If confirmed, it   will be a Pass.

 

Pennsylvania

 

Confirm a signed “Disclosure to Applicant Buyer” form   is in the Receivable File. If confirmed, it will be a Test Pass.

 

Vermont

 

Confirm that a signed “State of Vermont Disclosure   Form” is in the Receivable File and that the dollar amounts on the form match   the corresponding dollar amounts on the Contract. If confirmed, it will be a   Test Pass.
    

 

SB-6

 

	
Representation and Warranty
   (Section references are to the
   Receivables Purchase Agreement)
    	
 
    	
Tests
    
	
Section 3.3(i) - Binding Obligation.   The Receivable is on a form contract that includes rights and remedies   allowing the holder to enforce the obligation and realize on the Financed   Vehicle and represents the legal, valid and binding payment obligation of the   Obligor, enforceable in all material respects by the holder of the   Receivable, except as may be limited by bankruptcy, insolvency,   reorganization or other laws relating to the enforcement of creditors’ rights   or by general equitable principles and consumer protection laws.
    	
 
    	
Test 3.3(i) — 1: Contract Form

 

Observe if the Contract was completed   electronically. If so, it will be a Test Pass.

 

If the Contract was completed on paper, observe the   form number and revision date on the Contract and confirm they are on the   List of Approved Contract Forms. If confirmed, it will be a Test Pass.
    
	
Section 3.3(j) - Security Interest in   Financed Vehicle. The Sponsor has, or the Servicer has   started procedures that will result in the Sponsor having, a perfected, first   priority security interest in the Financed Vehicle, which security interest   was validly created and is assignable by the Sponsor to the Depositor.
    	
 
    	
Test 3.3(j) — 1: Security Interest in Financed   Vehicle

 

Observe the Title Documents and confirm they show   either Ford Credit or Lincoln Automotive Financial Services, using a name   included in the List of Acceptable Name Variations, as the first lienholder.   If confirmed, it will be a Test Pass.

 

Observe the Obligor name(s) on the Contract,   taking into account any Amendments, and confirm they match the   name(s) on the Title Documents. If confirmed, it will be a Test Pass.

 

Observe the vehicle identification number on the   Contract, taking into account any Amendments, and confirm it matches the   vehicle identification number on the Title Documents. If confirmed, it will   be a Test Pass.
    
	
Section 3.3(k) — Good Title to Receivable.   Immediately before the sale and assignment under this Agreement, the Sponsor   has good and marketable title to the Receivable free and clear of any Lien,   other than Permitted Liens, and, immediately after the sale and assignment   under this Agreement, the Depositor will have good and marketable title to   the Receivable, free and clear of any Lien, other than Permitted Liens.
    	
 
    	
Test 3.3(k) — 1: Contract Form; Valid   Assignment

 

Observe if the Contract was completed   electronically. If so, it will be a Test Pass.

 

If the Contract was completed on paper, confirm the   Dealer’s signature is present as assignor either on the Contract or on a   separate form. If confirmed, it will be a Test Pass.

 

Test 3.3(k) — 2: System Marking

 

Observe the Receivable in Ford Credit’s receivables   systems as of the end of the month in which the sale and assignment under the   Agreement takes place and confirm that the Receivable is marked as sold and   the pool number identified matches the pool number for the transaction   related to the Agreement. If confirmed, it will be a Test Pass.
    

 

SB-7

 

	
Representation and Warranty
   (Section references are to the
   Receivables Purchase Agreement)
    	
 
    	
Tests
    
	
Section 3.3(l) - Chattel Paper.   The Receivable is either “tangible chattel paper” or “electronic chattel   paper” within the meaning of the applicable UCC and there is only one   original authenticated copy of each Receivable.
    	
 
    	
Test 3.3(l) — 1: Contract Signed

 

Observe the Contract and confirm signatures are   present for the Dealer and Obligor. If confirmed, it will be a Test Pass.

 

Test 3.3(l) — 2: Contract Form

 

Observe if the Contract was completed   electronically. If so, it will be a Test Pass.

 

If the Contract was completed on paper, observe the   form number and revision date on the Contract and confirm they are on the   List of Approved Contract Forms. If confirmed, it will be a Test Pass.

 

Test 3.3(l) — 3: One Original

 

If the Contract was completed on paper, observe the   Contract and confirm it states “original” above the ply description line. If   confirmed, it will be a Test Pass.
    
	
Section 3.3(m) - Servicing.   The Receivable was serviced in compliance with law and the Servicing   Procedures in all material respects from the time it was originated to the   Cutoff Date.
    	
 
    	
Test 3.3(m) — 1: Payment Application

 

Observe the APR on the Contract, taking into account   any Amendments, and confirm it matches the APR in Ford Credit’s receivables   systems. If confirmed, it will be a test pass.

 

Compute the number of days from the date of the   Contract, taking into account any Amendments, to the date the first payment   was applied on the Contract and confirm the amount to be applied to interest   and principal was calculated correctly at the APR indicated in Ford Credit’s   receivables systems. If confirmed, it will be a Test Pass.

 

Test 3.3(m) — 2: Credit Bureau Reporting

 

Observe the number of days the Receivable was past   due as indicated in Ford Credit’s receivables systems for each month   preceding the Cutoff Date and confirm it matches the information reported to   the credit bureaus as indicated in Ford Credit’s receivables systems. If   confirmed, it will be a Test Pass.

 

Test 3.3(m) — 3: Obligor Complaints

 

Observe if “Complaints/Feedback” is indicated for   the Receivable in Ford Credit’s receivables systems as of the Cutoff Date. If   so, confirm that the documentation in Ford Credit’s receivables systems   related to the complaint indicates that the applicable Ford Credit procedures   were followed in responding to the complaint. If confirmed, it will be a Test   Pass.

 

Test 3.3(m) — 4: Equal Credit Opportunity Act

 

Observe the non-financial requirements for the   Receivable in Ford Credit’s receivables systems and confirm any comments do   not conflict with the prohibited practices described in the applicable Ford   Credit procedure. If confirmed, it will be a Test Pass.

 

Test 3.3(m) — 5: Servicemembers Civil Relief   Act

 

Observe if Servicemember Civil Relief Act is   indicated for the Receivable in Ford Credit’s receivables systems as of the   Cutoff Date. If so, and military orders are present in the Receivable File,   confirm the APR indicated in Ford Credit’s receivables systems is less than   or equal to 6%. If confirmed, it will be a Test Pass
    

 

SB-8

 

	
Representation and Warranty
   (Section references are to the
   Receivables Purchase Agreement)
    	
 
    	
Tests
    
	
Section 3.3(n) - No Bankruptcy.   As of the Cutoff Date, the Sponsor’s receivables systems do not indicate that   the Obligor on the Receivable is a debtor in a bankruptcy proceeding.
    	
 
    	
Test 3.3(n) — 1: No Bankruptcy

 

Observe the “Bankrupt” field for the Receivable in   Ford Credit’s receivables systems as of the Cutoff Date and confirm it is   blank. If confirmed, it will be a Test Pass.
    
	
Section 3.3(o) - Receivable in Force.   As of the Cutoff Date, neither the Sponsor’s receivables systems nor the   Receivable File indicate that the Receivable was satisfied, subordinated or   rescinded, or that the Financed Vehicle was released from the Lien created   under the Receivable.
    	
 
    	
Test 3.3(o) — 1: Receivable in Force

 

Observe the Receivable in Ford Credit’s receivables   systems, and confirm it was an active account on the Cutoff Date. If   confirmed, it will be a Test Pass.
    
	
Section 3.3(p) - No Amendments or   Modifications. No material term of the Receivable has been   affirmatively amended or modified, except amendments and modifications   indicated in the Sponsor’s receivables systems or in the Receivable File.
    	
 
    	
Test 3.3(p) — 1: No Amendments

 

Observe if the Receivable indicates a “Substitution   Agreement” and/or “Transfer of Equity” account message in Ford Credit’s   receivables systems. If so, confirm a substitution agreement and/or transfer   agreement is in the Receivable File. If confirmed, it will be a Test Pass.
    
	
Section 3.3(q) - No Extensions.   As of the Cutoff Date, the Receivable was not amended to extend the due date   for any payment other than a change of the monthly due date.
    	
 
    	
Test 3.3(q) — 1: No Extensions

 

Observe the Receivable in Ford Credit’s receivables   systems as of the Cutoff Date and confirm it had not been extended. If   confirmed, it will be a Test Pass.
    
	
Section 3.3(r) - No Defenses.   There is no right of rescission, setoff, counterclaim or defense asserted or   threatened against the Receivable indicated in the Sponsor’s receivables   systems or in the Receivable File.
    	
 
    	
Test 3.3(r) — 1: No Defenses

 

Observe if the Receivable indicates a “Litigation   Pending,” “Attorney Representation” and/or “Second Lien” account messages in   Ford Credit’s receivables systems. If so, confirm none of the account   messages were present as of the Cutoff Date. If confirmed, it will be a Test   Pass.
    
	
Section 3.3(s) - No Payment Default.   Except for a payment that is not more than 30 days Delinquent as of the   Cutoff Date, no payment default exists on the Receivable.
    	
 
    	
Test 3.3(s) — 1: No Payment Default

 

Observe the Receivable in Ford Credit’s receivables   systems as of the Cutoff Date and confirm it was not more than 30 days   Delinquent. If confirmed, it will be a Test Pass
    
	
Section 3.3(t) - Term of Receivable.   The original term of the Receivable is not greater than [72] months counting   the period from the origination date to the first payment date as a single   month.
    	
 
    	
Test 3.3(t) — 1: Term of Receivable

 

Observe the “Number of Payments” from the payment   schedule section of the “Federal Truth-In-Lending Disclosures” box of the   Contract, taking into account any Amendments, and confirm the total number of   payments is [72] or fewer. If confirmed, it will be a Test Pass.
    
	
Section 3.3(u) - Scheduled Payments.   The first scheduled due date on the Receivable is not later than 30 days   after the Cutoff Date.
    	
 
    	
Test 3.3(u) — 1: Scheduled Payments

 

Observe the first scheduled due date in the payment   schedule section of the “Federal Truth-In-Lending Disclosures” box of the   Contract, taking into account any Amendments, and confirm the first scheduled   payment date is prior to the Cutoff Date or if not prior, then less than or   equal to 30 days after the Cutoff Date. If confirmed, it will be a Test Pass.
    

 

SB-9Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”), entered into as of September 4, 2015 and effective as of September 14, 2015, by and among 21st CENTURY ONCOLOGY, INC., a Florida corporation (the “Company”), 21ST CENTURY ONCOLOGY HOLDINGS, INC., a Delaware corporation (“Holdings”) and LEANNE M. STEWART (“Executive”).

 

WHEREAS, the Company is engaged in the business of providing radiation therapy and related health care services to cancer patients;

 

NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties, intending to be legally bound, hereby agree as follows:

 

1.             EMPLOYMENT. The Company hereby agrees to employ the Executive upon the terms and conditions herein contained, and the Executive hereby agrees to accept such employment for the Term (defined below). The Executive agrees to serve as the Company’s Chief Financial Officer during the Term and shall have the authorities, functions, powers, duties and responsibilities that are customarily associated with such position, including oversight responsibility for the Company’s Finance, Treasury, Tax, and Accounting functions or such duties as the Chief Executive Officer of the Company may reasonably assign to her from time to time and are consistent with the position. As Executive becomes more informed in the nuances of the Company’s operations, the Chief Executive Officer also may assign to Executive the Revenue Cycle function. The Executive shall report to, and be accountable to, the Chief Executive Officer of the Company.

 

Throughout the Term and except for permitted vacation periods, the Executive shall devote her reasonable best efforts and substantially all of her business time and services to the business and affairs of the Company. Nothing herein shall preclude Executive from serving or continuing to serve on the boards or advisory committees of medical, charitable, or other similar organizations so long as such activities do not materially interfere with Executive’s performance under this Agreement and would not otherwise violate any provision of Sections 9 or 10 of this Agreement.

 

The Position is based in Ft. Myers, Florida. Executive will relocate to Lee County or Collier County, Florida, no later than six months after her execution of this Agreement, and will reside in such location(s) for the duration of her employment with the Company. The Company will reimburse Executive’s reasonable and customary relocation related expenses, including her legal counsel associated with execution of Agreement, upon receiving receipts proving the expenses incurred, up to a maximum of $125,000.00.

 

2.             TERM OF AGREEMENT. The initial three (3) year term (“Initial Term”) of employment under this Agreement shall commence as of September 14, 2015 (the “Effective Date”). After the expiration of such Initial Term, the term of the Executive’s employment hereunder shall automatically be extended without further action by the parties for up to two (2)

 

1

 

successive one (1) year renewal terms (“Renewal Terms” and, collectively with the Initial Term, the “Term”), provided that (i) if Executive gives the Company at least one hundred twenty (120) days advance written notice prior to the expiration of the Initial Term of her intention not to renew this Agreement for the first Renewal Term, the Agreement shall terminate upon the expiration of the Initial Term and (ii) after the expiration of the Initial Term, if either party gives the other party at least one hundred twenty (120) days advance written notice prior to the expiration of the then applicable Renewal Term of its intention to not renew this Agreement for an additional Renewal Term, the Agreement shall terminate upon the expiration of the then current Renewal Term.

 

Notwithstanding the foregoing, during the Initial or any Renewal Term, the Company and the Executive, as applicable, shall be entitled to terminate this Agreement (and the Executive’s employment hereunder), subject to a continuing obligation by the Company to make the payments, if any, required under Section 5 below (or such other obligations of the Company or the Executive to the opposing party hereunder which are intended to survive the termination of this Agreement): (i) due to the occurrence of Executive’s Disability (as defined in Section 5(c) below); (ii) without Cause; or (iii) for Cause; or (iv) with or without Good Reason.

 

3.             EXECUTIVE COMPENSATION.

 

(a)  Annual Base Salary. The Executive shall receive an annual base salary during the Term at a rate of not less than Four Hundred Seventy-Five Thousand Dollars ($475,000.00) (the “Base Salary”), payable in installments consistent with the Company’s regular payroll schedule. The CEO and the Compensation Committee (the “Compensation Committee”) shall review this Base Salary at annual intervals.

 

(b)  Performance Incentive Bonus. The Executive will be eligible for an annual performance-based incentive bonus with a target of up to 85% of Executive’s Base Salary, based on objectives to be defined by the Company’s Compensation Committee, beginning in 2016. For 2015, Executive will be guaranteed a bonus of 40 percent of her base salary ($190,000.00). The bonus amount will be earned upon completion of the performance period and payable on or before March 15 of the year following the performance period.

 

4.             ADDITIONAL COMPENSATION AND BENEFITS. The Executive shall receive the following additional compensation and welfare and fringe benefits:

 

(a)  Participation in Benefit Plans. The Executive shall be eligible to participate in the employee benefit and programs maintained by the Company from time to time for its executives and their dependents generally in accordance with the terms and conditions of such plans and programs as in effect from time to time. Notwithstanding the foregoing, the Company may modify or terminate any employee benefit plan (as permitted under the terms of such plan) at any time (provided such change or modification applies to all of the Company’s executives and their dependants or all of its employees generally, as applicable).

 

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(b)  Vacation and Sick Days; Holidays. The Executive shall be entitled to no fewer than twenty (20) vacation days, seven (7) sick days and six (6) holidays for each calendar year (prorated your first year of employment) as well as during each calendar year for the Term and any extensions thereof. Consistent with Company policy and practice, these days do not “carry over” to the succeeding calendar year and unused days are not paid out at or after termination.

 

(c)  Business Expenses. The Company shall reimburse the Executive, in accordance with the Company’s expense reimbursement policy (as such policy is applied to the Company’s senior executives), for all reasonable expenses she incurs in connection with the Company’s business, including expenses for travel, entertainment of business associates, service and usage charges for business use of cellular phones and similar items, upon presentation by the Executive on a monthly basis of an itemized account of such expenditures with documentation as required by the Company policies.

 

(d)  Equity. As soon as is reasonably practicable following the start of Executive’s employment hereunder, Executive will be granted an equity award in 21st Century Oncology Investments, LLC (“Investments, LLC”) as a Class E Member. This is the vehicle through which the members of the Company management participate in the equity appreciation of the Company. Subject to the terms of Executive’s grant agreement and the Management Equity Plan, Executive’s equity award will, to the extent vested, entitle Executive to up to .75% of the aggregate growth of Investments, LLC following the grant date (whether such distributions are pursuant to an IPO, change of control, sale of the company or otherwise).

 

(e)  Other. In addition to the benefits provided pursuant Sections 4(a) through 4(d), the Executive shall be eligible to participate in such other executive compensation and retirement plans of the Company as are available generally to other Company’s senior executives other than plans available solely to the Company’s Chief Executive Officer.

 

5.             PAYMENTS UPON TERMINATION.

 

(a)  Termination. If the Executive’s employment terminates for any reason during the Term, the Executive shall receive her earned but unpaid Base Salary on the next regularly-scheduled payroll date and unreimbursed expenses (in accordance with Company’s expense reimbursement policy and Sections 4(c) herein) accrued and unpaid through the date of termination of employment hereunder (the “Termination Date”). The Executive shall also receive (a) any vested benefits and payment of any amounts earned and payable to her (including with regard to the reason for her termination of employment) under the terms of any deferred compensation, pension, incentive or other benefit and perquisite plan maintained by the Company, provided and payable in accordance with the terms of the applicable plan and (b) provided Executive’s employment was not terminated for Cause prior to the applicable bonus payment date and the following is not already paid pursuant to clause (a) of this paragraph, any earned but unpaid annual Performance Bonus for the fiscal year ending prior to the Termination Date. The payments and benefits that the Executive shall be entitled to receive pursuant to this Section 5(a) are collectively referred to as the Executive’s “Accrued Compensation.”

 

3

 

(b)  Severance Payments. If the Executive’s employment is terminated by the Company without Cause by Executive for Good Reason, or there is a Change in Control as defined below, then in addition to payment of the Accrued Compensation, the Company shall also make a series of monthly payments to the Executive for a period of twelve (12) months immediately following the Termination Date so long as the Executive continues to comply with Sections 9 and 10 hereof; provided, that the payments that otherwise would have been made during the sixty (60) day period after the Termination Date shall be made on the first payroll period after the sixtieth (60th) day following the Termination Date and shall include payment of any amounts that would otherwise be due prior thereto. Each such monthly payment shall be a cash payment and equal to 1/12th of the of the sum of (x) Executive’s annual Base Salary, as in effect on the Termination Date, plus (y) the target annual Performance Incentive Bonus, if terminated before the end of year two (2). After year two, annual Performance Incentive Bonus will be calculated based on an average of the years prior to Termination Date. Executive shall also be permitted, to the extent permitted under applicable law and plan documents to continue to participate at the Company’s expense in all benefit and insurance plans, coverage and programs in which she was participating immediately prior to the Termination Date, at the same level as active employees, for a period of twelve (12) months from the Termination Date (Executive will reasonably cooperate with the Company to facilitate the continuation of such benefits, including, with limitation, electing “COBRA” coverage as required by the Company); provided, for the avoidance of doubt, that the Company may modify the continuation coverage contemplated by this Section 5(b) to the extent reasonably necessary to avoid the imposition of any excise taxes on the Company for failure to comply with the nondiscrimination requirements of the Patient Protection and Affordable Care Act of 2010, as amended, and the Health Care and Education Reconciliation Act of 2010, as amended (to the extent applicable) including instead making cash payments to the Executive over the same period in monthly installments in amounts equal to the Company’s portion of the monthly cost of providing such benefits for such period.

 

For purposes of this Agreement, “Change in Control” means the occurrence of any of the following after the Effective Date:

 

(i)        one person (or more than one person acting as a group) acquires ownership of stock of the Company that, together with the stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of such corporation; provided that, a Change in Control shall not occur if any person (or more than one person acting as a group) owns more than fifty percent (50%) of the total fair market value or total voting power of the Company’s stock and acquires additional stock;

 

(ii)       one person (or more than one person acting as a group) acquires (or has acquired during the twelve-month period ending on the date of the most recent acquisition) ownership of the Company’s stock possessing thirty percent (30%) or more of the total voting power of the stock of such corporation;

 

(iii)      a majority of the members of the Board are replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the Board before the date of appointment or election; or

 

4

 

(iv)      the sale of all or substantially all of the Company’s assets.

 

For purposes of this definition, the following acquisitions shall not constitute a Change in Control: (A) any acquisition or merger with an entity owned, directly or indirectly, by stockholders of the Company in substantially the same proportions as their ownership of the Company, or (B) an underwriter temporarily holding securities pursuant to an offering of such securities. This clause applies only when there is a transfer of the stock of the Company (or issuance of stock) and stock in the Company remains outstanding after the transaction.

 

Notwithstanding the foregoing, a Change in Control shall not occur unless such transaction constitutes a change in the ownership of the Company, a change in effective control of the Company, or a change in the ownership of a substantial portion of the Company’s assets under Section 409A.

 

(c)  Disability. The Company shall be entitled to terminate this Agreement and the Executive’s employment with the Company, if the CEO determines in good faith that the Executive has been unable to attend to her duties for at least one-hundred and eighty (180) days, with or without reasonable accommodation, because of a medically diagnosable physical or mental condition, and has received a written opinion from a physician acceptable to the CEO that such condition prevents the Executive from resuming full performance of her duties at such time and during the succeeding onehundred and eighty (180) days or is likely to continue for an indefinite period (any such condition, a “Disability”). If the Company terminates this Agreement due to Executive’s Disability, the Executive shall be entitled to receive, in addition to payment of the Accrued Compensation, a series of monthly payments from the Company for a period of twelve (12) months immediately following the Termination Date with each monthly payment equal to one-twelfth (1/12th) of the Executive’s annual Base Salary, as in effect on the Termination Date so long as the Executive continues to comply with Sections 9 and 10 hereof and any other disability program or insurance policies that may be maintained or provided by the Company.

 

(d)  Termination for Cause. If the Executive’s employment is terminated by the Company for Cause, the amount the Executive shall be entitled to receive from the Company shall be limited to the Accrued Compensation.

 

For purposes of this Agreement, the term “Cause” shall be limited to (i) any action by the Executive involving willful disloyalty to the Company, such as embezzlement, fraud, material misappropriation of corporate assets or a material breach of the covenants set forth in Sections 9 and 10 below; (ii) the Executive being convicted of or entering a plea of guilty or no contest or similar plea for a felony (other than a traffic violation); (iii) the Executive being convicted of or entering a plea of guilty or no contest or similar plea with respect to, any lesser crime or offense (x) committed in connection with the performance of her duties hereunder, (y) involving fraud, material dishonesty or moral turpitude or (z) that causes the Company or any of its subsidiaries a substantial and material financial detriment; (iv) substantial neglect or willful misconduct

 

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in carrying out Executive’s material duties (other than resulting from the Executive’s Disability) or violations of material policies of the Company (covering items not provided for in Sections 9 and 10 below) and/or its subsidiaries resulting in material harm to the Company or any of its subsidiaries; (v) substantial and repeated failure, refusal or inability (except where due to illness or Disability) to perform Executive’s material duties hereunder; or (vi) Executive’s failure to relocate and reside in the area as required in Section 1. Notwithstanding the foregoing, no termination pursuant to subsection (iv) or (v) shall be treated as termination for Cause unless the CEO has provided the Executive with written notice specifying in reasonable detail the alleged Cause for termination and the Cause within 90 days of knowing of the allegation and is not cured within 30 days after the date of such notice. For purposes hereof, an act or omission shall not be deemed to be willful if taken or omitted in the good faith belief that such act or omission was in, or not opposed to, the best interests of the Company or any of its affiliates or taken based on Company’s legal or accounting counsel.

 

(e)  Voluntary Termination by the Executive. If the Executive resigns or otherwise voluntarily terminates her employment without Good Reason, the Executive shall only be entitled to the Accrued Compensation upon such termination. If she resigns for Good Reason, Executive shall receive the same severance payments as if she had been terminated without Cause. As used herein, Good Reason means the Executive resigns during the period of three (3) months after the date the Executive is (i) assigned to a position other than Chief Financial Officer of the Company (other than any such assignment for Cause or by reason of Disability) without the Executive’s consent, (ii) assigned duties materially inconsistent with such position (other than any such assignment for Cause or by reason of Disability) without the Executive’s consent, and such assignment is not rectified within 15 business days after written notice to the Company, (iii) transferred to a geographic location of employment more than 30 miles from the current location of employment without the executive’s consent, (iv) directed to report to anyone other than the CEO, without the Executive’s consent, or (v) the Company materially breaches any material term of this Agreement; provided that no breach of this Agreement by the Company shall be deemed to constitute “Good Reason” unless the Executive provides the Company with written notice specifying in detail the alleged breach within ninety (90) days of her knowledge of its occurrence and such breach is not cured within 30 days after the date of such notice.

 

(f)  Release. In order to receive the Severance Payments and benefits pursuant to this Section 5 (other than the Accrued Compensation), the Executive must execute and not revoke a general release of claims in favor of the Company substantially in the form attached hereto as Exhibit A (provided the Company must deliver an execution version of such a release to the Executive within seven (7) days after the Termination Date). To the extent that such release is not executed and delivered (and no longer subject to revocation, if applicable) within sixty (60) days following the Termination Date, the Executive shall forfeit all rights to any such severance payments and benefits.

 

6.             DEATH. If the Executive dies during the Term, the Company shall pay to the Executive’s estate, in addition to payment of the Accrued Compensation, a series of monthly

 

6

 

payments from the Company to the Executive’s estate for a period of twelve (12) months immediately following the date of death with each monthly payment equal to one-twelfth (1/12th) of the Executive’s annual Base Salary, as in effect on the date of death. In addition, unless such amounts are already payable as part of Accrued Compensation, the death benefits payable by reason of the Executive’s death under any retirement, deferred compensation or other employee benefit plan maintained by the Company shall be paid to the beneficiary designated by the Executive in accordance with the terms of the applicable plan or plans.

 

7.             SECTION 409A COMPLIANCE. The parties hereto intend that all payments and benefits to be made or provided to the Executive hereunder and under any Plan (as defined in clause (j) below) either will be exempt from, or will be paid or provided in compliance with, all applicable requirements of Section 409A (as defined in clause (j) below), and the provisions of this Agreement and of each Plan (to the extent they relate to the Executive’s entitlements under such Plan) shall be construed and administered in accordance with such intent. In furtherance of the foregoing, the provisions set forth below shall apply notwithstanding any other provision in this Agreement, or (where applicable) any provision in any Plan, to the contrary.

 

(a)  All payments to be made to the Executive hereunder or under any Plan, to the extent they constitute a deferral of compensation subject to the requirements of Section 409A (after taking into account all exclusions applicable to such payments under Section 409A), shall be made no later, and shall not be made any earlier, than at the time or times specified herein or in any Plan for such payments to be made, except as otherwise permitted or required under Section 409A.

 

(b)  The date of the Executive’s “separation from service”, as defined in Section 409A (and as determined by applying the default presumptions in Treas. Reg. § 1.409A1(h)(1)(ii)), shall be treated as the date of her termination of employment for purposes of determining the time of payment of any amount that becomes payable to the Executive hereunder and under any Plan upon her termination of employment and that is properly treated as a deferral of compensation subject to Section 409A after taking into account all exclusions applicable to such payment under Section 409A.

 

(c)  To the extent any payment otherwise required to be made to the Executive hereunder or under any Plan on account of her separation from service is properly treated as a deferral of compensation subject to Section 409A after taking into account all exclusions applicable to such payment under Section 409A, and if the Executive is a “specified employee” under Section 409A at the time of her separation from service, then such payment shall not be made until the first business day after the earlier of (i) the expiration of six months from the date of the Executive’s separation from service, or (ii) the date of her death (such first business day, the “Delayed Payment Date”). On the Delayed Payment Date, there shall be paid to the Executive or, if she has died, to her estate, in a single cash lump sum, an amount equal to aggregate amount of all payments delayed pursuant to the preceding sentence.

 

(d)  In the case of any amounts payable to the Executive under this Agreement, or under any Plan, that may be treated as payable in the form of “a series of installment payments”, as defined in Treas. Reg. § 1.409A-2(b)(2)(iii), (A) the Executive’s right to receive such payments shall be treated as a right to receive a series of separate payments

 

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for purposes of Treas. Reg. § 1.409A-2(b)(2)(iii), and (B) to the extent any such existing Plan does not already so provide, it is hereby amended to so provide, with respect to amounts that may become payable to the Executive thereunder.

 

(e)  To the extent that the reimbursement of any expenses eligible for reimbursement or the provision of any in-kind benefits under any provision of this Agreement or under any Plan would be considered deferred compensation under Section 409A (after taking into account all exclusions applicable to such reimbursements and benefits under Section 409A): (i) reimbursement of any such expense shall be made by the Company as soon as practicable after such expense has been incurred, but in any event no later than December 31st of the year following the year in which the Executive incurs such expense; (ii) the amount of such expenses eligible for reimbursement, or in-kind benefits to be provided, during any calendar year shall not affect the amount of such expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; and (iii) the Executive’s right to receive such reimbursements or in-kind benefits shall not be subject to liquidation or exchange for any other benefit.

 

(f)  Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days”), the actual date of payment within the specified period shall be within the sole discretion of the Company.

 

(g)  In no event shall any payment under this Agreement that constitutes “deferred compensation” for purposes of Code Section 409A be offset by any other payment pursuant to this Agreement or otherwise.

 

(h)  The Company agrees that at all times during the Term, it will use its reasonable best efforts to maintain each Plan in documentary and operational compliance with all requirements under Section 409A, in so far as such requirements are applicable to the payments or benefits to be made or provided to the Executive under such Plan. The Company further agrees that to the extent permitted under Section 409A, this Agreement, and the terms of any Plan (to the extent they relate to the Executive’s entitlements under such Plan) shall be modified, as reasonably requested by the Executive, to the extent necessary to comply with all applicable requirements of, and to avoid the imposition of any additional tax, interest and penalties under, Section 409A in connection with, the benefits and payments to be provided or paid to the Executive hereunder or under such Plan. Any such modification shall maintain the original intent and economic benefit to the Executive of the applicable provision of this Agreement or such Plan, to the maximum extent possible without violating any applicable requirement of Section 409A. Any such modification to the terms of any Plan may be made by means of a separate written agreement between the Company and the Executive so as to limit the applicability of such modification to just the payments or benefits to be provided to the Executive under such Plan.

 

(i)  Notwithstanding anything herein to the contrary, the Company shall not be liable for any additional tax, interest or penalty that may be imposed on the Executive by Section 409A or damages for failing to comply with Section 409A, except as to any failure to

 

8

 

comply with Section 409A that results from the Company’s willful failure to comply with the terms of this Agreement or the terms of any Plan.

 

(j)  For purposes of the foregoing, the following terms shall have the following meanings:

 

(1)     “Plan” shall mean any plan, program, agreement (other than this Agreement, but including any Exhibits hereto) or other arrangement maintained by the Company or any of its affiliates that is a “nonqualified deferred compensation plan” within the meaning of Section 409A and under which any payments or benefits are to be made or provided to the Executive, to the extent they constitute a deferral of compensation subject to the requirements of Section 409A after taking into account all exclusions applicable to such payments under Section 409A.

 

(2)     “Section 409A” shall mean section 409A of the Internal Revenue Code of 1986, as amended, the regulations issued thereunder and all notices, rulings and other guidance issued by the Internal Revenue Service interpreting same.

 

8.             WITHHOLDING. The Company shall, to the extent permitted by law, have the right to withhold and deduct from any payment hereunder any federal, state or local taxes of any kind required by law to be withheld with respect to any such payment.

 

9.             PROTECTION OF CONFIDENTIAL INFORMATION. The Executive agrees that she will keep all confidential and proprietary information of the Company or relating to its business (including, but not limited to, information regarding the Company’s customers, pricing policies, methods of operation, proprietary computer programs and trade secrets) confidential, and that she will not (except with the Company’s prior written consent), while in the employ of the Company or at any time thereafter, disclose any such confidential information to any person, firm, corporation, association or other entity, other than in furtherance of her duties hereunder, and then only to those with a “need to know”, or subject to confidentiality or nondisclosure agreement. The Executive shall not disclose or make use of any such confidential information for her own purposes or for the benefit of any person, firm, corporation, association or other entity (except the Company) under any circumstances during or at any time after the Term. The foregoing shall not apply to any information which is already in the public domain, or is generally disclosed by the Company or is otherwise in the public domain at the time of disclosure, except if such information is in the public domain as a result of the Executive’s actions in contravention of this Section 9 Notwithstanding the foregoing, the Executive may disclose any such confidential and proprietary information if the disclosure of such information (a) may be required by law, regulation, or court or administrative order (in which event, to the extent the Executive is not legally prohibited from doing so, the Executive shall so notify the Company as promptly as practicable) or (b) is required in connection with the Executive enforcing this Agreement or any other agreement with the Company or defending claims against the Executive or the Company.

 

The Executive recognizes that because her work for the Company will bring her into contact with confidential and proprietary information of the Company, the restrictions of this Section 9 and 10 are required for the reasonable protection of the Company and its investments and for the Company’s reliance on and confidence in the Executive.

 

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10.          PROHIBITION OF CERTAIN ACTIVITIES. In consideration of the transactions contemplated hereby (including the grant of any equity pursuant to Section 4(d)), the Executive hereby covenants and agrees that she will not, for a period beginning on the date of this Agreement and ending twelve (12) months after such Executive’s Termination Date (i) engage in any business activities for herself or on behalf of any enterprise in any capacity or own any interest in any entity which compete or are competitive with the Company in the business of organizing, establishing, developing, providing or managing radiation therapy services or services ancillary thereto, in any state in which the Company, its subsidiaries, Affiliates and/or any of its joint ventures then operate or has plans to operate as of the Executive’s Termination Date, (ii) interfere or disrupt or attempt to interfere or disrupt, the relationships between the Company, its subsidiaries and/or joint ventures and any patient, referral source or supplier or other person having business relationships with the Company, its subsidiaries and/or joint ventures (the “Client”), (iii) solicit, aid or induce any employee, exclusive representative or exclusive agent of the Company or any of its subsidiaries (the “Employee”) to leave such employment or retention or to accept employment with or render services to or with any other person, firm, corporation or other entity unaffiliated with the Company or hire or retain any such Employee or take any action to materially assist or aid any other person, firm, corporation or other entity in identifying, hiring or soliciting any such Employee, or (iv) publish or make any knowingly false and disparaging statements about the Company and, only with respect to such Person’s affiliation with the Company, any Affiliate of the Company or any of the Company’s or its Affiliate’s directors or officers (the “Protected Parties”), under circumstances where it is reasonably foreseeable that the statements will be made public (provided, that nothing in this clause (iv) shall prohibit the Executive from (a) providing truthful and accurate information to any governmental agency or as otherwise may be required by law, (b) responding publicly to incorrect, disparaging or derogatory public statements made by the Protected Parties to the extent reasonably necessary to correct or refute such statements, (c) conferring in confidence with her legal representatives, or (d) competing fairly with the Protected Parties in the future, to the extent she is otherwise permitted to do so (pursuant to the terms of this Agreement) (the activities described in clauses (i) through (iv) above, collectively, “Prohibited Activities”).

 

Notwithstanding the foregoing, the restrictions in this Section 10 shall not apply with regard to (a) general solicitations that are not specifically directed to the Employees, (b) serving as a reference at the request of an Employee or (c) actions taken in the good faith performance of the Executive’s duties hereunder. Notwithstanding the foregoing, it shall not be a violation of the restrictions in this Section 10 if the Executive solicits or attempts to solicit the business or patronage of a Client that uses or provides services or supplies to multiple service providers or recipients in the same space as it utilizes or supplies the Company, its subsidiaries and/or joint ventures; provided, that the Executive does not specifically suggest or encourage such Client to terminate or reduce its business relationship with the Company, its subsidiaries and/or joint ventures. The obligations of Section 10 shall be tolled during any period in which the Company fails to make termination-related payments otherwise due the Executive in accordance with this Agreement. Nothing in Section 10 shall restrict Executive from working for any pharmacies, health care related insurance companies, PPOs, HMOs, or integrated health delivery networks that do not primarily provide cancer related services.

 

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For purposes of this Agreement, “Affiliate” shall mean, with respect to any Person (as defined below), any other Person directly or indirectly controlling, controlled by, or under common control with, such Person where “control” shall have the meaning given such term under Rule 405 of the Securities Act of 1933, as amended. For purposes of this Agreement, “Person” shall mean an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature.

 

11.                               INJUNCTIVE RELIEF. The Executive acknowledges and agrees that it would be difficult to fully compensate the Company for damages resulting from the breach or threatened breach of the covenants set forth in Sections 9 and 10 of this Agreement and accordingly agrees that the Company shall be entitled to temporary and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, to enforce such provisions in any action or proceeding instituted in the United States District Court for the Middle District of Florida or in any court in the State of Florida having subject matter jurisdiction. This provision with respect to injunctive relief shall not, however, diminish the Company’s right to claim and recover damages.

 

It is expressly understood and agreed that although the parties consider the restrictions contained in this Agreement to be reasonable, if a court determines that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction on the activities of the Executive, no such provision of this Agreement shall be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such extent as such court may judicially determine or indicate to be reasonable.

 

The Executive acknowledges and confirms that (a) the restrictive covenants contained in Sections 9 and 10 hereof are reasonably necessary to protect the legitimate business interests of the Company for substantial consideration, and (b) the restrictions contained in Sections 9 and 10 hereof (including without limitation the length of the term of the provisions of Sections 9 and 10 hereof) are not overbroad, overlong, or unfair and are not the result of overreaching, duress or coercion of any kind. The Executive further acknowledges and confirms that her full and faithful observance of each of the covenants contained in Sections 9 and 10 hereof will not cause her any undue hardship, financial or otherwise, and that enforcement of each of the covenants contained herein will not impair her ability to obtain employment commensurate with her abilities and on terms fully acceptable to her or otherwise to obtain income required for the comfortable support of her and her family and the satisfaction of the needs of her creditors. The Executive acknowledges and confirms that her special knowledge of the business of the Company is such as would cause the Company serious injury or loss if she were to use such ability and knowledge to the benefit of a competitor or were to compete with the Company in violation of the terms of Sections 9 and 10 hereof. The Executive further acknowledges that the restrictions contained in Sections 9 and 10 hereof are intended to be, and shall be, for the benefit of and shall be enforceable by, the Company’s successors and assigns.

 

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The provisions of this Agreement necessary to carry out the intention of the parties hereto following the termination or expiration of this Agreement as expressed herein shall survive the termination or expiration of this Agreement (for avoidance of doubt, Sections 5 through 22 of this Agreement shall survive the termination or expiration of this Agreement).

 

12.                               NOTICES. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when personally delivered, sent by telecopy or facsimile (with confirmation of receipt), one day after deposit with a reputable overnight delivery service (charges prepaid) and three days after deposit in the U. S. Mail (postage prepaid and return receipt requested) to the address set forth below or such other address as the recipient party has previously delivered notice to the sending party.

 

(a) If to the Company:

 

Daniel E. Dosoretz, CEO

21st Century Oncology, Inc

2270 Colonial Boulevard

Fort Myers, FL 33907

Facsimile: (239) 931-7380

 

with copies (which shall not constitute notice) to:

 

Kimberly Commins-Tzoumakas

Hall Render

201 W. Big Beaver, Suite 1200

Troy, MI 48084

Facsimile: (248) 740-7501

 

If to Executive, to the Executive’s home address reflected in the Company’s books and records.

 

13.                               SEPARABILITY. If any provision of this Agreement shall be declared to be invalid or unenforceable, in whole or in part, such invalidity or unenforceability shall not affect the remaining provisions hereof which shall remain in full force and effect.

 

14.                               ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the heirs and representatives of the Executive and the assigns and successors of the Company, but neither this Agreement nor any rights hereunder shall be assignable or otherwise subject to hypothecation by the Executive. The Company and the Executive may only assign this Agreement in the following way: (a) with a prior written consent of the opposing party to this Agreement, (b) by the Executive, to her estate, heirs, or beneficiaries only with respect to the financial benefits of this Agreement, or (c) by the Company, to its successor that continues its business by merger, consolidation or similar corporate transaction, provided, that such entity assumes all of the obligations and duties of the Company hereunder

 

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15.                               ENTIRE AGREEMENT. This Agreement represents the entire agreement of the parties and shall supersede any other previous contracts, arrangements or understandings between the Company and the Executive related to employment. The Agreement may be amended at any time by mutual written agreement of the parties hereto.

 

16.                               GOVERNING LAW. This Agreement shall be construed, interpreted, and governed in accordance with the laws of the State of Florida, other than the conflicts of laws provisions of such laws.

 

17.                               SUBMISSION TO JURISDICTION. Any suit, action or proceeding with respect to this Agreement, or any judgment entered by any court in respect of any thereof, shall be brought in any court of competent jurisdiction in the State of Florida, and each of the Company and the Executive hereby submit to the exclusive jurisdiction of such courts for the purpose of any such suit, action, proceeding or judgment. The Executive and the Company hereby irrevocably each waive any objections which it may now or hereafter have to the laying of the venue of any suit, action or proceeding arising out of or relating to this Agreement brought in any court of competent jurisdiction in the State of Florida, and hereby further irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in any inconvenient forum.

 

18.                               WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

19.                               HEADINGS. The headings contained in this Agreement are included for convenience only and no such heading shall in any way alter the meaning of any provision.

 

20.                               WAIVER. The failure of either party to insist upon strict adherence to any obligation of this Agreement shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. Any waiver must be in writing.

 

21.                               COUNTERPARTS. This Agreement may be executed in two (2) counterparts, each of which shall be considered an original.

 

22.                               INDEMNIFICATION AND D&O INSURANCE. The Executive shall be indemnified and advanced expenses to the fullest extent permitted or authorized by any policies or governing documents of the Company or, if greater, by applicable law. A directors’ and officers’ liability insurance policy (or policies) shall be kept in place, during the Term and for three (3) years thereafter, to the extent that such coverage is then provided to any other current or former director or officer of the Company, providing coverage to the Executive that is no less favorable to her than the coverage then being provided to any other current or former director or officer of the Company.

 

23.                               MISCELLANEOUS. The Company represents and warrants that (i) the execution of this Agreement has been duly authorized by the Company, including action of the Board, (ii) the execution, delivery and performance of this Agreement by the Company does not and will not

 

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violate any law, regulation, order, judgment or decree or any agreement, plan or corporate governance document of the Company and (iii) upon the execution and delivery of this Agreement, this Agreement shall be the valid and binding obligation of the Company, enforceable in accordance with its terms, except to the extent enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by the effect of general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law. Should there be a change in control of the Company and the successor in interest does not assume Executive’s Employment Agreement, Executive may terminate this Agreement for Good Reason as defined herein.

 

IN WITNESS WHEREOF, this Agreement has been duly executed as of the day and year first above written.

 

	
 
    	
21ST CENTURY   ONCOLOGY, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   DANIEL E. DOSORETZ
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Name:   Daniel E. Dosoretz
    
	
 
    	
 
    	
 
    	
Title:   CEO
    
	
 
    	
 
    
	
 
    	
21ST CENTURY   ONCOLOGY HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   DANIEL E. DOSORETZ
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Name:   Daniel E. Dosoretz
    
	
 
    	
 
    	
 
    	
Title:   CEO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EXECUTIVE:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   LEANNE M. STEWART
    

 

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EXHIBIT A

 

Form of Release

 

THIS RELEASE (this “Release”) is made as of this   th day of                              , 20  , by and between among 21st  CENTURY ONCOLOGY, INC., a Florida corporation (the “Company”), 21ST CENTURY ONCOLOGY HOLDINGS, INC., a Delaware corporation (“Holdings”) and LEANNE M. STEWART (“Executive”).

 

PRELIMINARY RECITALS

 

A.                                    Executive and the Company are parties to an Executive Employment Agreement, effective as of September 1, 2015 (the “Agreement”).

 

B.                                    Executive’s employment with the Company has terminated.

 

AGREEMENT

 

In consideration of the payments due Executive under the Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Executive, intending to be legally bound, does hereby, on behalf of herself and her agents, representatives, attorneys, assigns, heirs, executors and administrators (collectively, the “Executive Parties”) REMISE, RELEASE AND FOREVER DISCHARGE the Company, it’s, subsidiaries, parents, joint ventures, and only with respect to such person’s affiliation with the Company, its Affiliates (as defined in the Agreement) and its and their officers, directors, shareholders, members, and managers, and its and their respective successors and assigns, heirs, executors, and administrators (collectively, the “Company Parties”) from all causes of action, suits, debts, claims and demands whatsoever in law or in equity, which Executive or any of the Executive Parties ever had, now has, or hereafter may have, by reason of any matter, cause or thing whatsoever, from the beginning of Executive’s initial dealings with the Company to the date of this Release, and particularly, but without limitation of the foregoing general terms, any claims arising from or relating in any way to Executive’s employment relationship with Company, the terms and conditions of that employment relationship, and the termination of that employment relationship, including, but not limited to, any claims arising under the Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et seq. (“ADEA”), Title VII of The Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq., the Civil Rights Act of 1966, 42 U.S.C. §1981, the Civil Rights Act of 1991, Pub. L. No. 102-166, the Americans with Disabilities Act, 42 U. S.C. § 12101 et seq., the Age Discrimination in Employment Act, as amended, 29 U.S.C. §621 et seq., the Fair Labor Standards Act, 29 U.S.C. §201 et seq., the National Labor Relations Act, 29 U.S.C. §151 et seq., the Civil False Claims Act, §31 U.S.C §3729 et seq and related state false claims act provisions and any other claims under any federal, state or local common law, statutory, or regulatory provision, now or hereafter recognized, but not including such claims to payments and other rights provided Executive under the Agreement.

 

A-1

 

This Release is effective without regard to the legal nature of the claims raised and without regard to whether any such claims are based upon tort, equity, implied or express contract or discrimination of any sort. Except as specifically provided herein, it is expressly understood and agreed that this Release shall operate as a clear and unequivocal waiver by Executive of any claim for accrued or unpaid wages, benefits or any other type of payment. Notwithstanding the foregoing, the Executive does not release, discharge or waive any rights to (1) payments and benefits (or other rights) provided under the Agreement, (2) benefit claims under any employee benefit plans in which the Executive is a participant by virtue of her (current or past) employment with the Company or any of its Affiliates (including any claims to vested and accrued benefits and entitlements under any other agreements, plans, programs, awards, policies, arrangements, contracts, instruments and other documents to which the Executive is a party (or is covered by)), (3) any rights the Executive may have as an equity holder of the Company or any of its Affiliates, (4) any rights Executive may have to be indemnified and/or advanced expenses under any corporate document of the Company, any agreement or pursuant to applicable law or to be covered under any applicable directors’ and officers’ liability insurance policies. (5) any rights which the Executive is prohibited from releasing or waiving by law, and (6) any right any of the Executive Parties may have to obtain contribution as permitted by law in the event of entry of judgment against any of them as a result of any act or failure to act for which they, on the one hand, and any of the Company Parties, on the other hand, are jointly liable.

 

2.                                      Executive expressly waives all rights afforded by any statute which limits the effect of a release with respect to unknown claims. Executive understands the significance of her release of unknown claims and her waiver of statutory protection against a release of unknown claims.

 

3.                                      Executive agrees that she will not be entitled to or accept any benefit from any claim or proceeding within the scope of this Release that is filed or instigated by her or on her behalf with any agency, court or other government entity.

 

4.                                      Executive further agrees and recognizes that she has permanently and irrevocably severed her employment relationship with the Company, effective as of the date hereof, that she shall not seek employment with the Company or any affiliated entity at any time in the future, and that the Company has no obligation to employ her in the future.

 

5.                                      The parties agree and acknowledge that the Agreement, and the settlement and termination of any asserted or unasserted claims against the Company and the Company Parties pursuant to this Release, are not and shall not be construed to be an admission of any violation of any federal, state or local statute or regulation, or of any duty owed by the Company or any of the Company Parties to Executive.

 

6.                                      Executive certifies and acknowledges as follows:

 

(a)                                 That she has read the terms of this Release, and that she understands its terms and effects, including the fact that she has agreed to RELEASE AND FOREVER DISCHARGE the Company and all Company Parties from any legal action or other liability of any type related in any way to the matters released pursuant to this Release other than as provided in the Agreement and in this Release.

 

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(b)                                 That she understands the significance of her release of unknown claims and her waiver of statutory protection against a release of unknown claims.

 

(c)                                  That she has signed this Release voluntarily and knowingly in exchange for the consideration described herein, which she acknowledges is adequate and satisfactory to her and which she acknowledges is in addition to any other benefits to which she is otherwise entitled.

 

(d)                                 That she has been and is hereby advised in writing to consult with an attorney prior to signing this Release.

 

(e)                                  That she does not waive rights or claims that may arise after the date this Release is executed or those claims arising under the Agreement with respect to payments and other rights due Executive on the date of, or during the period following, the termination of her Employment.

 

(f)                                   That the Company has provided her with adequate opportunity, including a period of forty five (45) days from the initial receipt of this Release and all other time periods required by applicable law, within which to consider this Release (it being understood by Executive that Executive may execute this Release less than forty five (45) days from its receipt from the Company, but agrees that such execution will represent her knowing waiver of such 45-day consideration period), and she has been advised by the Company to consult with counsel in respect thereof.

 

(g)                                  That she has seven (7) calendar days after signing this Release within which to rescind, in a writing delivered to the Company, the portion of this Release related to claims arising under ADEA or any other claim arising under any other federal, state or local that requires extension of this revocation right as a condition to the valid release and waiver of such claim.

 

(h)                                 That at no time prior to or contemporaneous with her execution of this Release has she filed or caused or knowingly permitted the filing or maintenance, in any state, federal or foreign court, or before any local, state, federal or foreign administrative agency or other tribunal, any charge, claim or action of any kind, nature and character whatsoever (“Claim”), known or unknown, suspected or unsuspected, which she may now have or has ever had against the Company Parties which is based in whole or in part on any matter released herein; and, subject to the Company’s performance under this Release, to the maximum extent permitted by law, Executive is prohibited from filing or maintaining, or causing or knowingly permitting the filing or maintaining, of any such Claim in any such forum. Executive hereby grants the Company her perpetual and irrevocable power of attorney with full right, power and authority to take all actions necessary to dismiss or discharge any such Claim. Executive further covenants and agrees that she will not encourage any person or entity, including but not limited to any current or former employee, officer, director or stockholder of the Company, to institute any Claim against the Company Parties or any of them, and that except as expressly permitted by law or administrative policy or as required by legally enforceable order she will not aid or assist any such person or entity in prosecuting such Claim.

 

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7.                                      The Company (meaning, solely for this purpose, the Company’s directors and executive officers and other individuals authorized to make official communications on the Company’s behalf) will not disparage Executive or Executive’s performance or otherwise take any action which could reasonably be expected to adversely affect Executive’s personal or professional reputation. Similarly, the Executive will not disparage any Company Party or otherwise take any action which could reasonably be expected to adversely affect the personal or professional reputation of any Company Party.

 

8.                                      Executive agrees that she will not disparage or denigrate to any person any aspect of her relationship with the Company or any of its Affiliates or any Company Party, nor the character of the Company or any of its subsidiaries or their respective agents, representatives, products, or operating methods, whether past, present, or future, and whether or not based on or with reference to their past relationship; provided, however, (a) that this paragraph and the immediately preceding paragraph shall have no application to any evidence or testimony requested of Executive or the Company by any court or government agency and shall not prohibit the Executive or the Company from (i) responding publicly to incorrect, disparaging or derogatory public statements made by the other party to the extent reasonably necessary to correct or refute such statements, and (ii) conferring in confidence with her or its legal representatives and (b) nothing in this Release shall prohibit the Executive from competing fairly with the Protected Parties, as such term is defined in the Agreement, in the future, to the extent she is otherwise permitted (pursuant to the terms of the Agreement).

 

9.                                      Miscellaneous

 

(a)                                 This Release and the Agreement, and any other documents expressly referenced therein, constitute the complete and entire agreement and understanding of Executive and the Company with respect to the subject matter hereof, and supersedes in its entirety any and all prior understandings, commitments, obligations and/or agreements, whether written or oral, with respect thereto; it being understood and agreed that this Release and including the mutual covenants, agreements, acknowledgments and affirmations contained herein, is intended to constitute a complete settlement and resolution of all matters set forth in Section 1 hereof.

 

(b)                                 The Company Parties are intended third-party beneficiaries of this Release, and this Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Company Parties hereunder. Except and to the extent set forth in the preceding two sentences, this Release is not intended for the benefit of any Person other than the parties hereto, and no such other person or entity shall be deemed to be a third party beneficiary hereof. Without limiting the generality of the foregoing, it is not the intention of the Company to establish any policy, procedure, course of dealing or plan of general application for the benefit of or otherwise in respect of any other employee, officer, director or stockholder, irrespective of any similarity between any contract, agreement, commitment or understanding between the Company and such other employee, officer, director or stockholder, on the one hand, and any contract, agreement, commitment or understanding between the Company and Executive, on the other hand, and irrespective of any similarity in facts or circumstances involving such other employee, officer, director or stockholder, on the one hand, and Executive, on the other hand.

 

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(c)                                  The invalidity or unenforceability of any provision of this Release shall not affect the validity or enforceability of any other provision of this Release, which shall otherwise remain in full force and effect.

 

(d)                                 This Release may be executed in separate counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

(e)                                  The obligations of each of the Company and Executive hereunder shall be binding upon their respective successors and assigns. The rights of each of the Company and Executive and the rights of the Company Parties shall inure to the benefit of, and be enforceable by, any of the Company’s, Executive’s and the Company Parties’ respective successors and assigns. The Company and the Execute may only assign this Release in the following way: (a) with a prior written consent of the opposing party to this Release, (b) by the Executive, to her estate, heirs, or beneficiaries, or (c) by the Company, to its successor that continues its business by merger, consolidation or similar corporate transaction, provided, that such entity assumes all of obligations and duties of the Company hereunder

 

(f)                                   No amendment to or waiver of this Release or any of its terms shall be binding upon any party hereto unless consented to in writing by such party.

 

(g)                                  ALL ISSUES AND QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF FLORIDA OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF FLORIDA.

 

* * * * *

 

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Intending to be legally bound hereby, Executive and the Company have executed this Release as of the date first written above.

 

	
 
    	
[NAME]
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    

 

 

READ CAREFULLY BEFORE SIGNING

 

I have read this Release and have been given adequate opportunity, including [21] [45] days from my initial receipt of this Release, to review this Release and to consult legal counsel prior to my signing of this Release. I understand that by executing this Release I will relinquish certain rights or demands I may have against the Company Parties or any of them.

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
[Name]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness:
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

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