Document:

Exhibit 10.5

 

ASSET REPRESENTATIONS REVIEW AGREEMENT

 

among

 

HYUNDAI AUTO RECEIVABLES TRUST 2019-B,

as Issuer,

 

HYUNDAI CAPITAL AMERICA,

as Servicer

 

and 

 

CLAYTON FIXED INCOME SERVICES LLC,

 

as Asset Representations Reviewer

 

Dated as of November 6, 2019

 

    	 		(2019-B Asset Representations Review Agreement)

     

    

 

Table
of Contents

 

	 	 	Page
	ARTICLE I	USAGE AND DEFINITIONS	1
	 	 	 	 
	Section 1.1.	 	Usage and Definitions	1
	 	 	 	 
	Section 1.2.	 	Additional Definitions	1
	 	 	 	 
	ARTICLE II	ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER	2
	 	 	 	 
	Section 2.1.	 	Engagement; Acceptance	2
	 	 	 	 
	Section 2.2.	 	Confirmation of Scope	2
	 	 	 	 
	ARTICLE III	ASSET REPRESENTATIONS REVIEW PROCESS	2
	 	 	 	 
	Section 3.1.	 	Review Notices	2
	 	 	 	 
	Section 3.2.	 	Identification of Subject Receivables	2
	 	 	 	 
	Section 3.3.	 	Review Materials	3
	 	 	 	 
	Section 3.4.	 	Performance of Reviews	3
	 	 	 	 
	Section 3.5.	 	Review Reports	4
	 	 	 	 
	Section 3.6.	 	Limitations on Review Obligations	4
	 	 	 	 
	Section 3.7.	 	Dispute Resolution	5
	 	 	 	 
	ARTICLE IV	ASSET REPRESENTATIONS REVIEWER	5
	 	 	 	 
	Section 4.1.	 	Representations and Warranties	5
	 	 	 	 
	Section 4.2.	 	Covenants	6
	 	 	 	 
	Section 4.3.	 	Fees, Expenses and Indemnities	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 REPRESENTATIONS REVIEWER	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

 

    	 	i	(2019-B Asset Representations Review Agreement)

     

    

 

Table
of Contents

(continued)

 

	 	 	 	Page
	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	14
	 	 	 	 
	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; Submission to Jurisdiction; Waiver of Jury Trial	17
	 	 	 	 
	Section 7.5.	 	No Waiver; Remedies	17
	 	 	 	 
	Section 7.6.	 	Severability	18
	 	 	 	 
	Section 7.7.	 	Headings	18
	 	 	 	 
	Section 7.8.	 	Counterparts	18
	 	 	 	 
	Schedule A	 	Representations and Warranties, Review Materials and Tests	 

 

    	 	ii	(2019-B Asset Representations Review Agreement)

     

    

 

ASSET REPRESENTATIONS REVIEW AGREEMENT,
dated as of November 6, 2019 (this “Agreement”), among HYUNDAI AUTO RECEIVABLES TRUST 2019-B, a Delaware statutory
trust, as issuer (the “Issuer”), HYUNDAI CAPITAL AMERICA, a California corporation (“HCA”),
as servicer (the “Servicer”), and CLAYTON FIXED INCOME SERVICES LLC , a Delaware limited liability company,
as asset representations reviewer (the “Asset Representations Reviewer”).

 

WHEREAS, the Issuer desires to engage the
Asset Representations Reviewer to perform reviews of certain Receivables for compliance with the representations and warranties
made by HCA, as seller, about the Receivables in the pool.

 

NOW, THEREFORE, in consideration of the
foregoing, other good and valuable consideration, and the mutual terms and conditions contained herein, the parties hereto agree
as follows.

 

ARTICLE
I

USAGE AND DEFINITIONS

 

Section 1.1.         
Usage and Definitions. (a) Except as otherwise specified herein or if the context may otherwise require, capitalized
terms not defined in this Agreement shall have the respective meanings assigned such terms set forth in Appendix A to the
Sale and Servicing Agreement, dated as of the date hereof (the “Sale and Servicing Agreement”), by and among
the Depositor, HCA, as seller and servicer, Hyundai Auto Receivables Trust 2019-B, as issuer and Citibank, N.A., as indenture trustee
(the “Indenture Trustee”).

 

(b)      With respect to all terms in this Agreement, the singular includes the plural and the plural the singular; words importing
any gender include the other genders; references to “writing” include printing, typing, lithography and other means
of reproducing words in a visible form; references to agreements and other contractual instruments include all subsequent amendments,
amendments and restatements, and supplements thereto or changes therein entered into in accordance with their respective terms
and not prohibited by this Agreement; references to Persons include their permitted successors and assigns; references to laws
include their amendments and supplements, the rules and regulations thereunder and any successors thereto; the term “including”
means “including without limitation;” and the term “or” is not exclusive.

 

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

 

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

 

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

 

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

 

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

 

    	 		(2019-B Asset Representations Review Agreement)

     

    

 

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

 

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

 

“Review Materials” means,
for an Asset Representations Review and a Subject Receivable, the documents and other materials for each Test listed under “Review
Materials” in Schedule A.

 

“Review Report” means,
for an Asset Representations Review, the report of the Asset Representations Reviewer prepared according to 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 Incomplete” has
the meaning stated in Section 3.4(a).

 

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

 

ARTICLE
II

ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER

 

Section 2.1.         
Engagement; Acceptance. The Issuer engages Clayton Fixed Income Services LLC to act as the Asset Representations
Reviewer for the Issuer. Clayton Fixed Income Services LLC 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 Scope. 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 Basic Documents, except as described in this Agreement
or (b) determining whether noncompliance with the representations or warranties constitutes a breach of the Basic Documents.

 

ARTICLE
III

ASSET REPRESENTATIONS REVIEW PROCESS

 

Section 3.1.         
Review Notices. On receipt of a Review Notice in accordance with Section 7.05 of the Indenture, the Asset
Representations Reviewer will commence an Asset Representations Review. The Asset Representations Reviewer will have no obligation
to start an Asset Representations Review until a Review Notice is received.

 

Section 3.2.         
Identification of Subject Receivables. Within ten (10) Business Days after receipt of a Review Notice, the Servicer
will deliver to the Asset Representations Reviewer a list of the Subject Receivables.

 

    	 	2	(2019-B Asset Representations Review Agreement)

     

    

 

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 Subject Receivables within sixty (60) calendar days after receipt of the Review Notice in one or more of the following
ways in the Servicer’s reasonable discretion: (i) by electronic posting of Review Materials to a password-protected website
to which the Asset Representations Reviewer has access, (ii) by providing originals or photocopies of documents relating to the
Subject Receivables at one of the properties of the Servicer or (iii) in another manner agreed by the Servicer and the Asset Representations
Reviewer. The Servicer may redact or remove PII from the Review Materials so long as all information in the Review Materials necessary
for the Asset Representations Reviewer to complete the Asset Representations Review remains intact and unchanged.

 

(b)      Missing or Insufficient Review Materials. The Asset Representations 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 Representations Reviewer reasonably determines that any of the Review Materials are missing or insufficient for the Asset
Representations Reviewer to perform any Test, the Asset Representations Reviewer will notify the Servicer promptly, and in any
event no less than twenty (20) calendar days before completing the Review, and the Servicer will use reasonable efforts to provide
the Asset Representations Reviewer access to such missing Review Materials or other documents or information to correct the insufficiency
within fifteen (15) calendar days. If the missing or insufficient Review Materials have not been provided by the Servicer within
sixty (60) calendar days, the parties agree that the Subject Receivable will have a Test Incomplete for the related Test(s) and
the Review Report will indicate the reason for the Test Incomplete.

 

Section 3.4.         
Performance of Reviews.

 

(a)      Test Procedures. For an Asset Representations Review, the Asset Representations Reviewer will perform for each Subject
Receivable the procedures listed under “Tests” in Schedule A for each representation and warranty (each, a “Test”),
using the Review Materials listed for each such Test in Schedule A. For each Test and Subject Receivable, the Asset Representations
Reviewer will determine in its reasonable judgment if the Test has been satisfied (a “Test Pass”), if the Test
has not been satisfied (a “Test Fail”) or if the Test could not be concluded as a result of missing or incomplete
Review Materials (a “Test Incomplete”). The Asset Representations Reviewer will use such determination for all
Subject Receivables that are subject to the same Test.

 

(b)      Review Period. The Asset Representations Reviewer will complete the Asset Representations Review of all of the Subject
Receivables within sixty (60) calendar 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 thirty (30) calendar days.

 

(c)       Completion of Review for Certain Subject Receivables. Following the delivery of the list of the Subject Receivables
and before the delivery of the Review Report by the Asset Representations Reviewer, the Servicer may notify the Asset Representations
Reviewer if a Subject Receivable is paid in full by the Obligor or purchased from the Issuer by the Seller or the Servicer according
to the applicable Basic Document. 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.

 

    	 	3	(2019-B Asset Representations Review Agreement)

     

    

 

(d)      Previously Reviewed Receivable. If a Subject Receivable was included in a prior Asset Representations Review, the
Asset Representations Reviewer will not conduct additional Tests on any such duplicate Subject Receivable unless such Subject Receivable
was deemed a Test Incomplete as a result of the failure of the Servicer to provide missing Review Material for such Subject Receivable
and the Servicer elects to have such Subject Receivable included in the current Asset Representations Review. The Asset Representations
Reviewer will include the previously reported Test results for any such duplicate Subject Receivable within the Review Report for
the current Asset Representations Review.

 

(e)      Duplicative Tests. If the same Test is required for more than one representation or warranty listed on Schedule
A, the Asset Representations Reviewer will only perform the Test once for each Subject Receivable but will report the results
of the Test for each applicable representation or warranty on the Review Report.

 

(f)       Termination of Review. If an Asset Representations Review is in process and all of 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 Asset Representations
Review immediately and will have no obligation to deliver a Review Report.

 

Section 3.5.         
Review Reports. (a) Within ten (10) calendar days after the end of the Asset Representations 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 Subject Receivable whether there was a Test Pass, a Test Incomplete or a Test Fail for each Test,
or whether the Subject Receivable was a Test Complete and the related reason. The Review Report will contain a summary of the findings
and conclusions of the Asset Representations Reviewer with respect to the Asset Representations Review 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 the reasonable request of the Servicer, the Asset Representations Reviewer
will provide additional details on the Test results.

 

(b)      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 Servicer until payment of the Notes in
full. The Asset Representations Reviewer will have no obligation to respond to questions or requests for clarification from Noteholders
or any Person other than the Servicer and will direct such Persons to submit written questions or requests to the Servicer.

 

Section 3.6.         
Limitations on Review Obligations. The Asset Representations Reviewer may rely on the information in any Review Notice,
the list(s) of the Subject Receivables provided by the Servicer, and the accuracy and completeness of the Review Materials. The
Asset Representations Reviewer will have no obligation:

 

    	 	4	(2019-B Asset Representations Review Agreement)

     

    

 

(a)      to determine whether a Delinquency Trigger has occurred or whether the required percentage of Noteholders has voted to direct
an Asset Representations Review under the Indenture;

 

(b)      to determine which Receivables are Subject Receivables;

 

(c)      to confirm the validity of the Review Materials; or

 

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

 

Section 3.7.         
Dispute Resolution. The Asset Representations Reviewer acknowledges and agrees that any Review Report may be used
by the Issuer, the Seller or the Servicer in any dispute resolution proceeding related to the Subject Receivables. No additional
fees or reimbursement of expenses shall be paid to the Asset Representations Reviewer regarding the Issuer’s, the Seller’s
or the Servicer’s use of any Review Report; provided that the Asset Representations Reviewer will be reimbursed for
its out-of-pocket expenses incurred in its participation in any dispute resolution proceeding.

 

ARTICLE
IV

ASSET REPRESENTATIONS REVIEWER

 

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

 

(a)      Organization and Qualification. The Asset Representations Reviewer is duly organized and validly existing as a limited
liability company in good standing under the laws of the State of Delaware. The Asset Representations Reviewer is qualified as
a foreign limited liability company 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 execution, delivery and performance by the Asset Representations Reviewer of the
transactions contemplated by this Agreement and the performance of the Asset Representations Reviewer’s obligations under
this Agreement will not (A) conflict with, or be a breach or default under, any indenture, mortgage, deed of trust, loan agreement,
guarantee or other agreement or instrument under which the Asset Representations Reviewer is a party, (B) result in the creation
or imposition of any Lien on any of the properties or assets of the Asset Representations Reviewer under the terms of any indenture,
mortgage, deed of trust, loan agreement, guarantee or other agreement or instrument, (C) violate the organizational documents of
the Asset Representations Reviewer or (D) violate any law or any 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.

 

    	 	5	(2019-B Asset Representations Review Agreement)

     

    

 

(d)      No Consent Required. No approval or authorization by, or filing with, any Governmental Authority is required in connection
with the execution, delivery and performance by the Asset Representations Reviewer of this Agreement other than (i) approvals and
authorizations that have previously been obtained and filings that have previously been made and (ii) approvals, authorizations
or filings which, if not obtained or made, would not have a material adverse effect on the ability of the Asset Representations
Reviewer to perform its obligations under this Agreement.

 

(e)      No Proceedings. There are no proceedings or investigations pending or, to the knowledge of the Asset Representations
Reviewer, 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 (A) asserting the invalidity of this Agreement, (B)
seeking to prevent the completion of the transactions contemplated by this Agreement or (C) seeking any determination or ruling
that would reasonably be expected to 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.

 

(f)       Eligibility. The Asset Representations Reviewer meets the eligibility requirements in Section 5.1 and will
notify the Issuer and the Servicer promptly if it no longer meets, or reasonably expects that it will no longer meet, 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 Subject 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 Asset Representations Reviews as required by this Agreement.

 

    	 	6	(2019-B Asset Representations Review Agreement)

     

    

 

(c)      Maintenance of Review Materials. It will maintain copies of any Review Materials, Review Reports and other documents
relating to an Asset Representations Review, including internal correspondence and work papers, for a period of two years after
the termination of this Agreement or repayment of the Notes in full, whichever comes first.

 

Section 4.3.         
Fees, Expenses and Indemnities.

 

(a)      Annual Fee. The Servicer will pay the Asset Representations Reviewer, as compensation for agreeing to act as the
Asset Representations Reviewer under this Agreement, an annual fee of $5,000.00. The annual fee will be payable by the Servicer
on the Closing Date and on each anniversary thereof until this Agreement is terminated, provided, that in the year in which
all public Notes are paid in full, the annual fee shall be reduced pro rata by an amount equal to the days of the year in which
the public Notes are no longer outstanding.

 

(b)      Review Fee. Following the completion of an Asset Representations Review and the delivery to the Indenture Trustee,
the Issuer and the Servicer of the Review Report, or the termination of an Asset Representations Review in accordance with Section
3.4(f), and the delivery to the Servicer of a detailed invoice, the Asset Representations Reviewer will be entitled to a fee
of $200 for each Subject Receivable for which the Asset Representations Review was started (the “Review Fee”),
to be paid as agreed in Section 4.3(e). However, no Review Fee will be charged for any Tests that were performed in a prior
Asset Representations Review or for any Asset Representations Review in which no Tests were completed prior to the Asset Representations
Reviewer being notified of a termination of the Asset Representations Review in accordance with Section 3.4(f). The Servicer
will pay the Review Fee to the Asset Representations Reviewer in accordance with the terms of the detailed invoice from the Asset
Representations Reviewer. If an Asset Representations Review is terminated in accordance with Section 3.4(f), the Asset
Representations Reviewer must submit its invoice for the Review Fee for the terminated Asset Representations Review no later than
five Business Days before the final Payment Date in order to be reimbursed no later than the final Payment Date.

 

(c)      Reimbursement of Travel Expenses. If the Servicer provides access to the Review Materials at one of its properties,
the Asset Representations Reviewer will be reimbursed for its reasonable travel expenses incurred in connection with the Review
in accordance with Section 4.3(e).

 

(d)      Dispute Resolution Expenses. If the Asset Representations Reviewer participates in a dispute resolution proceeding
and its reasonable expenses for participating in the proceeding are not paid by a party to the dispute resolution within ninety
(90) days after the end of the proceeding, the Servicer will reimburse the Asset Representations Reviewer for such expenses in
accordance with Section 4.3(e).

 

(e)      Payment of Fees, Expenses and Indemnities. The Asset Representations Reviewer shall submit reasonably detailed invoices
to the Servicer for any amounts owed to it under this Agreement. To the extent not paid by the Servicer within sixty (60) calendar
days following the receipt of a detailed invoice on the due date therefor hereunder, the fees provided for in this Section 4.3
and the indemnities provided for in Section 4.6(a) shall be paid by the Issuer pursuant to the priority of payments set
forth in Section 5.05(b) of the Sale and Servicing Agreement; provided, that prior to any such payment pursuant to the Sale
and Servicing Agreement, the Asset Representations Reviewer shall notify the Servicer in writing that such payments have been outstanding
for at least sixty (60) calendar days. For the avoidance of doubt, to the extent that such owed amounts are not paid in full by
the Servicer or any other party, upon receipt of a detailed invoice, the Asset Representations Reviewer shall be entitled to payment
by the Servicer of incurred but otherwise unpaid amounts.

 

    	 	7	(2019-B Asset Representations Review Agreement)

     

    

 

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, including without limitation such actions that are based upon the exercise of
judgment or discretion. Subject to the foregoing, the Asset Representations Reviewer will be liable for its willful misconduct,
bad faith, breach of this Agreement 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 Servicer, the Depositor, the Seller, the Sponsor, the Owner Trustee and the Indenture Trustee and their respective
directors, officers, employees and agents for all costs, expenses, losses, damages and liabilities (including any reasonable legal
fees and expenses incurred by an Indemnified Party in connection with the enforcement of any indemnification or other obligation
of the Asset Representations Reviewer) resulting from (a) the willful misconduct, bad faith or negligence of the Asset Representations
Reviewer in performing its obligations under this Agreement, (b) the Asset Representations Reviewer’s failure to comply with
the requirements of applicable federal, state or local laws and regulations in the performance of its duties hereunder or (c) the
Asset Representations Reviewer’s breach of any of its representations, warranties, covenants or other obligations 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 permitted resignation or removal of the Asset Representations Reviewer.

 

Section 4.6.         
Indemnification of Asset Representations Reviewer.

 

(a)      Indemnification. The Servicer will indemnify the Asset Representations Reviewer and its officers, directors, employees
and agents (each, an “Indemnified Person”), for all costs, expenses, losses, damages and liabilities resulting
from the performance of its obligations under this Agreement (including the costs and expenses of defending itself against any
loss, damage or liability), but excluding any cost, expense, loss, damage or liability resulting from (i) the Asset Representations
Reviewer’s willful misconduct, bad faith or negligence, (ii) the Asset Representations Reviewer’s failure to comply
with the requirements of applicable federal, state and local laws and regulations in the performance of its duties hereunder or
(iii) the Asset Representations Reviewer’s breach of any of its representations, warranties, covenants or other obligations
in this Agreement.

 

    	 	8	(2019-B Asset Representations Review 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 Servicer of the Proceeding. The Servicer may participate
in and assume the defense and settlement of a Proceeding at its expense. If the Servicer notifies the Indemnified Person of its
intention to assume the defense of the Proceeding with counsel reasonably satisfactory to the Indemnified Person, the Servicer
will not be liable for legal expenses of counsel to the Indemnified Person unless there is a conflict between the interests of
the Servicer, and an Indemnified Person. If there is a conflict, the Servicer 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 Servicer and
the Indemnified Person, which approval will not be unreasonably withheld.

 

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

 

(d)      Repayment.
If the Servicer 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 Servicer.

 

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 or the Servicer, 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) any
claim made by the Asset Representations Reviewer under this Agreement. In addition, the Asset Representations Reviewer will permit
the Issuer’s or the Servicer’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 and the Servicer 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 or the Servicer reasonably determines that it is required to make the disclosure under this Agreement or the other
Basic 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 parties to this Agreement.

  

    	 	9	(2019-B Asset Representations Review Agreement)

     

    

 

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 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 Asset Representations Reviews of Subject 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 the Sponsor 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, including:

 

(i)          lists
of Subject 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 use best efforts 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
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.

  

    	 	10	(2019-B Asset Representations Review Agreement)

     

    

 

(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, 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 entitled to reimbursement
of costs and expenses, including reasonable attorney’s fees, incurred by it 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),
vehicle identification number or “VIN”, 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. 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 laws and regulations 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	(2019-B Asset Representations Review Agreement)

     

    

 

(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 an Asset Representations 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 Asset Representations 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 from time to time 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(g) with the inspections described in Section 4.7. The Asset Representations
Reviewer will also permit the Issuer and its authorized representatives 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 an Asset Representations Review, and if such Affiliate or third party is identified to the Asset Representations
Reviewer, such Affiliate or third party is an 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 will be entitled to enforce the PII related
terms of this Section 4.10 against the Asset Representations Reviewer as if each were a signatory to this Agreement.

  

    	 	12	(2019-B Asset Representations Review Agreement)

     

    

 

ARTICLE
V

RESIGNATION AND REMOVAL;

SUCCESSOR ASSET REPRESENTATIONS REVIEWER

 

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 of Asset Representations Reviewer. The Asset Representations Reviewer will not resign as Asset Representations
Reviewer unless the Asset Representations Reviewer no longer meets the eligibility requirements in Section 5.1. The Asset
Representations Reviewer will notify the Issuer and the Servicer of its resignation as soon as practicable after it determines
it is required to resign and stating the resignation date and including an Opinion of Counsel supporting its determination.

 

(b)      Removal
of Asset Representations Reviewer. If any of the following events occur, the Issuer, by notice to the Asset Representations
Reviewer, may, and in the case of clause (i) below, shall, 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 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).

  

    	 	13	(2019-B Asset Representations Review Agreement)

     

    

 

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 appoint 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
entered 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 (including the fees and expenses of counsel) of transitioning
the Asset Representations Reviewer’s obligations under this Agreement and preparing the successor Asset Representations Reviewer
to take on such 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, the Indenture Trustee or the Owner Trustee for the manner in which it
accomplishes the performance of its obligations under this Agreement. Nothing in this Agreement will make the Asset Representations
Reviewer and the Issuer members of any partnership, joint venture or other separate entity or impose any liability as such on any
of them.

 

Section 6.2.         No
Petition. Each of the parties, by entering into this Agreement, 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 (including, without limitation, the Issuer) 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.

 

    	 	14	(2019-B Asset Representations Review Agreement)

     

    

 

Section 6.3.          Limitation
of Liability of Owner Trustee. Notwithstanding anything contained herein to the contrary, (a) this instrument is executed
and delivered by U.S. Bank Trust National Association, not individually or personally but solely as Owner Trustee of Hyundai Auto
Receivables Trust 2019-B, in the exercise of the powers and authority conferred and vested in it, (b) each of the representations,
undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings
and agreements by U.S. Bank Trust National Association but is made and intended for the purpose for binding only the Issuer, (c)
nothing herein contained shall be construed as creating any liability on U.S. Bank Trust National Association individually or
personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly
waived by the parties hereto and by any Person claiming by, through or under the parties hereto, (d) U.S. Bank Trust National
Association has made no investigation as to the accuracy or completeness of any representations or warranties made by the Issuer
in this instrument and (e) under no circumstances shall U.S. Bank Trust National Association be personally liable for the payment
of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty
or covenant made or undertaken by the Issuer under this instrument or any other related documents. In no event will U.S. Bank
Trust National Association 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 4.5 or as otherwise stated in
this Agreement, 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)      This
Agreement may be amended by the parties hereto, but without the consent of the Depositor, the Indenture Trustee, the Owner Trustee,
any of the Noteholders or the Certificateholders, to cure any ambiguity, to correct or supplement any provisions in this Agreement,
or for the purpose of correcting any inconsistency with the Prospectus or for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions in this Agreement or of modifying in any manner the rights of the Noteholders
or the Certificateholders, subject to one of the following conditions:

 

(i)      the
Servicer delivers an Opinion of Counsel or an Officer’s Certificate to the Indenture Trustee to the effect that such amendment
will not materially and adversely affect the interests of the Noteholders (and, if the Certificates are then held by anyone other
than the Depositor or a U.S. Affiliate of the Depositor, the Certificateholders); or

 

(ii)     the Rating Agency Condition is satisfied (other than with respect to S&P, but with satisfaction of the Rating Agency
Notification with respect to S&P if S&P is rating any Outstanding Class of Notes) with respect to such action.

  

    	 	15	(2019-B Asset Representations Review Agreement)

     

    

 

(b)     With respect to any amendment for which clauses (a)(i) or (a)(ii) above cannot be satisfied, this Agreement can be amended
with the consent of the Noteholders holding not less than a majority of the Outstanding Amount of the Controlling Class of Notes.
It shall not be necessary for the consent of Noteholders pursuant to this Section to approve the particular form of any proposed
amendment, but it shall be sufficient if such approval shall be with respect to the substance thereof.

 

(c)      Promptly
after the execution of any amendment, the Administrator shall furnish written notification of the substance of such amendment
to each Noteholder and each Rating Agency.

 

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 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 Indenture Trustee, for the benefit of the Noteholders, will be a third-party beneficiary
of this Agreement and entitled to enforce this Agreement against the Asset Representations Reviewer. No other Person will have
any right or obligation under this Agreement.

 

Section 7.3.          Notices.

 

(a)      Delivery
of Notices. 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 a letter mailed by 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 (without the requirement
of confirmation of receipt) of an email to that recipient stating that the electronic posting has occurred.

 

    	 	16	(2019-B Asset Representations Review Agreement)

     

    

 

(b)      Notice
Addresses. Any notice, request, demand, consent, waiver or other communication will be delivered or addressed to: (i) (a)
in the case of the Servicer, to Hyundai Capital America, 3161 Michelson Drive, Suite 1900, Irvine, California 92612, Attention:
Treasurer, (b) in the case of the Issuer, to Hyundai Auto Receivables Trust 2019-B, c/o Hyundai Capital America, 3161 Michelson
Drive, Suite 1900, Irvine, California 92612, Attention: Treasurer, (d) in the case of the Indenture Trustee, to Citibank, N.A.,
388 Greenwich Street, New York, New York, 10013, Attention: Agency & Trust – HART 2019-B, and (e) in the case of the
Asset Representations Reviewer, to Clayton Fixed Income Services LLC, 2638 South Falkenburg Road, Riverview, FL 33578, Email:
ARRNotices@clayton.com; with a copy to Clayton Fixed Income Services LLC, c/o Clayton Holdings LLC, 1500 Market Street, West Tower
Suite 2050, Philadelphia, PA 19102 or, (ii) as to each party, at such other address or email as shall be designated by such party
in a written notice to each other party.

 

Section 7.4.         
Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

EACH OF THE PARTIES HERETO HEREBY SUBMITS
TO THE EXCLUSIVE 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 CITY FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. EACH OF THE PARTIES HERETO HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK JURISDICTION
OVER SUCH PARTY, AND AGREES NOT TO PLEAD OR CLAIM, IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT IN ANY OF THE
AFORESAID COURTS, THAT ANY SUCH COURT LACKS JURISDICTION OVER SUCH PARTY. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING
BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.

 

Section 7.5.          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.

 

    	 	17	(2019-B Asset Representations Review Agreement)

     

    

  

Section 7.6.         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 7.7.        Headings.
The headings in this Agreement are included for convenience and will not affect the meaning or interpretation of this Agreement.

 

Section 7.8.        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] 

 

    	 	18	(2019-B Asset Representations Review Agreement)

     

    

 

EXECUTED BY:

 

	 	HYUNDAI AUTO RECEIVABLES TRUST 2019-B,
	 	 	as Issuer
	 	 	 
	 	By:	U.S. Bank Trust National Association, not in its individual capacity, but solely as Owner Trustee
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	 
	 	HYUNDAI CAPITAL AMERICA,
	 	 	as Servicer
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name: Keun Bae Hong
	 	 	Title: Chief Financial Officer
	 	 	 
	 	 	 
	 	CLAYTON FIXED INCOME SERVICES LLC,
	 	 	as Asset Representations Reviewer
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

  

    	 	S-1	(2019-B Asset Representations Review Agreement)

     

    

 

Schedule A

 

Representations and Warranties, Review Materials
and Tests

 

Review Materials

 

		·	Retail Installment Contract

		·	Any assignment if not included in Contract

		·	Documents which evidence the security interest in the Financed Vehicle (Certificate of Title, E-Title, Application for Title,
etc) (the “Title Documents’)

		·	List of Approved Contracts form numbers and revision dates

		·	Servicing System screen prints or data fields within the Data Tape (As of the Cutoff Date) showing (the “Cutoff Date
Data File”)

		o	Receivable Active/Satisfied

		o	Scheduled Monthly Payment amount

		o	Annual Percentage Rate

		o	Original Balance

		o	Unpaid Balance

		o	Maturity Date

		o	Days Delinquent

		o	Bankruptcy Flag

		o	Litigation/Attorney Involvement Flag

		o	Vehicle Repossessed Flag

		o	Days Delinquent

 

    	 	A-1	(2019-B Asset Representations Review Agreement)

     

    

 

		·	Applicable Dealer Agreement

		·	List of Seller Affiliates

		·	Schedule of Receivables to Receivables Purchase Agreement and Sale and Servicing Agreement

		·	Receivable File

 

	 	Representation 	Method of Testing
	(i)(a)	
        (i)       Characteristics
        of Receivables. Each Receivable:

         

        (a)       was
        originated by a Dealer located in the United States of America for the retail sale of a Financed Vehicle, is payable in United
        States dollars, has been signed or electronically authenticated by the Obligor and the Dealer thereto, has been purchased by the
        Seller from such Dealer under an existing Dealer Agreement and has been validly assigned by such Dealer to the Seller,

         

         

         
	
        1.    
        Confirm that Dealer’s location, indicated in the Receivable File, is in United States.

         

        2.    
        Confirm that the Receivable is payable in US Dollars.

         

        3.    
        Confirm that the Receivable has been signed by the Obligor and the Dealer.

         

        4.    
        Confirm that there is a Dealer Agreement between the applicable Dealer and the Seller.

         

        5.    
        Confirm the assignment section of the Receivable is signed by the Dealer and the Seller is listed as the assignee.

         

 

    	 	A-2	(2019-B Asset Representations Review Agreement)

     

    

 

	 	Representation 	Method of Testing
	(i)(b)	
        (b)       has
        created or shall create a first priority security interest in favor of the Seller in the Financed Vehicle, which security interest
        has been assigned by the Seller to the Depositor and by the Depositor to the Issuer,

         

         

         
	
        1.    
        Confirm that the Receivable contains security interest language in favor of the Seller in the Financed Vehicle.

         

        2.    
        Confirm that a Certificate of Title or other suitable documentation lists Seller as lienholder or that an application for
        a Certificate of Title or other suitable documentation has been filed in the applicable state listing the Seller as lienholder.

         

        3.    
        Confirm that the Receivable is listed on Schedules of Receivables to the Receivables Purchase Agreement and the Sale and
        Servicing Agreement.

         

	(i)(c)	(c)       contains provisions that permit the repossession and sale of the Financed Vehicle upon a default under the Receivable by the Obligor,	1.     
        Review the Receivable to confirm that its terms permit repossession and sale of the Financed Vehicle upon default by Obligor.
	(i)(d)	(d)       provides for fixed level monthly payments (provided that the first and last payments may be different from but in no event more than three times the level payments) that fully amortize the Amount Financed over the original term,	
        1.     
         Review the Receivable in order to confirm
        all payments are fixed monthly payments, with the possible exception of the first and last payments, which may be three times the
        level payment.

         

        2.    
         Using the Truth in Lending section of the
        Receivable, confirm that payment schedule fully amortizes the Amount Financed over the original term at the applicable APR.

         

	(i)(e)	
        (e)       amortizes
        using the simple interest method,

         

         

         
	1.    
        Confirm the Receivable employs a simple interest method of amortization.
	(i)(f)	(f)       has an Obligor which is not an affiliate of the Seller,	1.    
        Confirm that the Obligor’s name does not appear on a list provided by the Seller of the Seller’s affiliates.

 

    	 	A-3	(2019-B Asset Representations Review Agreement)

     

    

 

	 	Representation 	Method of Testing
	(i)(g)	(g)       has an Obligor which is not listed on Seller’s electronic records related to receivables as a government or governmental subdivision or agency, and	1.       Confirm the Cutoff Date Data File does not indicate the Obligor was a government entity.
	(i)(h)	(h)       has an Obligor which is not shown on the Servicer’s electronic records related to receivables as a debtor in pending bankruptcy proceeding,	1.       Confirm the Cutoff Date Data File does not indicate the Obligor was in bankruptcy.
	(ii)	(ii)       Compliance with Law.  Each Receivable complied at the time it was originated or made in all material respects with all requirements of law in effect at that time and applicable to such Receivable.

                                                                                 
	1.       Confirm that the contract form number and revision date are on a list of approved contract forms provided by the Seller.
	(iii)	(iii)       Binding Obligation.  Each Receivable represents the legal 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, consumer protection laws and the Servicemembers Civil Relief Act.

                                                                                 
	
        1.       Confirm that the contract form number and
        revision date are on a list of approved contract forms provided by the Seller.

         

        2.       Confirm that the buyer and co-buyer, if
        applicable, have signed the Contract.

         

	(iv)	(iv)       Chattel Paper.  Each Receivable constitutes either “tangible chattel paper” or “electronic chattel paper” within the meaning of the UCC as in effect in the state of origination.	
        1.       Confirm that the contract form number and
        revision date are on a list of approved contract forms provided by the Seller.

         

        2.       Confirm that there is a signature under
        the appropriate buyer, co-buyer, if applicable, and Seller signature lines within the contract.

         

        3.       Confirm the Receivable contains security
        interest language in favor of the Seller in the Financed Vehicle?

         

 

    	 	A-4	(2019-B Asset Representations Review Agreement)

     

    

 

	 	Representation 	Method of Testing
	(v)	(v)       One Original.  There is only one executed original, electronically authenticated original or authoritative copy of the “contract” (within the meaning of the UCC) related to each Receivable.

                                                                                 
	1.       Confirm the Contract was signed by the buyer and co-buyer, if applicable.
	(vi)	(vi)       Receivables in Force.  As of the Cutoff Date, the Servicer’s electronic records related to receivables do not indicate that any Receivable was satisfied, subordinated or rescinded, or that any Financed Vehicle was released from the Lien of the related Receivable.  As of the Cutoff Date, none of the material terms of any Receivable has been expressly waived, altered or modified in any material respect since its origination, except by instruments or documents identified in the Seller’s receivable system.	
        1.       Review the Cutoff Data File and
        confirm there is no evidence that the Receivable was satisfied, subordinated or rescinded or that the Financed Vehicle was released
        from the lien prior to the Cutoff Date.

         

        2.       Review Receivable File and the records in Seller’s
        receivable system for evidence of express waivers prior to the Cutoff Date that were neither identified in the Receivable File
        nor identified in the receivable system as of that date.

         

	(vii)	(vii)       Lawful Assignment.  The terms of the Receivable do not prohibit the sale, transfer and assignment of such Receivable under this Agreement, the Sale and Servicing Agreement or the pledge of such Receivable under the Indenture.	
        1.       Confirm that the contract form number and
        revision date are on a list of approved contract forms provided by the Seller.

         

         

         

	(viii)	(viii)       Title.  Immediately prior to the transfers and assignments herein contemplated, the Seller has good and marketable title to each Receivable free and clear of all Liens (except Permitted Liens and any Lien that will be released prior to the assignment of such Receivable hereunder), and, immediately upon the transfer thereof, the Depositor shall have good and marketable title to each Receivable, free and clear of all Liens except Permitted Liens.	
        1.       Confirm there is an assignment of the Receivable
        from the Dealer to the Seller.

         

        2.       Review the Title Documents and confirm
        that the Seller is listed as a first priority lien holder for the Financed Vehicle.

         

        3.       Confirm there is one original authenticated
        copy of the Receivable

         

 

    	 	A-5	(2019-B Asset Representations Review Agreement)

     

    

 

	 	Representation 	Method of Testing
	(ix)	(ix)       No Defenses.  The Servicer’s electronic records related to receivables do not reflect any right of rescission, setoff, counterclaim or defense asserted or threatened by any Obligor for any Receivable indicated in the Seller’s receivable system.	1.       Confirm the Cutoff Date Data File does not contain any indication of any right of rescission, counterclaim or defense asserted or threatened by any Obligor as of the Cutoff Date.
	(x)	(x)       No Default.  As of the Cutoff Date, the Servicer’s receivable system did not disclose that there was any payment default under the terms of any Receivable (other than payment delinquencies of not more than 30 days).	1.       Review the records in Seller’s receivable system to confirm that Receivable was not more than 30 days past due as of Cutoff Date.
	(xi)	(xi)      Insurance.  Under the terms of each Receivable, the Obligor is required to maintain physical damage insurance covering the related Financed Vehicle.	1.       Confirm the Receivable contains language that requires the Obligor to obtain and maintain insurance against physical damage to the Financed Vehicle.
	(xii)(a)	
        (xii)     Individual
        Characteristics. Each Receivable has the following individual characteristics as of the Cutoff Date:

         

        (a)       each
        Receivable had an original maturity of not less than 24 months or more than 75 months,

         
	1.       Review the Receivable, as amended by documents in the Receivable File and notations in the records in Seller’s receivable system, had an original maturity date within the allowable limits as of the Cutoff Date.
	(xii)(b)	(b)       no Receivable was more than 30 days past due as of the Cutoff Date,	1.       Review the records in Seller’s receivable system to confirm the Receivable was not more than the maximum allowable days past due as of the Cutoff Date.
	(xii)(c)	(c)       no Receivable has a final scheduled payment date after November 24, 2025,	1.       Confirm that the final scheduled payment date specified in the Receivable, as amended by documents in the Receivable File and notations in the records in Seller’s receivable system, was not later than latest allowable final scheduled payment date as of the Cutoff Date.

 

    	 	A-6	(2019-B Asset Representations Review Agreement)

     

    

 

	 	Representation 	Method of Testing
	(xii)(d)	(d)       no Receivable has a Contract Rate of less than 0.00%,	1.       Review the records in Seller’s receivable system to confirm the Receivable did not have a Contract Rate less than the minimum allowable percentage rate as of the Cutoff Date.
	(xii)(e)	(e)       each Receivable has a remaining term of at least 5 months and no more than 72 months,	1.       Review the records in Seller’s receivable system to confirm the Receivable had a remaining term within the allowable limits as of the Cutoff Date.
	(xii)(f)	(f)       each Receivable has a remaining balance of at least $5,000.00 and not greater than $70,000.00, and	1.       Review the records in Seller’s receivable system to confirm the Receivable had a remaining balance within the allowable limits as of the Cutoff date.
	(xii)(g)	(g)       each Receivable is secured by a new or used automobile, light-duty truck or minivan.	1.       Confirm that the Receivable’s terms indicate the Receivable is secured by a new or used automobile, light-duty truck or minivan.

 

    	 	A-7	(2019-B Asset Representations Review Agreement)Exhibit

Exhibit 10.3
L3HARRIS TECHNOLOGIES, INC.
PERFORMANCE UNIT AWARD AGREEMENT
TERMS AND CONDITIONS
(August 1, 2019 CEO-COO Award)

1.    Performance Unit Award – Terms and Conditions.  Under and subject to the provisions of the Harris Corporation 2015 Equity Incentive Plan (as may be amended from time to time, the “Plan”) and upon the terms and conditions set forth herein (these “Terms and Conditions”), L3Harris Technologies, Inc. (the “Corporation” which was formerly named “Harris Corporation”) has granted to the employee receiving these Terms and Conditions (the “Employee”) a Performance Unit Award (the “Award”) of such number of performance units as set forth in the Award Notice (as defined below) from the Corporation to the Employee (such units, as may be adjusted in accordance with Sections 1(c), 1(d) and 5 of these Terms and Conditions, the “Performance Units”).  At all times, each Performance Unit shall be equal in value to one share of common stock, $1.00 par value per share (the “Common Stock”), of the Corporation (a “Share”).  Such Award is subject to the following Terms and Conditions (these Terms and Conditions, together with the Corporation’s letter or notice to the Employee specifying the number of Performance Units subject to the Award, the form of payment of the Award and certain other terms (the “Award Notice”) and the Statement of Performance Goals (as defined below) related thereto, are referred to as the “Agreement”).
(a)    Service Period and Performance Period.  For purposes of the Agreement, the “Service Period” shall be the period from the grant date of the Award through June 29, 2022, and the “Performance Period” shall be the period from June 29, 2019 through December 31, 2021.
(b)    Payout of Award.  Provided the Award has not previously been forfeited, as soon as administratively practicable following the expiration of the Service Period, but in no event later than the 15th day of the third month following the expiration of the Service Period, (i) if the Award Notice specifies that the Performance Units are to be paid in Shares, the Corporation shall issue to the Employee in a single payment the number of Shares underlying the Performance Units to which the Employee is entitled pursuant hereto; or (ii) if the Award Notice specifies that the Performance Units are to be paid in cash, the Corporation shall pay to the Employee a single lump sum cash payment equal to the Fair Market Value (as of the date of the expiration of the Service Period) of the number of Shares underlying the Performance Units to which the Employee is entitled pursuant hereto; in each case, subject to applicable withholdings and satisfaction thereof (including retaining Shares otherwise issuable or cash otherwise to be delivered) as provided in Section 13.2 of the Plan.  If the Award is to be paid in Shares, upon payout the Corporation shall at its option, cause such Shares as to which the Employee is entitled pursuant hereto:  (i) to be released without restriction on transfer by delivery to the custody of the Employee of a stock certificate in the name of the Employee or his or her designee or (ii) to be credited without restriction on transfer to a book-entry account for the benefit of the Employee or his or her designee maintained by the Corporation’s stock transfer agent or its designee.
(c)    Satisfaction of Performance Objectives.  The payout of the Award shall be contingent upon the attainment during the Performance Period of the performance objectives set forth in the Statement of Performance Goals (however designated) delivered or made available to the Employee at the time of the Award (the “Statement of Performance Goals”).  Subject to the application of Section 5, the payout of the Award shall be determined upon the expiration of the Performance Period in accordance with the Statement of Performance Goals.  The final determination of the payout of the Award will be authorized by the Board, the Board Committee, or its designee.  Performance Units will be forfeited (A) if they are not earned at the end of the Performance Period or (B) except as otherwise provided herein, if the Employee ceases to be employed by the Corporation at any time prior to the expiration of the Service Period.
(d)    Rights During Service Period; Dividend Equivalents.  
(i)    During the Service Period, the Employee shall not have any rights as a shareholder with respect to the Shares underlying the Performance Units.  
(ii)    During the Service Period, if the Corporation pays dividends or makes other distributions on the Common Stock, the Employee shall be entitled to receive from the Corporation at the time of payout in respect of the Award dividend equivalents for such dividends or other distributions, either in cash, in the case of a cash dividend or cash distribution, or other property, in the case of a non-cash dividend or non-cash distribution, as applicable, in respect of the number of Shares underlying the Performance Units to which the Employee is entitled, in each case, subject to applicable withholdings and satisfaction thereof (including retaining Shares otherwise issuable or cash otherwise to be delivered) as provided in Section 13.2 of the Plan.  No such dividend equivalents will be paid in respect of Performance Units that are forfeited or cancelled.  No interest shall be paid on any such dividend equivalents. 
(iii)    If the number of outstanding shares of Common Stock is changed as a result of a stock dividend, stock split or the like, without additional consideration to the Corporation, the Performance Units subject to the Award shall be adjusted to correspond to the change in the Corporation’s outstanding shares of Common Stock.  If the Award Notice specifies that the Performance Units are to be paid in Shares, upon the expiration of the Service Period and payout of the Award, the Employee may exercise voting rights and shall be entitled to receive dividends and other distributions with respect to the number of Shares to which the Employee is entitled pursuant hereto.
2.    Forfeiture for Termination of Employment; Exceptions.  Except in connection with a Change in Control covered in Section 5 herein or as otherwise provided in the Award Notice, if the Employee ceases to be an employee of the Corporation prior to the expiration of the Service Period: 
(a)    for any reason other than those described in Section 2(b) or (c) below, all Performance Units subject to the Award shall be immediately and automatically forfeited upon such termination of employment; 
(b)    due to (i) death or (ii) permanent disability (as determined by the Corporation) in each case, prior to a Change in Control covered in Section 5 herein, the Employee’s heirs or beneficiaries or the Employee, as applicable, shall be fully vested in, and entitled to receive a payout in respect of, the number of Shares underlying the Performance Units subject to the Award at the target level of performance, as set forth in the Award Notice and/or Statement of Performance Goals (such number, the “Target Number” and such target level, the “Target Performance Level”).  The Service Period shall immediately expire upon the Employee so ceasing to be an employee of the Corporation with respect to such Target Number of Performance Units vested pursuant to the provisions of this Section 2(b), and the payout in respect of such Performance Units shall be made in the form specified in Section 1(b) as soon as administratively practicable (A) in the case of death, following such immediate expiration of the Service Period, but in no event later than sixty (60) days following such immediate expiration of the Service Period, and (B) in the case of permanent disability, following the earlier of (1) expiration of the original Service Period as though no termination of employment had occurred and (2) the occurrence of a Change in Control that qualifies as a “change in control event” within the meaning of Treasury Regulation Section 1.409A‐3(i)(5), but in no event later than sixty (60) days following such event in the foregoing clauses (1) or (2); or 
(c)    due to (i) involuntary termination by the Corporation other than for Cause (as defined below) or (ii) voluntary termination by the Employee for Good Reason (as defined below), in each case, prior to a Change in Control covered in Section 5 herein, the Employee shall be eligible to receive a portion of the payout (the “Eligible Vesting Portion”) in respect of the Performance Units which would have been made to the Employee under the Award at the end of the Service Period determined in accordance with the provisions of Section 1(c) hereof, and the remaining portion of the payout and Performance Units subject to the Award shall be immediately and automatically forfeited; provided, however, in the case of a termination described in clause (i) or (ii) of this Section 2(c) on or after June 29, 2021 and through June 29, 2022, the performance objectives set forth in the Statement of Performance Goals shall be conclusively deemed to have been attained for the Performance Period at a minimum of the Target Performance Level under such performance objectives, but may be determined to have been attained at a higher level (for avoidance of doubt, if actual attainment of the performance objectives is less than the Target Performance Level, then the Target Performance Level shall be deemed to apply).  Subject to the proviso in the immediately preceding sentence, the Eligible Vesting Portion shall be determined based on the date of such termination as set forth in the following table:
	
		
	Termination Date
	Eligible Vesting Portion of Performance Units

	Prior to June 29, 2020
	1/3 (one third)

	On or after June 29, 2020, but prior to June 29, 2021
	2/3 (two thirds)

	On or after June 29, 2021 and through June 29, 2022
	100.00%

The Eligible Vesting Portion of the payout in respect of the Performance Units required to be paid under this Section 2(c) shall be paid to the Employee in the form and at the time as specified in Section 1(b).  
(d)    For purposes of the Agreement:
		
	(i)
	“Good Reason” means, without the Employee’s express written consent, the occurrence following June 29, 2019 of an event constituting “Good Reason”, as defined in the Employee’s employment agreement with the Corporation as in effect as of the date of the Agreement (as may be amended from time to time thereafter); and  

		
	(ii)
	“Cause” means, the occurrence following June 29, 2019 of an event constituting “Cause”, as defined in the Employee’s employment agreement with the Corporation as in effect as of the date of the Agreement (as may be amended from time to time thereafter).

(e)    Any payout pursuant to this Section 2 shall be subject to applicable withholdings and satisfaction thereof (including retaining Shares otherwise issuable or cash otherwise to be delivered) as provided in Section 13.2 of the Plan. 
3.    Reserved.
4.    Prohibition Against Transfer.  Until the expiration of the Service Period and payout of the Award, the Award, the Performance Units subject to the Award, any interest in the Shares (in the case of a payout to be made in Shares as specified in the Award Notice) or cash to be paid, as applicable, related thereto, and the rights granted under these Terms and Conditions and the Agreement are not transferable except by will or by the laws of descent and distribution in the event of the Employee’s death.  Without limiting the generality of the foregoing, except as aforesaid, until the expiration of the Service Period and payout of the Award, the Award, the Performance Units subject to the Award, any interest in the Shares (in the case of a payout to be made in Shares as specified in the Award Notice) or cash to be paid, as applicable, related thereto, and the rights granted under these Terms and Conditions and the Agreement may not be sold, exchanged, assigned, transferred, pledged, hypothecated, encumbered or otherwise disposed of, shall not be assignable by operation of law, and shall not be subject to execution, attachment, charge, alienation or similar process.  Any attempt to effect any of the foregoing shall be null and void and without effect.
5.    Change in Control.  Upon a Change in Control of the Corporation following the grant date of the Award but prior to the end of the Performance Period, the performance objectives set forth in the Statement of Performance Goals shall be conclusively deemed to have been attained for the Performance Period upon the occurrence of such Change in Control at the Target Performance Level under such performance objectives, or at such greater level of performance as the Board, the Board Committee or its designee may authorize.  The payout of the Performance Units shall be paid to the Employee in the form and at the time specified in Section 1(b); provided, however, that, following such Change in Control but prior to the end of the Service Period: (i) in the event of the Employee’s death, the Service Period shall immediately expire upon such death, and the payout of the Performance Units shall be vested immediately and shall be paid as soon as administratively practicable following such death, but in no event later than sixty (60) days thereafter; (ii) in the event of involuntary termination of employment of the Employee by the Corporation other than for Cause within twenty-four (24) months following such Change in Control (which includes a termination due to permanent disability (as determined by the Corporation) for this purpose), or voluntary termination of employment by the Employee for Good Reason within twenty-four (24) months following such Change in Control, the payout of the Performance Units shall be vested immediately upon such termination and shall be paid following the end of the original Service Period as though no termination had occurred; provided, further, however, that if such Change in Control qualifies as a “change in control event” within the meaning of Treasury Regulation Section 1.409A‐3(i)(5), the Service Period shall immediately expire upon such termination of employment, and the payout of the Performance Units shall be vested immediately and shall be paid as soon as administratively practicable following such expiration of the Service Period, but in no event later than sixty (60) days thereafter, and (iii) in the event of the Employee’s resignation or termination for Cause, the payout of the Award shall be forfeited.  Any payout pursuant to this Section 5 shall be subject to applicable withholdings and satisfaction thereof (including retaining Shares otherwise issuable or cash otherwise to be delivered) as provided in Section 13.2 of the Plan.
Notwithstanding anything in this Section 5 to the contrary, if the Employee ceases to be an employee of the Corporation prior to such Change in Control due to either (I) involuntary termination of employment of the Employee by the Corporation other than for Cause or (II) voluntary termination of employment by the Employee for Good Reason, and the Employee reasonably demonstrates that such termination other than for Cause or the circumstance(s) constituting Good Reason was in connection with integration planning for such Change in Control, then for all purposes of the Agreement, the date of such Change in Control shall be deemed to be the date immediately prior to the date of such termination of employment. 

6.    Protective Covenants.  In consideration of, among other things, the grant of the Award to the Employee, the Employee acknowledges and agrees, by acceptance of the Award, to the following provisions:  

(a)Non-Solicitation.  During the Protective Covenant Period, the Employee shall not, directly or indirectly, individually or on behalf of any other employer or any other business, person or entity: (i) recruit, induce, Solicit or attempt to recruit, induce or Solicit any Individual Employed by the Corporation to terminate, abandon or otherwise leave or discontinue employment with the Corporation; or (ii) hire or cause or assist any Individual Employed by the Corporation to become employed by or provide services to any other business, person or entity whether as an employee, consultant, contractor or otherwise.  

(b)Customer and Potential Customer Non-Interference.  During the Protective Covenant Period, the Employee shall not, directly or indirectly, individually or (i) on behalf of any other employer or any other business, person or entity, entice, induce, Solicit or attempt or participate in enticing, inducing or Soliciting, any Customer or Potential Customer of the Corporation to cease or reduce or refrain from doing business with the Corporation; or (ii) on behalf of any Competitive Business, entice, induce, Solicit or attempt or participate in enticing, inducing or Soliciting, or accept or attempt or participate in accepting, business from any Customer or Potential Customer of the Covered Unit(s). 

(c)Non-Competition.  During the Protective Covenant Period, the Employee shall not, directly or indirectly, as an employee, independent contractor, consultant, officer, director, principal, lender or investor engage or otherwise participate in any activities with, or provide services to, a Competitive Business, without the prior written consent of the Senior Vice President, Human Resources or other designated executive officer of the Corporation (which consent shall be at such officer’s discretion to give or withhold).  Nothing in this Section 6(c) shall preclude the Employee from owning up to 1% of the equity in any publicly traded company.

(d)No Disparagement or Detrimental Comments.  During the Employee’s employment with the Corporation and thereafter, the Employee shall not, directly or indirectly, make or publish, or cause to be made or published, any statement, observation or opinion, whether verbal or written, that criticizes, disparages, defames or otherwise impugns or reasonably may be interpreted to criticize, disparage, defame or impugn, the character, integrity or reputation of the Corporation or its products, goods, systems or services, or its current or former directors, officers, employees, agents, successors or assigns.  Nothing in this Section 6(d) is intended or should be construed to prevent the Employee from providing truthful testimony or information to any person or entity as required by law or fiduciary duties or as may be necessary in the performance of the Employee’s duties in connection with the Employee’s employment with the Corporation.

(e)Confidentiality.  During the Employee’s employment with the Corporation and thereafter, the Employee shall not use or disclose, except on behalf of the Corporation and pursuant to and in compliance with its direction and policies, any Confidential Information of (i) the Corporation or (ii) any third party received by the Corporation which the Corporation is obligated to keep confidential.  This Section 6(e) will apply in addition to, and not in derogation of, any other confidentiality or non‐disclosure agreement that may exist, now or in the future, between the Employee and the Corporation.

(f)Consideration and Acknowledgment.  The Employee acknowledges and agrees to each of the following: (i) the Employee’s acceptance of the Award and participation in the Plan is voluntary; (ii) the benefits and rights provided by the Agreement and Plan are wholly discretionary and, although provided by the Corporation, do not constitute regular or periodic payments; (iii) the benefits and compensation provided under the Agreement are in addition to the benefits and compensation that otherwise are or would be available to the Employee in connection with the Employee’s employment with the Corporation and the grant of the Award is expressly contingent upon the Employee’s agreement with the Corporation contained in Sections 6 and 7; (iv) the scope and duration of the restrictions in Section 6 are fair and reasonable; (v) if any provisions of Sections 6(a), (b), (c), (d) or (e), or any part thereof, are held to be unenforceable, the court making such determination shall have the power to revise or modify such provision to make it enforceable to the maximum extent permitted by applicable law and, in its revised or modified form, such provision shall then be enforceable, and if the provision is not capable of being modified or revised so that it is enforceable, it shall be excised from these Terms and Conditions without affecting the enforceability of the remaining provisions; and (vi) the time period of the Employee’s obligations under Sections 6(a), (b) and (c) shall be extended by a period equal to the length of any breach of those obligations by the Employee, in addition to any and all other remedies provided by these Terms and Conditions or otherwise available to the Corporation at law or in equity.  The Employee further understands and acknowledges that nothing contained in the Agreement limits the Employee’s ability (1) to report possible violations of law or regulation to, or file a charge or complaint with, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Department of Justice, the Congress, any Inspector General, or any other Federal, state or local governmental agency or commission (“Government Agencies”); (2) to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Corporation; or (3) under applicable United States Federal law to (i) disclose in confidence trade secrets to Federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law or (ii) disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure.

(g)Definitions. For purposes of Section 6 of these Terms and Conditions, the following definitions shall apply:

(1)    “Competitive Business” means any business, person or entity that is engaged, or planning or contemplating to engage within a period of twelve (12) months, in any business activity that is competitive with the business and business activities engaged in by the Covered Unit(s).

(2)    “Confidential Information” means confidential, proprietary or trade secret information, whether or not marked or otherwise designated as confidential, whether in document, electronic or other form, and includes, but is not limited to, information that is not publicly known regarding finances, business and marketing plans, proposals, projections, forecasts, existing and prospective customers, vendor identities, employees and compensation, drawings, manuals, inventions, patent applications, process and fabrication information, research plans and results, computer programs, databases, software flow charts, specifications, technical data, scientific and technical information, test results and market studies.

(3)    “Corporation” means, and shall be deemed to include, the Corporation and any Subsidiary. 

(4)    “Covered Unit(s)” means: (i) during the period of the Employee’s employment with the Corporation, each business unit of the Corporation; and (ii) following the Employment Termination Date, each business unit of the Corporation in or for which the Employee was employed or to which the Employee provided services or about which the Employee obtained or had access to Confidential Information, in each case of this clause (ii) at any time within the twenty-four (24)-month period prior to the Employment Termination Date.  The Employee acknowledges and agrees that if the Employee is or was employed at a segment level, the Employee is providing or has provided services to and for, and has obtained and has or had access to Confidential Information about, each business unit of such segment; and if the Employee is or was employed at the corporate/headquarters level, the Employee is providing or has provided services to and for, and has obtained and has or had access to Confidential Information about, each business unit of the Corporation.

(5)    “Customer” means, with respect to the Corporation or the Covered Unit(s), as the case may be, any business, person or entity who purchased any products, goods, systems or services from the Corporation or such Covered Unit(s) at any time during the preceding twenty-four (24) months (or, if after the Employment Termination Date, the last twenty-four (24) months of the Employee’s employment with the Corporation) and either with whom the Employee dealt in the course of performing the Employee’s job duties for the Corporation or about whom the Employee has or had Confidential Information.

(6)    “Employment Termination Date” means the date of termination of the Employee’s employment with the Corporation, voluntarily or involuntarily, for any reason, with or without Cause or Good Reason.

(7)    “Individual Employed by the Corporation” means any employee of the Corporation with whom the Employee dealt in the course of performing the Employee’s job duties at any time during the preceding twelve (12) months (or, if after the Employment Termination Date, the last twelve (12) months of the Employee’s employment with the Corporation).

(8)    “Potential Customer” means, with respect to the Corporation or the Covered Unit(s), as the case may be, any business, person or entity targeted during the preceding twelve (12) months (or, if after the Employment Termination Date, the last twelve (12) months of the Employee’s employment with the Corporation) as a customer to purchase any products, goods, systems or services from the Corporation or such Covered Unit(s) and (i) with whom the Employee had direct or indirect contact, (ii) for whom the Employee participated in the development or execution of the plan to sell products, goods, systems or services of the  Corporation or such Covered Unit(s), or (iii) about whom the Employee otherwise has or had Confidential Information.

(9)    “Protective Covenant Period” means the period of the Employee’s employment with the Corporation and the twelve (12)-month period following the Employment Termination Date. 

(10)    “Solicit” and “Soliciting” mean any direct or indirect communication of any kind, regardless of who initiates it, that in any way invites, advises, encourages or requests any person to take or refrain from taking any actions; provided, for purposes of Section 6(a), the term “Solicit” excludes the placement of general advertisements inviting applications for employment that are not targeted to employees of the Corporation generally or any specific employees of the Corporation.

7.    Remedies for Breach of Section 6.

(a)    Forfeiture and Clawback.  The Employee agrees, by acceptance of the Award, that if the Employee breaches any provision of Sections 6(a), (b), (c), (d) or (e), in addition to any and all other remedies available to the Corporation, (i) the Award and all Performance Units subject to the Award and any rights with respect to the Award and such Performance Units shall upon written notice (which may be in electronic form) immediately be forfeited and terminate and be cancelled; and (ii) the Corporation shall have the right upon written notice (which may be in electronic form) to reclaim and receive from the Employee all Shares and cash, as applicable, issued or paid to the Employee in respect of the Performance Units, or to the extent the Employee has transferred such Shares, the Fair Market Value thereof (as of the date such Shares were transferred by the Employee) in cash and any such return of Shares or payment of cash by the Employee which requires action on the part of the Employee shall be made within five (5) business days following receipt of written demand therefore.

(b)    Additional Relief.  The Employee agrees, by acceptance of the Award, that: (i) the remedy provided for in Section 7(a) shall not be the exclusive remedy available to the Corporation for a breach of the provisions of Sections 6(a), (b), (c), (d) or (e) and shall not limit the Corporation from seeking damages or injunctive relief; and (ii) the Corporation’s remedies at law may be inadequate to protect the Corporation against any actual or threatened breach of the provisions of Sections 6(a), (b), (c), (d) or (e), and therefore, without prejudice to any other rights and remedies otherwise available to the Corporation at law or in equity (including, but not limited to, the rights under Section 7(a)), in addition to and cumulative with such rights, the Corporation shall be entitled to the granting of injunctive relief in its favor and to specific performance without proof of actual damages and without the requirement of posting of any bond or similar security.

(c)    Forum.  The Employee agrees, by acceptance of the Award, that any judicial action brought with respect to the provisions of Sections 6 or 7 of these Terms and Conditions may be filed in the United States District Court for the Middle District of Florida or in the Circuit Court of Brevard County, Florida and hereby consents to the jurisdiction of such courts and waives any objection he/she may now or hereafter have to such venue.

(d)    Change in Control.  If a Change in Control of the Corporation shall occur following the grant date of the Award and the Employee ceases to be an employee of the Corporation in a circumstance set forth in Section 5 of these Terms and Conditions, the provisions of Sections 6 and 7 shall immediately terminate and be of no further force and effect.

8.    Securities Law Requirements.  If the Award Notice specifies that the Performance Units are to be paid in Shares, the Corporation shall not be required to issue Shares pursuant to the Award, to the extent required, unless and until (a) such Shares have been duly listed upon each stock exchange on which the Corporation’s stock is then registered; and (b) a registration statement under the Securities Act of 1933, as amended, with respect to such Shares is then effective.
9.    Board Committee Administration.  The Board Committee shall have authority, subject to the express provisions of the Plan as in effect from time to time, to construe these Terms and Conditions and the Agreement and the Plan, to establish, amend and rescind rules and regulations relating to the Plan, and to make all other determinations in the judgment of the Board Committee necessary or desirable for the administration of the Plan.  The Board Committee may correct any defect or supply any omission or reconcile any inconsistency in these Terms and Conditions and the Agreement in the manner and to the extent it shall deem expedient to carry the Plan into effect, and it shall be the sole and final judge of such expediency.
10.    Impact of Restatement of Financial Statements upon Awards.  If any of the Corporation’s financial statements are restated, as a result of errors, omissions, or fraud, the Board Committee may (in its sole discretion, but acting in good faith) direct that the Corporation recover all or a portion of any Award or payment made to the Employee with respect to any fiscal year of the Corporation the financial results of which are negatively affected by such restatement.  The amount to be recovered shall be the amount by which the affected Award or payment exceeded the amount that would have been payable had the financial statements been initially filed as restated, or any greater or lesser amount (including, but not limited to, the entire Award) that the Board Committee shall determine.  The Board Committee shall determine whether the Corporation shall effect any such recovery by: (a) seeking repayment from the Employee; (b) reducing the amount that would otherwise be payable to the Employee under any compensatory plan, program or arrangement maintained by the Corporation, a Subsidiary or any of its Affiliates; (c) withholding payment of future increases in compensation (including the payment of any discretionary bonus amount) or grants of compensatory awards that would otherwise have been made in accordance with the Corporation’s otherwise applicable compensation practices; or (d) any combination of the foregoing or otherwise (subject, in each of subclause (b), (c) and (d), to applicable law, including without limitation, Section 409A of the Code, and the terms and conditions of the applicable plan, program or arrangement).  This Section 10 shall be a non-exclusive remedy and nothing in this Section 10 shall preclude the Corporation from pursuing any other applicable remedies available to it, whether in addition to, or in lieu of this Section 10.
11.    Incorporation of Plan Provisions.  These Terms and Conditions and the Agreement are made pursuant to the Plan, the provisions of which are hereby incorporated by reference.  Capitalized terms not otherwise defined herein shall have the meanings set forth for such terms in the Plan.  In the event of a conflict between the terms of these Terms and Conditions and the Agreement and the Plan, the terms of the Plan shall govern.
12.    Compliance with Section 409A of the Code.
(a)    The Agreement and the Plan are intended to be exempt from the provisions of Section 409A of the Code to the maximum extent permitted by applicable law.  To the extent applicable, it is intended that the Agreement and the Plan comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the Employee.  The Agreement and the Plan shall be administered and interpreted in a manner consistent with this intent, and any provision that would cause the Agreement or the Plan to fail to satisfy Section 409A of the Code shall have no force and effect until amended to comply with Section 409A of the Code (which amendment may be retroactive to the extent permitted by Section 409A of the Code and may be made by the Corporation without the consent of the Employee).  A termination of employment shall not be deemed to occur for purposes of any provision of the Agreement providing for the payment of any amounts upon or following termination of employment unless such termination is also a “separation from service” within the meaning of Section 409A of the Code, and for purposes of any such provision in the Agreement, references to a “termination,” “termination of employment,” or like terms shall mean “separation from service.”  Notwithstanding anything in the Agreement to the contrary, if the Award is subject to Section 409A of the Code, and if the Employee is a Specified Employee (within the meaning of the Corporation’s Specified Employee Policy for 409A Arrangements) as of the date the Employee ceases to be an employee of the Corporation, then such payout shall be delayed until and made during the seventh calendar month following the calendar month during which the Employee ceased to be an employee of the Corporation (or, if earlier, the calendar month following the calendar month of the Employee’s death), to the extent required by Section 409A of the Code.  Notwithstanding the foregoing, no particular tax result for the Employee with respect to any income recognized by the Employee in connection with the Agreement is guaranteed, and the Employee solely shall be responsible for any taxes, penalties or interest imposed on the Employee in connection with the Agreement. 
(b)    Reference to Section 409A of the Code will also include any proposed, temporary or final regulations, or any other guidance, promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service. 
13.    Data Privacy; Electronic Delivery.  By acceptance of the Award, the Employee acknowledges and agrees that: (a) data, including the Employee’s personal data, necessary to administer the Agreement may be exchanged among the Corporation and its Subsidiaries and affiliates as necessary, and with any vendor engaged by the Corporation to assist in the administration of equity awards; and (b) unless and until revoked in writing by the Employee, information and materials in connection with the Agreement or any awards under the Plan, including, but not limited to, any prospectuses and plan document, may be provided by means of electronic delivery (including by e-mail, by web site access and/or by facsimile).

14.    Miscellaneous.  These Terms and Conditions and the other portions of the Agreement: (a) shall be binding upon and inure to the benefit of any successor of the Corporation; (b) shall be governed by the laws of the State of Delaware and any applicable laws of the United States; and (c) except as permitted under Sections 3.2, 12 and 13.6 of the Plan and Section 12 of these Terms and Conditions, may not be amended without the written consent of both the Corporation and the Employee.  The Agreement shall not in any way interfere with or limit the right of the Corporation or any Subsidiary to terminate the Employee’s employment or service with the Corporation or any Subsidiary at any time, and no contract or right of employment shall be implied by these Terms and Conditions and the Agreement of which they form a part.  For the purposes of these Terms and Conditions and the Agreement, (i) employment by the Corporation or any Subsidiary or a successor to the Corporation shall be considered employment by the Corporation, and (ii) references to “termination of employment,” “cessation of employment,” “ceases to be employed,” “ceases to be an Employee” or similar phrases shall mean the last day actually worked (as determined by the Corporation), and shall not include any notice period or any period of severance or separation pay or pay continuation (whether required by law or custom or otherwise provided) following the last day actually worked.  If the Award is assumed or a new award is substituted therefor in any corporate reorganization (including, but not limited to, any transaction of the type referred to in Section 424(a) of the Code), employment by such assuming or substituting corporation or by a parent corporation or subsidiary thereof shall be considered for all purposes of the Award to be employment by the Corporation.

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}]]